Manila Standard - 2018 August 15 - Wednesday

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IN THIS ISSUE

SPECIAL REPORT ON THE ECONOMY

VOL. XXXII • NO. 181 • 3 SECTIONS 36 PAGES • P18 • WEDNESDAY, AUGUST 15, 2018 • www.manilastandard.net • editorial@manilastandard.net

Rody, GMA try to break impasse

Customs, PDEA clash over shabu

By Maricel V. Cruz

CUSTOMS Commissioner Isidro Lapeña on Tuesday denied a Philippine Drug Enforcement Agency claim that four magnetic lifters found in Cavite contained methamphetamine hydrochloride or shabu, saying they tested negative for the drug.

Testifying before the House committee on dangerous drugs, Lapeña said a team of Next page

Over P3.75-trillion budget for 2019

By Maricel V. Cruz and Macon Ramos-Araneta

P

RESIDENT Rodrigo Duterte met with Speaker Gloria Macapagal Arroyo Tuesday night to come up with a solution to an impasse over the proposed 2019 P3.757-trillion national budget.

Deliberations on the budget were suspended after lawmakers demanded a return to the obligationbased budgeting system in lieu of a cash-based system that shortens the time agencies have to use funding for their projects.

Davao City Rep. Karlo Alexei Nograles, chairman of the House committee on appropriations, said Arroyo will be accompanied by House Majority Leader and Camarines Sur Rep. Rolando Andaya Jr., a former secretary of the Department of Budget and Management.

“There will be a meeting tonight

[Tuesday night] at the Palace between President Duterte and Nograles said the meeting comes after he failed to convince Budget Secretary Benjamin Diokno during his meeting Tuesday morning for the DBM to amend the 2019 national budget bill towards an obligations-based budgeting system.

“I do not see why your hardline stance on the cash-based budgeting system, [when in the end we will adopt the Plan B―which is to go for a reenacted budget],” Nograles said.

Next page

V. Luna suppliers had role in P1.4-b mess—military MILITARY authorities said Tuesday civilian suppliers were involved in the allegedly anomalous purchase of military medical supplies which prompted President Rodrigo Duterte to immediately fire 20 top officials of the AFP Medical Center.

Those relieved were accused of involvement in 17 cases of ghost transactions involving supplies, drugs and equipment at inflated prices.

AFP Chief of Staff Carlito Galvez Jr.

told radio dzMM in an interview one of the findings of their investigation was that there were civilian suppliers and they dictated the price of the deals.

Defense Secretary Delfin Lorenzana said, “We expect that the morale of troops will be affected positively by this.”

He added the relief showed the government was working hard to eliminate corruption in its ranks.

As this developed, President Duterte

fired the comptroller of the Philippine Military Academy for allegedly misusing cadets’ allowance amounting to at least P15 million.

“Send the guy to hell. That’s an order,” Duterte said, adding that Hector Marana faces six to 12 years imprisonment if found guilty for malversation.

Lawmakers on Tuesday hailed Duterte’s move of firing of top officials of the AFP Next page

Edsa rush-hour traffic dry run takes effect today

Teo wants brod to keep P60m in Tourism ad money

By Macon Ramos-Araneta FORMER Tourism secretary Wanda Teo on Tuesday told the Senate Blue Ribbon committee she believed the P60 million paid to her brother Ben Tulfo’s company for tourism ads— a conflict of interest that cost her her

job—should not be returned.

“My first decision was that they cannot return the money,” she said in Filipino. “It’s difficult. Where’s the money? They had already done a lot.”

Next page

By Joel E. Zurbano and Macon Ramos-Araneta

Clarkson gets NBA nod to play for PH quintet

‘‘ SPORTS A8

They [Ben Tulfo’s company] cannot return the money...

The contract was finished and the money was already spent.

—Former Tourism secretary Wanda Teo, insisting that her brother should not return the P60 million paid to his company for tourism ads

THE Metro Manila Development Authority will begin today (Aug. 15) the week-long dry run activity for the High Occupancy Vehicle traffic scheme aimed at reducing the volume of vehicles, especially private cars, along Epifanio de los Santos Avenue during rush hours.

“Let us see for one week how the HOV scheme will work. We are calling on the participation of the public,” said MMDA general manager Jose Arturo Garcia Jr.

SC clips Senate’s power to detain in contempt case

By Rey E. Requejo THE Supreme Court has ruled the Senate has no power to indefinitely detain a person cited in contempt during its legislative inquiry.

In a 21-page en banc decision written by Associate Justice Alexander Gesmundo, the SC unanimously resolved that the period of imprisonment under the inherent power of contempt of the Senate should only last until the termination of the legislative investigation. Next page

WE DO, YOUR HONOR. Former Tourism secretary Wanda Tulfo Teo (left) and her brothers Ben Tulfo of Bitag Media Unlimited Inc. and Erwin Tulfo (right) swear to tell the truth during the Senate public hearing Tuesday, conducted by the Blue Ribbon Committee on the allegedly anomalous P60-million ad placement made by the Department of Tourism regarding Bitag Media Unlimited for airtime in Kilos Pronto program of the government’s PTV-4 produced and co-hosted by Teo’s brothers. Lino Santos

Defense dep’t receives high-tech surveillance system from US

THE United States turned over on Tuesday a sophisticated surveillance and reconnaissance system worth P807 million to the Department of National Defense as part of the US’ commitment to reinforce the defense capabilities of the Philippine military.

In a ceremony at Villamor Air Base in Pasay City, US Ambassador to the Philippines Sung Kim handed over to Defense Secretary Delfin Lorenzana the Special Airborne Mission Installation and Response system, a highly advanced surveillance and

reconnaissance system.

The SABIR system aims to increase the Philippine military’s maritime domain awareness, airborne command and control, counterterrorism, and humanitarian assistance Next page and disaster relief capabilities.

News

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WEDNESDAY, AUGUST 15, 2018 mst.daydesk@gmail.com

19 more groups buck federal shift

By Julito G. Rada

M

ORE organizations have joined the call to the Duterte administration to weigh the cost and risks of shifting to a federal form of government, a group said Tuesday.

The Management Association of the Philippines said 19 big groups from different sectors had joined the groups of businessmen who had previously expressed their apprehension on the planned shift from presidential to a federal form of government.

The 19 organizations are Alyansa Agrikultura, Asia Pacific Real Estate Association, Bankers Association of the Philippines, Foundation for Economic Freedom, Institute of Corporate Directors,

Investment House Association of the Philippines, Judicial Reform Initiative, National Real Estate Association, Organizations of Socialized Housing Developers of the Philippines, People Management Association of the Philippines, Philippine Constructors Association, Philippine Institute of Certified Public Accountants, Philippine Women’s Economic Network, Semiconductor and Electronics Industries in the Philippines, Inc., Shareholders’ Association of the Philippines, Subdivision and Housing Developers Association, Tax Management Association of the Philippines, UP School of Economics Alumni Association, and Women’s Business Council Philippines.

In a joint statement, the groups said at this time, when the financial markets in the developing countries were being roiled following the difficulties of Venezuela and Turkey, it was all the more important that all sectors joined the call for fiscal prudence, more dialogs and a well-considered approach in the

shift to a federal form of government.

“Both the private and public sectors cannot be perceived as lacking in resolve on the fiscal front, seeing how financial markets are so sensitive. Hence, the ongoing meltdown occurring in some beleaguered markets,” the groups said.

“For this reason, many other organizations join the seven large business organizations in calling for legislators to weigh carefully the costs and risks associated with the proposed monumental shift to a federal system of government.”

On Aug.12, the Cebu Business Club, the Employers Confederation of the Philippines, the Financial Executives Institute of the Philippines, the Makati Business Club, the Management Association of the Philippines, the Philippine Chamber of Commerce and Industry and the Philippine Exporters Confederation Inc. urged the legislators in a joint statement to consider the implications of a shift to federalism on the country’s finances.

Arrest order out Subic administrator faces graft raps vs Cebu trader in drug charges

By Rio N. Araja

By Rey E. Requejo and Joel E. Zurbano A MAKATI court on Tuesday ordered the arrest of Cebuano businessman Peter Lim who was charged with conspiracy to trade in illegal drugs by the Justice department last week.

Judge Gina Bibat-Palamos of the Makati City RTC Branch 65 ordered the arrest of Lim and three other accused― detained drug trader Kerwin Espinosa, state witness Marcelo Adorco and Rule Malindangan―after the department filed a case against them for violating Republic Act 9165.

Government prosecutors on Monday asked the court to issue a hold-departure order against Lim, who has just returned following a trip abroad.

Espinosa is under the custody of the Witness Protection Program while also facing other drug cases before the Manila RTC, while Adorco is under the custody of the Criminal Investigation and Detection Group. Malindangan remains at large.

“After a careful evaluation of the information and the supporting evidence, this Court finds that it has jurisdiction over the subject matter of the Information and that probable cause exist to hold accused... for trial,” the Makati court said in an order.

The court set the arraignment of the accused in a hearing on Aug. 28 at 1:30 am.

In a separate order, the court also set for hearing on Aug. 17 the Justice Department’s plea to issue a hold-departure order against Lim. The department indicted Lim on Aug. 10 after finding probable cause in the complaint filed by the Philippine National Police, which was earlier dismissed by a previous panel of prosecutors.

Edsa...

From A1

Under the policy, private vehicles occupied by a single rider or a driver without companions will be totally banned from using Edsa from 7 am to 10 am in the morning and from 6 pm to 9 pm in the evening, from Monday to Friday.

In the Senate, Senator Grace Poe warned a replicate of the “horrors of Edsa traffic everywhere” if the Metro Manila Council followed the ban on single-passenger cars on traffic-laden Edsa during rush hour.

To avoid this worst scenario, Poe, chairperson of the Senate committee on public services, said the MMC should ensure they could handle the affected motorists who would pass the inner city and barangay roads.

She also told the MMC to inform the public about the facts and data that led them to conclude that a ban on single-passenger vehicles in Edsa could reduce traffic all throughout Metro Manila.

“What makes them so absolutely sure that their proposal will work? What was the result of the trial conducted in December last year? Was it effective? Did it considerably reduce traffic?” asked Poe. She also questioned where would the 70 percent of those who traverse Edsa on a daily basis be re-routed.

The new measure, which also aimed to encourage private motorists to share ride with others, was proposed last year by the MMDA to members of the Metro Manila Council, the agency’s governing board and policy-making body, after the Council rejected the suggestion of lawmakers to implement an odd-even number traffic scheme along Edsa.

The MMDA blamed the increasing number of private vehicles as the major cause of monstrous traffic along Edsa.

It also reported that about 6,000 private cars were being sold every month.

Garcia said the HOV policy would result in a remarkable decrease in travel time and increase in travel speed along the 23.8-kilometer highway.

“With the proposed policy, Edsa will have 40 percent less vehicles,” he said.

Based on Edsa’s average daily traffic in 2017, there are 367,738 vehicles traversing along the major artery daily.

From this figure, 67 percent or a total of 247,527 are private motor vehicles.

SUBIC Bay Metropolitan Authority chairman and administrator Wilma Eisma is facing a complaint of graft before the Office of the Ombudsman for her alleged failure to divest from her businesses.

Lawyer Raymund Palad filed the complaint against Eisma for her alleged dishonesty, gross misconduct, graft, violation of Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees, and conduct prejudicial to the best interest of the government.

“It is mandatory for all public officials to divest all of [their] investments in any corporation or business,” Palad said in his complaint.

“This is to avoid conflict of interest in the performance of a government of-

Rody...

From A1

Senator Loren Legarda, chairperson of the Senate committee on finance, also attended the Tuesday morning meeting with Nograles and Diokno.

But Nograles said he still hopeful that Diokno will consider the demand of Congress to return to an obligationsbased budgeting scheme.

“We are here to watch the President’s back as members of the PDP [Partido ng Demokratikong Pilipino]... as members of the President’s political party.. and support the projects that work. We have to ensure they are not derailed,” Nograles said.

Nograles noted that the DBM would have to go back to Congress for a supplemental budget once a re-enacted budget is in place.

Senate Minority Leader Franklin M. Drilon on Tuesday branded as “foolish and counter-productive” the suspension of budget deliberations in the House, saying it will only make the President appear weak for being unable to pass his own budget despite having a supermajority in Congress.

Drilon said that the House of Representatives’ plan to return the proposed 2019 national budget to the executive “has never been done before,” said Drilon, adding that he is not aware of any procedure that would allow that.

“Therefore, I urge both houses of Congress to resume deliberations of the budget because it is our constitutional duty to enact an annual budget.

We cannot and we should not allow a reenacted budget, most particularly in an election year,” Drilon said.

SC...

From A1 The high court stressed the need to “strike a balance” between the interest of the Senate and the rights of persons cited in contempt during its legislative inquiries.

“Accordingly, as long as there is a legitimate legislative inquiry, then the inherent power of contempt by the Senate may be properly exercised. Conversely, once the said legislative inquiry concludes, the exercise of the inherent power of contempt ceases and there is no more genuine necessity to penalize the detained witness,” the SC ruled.

The tribunal stressed that legislative inquiry in aid of legislation terminated upon the approval or disapproval of the Committee Report or upon the expiration of one Congress.

The SC laid down this ruling when it resolved last July 3, 2018 the petition of Aegis Juris fraternity leader Arvin Balag who was among 11 members of the Aegis Juris fraternity indicted for violation of Republic Act 8049 or the Anti-Hazing Law, in connection with the fatal hazing of University of Santo Tomas law student Horatio “Atio” del Castillo IV. On Oct. 25, 2017, Balag filed a petition before the SC after senators at a joint inquiry on the del Castillo case ordered him

ficial’s function.”

Palad accuses Eisma of being a stockholder and director of TECO (Philippines), an SBMA locator.”

But Eisma said there was no conflict of interest on her part in representing the SBMA in a joint venture with a business locator.

She said she was simply representing SBMA’s interest in the company as a nominal shareholder of 25 qualifying shares and as a nominee director.

“The people behind this complaint would like to obfuscate the fact that TECO is owned by the Subic Bay Development and Management Corp., which is a joint venture between the SBMA and the UDC Group of Taiwan,” Eisma said.

Palad accused Eisma of acquiring more shares from TECO and had herself elected as one of the board members.

“So, stop these foolish talks of a reenacted budget. It’s not a good practice and it will not lead us anywhere,” Drilon said. “It will prejudice every Juan dela Cruz and it will be detrimental to the economy and the implementation of crucial laws such as the Bangsamoro Organic Law.” “A reenacted budget is bad for the country and will reflect badly on the President as it will make him appear weak,” Drilon said.

The Palace said Tuesday it was maintaining friendly ties with the House despite he impasse over the national budget.

In a press briefing, Presidential Spokesman Harry Roque called on members of the House to explain their refusal to hold budget hearings, given that their own respective pet projects could be affected.

“Expect a long line of congressmen lining up now in DBM if it’s a reenacted budget, because they will make sure their pet projects are implmented by the Executive,” he said.

“We don’t want that. Let me clarify: We don’t want that. We prefer that the budget is passed. We see no reason why Congress will stop altogether deliberations on the budget,” Roque said.

Senator Francis Pangilinan, meanwhile, said nothing is insurmountable in the disagreement between the House and the Palace.

He also said a reenacted budget would be unacceptable because it would give the President the blanket authority to declare the capital outlay component of the budget as “savings,” giving him the power to fund whatever programs, activities and projects he wants in an election year. detained in Senate premises for being uncooperative.

Balag repeatedly invoked his right against self-incrimination even when asked with simple questions to established points of fact.

The SC ordered Balag’s “interim release,” two months after.

In its decision, the high court declared Balag’s petition questioning the legality of his detention by the Senate moot and academic, but it nonetheless resolved what it considered as “a critical and decisive issue,” particularly the duration of the detention for a contempt ordered by the Senate.

“This issue must be threshed out as the Senate’s exercise of its power of contempt without a definite period is capable of repetition,” the SC noted.

“Moreover, the indefinite detention of persons cited in contempt impairs their constitutional right to liberty. Thus, paramount public interest requires the Court to determine such issue to ensure that the constitutional rights of the persons appearing before a legislative inquiry of the Senate are protected,” the high court emphasized.

The tribunal noted that a previous ruling in Arnault v. Nazareno held that the Senate “is a continuing body and which does not cease to exist upon the periodical dissolution of Congress or of the House of Representatives.

Customs...

From A1

chemists from the Philippine National Police Scene of Crime Operations Office, the PDEA and the Bureau of Customs conducted swab tests on the lifters and found no trace of shabu.

On Friday, PDEA chief Aaron Aquino said the lifters had contained one ton of shabu worth P6.8 billion that has slipped past Customs. He said the magnetic lifters were similar to two seized by the Bureau of Customs on Aug. 7 that contained 500 kilograms of shabu worth P4.3 billion.

The committee led by Surigao del Norte Rep. Robert Ace Barbers is investigating the PDEA claims.

In his opening statement, Barbers said he does “not believe that the incident happened without the knowledge of and connivance with some corrupt bureau personnel.”

But Lapeña told the congressmen investigating the alleged drug smuggling that Aquino’s claim that one ton of shabu may already be in the streets had no basis.

Lapeña chided Aquino, saying: “As government authorities, we have to be prudent in providing unverified information to the general public to allay further fear or confusion.”

President Rodrigo Duterte seemed to side with Lapeña, calling Aquino’s statements “pure speculation.”

“There was nothing there,” Duterte said at the Palace. “You do not go into speculative content. You must be very sure that you have the goods.”

Aquino did not attend the hearing saying that he had an earlier “important commitment” but sent lawyer Ruel Lasala, officer in charge of PDEA’s Office of the Deputy Director General, who said the agency stands by its findings.

He said drug-sniffing dogs had identified traces of illegal drugs and said that the address of the consignee was the same as that of the intercepted shipment of shabu from Aug. 7. With Joel E. Zurbano

Teo...

From A1 “It was done. The contract was finished and the money was spent. Where would they get the money to pay it back?” she said.

Teo also denied the testimony of People’s Television Network Inc. president Dino Antonio Apolonio that the proposal to put ads in the program Kilos Pronto produced and hosted by Tulfo and his brother Erwin, came from the Department of Tourism, at the time headed by Teo. “They made the proposal,” said Teo, referring to PTVI, insisting that the name of the show was already in the proposal.

“I’m sorry but that’s not true. They were the one [PTV-4] which gave us the proposal,” she said.

She also said no one told her that Kilos Pronto was produced by her brother’s Bitag Media Unlimited Inc. “I didn’t know that Ben [Tulfo] is with Kilos Pronto. All I know of is Ben is with Bitag,” Teo told Senator Richard Gordon, chairman of the Blue Ribbon committee.

“You didn’t know that Kilos Pronto is the program of your brother?” Gordon asked.

Teo said no, and said she had no time to watch TV. Unconvinced, Gordon pointed out there were three documents signed by Teo that clearly showed the money would go to the show of Ben Tulfo.

Teo insisted that she did not know the show was her brother’s and would not have signed the papers had she known that.

She also said the contract was between PTV-4 and the Tourism department, and not Bitag. “I didn’t know where the ads would be placed,” she said.

Apolonio said when they got the contract, they did not see any conflict of interest with either the Tourism department or Kilos Pronto.

Asked why the Tourism Department did not put its ads with the big TV networks, Tourism Undersecretary Kat Castro said PTV-4 offered cheaper airtime.

Commission on Audit supervising auditor Norma Aquino, meanwhile, told the panel that there was a possible conflict of interest based on the memorandum of agreement between the Tourism department and PTV-4. She said over P89 million or 75 percent of the computed contract cost went to Bitag, while the remaining 25 percent was allocated to other news programs.

‘Use of ballot images weakens Marcos protest’

By Rio N. Araja THE camp of Vice President Leni Robredo said Tuesday the use of ballot images in 25 clustered precincts with wet and damaged ballots in Iloilo and Camarines Sur would only belie the election fraud alleged by former senator Ferdinand Marcos Jr. Robredo’s lawyer, Romulo Macalintal, said the ballot images would confirm the weakness of Marcos’ electoral protest.

She urged the Supreme Court sitting as the Presidential Electoral Tribunal to deny Marcos’ motion to hold in abeyance the use of decrypted ballot images in Camarines Sur and Iloilo.

Earlier, the PET, in three separate resolutions, allowed the revision, recount and re-appreciation of the decrypted ballot images in 25 clustered precincts after the original paper ballots were found to be wet or damaged.

Marcos’ camp raised these wet ballots when the revision started in April and opposed the use of the ballot images in his two motions dated July 5 and July 16.

“In fact, contrary to his claims, this is the first time since the revision, recount and re-appreciation of the ballots started in 02 April 2018 that protestant Marcos has raised the authenticity and reliability of the decrypted ballot images,” Macalintal said.

“Now, as no less than four documents consistently confirm the votes received by the parties and the results of the elections, protestant Marcos has resorted to misleading the Honorable Tribunal.”

Macalintal said Marcos sought the recount, revision and re-appreciation not only of the official ballots but the ballot images as well when he designated his pilot provinces in his preliminary conference brief.

V. Luna...

From A1

Medical Center over the P1.4 billion in alleged ghost transactions, saying the action of the Chief Executive jibed with the government’s “fearless” anti-corruption campaign.

Reps. Johnny Pimentel of Surigao del Sur, Rodolfo Albano III of Isabela and Winston Castelo of Quezon City said the move of Duterte to order the relief of Brig.

Gen. Edwin Leo Torrelavega, commander of the AFP Health Service Command, and Col. Antonio Punzalan, commander at the V. Luna Medical Center showed his political will to get rid of corruption in government.

“It just shows that President Duterte has the political will to get rid of corruption in our government,” Pimentel, chairman of the House committee on good government and public accountability, said.

“If we want to become a developed nation we must first eradicate corruption.

Therefore, the President is in the right direction to fight corruption and I fully support him in this drive,” he added.

Albano said what the President did was a “great move.” “[The President] doesn’t joke about corruption,” he added.

Castelo, for his part, said, “We commend the President on his fearless campaign against corruption. This will send a strong signal to scalawags out there.”

Meanwhile, AKO-Bicol Party-List Rep. Alfredo Garbin said the President anti-corruption drive must be intensified.

“It goes to show that he is serious in his corruption drive. But the said advocacy should not stop from there,” Garbin, a deputy minority leader, said. “Someone should get charged and jailed to set a precedent and discourage others from emulating them,” he added. Maricel V. Cruz, PNA

Defense...

From A1

“The transfer of the SABIR system today, along with the Scan Eagle system this past March, and the C-208 aircraft in August 2017, represents our steadfast commitment to enhancing the capabilities of the Armed Forces of the Philippines,” said Ambassador Kim at the ceremony.

The US ambassador and officials from the Joint US Military Assistance Group provided the system to the Philippine Air Force through Maritime Security Initiative funding, a US initiative to build the maritime capacity of Southeast Asian nations.

The total value of the transfer is P807 million ($15.1 million), which includes the cost of training, installation, and sustainment support in addition to the equipment itself.

The SABIR system is a bolt-on avionics module for the C-130 Hercules aircraft.

The system upgrades the aircraft with advanced command and control, communications, computer, and surveillance and reconnaissance capabilities without sacrificing the aircraft’s primary function as a cargo plane.

The SABIR system will be operated by the PAF’s 300 Air Intelligence and Security Wing (300 AISW) out of Benito Ebuen Air Base, Mactan.

The 300 AISW provides the PAF with near-real time intelligence, surveillance and reconnaissance capabilities through both manned and unmanned aircraft, including the SABIR system, Scan Eagle Unmanned Aerial System, and the C-208 aircraft, all donated by the United States government over the past year. Rey E. Requejo

News

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WEDNESDAY, AUGUST 15, 2018 mst.daydesk@gmail.com

A4

Opinion

WEDNESDAY, AUGUST 15, 2018

mst.daydesk@gmail.com

Sara’s party

Adelle Chua, Editor

EDITORIAL

you may feel you just wasted your time.

It’s worse if you are an idealist, wanting to make a difference and then seeing that everybody else is stealing.

I have known government officials leaving their posts penniless because JUST as I predicted, after it became they could no longer stand the stench known that presidential daughter and of corruption.

Davao City Mayor Sara Duterte Carpio They tell me what they learned: That and Ilocos Norte Gov. Imee Marcos (on if you are not a “team player,” you will behalf of her mother, former First Lady be harassed with suits or fall victim to Imelda Marcos) were behind the ouster “whistleblowers.” of former Speaker Pantaleon Alvarez In other words, public service is not and the installation of Pampanga Rep. for idealists. This is why I never held a Gloria Macapagal Arroyo as Speaker, government office. national parties and local groupings I remember when an official in one would gravitate toward Sara’s Hugpong of the government commissions sought ng Pagbabago. my advice because there was infightAt least three national political par- ing among her colleagues. I told her she ties and six local groups have forged an should get out of government and move alliance with Hugpong. This includes to the private sector. I have lost track of the Nacionalista Party, the National- her and don’t know whether she indeed ist People’s Coaligot out of governtion, the National ment.

Unity Party as Sure, there are well as the local exceptions— Everybody groups of Serbisyo those who have Bayan party (Que- gravitated to enough money zon City), Alyansa and fortitude to the presidential Bols-sano Alang avoid corruption. sa Kausaban (Bo- daughter after the But these are hol) and Aggrupa- Sona. exactly that— tion of Party for exceptions.

Progress (Zam*** It is becoming boanga del Norte). clear that the deThis means that aside from the ruling PDP-Laban, this bate on Charter change to effect a shift alliance has become a major national from the unitary to federal form of govpolitical party, There are expectations ernment is dooming the proposal. that it will eventually become a nationHow can there be Charter change al party alliance. when senators are united in opposing As such, the nine-party alliance can it? How can federalism push through now field their own senatorial slate and when millions of Filipinos are clueless local candidates for 2019 with Imee about it?

Marcos heading that ticket together Most of all, how can it happen when with the group of Senate reelection- the country’s economic managers are ists Cynthia Villar, Grace Poe, Nancy now speaking out against the risks of Binay and JV Ejercito, together with shifting into the federal form? returning senatorial bet Pia Cayetano.

I asked some friends in the business My gulay, even reelectionist Senator sector what they thought, and they told Koko Pimentel could be included if the me they have no idea how federalism PDP-Laban chooses to align itself with would affect their trade.

Sara’s group.

A property developer, for instance, I say outright that this nine-party al- expressed fears over the planned 18 liance is the party to watch. federated states with their own poliIndeed, politics is the art of the cies, rules and regulations. Instead of possible. dealing with only one government, *** businesspeople now have to deal with Being in public service, you can only many. end up frustrated.

If the President is listening, people It really is a thankless job and if you feel that we are not ready for federalism. are a person of honesty and integrity, Turn to A5

TO THE POINT EMIL P. JURADO

T

It’s the economy, stupid

HERE has been a suggestion that President Rodrigo Duterte fire his Finance chief and his Socioeconomic Planning secretary for expressing their misgivings about the proposed shift to a federal form of government. Under normal circumstances, such a call would be understandable, since all Cabinet secretaries, as alter egos of the President, are expected to toe the line when it comes to national policies. could result in dire, irreversible economic consequences.”

These include a P1.2-trillion budget deficit—representing 6.7 percent of gross domestic product—a development that could have dire consequences on the country’s credit rating.

“We welcome a discussion on the draft so that it is clear and unambiguous. We do not want the revenue assignment and the expenditure assignment to be misunderstood,” he said.

Specifically, he said, the draft charter contained provisions on the taxation powers of the federal government and the federated regions and a provision on revenue assignment in which the federated regions would be given a 50-percent share in income, excise, value-added taxes and customs duties, but carries no provision on expenditure assignment.

The draft constitution also enumerated the exclusive powers of the federal government and the federated regions but was silent on the funding source for the exercise of these powers, he said.

As for the call for the Presi-

But there is nothing normal or ordinary about the proposed shift to a federal system of government, which represents a major overhaul of the way the republic has been doing business since 1946. Under these circumstances, the country’s economic managers would be remiss in their duties if they did not voice their concerns.

Last week, Finance Secretary Carlos Dominguez III called for a dialog on federalism, saying the draft federal constitution contains ambiguous provisions on the allocation of expenditures for the would-be federated government and its federated regions.

In a statement, Dominguez said these things underscored the urgency of opening more discussions on this proposed document drafted by the ConCom. Dominguez made it clear that while the economic team was not against federalism, it has the responsibility to point out the ambiguous and unclear provisions in the proposed draft charter, “especially when the possible repercussions

dent to fire him and Socioeconomic Planning Secretary Ernesto Pernia, he said that while he respected the ConCom, this type of attitude “would not enrich the level of discourse on the proposed Constitution.”

The economic managers are not alone in these concerns, with major business groups—the Philippine Chamber of Commerce and Industry, the Management Association of the Philippines, the Employers Confederation of the Philippines, and the Financial Executives Institute of the Philippines, to name a few—throwing support behind them.

Even before the Con-Com completed its work, it was clear that the federal constitution they would produce was merely a recommendatory draft that could be amended and refined by Congress. In this context, the concerns raised by the economic managers constitute an important—and even crucial--input in this process of refinement.

The final goal of the administration’s push for federalism, after all, is to achieve a better life for all Filipinos.

Lawmakers who must now take the Con-Com’s work and iron out the kinks might do well to stay grounded by recalling the 1992 campaign mantra of Bill Clinton when he ran for president and won: It’s the economy, stupid.

Water, water everywhere han” spirit. Children and the elderly were helped into lifeboats manned by neighborhood rescue teams. TV footage of two couples getting married in a church with ankle-deep floodwaters ALEJANDRO in Bulacan and Pampanga went viral.

DEL ROSARIO Undaunted by the inclement weather, GOES the old saying: “Water, water, the Bulacan newlyweds also had their water everywhere but not a drop to months-old baby baptized. The newlydrink.” weds showed the world that love will The adage is not totally true eve- survive as they vowed to have each rywhere, but there are many areas in other for bad weather or worse.

Metro Manila where residents comThe flooding problem in Metro Maplain about the lack of potable water. nila can be traced to the water flowMaynilad explained that water in the ing from the mountains near Moncountry’s reservoir dams is dirty it has talban and Antipolo. It needs to flow stopped production and distribution. into the Pasig River leading to Manila Relentless monsoon rains unleashed Bay. Other water arteries are clogged by back-to-back tropical storms flood- with garbage mindlessly thrown by ed the National Capital Region, Cen- residents and informal settlers living tral and Northern Luzon. Knee-deep along the river banks and esteros of and waist-high the metropolis. floodwaters were Along Manila a familiar sight Bay, 64 dump in Bulacan and trucks hauled Pampanga towns tons of trash that Aside from the It was the same washed on Roxas story in almost all human toll, damage Boulevard. Plasof the towns and to infrastructure and tic bags, bottles cities in Pangasi- agricultural crops can and all sorts of nan. The major garbage were colTV networks kept reach billions of pesos. lected by Manila’s showing daily the sanitation worksuffering of peoers. ple in the floodCompou nding ed-areas. the problem was In Metro Manila, the worst hit were the P94-billion dredging project of the areas near the Marikina River, Laguna Lake scrapped by the Aquino particularly Provident Village. administration This resulted in several Marikina residents recalled that last Laguna towns including Sta. Cruz to week’s incessant rains and the flood- be flooded with muddy waters somewaters were as deep and devastating time staying for nearly a month. as Ondoy in 2009 that sent some ProvAside from the human toll, damident Village residents to the rooftops age to infrastructure and agricultural of their houses. I had an older brother crops can reach billions of pesos, furwho despite being sick managed to ther raising the cost of rice, vegetables make it to the roof of his house. and other basic commodities. This is If at all, the relentless rains and the as if the runaway TRAIN wreck hasn’t ensuing floodwater showed the peo- done enough to drive up prices. ple’s resilience and Filipinos’ “bayaniTurn to A5

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San Miguel’s best year VIRTUAL REALITY TONY LOPEZ ECONOMIC growth, as measured by the expansion in the country’s output of goods and services (Gross Domestic Product or GDP), slowed down in the second quarter of 2018.

The economy grew by just 6.0 percent in the April-May-June period this year. This is a letdown from the hefty 6.7-percent growth in the second quarter of 2017. The slower GDP growth

rate was due mainly to agriculture which grew by a paltry 0.2 percent.

With the population growing by 1.8 percent per year to 106 million today, a 0.2-percent farm growth means we have a food shortage.

First-half results alone tell a compelling story.

Since food is at least half or 50 percent of an average household’s expenditure (rice alone eats up 20 percent), a nearly negative agriculture growth means higher inflation rate because there are more pesos chasing a decreasing supply of food.

In a way, a slower economic growth is good news. It wakes up some people about what is fundamentally wrong with the economy, like why can’t a country with such a rich soil not produce enough food for its people? It also diminishes the hubris of some economic managers who think they are insanely great.

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Opinion

WEDNESDAY, AUGUST 15, 2018

Respectable CROSSROADS

JONATHAN A. DE LA CRUZ TAKE it from the experts. Reports have it that the International Monetary Fund which researches and analyzes global economic indicators of its 157 member countries has adjudged our slower second quarter growth rate as “respectable.”

No less than IMF Resident Representative Yongzheng Yang said: “The Philippines’ growth momentum remains intact even as economic expansion slowed to six percent in April-June.”

Yang said: “The Q2 growth number was indeed below market expectations, but six percent is still a respectable growth rate considering the external pressures on the economy.

GDP growth slowed from the downward revised 6.6-percent pace in the first quarter due to slower expansion in consumer spending and exports, although this was offset by a surge in state spending.”

Compare this fact-based, objective analysis of our situation with that of the doomsayers in our midst who have made it a habit to exaggerate even the littlest downward tweak in the forecasts and extrapolate the same to the hyperventilated reaction of the Manangs to the slow distribution of cheaper NFA rice, the increase in prices of GG and meat in some talipapa advised as “soaring,” the exaggerated claims of the pseudo-economists of the negative impact of the TRAIN Law and even the expensive Chinese loans.

Of course, as these guys are wont to argue, the defenders of the status quo such as the likes of Yang and his colleagues in the World Bank, ADB and the big private banks will always take the sunnier view as in “the glass is half full”versus those holding fort in ground zero (take that to mean the

San...

From A4

Also, lower economic growth figures this year mean higher growth numbers in 2019 because of the principle of what economists call the low-base effect: What goes down must somehow go up.

Next year is an election year and so our politicians can claim some credit for a stronger economy by then.

Truth to tell, 2018 is going to be the best year for most of our large corporations. The large conglomerates account for easily 60 percent of economic output.

Take San Miguel Corp., the Philippines’ largest conglomerate in sales and profits. My estimate is that SMC revenues will reach the P1-trillion mark for the first time in its 128-year history, while profits will be a record P80 billion.

San Miguel’ first half results tell a compelling story. January-June 2018 revenues reached a record P499 billion, 27 percent higher than the same period in 2017. If you annualize P499 billion or double this amount (since there are two semesters in a year), it is reasonable to expect a P1-trillion sale for SMC for the whole of 2018.

SMC’s first half 2018 profits were P35.5 billion. You double that to estimate a whole year net of P71 billion.

Since the second half is usually stronger than the first, an P80-billion profit haul is not unlikely for the whole of 2018.

SMC is a proxy for the country’s growth story. Its sales are bout 5 percent of total GDP. And it is present in many industries which are key components of the consumer price index and GDP—like food and beverage, fuel, power, utilities, infra, and services.

San Miguel says growth in its second half sales and profits was mainly driven by higher volumes and favorable selling prices.

All major businesses in food and beverage, power, fuel and oil, and infrastructure sustained their respective growth momentum. Including effects of unrealized mark-to-market losses as a result of foreign exchange translation, reported net income amounted to P27.6

Water,...

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Amid this human suffering people are asking where President Rodrigo Duterte was. Special Presidential Assistant Christopher “Bong” Go said the President is in Davao but he is monitoring the flood situation. We supposed SPA Go is also doing the monitoring for his boss. Normally, the Executive Secretary is the “Little President” but in this case SPA Go is the man to go to if you need information and assistance.

Classes have been suspended in many parts of the country due to impassable

millions out there who are “suffering” from what they term the economic maelstrom) who are about to be convinced that the “glass is half empty.”

We are not about to suggest that the latest slowdown brought about by a number of pressures, in and out of the local economy, has not had a negative effect on the situation of millions of our countrymen who labor day and night to make both ends meet. We feel their pain. But to describe the situation in such gloomy terms to the extent of suggesting that we are a candidate to be the Venezuela of the Asia-Pacific region is much too much. We are light years away from becoming one.

We are light years away from being the Venezuela of Southeast Asia.

For one, our inflation rate at 5.6 percent while reportedly the highest in almost a decade is not even a tiny, tiny, tiny speck of a figure compared with that of Venezuela’s reported 1 million percent. There has been a spike in the prices of rice and other basic commodities as well as oil and transport but there is no shortage of food, medicine and other necessities as in Venezuela. We are not also experiencing black outs and the protest marches which have become daily occurrence in Caracas, the Venezuelan capital, and other cities in that country has not visited Manila and other urban centers.

Our situation is far from perfect but we are moving forward with such respectable showing. Better still, we are getting credit from the IMF and other global institutional monitors for the economy’s resiliency and our fast ac-

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Cross-border tion in stabilizing our situation.

No less than the latest survey of 2,500 business leaders across 32 economies during the same quarter on which economies the group is most optimistic about has adjudged the Philippines as number four after Indonesia, Netherlands and Austria.

We even bested China and the other members of the G-7 leading Western economies including the US, Germany, Japan, France and the UK. But, as the IMF itself noted, we have to work even harder to get our economy on even keel as we move on. In that regard, the fund has prescribed a number of measures which would put us back on track to a higher level of respectability.

Said Yang: “To accelerate GDP growth, significant structural reforms are needed to increase productivity, alongside scaling up infrastructure investments and on social services, particularly health and education....Thus the need for succeeding tax reform packages, opening up more industries to foreign investments by relaxing the “negative list” of sectors restricted to foreign participation, as well as replacing import quotas for rice with regular tariffs and an overhaul of the current tax incentives regime.”

On the other hand, the latest IMF study mission to the Philippines which finished its report last month backed the proposal for the government to maintain the fiscal deficit at 2.4 percent of GDP this year and for the Bangko Sentral ng Pilipinas to take forceful action to address inflationary pressure by raising the policy rate by another 50 basis points and continue to tighten policy rates to rein in negative expectations.

All of these prescriptions coupled with the latest discussions on the best way to work sustain the momentum with a responsive and responsible 2019 national government budget should lift the gloom and, as the IMF said, lift the economy even higher beyond respectable.

billion, up 6 percent.

SMC’s operating income also registered higher growth at 25 percent to P67 billion brought about by higher volumes and better margins. Group EBITDA amounted to P83.5 billion, 18 percent higher than the prior year.

Says SMC president and chief operating officer Ramon S. Ang: “Increased business focus and a lot of hard work were key to our group’s stellar performance. We’re encouraged by the results we’ve had so far, and are very hopeful that this momentum will carry through for the rest of the year.”

Combined sales revenues of San Miguel Food and Beverage Inc. for the first half totaled P137.4 billion, 15 percent higher than P119.1 billion in 2017. Similarly, operating income and net income of P22.9 billion and P15.4 billion both grew 20 percent from the same period last year.

Combined sales revenues of San Miguel Food and Beverage Inc. for the first half totaled P137.4 billion, 15 percent higher than P119.1 billion in 2017.

Similarly, operating income and net income of P22.9 billion and P15.4 billion both grew 20 percent from the same period last year.

San Miguel Brewery, Inc. continued its solid performance posting strong volumes mainly driven by increased consumption of our beer products nationwide and boosted by the implementation of new campaigns and consumer and trade programs that continued to further strengthen the equity of our SMB brands. Revenues of P62.5 billion, grew 18 percent higher vs. last year. SMB’s consolidated operating income and net income of P17.3 billion and P11.8 billion, grew 23 percent and 26 percent from last year respectively.

Ginebra San Miguel Inc. likewise recorded a strong first semester performance posting a net income of P506 million, almost double from last year.

Core brands Ginebra San Miguel and Vino Kulafu continued to drive growth momentum, benefiting from new thematic campaigns launched early this year and ongoing consumer promotions. Revenues rose 19 percent to P12 billion while operating income reached

P862 million, 57 percent higher than previous year.

Food Group’s consolidated revenues for the first half of the year, reached P62.9 billion, 12.4 percent higher than last year mainly driven by the strong performance of Agro-industrial and Branded Value-Added businesses. Income from Operations, and the other hand, grew 5.7 percent to P4.7 billion, on the back of the business segments’ overall higher revenues and improved operational efficiencies. Net income amounted to P3.1 billion.

San Miguel Yamamura Packaging Group’s total sales revenues reached P17.6 billion, 25 percent higher from 2017. Strong sales from the glass, plastics, metal and our Australian operations continue to drive growth. Operating income amounted to P1.6 billion, 17 percent higher than 2017.

SMC Global Power Holdings Corp. consolidated revenues grew 41 percent to P57.4 with additional revenues from Masinloc, Limay and Malita, higher off-take volume of SMELC-RES, higher average realization prices for Sual’s bilateral and spot sales, and higher spot sales from Ilijan.

Operating income reached P17 billion, 28 percent higher than the previous year at P13.3 billion.

Petron Corp. also sustained its strong performance with consolidated net income of P9.5 billion, 16 percent higher from P8.2 billion in the same period last year. Consolidated revenues grew 32 percent to P273.5 billion, compared to last year’s P207 billion, mainly driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products. Consolidated operating income amounted to P15.6 billion, higher by 7 percent than last year.

SMC’s Infrastructure business, meanwhile, posted consolidated revenue of P12.1 billion, 11 percent higher than last year on the back f continuous growth in traffic volume at all operating tollroads. Operating income grew 19 percent to P6.2 billion.

roads and flooded classrooms.

But the smugglers of shabu and rice continue their operation in defiance of Customs officials at the country’s harbors.

There has been no suspension of their nefarious activities despite the bad weather.

Women forming a third force Presidential daughter and Davao City Mayor Sara Duterte is on to something as she wins over other women of power and influence to her newly formed Hugpong ng Pagbabago. Inday Sara so far has gained the affiliation of billionaire Senator Cynthia Villar’s Nacionalista Party, Imee Marcos’ Solid North Ilocano bloc and Quezon City Vice Mayor Joy Belmonte whose father is former

House Speaker Feliciano Belmonte Jr. This is a formidable voting bloc which could take away the wind from the sail of whatever political plans Vice President Leni Robredo, ousted Supreme Court Chief Justice Maria Lourdes Sereno and retired Ombudsman Conchita Carpio-Morales have in the 2019 midterm elections and the presidential race in 2022. We have to hear whether former President and now House Speaker Gloria Macapagal Arroyo will join Sara’s newly formed party. We won’t be surprised if Speaker Arroyo does. After all, Inday Sara had a hand in installing GMA as Speaker, deposing Pantaleon Alvarez.

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each day to Paris, and from there to the Benelux countries without border inspections.

Back to Southeast Asia, the countries LITO of which altogether constitute one of the world’s biggest rice granaries, the BANAYO common denominator is the Mekong ALTHOUGH China produces, and in River, which flows from the plateaus fact exports rice, it actually also buys of Tibet to southern China, Myanmar, Laos, Thailand, Cambodia, and ending rice from neighboring Vietnam.

The two countries share a common up in southern Vietnam before it empland border. Altogether, the bounda- ties into the South China Sea. In similar fashion, water flows from ries of Yunnan and Guangxi provinces in China and those of Lao Cai and Ha the Himalayan regions to Kashmir in Gang in Vietnam constitute some 1,200 India, to irrigate rice fields in both Inkilometers. The boundaries were mu- dia and Pakistan, the other big rice protually agreed upon by the two countries ducers of the world.

The common denominator for rice as far back as when Vietnam was still production is always water, whether it under French colonial rule.

Rice, which is Vietnam’s primary ex- is the Mississippi in the US, or the Amport commodity, passes through these azon in Brazil, the Yellow and Yangtze borders, at estimated volumes of 1.5 to in China, or the Mekong in Southeast 2 million metric tons each year. Simi- Asia.

It takes 5,000 liters of water to prolarly, sugar which is Guangxi’s main crop, crosses the borders from Nan- duce 1 kilo of rice. Think of that and ning to Quang Ninh. Cheap manufac- wonder why it is so difficult, nay close tures from China are also exported to to impossible for archipelagic PhilipVietnam via the land borders. Actual pines to produce enough rice to feed cross-border trade figures are difficult the 12th largest country population in the world. to verify.

Our longest river is the Cagayan The same cross-border trade happens between China and Myanmar, China River, but that cannot provide enough water to irrigate and Laos. Noall of Eastern body is complainLuzon, which ing about what produces most would be considof our rice and ered “smuggling” This is the balance corn. The Aguin other countries. that our legislators and san River which It’s a way of life. flows from Davao In Sulu and economic policy-makers and Cotabato Tawi-Tawi, and must seek. into the Agusan parts of Southern provinces has not Palawan, the proxbeen sufficiently imity by water of tapped to provide the southernmost enough irrigation Philippine islands to produce our main staple, aside from to Sabah also makes cross-border trade possible. They call it barter, but really, the not-too-suitable soil quality in the there is little the Philippines barters with Agusan and Cotabato provinces for rice Sabah. It really is importation of goods production.

Because of porous land borders, from textiles to canned goods, to rice.

I recall how one Southern Mindanao loading port capacities and milling cacongressman chided us during budget pabilities, Cambodian rice is actually hearings that his constituents eat much bought and marketed by Thai and Vietbetter-quality rice than the NFA pro- namese traders who have mastered the vides. And just as cheap, he would add. intricacies of rice trading. Who knows What does the Bureau of Customs how much of the rice we import from do, I asked. His answer, with a wink of Thailand and Vietnam was actually grown and harvested in Cambodia? an eye, “may magagawa ba sila?”

Aside from comparative production One of Asia’s largest manufacturers of snack foods, Oishi, which is a Fili- advantage, logistics is an increasingly pino company made big and interna- big factor in the dilution of country tional by the pioneering Carlos Chan, borders when it comes to international Five years ago, rice from established a factory in the outskirts of trade.

Urumqi, the commercial capital of Xin- Cambodia could not compete with rice from Thailand or Vietnam because of jiang, China’s westernmost province.

Looking at the desolation of the Xin- antiquated milling facilities and bad jiang desert and its sparse population, port logistics. I am told that due to you would wonder why Oishi would massive Chinese aid to the Hun Sen locate there, besides being given gener- government though, the Cambodian ous tax breaks by the autonomous re- port of Sihanoukville now has better gion’s government. Xinjiang is also far cargo-loading facilities and the harbor removed from central China with its has been deepened.

Logistics is also one reason why it is bigger market. cheaper for Cagayan de Oro to import But it borders Kazakhstan and Kyrgyzstan, not to mention Mongolia. rice from Vietnam than it is for IsabelaThink of all the cross-border activity harvested rice to be transported all the way to Northern Mindanao. And of and the numerous market potentials.

Swiss families would travel by car course, rice is a lot cheaper in Vietnam on weekends from Schaffhausen in or Thailand than our locally-farmed rice.

Good quality long-grain rice retails their eastern border to Neuhausen am Rheinfall in Germany where the Rhine in these countries at the equivalent of River begins to flow through all of P26 per kilo. That would cost P38 to Germany until it empties into the North P40 in Manila markets.

Will the abolition of the quantitative Sea. They don’t go there just to watch the awesome waterfalls, but take ad- restrictions on rice importation and the vantage of the lower cost of groceries, corollary tariffication of the commodbecause of the VAT difference between ity bring down the selling price of rice in our country? Most definitely, yes. the two countries.

But how can our own palay farmers Imagine the customs activity among compete?

That is the balance that our the countries of Europe when they were still disparate countries not legislators and economic policy-makbound together by the European Un- ers must seek.

Lifting restrictions and imposing imion. Back in 1978, on my first trip to port duties on rice is not a panacea. It Europe, we stopped at every country border and immigration officers asked is not a one-size-fits-all solution. And to see our passports. With Schengen with our very long coastline defining visas nowadays, that has become a 7,100 islands, expect cross-border trading to flourish. What more if we bething of the past.

As far as goods are concerned, pro- come federal?

But that’s another complication. duce from Spain and Italy are trucked

SO I SEE

Sara’s...

From A4

Perhaps sometime in the future, when people are more informed, we can make a serious go for it. *** Somebody asked me if the Bureau of Customs can ever change. Most recently, some P7 billion worth of shabu was able to slip through its watch. Can you imagine how much more is being smuggled without us knowing about it?

I have given up suggesting what to do about Customs. I covered it for many years when I was business editor for the Philippines Herald. I know that smugglers would not be as brazen if they did not know people inside Customs.

We have done so many things to end corruption and smuggling. We have tried importing technical knowledge, to no avail.

I know that privatization is a draconian remedy, but something has to be done. If this does not work, nothing will. *** President Duterte was quoted as saying he hates gambling casinos.

If that is true, why did Pagcor grant the Landing—Nayong Pilipino gambling casino a five-year provisional license to operate?

Why not stop all the gambling casinos operating at Entertainment City?

Lastly, why not just abolish Pagcor? *** If my column is short, unlike other opinion pieces that are kilometric aimed to display how erudite and learned the authors are, it is because I know that the attention span of readers is only five minutes. I write to be understood, period. www.emiljurado.weebly.com

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WEDNESDAY, AUGUST 15, 2018 mst.daydesk@gmail.com

Makabayan 4 lawyer mulls filing disbarment case vs Topacio

IN BRIEF PNP to adopt new recruitment system

By Rio N. Araja THE lawyer of four former lawmakers on Tuesday threatened to file a disbarment petition against highprofile lawyer Ferdinand Topacio for raising and offering a P1-million bounty for their arrest.

Rachel Pastores, lawyer of Satur Ocampo, Teddy Casiño, National AntiPoverty Commission lead convenor Liza Maza and Rafael Mariano, former Department of Agrarian Reform chief, said she is mulling to file a civil case against Topacio for the damage done to them.

She also questioned the intention of Topacio for stepping into the issue despite his non-involvement in the multiple murder charges filed against the four.

“As a lawyer, he should be responsible in what he is saying. The P1-million bounty he raised had endangered the lives of our clients," she said.

She said Topacio violated the code of professional conduct for lawyers.

“So get ready [for the charges we will file,” she added.

Last Monday, the Nueva Ecija’s Palayan City Regional Trial Court granted the motion for reconsideration of the arrest warrants issued against Ocampo, Casiño, Maza and Mariano, and dismissed the murder charges.

Acting Presiding Judge Trese Wenceslao took over the case after Branch 40 Judge Evelyn Turla inhibited herself due to alleged “pressure.”

Turla had issued warrants to capture the former members of the House of Representatives.

“He [Topacio] was telling he would have the judge investigated. It should be the other way around. We want him investigated,” Pastores said.

“Where is he coming from? He is not even the lawyer of the private complainants, or the lawyer of the witnesses. He does not have any involvement in the charges. He is not a counsel of record. So why meddle?” she said.

Topacio, along with Diego Magpantay of the Citizen Crime Watch had offered the P1-million bounty for the arrest of Ocampo and company, who were charged with a multiple murder case for the deaths of Carlito Bayudang, Jimmy Peralta and Danilo Felipe in 2006.

Meanwhile, Malacañang welcomed the junking of murder charges against Maza, as it wants the official to return to work.

US DONATION. US Ambassador to the Philippines Sung Y. Kim and Philippine Secretary of National Defense Delfin N. Lorenzana join representatives of the Philippine Air Force and the Joint US Military Assistance Group during the launch of the newly transferred Special Airborne Mission Installation and Response system.

Rice ‘tariffication’ bill passed on third reading

By Maricel V. Cruz

V

OTING 200-7-2, the House of Representatives on Tuesday approved on third and final reading a bill which hopes to lower prices of rice by replacing the quantitative import restrictions on rice with tariffs and creating the Rice Competitiveness Enhancement Fund.

The proposed “Revised Agricultural Tariffication Act,” as contained in House Bill 7735, authored by House committee on agriculture and food chairman, Rep. Jose Panganiban Jr., of ANAC IP partylist, aims to protect producers of agricultural products, ensure food security, and make the agricultural sector viable and globally competitive.

Members of the Makabayan Bloc opposed the bill’s passage, saying that the removal of the QR on rice will not improve food security and reduce poverty.

But House deputy majority leader and Camarines Sur Rep. Luis Raymund Villafuerte said the rice tariffication bill was a “win-win” for consumers, farmers.

“In liberalizing the entry of cheaper rice, the rice tariffication bill promises to be a 'win-win' for consumers and farmers alike at this time when Filipinos are reeling from an inflation spike,” Villafuerte said.

He also expressed hopes that the House’s final reading approval of the measure would prompt the Senate to pass its counterpart bill “with a similar sense of urgency.”

“Consumers would benefit from this bill as the lifting of the quantitative restriction on rice imports is expected to slash the retail cost of the staple by as much as P7 per kilo. Much lower rice prices would ease inflation,” Villafuerte a

co-author of the consolidated version that was approved by the House on third and final reading, said.

Villafuerte said rice accounts a big part of ordinary Filipinos' food expenses, which consume most of their income.

HB 7735, based on Committee Report 739 adopted by the House committee on agriculture and food, ways and means appropriations, declares that consistent with the constitutional mandate of protecting Filipino firms against unfair trade, it is the policy of the State to employ antidumping and countervailing measures to protect local producers from unfair trade practices and non-use of quantitative import restrictions.

Moreover, to help the agricultural sector compete globally, the State shall seek to raise farm productivity levels by providing the necessary support services such as irrigation, farm-to-market roads, post harvest equipment and facilities, credit, research and development, extension services, other market infrastructure and market information.

Two firms agree Du30 set to embark on three-day visit to Israel to help revive ‘Bora’ wetlands

By Vito Barcelo

THE Department of Environment and Natural Resources, along with two large companies, will revive two of the nine wetlands in Aklan's Boracay Island.

Secretary Roy Cimatu said the Aboitiz group and the Lopez-owned Energy Development Corp. are joining government efforts to rehabilitate the pollution-challenged Boracay Island by adopting two of its nine wetlands.

Aboitiz Equity Ventures Inc. chief operating officer Sabin Aboitiz and Aboitiz Foundation Inc. head Maribeth Marasigan signed the contract for the adoption of wetland no. 4.

On the other hand, Energy Development Corp. president, and chief operating officer Ricardo Tantoco and senior manager for corporate social responsibility and watershed management Allan Barcena signed on behalf of the company for wetland no. 2.

Cimatu said he is optimistic the partnership with the two private firms could hasten and sustain the rehabilitation of Boracay wetlands.

“It will not be an easy job for government to do it alone, which is why we thank the private sector for agreeing to undertake the task at practically no cost to the government,” he said.

The rehabilitation of the wetlands would be undertaken in phases that are expected to go beyond the island’s scheduled reopening in October.

The closure period would allow the DENR and the adopters to lay the groundwork for the execution of the designs and programs for the rehabilitation, Cimatu said.

Under the partnership, the two companies would be responsible for the design, construction, operation and maintenance of eco-engineered structures and facilities to enhance the ecotourism values of the wetlands.

The DENR would take the lead in clearing the wetlands of illegal structures and relocate affected dwellers accordingly. Rio N. Araja

PRESIDENT Rodrigo Duterte is scheduled to embark on a three-day official visit to Israel on Sept. 2 to 5, the first Filipino leader to set foot on the Holy land, Malacañang on Monday said.

Presidential Spokesman Harry Roque said the President has accepted the invitation of Israel Prime Minister Benjamin Netanyahu to visit the state of Israel.

Duterte will be the first Filipino leader to visit Israel since the Philippines formally established its diplomatic ties with the Jewish nation on Aug. 9, 1957.

The President’s trip to Israel would highlight the “enduring friendship” between Filipinos and Israelis, which began when the late President Manuel Quezon opened the Philippines as a sanctuary to around 1,300 Jewish refu-

gees fleeing the Holocaust.

The Palace spokesperson said Duterte will discuss with Netanyahu the Philippines' intent to bolster cooperation with Israel in several fields, including counter terrorism, and security and law enforcement.

In a press briefing, Roque said the President and Netanyahu will talk common concerns and ways of expanding cooperation in the areas of labor, tourism, trade, agriculture, counter-terrorism, security and law enforcement.

The President will also meet Israeli President euven Rivlin to discuss development cooperation and the close ties between the two countries, Roque said.

The Palace said Duterte would also meet with a group businessmen on the sidelines of the President’s meeting with the Israeli leaders.

He added that Duterte would also meet

the members of the Filipino community in Israel.

Roque said several accords are expected to be signed between the Philippines and Israel.

The Philippines recently acquired Israeli-made arms such as Galil assault rifles and pistols for its 120,000-strong police force, which is at the frontline of Duterte's war against illegal drugs and other crimes.

The Palace official also assured the public that there will be no problem with regards to human rights activists who may try to prevent Duterte from visiting Israel.

Roque added that there will be no problem with Duterte, if human rights activists succeed in persuading Netanyahu to cancel his invitation to the Philippine president.

THE Philippine National Police on Tuesday unveiled a fool-proof system that would prevent the conduct of fraudulent recruitment process arising from influence-peddling among police applicants.

The new recruitment system include Robust Nuero Psychiatric Medical and Dental System which will be applied for new police applicants at the National Capital Region Training Center in Camp Bagong Diwa, Bicutan in Taguig City.

PNP Chief Oscar Albayalde led the ceremonial kickoff of the fool-proof system, a device designed to screen police recruits free from “human intervention” of influence peddlers.

He said RONMEDDS would be the initial phase of the screening process for police recruits to ensure that only individuals with good moral character and the right mindset shall be admitted into the police service by making the recruitment process free from human intervention.

“The rigid screening process aims to make sure that no PNP officials, politicians and other individuals will exert influence to facilitate entry of applicants with obvious character flaws,” Albayalde said. Francisco Tuyay

EMB wants to cancel ECC of 33 quarry firms ENVIRONMENT Management Bureau Region IV-A Director Noemi A. Paranada recommended on Monday the cancellation of all Environmental Compliance Certificates of some 33 companies engaged in quarry operations and related activities in San Mateo and Rodriguez towns in Rizal.

The ECC cancellation covers all quarrying companies, including large scale mining firms such as Viba Quarry and Aggregates and Marketing and Montalban Millex Aggregates Corp.

In an interview, Paranada said her recommendation stemmed from Department of Environment and Natural Resources order for the suspension of all quarrying operations in Rizal on Monday.

Special Assistant to the President Christopher ‘Bong’ Go consulted with DENR Secretary Roy Cimatu regarding the perennial flooding problem in Marikina and other low lying areas in Taytay, Rizal. PNA

NCR needs gyms, rubber boats—Recto SENATOR Ralph Recto on Monday said the massive flooding in Metro Manila exposed the need for gymnasiums and rescue boats as well as no cuts in the budget of the Metro Manila Development Authority.

The recent flooding, he said, exposed disaster response and resilience activities in need of funding.

“One, we need more all-weather rescue boats. This should not be only for local governments. If we are buying frigates which can sail up to Libya, we can certainly afford rescue boats which can fetch stranded people in Marikina,” Recto said.

He said one agency whose relief and rescue capabilities should be strengthened is the MMDA. “General Danny Lim is doing a great job as chairman. Let us give him more funds to build up a stronger rapid-response unit for disasters. If there are seaborne units of the MMDA, esteros and rivers should be cleaned during summer time, that can be into rescue teams during flooding,” Recto said.

“We can begin by stopping the almost P400-million cut in the MMDA budget for 2019. Its area of responsibility is one of the world’s top 20 biggest megapolises,” Recto also said.

Recto was referring to the agency’s proposed national government subsidy of P3.16 billion in 2019, from P3.55 billion this year. Macon Ramos-Araneta

SC clarifies denial of De Lima’s furlough bid to attend hearing

By Rey E. Requejo

ACCUSED. Members of the Aegis Juris fraternity arrive at the Manila City Hall to attend the continuation of the hearing on the case pertaining to the death of the 3rd year UST Law student Atio Castillo at the Manila Regional Trial Court.

THE Supreme Court has justified its decision to deny the appeal of detained Senator Leila de Lima for a furlough to be able to argue for the petition she filed along with opposition senators questioning the constitutionality of President Rodrigo Duterte’s decision to withdraw the country’s membership from the Rome Statute of the International Criminal Court.

In a 16-page resolution, the SC said that they could not find “circumstances and competencies” that would make De Lima the only person capable to defend the petition of the minority senators against the Duterte administration’s decision to withdraw the country’s membership from the Rome Statute.

“It is true that not all of her co-petitioners are lawyers who are equipped with technical competence to argue before courts. Still, it does not appear clearly to this Court why Senator De Lima—and no one else-must argue for their petition,” stated the SC resolution released Tuesday.

De Lima, together with Senators Fran-

cis ‘Kiko’ Pangilinan, Franklin Drilon, Bam Aquino, Antonio Trillanes IV, Leila de Lima and Riza Hontiveros, have petitioned the high court to nullify the Presiddent’s unilateral act of withdrawing from the ICC. In their petition, the opposition lawmakers argued that the country’s withdrawal from the Rome Statute “cannot be justified under the so-called ‘residual powers’ of the President.”

The petitioners also insisted that the Constitution mandated the Senate to ratify a treaty or an international agreement, and as such, the Executive branch cannot just unilaterally repeal a law or withdraw from the treaty of international agreement.

De Lima, who is presently detained at the Philippine National Police Custodial Center, earlier asked the SC to allow her to argue on behalf of her colleagues.

However, the tribunal ruled that De Lima failed to mention an “exclusive competence” that will make her the only one from her co-petitioners to argue on the oral argument set on Aug. 28.

Sports

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WEDNESDAY, AUGUST 15, 2018 sports_mstandard@yahoo.com

Thousands pour in for Asiad

J

AKARTA—Thousands of athletes are flying in as Indonesia makes final preparations to host the Asian Games—the world’s second biggest multi-sports event, taking place against a backdrop of terrorism fears, environmental concerns and logistical headaches.

Organizers are making reassuring noises about their arrangements but Indonesia has never hosted a sports event on this scale, with 16,000 competitors and officials descending on Jakarta and Palembang, a sleepy port city on Sumatra island.

While the Olympics has a slightly higher number of participants, the Asian Games is ahead in terms of complexity: it has 40 sports, including the full Olympic programme and some lesser-known regional favorites.

Olympic heavyweights China will expect to retain their position at the top of the medals table, ahead of Japan and

South Korea—who will march with North Korea at the opening ceremony, and form joint teams in women’s basketball, canoeing and rowing.

For many of the 45 competing nations, who represent about two-thirds of humanity, the quadrennial event is the pinnacle of the sporting calendar, offering a chance for medals which remain elusive at Olympic level.

However, Saturday’s opening ceremony comes just three months after Indonesia suffered its deadliest terror attack in more than 10 years, when suicide bombers killed 13 people in the nation’s

second-biggest city, Surabaya.

Indonesia’s notorious haze from forest fires is another concern, while organisers are hoping to mitigate Jakarta’s grinding traffic with dedicated lanes, banning odd and even licence plate numbers on alternate days and closing schools.

Son, sun and eSports Minor hiccups abound, from misspelt signs to a clumsy attempt to hide a foul-smelling, toxic waterway running past the athletes’ village by covering it with a nylon mesh.

In Palembang, fans angered by a football result ripped up seats at an Asian Games stadium last month, and Indonesia’s first light rapid transit railway has suffered a series of malfunctions in the countdown to the start of competition.

Indonesia agreed to step in as hosts at short notice after Vietnam withdrew in 2014, put off by the eye-wa-

tering projected costs.

Indonesia’s track record is not encouraging: the 2011 Southeast Asian Games in Jakarta and Palembang were plagued by corruption and delays, while two people died in a stadium stampede at the football final.

But this time around, chief organiser Erick Thohir, the savvy businessman who is president of Inter Milan, promises that Indonesia will be able to cope.

“There are no problems for the preparation so far,” Thohir said last week. “Even if we have problems we will solve them right there, right then.”

Among the bigger names, Tottenham Hotspur forward Son Heung-min looks set to light up the football competition for South Korea, while Chinese Olympic champion Sun Yang will go for multiple golds in the swimming pool. AFP

Beach Volley Manila leg at SM By The Bay UNIVERSITY of Santo Tomas standout Sisi Rondina will unveil a new partner in rising star Babylove Barbon as the Beach Volleyball Republic on Tour Manila Open reels off on Friday at Sands SM By The Bay. Rondina and Barbon, who will try to power the Tigresses their third consecutive UAAP beach volleyball crown next month, will be among the 16 women’s pairs that will vie for the P20,000 prize.

Rondina won a BVR leg last year with Jinggay Bangad as her partner in Currimao, Ilocos Norte, while Barbon emerged as the BVR Queen of the Sands last month.

Also tipped to contend in the threeday tournament are Dzi Gervacio and Bea Tan of Perlas.

Incidentally, Rondina and Gervacio were teammates in the FIVB Beach World Tour 1-Star Manila Open last May, as the two sand court veterans made it to the quarterfinals, the highest among the four Philippine pairs.

Also competing in the women’s division are National University’s Klymince Orilleneda and Antonnete Landicho, UST 2’s Gen Eslapor and MJ Ebro, Far Eastern University’s Ivana Agudo and Marianne Calinawan, FEU 2’s Sheena Gallentes and Jamaica Pascua, University of Perpetual Help System Dalta’s Princess Deana Estanislao and Janine Padue, University of the East’s Manalo and Ritual, College of Saint Benilde’s Felicia Cui and Kaila Mendoza, Air Force’s Anna Abanto and Jennifer Manzano, University of the Philippines’ Jessma Ramos and Justine Dorog, and UP 2’s Abi Goc and Mikee Osorio.

Completing the cast are Rizal Technological University’s Macie Candido and Jona Mae De Lima, Kempal’s Roma Doromal and Jasmine Nabor, Adamson’s Hannah Nicole Infante and Gracelchen Ave, and Ateneo’s Jules Samonte and Ponggay Gaston.

Indonesian dancers perform to celebrate the country’s upcoming independence day on August 17 and to welcome the 2018 Asian Games in Jakarta. AFP

ABS-CBN, Garena partner for Globe Conquerors ANOTHER major eSports event will soon be watched on ABS-CBN S+A as ABS-CBN Sports and Garena come together for the “2018 Globe Conquerors Manila” League of Legends tournament this August.

Fans of the popular multiplayer online video game can witness the best teams in Southeast Asia battle for pride and prize when the tournament goes live from the Mall of Asia Arena on ABS-CBN S+A for the semifinals and finals this Saturday and Sunday.

Garena is exclusive operator of top tier games in Southeast Asia and a leading advocate of eSports in the region. For this tournament, it brought eight teams from the Philippines, Singapore, Malaysia, Indonesia, and Thailand who have already started battling it out in the preliminaries happening at the Sofitel Philippine

Plaza Manila until Friday.

S+A’s coverage on Saturday start at 10 a.m. for the opening ceremonies of the semifinals. The semifinals will be a best of five series between the Group A toppers and Group B 2nd placer in the morning, while the second seed of Group A faces the top seed of Group B in the afternoon. Viewers can also catch the celebrity showmatch featuring popular gamer, musician, and cosplayer Ashley Gosiengfiao, comedian Empoy Marquez, and James Reid’s brother, Jack, among other personalities.

On Sunday, the victors in the semifinals will figure in another best of five series at 2 p.m. for the right to book a trip to the 2018 League of Legends World Championships in South Korea as the Southeast Asian representative.

There will also be band performances

for those who will troop to the venue while it will be hardcore battles for those tuning in to S+A. eSports has been a rising phenomenon all over the world, especially in the last few years, where events such as the League of Legends World Championship can draw over 30 million viewers to rival traditional sports.

S+A, which also previously aired a major DOTA 2 event, is committed to helping strengthen the local gaming community and promote eSports as a legit and competitive sporting event.

For more information and stories, visit ABS-CBN’s sports hub sports. abs-cbn.com, and follow their official social media accounts on Facebook and Twitter (@ABSCBNSports).

For updates, follow @ABSCBNPR on Facebook, Instagram, and Twitter or visit www.abscbnpr.com.

TM Sports: Improving young booters’ lives through sports FOOTBALL hardly caught the fancy of Filipinos until recently, when the country’s national team figured prominently in international competitions.

While the growing interest in the sport didn’t come as a surprise, the amount of talent that can be mined, especially among the youth, did.

These talents didn’t come exclusively from Metro Manila.

The countryside and other cities outside Metro Manila have become a pool for rising sports stars, with the children providing their parents with the hope of a better future by doing well in school and sports.

Globe Telecom, through its grassroots program TM Sports Para Sa Bayan (TMSPSB), nurtures young football talents like 13-year-old Stephannie Ann Logustua and 12-year-old Elijah Zedric Ballesteros. The program empowers students to continue training for the sport they love and equips them with lessons that they will carry through life.

“We want to give underprivileged youth an avenue to reach their dreams while enjoying the positive benefits of sports. Through TMSPSB, we hope to make a difference in their lives by providing them with opportunities to train locally and internationally and be recognized for their efforts,” Globe Chief Sustainability Officer and Senior Vice President for Corporate Communications Yoly Crisanto said.

Logustua and Ballesteros made it to the top of the TMSPSB nationwide search for 12 promising Filipino youth football players who were given a chance to undergo training in Kuala Lumpur and Barcelona through Globe in partner-

ship with Astro Kasih of Malaysia.

From the initial roster of 600 applicants coming from 50 different communities across the country, 10 made it to the five-day training in Kuala Lumpur last year where they joined the rest of the players from Singapore and Malaysia. The list was further trimmed down to the lucky 4 who were sent to train in Barcelona through FCB Escola, the flagship FC Barcelona school in March 2018.

In recognition of the exemplary performance of Logustua and Ballesteros in Malaysia and Barcelona, both were given full scholarships by Colegio de San Jose Recoletos in San Carlos City.

“Malaking pasasalamat sa Globe at dahil sa programa nila nagka chance si Steph na makapagtrain sa Malaysia and Barcelona. Once in a lifetime experience talaga ito na kahit sa panaginip namin ng Daddy niya ay hindi namin kayang matupad—ang maipadala siya sa ibang bansa. Si Steph ay isang good example sa football team at sa mga bata sa school niya. Narecognize din siya ng mayor namin. Sana po ay maexperience din ng ibang bata ang naexperience ni Steph,” said Stephanie’s mother, Yvonne, who expressed pride over her daughter’s accomplishments.

Logustua not only excels in football but also in academics where she has recently been elected class president. She also pursues other activities like dancing and futsal. She is part of a dance group in her school and also placed first runnerup in futsal.

On the other hand, the math-loving Zedric is part of the Knights of the Altar and a journalism club. At Grade 7, Ballesteros was elected vice president in his class.

Four of the most outstanding TM SPSB players from San Carlos City are shown here, namely (from left) Stephannie Ann Logastua, Adrian Jupiter Juanillo, Elijah Zedric Ballesteros, Steve Lawrence Nieves.

3 majors...

From A8

keep doing what I’m doing, keep plugging away, kind of hide behind closed doors sometimes, which is nice—kind of the way I’d like to keep it.”

Unfortunately, that doesn’t jibe with his avowed aim of piling up more tournament titles—majors included.

A 15-week enforced absence after wrist surgery earlier this year only served to show him just how much he missed competing.

“I missed the preparation. I miss

competing,” Koepka said. “I’ve got to be competing at something. It doesn’t matter what it is.”

Adding to a sense of isolation, Dustin Johnson, Bubba Watson and Phil Mickelson were the only tour colleagues who reached out to him during his absence.

“You make a lot of friends out here, and you feel like a lot of them, you just get forgotten,” Koepka said.

It’s a long way from the camaraderie he experienced as he toiled on the European Challenge Tour, building his resume after failing to earn his PGA Tour card through qualifying school after turning pro in 2012.

UP, Benilde tossers clash in vital game Games today

9 a.m. – National U vs La Salle (men’s) 11 a.m. – FEU vs Arellano (men’s) 1 p.m. – St. Benilde vs UP (men’s) 4 p.m. – UP vs St. Benilde (women’s) 6 p.m. – San Beda vs UST (men’s)

UNIVERSITY of the Philippines and St. Benilde try to recover from setbacks at each other’s expense as they tangle today (Wednesday) in a crucial lone women’s match in the Premier Volleyball League Season 2 Collegiate Conference at the Filoil Flying V Center in San Juan.

The Lady Maroons dropped a sorry defeat to the Far Eastern U side last Sunday, blowing a 2-1 set lead and losing in the decider, 6-15. Though they remained at fourth at 2-2, the loss enabled St. Benilde and idle San Beda U to stay in the hunt for the last semifinal berth despite their identical 1-3 slates.

The Taft-based squad is also coming off a loss, bowing to unbeaten UST in three but the Lady Blazers will surely be going flat out to topple the Lady Maroons and fuel their own Final Four drive in the mid-season conference of the league organized by Sports Vision and backed by Mikasa and Asics.

That should make their 4 p.m. match worth watching with Isa Molde, Marian Buitre, Anne Magsarile, Aieshalaine Gannaban, Lorielyn Bernardo and Ma. Arielle Estranero vowing to raise the level of their games in anticipation of the Lady Blazers’ strong challenge.

UP is also hoping to sustain its rollercoaster start that saw the Lady Maroons go win-loss-win-loss in their first four matches.

But the Lady Blazers are so focused on this particular game that would keep them or out of the semis race. Marites Pablo, ranked fourth in scoring, is also expected to come out strong along with Klarisa Abriam, Arianne Daguil, Anne Umali and Michelle Gamit.

UST (5-0), Adamson (4-0) and Far Eastern U (4-1) are cinch to clinch the first three semis seats with the last spot a toss-up among UP, St. Benilde and San Beda with Perpetual Help (14) hoping to keep its flickering hopes with a sweep of its last three matches and hope that the three other contenders won’t go over three wins.

Meanwhile, semifinalists National U and UST seek to extend their win run to six as they take La Salle and San Beda, respectively, in men’s action. The Bulldogs take on the Archers (1-4) at 9 a.m. while the Tigers square off with the Red Spikers at 6 p.m.

Patriots seek 2nd home win Games Wednesday

(Olivarez College Gymnasium) 7 p.m. – Pampanga vs Batangas 9 p.m. – Parañaque vs Caloocan

PARAÑAQUE shoots for its second home win when it hosts Caloocan in tonight’s main game of the MPBL Datu Cup at the Olivarez College Gymnasium.

Game time is 9 p.m. right after the match between Pampanga and Batangas City at 7 p.m.

The F2 Logistics-backed Patriots won their first home game against the Cebu Sharks, 81-73, and they’re looking to give their local folks something to cheer about against the struggling Supremos sponsored

by Longrich.

Parañaque is also coming off a 7369 win over Pasay last Aug. 4 and a win over Caloocan will put the Patriots in the company of the Zamboanga Valientes-Family’s Brand Sardines and the Makati Skyscrapers with a 4-2 winloss slate.

But the Patriots will be facing a team that is likely going to play with a sense of urgency.

The Supremos had lost their last two games, dropping them at 2-3 and coach John Kallos and his troops don’t want to prolong their agony and need to arrest an alarming skid with a victory in tonight’s game.

LOTTO RESULTS

6/55 00-00-00-00-00-00 P0 M+ 6/45 00-00-00-00-00-00 P0 M 4 DIGITS 0-0-0-0 3 DIGITS 0-0-0 2 EZ2 0-0

Sports

Riera U. Mallari, Editor Reuel Vidal, Assistant Editor sports@thestandard.com.ph sports_mstandard@yahoo.com

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WEDNESDAY, AUGUST 15, 2018

Perpetual weathers JRU rally Games tomorrow

(Filoil Flying V Centre) 10 a.m.- MU vs UPHSD (jrs) 12 noon- SSCR vs SBU (jrs) 2 p.m.- MU vs UPSD (srs) 4 p.m.- SSCR vs SBU (srs)

THE University of Perpetual Help Altas weathered a late rally and needed two triples from rookie Jielo Razon to pull off a 78-72 triumph over the Jose Rizal University Heavy Bombers yesterday at the FilOil-Flying Sports Center in the San Juan.

With the count tied at 72-all, Razon unloaded his treys in the last 1:13 and 38 seconds, sending the Altas to their fourth win in six games in the 94th National Collegiate Athletic Association men’s basketball tournament.

“Wala kaming easy win. Lahat puro close wins. But a win is a win,” said Altas coach Frankie Lim. With Edgar Charcos making a game-high 25 points, the Altas moved to third spot next to the Letran Knights.

Earlier, College of St. Benilde leaned on JJ Domingo’s season-best effort of 22 points and smothered Emilio Aguinaldo College, 84-71, for its third win against four defeats.

In the junior division, the La Salle Greenhills Greenies struck hard in the first half behind efforts from RC Calimag, Inand Fornilos and Kobe Palencia to put away the EAC-ICA Brigadiers, 103-71.

Fornilos led with 26 points and 14 rebounds for the Greenies, who moved to the solo lead with their 7-1 win-loss slate.

Calimag had 12 points with Joshua David, including seven in the first period as the Greenies quickly took control, 25-14, while Fornilos and Palencia combined for 12 points to lead LSGH to a 49-34 halftime spread.

Jose Rizal University, behind John Amores and Gab Baluyot, outplayed the UPHSD Junior Altas, 84-72.

This had the JRU Light Bombers improving to third at 5-3, while the Junior Altas fell behind at 4-3.

The Altas will try extend their winning streak to three on Thursday when they meet the Mapua Cardinals at 2 p.m. Peter Atencio

6 North Luzon teams join NBA 3X PH Finals THE National Basketball Association officially tipped off NBA 3X Philippines 2018 presented by AXA with the firstever qualifiers in North Luzon at Benguet State University on Aug. 11 and 12.

Now on its eighth consecutive year, NBA 3X is staging two preliminary tournaments with the succeeding competition set at the Don Bosco Technical Institute Makati on Aug. 18 and 19 to provide more male and female players an opportunity to participate in the 3-on-3 tournament.

A total of 100 teams from Apayao, Dagupan, Baguio, Benguet and other nearby provinces, including entries from Caloocan City in Metro Manila, competed in the North Luzon qualifiers. Six teams advanced to NBA 3X Playoffs and will compete with teams advancing from the Metro Manila division qualifiers at the Mall of Asia Music Hall on Aug. 25 and 26.

Rieken Espinosa, Dreyxius Castillo, Kyle Patrick Margarata, and Adam Floyd Darden of Team Greyhounds topped the U13 Division, while Jaudenes Parone, Dennis de Vera, Manson Lee Carantes and Francis Almazan of Team SLUA topped the Under-16 division. The other winning teams for the boy’s division were Team Caloocan Supremos C (Under-18) composed of Ryan Ricasio, Raphael Jerhold Flores, Mark Francois Sapla, and Jino Lacsa); and Team UL-Dagupan City A (Open Category) made up of Mario Angelito Torio, Reynald Ballesteros, Robert Caasi Jr. and Julius Tiburcio.

In the women’s category, Regimay Castres, Rosemarie Delos Santos, Jane de Vera, and Fionna Kixsha Camangeg of Team Balon Dagupan topped the Under-18 division while Ruthlaine Chlaire Tacula, Raechelle Ann Sao, Ryzelle Ann Limet, and Love Joy Sto. Domingo of Team Pudtol Apayao bested the Open Category. In addition, various media outlets from Baguio City formed teams to compete at the Celebrity Division.

President Rodrigo Roa Duterte interacts with the athletes of the Philippine delegation to the 18th Asian Games as he leads the ceremonial send-off at the Rizal Hall of Malacañan Palace. The Philippine delegation is set to compete in Indonesia on Aug. 18 to Sept. 2. With them are Sec. Bong Go of the Office of the Special Assistant to the President, Philippine Sports Commission Commissioner Charles Maxey and Philippine Olympic Committee President Victorico Vargas.

Clarkson gets NBA nod to play for PH quintet

By Peter Atencio

T

HE NBA on Tuesday finally gave its green light allowing Cleveland Cavaliers’ shooting guard Jordan Clarkson play for the the Philippine Team in the 2018 Asian Games.

The announcement was made by the Richard Gomez, the Philippines’ Chef de Mission to the quadrennial meet.

“The NBA gave the nod allowing JC to plat at the AG. We will have to plead to INASGOC (Indonesia Asian Games Organizing Committee) for his reentry to play. JC will take the earliest flight available to Jakarta to make to our game against Kazakhstan,” said Gomez.

The request of the Samahang Basketball ng Pilipinas to have Clarkson play for the Philippine team was initially turned down by the league as the Asian Games was not included in the NBA’s agreement with world governing body FIBA that allows NBA players to take part in the Olympics, the FIBA World Cup and continental cup competitions.

Following the suspension of 10 players and two coaches as a penalty for its participation in a brawl with the Australia Boomers during a July 1 FIBA World Cup Basketball Qualifier at the Philippine Arena, the Philippines had originally withdrawn from the Asiad men’s basketball tournament.

But pressure from fans had the SBP making a U-turn, hastily assembling a team built around the nucleus of professional team Rain or Shine and including Clarkson in the 12-man roster.

The INASGOC allowed the inclusion of the Fil-American and the SBP was also able to get the approval of Clarkson’s Cleveland team, but the NBA turned down the request, only to relent yesterday following criticism from SBP officials, who raised questions on why Zhou Qi of Houston Rockets is included in China’s roster to the Asiad.

NBA players were also cleared to play in the Pan American Games, like Canada’s Andrew Nicholson in 2015.

The Philippine national team, which left for Indonesia Sunday, is bracketed with China and Kazakhstan in Group D. They will face Kazakhstan on Thursday.

A 2014 second-round draftee of the Washington Wizards, Clarkson has an NBA career average of 14.1 points, 3.2 rebounds and 2.8 assists, most of them during a spell at the Los Angeles Lakers.

3 majors and Koepka still ain’t satisfied LOS ANGELES—Even when hoisting a US Open or PGA Championship trophy, Brooks Koepka is careful to keep a chip balanced on his shoulder -- even if it’s just a small one.

“I always try to find something where I feel like I’m the underdog and put that little chip on my shoulder,” Koepka says. “Even if you’re number one, you’ve got to find a way to keep going and keep that little chip on.

“I think I’ve done a good job of that. I need to continue doing that, because once you’re satisfied, you’re only going to go downhill.

“You try to find something to get better and better, and that’s what I’m trying to do.”

The 28-year-old American joined one of golf’s most select fraternities with his second straight US Open triumph at Shinnecock Hills in June, becoming just the seventh player to win back-toback US Opens and the first since Curtis Strange in 1988-89.

Koepka proved his triumph at wideopen Erin Hills was no fluke, grinding to

victory at one-over par on a brutal Shinnecock course that sent Tiger Woods and Jordan Spieth, among others, packing early.

Then for good measure, Koepka captured his third career major title on Sunday at the PGA Championship, outdueling Woods and Adam Scott down the stretch at Bellerive Country Club to shoot the lowest 72-hole score in tournament history, 16-under par 264.

Koepka displayed his trademark composure under pressure, unwavering and confident in his shotmaking with two birdies in the last four holes to secure the victory.

Overlooked going into the US Open after missing the Masters with a left wrist injury, Koepka had been all but written off at Shinnecock after flirting with the cut line when he was seven-over par during the second round.

Not that Koepka cared about that.

“I always feel like I’m overlooked,” he said. “It doesn’t bug me. I just kind of Turn to A7

Juvic rejoins rivals as PH Golf Tour starts

BACOLOD—Juvic Pagunsan hopes to make the most of his rare stint on the Philippine Golf Tour, eager to mark his comeback with a victory on the very course where he nurtured his game and won the Philippine Amateur crown in 2006.

The smooth-swinging ace, who has made the Japan PGA Tour his base the last few years, is on a break from the lucrative circuit and on the roster of the P3.5 million ICTSI Negros Occidental Classic, which gets going today (Wednesday) at the Negros Occidental Golf and Country Club course.

Pagunsan last saw action in The Country Club Invitational last year, losing to Miguel Tabuena by one in a thrilling final round duel. He last won in 2015 in the Aboitiz Invitational, beating Thai Nirun Sae-ueng by eight at Manila Southwoods.

Despite his long absence on the ICTSI-sponsored local circuit, which he also dominated in its early staging, the former Asian Tour Order of Merit champion, who hails from nearby Murcia town, is expected to crowd the big guns and tour veterans for top honors this week.

PH’s 3x3 basketball gets boost THE process of selecting talented players who can be part of the national men’s 3x3 team has started.

And it begins by registering tournaments and players who dabble in the sport.

Businessman sportsman Ronald Mascariñas said this as he led efforts to boost 3x3, in partnership with the Samahang Basketbol ng Pilipinas.

“3x3 basketball has always been close to our hearts. Dito tayo lahat natuto at nagsimulang maglaro ng basketball,” said Mascarinas, who is the president of Bounty Agro Ventures Inc., during press conference yesterday at the Bar One Restaurant of the Holiday Inn Ortigas.

Kobe Paras, who has joined world 3x3 events twice, will be back as the first official member of the national squad. A talent search will now be focused on three new members of the team who will join him.

The players who will be selected must be part of the regular basketball team when chosen.

For the past few months, Mascarinas has been very vocal in forming a full-time national team. The sports patron believes 3x3 basketball is a starting to point to this dream.

“This is the foundation of basketball in the Philippines,” added Macarinas.

The Philippines is currently ranked no. 43 in the world, and this can improve if players and tournaments on 3x3 will be registered with FIBA. And if the Philippines, makes it to the Top 8, it can join the 2020 Tokyo Olympics.

SBP executive director Sonny Barrios said the FIBA has encouraged the Philippines to take the lead role in promoting 3x3 in the past.

“The FIBA has always reminded our SBP chairman emeritus Manny V. Pangilinan that we should take the lead role in Asia regarding 3x3,” said Barrios.

He added that there is no shortage of tournaments, since 3x3 is played everywhere. Peter Atencio

He drew a late tee-time of 11:30 a.m. on No. 1 in the company of Jama Reyes and Japanese Yu Ikeda but is nevertheless tipped to flash his local knowledge of the tree-lined, hazard-laden course.

But the stellar international field is unfazed by his presence with young Justin Quiban all focused on nailing a second straight diadem in the circuit organized by Pilipinas Golf Tournaments, Inc. after dominating the field in the Bacolod Golf Challenge last week.

“I hope I can do it back-to-back,” said the 22-yearold shotmaker, who beat veteran and multi-titled Jay Bayron by five at the Binitin layout. “I know I can measure up with the best and I’m in good shape.”

He tees at 7:10 a.m., also on No. 1, with Albin Engino and James Ryan Lam. Meanwhile, American Lexus Keoninh served notice of his title bid as he led his team composed of amateurs Santino Tabora, Nicolo Torre and Angelo Uichico to the pro-am crown with an 18-under 52, edging Engino’s team of Tess Mendell, Ma. Fe BeneJuvic Pagunsan hopes to deliver at home dicto and Jhay Broad by one.

Business

Ray S. Eñano, Editor Roderick T. dela Cruz, Assistant Editor business@manilastandard.net extrastory2000@gmail.com WEDNESDAY, AUGUST 15, 2018

B1

By Jenniffer B. Austria

Ayala, Aboitiz conglomerates team up to bid for ID project

By Darwin G. Amojelar

T

HE Ayala and Aboitiz groups are teaming up with Unisys Philippines to bid for the national identification system project.

Ayala Corp.’s AC Infrastructure Holdings Corp., Aboitiz group’s Aboitiz InfraCapital Inc. and Unisys Philippines submitted an unsolicited offer to the government to develop a national ID system.

Ayala Corp. said in a disclosure to the stock exchange the consortium submitted the proposal to the Philippine Statistics Authority on Aug. 13.

The proposal involves the design and development of a national identity infrastructure solution which would collect, store, maintain, manage and authenticate identity information of individuals.

“The 17-year proposal provides an expedient, comprehensive and long-term solution that will enable the government to realize the full potential of its strategic programs by providing a safe and secure identification and benefits payment mechanism for individuals transacting with government,” Ayala Corp. said.

The consortium’s proposal came after President Rodrigo Duterte signed into law The Philippine System Identification Act (PhilSys Act), which ordered the government to create a single official ID card for all Filipinos and resident aliens in the country.

The Budget Department said the national ID system would promote seamless delivery of

service, improve the efficiency, transparency and targeted delivery of public and social services and enhance administrative governance.

The national ID system is expected to reduce corruption, curtail bureaucratic red tape, avert fraudulent transactions and misrepresentations, strengthen financial inclusion and promote ease of doing business.

Under the law, every Filipino and resident alien of the country will be identified through the use of a unique and permanent PhilSys Number which is randomly generated. It will serve as the standard number assigned to each individual to be incorporated in all identification systems of government agencies.

Currently, the most harmonized identification system that the Philippines has is the Unified Multi-purpose ID or UMID, which is issued to the members of the Social Security System, Government Service Insurance System, Philippine Health Insurance Corp. and the Home Development Mutual Fund (Pag-IBIG Fund).

The UMID, however, covers less than 20 percent of the population since the start of its implementation and enrollment process in 2010.

The government allocated P2 billion for the implementation of national ID system this year.

IN BRIEF

DoubleDragon’s earnings jump 234% DOUBLEDRAGON Properties Corp. said first-half consolidated net income surged 234 percent to P1.26 billion from P376.40 million in the same period last year, lifted by a significant growth in recurring revenues.

The property developer said in a disclosure to the stock exchange consolidated revenues rose 198.9 percent in the six-month period to P1.41 billion.

Recurring revenues accounted for 39 percent of the first half sales, up from 29 percent in the same period last year .

The company said it was one track to hit its goal of becoming a 90-percent recurring revenue company by 2020, as it aims to have 1.2 million square meters of leasable space over the next two years.

DoubleDragon said in the second quarter, net income went up by 143.7 percent to P513.5 million from P210.7 million a year ago “The reason why we are so fixated in hitting our 1.2 million square meter leasable target by 2020 is because the math is simple. With 1.2 million square meters of leasable space, yielding say an average of P750 per square meter per month by that time, this should give the company total annual recurring revenues of P10.8 Billion. This rental income practically translates to about 90% Ebitda margin,” DoubleDragon chairman Edgar Sia II said. Jenniffer B. Austria

EastWest’s income fell 11% in first half EAST West Banking Corp., the 12th largest lender in terms of assets, said net income in the first half declined 11 percent to P2.2 billion from a year ago, pulled down mainly by the adverse development on wholly-owned subsidiary EastWest Rural Bank.

EastWest Bank said in a disclosure to the stock exchange net income in the second quarter roe 35 percent and registered a return on assets of 1.4 percent and return on equity of 11.1 percent. It said the numbers kept the bank among the most profitable lenders in the country.

It said excluding the rural bank business, East West’s net income increased 12 percent year-on-year.

“While the rural bank had some issues in the first half of the year, it remains committed to DepEd teachers. EWRB is proud of its contribution to push lending rates to teachers significantly lower and give them access to credit,” EastWest vice chairman Antonio Moncupa Jr. said.

“The bank will continue to strongly advocate not only access and lower rates but equally important, inclusive lending programs and equality among lenders. Our teachers deserve nothing less,” Moncupa said. Julito G. Rada

DoF discovers fake cigarette machines FINANCE Secretary Carlos Dominguez III on Tuesday ordered the Bureau of Internal Revenue and Bureau of Customs to track the source of counterfeit cigarette machines that were allegedly smuggled into the country.

Dominguez instructed officials of the BIR and BoC to trace the manufacturer of the machines and travel to the country of their origin to investigate the illegal entry of the cigarettemaking units via Philippine ports.

“Look for the manufacturers, then file complaints before the concerned embassies there,” Dominguez told BIR commissioner Caesar Dulay and Customs commissioner Isidro Lapeña during an executive committee meeting.

Dominguez issued these directives after the BIR reported that several cigarette-making machines were confiscated in Cagayan de Oro City and were now under the custody of the bureau’s strike team and the Excise Large Taxpayers Field Operations Division.

Dominguez said the machines had no import permits and the manufacturer who used them did not have a permit to operate, making the entire process illegal. Two factories in Cagayan de Oro yielded four unregistered cigarette making machines, six packaging machines and a filter making machine during recent operations also conducted by the BIR strike team. Julito G. Rada

SSI’s income rose 8% in second quarter SSI Group Inc., the country’s largest specialty store retailer, said net income increased 8.1 percent in the second quarter to P150.4 million, as sales grew by double digits despite the decline in store network.

SSI Group said in a disclosure to the stock exchange net sales in the second quarter rose 13.5 percent to P4.7 billion, on the back of a 13.4-percent increase in same-store sales.

“We saw double-digit same store sales growth during the second quarter of the year as our brand portfolio and store network continued to benefit from resilient mid and high-end discretionary spending and we expect that margins will continue to firm up as the year progresses” said SSI president Anthony Huang.

The group’s store network included 616 stores covering 124,333 square meters as of endJune, a 7.1-percent year-on-year decline as the company continued to rationalize its operations.

The company opened four stores in the second quarter covering 475 sqm and closed 14 stores covering 2,717 sqm.

The strong second-quarter performance boosted the company’s first-half net income to P283.3 million, up 3.4 percent year-on-year. Jenniffer B. Austria

TELEPERFORMANCE-LAZADA DEAL. Teleperformance Philippines signs an agreement with online shopping platform Lazada to implement a rewards program in which successful BPO applicants get exclusive Lazada shopping vouchers they can use for their personal purchases. Signing the agreement are (from left) Teleperformance Philippines vice president for recruitment George Dy, managing director Travis Coates, Lazada E-Services Philippines chief marketing officer Tristan de Belloyand and vice president for offline marketing Mila Jimenez.

Finance says 7% growth still possible in 2018

By Julito G. Rada

THE Finance Department said Tuesday achieving the economic growth target of 7 percent to 8 percent this year remains possible as long as the government works harder.

Finance Undersecretary Gil Beltran, who also serves as the department’s chief economist, said a 30-percent to 40-percent increase in capital formation in the third and fourth quarters would put the economy on track to hit the target.

“We need a growth rate of 7.7

percent to be able to achieve 7 percent [the lower limit of the target range], and we achieved that before… It’s not new. When was that… in 2013 and before that we also achieved it under the GMA administration,” Beltran said.

“So it’s not new… We have to push capital formation further because during those years that we achieved 7.7-percent, 7.8-percent growth, we had a 30to 40-percent increase in capital outlays, capital formation. Right now we are about 20 percent, so we will need to work harder,”

Jollibee’s first-half profit rose 16% to P4b

Beltran said.

He said while the growth rate in the first semester looked disappointing, there was a “silver lining” in the growth performance and one of that was capital formation.

“It’s more than 20 percent and because of that, we believe that in the future quarters we will be able to perform better because once the factories and the machines that were purchased in the second quarter will be operational, we expect that the growth will accelerate in the future quarters,” Beltran said.

RESTAURANT chain operator Jollibee Foods Corp. said Tuesday net income grew 15 percent in the second quarter to P2.25 billion from a year ago on higher earnings from foreign and local businesses.

The profit brought total earnings to P4.05 billion in the first half, up 16 percent from P3.48 billion in the same period last year.

Jollibee said in a disclosure to the stock exchange that system-wide sales, a measure of all sales to consumers both from company-owned and franchised stores, rose 26.8 percent in the second quarter to P53.93 billion from a year ago, driven by store network growth, continued strong same-store sales growth and the consolidation of US chain Smashburger.

System-wide sales also climbed 23.2 percent in the first half to P99.91 billion.

Philippine brands reported a 15.8-percent growth in system-wide sales in the second quarter from new stores which added 7.8 percent and continued strong same-store sales which grew by 8 percent.

The foreign business reported a 71-percent increase in system-wide sales in the second quarter, with China growing by 17.4 percent; Europe, Middle East and Asia with SuperFoods by 46.1 percent; and North America by 195.6 percent following the consolidation of Smashburger on April 17.

B2

Business

WEDNESDAY, AUGUST 15, 2018 extrastory2000@gmail.com

Stocks fall further; DMCI tumbles T HE stock market extended its slump Tuesday on fears the Bangko Sentral ng Pilipinas will further tighten its monetary policy to rein in inflation and its secondround effects.

The Philippine Stock Exchange Index tumbled 107.49 points, or 1.4 percent, to 7,527.78 on a value turnover of P5.3 billion. Losers overwhelmed gainers, 141 to 60, with 41 issues unchanged.

Faster inflation compelled the Bangko Sentral to raise the policy interest rate by 50 basis points to 4 percent on Aug. 9.

Bankgo Sentral ng Pilipinas Gov. Nestor Espenilla Jr. last week said

“favorable conditions arising from sustained domestic growth also suggest that the economy can accommodate a further tightening of monetary policy settings.”

“We believe that this is not the end of BSP’s tightening as the immediate objective to anchor inflation expectations would need further action since inflation is yet to peak and would remain elevated for the rest of the year and early 2019,” ING Bank Manila senior economist Joey Cuyegkeng added.

Bank of the Philippine Islands, the third-biggest lender in terms of assets, lost 3.2 percent to P92.40, while sister unit Globe Telecom Inc., the secondlargest telecommunications firm, fell 3.1 percent to P1,860.

Casino operator Bloomberry Resorts Corp. declined 4 percent to P10.04, while DMCI Holdings Inc., which is into

coal mining, power generation, property, construction and water distribution lost 3.5 percent to P11.50.

Turkey’s lira, meanwhile edged up with other emerging market currencies in Asian trade Tuesday while equities also enjoyed a bounce after the previous day’s turmoil.

Investors slowly edged back into buying mode but they are keeping a nervous eye on developments in Ankara after Monday’s bloodletting that saw the lira hit record lows against the dollar and euro, and equity markets go into free-fall on concerns Turkey’s financial crisis could spread globally.

On equity markets, Tokyo ended 2.3 percent higher as the safe-haven yen eased against the dollar, providing some support to exporters.

Sydney added 0.8 percent and Seoul was 0.5 percent higher, with Wellington,

Mumbai and Taipei also posting healthy gains. Singapore was flat.

But Shanghai ended 0.2 percent lower and Hong Kong slipped 0.8 percent in the afternoon.

In Asia, the Turkish unit was at 6.60 to the dollar and 7.49 to the euro, well off the 7.24 to the dollar and 8.12 to the euro seen Monday but still uncomfortably high. The unit is down about a fifth against the greenback since Friday.

Fears about contagion in other economies, particularly emerging markets, sparked a sell-off across the board Monday but there were healthy recoveries in Asian business.

The Russian ruble, which lost two percent Monday, jumped 1.7 percent, while the South African rand was 2.2 percent higher, having lost seven percent a day earlier. The Mexican peso was up 1.8 percent. With AFP

MANILA STANDARD BUSINESS DAILY STOCKS REVIEW TUESDAY, AUGUST 14, 2018

VALUE

NET FOREIGN BUYING/(SELLING), PHP

FINANCIALS 59.75 4,590 92.4 1,487,380 2.6 221,000 127 817,740 1.8 793,000 32.8 49,200 6.63 600 16.4 10,400 14.42 332,000 3.83 180,000 1.54 2,000 810 240 0.56 101,000 73.8 1,638,440 1 1,218,000 11.58 100,000 45.35 153,300 196.5 250 29.25 43,700 199 105,160 1,811 35 83.8 2,280

274,077 137,885,438 574,670 103,900,042 1,398,720 1,621,335 3,980 170,614 4,785,432 682,990 3,080 194,700 55,050 121,838,060.50 1,235,130 1,168,414 6,994,895 49,125 1,291,565 20,907,129 64,595 191,064

266,937 -104,814,523.50 2,600 -57,205,553 -639,210 1,455,282 -48,578,109.50 -6,628,540 -240,960 -2,745,932 -18,436

35 15.88 0.73 1.18 0.235 3.31 14.66 39 20.2 49.8 69.05 1.78 7.52 10.24 15.62 10.46 7.26 7 15.86 63.2 26.6 7.3 13.42 2.23 265 4.93 3.07 13 25.4 12.94 18.28 354.2 0.18 6.89 2.2 4.11 8.87 5.03 7.55 1.17 11.74 56.2 6.24 4.76 2.4 3.22 1.7 13.1 79 5.2 0.126 1.03 135 2.55 2.37 1.46

INDUSTRIAL 35.65 393,100 16 1,085,200 1.05 47,693,000 1.18 254,000 0.235 1,840,000 3.32 1,951,000 14.66 436,900 40 303,600 20.8 18,200 49.8 2,100 75.7 520 1.81 18,000 7.8 1,000 10.26 815,600 15.8 1,421,500 10.5 29,200 7.27 105,100 7 9,924,200 15.9 705,400 63.2 23,700 26.7 45,100 7.3 310,300 13.52 416,600 2.35 2,811,000 273.4 394,990 5.05 157,400 3.07 3,000 13.52 6,300 25.6 1,282,200 13 623,100 18.3 2,390,000 354.4 107,800 0.18 110,000 6.89 11,000 2.2 103,000 4.11 190,000 8.91 682,700 5.18 181,100 7.95 88,700 1.18 2,120,000 11.9 46,600 56.7 213,230 6.24 5,100 4.79 12,000 2.59 12,137,000 3.22 24,000 1.75 451,000 13.1 10,000 79 538,660 5.2 223,600 0.126 100,000 1.05 67,000 135.2 647,000 2.55 5,000 2.44 4,965,000 1.48 1,994,000

13,943,775 17,334,130 43,777,540 302,050 433,240 6,518,310 6,406,454 12,105,280 374,370 104,590 39,322.50 32,360 7,583 8,358,812 22,419,872 306,308 763,182 69,470,449 11,221,698 1,499,642 1,206,030 2,291,034 5,670,346 6,446,590 107,028,324 776,694 9,290 82,954 32,842,470 8,157,750 43,788,890 38,224,850 19,800 75,893 227,470 792,350 6,084,816 931,363 676,112 2,521,230 552,746 12,117,104 31,906 57,150 32,596,160 77,380 787,450 131,540 42,773,041 1,164,749 12,600 69,490 87,677,598 12,750 11,962,790 2,945,300

-1,924,780 5,825,278 -72,450 -2,370 -780,340 -2,962,704 -69,720 1,258,672 19,142,134 -79,182 -37,043,384 5,310,654 -802,674.50 -1,547,951 986,172 37,950 -7,288,004 -3,573,295 2,870,206 -36,988,534 -12,574,082 -150,160 -268,430 113,287.00 -600,000 -1,247,531 -3,140 52,360 -588,250 16,100 -25,786,260 -36,661,327 12,750 -299,930 -179,170

0.305 58.45 12.44 0.98 6.1 32.4 1.42 1.42 950 6.1 11.92 954.5 6.7 55.5 0.6 4.36 17.86 0.64 4.88 3.38 0.037 1.38 2.81 2.84 142.9 933 1.59 456 258.6 0.33 0.22

0.27 57.35 12.08 0.96 6 31.1 1.26 1.26 935.5 6 11.36 922 6.03 52.7 0.57 4.26 17.52 0.61 4.78 3.38 0.037 1.3 2.7 2.84 140.6 918 1.55 410 256.4 0.315 0.208

HOLDING FIRMS 0.295 53,120,000 57.6 770,090 12.38 4,696,100 0.96 3,000 6.1 26,600 31.95 84,600 1.41 98,182,000 1.38 20,564,000 937 252,400 6.03 1,806,200 11.5 8,900,600 954.5 132,500 6.28 6,600 53.5 1,713,420 0.6 448,000 4.27 278,000 17.52 3,423,600 0.62 7,161,000 4.78 14,397,000 3.38 2,000 0.037 5,100,000 1.38 3,074,000 2.78 695,000 2.84 1,000 142 367,120 926 208,570 1.55 173,000 428 300 256.4 40 0.32 6,180,000 0.22 270,000

15,170,500 44,374,439.50 57,684,408 2,920 161,455 2,679,580 130,767,140 27,274,560 237,176,915 10,906,073 102,685,204 123,536,230 42,175 92,038,162 259,340 1,191,970 60,195,658 4,454,390 69,107,580 6,760 188,700 4,167,810 1,900,150 2,840 51,988,430 193,347,655 270,080 129,420 10,284 1,981,750 56,520

-204,750 -6,009,997.50 -30,063,998 134,455 316,865 6,706,250 -95,477,580 140,368 -7,225,504 -52,574,730 -34,930,633 31,230.00 -25,640.00 -47,417,622 315,000 -3,425,900 -74,000 -39,000 295,800 -2,745,559 -81,674,225 -

7.9 1.04 13.9 2 0.73 41.1 3.12 4.67 0.47 0.94 1.05 0.212 0.395 9.98 26.9 0.59 1.48 1.21 1.51 4.9 0.63 0.465 0.52 3.6 20.85 2

7.73 1 13.2 1.98 0.71 40.35 3.09 4.59 0.445 0.93 1.01 0.207 0.395 9.85 26.2 0.59 1.46 1.2 1.46 4.81 0.6 0.45 0.5 3.54 20.25 1.97

10,491,076 5,195,760 94,734 45,800 215,840 406,394,465 2,752,660 8,450,370 7,770,250 40,360 696,710 586,150 11,850 1,256,628 9,996,585 33,630 7,573,560 458,570 9,164,350 54,636,550 34,338,680 525,950 1,164,350 3,199,100 29,491,065 494,120

-258,246 824,000 -56,597,905 -2,285,270 -3,678,760 4,500 -203,800 -104,000 -59,400 1,657,270 -143,710 774,330 -5,372,940 359,930 45,500 -43,380 -468,780 -13,614,900 139,880

NAME

OPEN

HIGH

LOW

CLOSE

ASIA UNITED BANK PH ISLANDS BDO LEASING BDO UNIBANK BRIGHT KINDLE CHINABANK CITYSTATE BANK COL FINANCIAL EAST WEST BANK FERRONOUX HLDG IREMIT MANULIFE MEDCO HLDG METROBANK NTL REINSURANCE PB BANK PHIL NATL BANK PHIL STOCK EXCH RCBC SECURITY BANK SUN LIFE UNION BANK

59.1 95.2 2.67 127.8 1.84 33.1 6.63 16.48 14.4 3.8 1.54 825 0.55 75.95 1 11.76 46.8 196.5 29.8 199 1,859 83.8

59.75 95.2 2.67 128.1 1.84 33.1 6.64 16.48 14.58 3.87 1.54 825 0.56 75.95 1.03 11.76 46.8 196.5 29.85 199.1 1,860 83.8

59.1 92 2.56 126.1 1.72 32.8 6.63 16.4 14.36 3.73 1.54 810 0.54 73.8 0.99 11.58 45.35 196.5 29.25 198.4 1,811 83.8

ABOITIZ POWER AGRINURTURE ALLIANCE SELECT ALSONS CONS BASIC ENERGY CEMEX HLDG CENTURY FOOD CIRTEK HLDG CNTRL AZUCARERA CONCEPCION CONCRETE A CROWN ASIA DEL MONTE DNL INDUS EAGLE CEMENT EEI CORP EMPERADOR ENERGY DEVT FIRST GEN FIRST PHIL HLDG GINEBRA HOLCIM INTEGRATED MICR IONICS JOLLIBEE LMG CHEMICALS MABUHAY VINYL MACAY HLDG MANILA WATER MAXS GROUP MEGAWIDE MERALCO MG HLDG PANASONIC PEPSI COLA PETROENERGY PETRON PHIL H2O PHINMA PHINMA ENERGY PHX PETROLEUM PILIPINAS SHELL PRYCE CORP RFM CORP ROXAS AND CO ROXAS HLDG SFA SEMICON SHAKEYS PIZZA SMC FOODANDBEV SPC POWER SWIFT FOODS TKC METALS UNIV ROBINA VICTORIAS VITARICH VULCAN INDL

35 15.88 0.76 1.2 0.237 3.34 14.72 40.05 20.9 49.8 75.75 1.78 7.87 10.24 15.76 10.5 7.26 7 15.92 63.35 27.9 7.42 13.44 2.31 270.2 4.95 3.15 13.98 26.3 13.38 18.34 355 0.18 6.91 2.21 4.2 8.93 5.34 7.91 1.2 11.74 56.7 6.3 4.76 2.8 3.23 1.7 13.22 79.95 5.2 0.126 1.03 139.1 2.55 2.47 1.48

35.75 16.02 1.05 1.22 0.24 3.39 14.88 40.05 20.9 49.9 75.75 1.82 7.87 10.3 15.8 10.5 7.28 7.01 15.96 63.4 27.9 7.45 13.78 2.35 273.4 5.05 3.15 13.98 26.3 13.42 18.38 355.2 0.18 6.91 2.24 4.2 8.99 5.34 7.95 1.2 11.9 57 6.3 4.79 2.91 3.23 1.78 13.22 80 5.23 0.126 1.05 139.9 2.55 2.47 1.5

ABACORE CAPITAL ABOITIZ EQUITY ALLIANCE GLOBAL ANGLO PHIL HLDG ANSCOR ASIABEST GROUP ATN HLDG A ATN HLDG B AYALA CORP COSCO CAPITAL DMCI HLDG GT CAPITAL HOUSE OF INV JG SUMMIT LODESTAR LOPEZ HLDG LT GROUP MABUHAY HLDG METRO PAC INV MJC INVESTMENTS PACIFICA PRIME MEDIA PRIME ORION REPUBLIC GLASS SAN MIGUEL CORP SM INVESTMENTS SOLID GROUP SYNERGY GRID TOP FRONTIER WELLEX INDUS ZEUS HLDG

0.27 57.85 12.3 0.98 6 31.3 1.33 1.34 950 6.09 11.92 950 6.7 55.5 0.6 4.36 17.76 0.64 4.88 3.38 0.037 1.31 2.81 2.84 142.9 933 1.59 456 258.6 0.32 0.209

8990 HLDG A BROWN ANCHOR LAND ARANETA PROP ARTHALAND CORP AYALA LAND BELLE CORP CEB LANDMASTERS CENTURY PROP CITY AND LAND CITYLAND DEVT CROWN EQUITIES CYBER BAY DM WENCESLAO DOUBLEDRAGON EMPIRE EAST FILINVEST LAND GLOBAL ESTATE IRC PROP MEGAWORLD MRC ALLIED PHIL ESTATES PHIL REALTY PRIMEX CORP ROBINSONS LAND ROCKWELL

7.9 1.04 13.2 2 0.71 41 3.12 4.59 0.47 0.93 1.03 0.208 0.395 9.98 26.9 0.59 1.48 1.2 1.5 4.9 0.63 0.465 0.52 3.6 20.85 1.99

VOLUME

OPEN

HIGH

LOW

CLOSE

VOLUME

VALUE

NET FOREIGN BUYING/(SELLING), PHP

SHANG PROP SM PRIME HLDG STA LUCIA LAND STARMALLS VISTA LAND

3.17 37.2 1.13 7.26 6.04

3.22 37.3 1.15 7.45 6.04

3.16 36.1 1.13 7.26 6

3.17 36.35 1.15 7.33 6

226,000 7,606,500 1,377,000 461,800 7,815,400

716,540 276,801,950 1,559,010 3,404,001 47,002,177

3,160 -177,100,720 -84,890 2,900,645

2GO GROUP ABS CBN ACESITE HOTEL APC GROUP APOLLO GLOBAL ASIAN TERMINALS BERJAYA BLOOMBERRY BOULEVARD HLDG CEBU AIR CENTRO ESCOLAR CHELSEA DFNN INC DISCOVERY WORLD EASYCALL FAR EASTERN U GLOBE TELECOM GMA NETWORK GOLDEN BRIA HARBOR STAR IMPERIAL INTL CONTAINER IPEOPLE IPM HLDG ISLAND INFO ISM COMM JACKSTONES LBC EXPRESS LEISURE AND RES LORENZO SHIPPNG MACROASIA MANILA BULLETIN MANILA JOCKEY MELCO RESORTS METRO RETAIL METROALLIANCE A METROALLIANCE B NOW CORP PACIFIC ONLINE PAL HLDG PAXYS PHIL RACING PHIL SEVEN CORP PHILWEB PLDT PREMIUM LEISURE PRMIERE HORIZON PUREGOLD ROBINSONS RTL SBS PHIL CORP SSI GROUP STI HLDG TRANSPACIFIC BR TRAVELLERS WATERFRONT WILCON DEPOT

14.1 24.8 1.47 0.47 0.045 13.58 4.89 10.42 0.061 70 8.43 6.78 8.8 2.29 27 901 1,918 5.4 322 3.87 2.08 88 12.3 7.85 0.128 2.9 3.52 14.7 3.96 1.06 20.75 0.45 5.3 7.2 2.79 2.21 2.06 8.52 10.64 8.6 3.75 8.13 110 5.25 1,352 0.91 0.385 45.85 85 8.24 2.27 1.06 0.71 5.03 0.79 11.8

14.3 24.95 1.47 0.47 0.045 13.58 5.15 10.42 0.061 70.1 8.43 6.78 9.05 2.29 27 901 1,919 5.44 329 3.87 2.08 89.5 12.3 7.85 0.128 2.96 3.63 14.7 4 1.06 21 0.45 5.3 7.2 2.79 2.21 2.19 8.81 10.92 8.6 3.75 8.13 111 5.28 1,380 0.91 0.395 45.85 85 8.39 2.38 1.07 0.71 5.08 0.8 11.82

14 24.6 1.43 0.46 0.044 13.02 4.89 10.04 0.058 69.7 8.43 6.65 8.45 2.2 25 900 1,801 5.38 320 3.76 2.07 87.1 12.3 7.85 0.125 2.83 3.47 14.6 3.96 1.02 20.15 0.43 5.01 7 2.75 2.1 2.06 8.3 10.5 8.54 3.72 8.1 110 5.2 1,350 0.89 0.375 43.85 82 8.2 2.22 1.02 0.66 5.02 0.77 11.68

SERVICES 14.26 24.8 1.43 0.465 0.044 13.08 5.1 10.04 0.06 70 8.43 6.65 8.9 2.2 26 900 1,860 5.42 320 3.76 2.07 89.5 12.3 7.85 0.127 2.91 3.63 14.6 3.99 1.05 20.15 0.43 5.2 7 2.76 2.18 2.19 8.4 10.68 8.54 3.72 8.12 110 5.28 1,364 0.9 0.385 44 82.75 8.39 2.31 1.04 0.68 5.05 0.77 11.7

2,200 33,600 22,000 5,630,000 5,200,000 247,700 161,000 8,903,800 25,850,000 121,530 100 1,738,300 945,600 18,000 100,900 30 102,250 89,000 7,910 1,984,000 9,000 548,320 18,100 15,000 2,120,000 3,810,000 53,000 23,700 390,000 705,000 2,174,000 500,000 121,400 3,277,500 719,000 171,000 5,000 4,095,500 35,100 19,600 4,000 129,100 18,100 219,800 47,540 3,513,000 1,560,000 3,137,000 650,310 19,500 11,182,000 1,604,000 80,732,000 406,800 2,361,000 612,600

31,174 834,075 31,540 2,619,650 229,900 3,240,150 817,380 90,292,328 1,512,900 8,504,017 843 11,619,442 8,331,410 40,860 2,623,780 27,010 190,439,180 480,956 2,540,796 7,509,820 18,660 48,354,614 222,630 117,750 267,590 11,000,060 187,690 346,030 1,550,060 733,200 44,424,410 219,000 631,837 23,025,191 1,985,500 364,870 10,430 35,026,846 371,872 168,476 14,910 1,046,600 1,991,170 1,145,033 64,551,805 3,156,060 605,700 138,434,010 53,917,986.50 161,209 25,632,830 1,684,300 54,913,730 2,054,263 1,852,430 7,203,898

14,260 -2,940 -34,286,612 -17,600 -5,263,412.50 -6,046,407 -17,650 32,060 -27,010 -85,105,940 -977,808 793,010 2,472,739.50 2,520 -14,400 -187,300 -568,755 -6,067,907 879,430 -191,077 -1,092 34,400 3,750 319,015 -8,988,195 190,420 -85,796,045 -8,430,160 21,508.00 -5,131,070 -1,071,720 778,680 -91,216 76,270 -1,360,570

103,500 5,346,790 219,400 317,340 25,980 2,254,240 18,000 97,575 58,839,900 150,950 198,920 37,120 8,300 41,500 497,330 14,163,190 608,980 107,930 4,842,810 6,540,800 308,300 573,460 2,334,540 71,309,062 95,649,845

-14,220 -92,640 -21,200 -25,980 -31,894,030 37,120 2,088,390 -32,400 224,000 -6,000 -748,430 2,830,978 -61,280,355

NAME

MS

PROPERTY 7.77 1 13.84 1.98 0.73 40.45 3.09 4.67 0.455 0.94 1.01 0.207 0.395 9.89 26.7 0.59 1.47 1.2 1.5 4.85 0.61 0.45 0.51 3.59 20.5 1.98

1,337,300 5,137,000 7,100 23,000 300,000 9,994,300 888,000 1,820,000 17,160,000 43,000 680,000 2,820,000 30,000 127,000 375,800 57,000 5,167,000 382,000 6,189,000 11,256,000 55,998,000 1,150,000 2,279,000 898,000 1,442,200 250,000

ABRA MINING APEX MINING ATLAS MINING ATOK BENGUET B CENTURY PEAK COAL ASIA HLDG DIZON MINES FERRONICKEL GEOGRACE LEPANTO A LEPANTO B MANILA MINING A MANILA MINING B MARCVENTURES NICKEL ASIA NIHAO OMICO CORP ORNTL PENINSULA ORNTL PETROL A PHILODRILL PHINMA PETRO PX MINING PXP ENERGY SEMIRARA MINING

0.0025 1.6 3.71 20.9 1.45 1.98 0.3 7.39 2 0.209 0.126 0.128 0.0083 0.0083 1.52 4.69 1.16 0.55 1.2 0.012 0.011 3.15 4.29 15.6 31.9

0.0026 1.6 3.8 21.2 1.45 2 0.3 7.39 2.02 0.213 0.126 0.128 0.0083 0.0083 1.52 4.79 1.17 0.55 1.2 0.013 0.012 3.17 4.29 15.7 31.9

0.0025 1.55 3.7 20.5 1.41 1.97 0.3 7.2 1.99 0.203 0.122 0.128 0.0083 0.0083 1.5 4.52 1.1 0.54 1.12 0.012 0.011 3.12 4.24 14.7 31.05

MINING & OIL 0.0026 41,000,000 1.55 3,413,000 3.8 59,000 21.2 15,200 1.45 18,000 2 1,138,000 0.3 60,000 7.3 13,500 1.99 29,423,000 0.203 730,000 0.123 1,600,000 0.128 290,000 0.0083 1,000,000 0.0083 5,000,000 1.5 329,000 4.7 3,045,000 1.13 546,000 0.54 199,000 1.12 4,185,000 0.013 503,200,000 0.012 26,100,000 3.12 182,000 4.25 548,000 14.8 4,765,000 31.3 3,055,300

ABS HLDG PDR DD PREF GLO PREF P GMA HLDG PDR GTCAP PREF A HOUSE PREF A LR PREF PNX PREF 3B SMC FB PREF 2 SMC PREF 2B SMC PREF 2C SMC PREF 2D SMC PREF 2E SMC PREF 2H SMC PREF 2I

25 101 500 5.25 970 101 1.04 106.5 1,000 77.5 79.95 75 75.4 75.5 75.4

25.5 101 509.5 5.25 975 101 1.04 106.5 1,000 77.5 79.95 75 75.4 75.5 75.4

25 101 500 5.25 970 101 1.04 106 1,000 76 79.95 75 75.4 75.5 75.4

PREFERRED 25.1 152,300 101 30 509.5 300 5.25 24,100 975 110 101 3,340 1.04 90,000 106 10,000 1,000 60 76 2,410 79.95 7,520 75 8,600 75.4 1,300 75.5 1,000 75.4 590

3,821,765 3,030 151,450 126,525 106,750 337,340 93,600 1,060,550 60,000 183,415 601,224 645,000 98,020 75,500 44,486

2,900,825 -126,525 -

LR WARRANT

2.36

2.36

2.3

WARRANTS 2.36 81,000

188,730

-

5,265,443 132,830 4,414,020

202,800 -215,380

2,702,660

-136,200

257,934.20

-

ITALPINAS MAKATI FINANCE XURPAS

5.15 3.02 3.11

5.16 3.1 3.11

5.06 3.01 3.04

FIRST METRO ETF

114

114

112.5

USD DMPL A1

10.16

TRADING SUMMARY FINANCIAL

10.2

SHARES 9,704,800

INDUSTRIAL

136,540,504

HOLDING FIRMS

237,630,996

PROPERTY

151,851,029

SERVICES

176,607,057

MINING & OIL

630,070,380

GRAND TOTAL

1,344,949,624

10.16

5.07 3.01 3.04

SME

1,034,700 44,000 1,441,000

EXCHANGE TRADED FUNDS 112.5 23,910 10.2

DDS

25,370

VALUE 1,801.89 (DOWN) 30.77 684,264,045.94 FINANCIAL INDUSTRIAL 10,950.44 (DOWN) 49.31 1,185,178,254.932 HOLDING FIRMS 7,409.36 (DOWN) 96.33 1,331,111,328.98 PROPERTY 3,705.64 (DOWN) 72.62 SERVICES 1,504.67 (DOWN) 16.80 966,777,316.23 MINING & OIL 10,058.91 (DOWN) 183.57 863,541,670.673 PSEI 7,527.78 (DOWN) 107.49 264,612,020.183 All Shares Index 4,578.92 (DOWN) 53.61 5,308,003,594.74 Gainers: 60; Losers: 141; Unchanged: 41; Total: 242

First Gen’s net income surges 35% to $115m

By Alena Mae S. Flores

FIRST Gen Corp., a member of the Lopez Group, posted $115 million (P5.9 billion) in recurring net income attributable to equity holders of the parent in the first six months of 2018, up 35 percent from $88 million (P4.5 billion) year-on-year.

First Gen said in a disclosure to the Philippine Stock Exchange Tuesday earnings from natural gas power plants jumped 45 percent to $488 million (P4.4 billion) from a year ago level.

“The gas portfolio thrived during this period, especially San Gabriel and Avion that have been able to achieve remarkable turnarounds this year as they delivered much needed power to the grid,” First Gen president and chief operating officer Francis Giles Puno said.

First Gen said the solid showing from the 97-MW Avion peaking plant and the 420-MW San Gabriel flexible station as well as savings in the interest expenses offset unrealized foreign exchange losses and the renewable energy businesses’ lower earnings during the period.

First Gen’s consolidated revenues from the sale of electricity increased $85 million or 10 percent to $939 million (P48.4 billion) from $854 million (P42.6 billion)on year.

Natural gas plants account for $599 million (P30.9 billion) or 64 percent of First Gen’s total consolidated revenues. Natural gas revenues rose 22 percent in the first half mainly due to the higher volume sales and spot market prices.

“San Gabriel shifts to being a contracted provider of electricity to Meralco (Manila Electric Co.) allowing it to achieve stable earnings. This contract proves the price competitiveness of natural gas-fired power versus coalfired power even at busload and more so at mid-merit levels of dispatch,” Puno said.

Energy Development Corp.’s geothermal, wind and solar revenues accounted for $291 million (P15 billion), or 31 percent of total consolidated revenues.

DMCI increased six-month profit by 21% to P9.2b

By Jenniffer B. Austria DMCI Holdings Inc. of the Consunji family booked a net profit of P9.2 billion in the first six months of 2018, up 21 percent from P7.6 billion yearon-year, fueled by higher contributions from its coal mining, real estate, construction, nickel mining and water businesses.

The January-June profit was boosted by one-time gain from the sale of property by its real estate unit worth P715 million.

Minus the extraordinary gains, the group’s core net income grew 10 percent in the first half of the year to P8.6 billion from a year ago.

DMCI Holdings said in a disclosure to the stock exchange consolidated revenues from the January-to-June period reached P44.2 billion, up 19 percent from P37.1 billion a year ago.

The holding firm posted P5 billion in profits in the second quarter, up 38 percent from P3.6 billion year-on-year.

Consolidated revenues in the same period surged 31 percent to P23.9 billion from P18.3 billion.

“All of our businesses fared well except for our power subsidiaries. The unplanned and prolonged outages of Sem-Calaca Power Corporation and Southwest Luzon Power Generation Corporation cut into the profitability of Semirara Mining and Power Corporation (SMPC),” said DMCI Holdings chairman and president Isidro Consunji.

“DMCI Power continues to implement a lower provisional tariff for its Aborlan power plant because its motion for recomputation is still under review with the Energy Regulatory Commission (ERC),” he added.

Semirara posted a three percent increase in the first-half net income to P4.6 billion on higher sales and prices.

Net income contribution of affiliate Maynilad Water Services Inc. rose 16 percent to P1 billion from P877 million a year ago, on the back of a 3.4-percent rise in billed volume and 2.8-percent inflationary tariff adjustment.

World

B3

WEDNESDAY, AUGUST 15, 2018 CESAR BARRIOQUINTO, Editor mst.daydesk@gmail.com

‘Queen of Soul’ Aretha is gravely ill

CRASH. Police officers stand on duty at a cordon near the Houses of Parliament following an incident where a car crashed into the barriers in central London on August 14, 2018. A number of pedestrians were injured when the car crashed outside Britain’s Houses of Parliament, with police swooping in to arrest the driver. AFP

President of Taiwan makes rare US speech L

OS ANGELES―Taiwan’s president has given a speech in the United States―the first time in 15 years that a leader of the island has spoken publicly on American soil― in a move likely to anger Beijing.

During a stopover en route to Paraguay, Tsai Ing-wen, whose government refuses to endorse Beijing’s view that Taiwan is part of China, vowed to defend democratic values.

“We will keep our pledge that we are willing to jointly promote regional stability and peace under the principles of national interests, freedom and democracy,” she said on Monday.

China views Taiwan as part of its own territory―to be reunified by force if necessary―even though the two sides split in 1949 after a civil war.

Beijing is always swift to condemn any move that could be interpreted as de facto diplomatic recognition of the government in Taipei and has stepped up the pressure on Taiwan since Tsai, of the independence-leaning Democratic Progressive Party (DPP), came to power in 2016.

Tsai made her speech at the Ronald Reagan Presidential Library, whose namesake she

praised for his contribution to Taiwan-US relations, including a commitment not to pressure Taipei to negotiate with Beijing.

Her transit in Los Angeles was the most high-profile since former Taiwan president Chen Shui-bian’s 2003 stopover in New York, where he accepted a human rights award and delivered several public speeches.

Washington switched diplomatic recognition to Beijing from Taipei in 1979, but it remains the island’s biggest arms supplier and most important unofficial ally.

Ties have warmed further since Donald Trump came to power, and were further bolstered by the passage this week of the National Defense Authorization Act, which includes a commitment to military support of Taiwan.

Last month, the US sent two warships into the Taiwan Strait.

That followed a string of military drills staged by Beijing around the island. AFP

IN BRIEF

Manila

Standard

IN THE MATTER OF THE APPLICATION FOR THE APPROVAL OF THE SALE OF VARIOUS SUBTRANSMISSION LINES/ASSETS OF THE NATIONAL TRANSMISSION CORPORATION (TRANSCO) TO ISABELA II ELECTRIC COOPERATIVE, INC. (ISELCO II), AS COVERED BY AN AMENDED LEASE PURCHASE AGREEMENT (LPA) DATED 20 MAY 2015,

14.

With the above changes, the subject sub-transmission assets were valued at Ninety Three Million Seventy Thousand Five Hundred Twenty Nine and 25/100, Philippine currency (PhP93,070,529.25), net of adjustments and deductions, as per the Sinclair Knight Merz (SKM) valuation (Annex “K”) pursuant to ERC Resolution No. 01, Series of 2009, as Amended.

15.

However, the Honorable Commission issued a Decision dated 23 March 2015 under ERC Case No. 2014-086 MC, entitled “In the Matter of the Petition for Approval of the Reclassification of the National Transmission Corporation (TRANSCO),s 69 kV GamuNaguilian Sub-transmission Asset to Full Transmission Asset,” the dispositive portion of which reads, as follows:

ERC CASE NO. 2018-005 RC

NATIONAL TRANSMISSION CORPORATION (TRANSCO) AND ISABELA II ELECTRIC COOPERATIVE, INC. (ISELCO II), Applicants. x - -- - - - - - - - - - - - - - - - - - - - - - - - ------x

WHEREFORE, the foregoing premises considered, the application filed by the Green Future Innovations, Inc. (GFII) for the approval of the reclassification of the 69 kV GamuNaguilian sub-transmission asset to full transmission asset is hereby APPROVED. Further, the Commission, motu propio, resolves to reclassify the other subtransmission assets; the Santiago-Cauayan 69 kV line, the Cauayan-Reina Mercedes 69 kV line and the NaguilianReina Mercedes 69 kV are hereby reclassified as transmission assets.

NOTICE OF PUBLIC HEARING TO ALL INTERESTED PARTIES: Notice is hereby given that on 25 January 2018, National Transmission Corporation (TRANSCO) and Isabela II Electric Cooperative, Inc. (ISELCO II) filed an Application dated 24 November 2017 (Application) for the sale ofvarious subtransmission lines/assets of TRANSCO to ISELCO II, as covered by an amended Lease Purchase Agreement (LP A).

SO ORDERED.” 16.

With the reclassification of the Gamu-Naguilian line segment, only the portion from Upi to Ilagan of the Naguilian-GamuIlagan 69kV line originally included in the Amended Lease Purchase Agreement retains its classification as a subtransmission asset.

17.

Thus, from the original length of 14.85 km. for the NaguilianGamu-Ilagan 69kV line valued at PhPg,029,977.86, the portion corresponding to the segment from Upi to Ilagan Substation has now been reduced to 5.903 km. with the present value of Three Million Five Hundred Eighty Nine Thousand Four Hundred Ninety Two and 21/100, Philippine currency (PhP 3,589,492.21).

18.

By way of adherence to the above-cited Decision, TRANSCO and ISELCO II executed on 20 October 2017 a Second Amendment to the Lease Purchase Agreement (Annex “L”)

19.

The contract price is now pegged at Eighty Seven Million Six Hundred Thirty Thousand Forty Three and 60/100, Philipine currency (PhP87,630,043.60), plus 12% VAT for the following subtransmission assets:

TRANSCO and ISELCO II alleged the following In their Application: 1.

2.

3.

4.

5.

6.

TRANSCO is a government-owned and controlled corporation created and existing by virtue of R.A. No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPlRA), with principal office address at the TRANSCO Main Building, Quezon Avenue corner BIR Road, Diliman, Quezon City.

ISELCO II is an electric cooperative (EC) duly organized and existing under the laws of the Republic of the Philippines, with principal office address at the Government Center, Alibagu, Ilagan, Isabela, Philippines.

By virtue of Section 8 of the EPIRA, TRANSCO assumed the electrical transmission functions of the National Power Corporation, and the responsibility of the latter for the planning, construction and centralized operation and maintenance of high voltage transmission facilities, including grid interconnections and ancillary services.

Section 8 of the EPIRA and Rule 6, Section 8(e) of its Implementing Rules and Regulations (IRR) also mandate the segregation of the transmission and sub-transmission functions and assets for transparency and disposal, and authorize TRANSCO to negotiate for, and to transfer such subtransmission assets (STAs) and facilities to qualified distribution utilities (DUs).

Pursuant thereto, this Honorable Commission promulgated the “Guidelines on the Sale and Transfer of the TRANSCO’s Subtransmission Assets and the Franchising of Qualified Consortiums” (ERC Guidelines) dated 17 October 2003, as amended by ERC Resolution NO.3, Series of 2005 dated 17 March 2005 which set forth among others, the standards to distinguish TRANSCO’s transmission assets from its subtransmission assets and establish the approval process prior to the final sale and transfer of STAs to DUs. Consistent with the ERC Guidelines, TRANSCO adopted its own Guidelines on the Sale of Sub-transmission Assets (“TRANSCO Guidelines”) [Annex “A”] as approved by TRANSCO Board Resolution No. TC-2003-067 dated 28 November 2003 [Annex “A-1”], as further amended by TRANSCO Board Resolution No.TC-2004-009 dated 16 March 2004 [Annex “A-2”].

7.

On 16 July 2011, this Honorable Commission issued Resolution No. 15, Series of 2011 entitled “A Resolution Adopting the Amended Rules for the Approval of the Sale and Transfer of TRANSCO’s Subtransmission Assets and the Acquisition by Qualified Consortiums.”

8.

In accordance with the aforesaid ERC Guidelines, and based on a thorough evaluation conducted by TRANSCO, it was determined that the following are sub-transmission assets: a. b. c. d.

Tap Gamu-Roxas 69 kVIine; Tuguegarao-Cabagan 69 kV line; Naguilian-Gamu-Ilagan 69 kVline; and, llagan substation.

Copies of the Report on the Nature of the Assets, List of STAs for Sale to ISELCO II and the Single Line Diagram are , attached as Annexes “B”, “c” and “D,” respectively.

9.

TRANSCO has clearly established that ISELCO II meets the financial and technical capability criteria under Article IV of the ERC Guidelines in acquiring, operating, maintaining, upgrading and expanding the said STAs. Attached are copies of the Financial Qualification Evaluation [Annex “E”] Technical Qualification Evaluation [Annex “F”] and Audited Financial Statements of ISELCO II as of 31 December 2012 and 31 December 2013 [Annex “G”].

10.

ISELCO II is the only qualified EC that is directly connected to the subject assets, as evidenced by the attached List of Connected Distribution Utilities [Annex “H”].

11.

On 15 February 2013, the ISELCO II Board of Directors issued Resolution No. 2013-016 [Annex “1”] relative to the desired acquisition.

12.

On 29 March 2011, TRANSCO and ISELCO II concluded a Lease Purchase Agreement [Annex “J”] covering the subject subtransmission assets amounting to Ninety Eight Million Six Hundred Forty Six Thousand Seven Hundred Fifty Two and Seventy Five Centavos, Philippine Currency (PhP98,646,752.75), plus interest thereon, which ISELCO II shall pay in two hundred forty (240) equal monthly installments.

13.

she was “with close friends and family, resting.”

“I’ve been speaking with her family members,” Cassimy said during a newscast. “They have not only asked for prayers during this time, but they have also asked for their privacy.”

Robert Smith, the current pastor at the New Bethel Baptist Church in Detroit where Franklin’s father was the reverend, told AFP that Franklin’s representatives asked him Monday to “keep praying for her.”

“Everybody’s fearful,” Smith said. “I really don’t know what it would be like not to have her.”

Artists from across the musical spectrum offered well wishes to the legendary singer who has lived in Detroit―the Motor City, home of Motown―most of her life. AFP

interest thereon, pursuant to the Bureau of Internal Revenue’s Memorandum Circular No. 66-2013 dated 30 September 2013, and Revenue Regulation No. 04-2007 dated 07 February 2007, respectively.

Republic of the Philippines

San Miguel Avenue, Pasig City

40 children killed in Yemen strike

SANAA―Forty children were among 51 people killed in a Saudi-led coalition air strike on a bus in rebel-held northern Yemen, the Red Cross said in a new toll Tuesday.

Fifty-six children were also among the 79 people wounded in the Thursday strike on Saada province, a rebel stronghold that borders Saudi Arabia, the International Committee of the Red Cross said.

The new casualty toll came after a mass funeral was held for many of the dead children on Monday at which thousands vented anger against Riyadh and Washington.

Mourners raised pictures of the children and shouted slogans against Saudi Arabia and its ally and key arms supplier, the United States.

The Saudi-led coalition intervened in Yemen in March 2015 as Huthi rebel fighters closed in on the last bastion of President Abedrabbo Mansour Hadi’s government.

The conflict has killed nearly 10,000 people since then, the vast majority of them civilians, and caused the world’s worst humanitarian crisis, according to the United Nations.

The UN Security Council called on Friday for a “credible” investigation into the deadly strike. AFP

Hall of Fame in 1987. In 2010, Rolling Stone magazine put her at the top of its list of the 100 greatest singers of all time, male or female.

Franklin’s declining health was first disclosed on the Showbiz 411 website late Sunday by Roger Friedman, a reporter and family friend. He wrote that she was “gravely ill in Detroit. The family is asking for prayers and privacy.”

Local media later confirmed Franklin’s illness. The Detroit News reported that she was in hospice care, citing two sources close to the singer and national radio host Tom Joyner, a Franklin friend.

Evrod Cassimy, a local television journalist for WDIV who also described himself as a friend of the singer, said he spoke with the legend Monday morning and

TODAY ENERGY REGULATORY COMMISSION

Hong Kong activist attacks Beijing

HONG KONG―Hong Kong independence activist Andy Chan attacked China as an empire trying to “annex” and “destroy” the city in a no-holds barred speech Tuesday at the city’s press club that Beijing wanted canceled.

In comments that will incense Chinese authorities, Chan, who leads the tiny Hong Kong National Party, said Beijing was semi-autonomous Hong Kong’s “colonial master”.

“We are a nation that is quickly being annexed and destroyed by China,” Chan told a packed Foreign Correspondents’ Club.

He said he had been under increased “surveillance” by groups of people he did not know, who had been following him and knocking on his family’s door to take pictures of them in the lead-up to the speech.

Hong Kong enjoys freedom of speech and assembly unseen on the mainland under a handover agreement between Britain and China.

But Beijing has become increasingly intolerant of any mention of independence for Hong Kong as President Xi Jinping emphasizes territorial integrity as key to China’s resurgence.

Rival protesters gathered outside the FCC, with pro-independence activists clashing with police, saying they had been given no space for their rally, while dozens of pro-Beijing supporters chanted slogans including “Gas the spies!” AFP

DETROIT―Music legend Aretha Franklin is gravely ill and reportedly receiving hospice care, friends of the singer said Monday, as prayers and well wishes poured in for the Grammy-winning “Queen of Soul.”

The 76-year-old Franklin― who influenced generations of female singers with unforgettable hits such as “Respect” (1967), “Natural Woman” (1968) and “I Say a Little Prayer” (1968)― is said to be surrounded by her family and friends in Detroit.

Franklin has cemented her place in American music history with her powerful, bell-clear voice that stretched over four octaves. In her decades-long career, her hits spanned the genres, from soul to R&B, gospel and pop.

She was the first woman to be inducted into the Rock and Roll

a. b. c. d.

20.

Tap Gamu-Roxas 69 kVline; Tuguegarao-Cabagan 69 kV line; Upi-Ilagan 69kVline, and, Ilagan substation.

Finally, herein applicants also respectfully submit the following documents in compliance with the Honorable Commission’s requirements: a. b.

Draft of the Deed ofAbsolute Sale [Annex “M”]; and, Franchise Description [Annex “N”].

21.

The proposed sale has satisfied all of the requirements and criteria set by the EPlRA and its IRR, as well as the ERC and TRANSCO Guidelines on the Sale of Subtransmission Assets.

22.

The approval by this Honorable Commission of the instant J oint Application shall pave the way for the attainment of a reformed electricity industry under the EPlRA, which would ultimately best serve the interest of the consuming public.

PRAYER WHEREFORE, it is most respectfully prayed of this Honorable Commission that after due notice and hearing, a DECISION be rendered APPROVING the instant Joint Application for the approval of the sale of TRANSCO’s subtransmission assets in favor of Isabela II Electric Cooperative, Inc. under the terms provided in the Second Amendment of the Lease Purchase Agreement dated 20 May 2015.

Applicants also pray for other just and equitable relief.

On 28 February 2018, the Commission issued an Order and a Notice of Public Hearing setting the case for hearing on 31 May 2018.

On 24 May 2018, Applicant ISELCO II filed an Urgent Motion for Postponement (Motion) dated 20 May 2018. In its Motion, ISELCO II manifested that its witnesses will not be available during the hearing as they have already retired from the cooperative, thus, it prayed that the hearing on 31 May 2018 be reset to a later date.

Finding the said Motion meritorious, the same was granted by the Commission.

Thus, the hearing set on 31 May 2018 was cancelled.

Accordingly, the Commission hereby sets the instant Application for determination of compliance with the jurisdictional requirements, expository presentation, Pre-trial Conference, and presentation of evidence on 13 September 2018 (Thursday) at nine o’clock in the morning (9:00 A.M.) at ISELCO II’s principal office at Brgy.

Alibagu, Dagan, Isabela.

All persons who have an interest in the subject matter of the instant case may become a party by filing with the Commission a verified Petition to Intervene at least five (5) days prior to the initial hearing and subject to the requirements under Rule 9 of the 2006 Rules of Practice and Procedure, indicating therein the docket number and title of the case and stating the following: i.

The petitioner’s name and address;

ii.

The nature of petitioner’s interest in the subject matter of the proceeding and the way and manner in which such interest is affected by the issues involved in the proceeding; and

iii.

A statement of the relief desired.

All other persons who may want their views known to the Commission with respect to the subject matter of the case may file their Opposition or Comment thereon at any stage of the proceeding before Applicants rest their case, subject to the requirements under Rule 9 of the 2006 Rules of Practice and Procedure. No particular form of Opposition or Comment is required, but the document, letter, or writing should contain the following:

On 20 May 2015, TRANSCO and ISELCO II executed an Amended Lease Purchase Agreement [Annex “J-1”] in order to reflect the following changes:

1)

The name and address of such person;

2)

A concise statement of the Opposition or Comment; and

a.

3)

The grounds relied upon.

b.

c.

A reduction of the cost of the Tap Gamu-Roxas 69 kV line, from that of Twelve Million Eight Hundred Thirteen Thousand Five Hundred Twenty Three Pesos and 11/100, Philippine currency (PhP12,813,523.11) to that of Nine Million One Hundred Thirty Four Thousand One Hundred Ninety Four and 73/100, Philippine currency (PhP9,134,194.73) owing to the NGCP-verified decrease of the line segment from that of 31.83 kilometers to that of 18.58 kilometers; An increase in the cost of the Naguilian-Gamu-Ilagan 69 kV line segment, from the amount of Three Million Five Hundred Fifty Seven Thousand Nine Hundred Seventy One and 22/100, Philippine currency (PhP3,557,971.22), to that of Five Million Five Hundred Thousand Nine Hundred Twenty Four Pesos and 59/100, Philippine currency (PhP5,500,924.59) owing to the NGCP-verified increase of the line segment from that of 9.69 kilometers to that of 14.85 kilometers; and,

All such persons who wish to have a copy of the Application may request from Applicants that they be furnished with the same, prior to the date of the initial hearing.

Applicants are hereby directed to furnish all those making such request with copies of the Application and its attachments, subject to the reimbursement of reasonable photocopying costs. Any such person may likewise examine the Application and other pertinent records filed with the Commission during the standard office hours.

WITNESS, the Honorable Chairperson and CEO, AGNES VST DEVANADERA, and the Honorable Commissioners, ALFREDO J. NON, GLORIA VICTORIA C. YAPTARUC, and GERONIMO D. STA. ANA,, Energy Regulatory Commission, this 29th day of May 2018 in Pasig City.

JOSEFINA PATRICIA A. MAGPALE-ASIRIT Oversight Commissioner for Legal

The imposition of a twelve percent value-added tax (12% VAT) on the cost of sub-transmission assets and on the (MS-AUGUST 6 & 15, 2018)

LGUs

Manila

Standard

TODAY

Jimbo Owen Gulle, Editor lgu@manilastandard.net editor.lgustandard@gmail.com

B4

Sara hands over P500K to QC for flooding aid

LocaL government units

wednesday, august 15, 2018

By Rio N. Araja

NEW MACHINE. Makati Mayor Abigail Binay (second from left) speaks with Ospital ng Makati medical director Dr. Vergel Binay at the launch and blessing on Monday of the Digital Mammographic Examination System recently acquired by the city government for the city-run hospital. The mayor said the full field digital mammography machine is crucial to the success of the city’s breast cancer awareness and prevention campaign. The machine will be operated by the OsMak Radiology Department headed by Dr. Realinda Pimentel (third from left), and will serve up to 15 patients a day. Also in the photo are Dr. Jeanne Stephanie Piano, chief resident, and Dr. Emerson Oliver, deputy director for Ancillary Division of OsMak.

Ecija gov hits moves to pin quarry issue on Umali clan NUEVA Ecija Gov. Czarina “Cherry” Umali on Tuesday expressed fears her political rivals are moving to fast-track a report of the House committee on good government and public accountability holding the Umali clan liable for alleged anomalous quarry operations in the province since Oct. 15 last year.

Umali said this after receiving reliable information that their family’s nemesis called for the swift issuance of the committee report to pin the blame on provincial government officials, including her husband, former governor Aurelio “Oyie” Umali.

She appealed to Speaker Gloria Arroyo to look into the intrusion of Nueva Ecija 3rd District Rep. Rosanna Vergara in the ongoing committee hearings even if she is not a committee member, in a move the governor said was just to embarrass the Umali family.

“It is crystal clear that the filing of Resolution No. 1505 by Vergara, wife of Cabanatuan City Mayor Jay Vergara, is politically motivated that is designed to oppress us,” Umali said.

This “was just a political vendetta,” she added.

In a letter sent Monday, the Nueva Ecija governor requested Environment Secretary Roy Cimatu to clarify the law on the mandate of supervision of quarry operations, saying as far as the law is concerned, the provincial government has the sole authority to issue a quarry permit.

“This supposed undertaking is a manifest disregard of the jurisdiction and authority of the Provincial Government of Nueva Ecija over its territory,” Umali wrote to Cimatu.

“This we find offending, especially in the light of the issues and accusations involving quarry operations. With the special participation of the City Government of Cabanatuan, kept totally from the provincial government, after the conclusion of the Congressional inquiry and pending release of the committee report, is therefore highly suspect,” she added in the letter.

CYAN MAGENTA YELLOW BLACK

Free bus rides in Davao for Kadayawan Festival

By F. Pearl A. Gajunera

D

AVAO CITY—The City Government of Davao will deploy four buses for a “libreng Sakay sa Kadayawan” to cater the people who would like to join the activities of the 33rd Kadayawan Festival. The libreng sakay started Tuesday, Aug. 14, and runs until Aug. 28, traveling from SM lanang to SM Ecoland this city.

City Transport and Traffic Management Office head Dionisio Abude said they have identified a mall to mall route for the free ride, since most of the activities will be held in the malls.

“What the people need to do is just to wait in the designated 16 bus stops from SM lanang to SM Ecoland. This will be very convenient for the commuters,” Abude said.

The 16 designated bus stops are SM lanang, Abreeza, Victoria Plaza, Gaisa-

no Mall, Magsaysay Park, Ateneo Roxas, People’s Park, Back of the City hall, St. John Paul II College and SM Ecoland.

The bus will run as early as 7 in the morning until 11 in the evening to accommodate the Davaoeños and the tourists as well.

City Tourism Officer Gene Rose Tecson said the free rides will attract more tourists to visit the city during the Kadayawan festival.

“Transport system is very vital for a

tourist destination. With this four buses, it will give a good impression to the tourists that the city has a good transport system,” Tecson said.

The four buses are equipped with CCCTV cameras, Wi-Fi and GPS to ensure the safety of the passengers.

Meanwhile, as one of the Platinum sponsors of Davao City’s 33rd Kadayawan Festival, Philippine Airlines is flying in a couple of crowd-drawing entertainers to perform at a free concert during the culmination of the weeklong celebration.

A PAl Night to be held at the city’s Kadayawan Square on August 19 will feature the multi-awarded Filipino band UDD (Up Dharma Down) and GMA Network’s popular actress-dancer Andrea Torres. A local band will be joining them on stage.

To fight floods, Tiangco eyes automated Navotas pumping stations

By Jun David MAYOR John Rey Tiangco expressed plans to automate the 59 pumping stations in Navotas to bolster the efficiency and effectiveness of its operations

against flooding in the city.

In his speech during the Philippine Science Centrum’s Mobile Interactive Hands-on Exhibits at Kapitbahayan Elementary School, Tiangco underscored the need to harness science

Republic of the Philippines MUNICIPALITY OF MULANAY Province of Quezon August 6, 2018

and technology to address issues in Navotas.

He said automation will make it easier for the city government to monitor the status of all the pumping stations.

He narrated that Navotas started

Republic of the Philippines MUNICIPALITY OF MULANAY Province of Quezon

having pumping stations, also known

by Navoteños as “bombastik,” in 2007 during the term of then-mayor now Rep. Toby Tiangco.

“Back then, we had around 20 bombastik. It was still easy for Cong Toby to call or exchange text messages with operators to monitor the status of all pumping stations,” he said.

August 6, 2018 Design and Build of New Mulanay Public Market

Design and Build of New Mulanay Government Center

1.

The Local Government Unit of Mulanay, Quezon through the Loan Package granted by the Land Bank of the Philippine including equity from the General Fund intends to apply the sum of Fifty Million Pesos (Php 50,000,000.00) being the Approved Budget for the Contract (ABC) to payments under the contract for the Design and Build of New Mulanay Public Market/18-08-07-013 Infra. Bids received in excess of the ABC shall be automatically rejected at bid opening.

1.

The Local Government Unit of Mulanay, Quezon through the Loan Package granted by the Land Bank of the Philippine including equity from the General Fund intends to apply the sum of Fifty Two Million Pesos (Php 52,000,000.00) being the Approved Budget for the Contract (ABC) to payments under the contract for the Design and Build of New Mulanay Government Center/18-08-07-012 Infra. Bids received in excess of the ABC shall be automatically rejected at bid opening.

2.

The Local Government Unit of Mulanay, Quezon now invites bids for Design and Build of New Mulanay Public Market/18-08-07-013 Infra. Completion of the Works is required

by Sixty (60) calendar days for the design works, feasibility study,and acquisition of necessary permits like Environmental Compliance Certificate (ECC) and the likes.

Bidders should have completed a contract similar to the Project. The description of an eligible bidder is contained in the Bidding Documents, particularly, in Section II. Instruction to Bidders.

2.

The Local Government Unit of Mulanay, Quezon now invites bids for Design and Build of New Mulanay Government Center/18-08-07-012 Infra. Completion of the Works is required by Sixty (60) calendar days for the design works, feasibility study,and acquisition of necessary permits like Environmental Compliance Certificate (ECC) and the likes. Bidders should have completed a contract similar to the Project. The description of an eligible bidder is contained in the Bidding Documents, particularly, in Section II. Instruction to Bidders.

3.

Bidding will be conducted through open competitive bidding procedures using nondiscretionary pass/fail criterion as specified in the Implementing Rules and Regulations (IRR) of Republic Act 9184 (RA 9184), otherwise known as the “Government Procurement Reform Act”.

3.

Bidding will be conducted through open competitive bidding procedures using nondiscretionary pass/fail criterion as specified in the Implementing Rules and Regulations (IRR) of Republic Act 9184 (RA 9184), otherwise known as the “Government Procurement Reform Act”.

Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or organizations with at least seventy five percent (75%) interest or outstanding capital stock belonging to citizens of the Philippines.

Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or organizations with at least seventy five percent (75%) interest or outstanding capital stock belonging to citizens of the Philippines.

4.

Interested bidders may obtain further information from Local Government Unit of Mulanay, Quezon and inspect the Bidding Documents at the General Services Section-Procurement Unit from 8:30 AM to 4:30 PM during working days.

4.

Interested bidders may obtain further information from Local Government Unit of Mulanay, Quezon and inspect the Bidding Documents at the General Services Section-Procurement Unit from 8:30 AM to 4:30 PM during working days.

5.

A complete set of Bidding Documents may be acquired by interested Bidders on starting August 8, 2018 to August 24, 2018; 8:30 AM to 4:30 PM from the address below and upon payment of a nonrefundable fee for the Bidding Documents, pursuant to the latest Guidelines issued by the GPPB, in the amount of Twenty Five Thousand Pesos (Php25, 000.00) to the Cashier of the LGU- Municipal Treasurer Office.

5.

A complete set of Bidding Documents may be acquired by interested Bidders on starting August 8, 2018 to August 24, 2018; 8:30 AM to 4:30 PM from the address below and upon payment of a nonrefundable fee for the Bidding Documents, pursuant to the latest Guidelines issued by the GPPB, in the amount of Fifty Thousand Pesos (Php50, 000.00) to the Cashier of the LGU- Municipal Treasurer Office.

It may also be downloaded free of charge from the website of the Philippine Government Electronic Procurement System (PhilGEPS), provided that bidders shall pay the fee for the Bidding Documents not later that the submission of their bids.

It may also be downloaded free of charge from the website of the Philippine Government Electronic Procurement System (PhilGEPS), provided that bidders shall pay the fee for the Bidding Documents not later that the submission of their bids.

6.

The Local Government Unit of Mulanay will hold a Pre-Bid Conference on August 15, 2018; 10:30 in the morning at the Municipal Budget Office, LGU Bldg. Egualidad Street, Poblacion I, Mulanay, Quezon, which shall be open to all interested parties.

6.

The Local Government Unit of Mulanay will hold a Pre-Bid Conference on August 15, 2018; 9:00 in the morning at the Municipal Budget Office, LGU Bldg. Egualidad Street, Poblacion I, Mulanay, Quezon, which shall be open to all interested parties.

7.

Bids must be delivered to the address below on or before August 28, 2018; 10:30 in the morning at the Municipal Budget Office, LGU Bldg., Egualidad Street, Poblacion I, Mulanay, Quezon. All bids must be accompanied by a bid security in any of the acceptable forms and in the amount stated in ITB Clause 18.

7.

Bids must be delivered to the address below on or before August 28, 2018; 10:30 in the morning at the Municipal Budget Office, LGU Bldg., Egualidad Street, Poblacion I, Mulanay, Quezon. All bids must be accompanied by a bid security in any of the acceptable forms and in the amount stated in ITB Clause 18.

Bids will be opened in the presence of the bidders’ representatives who choose to attend at the address below. Late bids shall not be accepted.

Bids will be opened in the presence of the bidders’ representatives who choose to attend at the address below. Late bids shall not be accepted.

8.

The Local Government Unit of Mulanay, Quezon assumes no responsibility whatsoever to compensate or indemnify bidders for any expenses incurred in the preparation of the bid.

8.

The Local Government Unit of Mulanay, Quezon assumes no responsibility whatsoever to compensate or indemnify bidders for any expenses incurred in the preparation of the bid.

9.

The Local Government Unit of Mulanay, Quezon reserves the right to accept or reject any bid, to annul the bidding process, and to reject all bids at any time prior to contract award, without thereby incurring any liability to the affected bidder/s.

9.

The Local Government Unit of Mulanay, Quezon reserves the right to accept or reject any bid, to annul the bidding process, and to reject all bids at any time prior to contract award, without thereby incurring any liability to the affected bidder/s.

10.

For further information, please refer to:

10.

For further information, please refer to:

Engr. Delio H. De Leon LGU Bldg., Municipal Engineering Office 4312 Poblacion I, Mulanay, Quezon Cell Nos. 0998-975-5275 Tel. Nos. 042-319-7122/Fax Nos. 042-319-7610 deliohapordeleon@gmail.com

Engr. Delio H. De Leon LGU Bldg., Municipal Engineering Office 4312 Poblacion I, Mulanay, Quezon Cell Nos. 0998-975-5275 Tel. Nos. 042-319-7122/Fax Nos. 042-319-7610 deliohapordeleon@gmail.com

(SGD) ENGR. DELIO H. DE LEON BAC Chair Municipal Engineer (MS-AUG. 15, 2018)

(SGD) ENGR. DELIO H. DE LEON BAC Chair Municipal Engineer (MS-AUG. 15, 2018)

DAVAO City Mayor Sara Duterte has handed over P500,000 to Quezon City Vice Mayor Joy Belmonte to aid in the city’s relief operations for flood victims.

“Thank you once again with all of our hearts, Mayor Sara Duterte, for the financial assistance you gave to Quezon City, as well as the province of Pampanga, to help us provide relief to our flood victims,” Belmonte said.

“We assure you of utmost transparency by reporting to you and the people of Quezon City how each centavo was spent,” she added.

Belmonte met with President Rodrigo Duterte’s daughter during the Aug. 13 signing of Hugpong ng Pagbabago’s alliance with local and regional parties, including Quezon City’s Serbisyo ng Bayan Party.

As chairman of the Davao-based HNP, Duterte led the signing of an agreement forming an alliance that aims to deepen the service provided to Filipinos through good governance and responsive leadership.

“Both regional parties have agreed to form an alliance in order to cooperate towards achieving the advocacies and objectives of the Duterte Administration, particularly in terms of poverty alleviation, good governance and inclusive growth,” Belmonte said.

Malabon wins big in Nutrition NCR awards MAlABON City’s efforts and commitment to proper nutrition—which is fundamental to the empowerment of healthy, productive constituents and communities—has again received meritorious citations from the National Nutrition Council-NCR. For the second straight year, Malabon bagged top accolades in the following categories: Very Satisfactory in Nutrition Program Management, lGU with Continuous Improvement in Nutrition Program Management, and Best lGU in Resource Generation and Mobilization.

The awards were received by Mayor Antolin “lenlen” Oreta III and his wife, City Nutrition Action Officer Chef Melissa Sison-Oreta during the recent awarding rites held at The Heritage Hotel Manila.

The solid commitment and support by all Malabonians and various stakeholders are key to the success of the City’s nutrition and dietary feeding program.

While much remains to be done, Mayor Oreta said Malabon is keen to move forward, optimistic of meeting its goals to make health and nutrition accessible to all its citizens.

“This triumph of Malabon is a big honor for all of us. It symbolizes Malabonians’ collective efforts and commitment and that we are successfully winning our fight against childhood malnutrition,” said Oreta.

To promote healthy cooking/ eating habits and nutritious food choices, Malabon First lady Chef Melissa Sison-Oreta designed a 90Day Feeding Program which piloted in 2016 in Barangay Catmon.

With the help of volunteers and generous support of private sponsors, hundreds of children benefitted from the first phase of the campaign.

Each Barangay Nutrition Scholar was made to undergo a short Culinary Course to equip them with basic cooking skills in making food choices that are nutritious and affordable.

From this effort, they led a team of lady volunteers in cooking the daily meals to feed the malnourished children and pregnant mothers.

CYAN MAGENTA YELLOW BLACK

Life

Bernadette Lunas, Issue Editor manilastandardlife@gmail.com @manilastandardlife @MStandardLIFE

fashion and beauty

wEdnESday, auguSt 15, 2018

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Criselda Lontok:

35 years of transformative style m

odel turned fashion designer Criselda lontok knows how to stay relevant. Working as Rustan’s in-house designer for the past three and a half decades, she has dressed generations of Manila’s most fashionable and influential women, and still does to this day. mentored by Rustan’s matriarch and founder Gliceria Rustia-Tantoco, her principle to staying relevant is creating clothes that are elegant and timeless yet practical and can be worn by women of all sizes and ages.

“The most precious lesson i learned all these years as a designer is that style and comfort should never be a paradox but a fusion,” shares lontok. “That customer satisfaction should be first and foremost together with the elegance and practicality of the designs.” as lontok celebrates her 35 years of transformative style, she boldly looks forward into the future, the next generation of women—young influential ladies—who look up to their mothers as their own personal icons, the very same women who have followed and stayed true to her style philosophy since the label was created.

This year, a new vision for the Criselda brand emerges from the chrysalis. lontok recently presented the Criselda lontok Holiday 2018 collection featuring classic styles with contemporary twists worn by her 19 fashion muses—the Criselda Women—that includStephanie Zubiri-Crespi

ed women from different generations.

Bea Jacinto, erica Concepcion-Reyes, Wendy Yuchengco, Natalia Jacinto, mia Borromeo, alana montelibano, Tania Fricke lichauco, Stephanie Zubiri-Crespi, dina Tantoco, audrey Tan-Zubiri, Frannie Jacinto, Zelda Kienle, Natalia Peña, Patricia Prieto, marivic Vasquez, Tessa Prieto-Valdes, linda ley, and Rissa mananquil-Trillo walked on the runway of The Peninsula manila.

The muses donned lontok’s designs, from maria Clara-inspired tops with contemporary structures, to long gowns that improve the traditional silhouettes.

This inimitable fusion of style and comfort, fluid and structured, modern and classic took center stage.

With the blending of bright colors and prints with an integration of modern and classic designs, this timeless collection is made for women who are beautiful, stylish, and feminine. as she marks another milestone in her illustrious career with this latest collection, Criselda lontok demonstrates why her brand remains synonymous to elegance and sophistication.

Esteemed designer Criselda Lontok (right) with Rustan Commercial Corporation chairman and chief executive Zenaida Tantoco.

The Criselda Lontok Holiday 2018 collection will be available first week of September at Rustan’s Makati, ShangriLa, Alabang, Gateway, and Cebu.

Tessa Prieto-Valdes

Zelda Kienle

Genuinely glowing Dina Tantoco

Rissa Mananquil-Trillo

The Glow Skin Clinic offers 12 unique skin treatments.

Camille Padilla believes that selfcare is not a luxury but a necessity.

Working as a contractor, which can be extremely stressful, she has made skin care one of her priorities. as she went from one clinic to another to find the perfect service she seeks, Padilla had an idea of putting up a skin clinic that will let everyone experience high quality skin care services without breaking the bank. and so her dream of providing Filipinos with total beauty and pampering treatment has finally come to fruition on aug. 9 when she opened the first Glow Skin Clinic at Uptown mall inBonifacio Global City, Taguig.

“Glow Skin Clinic was conceived because we want Filipinos to embrace that skin-care and self-love are not vain luxuries, but celebrations of their natural glow from within,” Padilla said in an interview.

Glow Skin Clinic offers 12 unique treatments that include brightening, clarifying, moisturizing, and rejuvenating.

Sparkle and Glow president Camille Padilla

Her journey is yet to begin, but the Spakle and Glow president hopes it will lead to her dream of making every Filipino genuinely glowing.

Glow Skin Clinic is on the second floor of Uptown Mall at 9th Ave. cor.

36th St., Bonifacio Global City, Taguig.

Marianne Ilumba

Life

C2

wednesday, august 15, 2018 manilastandardlife@gmail.com

KEEP IT CASUAL. MIlanos offers a range of casual shoes for men, such as (clockwise) leather boat shoes, slip-on ankle boots, crisscross sandals, and casual loafers.

Cool and Casual

t

Hey say that it’s during weekends one can best express his individual style. these are the times when one can relax, leave behind office protocol, and indulge in his favorite hobby or sport.

Weekend warriors can keep it Boat shoes are not only for sailing, cool and casual in chic and com- but for walking the city streets during fortable shoes. days off. Sandals, on the other hand, are

easy and comfy and can take anyone to places.

Classic loafers have a preppy feel, go with most casual clothes, and are great for weekend getaways. While boots are for guys with attitude— those who are cool and self-assured.

These casual shoes for men are from Milanos shoe collection available at The SM Store.

Beauty Bar brings to the country selected pieces from Claudia Schiffer Make Up.

Beauty from the ‘90s Beauty Bar, in collaboration with beauty expert agoo Bengzon, recently celebrated the arrival of Claudia Schiffer Make up, the eponymous cosmetics line of German supermodel and ‘90s icon Claudia Schiffer. the event was truly a gleaming throwback as it put the spotlight on the Beauty atelier, where eager guests chose from three key looks of the brand.

Bardot-esque was a mix and play of the products for the timeless, dewy yet dramatic look, where it is capped off with natural-colored lips and intense eyes. For night outs, there was the Dress up look that fashions smoky eyes and red lipstick. and for those who went for bold and adventurous, chose the Double Denim look which featured the iconic blue eye shadow and clementine lipstick.

Beauty Bar brings to the country selected pieces from the collection, which include highly pigmented, compact quad eyeshadow palettes, deep

The iconic blue eyeshadow

black waterproof and smudge-proof long lash mascara, eyebrow styler, transparent setting powder, contouring powder, long-lasting cheek and brow illuminator, five shades of pigmentrich cream lipstick, moisturizing lip gloss, blusher, and ultra-gloss finish nail polish.

The Claudia Schiffer Make Up is available at Beauty Bar stores in Central Square, Alabang Town Center, Eastwood, Glorietta 2, Greenbelt 5, Power Plant Mall, Shangri-La, and TriNoma.

Honoring tradition Weekend warrio rs can walk with confidenc e in stylish and comfortable ca sual shoes.

Concept nail salon now open for franchise tWo years of operations and two branches later, concept nail salon Kitchenails is now open for franchise. on July 28 the nail salon opened its first franchised store at Robinsons Galleria. It is looking forward to opening in more locations in the metro and in key cities in the country.

Kitchenails offers a wide variety of flavorful scrubs, nail polish, and oils that are organic and hypoallergenic.

Its “Menu of Services” are a play on words associated with food like Honey Glaze for paraffin wax and aperitif for massage. the most recommended service would be a “Chef Specials,” a complete pampering service in which clients can choose their own flavor (Lemon Square, Candied oranges, Spiced Plum Pannacotta, Verry Berry Muffin, and Key Lime Pie). “a concept nail salon made impact to me as a client much more as a franchisee.

I have always looked up to the dedication of the owners and team members of Kitchenails. I know that with proper guidance

Ting hun is a time-honored tradition that serves as the engagement’s formal announcement.

In CHIneSe culture, the families of a couple hold a betrothal ceremony called Ting Hun, a time-honored tradition that serves as the engagement’s formal announcement.

International luxury jewelry brand Jewelmer honors this tradition and celebrates the beliefs

and rituals that have tied entities together with its signature golden South Sea pearl.

Jewelmer offers a variety of pieces with South Sea pearl, such as a pair of dangling earrings from the Stileto collection and a stunning necklace from the Grand tropics collection.

Kitchenails franchisees Minnie Bautista-Aldave and Mark Aldave (third and fourth from left) open their branch at Robinsons Galleria.

and support, I will grow with them as [I] embark on this journey to business success,” said Minnie aldave, Kitchenails Robinsons Galleria franchisee. aside from its newly opened branch, Kitchenails nail salon has

outlets at alabang town Center and trinoma.

For marketing and franchising inquiry, contact Migs De La Rosa at 0977-3597602 or Myrna Dela Rama at (02) 281-8488.

Dangling earrings and necklace featuring Jewelmer’s signature South Sea pearl.

Entertainment From C4

Carlo Enciso Catu's 'Kung Paano Hinihintay ang Dapithapon (Waiting for Sunset)’ is named Best Film at the 14th Cinemalaya Philippine Independent Film Festival Awards Night.

C

ARLO Enciso Catu’s Kung Paano Hinihintay ang Dapithapon (Waiting for Sunset) was named Best Film at the 14th Cinemalaya Philippine Independent Film Festival Awards night held on Aug. 12 at the CCP Main Theater.

Catu’s film about love, companionship and forgiveness in the twilight years of an unlikely trio—an unmarried couple and the woman’s estranged husband—also won the prizes for Best Production Design (Marielle Hizon), Best Cinematography (Neil Daza), and Best Screenplay (John Carlo Pacala).

Featuring senior actors Dante Rivero, Menggie Cobarrubias, Perla Bautista in the lead roles, the film was cited “for its general technical excellence, for its powerful ensemble acting by some of the most august

DOWN 1 Ticket price 2 Wild goat 3 Easy victory 4 Falco or Sedgwick 5 Not enhance 6 Goodyear fleet 7 Fills the hull 8 Foreshadow 9 Puts to sea (2 wds.)

10 Stir up 11 Wrinkle remover 12 Heavy metal 13 Witty remarks 21 Henri’s island 25 NNW opposite 26 Rink fake-out 27 Napoleon’s fate 28 Sandwich shops 29 Footed vase 30 Goose egg

Cinemalaya 2018 winners with the festival organizing committee and jury members.

names in Philippine cinema, and for its sensitive depiction of decline and decrepitude.”

As Best Film winner, Kung Paano Hinihintay ang Dapithapon received P350,000, a Balanghai trophy, a post production package worth P600,000, a Canon camera, and a distribution grant worth P200,000.

The Special Jury Prize went to Pan de Salawal (The Sweet Taste of Salted Bread and Undies) by Che Espiritu, who also won for Best Direction. As Special Jury Prize winner, Pan de Salawal received P100,000, a Balanghai trophy, a Canon camera, and full color-grading from Optima Digital worth P360,000 for the said award.

Pan de Salawal also earned the Best Original Musical Score award (Len Calvo) and Special Jury citations for the young actors in its cast.

Child actors Miel Espinosa (Pan de Salawal), JM Salvado (Pan de Salawal and Musmos na Sumibol sa Gubat ng Digma), and Kenken Nuyda (Liway and School Service) all earned Special Jury Citations for their outstanding performances.

The Cinemalaya Board of Jurors said that strong performances of children have distinguished a number of movies in this

year’s Cinemalaya festival.

The Cinemalaya Board of Jurors made special note of “the particularly strong lineup of movies in the Main Competition” in this year’s Cinemalaya.

It gave Special Jury commendation to Kip Oebanda’s autobiographical film Liway that told the story of Oebanda’s life as a child living with his parents, rebels detained inside a military camp. As Special Jury winner, Liway received P100,000, a Balanghai trophy, a Canon camera and full color-grading from Optima Digital worth P360,000.

Liway bagged the Audience Choice award in the Full Length Feature category. For being the Audience Choice award, the film earned P75,000 and a certificate.

Award winning actor Eddie Garcia was honored with the Best Actor award for his role in Benedict Mique’s ML. Actress, host and comedian Ai Ai Delas Alas garnered the Best Actress award for her role in Luisito Ignacio’s School Service. Therese Malvar tied with herself for the Best Supporting Actress award for her performances in two films, School Service and Percival Intalan’s Distance, while Ketchup Eusebio won the Best Supporting Actor for his role in De-

nise O’Hara’s Mamang.

The Best Editing award went to ML (Mikael Pestano) while Best Sound went to Wild Sound for its work in Iar Lionel Arondaing’s Musmos Na Sumibol Sa Gubat Ng Digma (Unless the Water is Safer than the Land).

Now on its 14th year, Cinemalaya has supported and promoted the production of full feature independent films and short films. Many of these films have won awards in local and international competitions and festivals.

Through the annual festival, Cinemalaya has showcased over 1,000 works by independent filmmakers including full feature films, shorts, documentaries, Filipino film classics, and art films.

A project of the Cinemalaya Foundation and the Cultural Center of the Philippines, the festival this year was held at the CCP and in selected Ayala Malls cinemas. Established in 2005, Cinemalaya is an all-digital film festival and competition that aims to discover, encourage and honor cinematic works of Filipino filmmakers.

For more information about Cinemalaya, visit www.cinemalaya.org, www.culturalcenter.gov.ph.

Filipino-American leaders at the 12th Ambassadors’ Tour GMA Network, through its international arm GMA International, warmly welcomed Filipino-American leaders, balikbayans, and tourists during the kick-off of the 12th Ambassadors’ Tour 2018.

The annual tour, which gives an opportunity for local government officials to showcase the beauty as well as the genuine warmth and hospitality of their constituents, was organized by the Philippine Embassy and the Philippine Consulate Generals in the US. During their welcome dinner in Quezon City, GMA presented world class Filipino talent as balladeer Christian Bautista, singer Maricris Garcia, and actress Kris Bernal took the stage.

Christian made the gathering more special and memorable for all the visiting Kapuso abroad as he serenaded them during his performance. Maricris, in turn, showed her singing prowess as she belted out a popular movie soundtrack and an OPM song which hit close to home.

Meanwhile, Kris’s upbeat musical numbers energized the crowd as they enjoy the rest of the evening.

The participants also had the chance to take photos with the artists after the program and were given souvenirs from GMA’s international channels GMA Pinoy TV, GMA Life TV, and GMA News TV International.

Held last July 8 to 15, the 12th Ambassadors’ Tour 2018 was headed by the Los Angeles Consulate Office under the leadership of Consul General Adelio Cruz.

“I would like to extend my profound gratitude to GMA Network and the men

Wednesday, August 15, 2018

poser — Satie 60 Merit 61 Concise 62 Island near Java 63 Bachelor’s party 64 Journalist — Pyle 65 Colony members 66 Some cats 67 University VIPs

nickie.standard@gmail.com

named best film at 14th Cinemalaya

CROSSWORD PUZZLE ACROSS 1 Pink-slipped 6 Political alliance 10 Motion picture 14 Habitat 15 Lhasa monk 16 Two-color cookie 17 Send, as money 18 Bad day for Caesar 19 Big ditch 20 Try to discover something 22 Comes to a halt 23 Where edelweiss grows 24 Nine-digit no.

26 Gathers 30 Half a nose 34 Put forth effort 35 Crawling with 36 Incan treasure 37 Pottery oven 38 Rock ledge 40 Retired 41 Bulldogs backer 42 DOS alternative 43 Shed light 44 Kind of computer 46 Tastes 48 Hem and — 49 Mex. miss 50 Ms. Rudner 53 Not all there 59 “Socrate” com-

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‘KUNG PAANO HINIHINTAY ANG DAPITHAPON‘

Simply...

Sec. Harry Roque meets the showbiz press Before becoming the Presidential Spokesperson and Presidential Adviser for Human Rights, Sec. Harry Roqueexcelled as a courageous and topnotch lawyer, University of the Philippines (UP) law professor, prolific congressman and a staunch defender of the disadvantaged, the poor and the oppressed.

Last week, he met with members of the showbiz media. Not for anything, but simply he wants to connect.

Roque knows how far reaching the entertainment media in the Philippines. And in fact, he, during the lunch do, punctuated his exchange with the journalists with jokes of how he wanted to be in show business.

“Eh, kung may mag-o-offer ba, why not?” he retorted when one asked if he’d trade being a Presidential Spokesman to being in show business.

Roque was the lawyer for some 40 journalists against unwarranted actions by the previous governments. Part of his long list of crusades include being one of the founders of Centerlaw, a non-profit organization that defends the voiceless and the poor of Philippine society.

Harry Roque is a nationalist leader who upholds the Philippines’ independent foreign policy of making the Philippines a friend of the world’s super powers and enemy of none; views that run similar to that of nationalist President Rody R. Duterte; former Senator Claro M. Rectoand Sec. Roque’s grand-uncle, the late incorruptible, nationalist Senate President Jovito Salonga.

He believes that Pres. Duterte is similar to many of Asia’s strong-willed and nationalist Asian leaders often criticized by the West for many years, like the late Lee Kuan Yewof Singapore, Prime Minister Mahathirof Malaysia and the late reformer Deng Xiaopingof China. Duterte he said is not anti-West, but staunchly pro-Philippines.

A true patriot, Sec. Roque as Congressman continued his role as champion of the poor, oppressed, and voiceless with bills filed for the indigenous people, informal workers, whistleblowers, victims of human rights violations. He also prioritized progressive bills in socialized housing, public safety, free health care, science and technology, etc.

Secretary Harry Roque is also the author of the Universal Public Health Bill.

When asked why he accepted the post of Pres. Duterte’s spokesperson, Sec. Roque made notes on the pro-poor, pro-regional development and nationalist stance of the government of Pres. Duterte.

The most challenging underdog for Harry Roque may be being the official voice of President Duterte, amidst the Goliath of a well-funded foreign, mostly Western media which have often unfairly criticized the Philippine government.

Roque counts Martin Nievera, Gary Valenciano, Piolo Pascual, Claudine Baretto, as some of his friends in the entertainment industry.

ABS-CBN enjoys double-digit lead in national TV ratings More Filipinos nationwide turned to ABS-CBN for news and values-laden stories as it recorded an average audience share of 44 percent, or an eleven-point lead over GMA’s 33 percent, according to data from Kantar Media.

The Kapamilya network ruled in both rural and urban homes, particularly in Metro Manila with an average audience share of 42 percent, compared to GMA’s 28 percent.

ABS-CBN likewise led in Total Luzon with 39 percent versus GMA’s 37 percent; in Total Visayas with 51 percent, compared to GMA’s 26 percent; and in Total Mindanao with 53 percent, while GMA only got 26 percent.

Multinational audience measurement provider Kantar Media uses a nationwide panel size of 2,610 urban and rural homes that represent 100 percent of the total Philippine TV viewing population.

PJ’s Ang Probinsyano (42.8 percent) kept its reign as the most watched program in July, followed by weekend program “Your Face Sounds Familiar Kids” (32.8 percent).

WEDNESDAY, AUGUST 15, 2018

31 Asimov topic 32 “Forsyte Saga” heroine 33 Rich sources 35 King 38 Most niveous 39 Kind of boots 40 Just as I thought!

42 Hagen of “The Other” 43 Gave a highfive 45 Tan slacks 46 Fork parts

47 PIN prompter 49 Get lost!

50 Ms. McEntire of country music 51 Baha’i origin 52 Slope 54 Defense org.

55 Onetime Trevi Fountain coins 56 Active volcano 57 Watery 58 Takes a good look

and women of GMA International for facilitating the participation of highly talented artists from GMA-7 during the 12th Ambassadors’ Tour, much to the enjoyment of its participants. Their performances were truly world class,” said Cruz.

The participants also visited some of the top tourist destinations in the country such as Carcar, Sibonga, and Argao in Cebu. They were also able to experience the Loboc River cruise and visit the Tarsier Conservation Center, Baclayon Church, and Chocolate Hills in Bohol.

With a total of 320 participants from North America, the tour was attended by several VIPs headed by Philippine Ambassador to the US Jose Manuel G. Romualdez along with public servants, student leaders, community leaders, influencers from different fields of expertise, as well as local Philippine public officials and business executives

The Fil-Am participants gather to take a photo with balladeer Christian Bautista

New York gives ‘Bitter Melon’ a rousing welcome A movie still from the LGBTQ+ themed indie movie, 'Bitter Melon'

THE film festival circuit has been a triumphant path so far for Bitter Melon.

The film by acclaimed director H.P. Mendozawhich was chosen last year for funding and support by Cinematografo Originals.

Last Saturday, the dramedy was screened at Asia Society as part of the official closing presentation of the prestigious 41st Asian American International Film Festival (AAIFF 41). In spite of a very busy weekend in New York with ongoing summer festivals, the screening drew an enthusiastic multicultural audience that had an animated Q&A with Mendoza and the cast members.

“I laughed, I cried, I shivered, it was that emotional,” said filmgoer Joe Wentzell. “Anyone can relate to this film.

We all have family demons. How do we deal with them?”

Vice Consul Khrys Corpuz Popov commented, “My husband and I en-

joyed the film. It’s uncomfortably funny and dark, not your typical Filipino movie.”

Screenwriter Nathan Liu said that this movie is ready for a wider release so people can see the cinematic Filipino American masterpiece. “Honestly, I even think this will work very well for a streaming service like Netflix,” said Liu. Director Mendoza remarked: “This is a movie on how men deal with women, how men deal with men, and how men need to change. I want people to talk about it and to listen to each other. I want them to talk about what empathy really means.”

“We’re so proud of H.P. Mendoza and ‘Bitter Melon’,” said Cinematografo Executive Director John-D Lazatin. “This is what we aimed for: showcase independent filmmakers and be a platform to bring their stories to the world stage.”

Entertainment

Nickie Wang, Issue Editor nickie.standard@gmail.com

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WEDNESDAY, AUGUST 15, 2018

ISAH V. RED

‘ONANAY’

'Bagani' was a success for the love team of Enrique Gil and Liza Soberano. In the fantasy series, the onscreen couple shared many firsts together.

affirms Ate Guy’s acting preeminence THERE are actors and most of they are called such because acting is their profession. But there are few actors that are addressed the same with reverence. It is their profession, true, but it also defines their passion for their profession.

And Nora Aunor is one of those rare “actors.”

In Onanay, the GMA Network primetime series about the plight of Onay whose size is easily denoted by average people as “unano” as a mother to normal-sized children, Nora Aunor plays the mother of the “little’ woman played by real-life “little” woman Jo Berry.

Nora’s character, Nelia, isn’t the focal point of the series, but clearly in the first week, she is undoubtedly the star that mesmerizes the audience each time her face pops up on the screen.

And with Cherie Gil as the antagonist, Nora’s performance vis a vis Cherie all the more sparkles as her brand of subtlety on screen counterbalances the hysterics of her co star.

It comes as no surprise that this series has become a curiosity, not only because of Jo Berry, but more so of Nora and Cherie. Fans await the two acting giants and how they will clash on the boob tube as they essay their respective roles.

Onanay tells the unique story of Onay, a woman born with Achondroplasia or a bone growth disorder, which impeded her growth.

Because of this, she is often the subject of ridicule but she chooses to remain positive in life. She gave birth to two beautiful daughters—Maila and Natalie—who cannot be more different from one another. Despite a tragedy and traumatizing events, Onay’s motherly love remains pure and unconditional, the way every mother is to her child.

It was only the first week and the Kapuso screen has already exploded with Helena (Cherie) and Nelia’s encounters.

In the coming weeks, the show will introduce Mikee Quintos and Kate Valdez as Onay’s daughters Maila and Natalie Perhaps, fans of the two will want to see how they’d fare with both Aunor and Gil (I hope they survive!).

Completing the cast are Gardo Versoza as Dante, Nelia’s younger brother who will treat Maila as his own daughter; Wendell Ramos as Lucas, a rich and careless man who used to be an alcohol and drug addict who will later on play an important role in Onay’s life; Rochelle Pangilinan as Sally, Onay’s childhood friend who works at a beauty salon and is very supportive and endeared to Maila; Vaness Del Moral as Imelda, Lucas’ jealous and possessive wife; Enrico Cuenca as Oliver, a handsome school jock who will fall for Maila; and special guest Adrian Alandy (formerly known as Luis Alandy) as Elvin, the loving and responsible husband of Onay who fell in love with her because of her beautiful innate qualities.

Gina Alajar directs the series.

Continued on C3

Superstar Nora Aunor with the cast of family drama 'Onanay.'

‘BAGANI’

reinforces lessons about heroism, love and friendship

By Nickie Wang

T

OP rating fantasy series Bagani is on its final stretch, the heroes of Sansinukob will face a difficult dilemma as they fight evil to protect their home from destruction.

At the media conference held over the weekend, lead cast Liza Soberano and Enrique Gil talked about what fans can anticipate from the series before it fades out on television.

“We have a little surprise for our viewers, we hope fans will not be able to predict the ending because they are very good at guessing what the ending is going to be,” Enrique told the press.

The future of Sansinukob hangs in the balance as the monster inside Ganda (Liza) gets stronger each moment she does not get the cure. That is why she and Lakas (Enrique) must push on with their journey in search of the Puso ng Sinukuan despite the many obstacles in their way.

Though the people of Sansinukob have banded together against Malaya (Kristine Hermosa), who planted the monster in Ganda, they remain worried about their fate should their heroes fail to reach the cure in time and the monster overtakes Ganda to bring about the destruction of their home.

Can Lakas, Lakam (Matteo Guidicelli), Dumakulem (Makisig Morales), and Liksi (Zaijian Jaranilla) muster the courage to sacrifice their fellow Bagani to secure Sansinukob? Will Lakas and Ganda ever find the cure in time?

“It’s common to all Bagani characters, their strength is not just their being heroes and their love for

Makisig Morales, Zaijian Jaranilla, Matteo Guidicelli, Liza Soberano, and Enrique Gil are bidding their 'Bagani' roles farewell.

one another, but also their love for their country and for their tribe. In our final week, that’s what people will see,” Liza shared.

Since its premiere in March, Bagani has been continuously well received by viewers. It received an all-time high national TV rating of 36.2 percent last April 17, according to data from Kantar Media.

The show has also won the hearts of netizens with its hashtags trending all over the world on Twitter. It was also named as one of the most talked about series in the country in the first half of 2018, according to the Twitter Entertainment Index, a list of the most talked about topics on the social networking site.

“It opens a lot of doors for shows that ABS-CBN is going to do in the future.

We’re used to doing shows not similar to Bagani, this is something new for us. It challenges us as actors and it’s good that the network experimented and ventured out by coming up with something like this big,” Enrique noted adding that he’s proud that ABS-CBN produced a show that many could learn

from in terms of its technical aspect.

Agreeing with her love team, Liza believes that Bagani can serve as a prototype for other shows similar to Bagani.

“It’s a good stepping stone for us, we’ve learned so many lessons from the series especially in the acting techniques thought to us during taping.

Now for the network, Bagani helps a lot. In the future, if they will make another series similar to Bagani, at least they’d already know how to improve the series, where to start and what to add to make the series much more enjoyable for the viewers.”

Meanwhile, Bagani’s online version, Bagani World, gave users the chance to be heroes of a digital Sansinukob.

Although the website will close once the show bids its farewell, its stories will continue in “BAGANI: Beyond Sansinukob” on NoInk, ABS-CBN’s online reading platform.

Tune in to the last week of Bagani to find out what will happen to Sansinukob and its heroes. Watch it every night after FPJ’s Ang Probinsyano on ABSCBN.

KMJS, Victor Magtanggol frontline Mega Manila’s top-rating list FOR the month of July, GMA impressively bagged 25 out of the 30 spots in Mega Manila’s list of top-rating programs based on the latest data from the industry’s widely-trusted ratings service provider Nielsen TV Audience Measurement.

Still unbeatable in the number one spot is Kapuso Mo, Jessica Soho (KMJS). The awardwinning news magazine program is the most buzzed about TV show on social media every Sunday night as it consistently keeps viewers hooked on its fascinating and trending stories.

KMJS is bannered by no less than seasoned broadcast journalist Jessica Soho who is also widely regarded as the most awarded broadcast journalist in the country.

Following KMJS is the Kapuso telefantasya Victor Magtanggol which immediately came in the second spot after its debut on July 30.

Portraying the title role is actor Alden Richards who becomes the courageous superhero Ham-

merman. Its highly anticipated pilot episode also made a huge noise on social media.

GMA’s flagship newscast 24 Oras landed on the third spot and was closely followed by weekly drama anthology Magpakailanman, Lip Sync Battle Philippines, Pepito Manaloto, Kambal Karibal, The Clash, Daig Kayo ng Lola Ko, and The Cure.

Included in the list as well were Inday Will Always Love You, Amazing Earth, 24 Oras Weekend, You’re My Destiny, Wowowin, Eat Bulaga, Sunday Pinasaya, Imbestigador, Kapuso Movie Night, Contessa, Bubble Gang, Tadhana, The Stepdaughters, Dear Uge, and Princess Hours.

The network, which consistently ruled over ABS-CBN in Mega Manila, posted a solid 18.6 share-point lead with 47.5 percent average total day people audience share versus rival network’s 28.9 percent.

'The Meg' starring Jason Statham is a surprise box-office monster.

HOLLYWOOD

The Meg’ chomps up competition THE North American box office was under attack from sci-fi horror film The Meg this weekend, industry estimates showed Sunday, as it more than doubled the earnings of its closest competitor to claim the top spot.

The Warner Bros. adaptation of Steve Alten’s Meg: A Novel of Deep Terror (1997) took $44.5 million in its first weekend in theaters, as viewers rushed to see Jason Statham as a rescue diver who tries to save scientists in a nuclear submarine from a huge, underwater shark attack.

Second place went to Tom Cruise’s Mission: Impossible— Fallout, from Paramount, with $20 million earnings ending a two-week run at the top, according to industry tracker Exhibitor Relations.

Fallout” the sixth stunt-filled edition in the popular “M:I” franchise, sees Cruise again do his own vertigo-inducing, cliff-hanging, exploding-car stunts—and has raked in $162 million during three weeks in cinemas.

In at third was Disney’s liveanimated hybrid Christopher Robin, which tells the story of Winnie the Pooh’s now grownup and stressed-out friend and how he reunites with his old stuffed friend, with ticket sales of $12.4 million.

Meanwhile, despite a poor reception from critics, Sony’s newly released Slender Man took fourth place with $11.4 million. While Fifth went to Spike Lee’s BlacKkKlansman, which took $10.8 million.

AFP

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GROWTH AND RISING INFLATION

ECONOMY STILL BOOMING BUT HIGH INFLATION SPOILS GROWTH

By Julito G. Rada

T

HE Philippine economy in 2018 is a story that can be summed up in a few words: Surging inflation is marring growth.

The gross domestic product expanded by a disappointing 6 percent in the second quarter from a revised 6.6 percent in the first three months of 2018. The second-quarter figure brought the first semester growth average to 6.3 percent, or below the lower limit of the target range of 7 percent to 8 percent for the year.

Despite the setback, the economic managers of President Rodrigo Duterte remain optimistic the GDP growth target range this year is doable amid the external headwinds that may stifle expansion, like rising interest rates in advanced economies, increasing trade protectionism and the pesky inflation rate.

The Department of Finance has shrugged off the sluggish 6-percent GDP expansion in the second quarter. It said “strong macroeconomic fundamentals backed by tax reforms and the ambitious P8.4-trillion ‘Build, Build, Build’ infrastructure projects would continue to boost economic growth as the competitiveness of the economy rises and more jobs are created.”

The DoF said the fiscal space expanded by the implementation of the Tax Reform for Acceleration and Inclusion and tax administration enabled the government to boost investments and growth in the first semester.

“In the first semester, the government outlays expanded by 42.4 percent in nominal terms, boosting GDP growth by almost a percentage point while government current expenditures rose by 26.6 percent, contributing incremental 1.16 percentage points to growth,” the DoF said.

Economic Planning Secretary and National Economic and Development Authority director-general Ernesto Pernia attributed the slower-than-expected economic performance in the second quarter to higher inflation rate, trade imbalance, Turn to D2

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GROWTH AND RISING INFLATION

Inclusive growth, fiscal discipline

By Julito G. Rada

A

PROGRESSIVE economy is meaningless if growth does not produce a trickle-down effect.

Embarking on massive infrastructure projects is one strategy that the government of President Rodrigo Duter te i s l e an i n g o n to spread the benefits of economic expansion.

Finance Secretary Carlos Dominguez III says along with other reforms such as the long-due modernization of the tax system and improvements in the ease of doing business, the Duterte administration envisioned the infrastructure program to reduce poverty incidence by a third of the 2015 level of 21.6 percent to just 14 percent by 2022. “ This will be the absolute measure of success of our strategy of inclusive growth. This is the goal that has been set for us by President Duterte, and this is how we are implementing it,” said Dominguez.

“We fully aspire to be the fastest growing economy in the fastest growing region in the world. This will not be an easy task to accomplish.

But we are ready to meet the challenges, driven by the optimism of our people, the confidence of our development partners, and the leadership of President Duterte,” he said.

Aggressive public spending

Dominguez said the government would maintain fiscal discipline despite an aggressive public spending to keep the momentum of the “Build, Build, Build” infrastructure program, designed to fuel high—and inclusive—growth.

He said the Department of Finance and the Bureau of the Treasury would also ensure that the government’s borrowing policy remains cost-efficient to provide it with enough resources to fund infrastructure and other priority programs.

The country’s fiscal position “is strong” and “will continue to be so in the foreseeable future,” Dominguez said.

To maintain the momentum of the “Build, Build, Build” program, Dominguez said the economic managers slightly adjusted the deficit forecast from 3 percent to 3.2 percent through 2019.

“We assure our people that the government remains steadfast in its commitment to fiscal discipline. The improved revenue collections are channeled to productive spending that will clear the way towards inclusive economic growth,” Dominguez said during the

latest meeting of the inter- percent from P210 billion on agency Development Budget year.

Expenditures, meanwhile, Coordination Committee in grew 21 percent to P1.603 trillion Manila. from P1.330 trillion a year ago.

Dominguez said to ensure Robust collections Data released by the DoF on efficient borrowing, this year’s Aug. 11, 2018 showed that to- goal of securing 65 percent of tal revenues collected by the loans from the domestic margovernment in the first semes- ket and 35 percent from exterter jumped 20 percent to P1.410 nal sources would be modified trillion from P1.176 trillion a so that the government would now be targeting the proporyear ago.

The Bureau of Internal tion of domestic borrowing to Revenue collected P965 bil- increase to 75 percent, which lion in the first half, up 14 per- would reduce the percentage of cent from P848 billion on year. external financing in the mix to The Bureau of Customs raked 25 percent.

“The larger proportion of doin P279 billion, higher by 33

mestic borrowing in the 2019 mix will help us better hedge against foreign exchange risks,” Dominguez said.

The aggressive spending will close the infrastructure gap with the Philippines’ neighboring economies, attract industrial investments, stimulate domestic economic activity, ensure that every community and every island participate in the mainstream of national wealth creation, and enable the country to take full advantage of regional economic integration within the framework of the Association of Southeast Asian Nations.

ECONOMY... From D1 “stagnant” agriculture sector, and the closures of the island resort of Boracay last June and some mining operations during the time of former Environment secretary Regina Lopez, a staunch environment advocate.

President Rodrigo Duterte temporarily closed Boracay to rehabilitate the island resort and prevent its further degradation due to too much commercialization that has been taking its toll on the island resort.

But Pernia expressed optimism the reopening of Boracay sometime in October this year could again lure many tourists and eventually contribute significantly to economic growth in the last quarter.

Robust infra spending

Finance Secretary Carlos Dominguez III said national government spending on infrastructure reached P281 billion in the first five months of 2018, up 42 percent over the same period last year. The expenses are on top of the private sector construction and public sector projects financed through public-private partnerships.

Dominguez said with P281 billion invested on infrastructure in the first five months, the government was averaging close to P56 billion a month in funding”Build, Build, Build.”

Moreover, with 30 percent of the spending going to wages, about P17 billion was infused into the economy per month in the form of additional income and purchasing power for workers, aside from creating some 100,000 new jobs so far, spurring economic activity in related sectors and other multiplier effects, he said.

“Build, Build, Build will drastically alter the Philippine economic landscape. It will create over a million jobs per year. It will bring our logistics backbone up to par in a region that is growing very dynamically,” Dominguez said.

GROWTH AND RISING INFLATION

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D3

DPWH’s Villar battles corruption, and RoW issues

By Darwin G. Amojelar

T

HE Duterte administration is slowly making headway toward building more infrastructure projects but issues on right of ways and corruption are hindering the “golden age of infrastructure” goal.

The Department of Public Works and Highways so far is pushing the right buttons to accelerate the construction of critical infrastructure projects. The department, for one, granted an original proponent status to Metro Pacific Tollways Corp. to build the ambitious P22.4 billion Cavite-Tagaytay-Batangas Expressway, the first OPS granted under the Duterte administration.

CTBex is a 50.4-kilometer expressway that will connect Cavite and Batangas, with a spur road to Tagaytay City and ultimately terminating in Nasugbu, with another spur road

to Tuy, Batangas.

“This is another sign that Build, Build, Build is all systems go,” DPWH Secretary Mark Villar said.

Under the “Build, Build, Build” program, the government plans to spend P8 trillion to P9 trillion, or roughly $160 billion to $180 billion, for the big-ticket projects.

The “Golden Age of Infrastructure “ program aims to build more roads and bridges, airports and seaports with the end goal of decongesting the country, and subsequently promoting inclusive growth and development.

NEW CITY. Finance Secretary Carlos Dominguez III (from left), Public Works and Highways Secretary Mark Villar, Economic Planning Secretary Ernesto Pernia, MTD Clark Inc. chairman Isaac David, MTD Clark Inc. president Nicholas David, Bases Conversion and Development Authority president and CEO Vivencio Dizon and Transportation Secretary Arthur Tugade lead the media on a tour of the New Clark City spanning the city of Angeles in Pampanga and the towns of Capas and Bamban in Tarlac. New Clark City is one of the flagship projects under the Duterte administration’s “Build, Build, Build” program.

New expressway projects

Villar also said the construction and acquisition of road right-of-way for Cavite-Laguna Expressway of MPCala Holdings Inc. were being rushed to complete the project with the planned 2020 deadline.

“To date, 96 percent of Letter Offer have been served to the land owners, 81 percent of the signed Deeds of Absolute Sale and Expropriation Cases have been submitted to the Office of the Solicitor General, and 21 percent of the Permits to Enter/

Writ of Possessions have been issued,” Villar said.

Calax is a 45.29-kilometer, four lane toll road which starts from CAVITEX in Kawit, Cavite and ends at the SLEX-Mamplasan Interchange in Biñan, Laguna with eight interchanges and one main toll barrier. It also has a bridge component of 12,207 meters inclusive of 4,618 meters of viaduct.

The DPWH, meanwhile, said the C3 to R10 section of the NLEX Harbor Link was expected to open by the fourth quarter of 2019.

NLEX Harbor Link Segment 10 is an 8.25-km elevated expressway traversing the NLEX from Karuhatan, Valenzuela City, passing through Malabon City, Caloocan City and extending to R-10 in Dagat-Dagatan, Navotas City.

Featured as one of the bigticket projects in the infrastructure plan, the NLEX Harbor Link Segment 10 is envisioned to alleviate traffic congestion and drive commerce between the Harbor area and Central and Turn to D4 North Luzon.

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GROWTH AND RISING INFLATION

Increasing PH demand straining power supply

By Alena Mae S. Flores

T

HE Build, Build, Build program is stretching the energy supply in the Philippines, unless the government steps up efforts to fill in what could be a looming gap in the near horizon.

The Department of Energy has expressed readiness to support the mammoth infrastructure program but stakeholders this early have expressed concern the increased higher demand could impact on future supply.

“We can say it’s more stable, yes, we have a more stable supply now, enough to meet the present demand. We are building our capacity for the future requirements, like these future requirements under the Build, Build, Build and our GDP (gross domestic product) growth,” Energy Secretary Alfonso Cusi said.

The critical infrastructure projects are seen to spur the growth of the country and increase power demand.

Cusi said the Philippines by 2022 would need an additional power capacity of 10,000 MW “from January last year to make sure we will not have a crisis.”

Cusi said Executive Order No. 30, signed by President Rodrigo Duterte in June last year, created the Energy Investment Coordinating Council that would help streamline the regulatory proce-

dures affecting energy projects of national importance.

By declaring the energy projects of national significance, government agencies concerned are required to act upon and issue their respective permits within a 30-day period upon submission of complete documents.

“The EO will help to meet the timeline... Now power is more stable and we would like to continue improving that and we are inviting investors into energy both local and foreign, and we want to have a wider, more investors in the field,” he said.

Cusi said the best solution to maintain a stable and robust energy industry under the Philippine Energy Plan (2017 to 2040) was through a “technology-neutral and competitive business environment.”

“Using reliable data, coupled with adequate industry analysis, the DoE is dedicated to adhere to the point of view and sentiments of the consumers in addressing the challenges of the dynamic energy sector, particularly in its policy and decision-

making initiatives,” Cusi said.

DoE data showed the Philippines had an installed generating capacity of 22,728 megawatts as of end 2017, with the bulk, or 8,049 MW, coming from coal-fired power plants. Renewable energy followed at 7,079 MW and oil at 4,153 MW and natural gas at 3,447 MW, respectively.

The country’s dependable generating capacity in 2017, however, was much lower at 20,515 MW. Power consumption reached nearly 95 million gigawatt-hours in 2017, up four percent from 90.798 million gWh in 2016.

Residential customers had the highest consumption at 26.792 million gWh last year, followed by industrial customers at 25.573 million gWh and commercial at 22.767 million gWh. Luzon generated the highest power supply with a capacity of 68.512 million gWh, Visayas with 14 million gWh and Mindanao at 11.8 million gWh. Luzon’s power reserves were placed at 3,337 MW as of August 11, 2018, around 30 percent of the system capacity of 11,348 MW. An adequate power capacity has helped bring down electricity costs through market competition. Power rates offered by generators have gone down to below P3 per kWh, while prices at the Wholesale

Electricity Spot Market, the coun- mand for power, which is haptry’s trading floor of electricity, pening as well for other goods hovered at the same level. and services, putting an increasing strain on our electricity distribution and generation infrastructure,” ERC vacuum Industry players, however, Manuel Pangilinan, chairman of are wary that the turmoil at the Manila Electric Co., said.

Renewable energy developers Energy Regulatory Commission could affect future power supply. have expressed interest to step Four commissioners of the ERC in and address the increase in were suspended by the Office of power demand, but industry ofthe Ombudsman until October. ficials said the grid could not afford Two of the commissioners have too much intermittent supply.

Renewable energy such as since retired, and the Office of solar, in addition, cannot run the President has not announced for 24 hours. Solar also requires their replacements.

The suspended ERC commis- more land compared with other sioners, as a result have not acted technologies.

AC Energy Inc., a unit of conon the pending power supply agreement applications of Ma- glomerate Ayala Corp., in connila Electric Co. with seven trast, sees an oversupply as regenerators that offered over serve margins stay above the 20 3,000 megawatts of supply. percent requirement.

“Barring any force majeure These PSAs have been pending since 2016. Power plants, ac- event, this is more than adequate cording to industry estimates, for the system. With over 3 GW (gigawatts) of power plants curtake three to five years to build.

If the construction of pending rently under construction all over plants are approved in the next the country, our supply should two years, the power sector must be enough to meet the growing find a replacement to fill in the ca- demand for the next 4-5 years,” pacities to address rising demand. AC Energy chief executive officer “We are seeing a surge in de- Eric Francia said.

DPWH‘S... From D3 It is seen to advance transport logistics and facilitate efficient delivery of goods by providing an alternative entry to NLEX, bypassing EDSA and other busy streets of Manila. Once opened, travel time from the Manila Port to the NLEX will take just 10 minutes.

“We want to fast track all infrastructure projects,” Villar said.

Slippage

To ensure efficient delivery of infrastructure, Villar has ordered the imposition of sanctions based on calculated actions on contractors with negative slippages.

“As early as when the system detects a 5 percent negative slippage—the contractor involved in the project will be given a warning and required to submit a “catch-up program” to eliminate the slippage or delay,” Villar said.

“If such slippage furthers to at least 10 percent—he will be given a second warning and required to submit a detailed action program on a twoweek basis. At any point that such contractor incurs a delay of at least 15 percent, he will be given a final warning and required to come up with a more detailed program of activities with weekly physical targets, together with the required additional input resources,” he added.

Reforms

Villar said while reforms were still being done to further improve fiscal spending, the agency’s absorptive capacity in 2017 was the highest it achieved since the start of the Duterte administration.

“In 2017, DPWH has already recorded the highest absorptive capacity at 92 percent above the 85 percent target—with P674.93 billion

in allotments and P621.94 billion in obligations incurred. This is historically the highest absorptive capacity achieved by the department,”Villar said.

“This is far higher than the 70-percent absorptive capacity recorded in 2011—at a budget far lower. Allotment then was only at P173 billion and obligations was at P121 billion,” he added.

The DPWH as of June 15, 2018, has recorded a 68-percent absorptive capacity—with P457.13 billion obligations already incurred out of the P675.27 billion obligated. This excludes the projects executed by the department outside the General Appropriations Act, such as unsolicited proposals.

“While the department is performing at its best—we learned that the problem of underspending is an institutional issue that can only be cured by institutional reforms. We need to ensure there is discipline in the planning process,” Villar said.

“The Filipino should not be held liable for the flaws in the system.

Corruption is a function of discretion and monopoly. In increasing accountability inside the system, we ensure faster budget execution and service delivery,” he said.

Villar also said the agency would fully migrate to the Infra-track System—a new monitoring system that utilizes built-in geotagging feature, satellite technology and drone monitoring.

“This will put an end to ghost project. Now, before contractor claims could be processed, before payments can be made—they would now need to submit geo-tagged photos as well as a geographic-based status reports,” he said.

“Corruption is a function of discretion and monopoly. The use of technology increases accountability and serves as a strong deterrent against any existing and future anomaly and delays,” he said.

GROWTH AND RISING INFLATION

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Stock market braces for rebound

By Jenniffer B. Austria

A

FTER the stock market entered the ‘bear’ territory in the first six months of 2018, it bounced back in July and is expected to sustain its strong rebound in the coming months.

From a record high of 9,078.37 points in January, the bellwether Philippine Stock Exchange index plunged over 20 percent in June to 6,923, as inflation rate accelerated, driven by various factors such as the implementation of package 1 of the Duterte administration’s tax reform agenda, steady rise in world crude prices and tight supply of rice.

Foreign investors have exited the Philippine equities market since February mainly because of the aggressive US Fed rate hike and the strengthening of the US dollar.

Concerns over the US-China trade war and the delay in interest rate hikes by the Bangko Sentral ng Pilipinas are hurting investors’ sentiment.

As as result, foreign investors have become net sellers by P68.6 billion as of Aug. 3, while the average daily turnover shrank to P7.2 billion.

Analysts, however, remain optimistic after the benchmark index began to recover at the

start of the third quarter. It slowly climbed back from the bear market zone to reach the 7,800-point level.

This could be attributed to the positive outlook on the domestic economy, robust domestic spending despite the implementation of package one of the Tax Reform for Acceleration and Inclusion law and strong corporate earnings.

First Metro Investments Corp. vice president Cristina Ulang said in a briefing she expected the PSEi to rally back to the 7,900 to 8,200 levels in the second half.

Ulang said one key factor that could push the market higher was the sustained growth of the gross domestic product. The economy expanded 6.3 percent in the first half, just below the government’s target of 7 percent to 8 percent.

Corporate earnings are expected to deliver a 10-percent growth this year, while the fiscal stimulus from the massive infrastructure projects the govern-

ment plans to undertake would also be a key consideration and catalyst for the equities market.

Fund raising initiatives in the capital market is also expected to recover in the second half, after a slowdown in the first six months because of the volatility in the equities market.

First Metro said capital raising this year was expected to grow by 7 percent to P773 billion, of which P220 billion would come from the equities market and P553 billion from fixed-income issues.

Online brokerage firm COL Financial is more optimistic about the market, expecting the index to hit 8,600 points by the end of the year.

COL Financial research head

April Lynn Tan said there were strong indications the market already hit the bottom at the 6,923-point level, including the magnitude and duration of the ongoing correction.

“We continue to recommend slow accumulation of a diversified portfolio of stocks using long-term money, focused on blue chips that trade at attractive valuations,” Tan said.

She said most negative developments in the local and global front were already priced in the current valuation, thus the market was just waiting for fresh catalysts before resuming an upward trek.

These catalysts include inflation moderating from its peak, corporate earnings growth beat-

ing estimates, the US Fed stopping rate hikes and US-China corporate earnings remaining strong even with the trade war.

Tan said she was also expecting the domestic economy to remain resilient and strong which would continue to favor property, financial, gaming and retail sectors.

She said despite the rising interest rates, she preferred the property sector because the rate increases remained generally acceptable which could enable real estate companies to expand their residential sales.

“The rate increases are not the kind of increases [which] aim to prevent a bubble. We not yet overheating for BSP to be aggressive in raising rates,” Tan said.

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GROWTH AND RISING INFLATION

BSP moves to stop the fall of the peso

Property developers are building major residential projects in Makati City.

Property firms still bullish despite BSP rate increase

By Jenniffer B. Austria

P

ROPERTY developers remain bullish on launching new projects this year amid the sustained strong demand from local and foreign tenants, despite the rising interest rates.

When it comes to real estate, a rising inflation is a major concern for the industry as this could eventually lead to higher interest rates. The two figures typically move in the same direction.

The Philippines has enjoyed a low interest-rate environment for several years, encouraging homebuyers to tap bank loans to purchase condominium units in Metro Manila or single-detached houses in the provinces.

With inflation rate beginning to pick up above 5 percent, the Bangko Sentral ng Pilipinas saw it wise to adjust the benchmark interest rate by a total of 100

basis points in three separate Monetary Board meetings this year. This brought the overnight borrowing rate to 4 percent.

This could be one reason the property index was down 5.25 percent as of Aug. 3.

The 1997 Asian financial crisis when many property companies suffered financially on sharp increases in interest rates, liquidity problems and excessive indebtedness still lingers in the minds of businessmen, who learned the lesson the hard way two decades ago.

Developers this time remain bullish despite the rising interest rate and are aggressive with their project launches.

Property developer Ayala Land Inc. said it would launch more projects in the second half, as the economy continued to be supportive of the property sector.

“The growth of the domestic economy continues to be supportive of the property sector. We have seen growth across-theboard in all product lines and in all market segments which we participate in. So for the balance of the year, given what we see in the economy, we are optimistic we will be able to sustain the growth we achieved in the first half of the year,” Ayala Land president and

chief executive Bernard Vincent Dy said.

Dy said while interest rates increased, the underlying mortgage rates, which are more important factors for homebuyers, did not move significantly.

“We are not seeing the impact on the consumer level and residential buyer level. The increase in benchmark rates has not translated into higher mortgage rates,” Dy said.

Ayala Land chief finance officer Augusto Bengzon agreed, saying the reason mortgage rates remained steady was the stiff competition among banks.

Bengzon said many banks were looking to increase their loan portfolio by at least 15 percent. These banks are targeting retail borrowers as well as small and medium enterprises, he said.

“If you look at the 10-year mortgage rate which has come down to 7.75 percent, banks are still able to get a better spread if they lend to the retail borrowers and SMEs. It is also profitable for them, so banks are focusing on retail market,” Bengzon said.

Ayala Land launched P39.5 billion worth of projects in the first half. Reservation sales reached P72 billion, up 17 percent year-onyear.

SEVERAL domestic and foreign factors are eroding the value of the peso against the US currency, but the Bangko Sentral ng Pilipinas’ aggressive 100-basis-point hike in benchmark interest rate could support the rebound of the local currency.

The peso dropped to a 12-year low of 53.5 against the US dollar on July 28, its lowest level in nearly 12 years. The peso lost about 6 percent of its value against the US dollar, or more than the full-year depreciation of 5.4 percent and 4.7 percent in 2016 and 2015 respectively, making it the weakest currency in Asia, excluding Japan.

Analysts are quick to point out that the ballooning trade deficit is greatly weakening the value of the peso. The trend has prompted DBS Bank of Singapore to predict that the peso may depreciate further to 54 per US dollar by the end of the year.

The trade deficit widened to a cumulative $12.2 billion in the first four months of 2018, after imports rose 10.5 percent while exports fell 6.2 percent.

This implies that more dollars are being spent overseas by importers compared with the foreign exchange earnings of exporters, resulting in the reduced supply of the US currency in the local financial market. More imports are coming in because of the demand in the local economy, partly triggered by the capital equipment requirements of the government’s massive infrastructure program.

Foreign fund managers, meanwhile, are avoiding emerging markets like the Philippines in favor of US dollar-based investment instruments. Higher interest rates in the US have made the American currency more attractive in terms of investment returns, weakening the value of the peso in the process.

Rice imports seen to tame inflation rate THE Philippines, at last, is finding the solution to rice shortage and higher prices. President Rodrigo Duterte in his third State of the Nation Address Monday asked Congress to consider as urgent the passage of the law amending the Agricultural Tariffication Act of 1996 to stabilize rice prices and address the artificial shortage.

The amendment to the law essentially calls for a straight high tariff or duty on rice imports, instead of non-tariff barriers that also make inbound shipments costlier.

Market forces eventually will decide on the price of imported rice. With more importers competing for the Philippine demand, the cost of imported rice will soon settle down and offset the high tariff.

The National Economic and Development Authority renewed its call to Congress to pass the Rice Tariffication bill, saying it will help temper inflation and improve the agriculture sector.

“There is no time to waste. All of us must rally behind the administration’s reform agenda, most especially the Rice Tariffication bill, which if implemented will make our agriculture sector competitive in the long-term,” Economic Planning Secretary Ernesto Pernia said.

GROWTH AND RISING INFLATION

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Office space to absorb record 1m sqm

By Jenniffer B. Austria

T

HE office space sector, one of the bright spots of the economy, is expected to absorb over 1 million square meters of newly-built projects this year, a record in Metro Manila’s history.

“We see the strong demand being complemented by recordhigh completion of new office buildings across the country’s capital,” property consulting firm Colliers International Philippines said in a report.

It said the growth would be supported by strong demand from business process outsourcing companies, gaming firms and traditional offices.

It said the demand from nonBPO and traditional occupants, including government agencies, banking and finance, telecommunications, construction and logistics remained robust.

“The Philippine economy is projected to grow between 6.5 percent and 7 percent per annum over the next three to six years and this should help sustain the traditional firms’ demand for office space,” said Dom Fredrick Andaya, Colliers International Philippines director for office services.

Andaya said the robust growth

reflected not just the sustained dynamism of the BPO-led services sector, but also the expansion of other key economic subsectors such as construction, telecommunications, banking and finance, warehousing and logistics and manufacturing.

Companies engaged in these businesses were compelled to expand and, thus, occupy larger and high-quality office space, he said.

Colliers said these traditional offices covered 34 percent of all transactions in the first half of 2018, or more than 250,000 square meters.

Major non-BPO deals in the first six months included stateled firms, fast-moving consumer goods, engineering, insurance, online shopping and logistics companies.

Colliers said the net take-up in Metro Manila in the first half already outpaced the full-year 2017 figure.

It said midway through

Makati central business district

2018, it recorded a net take-up of 641,000 sqm, higher than 638,000 sqm posted in the entire 2017.

Colliers said it was expecting a little over 1 million sqm of net take-up for the whole 2018, the highest in Metro Manila’s history.

“We have observed that transactions in the first six months of the year remain diversified and Colliers believes that this bodes well for the Manila office sector in

general,” Andaya said.

Offshore gaming companies are also driving the demand. In the first six months, offshore gaming firms accounted for 24 percent of total deals, taking up about 180,000 sqm of space.

Significant space was occupied by flexible space operators such as Figari, Clock In and Common Ground. This indicates the flexible space market in Metro Manila continues to thrive, according to Colliers.

Colliers said it was expecting at least 440,000 sq m (4.7 million sq ft) of additional office space to be delivered for the remainder of 2018, pushing the 2018 completion to a little over 1 million sqm.

It is expecting the completion of about 820,000 sqm (8.8 million sq ft) of new office space per year from 2019 to 2021. The Bay Area, Fort Bonifacio and Ortigas Center would corner the bulk of the new supply, it said.

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GROWTH AND RISING INFLATION

RICE FARMERS ASK FOR SUPPORT

By Yanna Agarin

T

HE government has unveiled a strategy on rice importation to tame consumer prices, after inflation rate hit a five-year high of 5.7 percent in July. Filipino farmers, however, feel left out.

The Philippine Statistics Authority linked the high inflation to the increase in prices of food and non-alcoholic beverages. Data showed that rice, the biggest contributor to the price index, climbed 5 percent year-on-year in July.

Consumer and farmer groups complained about the high prices of rice in the domestic market despite the government’s apparent efforts to reduce retail prices.

Data from the PSA showed that despite the arrival of rice imports, prices remained high, with the average farmgate price of palay (unmilled rice) reaching P21.60 per kilogram, up by 11.17 percent from a year ago.

“Prices at the wholesale and retail trades of well milled rice are also still on the uptrend,” the PSA said.

The wholesale price of well milled rice was P42.09 per kg, higher by 7.81

percent than P39.04 per kg recorded last year. At the retail level, the average price was reported at P44.81 per kg, also up 7.05 percent from the same period last year. For regular milled rice, the price hikes were observed in the wholesale and retail trades.

The average wholesale price of regular milled rice increased 9.85 percent to P38.80 kg from a year ago’s P35.32 per kg, while the average retail price rose 8.91 percent to P41.21 per kg.

Amid the surge in prices of rice, President Rodrigo Duterte said he would abolish the quota on rice importation by private traders in a bid to make sure the National Food Authority would have enough stock to provide affordable rice to consumers.

The pronouncement was opposed by farmer groups, who insisted that Turn to E3

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GROWTH AND RISING INFLATION

Weak peso both boon and bane

HE Philippine peso dived to a 12-year low of 53.50 against the US dollar in July 2018. While it pushed consumer prices upward, the peso depreciation supported the competitiveness of the business process outsourcing sector and increased the spending prowess of overseas Filipino workers and their families.

The local currency has been battered by the surging US dollar over the past few months, as financial markets anticipated the US Federal Reserve to further hike interest rates.

Private economists see the peso depreciating to 53.03 in August, as the country’s trade deficit continues to widen. Latest data from the Philippine Statistics Authority showed the trade-in-goods deficit in June 2018 increased to $3.35 billion from a $1.59-billion deficit a year ago, as imports continued to exports.

Merchandise exports declined 0.1 percent from $5.704 billion in June 2017 to $5.700 billion in June 2018. Imports rose 24.2 percent to a record $9.05 billion in June from $7.29 billion a year earlier.

The data brought the trade deficit in the first half of 2018 to $19.10 billion, higher than the $11.75-billion trade gap a year ago.

Economists from First Metro Investment Corp. and University of Asia & the Pacific said the solid upswing in the US economy (with the US recording its lowest unemployment rate in 18 years, adding a monthly average of 200,000 jobs in 2018) provided further strength to the US dollar, while widening Philippine trade deficits added pressure to the peso.

The peso will continue to feel the heat as the US economy [and dollar] roars ahead and as long as the domestic economy manages to whittle down significantly its trade deficit, while inflation concerns should ease, they said.

First Metro said while the peso depreciation might seem negative, its impact in both the short and medium terms was positive.

“First, the US dollar has been strengthening

since end of the first quarter of 2018 due to several reasons: The IMF projects the US economic growth to accelerate to 2.9 percent this year compared to 2.3 percent in 2017,” they said.

Apart from the growth momentum, they said the effects of President Donald Trump’s tax cuts would be felt by individuals and corporations starting the second quarter of 2018.

The same tax reform tries to attract back to the US some $2 trillion of cash held by US multinationals abroad. Even if only half of that returns to the US, that would add significant demand for the greenback, they said.

The economists said foreign stock and bond investors were selling off their pesodenominated financial assets as they stand to lose with the peso depreciation. Foreigners have been net sellers in the local stock market by a total of P52 billion from February to May this year.

The economists said the peso actually appreciated 4.6 percent from 2004 to June 13, 2018, while Indonesia and Vietnam had large cumulative depreciations in excess of 40 percent during the same period. Malaysia also showed a net depreciation during the period.

The peso depreciation also has positive effects for the country. The most obvious effect is discouraging imports and producing more exports, thus, reducing the trade deficits over the medium term. And because of the increase in production locally, it will boost employment generation, they said.

The second positive effect is that it will give

a boost to the peso income of OFW families, exporters and those that supply raw materials to exporters, they said.

There are about 10 million OFWs and with an average family size of 4.6, the peso slide benefits some 46 million Filipinos. Add to that the number of families dependent on exports, which account for 30 percent of GDP, plus those that supply raw materials to exporters, we can easily conclude that a vast majority of Filipino families benefit from the higher peso-dollar exchange rate, according to First Metro and UA&P. The peso posted its weakest level this year at 53.53 per greenback on July 19, 2018, a 12-year low since it settled to 53.55 a dollar on June 29, 2006. The peso hit an all-time low of 57 a dollar in August 2004.

Philip Wee, foreign exchange strategist of DBS Group Research, said in a report Asian currencies were facing depreciation pressures because of monetary policy divergences that supported the US dollar globally.

The US Federal Reserve increased

interest rates just recently and signaled that more increases were on the way this year, as officials expressed confidence that the world’s largest economy was strong enough for borrowing costs to rise without hindering economic growth.

DBS Bank of Singapore predicted the peso might depreciate further to 54 a dollar by the end of the year given the ballooning trade deficit.

Australia and New Zealand Banking Group Ltd. said the peso might close the year at 53.50 because of the widening current account deficit.

The Bangko Sentral expects the current account deficit this year to hit $700 million. The current account is one of the main components of the balance of payments.

In 2017, the country’s balance of trade in goods deficit widened to $29.786 billion from a $26.702-billion gap in 2016.

The BSP also signaled it was ready to prevent the further slide of the peso, after it increased the benchmark borrowing rate by 50 basis points on Aug. 9.

Julito G. Rada

Surging inflation dampens Filipino consumers’ sentiment

By Othel V. Campos FILIPINO consumers have been coping with the rising costs of goods and services over the past seven months. The impact was most felt by the poor.

The 11.1 million self-rated poor Filipinos saw their daily living expenses increase this year, as prices of basic goods and commodities swelled amid the implementation of package 1 of the Tax Reform for Acceleration and Inclusion law.

Consumer advocacy group Laban Konsyumer Inc. said the Train law had an all-encompassing effect on prices of goods.

“There’s no other economic policy implemented in the wake of 2018 but the Train Law. The law has direct and indirect impact on the price of goods with price hikes particularly felt by the poor,” said Laban Konsyumer president and former Trade undersecretary Victorio Dimagiba.

Dimagiba said this was exacerbated by surging prices of world crude.

He said when Congress enacted the Expanded or Reformed Value Added Tax to 12 percent under Republic Act No. 9337, the law added mitigating measures “to lessen or minimize its impact on consumers.”

It reduced to zero the excise taxes on kerosene, diesel, LPG and bunker fuel, or the so-called “socially sensitive products.”

“The Train law removed those zero excise taxes and on top of the 12-percent VAT. The Train law is, thus, called by many as anti poor. The point is that they took the gamble that the excise tax in petroleum will not impact on cost of goods and services. But as figures show, it did. It also impacted on consumption. Now, where and how do we pick up the slack?” he asked.

Dimagiba said while world crude prices started their descent, it never affected the behavior of the Philippine inflation rate.

July inflation climbed to a five-year high of 5.7 percent in July from 5.2 percent in June, data from the Philippine Statistics Authority showed.

“When they made assumptions for 2018 to 2022 , they assumed that Train 1 will pass the bicameral deliberations. For me, they assumed a very, very optimistic inflation rate. They had been overconfident that inflation will stay at the vicinity of 2 to 4 percent in the entire 2018. That’s the same optimistic forecast they had in 2017. They were so positive that Train 1 will not impact on inflation, but that did not happen,” he said.

The consumer confidence index was also on a downhill as it declined 1.7 percent in the first quarter of 2018 from (0.5 percent in the last quarter of 2017).

Consumers said in a report that most of their take-home pay was spent more on electricity, food, nonalcoholic and alcoholic beverages, fuel, water and transportation.

“What is even worse, after Train 1 is not just Train 2, but the shifting of characters of the sectors affected by these measures. Hoarding is a problem that has been at play even before these measures came about.

Smuggling could come into play also, but like hoarding, it has been there ever since. This time around, I see more hoarders and smugglers who will take their chances for better market prices,” Dimagiba said.

GROWTH AND RISING INFLATION RICE... From E1 for a rice-consuming country with an increasing population like the Philippines, rice self-sufficiency remained the only viable option.

“Any discussion on the prospect of the rice industry should look into the relatively thin world rice market and, recently the impact of extreme weather situation as major considerations,” the Samahang Industriya ng Agrikultura said.

Sinag executive director Jayson Cainglet expressed concern over the government’s plan to rely on imported rice. “The tradeable rice in the global market is thin.

Less than 10 percent is available, 30 percent of which are already reserved for China,” he said.

Caingletsaidglobalriceproduction was pegged at 622.8 million metric tons annually. Of these, only 45.8 million MT were tradeable, with China securing 30 million MT. “This means that less than 8 percent of the rice produced globally is available in the world market. This relatively thin market means that rice supply [and rice prices] has tended to be more unstable in recent years,” he said.

Cainglet reminded the government of the 2008 rice price crisis when global prices of rice soared to as much as $800 to $948 per metric ton, from $400 per metric ton in the previous years. This, he said, was due to the imposition of temporary export bans/restrictions of rice exporting countries and the ensuing panic

buying of rice importing countries like the Philippines.

“The 2008 rice price crisis should already be a wake-up to us all on the vulnerability of the global rice market. It is ridiculous, if not outright despicable, that a country with the capacity and history of producing its own staple to rely instead on a very volatile and unstable international market. Reliance on imports with thin supply will only increase prices in the long run, not lower it,” said Cainglet.

Cainglet said his group was deeply concerned on the attempt to rely on rice imports in the era of tarrification.

The proposed Rice Tariffication bill is one of the government’s initiative to stabilize rice prices and address the supposedly “artificial shortage” created by rice hoarders and cartels.

House Bill 7735, also known as the “Revised Agricultural Tarrification Act,” aims to protect local farmers and consumers by imposing tariffs in lieu of the quantitative restrictions on imports.

Under the proposed bill, the Philippines’minimum access volume will go back to 350,000 metric tons from the current 850,000 metric tons. The bill also proposes a tariff rate of 35 percent for imported rice coming from the Association of Southeast Asian Nations.

The bill also seeks to impose a 40 percent most-favored nation tariff rate for in-quota rice coming from non-Asean countries and a 180-percent percent tariff rate for shipments outside the MAV.

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E3

High inflation reflects strong local demand

By Othel V. Campos

A

FASTER inflation rate partly reflects the strong domestic demand and the country’s capacity to sustain its economic growth in the coming years, according to a Cabinet official.

“This might sound insensitive to many of us, to see inflation as a way to prepare for the future, but to us and the builders of the nation, a certain level of inflation will help the economy to expand and grow resilient,” said Trade Secretary Ramon Lopez.

“A n d w h a t s h o u l d b e highlighted, of all things, is that growth is here and is coming into play,” said Lopez.

What is even better, according to Lopez, is that inflation is being used to drive the importation of goods for the ‘Build, Build, Build’ infrastructure program and the public-private partnership projects.

He said capital and intermediate goods were now in great demand, with the ongoing big-ticket infrastructure projects.

The appetite to bring in capital and intermediate goods was fueled by the increasing foreign direct investments in the country, he said. Capital and intermediate

goods are the raw materials for production.

“Every Cabinet members understand these are all capital expenditures for future expansion, so higher inflation is okay. For instance you can expect that in any manufacturing project, one needs to invest for capital equipment heavily. We want to build our manufacturing. This is the right time,” the trade chief said.

What is important at this juncture, he said, is that growth borne out of inflation was going to a productive activity, instead of driving consumption.

The government sees more capital expenditures to boost economic activities. This will also help prop up exports, he said.

“We need continuous growth for manufacturing as contributor to the gross national product.

Admittedly, we were not able to invest in manufacturing. More investments in capital equipment will help boost and build and export economy,” said Lopez.

As inflation rate hit a five-year high of 5.7 percent in July, the government expects a gradual deceleration in the coming months.

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GROWTH AND RISING INFLATION

BSP delivers strong monetary response

By Julito G. Rada

T

HE Bangko Sentral ng Pilipinas delivered its strongest monetary response in 10 years to combat the rising inflation rate and the peso depreciation.

The Monetary Board, the policy-making body of the BSP, raised by a rare 50 basis points the overnight borrowing rate to 4 percent on Aug. 9, after inflation rate accelerated to a fiveyear high of 5.7 percent in July.

The interest rates on the overnight lending and deposit facilities were also raised accordingly.

The Monetary Board said it deemed stronger monetary action was necessary to rein in inflation expectations and prevent sustained supply-side price pressures from driving further second-round effects, even as the previous monetary policy responses continue to work their way through the economy.

The Monetary Board’s 50-bps hike was the third adjustment this year, following the 25bps increase in May and another 25-bps hike in June. Overall, the board increased by 100 basis points the policy interest rates this year. “The Monetary Board believed that the series of policy rate adjustments thus far in 2018 will help reduce further the risks to inflation, including those emanating from the ongoing normalization of monetary policy in advanced economies and its impact on the foreign exchange market, and bring inflation toward a target-consistent path over the medium term. Favorable conditions arising from sustained domestic growth also suggest that the economy can accommodate a further tightening of monetary policy settings,� the BSP said in a statement.

It was the first time in 10 years that the BSP increased the policy rate by 50 basis points, since it delivered a 50-bps hike on July 17, 2008 after inflation reached 12.2 percent during the

global financial crisis.

The Monetary Board decided that the 50-bps hike in policy rate was the most appropriate measure in its tool kit to temper the accelerating inflation.

Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. said the board was keeping the reserve requirement ratio for banks at 18 percent for the rest of the year after two cuts early this year.

However, he said the reserve requirement cut may resume next year, in line with his goal of reducing it to a single digit within his term as BSP governor.

In deciding on the latest interest rate adjustment, Espenilla said the Monetary Board noted that latest baseline forecasts shifted higher over the policy horizon, indicating some risk of inflation exceeding the target in 2019.

He said upside risks also continued to dominate the inflation outlook as the sustained increase in core inflation suggested broadening price pressures amid resilient aggregate demand conditions.

The Monetary Board also reaffirmed its support for carefully coordinated efforts with other government agencies in implementing non-monetary measures to further mitigate the impact of supply-side factors on inflation.

The BSP adjusted upwards the inflation forecasts for 2018 and 2019. The forecast for this year was increased to 4.9 percent from the estimate of 4.5 percent made during the June 20 meeting. The forecast for 2019 was likewise raised to 3.7 percent from 3.3 percent previously. The board also announced the 2020 inflation forecast at 3.2 percent.

Bangko Sentral Deputy Governor Diwa Guinigundo said the board took into consideration four factors in adjusting the inflation forecast for 2018. These were the increase in jeepney fares (which was granted by the in the National Capital Region, Regions 3 and 4), water rate increases, increase in excise taxes for tobacco and higher oil prices.

Espenilla expressed optimism that the rate hike could prop up the peso.

He said it was premature to make further statement on the peso at the moment, saying any movement

by monetary authorities should be guided by pertinent economic data.

ING Bank Manila senior economist Joey Cuyegkeng said the BSP delivered an aggressive policy response to anchor inflation expectations as it signaled last month. He said the move also supported the peso, which had contributed to rising inflation.

The inter-agency Development Budget Coordination Committee earlier adjusted upward the inflation forecast in 2018 to a range of 4 percent to 4.5 percent from the previous estimate of 2 to 4 percent.

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Toll roads, airports, railways equal jobs

By Darwin G Amojelar

T

OLL roads, railways and other infrastructure projects generate jobs and the Philippines will need more of them to lift majority of the Filipinos out of poverty.

The Department of Transportation clearly sees the connection, vowing to complete all infrastructure projects worth hundreds of billions of pesos by the end of President Duterte’s term.

“We are going to complete all the projects, (if not all, many). I will be happier if all the projects will push through, not for me, not for you, not for them but for everybody,”Transportation Secretary Arthur Tugade said.

“This administration, through the strong leadership of President Duterte, is on target. Investments in construction grew by 10.1 percent in the first quarter of 2018. Public construction expanded by 25.1 percent,” Tugade said.

He said the increase in infrastructure spending was expected to create around one million direct and indirect jobs annually.

The Department of Budget and Management said spending for infrastructure and other capital outlays rose 41.6 percent to P352.7 billion in the first half of the year from P249.1 billion year-on-year.

“Build Build Build is Jobs Jobs Jobs. This is providing life to our nation. Unemployment has already decreased to 5.5 percent from 5.7 percent, year-on-year. We expect this figure to shrink further,” Tugade added.

DOTr’s big-ticket infrastructure projects include the P227-billion Mega Manila Subway, P105.31-billion PNR North Phase 1, P150-billion PNR Phase 2, P130-billion PNR South Commuter Rail, P151-billion PNR South Longhaul and the P31.50-billion Mindanao Railway from Tagum and Davao City to Digos.

About 468,000 jobs were generated in the construction sector based on a Labor Force Survey conducted by the Philippine Statistics Authority in April 2018.

“We are elated with the strong performance of the construction sector.

Mactan-Cebu International Airport Terminal 2

In April 2018, total employment in the sector reached 4.012 million from 3.544 million during the same period in 2017. This is a 13.2-percent increase,” Labor Secretary Silvestre Bello III said.

Employment in the construction sector stood at 3.381 million at the start of the Duterte administration in 2016.

Largest contributor

“Construction is the largest contributor to employment among the industry sub-sectors during the period and we believe the Build Build Build infrastructure program is the main driver of

growth,” Bello added.

Department of Public Works and Highways Secretary Mark Villar said the “Build Build Build was gaining momentum at an unprecedented rate,” noting that more jobs were generated during the first two years of the Duterte administration compared to the previous five years.

“In the first quarter of 2018, the gross value added in donstruction is at 9.3 percent,” he said.

The DOTr also said it completed 129 commercial port projects under the Philippine Por ts Authority, and four social/tourism ports under its Maritime Sector, in

the last two years.

Tugade said better port facilities would strengthen tourism in the country and bolster the Philippines’ appeal as a cruise destination.

He said all these were done to fulfill the government’s promise of improving the lives of the public by providing them with facilities to enable them to have a comfortable and efficient travel and transportation.

Philippine Ports Authority general manager Jay Daniel Santiago said the government was pouring in billions in the next five years to improve and modernize ports in the country.

GROWTH AND RISING INFLATION

US-China trade war may deter PH growth

Dominguez

Espenilla

By Julito G. Rada

E

XTERNAL developments always pose a threat to the Philippine economy and the current trade friction between the world’s two leading economic powerhouses— the United States and China—is no exception.

Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said the first-round impact of the trade war could be minimal, but its further escalation could be another story. “... Looking at the items that will be affected... based on the initial list... that means aluminum, iron, steel. Our exports and imports from the US and from China are very negligible. That’s the first-round effect... no significant impact on us,” Guinigundo said.

... From our perspective, we just have to be ready. I think preparation is very critical.

“But if it reaches the second and third rounds, when economic per formance of the countries involved like China, Japan and even the US is considered, then the impact could be more significant...,” Guinigundo said.

He said any “constriction” in trade could result in the country’s net exports to go down. He said negative net exports would eventually pull down economic growth.

He said the government’s move of diversifying the country’s export markets from its traditional trading partners was a good vital step to avoid the expected adverse impact of a full-blown trade war. “... From our perspective, we just have to be ready. I think preparation is very critical. And we have been doing it, we have been trying to diversify the source of our imports and the markets for our exports,” he said.

“Export market has been diversified actually with veering away from US and Japan in favor of intra-Asean trade. That has become very important... Diversification of market both exports and imports of course, greater competitiveness among our exporters and importers and the rest of the industr y,” Guinigundo said.

The US in July imposed a 25-percent border tax on $34 billion worth of Chinese goods shipped into the US. In response, China levied tariffs on $34 billion worth of imports from America.

Economists said the tariffs and counter-tariffs could have a major negative impact on consumers and global economies.

Bangko Sentral Governor Nestor Espenilla Jr. said any escalation in the ongoing trade friction between the US and China would do more harm than good because it would limit opportunities in the global trade environment.

Espenilla said if the situation worsened, the trade war could obviously affect the Philippines because the country had been trading with many other countries.

Finance Secretar y Carlos Dominguez III echoed Espenilla’s observation.

But Espenilla expressed optimism the Philippines would remain resilient going forward despite these global developments, citing the Philippines’ solid and strong macroeconomic fundamentals.

Dominguez also cited the economy’s strength, namely the just implemented tax reforms, increased foreign direct investments and a significant rise in public spending in the first two years of the Duterte administration.

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Small businessmen shrug off rising inflation, remain upbeat

By Othel V. Campos

S

URGING inflation has dampened the spirit of small businessmen but they remain optimistic the Philippines will weather the latest blip in the economy.

When the inflation rate in July rose to 5.7 percent, the country’s largest groups of businessmen and micro, small and medium enterprise despaired. They could not help it but raised their hopes that consumer prices would taper off.

Philippine Chamber of Commerce and Industry chairman emeritus Francis Chua believes the inflation rate will soon reach its peak and make a gradual descent.

The business sector, he said, though bracing for things to come, remained upbeat the Philippine inflation would abate to give industries a degree of stability to recoup production costs, profit a little and expand, if possible.

From 4.6 percent in May, the inflation rate in June rose 5.2 percent and reached a five-year high of 5.7 percent in July.

Many sectors quickly blamed the Tax Reform for Acceleration and Inclusion, or TRAIN, law but businessmen like Chua were positive that once fully rolled

out, the measure would stabilize the economy and prices.

Chua said the law had not even scratched the surface of all the reforms needed to stabilize the economy.

Chua downplayed the increase in demand for goods and services that normally occurs in the last quarter of the year, saying higher consumer spending would neutralize the expected rise in prices and demand.

He added the Bangko Sentral ng Pilipinas was taking monetary actions to help bring down inflation rate to tolerable levels.

The country’s exporters, meanwhile, said it was important to keep inflation down to help sectors vulnerable to the fluctuation of prices.

The private sector, especially the exporters’ group Philippine Export Confederation, says rising inflation rate must be checked to make local manufacturing and export activities more competitive.

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INVESTMENTS, JOBS BOOST ECONOMIC EXPANSION

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OREIGN investments that translate into more jobs are supporting growth, reflecting the confidence of businessmen on the country’s macro-economic fundamentals.

Foreign direct investment inflows reached a record $10 billion in 2017, up 21.5 percent from the previous year and almost double the rate in 2015.

Latest data from Bangko Sentral showed FDI net inflows in the first five months of 2018 sustained the gains in 2017, surging by 49 percent to $4.8 billion from $3.3 billion year-on-year.

Net inflows of foreign direct investments in May jumped 142.9 percent to $1.6 billion from $677 million a year ago.

Finance Secretar y Carlos Dominguez III noted that the Depar tment of Trade and Industry had sustained its efforts in achieving the ambitious goal of putting the country in the top 20 percent in the ease of doing business rankings. “ With all our effor ts at simplifying processing, speeding up approvals for startups, and reducing red tape, this should be an achievable goal,” Dominguez said.

The Philippines’unemployment

rate, meanwhile, dropped to 5.5 percent, down by 0.2 percent from the same period last year with 625,000 jobs created.

About 605,000 Filipinos were employed in manufacturing and construction.

Economic Planning Secretary Ernesto Pernia said investments and the government’s massive infrastructure program “Build, Build, Build” should contribute to economic growth in the succeeding quarters and years.

The government expects to spend as much as 7.3 percent of the gross domestic on public infrastructure by 2022.

The government envisions the completion of 32 of 75 flagship projects by the end of 2022, while making sure the 4,909 other

projects in the provinces and towns across the Philippines will have broken ground by then.

Pernia said while the inflation rate was slightly off target due to the rise in prices of rice, fuel, and fish, it would be temporary as the government transitioned towards fully-implementing important public policy reforms.

Lower unemployment

Pernia said the unemployment rate from the April round this year was down to 5.5 percent from a year ago’s 5.7 percent, the lowest for all the April rounds of the Labor Force Survey in the past decade.

This put the unemployment rate in the first half of 2018 at 5.4 percent, continuing its downward trend over the years.

“Rapid economic growth has also translated to significant gains with 1.52 million additional employment generated in the first half of the year, well on track to achieve our target of 900,000 to 1.1 million employment generation in 2018,” he said.

Pernia said the government exceeded its target of reducing the underemployment rate in areas outside the National Capital Region, which was down to 17.1 percent in 2017.

“Moreover, emerging numbers tell us that we remain on target this year—underemployment rate in areas outside the NCR was at 18.8 percent in the first half of 2018. This is consistent with our goal of spreading growth to the regions,” he said.

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BPI is focusing on helping self-employed microentrepreneurs (SEMEs), most of whom have no bank accounts, through BPI Direct BanKo, its microfinance arm.

BPI overhauled its consumer loan processes in 2017 to improve turnaround times for auto and housing loans.

Growth-generating giant: How BPI fosters an inclusive economy

By MJ Blancaflor and Dexter Tilo

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NCLUSIVE economic growth is desired by all sectors in society, and financial institutions are taking part in making this possible.

This desire has kept the Bank of the Philippine Islands (BPI) busy improving its products and services to make wealth creation more accessible to Filipino households.

Established in 1851, BPI has been inextricably linked to our country’s economic growth. With its commitment to Clients, People, Shareholders, and Country, the bank has taken advantage of the country’s economic growth to offer what Filipinos need.

It is BPI’s vision to become the country’s most inclusive bank. It aims to provide the most innovative solutions that satisfy clients’ financial needs, while creating shared value and prosperity for all stakeholders.

SUPPORTING THE UNBANKED, ENTREPRENEURS The present administration has made the micro, small and medium enterprises (MSMEs) a priority, recognizing this sector as a significant force in generating jobs and driving the country’s economy. As a result, government financial institutions were directed to develop financing options for MSMEs to reduce their dependence on informal lenders.

On the other hand, private financial institutions were asked to provide options to help MSMEs. BPI has heeded the call of the government, focusing on helping self-employed microentrepreneurs (SEMEs), most of whom have no bank accounts, through BPI Direct BanKo, its microfinance arm.

BanKo now has over 10,000 clients and more than Php 559 million in loans to clients as of end 2017. It uses a more traditional inperson business approach through financial advisors called BanKoMares and BanKoPares, who go out to wet markets and small business owners who need financing.

BanKo ended 2017 with 103 branches and micro-banking offices. It aims to reach 200 branches nationwide by the end of the year.

Earlier this year, BPI also launched its Business Banking group to sharpen its focus on the unique financial needs of clients, particularly the SMEs. The Business Banking Group will cater to over 100,000 BPI clients that maintain deposits, but, for the most part, do not avail of other financial services, including business loans. SME loans currently account for less than 10% of the Bank’s total loan book.

The Bank intends to further invest in its microfinance and SME business to tap opportunities in the growing market for the unbanked and underserved microfinance segment, as well as the thriving SMEs who still fail to take full advantage of loans available to them.

All this, ultimately, will help support inclusive growth for a more resilient society.

AUTO AND HOUSING LOANS FOR ALL The recently enacted Tax Reform for Acceleration and Inclusion (TRAIN) Law effectively reduced personal income tax rates and has resulted in higher disposable incomes for Filipino taxpayers. In turn, the Bank expects stronger growth in the consumer lending market through BPI Family Savings Bank.

Since the Philippines has a growing digitally-savvy population, BPI invests heavily in technology.

Recognizing that the Philippine economy is consumption-driven, BPI overhauled its consumer loan processes in 2017 to improve turnaround times for auto and housing loans. The impact of its improvements for the auto and housing loans is expected to be realized this year.

In 2017, BPI has registered P12.2 billion in total loans for affordable housing. The auto loans business catered to 102,000 clients in the same period.

Its card business (credit, debit, and prepaid) has also benefited from smart analytics that enhances origination, credit scoring, and fraud detection to improve security. It has over 9 million cardholders, and P206 billion in transactions across all card types.

At the present, the oldest bank in Southeast Asia is ready to capture a larger share in the retail business covering auto loans, housing loans, and consumer loans through its credit, debit and prepaid cards.

LONG-TERM DIGITALIZATION JOURNEY The Bank has the future in mind. Since the Philippines has a growing digitally-savvy population, BPI invests heavily in technology, both front-end and back-end processes to significantly improve operational efficiency, security, access and overall customer experience.

It is the pioneer and leader in local mobile and internet banking. In fact, for the past three years, the total number of unique users of the BPI Mobile App has steadily increased, growing 28% just for 2017. The BPI will continuously provide quality service to the growing number of clients

who access the Bank through its mobile app and online facility. In 2017, the uptime rates for mobile banking, express phone and ELink/ BizLink reached 99.5%, 100% and 99.43%, respectively.

“We recognize the importance of building strong digital capabilities by enhancing client access points, as well as improving our back-end systems to spur better productivity, automation, and cost-efficiency. This long-term digitalization journey will complement our physical branches, enabling a more efficient and convenient self service banking experience while enhancing face-to-face interaction at the branches for our clients’ more complex needs,” said Ramon Jocson, BPI Executive Vice President and Head of Enterprise Services Segment.

PROVINCIAL EXPANSION Gross Regional Domestic Product (GRDP) outside Metro Manila has mostly been growing since 2014, especially in the Eastern and Central Visayas, Central Luzon, and Davao Region.

However, poverty and inequality are still present across the regions.

The government is committed to addressing these problems by redirecting investor focus outside Metro Manila, particularly the underdeveloped regions in Visayas and Mindanao.

“We are cognizant of the need for financial services in the provinces, especially in underdeveloped regions, and the long-term potential that this need implies,” said Cezar Consing, BPI President and Chief Executive Officer. “That is why we continue to expand our branch network to key growth areas nationwide, at the same time, intensify our push towards digital financial channels and services for better access to more Filipinos.”

In 2017, the Bank has opened 111 more BPI, BPI Family Savings Bank, and BanKo branches and MBOs, a 13% increase from 2016. The total number of clients in both retail and corporate

segments rose to 8.5 million, a 6.6% growth.

According to its Integrated Report last year, there are 942 branches and MBOs across the archipelago, while there are 3,105 ATMs & CAMs, or Cash Accept Machines.

INDUBITABLE GROWTH With 167 years of providing top notch financial services, the first bank in the country and in Southeast Asia has grown its assets to Php 1.9 trillion as of 2017. It has the highest profitability ratios among local banks, with a Return on Equity of 12.75% and a Return on Assets of 1.27% in 2017.

It has received numerous awards, too, including the top spot in the Top Investment Houses of Asian Local Currency Bonds based on the number of votes received from top-rated analysts, economist and strategists, salespeople, and traders.

BPI’s strategy centers on expansion tempered with financial prudence and risk management.

After focusing on efficiency for several years, BPI is embarking on an ambitious growth journey anchored on four strategic priorities: the SME business through the newly-launched Business Bank, the retail and consumer finance business under BPI Family Savings Bank, financial inclusion through BPI Direct BanKo, and digitalization, which cuts across the rest not only through the channels but also the frontend and back-end facilities.

Digitalization, according to Consing, is a key component of financial inclusion, which is all about making financial services available to every Filipino.

“We intend to digitalize the bank further because only by digitalizing further can we actually become much more financially inclusive,” Consing added.

As a leading bank in the country, BPI hopes that, through its strategic priorities, it can create a foundation for robust and inclusive economic growth for the Philippine nation.

GROWTH AND RISING INFLATION

Economic team wary of planned shift to federalism

A

FEDERAL system of government may be ideal in making growth inclusive, but the pending versions in Congress lack the clear mechanics in making economic growth sustainable.

T h e c o u n t r y ’s e c o n o m i c managers fear that a federal form of government might have dire economic consequences in the long run, especially since the draft federal constitution contains ambiguous provisions on the allocation of expenditures for the would-be federated government and its federated regions.

Finance Secretar y Carlos Dominguez III called for further discussions on the issue, saying the economic team has the responsibility to point out the unclear provisions in the proposed draft charter “especially when the possible repercussions could result in dire, irreversible economic consequences.”

“We welcome a discussion on the draft so that it is clear and unambiguous. We do not want the revenue assignment and the expenditure assignment to be misunderstood, as what happened in the recent case involving the Internal Revenue Allotment (of the local government units),” Dominguez said.

He said while the draft Charter contained provisions on the taxation powers of the Federal Government and the Federated Region and a provision on revenue assignment in which the regions would be given a 50-percent share in income, excise, value added taxes and customs duties,

“there is no provision on expenditure assignment.”

The draft Constitution enumerated the exclusive powers of the Federal Government and the Federated Regions but was silent on the funding source for the exercise of the powers, he said.

“As we pointed out earlier, we never stated that we are against federalism. Rather, with respect to the fiscal provisions of the proposed Constitution, there are ambiguous provisions on revenue assignment and there are no provisions on expenditure assignment,” the Finance chief said.

“There are, likewise, principles on revenue sharing that do not appear to be well studied.”

Dominguez cited that while the draft Constitution provided for an Equalization Fund, which should not be less than 3 percent of the annual General Appropriations Act, it did not state if this would be taken from the share of the Federal Government or of the Federated Regions.

The Equalization Fund refers to the allocation for the federated regions that would be distributed based on the needs of each region, with priority given to those that require greater support to achieve financial and economic sustainability as determined by a “Federal Intergovernmental Commission.” Julito G. Rada

IMF, Moody’s Investors give PH economy seal of approval TWO international financial institutions have given the Philippines a good housekeeping seal of approval. The separate endorsements from the International Monetary Fund and global debt watcher Moody’s Investors Service are a clear indication that the macro economic fundamentals of the Philippines remain solid despite the high inflation rate.

The IMF kept its 2018 growth forecast for the Philippines at 6.7 percent, although it warned that rising inflation and external developments such as the trade tension between bigger economies might threaten sustained expansion.

IMF mission chief Luis Breuer noted that the Philippine economy was performing well. Real GDP [gross domestic product] grew 6.7 percent in 2017, with his team predicting that rate will be sustained in 2018 and 2019, “underpinned by strong consumption and investment, including public investment.”

“The Philippines has been one of the region’s strong economic performers over the past years, reaping the fruits of prudent policies and critical reforms. The team welcomes the authorities’ strategy of maintaining policy continuity while adapting to emerging challenges and taking advantage of the strong economy to implement reforms to improve inclusive growth and job creation. This strategy has served the Philippines well,” says Breuer.

M o o d y ’s s h a r e d t h e s a m e observation. Strong GDP growth, it said, could accelerate even further, especially if the gover nment achieved higher spending on infrastructure. I t also expects further progress “on improving government revenue on the back of additional reforms and ongoing enhancements in tax administration, which would also help keep government debt stable.” “ The credit profile of the government of the Philippines [Baa2 stable] is supported by a large and fast-growing economy and continued gains in debt affordability, in part because of revenue reforms,” the rating agency said.

The support from the two financial institutions validated the painful reforms the Philippines implemented in the past to keep the economy afloat. The expanded value-added tax during the term of former President Gloria Macapagal Arroyo and the business-friendly policies during the time of ex-President Benigno Aquino III cemented the gains of the economy. President Rodrigo Duterte’s ‘Build, Build, Build’ program and the recent tax reform package that Congress passed are making the economy stronger.

The government now faces the challenge of creating the trickledown effect to make the economic gains inclusive to the poor and the marginal sectors.

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Govt paves road to development

By Darwin G Amojelar

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HE Public Works Department is paving more roads to development, by undertaking massive projects the country has not seen before.

Data from the agency showed that since the start of the term of President Rodrigo Duterte in July 2016, the DPWH widened 1,908 kilometers of roads, built 328 km of bypasses and diversion roads, 393 km of missing gaps connecting national roads and 1,316 km of access roads leading to airports, seaports/Ro-Ro ports and tourist destinations.

“DPWH has also widened a total of 511 bridges spanning 23,929 meters, replaced 204 bridges, spanning 8,305 meters and built 127 new bridges spanning 6,260 meters,” Public Works Secretary Mark Villar said.

“We have also rehabilitated 939 bridges spanning 40,192 meters and strengthened 642 bridges, spanning 29,260 meters,” he said.

Villar said the construction was happening in every region in the country as part of President Duterte’s call to spread development nationwide.

He said that by 2022 , the Duterte administration would have constructed the Luzon Spine Expressway Network—a network of highstandard highways with a total length of 834.72 km, or about twice the six of 382 km of existing expressways.

“Once completed, travel time from Metro Manila to San Fernando, La Union will be reduced from 6 hours and 55 minutes to 3 hours and 10 minutes. Moreover, travel time from Ilocos to Bicol will be reduced from 19 hours and 40 minutes to 8 hours and 15 minutes,” Villar said.

“We are on target. We have already opened several sections of the Tarlac-Pangasinan-La Union Expressway, the Arterial Plaridel Bypass Project, the Laguna Lake Expressway and the Radial Road 10,” he said.

“Within the year, we expect to open the NLEx Harbor Link Project, which will connect McArthur Highway and C3 and reduce travel time from Quezon City to Manila to only 10 minutes,” Villar said.

Villar said the Inter-Island Linkage Project—a network of short and long span bridges which would allow land travel from Luzon, Visayas and Mindanao, is also in advanced stages.

“In October 2018, we will start the construction of the 3.77-km Panguil Bay Bridge that will connect the city of Tangub in Misamis Occidental to the municipality of Tubod in Lanao del Norte,” he said.

“Once completed in 2021, it will only take 10 minutes to reach Tangub City from Tubod using the bridge compared to the 2.5 hours it would take using the 102-km route via the Tubod- KapataganMolave-Tangub road,” he said.

“Travel time between Ozamiz City, Misamis Occidental and Mukas, Kolambugan, Lanao Del Norte will be reduced from 2.5 hours using Ro-Ro operations to 20 minutes using the Panguil Bay Bridge,” he said.

Also included in this network is the BataanCavite Interlink, the Mindoro-Batangas Super Bridge, the Panay-Guimaras-Negors Link, the Negros-Cebu Link Bridge, the Panguil Bay Bridge, the Guicam Brdige, the Camarines-Catanduanes Friend Bridge, the Luzon Sorsogon-Samar Link Bridge and the Davao Samall Bridge.

Amid the construction binge, the Labor Department reported a year-on-year increase of 468,000 jobs generated in the construction sector, based on a survey conducted by the Philippine Statistics Authority in April 2018.

Public Works Secretary Mark Villar (second from right), together with Transportation Secretary Arthur Tugade (right) lead the opening of an additional 700 meters of two-lane concrete pavement along Laguna Lake Highway (formerly C-6 Dike Road).

Duterte wants third telecom player to break duopoly T H E Duter te administration wants to deliver on its promise to provide reliable and affordable telecommunication services to Filipinos, as it pushes for the entry of a new major player to complete with the duopoly.

President Rodrigo Duterte, in his 3rd State of the Nation Address, pledged to bring in a new telco player to ensure that the country’s telecommunications services are reliable, inexpensive and secure.

“A draft terms of reference for the entry of a new, major industry player is at hand. The terms will be fair, reasonable and comprehensive.

It will be inclusive so it will be open to all interested private parties, both foreign and local,” Duterte said.

“The only condition is that the chosen entity must provide the best possible services at reasonably accessible prices,” he said.

The Department of Information Communications and Technology is in the process of finalizing the terms of reference for the selection of the third telco player.

DICT acting Secretary Eliseo RIo said the entry of new major player in the Philippine market was a mandate given by the president to the agency to address the paramount national interest on the quality of internet connection in the country.

He said the major player was expected to stir up genuine competition in the telco market and consequently lower the prices and improve the quality of the services.

Rio said the new player was

expected to make a commitment that was never done by the existing telco players. “Filipinos can now expect a faster internet speed at a lower cost,” he said.

The DICT adopted the highest committed level of service or HCLoS as the mode of selection for the major player. Through the HCLoS terms of reference, the participant with the highest points gained on the basis of coverage (40 percent), speed (20 percent) and financial capability (40 percent) in the next five years would be named as the new telco player.

Existing telco players PLDT Inc. and Globe Telecom Inc. expressed no objection to the entry of new players in the telecommunications industry.

“Globe is not opposed to the entry of a third player, or for that matter, as many players that the market can accommodate. Globe has always geared itself for growth and competition,” Globe senior vice president and general counsel Froilan Castelo said.

“Competition has the potential of opening up new sources of revenue streams for telecommunications players, while benefiting consumers with more innovative products and services at competitive rates,” he said.

The government through the National Telecommunications Co m m i s s i o n a l s o m ove d to reduce interconnection charges among telcos to make text and voice calls more affordable to Filipinos.

Darwin G. Amojelar

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