BusinessWeek MINDANAO CREDIBLE
Volume VII, No. 083
Market Indicators
As of 6:13 pm December 8, 2016 (thursday)
FOREX
PHISIX
US$1 = P49.75
6,866.81
0.16 cents
X
60.67 points
X
Briefly Manifesto of unity
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MinDA eyes electricity market by June 2017 www.businessweekmindanao.com
AS one of the activities identified during the National Business Forum in Makati City on July this year, the Department of Trade and Industry (DTI) region 10 gathered 200 participants to a forum on Small and Medium Enterprises (SME) Development and Disaster Resilience in Mindanao. DTI Undersecretary Zenaida Maglaya in a media interview said that this forum was launched to make sure that SMEs are prepared whenever disaster hits. “We want to be more prepared this time,” she said. She explained that Mindanao specifically region 10 is not exempted from typhoons anymore. Typhoon Sendong and Senyang in the past incurred a lot of losses, a lot of business opportunities lost where MSMEs also got affected.
P15.00
Friday | December 9, 2016
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By ANTONIO L. COLINA IV, MindaNews
HE electricity market in Mindanao that will reportedly address the electricity oversupply in the island grid is expected to be operationalized by June 2017, an official of the Mindanao Development Authority (MinDA) said.
MARAWI City -- Government leaders in the Autonomous Region in Muslim Mindanao (ARMM) signed a manifesto of unity on December 1, signifying their commitment as partners in good governance in the ARMM and heeding the nation’s call for real change. The manifesto was signed by municipal and city mayors, provincial governors, and members of the regional legislative assembly during the two day 3rd ARMM Local Government Summit, which ended on Thursday at the SM Lanang Premier SMXConvention Center in Davao City. The document was handed over to President Rodrigo Duterte after Secretary Mike Sueno of the Department of the Interior and Local Government (DILG) presented highlights of the summit.
Disaster resillient
IN-DEPTH
MinDA deputy executive director Romeo Montenegro told a press conference on
Wednesday that they will engage the distribution utilities and the 33 electric
cooperatives in a series of training and capacity building sessions starting next year to educate them on how the electricity market works. He said the Mindanao grid will follow the rules set for the now defunct Interim Mindanao Electricity Market (IMEM) but with some modifications to efficiently minda/PAGE 11
UNSAFE AT ANY HEIGHT: We hope this contractor or their client has insurance for their workers or the pedestrians or motorists passing by because according to a safety engineer, they are not using any grounding rods to block any induction or accidental closing of the wires that can electrocute the linemen. They are also working during a rain which is always a threat to the workers and the people passing below them. We wonder if the linemen are even aware of this. Photo taken on Dec. 3, 2016 at the intersection of F. Abellanosa & Gen. N. Capistrano streets and C.M. Recto Avenue just before the Licoan flyover around 4;35PM under the pouring rain. (Photo by Mike Baños, NPN)
DENR softens up on coal plant approvals By MYRNA M. VELASCO, Contributor
AFTER giving them some sort of “tough love” by adding layers of approvals on to securing their environmental compliance cer tif icates (ECCs), the Department of Environment and Natural Res ources (DENR) has softened up on coal-fired power projects as manifested in its recently amended memorandum. Instead of requiring coalfired power projects to secure prior clearances from the
Climate Change Commission (CCC) and the Office of Senator Loren Legarda being a condition to their ECC filing, the DENR just now requires them to furnish the specified offices with copies of their ECC applications. In a memorandum-order dated November 16, 2016, the DENR stipulated that its Environmental Management Bureau (EMB) “is advised to furnish the CCC and denr/PAGE 11
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Economy
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Winrock hold TOT Duterte bats for federalism DOST, on food safety awareness for future generation DAVAO City -- President Rodrigo Duterte urged Moro leaders in government to work for peace for the future of their children. Speaking in the 3rd Autonomous Region in Muslim Mindanao Local Government Summit, he offered the federal system as an alternative in taking the right course for the future generation. “By the grace of Allah, you might find a great solution for this land,” Duterte said. Duterte looked at the Moro dissent more as a struggle for nationalism in the same manner as
the Filipinos in the past rebelled against the foreign domination in order to regain their freedom. He said it is time for all sector to unite for peace or else the days of suffering for all will really come. Duterte urged the leaders to craft the law supporting the federal system for three years given a strong presidency. He said he is even willing to step down as president if the parliamentary set up is put in place. Me ant i m e , D ut e r t e s aid t he Maute g roup could have brought their struggle elsewhere since
the Philippine government has nothing to do with it. He said the government under his watch is addressing t he c aus es of d i s s e nt w h i c h w a s left unattended and had greatly fragmented the Philippine society by the foreign dominance. “I do not allow oppression to happen in our countr y and I will never do it,” he pointed out. Duterte said the ISIS whom the Maute group i d e nt i f i e d t h e ms e l ve s w i t h i s a by - pro d u c t of the invasion of the American forces on Iraq,
Libya and its assault on Syria respectively. He d e s c r ib e d t he m as soldiers of Libya and those marginalized by the Americans. “They become radicalized, because the American forces bombed innocent people,” Duterte said. He also said that martial law under his watch is not an option. Duterte underscored that martial law never did any good to the country and its people citing the experience in the past. ( P IA 1 1 - Jo e y S e m G . Dalumpines)
BU T UA N C it y - - T h e Department of Science and Technology (DOST) Caraga, together with the Winrock International - Philippine Cold Chain Project (PCCP) conducted on Thursday the Food Safety Awareness Training of Trainers held at Almont Hotel’s Inland Resort, this city. In her message, DOST Caraga regional director Dominga Mallonga emphasized that food safety is not only the responsibility of one agency, but a shared responsibility of all sectors. She added that through this training, participants are equipped with right knowledge on food safety and will be able to train others in their respective community.
Mallonga also recognized the Winrock International – PCCP thru chief of party Dan Gudahl for its sincere concern for the Caraganons in terms of food safety and for establishing programs that directly address the needs of the vulnerable sectors in the region. “We are very lucky that the Winrock is here working with us for this campaign that will address food safety concerns not only here in Butuan City and Agusan del Norte, but for the whole provinces of Caraga region. Let us all do our share for us to achieve our goal for a healthier Caraganons,” underlined Mallonga. Gu d a h l e nu m e r at e d examples/situations where people missed to observe awareness/PAGE 11
RPN Radyo Ronda Stations Nationwide
CNN Philippines Stations Nationwide CNN Philippines TV-9 Manila CNN Philippines TV-12 Baguio CNN Philippines TV-12 Dagupan CNN Philippines TV-26 Tarlac CNN Philippines TV-10 Iriga CNN Philippines TV-4 Iloilo
CNN Philippines TV-8 Bacolod CNN Philippines TV-9 Cebu CNN Philippines TV-5 Cag. de Oro CNN Philippines TV-5 Zamboanga CNN Philippines TV-7 GenSan CNN Philippines TV-9 Davao
DZBS 1368 Baguio DZRL 639 Batac DZTG 621 Tuguegarao DZKI 1332 Iriga DYKW 936 Binalbagan DYKB 1404 Bacolod DYKC 675 Cebu DXKO 1368 Cagayan de Oro DXKS 1080 Surigao DXKD 1053 Dipolog DXKP 1377 Pagadian DXXX 1008 Zamboanga DXKT 1071 Davao DXDX 693 General Santos
The Bank of the Philippine Islands (BPI) partners with the Department of Trade and Industry (DTI) Camiguin Provincial Office in the training sessions for the Micro, Small and Medium Enterprises (MSMEs) which are part of the expanded program of the BPI Foundation’s “Show Me, Teach Me, MSE – Empowering Entrepreneurs”, especially designed in time for the regional economic integration the ASEAN Economic Community (AEC). (DTI Camiguin)
CAGAYAN DE ORO MAIN BRANCH P & J Lim Bldg., Tiano Brothers Kalambagohan Sts., Tel. # (08822) 727-829 * Telefax # (088) 856-1947 CAMIGUIN BRANCH B. Aranas St., Poblacion, Mambajao, Camiguin Tel. # (088) 387-0491 CORRALES BRANCH Corrales Ave., Cagayan de Oro City DIVISORIA BRANCH Atty. Erasmo B. Damasing Bldg., #61 Don A. Velez St., Cagayan de Oro City Tel. # (088) 857-3631 LAPASAN BRANCH Lapasan Hi-way, Cagayan de Oro City Tel. # (088) 231-6739 CARMEN BRANCH Vamenta Blvd., Cagayan de Oro City Tel. # (088) 231-2011
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Opinion
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Seeking an inclusive solution to the refilling of butane canisters with LPG
Businessweek Mindanao Corporation Publisher DANTE M. SUDARIA President/CEO
ALLAN mario MEDIANTE
Vice President for Corporate Affairs
Joe felicilda
Vice President for Administration
joe palabao
Vice President for Marketing
NELSON CONSTANTINO Editor-in-Chief
Cheng ordoñez
gilbert y. chao
Executive Editor
Motoring Editor JOEL ESCOL
BONG FABE
Feature Editor
Associate Editor
CLIFFORD SANTILLAN Layout Artist
JUN AYENSA
shyne campaner
Regional Editor Caraga
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ATTY. MARIO T. JUNI
Cris diaz mike baños Uriel quilinguing Contributing Editors
Cell No: 09352379999
Juni Law Office Cruz Taal St., CDO Legal Counsel
manila office: Unit 310 Valero Plaza, Valero Street, Salcedo Village, Makati City; lani vallido-Marketing Manager Shiena Shyne Campaner & Wemalyn Garcia Marketing Staff - CDO
The BusinessWeek Mindanao is published by BusinessWeek Mindanao Corporation every Monday to Friday with office address at Tanleh Building, Abellanosa, Cagayan de Oro City. It is registered with the Securities and Exchange Commission under Company Registration No. CS201531633 with BIR Certificate of Registration No. 2RC0000831068, TIN No. 463826-272-000 – VAT. Reg., and with Business Permit No. 201512879. Tel. Nos.: (088)8578447, 74-5380, 0923-432-0687, 0917-7121424 Website: www.businessweekmindanao.com E-mail : businessweekmindanao@gmail.com
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and regulations of the LPG industry which prohibits the refilling of LPG into “single trip and/or tin canisters or cartridges not designed or intended for LPG,” to prove beyond reasonable doubt that they are indeed unsafe to use. There could be more than meets the eye for the latter proposall since fires caused by improperly used LPG stoves are still happening. Perhaps, butane canister fires are more a result of simple carelessness or ignorance of homeowners who have no idea on their proper use and what safeguards to take. Disposable butane canisters are commonly used by lower income households who cannot afford the more expensive LPG gas tanks and refills. A recent survey done by the CPCC at the Cogon Market found that portable butane gas stoves made in China and Korea are readily available from nearby stores for as low as P599. A typical one burner LPG stove with tank and regulator costs from P1, 300-1,500 or up to 60% more. The butane canisters refilled with LPG costs anywhere from P35 to P25 each can likewise be easily purchased from nearby stores in the market. A refilled canister could last a homeowner as long as 3 days. Thus, even if a household uses 10 canisters a month,
this would only cost them P250 compared to the current refill of a typical 11-kg. LPG tank of P400 that would last the same period. The costs of operating butane gas stoves in bigger cities like Cebu are even lower. In a report published in a local tabloid 27 Sept 2016, a homeowners group in Cebu City opposed a proposed ordinance to ban the use of refilled butane canisters which would displace most of their members who could only afford butane canisters. The group told a public he ar i ng how a t y pi c a l household only uses twenty 200-gram canisters in a month priced at P12.50 each which is only 25 percent of the price of a typical 11-kg. LPG tank. (Bunachita, 2016) However, the Cebu City Council Committee on Public Order and Safety cited figures showing at least 44-butane related fires recorded in Cebu City since 2010, with over half happening in 2015 alone. Stakeholders in the Cebu butane refilling industry have been asking government to set standards and regulate it considering it serves low income households. A typical 250-gram canister refilled with LPG retails for as low as P18 compared to P600 or more for the standard 11-kg LPG tank. The Cebu LPG Budget Gas Industry Players Association contends that curtailing
H ammer
and
A nvil
By Mike Baños
refilling operations would only drive the industr y underground leading to the proliferation of sub-standard backyard operations which would mushroom to fill the demand estimated at 150,000 canisters a day. The association claims demand for LPG-refilled canisters in 2015 exceeded 1,000 metric tons a month in Metro Cebu, serving the C-D-E market segments in urban poor areas. It said each household uses at least 200 to 250 grams of LPG a day, or the equivalent of one canister. An estimated 1.2 million people in Cebu would be adversely affected if the refilling of butane canisters with LPG is curtailed. The association’s nine member companies claim they have complied with government regulations and have business permits and Standard Compliance baÑos/PAGE 11
Leni admits: claim on VP post lacks basis
Your biggest bank account Think a minute…Imagine that ever y morning somebody put $86,400 in your bank account. Then, every night whatever you didn’t spend that day was taken out of your account and thrown away. Wouldn’t you take out every cent of your $86,400 and spend it every day? So none of it would be wasted or thrown away. Did you know that you really have a bank account just like that one? It’s called TIME. Every morning our time bank gives you and me 86,400 seconds. Then, every night the time we did not use that day is gone. So we must use it all up or lose the time each day we do not spend well. You use it or lose it. Then what are the best bargains and deals in life which are worth our valuable time? Would you like to know the two best investments of your time that will bring you real success and wealth in your life? The first smart investment of your time is people. Spend your time with your family. At the end of your life, you will never be sorry for the time you spent with your children, your wife or husband, your
In an effort to come up with measures that benefit, rather than penalize citizens for seeking affordable solutions to their daily needs, the Cagayan de Oro City Price Coordinating Council is seeking an inclusive, rather than exclusive solution, to the widespread refilling of empty butane canisters with Liquefied Petroleum Gas (LPG) for household use. CPCC Chair Atty Jose E d g a r d o Uy p r e c i s e l y expressed the sentiment of the council when he said the issue should be resolved by directly addressing the motive why people are doing this rather than merely enforcing the law. T hu s , t h e C P C C i s requesting the Department of Science and Technology Region 10 (DOST-10) office to extend technical assistance to local entrepreneurs who can undertake the fabrication of smaller but sturdier LPG tanks which conform to the Philippine National Standards in the size of the butane canisters that many poorer households have resorted to refilling with LPG since they could not afford the standard 11-kilogram LPG tank. Similarly, the Department of Trade and Industry’s Bureau of Product Standards (BPS) should first conduct standard burst and pressure tests on the LPG refilled canisters before merely enforcing the 2014 Department of Energy (DOE) circular on rules
THINK
A Minute
Jhan Tiafau Hurst brothers and sisters, and your parents. We should also spend our time on the many people all around us each day to help make their lives happier. Spending your time on people gives you wealth and happiness that you can never lose The second, yet by far most important, investment of your time is to spend it with your own Maker. He is the Person Who Himself gives you every second you receive to keep living. You see, God didn’t just make us and then forget us. Quite the opposite! God created you to be His child and friend, so you can enjoy living every day with Him. That’s why God the Son came to show us what He’s like. He wants us to see the good life He hurst/PAGE 11
LIFE’S INSPIRATIONS: “… `I told you that you would die in your sins; if you do not believe that I Am He, you will indeed die in your sins’...” (Jesus Christ, our God and Savior, in John 8:24, the Holy Bible). -ooo AND KNK’S BIBLICAL PROOFS THAT JESUS IS GOD AND SAVIOR: Why is the Anak ng Diyos Kadugo Ni Kristo (AND KNK, or the Children of God Blood Kin of the Christ) Church saying that it is the Church of Jesus in the Philippines? It is because it is the only Church that is not only furiously proclaiming Jesus as God and Savior, but providing Biblical proof as well that Jesus is God and Savior, and training its members to become proclaimers of this proof! -ooo KABAYAN NOLI ASKS: SO, HOW IS THE VICE PRESIDENCY GOING TO BE STOLEN FROM LENI? So, there! At least, one media personality finally found the guts (or, the wisdom, perhaps) to ask Vice President Leni Robredo to explain (as we have raised in this column earlier) her statement, during her press conference after the was ousted from the Duterte Cabinet, that the vice presidency would be stolen from her. Veteran broadcaster and
one-time vice president of the Republic Noli “Kabayan” De Castro was this media personality, and given the contrasting backgrounds of Noli and Leni---Noli is a broadcaster all his life while Leni has been a practicing lawyer since she passed the bar---one would think Leni would be able to handle Noli’s questions like she was picking peanuts. Amazingly, however, after Noli persisted in asking Leni to explain how the vice presidency would be stolen from her, Leni suddenly started groping for words, giving convoluted and winding sentences, and even became hard of hearing, asking Noli to repeat his question. Indeed, Noli had to ask that same question thrice, so Leni could understand what was being asked of her, no matter how simple the questions actually were! -ooo LENI ADMITS: CLAIM ON VP POST BEING STOLEN LACKS BASIS: Yet, by her answers to Noli’s questions, it is clear that when Leni claimed on Monday, December 05, 2016, that the vice presidency would be stolen from her, she was in reality without any solid evidence, and that, in her mind, she was merely suspecting a conspiracy between former Sen. Ferdinand Marcos Jr., who protested against her, and
the Supreme Court justices who compose the Presidential Electoral Tribunal and who will decide the protest. To understand Robredo’s lack of evidence and having nothing but pure speculation a little better, let’s reproduce here what Noli’s question to Leni was, translated in English: “So, what you meant was that, the vice presidency would be stolen from you in connection with the protest of Bongbong against you?” Here are Leni’s answers, and be the judge: “It is a part of the big plan to oust me from (my) position… You know, there are many signs that the camp of Bongbong Marcos is doing everything so that I could be removed from my post… and you know I cannot talk about the (protest) case, but they filed this protest even if they know they had no evidence…” -ooo EACH AND KNK MEMBER IS GROOMED TO PREACH JESUS AS GOD AND SAVIOR: At this point in the history of Christian believers in the Philippines, it would appear that only the AND KNK is bent on making its members---each and everyone of them--to become preachers and proclaimers of the truth that Jesus is God and Savior, and that Jesus is God, the Father, Son, and Holy Spirit.
K akampi
Mo A ng Batas
Atty. Batas Mauricio Consequently, in each and every praise and worship session of the AND KNK every Saturday and Sunday, its members are requited to stand up and discuss the proofs from the Bible that Jesus is “I Am”, our God and Savior. What is more, these members are required to read and meditate on the Bible day and night, and obey the commands written therein all the days of their lives. -ooo PLEASE LISTEN: “Ang Tanging Daan” (The Sole Way): a Bible study and prayer session online could now be heard, 24 HOURS a day, in the Philippines and the world at www.facebook. com/angtangingdaan or www. facebook.com/ANDKNK (and look for “Ang Tanging Daan” broadcasts). Phone: 0922 833 43 96, 0918 574 0193, 0977 805 9058. Email: batasmauricio@ yahoo.com.
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Feature Bukidnon’s Hineleban Foundation inks partnership with Globe
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L
EADING telecommunications company Globe Telecom, together with its thousands of iPhone 7 customers, collaborates with Hineleban Foundation, Inc. in the Rainforestation of Six Mountain Ranges of Mindanao as part of the company’s commitment to sustainable development and good corporate citizenship. At the same time, Globe signed a Memorandum of Agreement (MoA) with Hineleban for a fiveyear Rainforestation Program composed of three key components, namely: reforestation, food security and sustainable livelihood development. The foundation is a nonprofit organization which advocates environmental conservation and livelihood development by preserving and restoring mountain rainforests and watersheds, as well as providing livelihood opportunities for indigenous people in Bukidnon and Lanao del Sur. Customers who received the new iPhone 7 under the Globe MyLifestyle Plan were able participate in various cause-oriented programs including environment protection and conservation through the Globe of Good bundle which allowed the company to make a donation on their behalf to partner groups, one of which is
Story by MARK FRANCISCO Photos by ERCEL MAANDIG
Hinelaban. “We believe everyone should lead a sustainable lifestyle, one which protects and preserves our natural resources so future generations can enjoy our country’s rich heritage,” said Yoly Crisanto, Globe Senior Vice President for Corporate Communications. “Globe has already established a name for its innovations in mobile and connectivity but it is equally important for the company to give back. We have to make our practices sustainable to keep providing top-notch products and services to the customers who trust us. At the same time, we’re inviting them to be part of our efforts.” Bukidnon, known as the “heart of Mindanao,” has some primary forests left but over 44,000 hectares of forest areas are already degraded. To date, Hinelaban operates its rainforestation efforts in three project sites in Bukidnon and two project sites in Lanao del Sur to address the problem. Combined, it covers 1,054 hectares and supports 10 municipalities. Hineleban works on the restoration of the environment and sustainable livelihood for the Lumads and the Bangsamoro through Transformational Business Partnerships. It has also signed a “Sacred Customary Compact” with
the Seven Tribes of Bukidnon, duly recognizing the role of the latter as custodians of the forest. Globe Telecom’s partnership with Hinelaban is part of its Climate Action Program which advocates for the protection and preservation of the natural resources for succeeding generations. Globe protects the environment in all areas of its operation, manages its industrial waste and carbon footprint, develops products and services with minimal environmental impact, and identifies areas of reduction through alternative energy resources. Globe also implements its e-waste recycling program which promotes the proper disposal of mobile phones and other electronic wastes. At the same time, Globe engages everyone to live a sustainable lifestyle - from donating old mobile phones for recycling, joining reforestation activities or simply opting for paperless billing as a collective effort to a significant contribution towards a greener future. For customers who wish to support Globe’s reforestation efforts, they may request tree codes by texting TREE to 21588733. This is an SMSbased donation that automatically reflects in the customers’ postpaid bill at a cost of Php100/ tree.
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CorporateWorld
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Mitsubishi PHL plans to hike car prices in January MITSUBISHI Motors Philippines Corp. (MMPC) said it is looking at raising prices of its vehicles by as much as 5% starting January, as the Philippine peso continued to weaken against the US dollar. In a st ate m e nt , t h e company said it would implement a price hike within the range of 3% to 5% or around P10,000 to P20,000, citing the peso’s weakening in recent months. “ The price hike is attributed to the weakening Philippine peso against the US dollar in recent months. As much as MMPC would like to maintain the prices of its vehicles at their current prices, MMPC is constrained to adjust its prices since the severe Forex (foreign exchange) environment has raised significantly the importation costs of these vehicles,” the company said in a statement. M M P C i mp or t s t h e Mirage, Mirage G4, Montero Sp or t and Strada f rom Thailand. On the other hand, the Pajero, Lancer EX, ASX and FUSO Truck and Bus models are imported from Japan. Froilan G. Dytianquin, MMPC first vice-president for marketing, told reporters in a text message that the company used a foreign exchange rate of P47 to $1 and ¥101. “ The forex we have used is at 47 to US and 101 JPY. We may increase by January 2017,” he said in a text message to reporters. This comes as the Philippine peso hit recordlows against the greenback in recent months. On Nov. 24, the peso breached the P50to-the-dollar territory -- its lowest in a decade -- hitting it in an intraday session before closing at P49.98. The last time the peso touched P50
The 2-day Philippine Health Agenda Caravan kicks-off in Camiguin on November 28 bringing out package of medical services to the poorest of the poor families identified under the National Household Targeting System (NHTS). (PHO Camiguin)
below P600,000; 20% for those selling for P600,000 to P1.1 million; 40% for those with prices ranging from P1.1 million to P2.1 million; and 60% for vehicles selling above P2.1 million. A number of car makers have expressed concern that this move may dampen car sales that otherwise have been growing fast despite worsening traffic. The Finance department expects this tax package to be effective in 2018, assuming it gets passed for legislation. Mitsubishi is the country’s
second largest automaker in terms of sale. As of October, Mitsubishi has 17.18% of market share, following Toyota Motors Philippines Corp., which currently leads the industry at 44.18% of total units sold, monthly data from CAMPI and Truck Manufacturers Association (TMA) showed. Asked if the industry expects higher price rates, a top official from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) did not respond for comment as of press time.
Del Monte says profit more than halved in 2nd quarter
AgriNurture acquires stake in Chinese company for P5.06M
DEL MONTE Pacific Ltd. earned less during the three months to October, as sales in the United States dropped and costs increased for the closure of a plant there. In a periodic report, the company listed both in the Philippines and Singapore reported a net income of $20.2 million for the second quarter of its fiscal year 2017. The amount is less than half the $47.8 million booked a year earlier. Still, the positive quarterly results pushed Del Monte back to profitability year to date with a net income of $11.4 million, offsetting the $8.7-million lost in the first quarter ended July. The f irst-half prof it
to the dollar was on Oct. 23, 2006 when it closed at P50.055. Moreover, the announced hike coincides with a plan to increase the excise taxes imposed on automobiles. Part of a series of tax reform packages under the Duterte administration, t he prop os a l f rom t he Department of Finance includes a restructuring of the current tax rates imposed on aut om o bi l e s , m ore than doubling the existing excise tax from 2% to 5% for automobiles with prices
settled 69% below the $37.1 million realized during the comparable period in fiscal 2016 largely from the $30.4-million one-time gain mainly from the amendment of the retirement plan of DMFI. In the second quarter, the group’s sales declined 5% to $636.2 million on the weak performance of US subsidiary Del Monte Foods, Inc (DMFI), which accounted for 78% of total sales. “Our US business has been impacted by shifting c ons u m e r pre fe re n c e s , spending priorities and our performance in the food service sector,” Del Monte Managing Director
and Group Chief Executive Officer Joselito D. Campos, Jr. noted in a statement. DMFI posted a 9% decline in sales to $493.3 million, reflecting lower inventory builds on packaged vegetable ahead of the holiday season, and plastic fruit cup coming out of back-to-school season and weakness in the canned fruit industry. Del Monte also cited the continued impact of unsuccessful low-margin US Department of Agriculture bids from the second half and the reduced sales in private label and food service business lines, with the latter suffering from the closure of a plant in North Carolina. profit/PAGE 11
LISTED fruits and vegetables firm AgriNurture Inc. has acquired a 70-percent stake in a fruit trading company in China for 700,000 yuan (Php5.06 million) to expand business in the huge market. AgriNurture told the local bourse Zongshan Fucang Trade Co. Ltd. (Fucang) bought on Thursday interest in Guangzhou Joyful Fairy Fruits Ltd. from businessman Liang Shunming. Liang Shunming is the registered owner of 90 percent of the total registered capital of Joyful Fairy Fruits Ltd. In October this year, AgriNurture acquired a 49-percent stake in Fucang for USD 6.3 million. (PNA)
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DOF asks Congress to let sin tax law ‘run its course’
F
INANCE Secretary Carlos Dominguez III has urge d the congressional oversight committe e on the Sin Tax Reform Act to start reviewing the revenue and health impact of the tax rates mandated under this law to determine what measures should be undertaken by the Legislature once the statute matures in 2017. Describing Republic Act No. 10351 or the Sin Tax Reform Act as “a very good law,” Dominguez said it should be fully implemented
and allowed to run its course. RA 10351 mandates that the current two-tiered tax rate merge into a unitary tax rate of PHP30 per cigarette pack for all brands starting Jan. 1, 2017, and the rate indexed to inflation by increasing it to 4 percent annually. “We consider the Sin Tax Law or RA 10351 to be a very good law,” Dominguez said. “Our position,” he said, “is to fully implement the law and let it run its course, including Section 11, which states that ‘starting the third quarter of calendar year 2016,
BTr rejects bids for 4-yr T-bond THE Bureau of the Treasury’s (BTr) auction committee on Tuesday rejected bids for the four-year Treasury bond (T-bond) after banks asked for higher yields. BTr offered the debt paper for P25 billion and tenders totalled to P26.128 billion. Had the auction committee accepted the bids, rates would have risen to over four percent as against the 3.977 percent during the auction last Nov. 22.
N a t i o n a l Tr e a s u r e r Roberto Tan told reporters after the auction that “the market is still quite unsettled because of what is being anticipated from the Fed.” The Federal Reserve’s Federal Open Market Committee (FOMC) will have its policy meeting on Dec. 13-14 and markets have priced in a rate hike after the two-day gathering. Tan said they decided to reject bids because they were rejects/PAGE 11
BPI sees above-industry loan growth on demand AYALA-LED Bank of the Philippine Islands’ (BPI) continues to see its lending business to be among the strongest in the industry, with the bank’s loans growing at a steady pace particularly buoyed by corporate borrowings, according to an official. “We’re growing a little bit above industry level... Overall I think the growth has been particularly on the corporate [side],” BPI Vice-President for Financial Products Roland Gerard R. Veloso, Jr. said in a recent interview. “It’s (growth) been above industry, it’s been across the board. [The loan growth’s] not too quick also. It’s just growing at the right pace,” he added. BPI Executive VicePresident and Chief Financial Officer Joseph Albert L. Gotuaco had previously said that the bank is looking at a “double-digit” growth in both its loans and deposits for the year, noting that there is “nothing in sight to threaten” their outlook, so far. L ast September, BPI secured a $400-million threeyear syndicated term loan facility to fund its expanding loans and investments, to which was oversubscribed
from the initial $250 million after it attracted Asian, European and American lenders. “BPI intends to utilize the facility to fund strong growth in loans and investments,” the bank stated in a disclosure to the local bourse in September. According to latest Bangko Sentral ng Pilipinas’ (BSP) data, BPI placed third in terms of assets among the country’s universal and commercial banks after its total assets amounted to P1.296 trillion as of end-June. The listed bank saw its total loans in the January to September period reach P931.12 billion, higher by 19.4% year-on-year, with a mix of 77% corporate borrowings and 23% in retail loans. BPI’s bottom line during the period logged a 25.6% increase from the previous year to P17.38 billion primarily driven by the bank’s robust corporate business activities in the previous months. Its net assets jumped 12.8% to P1.59 trillion as of end-September. Total deposits by its clients logged a 11.6% growth to P1.32 trillion during the period, with its current account, savings account ratio at 75.2%.
the Committee (referring to the Congressional Oversight Committee) is mandated to review the impact of the tax rates provided under this Act.’” Dominguez said the Department of Finance (DOF) expects “this review to occur” as mandated by law
and for it to “be done well to inform [us] what we should be doing in the future.” Finance Undersecretary Bayani Agabin, meanwhile, clarified that the figures on the unitary sin tax system that is supposed to be adopted beginning next year as mandated by law are still
“very preliminary numbers,” and that the DOF is still conducting a thorough study on the sin tax rates, taking into account the public health impact of the law and the price elasticities of cigarettes. “When this was asked during the hearing (last Monday) of the House
committee on ways and means, I mentioned that the figure is very preliminary and we are still studying the ideal price point considering the price elasticities of the products as well as the intended health effects of the sin tax law,” Agabin said. (PNA)
Del Monte now adopts renewable energy Texts and photos by Ercel Maandig
The Del Monte Philippines Incorporated(DMPI) who manages the world’s largest fully integrated pineapple operations now adopts the waste to energy technology installed by GE Power inside the cannery at Barangay Bugo,here in Cagayan de Oro City,and this is one of their latest projects in the country. GE Power is a world leader in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources. GE transforming the electricity industry with the digital power plant,the world’s largest and most efficient gas turbine,full balance of plant,upgrade and service solutions as well as the dataleveraging software.Their innovative technologies and digital offerings help make power more affordable,reliable,accessible. The Project is in support with the government’s initiatives under the Renewable Energy Act and Clean Air Act. The organic waste from the pineapple sludge at the cannery operations fuels two of GE’s Jenbacher J420 Gas Engines which combined heat and power solution E n a b l e s D e l Mont e t o realize substantial savings in electricity and fuel, lowering productions costs and overall waste and carbon emissions. DMPI’s Manufacturing Director Engr. Allan Salcedo revealed that the Biogas volume extract from the sludge of pineapple generates 30,000 cubic meter daily to produce power for electricity. wastewater is gathered and treated in an anaerobic wastewater treatment plant,
which turns the biowaste into biogas to fuel of GE’s gas engines installed at the cannery’s on site power plant. “A s o u r d e m a n d s for reliable and s ecure el e c t r i c it y c ont i nu e to grow, we considered ways to generate on site power that would fit into the region’s strategy to reduce the carbon footprint in the Philippines while also supporting our growing investment and employment in the country. The disposal and treatment of the wastewater from our pineapple cannery operations has been a challenge for Del Monte,and the anaerobic treatment is an excellent alternative to existing aerobic systems that we can turn our biowaste into biogas to produce the said on site power and heat for the cannery”,said Francisco T. Molas,DMPI’s Group head for Mindanao operation. The combined heat and power plant generates close to 2.8 MW to power the operations of Del Monte cannery and the plant, and it uses the excess heat to power the boiler. These energy solutions
Del Monte’s Top Brass Engr. Allan Salcedo and Arthur Quiblat explains to the member of National and Local media about the latest technology they have from GE.
enable Del monte to realize substantial savings of 25% in current annual electricity needs and 9% of its annual coal requirement to fuel, thereby lowering production costs and overall waste and carbon emissions. The company also has successfully reduced its reliance on the National Grid,thus freeing up power for local communities and contributing more to the development of the local economy. On the other hand,Del Monte initiates Environmental Conservation which some Civil Society Organization lauds such as the Mindanao Media
GE representatives and Media was able to tour at the 23,000 hectares Del Monte Pineapple Plantation at Camp Philips Bukidnon
The members of the National and Local Media with the Representatives from Del Monte Philippines and GE posed at the Del Monte Golf Course at the break of the Tour.
Advocates for Environment Preservation(MMAEP) of Cagayan de Oro City where the company has strongly supported programs that conserve and protect the Environment. the company abides by Environment Policies of the countr y which advocates the development and production of environment friendly products and packages, conservation of resources and minimization of Environmental risks. Environment Management System teams has b e e n or g a n i z e d at t h e plantation and cannery to plan,implement and monitor e nv i ron m e nt pro g r ams and ensure compliance with environmental laws. a wastewater treatment plant at the cannery reduces industrial water BOD to a level far below government standards..And now the waste to Energy Plant that operates in the canner y which was commended also by the Chairman of the Committee on energy in the city council of Cagayan de Oro Teodolfo “Bong” Lao who proposes to the city council to push for an i nc e nt ive s to t ho s e company who adopted the Renewable Energy system such as Del Monte.”This is also a challenge to other big companies and industries to adopt also renewable energy to protect for our Environment. Incentives that Lao’s emphasizes includes a 10 percent discount to their Real Estate Tax(RET) good for 10 years.Lao added that his committee want to have a thorough study and consultation to the said proposal in the committee plenary.
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MinDA... from page 1
address oversupply. He said the IMEM was set up in 2013 to provide a mechanism where energy players can sell off their extra capacities to help other distribution utilities fill in the supply gap. The IMEM was suspended in February 2014 due to “system collapse in Mindanao” and the need to “resolve operational and commercial issues and concerns.” Even after the market is operationalized, Montenegro said the electric cooperatives will continue existing supply contracts with power generators that are locked in for a period of 25 years. He said they will only tap the market in situations where there are lost capacities that are not forecasted. Montenegro added that distribution utilities and power cooperatives should not heavily rely on the electricity market, explaining that the unstable market price may affect them adversely. He said he cannot also ascertain if there would be zero brownout with the electricity market in place because it will depend on the portfolio of power players and their capacities to buy power from the market. He said they will assist electric cooperative sin terms of capacity-building and infrastructure requirements, most especially in Basilan, Sulu, and Tawi-Tawi in the Autonomous Region in Muslim Mindanao (ARMM), so that they will be able to participate in the electricity market. Montenegro also said they are studying whether to give the management rights of the electricity market to privaterun Power Electricity Market Corporation (PEMC) or the Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO). He said the electricity market is a prerequisite to be able to link up Mindanao with Luzon and Visayas grids for the nationwide Wholesale Electricity Supply Market.
DENR... from page 1
the Senate Committee on Environment and Natural Resources of the applications for ECCs of coal-fired power projects.” The requirement had been eased from previous mandate for the coal plant projects “to secure clearance” from the CCC and the office of Legarda, who was then chair of the Senate environment committee. Such directive had prompted coal-fired power developers then to raise complaints against the added maze of red tape they would confront – which essentially can delay projects to the detriment of the country’s quest for immediate power supply stability. T h e D e p a r t m e nt of Energ y (D OE) took up the cudgels of resolving such policy uncertainty by recommending Presidential
issuance of an Executive Order to primarily address project permitting overlaps. As this developed, Legarda said that she “never asked the DENR to require companies putting up coal-fired power plants to obtain a clearance from her office.” Her office noted that the lawmaker was actually “surprised to learn of the memo and called the attention of the DENR leadership regarding the matter during a Senate public hearing.” T h at , it w a s n ote d, engendered DENR to retract said memorandum, while explaining to Legarda that “the original intention only was to ‘render due courtesy’ (to her) and inform her of such applications.” L e g a r d a’s o f f i c e emphasized that “the Senate, as a legislative branch of government is separate from the Executive and does not perform executive functions such as the issuance of clearances.”
Awareness... from page 2
food safety that may cause various diseases. He also stressed that Winrock wanted to improve food safety practices in Caraga region, and conducting the Food Safety Awareness Training of Trainers is just one of their initiatives with DOST. “The Food Safe Caraga C amp ai g n is ai me d to contribute to the PCCP’s overarching goals by implementing an information campaign on food safety, and a training program on meat handling for meat shop operators and workers, meat vendors and the general public,” reiterated Gudahl. Gudahl further challenged all the participants to take said training seriously and share their learnings to other people. Republic Act (RA) No. 10611, also known as the Food Safety Act of 2013 is an act to strengthen the food safety regulatory system in the country to protect consumer health and facilitate market access of local foods and food products. Apart from consumer health protection, implementation of RA 10611 also pushes for better food regulatory system to ensure a high level of food safety, and linked to this, the promotion of fair trade practice and sound regulatory foundation for domestic and international trade. (JPG/PIA-Caraga)
Baños... from page 4
Certificate (SCC) from the DOE as legitimate LPG Tank refillers. Disposable butane canisters, commonly used for outdoor activities and c a mp i n g , a r e s m a l l e r, lightweight and have a thinner metal body than LPG tanks, and are intended for only one use and then disposed. Philippine National Standard (PNS) 03-01:2000 allows only welded steel cylinders with a water capacity of 1 liter to 100 liters for the storage and transport of LPG. The LPG cylinder is one of
the critical products required to undergo the BPS Product Certification Scheme for product safety and reliability. Un d e r t h i s s c h e m e , manufacturers and importers of t he pro duc ts under mandator y certification are required to apply for the Philippine Standard (PS) license and Import Commodity Clearance (ICC) certificate, before their products may be distributed and sold in the market. Only manufacturers and importers whose products have passed the Philippine National Standard (PNS) requirements relevant to their product will be issued a PS license and ICC certificate. BPS requires the manufacturers and importers to place the PS and ICC marks on the products prior to distribution to their retailers for sale.
Hurst... from page 4
designed for us to enjoy. The more time we spend with Jesus, the better we know how to live well and successfully. In fact, Jesus Christ guarantees that if each day you will spend your 86,400 seconds on living for Him and others, then at the end of your life when you’ve run out of seconds, you will be truly wealthy and satisfied with no regrets! Even if you just start right now. So why not ask Jesus to forgive you and to take full charge of the time you still have left? Just Think a Minute…
Profit... from page 8
DMFI managed to expand its market share in two of the four major retail categories despite the industry-wide contraction and benefited from the growth of the branded business with its biggest customer Wal-Mart, among others. Del Monte incurred an additional expense of $1.2 million following the closure of the North Carolina plant. Without the nonrecurring item, the group would have netted $21 million or 33% over last year’s $15.8 million recurring net income. Strong performances from the Philippines under the Del Monte brand and re st of As i a u nd e r t he S&W brand partly offset the weakness of the US operations. D el Monte achie ve d double-digit increases in
sales in the Philippines, the rest of Asia and the Middle E ast during the second quarter. Excluding results f rom DMFI, t he g roup realized $155.1 million or 13% more sales. “The excellent results in the Philippines and the S&W Asian markets, where our teams delivered on both sales expansion and productivity improvement resulting in cost reduction, underscore our strateg y to tap into consumptiondriven growth in Asia which is fueled by an emerging middle class while, at the same time, seeking to create efficiencies throughout our operations,” Mr. Campos said. Year to date, Del Monte booked a 4% decrease in sales to $1.1 billion. Its net income would have m ore t h a n d ou b l e d t o $15.1 million f rom the $6.9-million recurring profit recorded for the same six months of fiscal 2016. “The demand for convenient packaged foods remains strong and our aim is to increase our market s h are by d ou bl i ng ou r efforts on innovation and new product development,” Mr. Campos noted, with the company looking to sustain its profitability toward the end of fiscal 2017. As part of its deleveraging plan, Del Monte intends to issue dollar-denominated perpetual preference shares in the domestic capital market and list them on the Philippine Stock Exchange (PSE) early next year. The company has received approvals from the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas for the issue. It now awaits approva l f rom t he PSE for what could become the country’s first listing of d o l l a r- d e n om i n at e d securities (DDS). T h e P S E o n Fr i d ay released the rules governing the listing, trading and settlement of DDS in their final form, setting the stage for listed companies to raise their dollar needs through the local stock exchange. In a statement issued on Wednesday, PSE President and Chief Executive Officer Hans B. Sicat noted: “We shall be working on preparing the market and infrastructure over the next four to six weeks to ensure the smooth and successful introduction of DDS.” “Being a new product, it
Republic of the Philippines Local Civil Registry Office Province: Misamis Oriental Municipality : NAAWAN NOTICE FOR PUBLICATION In compliance with Section 5 of R..A. No. 9048, a notice is hereby served to the public that Fely D. Omongos-Cabigon has filed with this Office a petition for a Change of First Name from ‘’FELOMINA’’ to ‘’FELY’’ in the birth certificate of FELY D. OMONGOS-CABIGON who was born on August 10, 1959 at Naawan, Misamis Oriental and whose parents are Virgilio L. Omongos and Adelina Dadacay. Any person adversely affected by said petition may file his written opposition with this Office not later than December, 2016. BWM: December 2 & 9, 2016
(Sgd.) MARLON S. DACOCO Municipal Civil Registrar
is important for the PSE that all stakeholders are properly informed of the dynamics of DDS,” Mr. Sicat added. Del Monte has registered with the SEC securities cumulatively worth $360 m i l l i on . T h e c omp a ny intends to issue an initial tranche amounting to $250 million, at maximum, and the balance within three years.
Rejects... from page 9
higher than the previous rate and the s econdar y
market rate for the same te nor i n t he af te r no on trade, which was at 4.1315 percent. “We discussed it quite extensively that it will be better to come up, in the next auction, for a bond issuance when the market has already absorbed and digested the Fed action happening next week,” he said. Tan said bids were higher than the volume offered because there were about P8 billion maturing T-bonds this week.
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