Facebook Instagram Linkedin X Youtube
Home Blog Page 10002

DoE and NDRRMC coordinating power needs in volcano-affected areas

THE Department of Energy (DoE) is coordinating with the National Disaster Risk Reduction and Management Council on controlling the electricity supply in the immediate vicinity of Taal volcano in case of a hazardous eruption.

They are identifying areas that need 24/7 electricity such as evacuation centers, local government command centers, and hospitals.

Energy undersecretary Felix William B. Fuentabella said that once an area is in lockdown, the energy sector will coordinate with the council on the suspension of electricity service and supply of downstream oil products in the concerned areas.

“Kailangan clear ang instructions and ’yung lines ng communication sa pagbabalik ng services o ng supply depende sa instructions ng council (There should be clear instruction and lines of communications in returning services or supply on the instructions of the council),” he said.

“So we will have a situation where evacuation centers will have to be supplied power or energy services, pero ’yung surrounding area niya wala (but not in the surrounding areas). This is to ensure that everyone, especially the people of Batangas and the other affected areas are safe.”

Mr. Fuentabella said that keeping lockdown areas supplied with electricity would be dangerous as people may be tempted to return home before it is safe to do so.

“Danger na nakikita namin pag binibigyan ng supply ng kuryente is bumabalik ang mga tao at di nasusunod sinasabi ng council. (The danger we see is if we supply electricity, people will go back and the council’s instructions will not be followed).”

Representatives from energy sectors said that while there are no power plants within the 14 kilometer high-risk zone, there are transmission and distribution lines within the zone.

National Grid Corporation of the Philippines (NGCP) Assistant Vice-President for South Luzon Gerardo Torres said they have 44 towers in the lockdown areas.

The NGCP is currently removing ash and debris from its power lines to assure continued power supply in Luzon.

“Once na mabigyan ng clearance to penetrate these facilities (in the high-risk area), we can clean all the towers,” Mr. Torres said.

The DoE spoke with representatives of the energy sector on plans to secure power plants in the event of a hazardous eruption and to improve government communications in case of loss of signal.

“Nandiyan din po ang suporta ng petroleum group… para malaman ng mga nasa area on the ground kung ano ’yung mga bukas at saradong estasyon ng gasolina, diesel, kerosene. (The support of the petroleum group is also there, so those in the area will know which gas, diesel and kerosene stations are open or closed),” Mr. Fuentabella said. — Jenina P. Ibañez

LGUs allow limited access to Taal volcano-affected areas

SOME local government units in areas affected by the Taal volcano eruption allowed their residents to go home on Friday to feed their livestock, amid the seeming decrease in Taal Volcano’s activity this week.

“So ang sabi ni hepe sa amin nitong meeting namin, nagbigay siya ng oras para magpunta yung mga taga doon para mapakain ang kanilang mga alagang hayop (So out boss said in our meeting that he would give time for people from those areas to return to feed their lifestock),” Jose Clyde Yayong, Chief of the Tagaytay City Disaster Risk Reduction Management Office, said in a briefing which was streamed on Facebook.

Free services continue to be provided for evacuees, including dental services, hair cuts, and film showings, Mr. Yayong said.

“Tuloy-tuloy ang mga serbisyo na binibigay sa mga evacuees na nadito sa Tagaytay. Dental services, libreng gupit, film showing, meron pong konting pag entertain sa mga evacuees po para hindi masyadong malungkot sa evacuation center so tuloy-tuloy po yung gawa ng local government units (We continue to provide services to evacuees here in Tagaytay. Dental services, free haircuts, film showing, a bit of entertainment for the evacuees so they do not get too depressed in the evacuation centers),” he said.

The Philippine Institute of Volcanology and Seismology (Phivolcs) warned there is still a 30% chance that there will be an explosive eruption and that people should stay out of the 14-kilometer danger area.

Phivolcs Director Renato U. Solidum, Jr. said in a conference on Friday that even with the apparently waning activity in the volcano’s crater, they have seen signs that show a risk of a destructive explosion similar to the eruption of 1754.

“There is a three out of 10 chance that the 1754 eruption may happen. It’s the 1754 that is the scale…. and 30% is very high,” Mr. Solidum said.

Taal volcano’s 1754 eruption was the most powerful of those recorded in historical data. That eruption lasted for over six months.

Phivolcs recorded “weak to moderate emission of white steam-laden plumes that went as high as 500 meters” in the past 24 hours according to the bulletin released at 8 a.m. on Friday, Jan. 24.

The agency also measured an average of 224 tons of sulfur dioxide released, according to its 8 a.m. report. This is higher than the 141 tons it measured on Thursday morning.

Phivolcs has also recorded 738 volcanic earthquakes since the Jan. 12 eruption, 176 of which were felt with intensities 1 to 5.

More than 88,000 families in Batangas, Quezon, Laguna, and Cavite were affected by Taal volcano’s eruption, according to the local disaster agency’s 6 a.m. report.

Over 37,300 families are taking temporary shelter in 488 evacuation centers while 37,230 families are being served outside them, it said.

Taal Volcano remained under Alert Level 4, which means a “hazardous explosive eruption is possible within hours to days.”

In a separate development, 1PACMAN Party List Rep. Michael L. Romero filed House Bill 5763 seeking P3 billion in funding for the Phivolcs Modernization Act of 2019.

The amount is expected to equip Phivolcs with the latest instruments and equipment to improve the agency’s capabilities for warning, assessing, and monitoring volcanic eruptions, earthquakes, and tsunami activity.

Under the bill, the Phivolcs Modernization Program will be implemented for an initial period of two years.

The Philippine Amusement and Gaming Corporation (Pagcor) will be mandated to release P1.5 billion to Phivolcs for each year of implementation.

“Earthquakes and volcanic eruptions have killed thousands of Filipinos and robbed them of their future and fortune. It is time to fight back and arm ourselves with state-of-the-art life-saving instruments and equipment available here and abroad,” Mr. Romero said. — Genshen L. Espedido

BIR suspends tax deadline in Batangas due to Taal eruption

THE Bureau of Internal Revenue (BIR) has suspended the deadlines of filing and payment of tax returns in Batangas to provide relief to the residents affected by the eruption of Taal Volcano, until the situation returns to normal.

Through revenue memorandum circular no. 7-2020 dated Jan. 14, BIR Commissioner Caesar R. Dulay ordered the temporary suspension of January deadlines for taxpayers under the jurisdiction of Revenue District Offices (RDOs) No. 58 in Batangas City in West Batangas and No. 59 in Lipa City in East Batangas.

These are the areas that are directly affected by the volcanic eruption.

“Due to the recent volcanic eruption of the Taal volcano affecting numerous cities, towns and municipalities in its vicinity, this Office found it proper to suspend the deadlines, for the month of January, on the filing and payment of tax returns in the area until such time that the situation returns to normal,” the memorandum read.

With the temporary suspension, Mr. Dulay said there will also be no penalties applied on the late filing and payments of tax returns, “until an advisory from this Office (BIR) is issued to resume regular operations.”

The memoradum was released and posted on its website on Thursday.

Taal Volcano in Batangas first erupted on Jan. 12, forcing residents in nearby towns to flee.

As of Friday morning, Alert Level 4 is still in place over Taal Volcano. People are still not allowed to enter the high-risk areas within the 14-kilometer radius from Taal’s main crater. — Beatrice M. Laforga

Government getting ready to resettle Taal volcano-affected families

THE Philippine government said it is working to resettle any affected families in case of an explosive eruption of the Taal volcano.

The newly formed Department of Human Settlements and Urban Development (DHSUD) said in a briefing in Makati City on Friday that the National Housing Authority (NHA) is already looking at an 800-hectare piece of land in Cavite as a possible relocation site.

“We coordinated with the provincial government already and was given a list of possible resettlement sites of about 800 hectares. With this data, I have coordinated with the (NHA) so that they can plan already for a massive resettlement of an initial estimate, as of now, of 22,000 families,” DHSUD Secretary Eduardo D. del Rosario said.

While the possibility remains that Taal volcano will not erupt further and evacuees may return to their homes in Batangas, Mr. Del Rosario said the government is looking at contingency plans such as building new houses in Cavite or temporarily moving evacuees to other sites.

Among the plans, he said, is offering the 1,000-unit housing project of the Armed Forces of the Philippines and the Philippine National Police in Ibaan, Batangas to the Taal evacuees. He noted that the provincial government is already arranging for lights and water in these sites to prepare for evacuees.

“(The) 22,000 housing units can be built if we will have a full-scale construction within a year. The problem is where will they (evacuees) stay before the construction is completed? That is where the evacuation centers will come in, and we have available 1,000 units in Batangas that can be fixed and used in months’ time,” Mr. Del Rosario said.

“We are preparing for the worst case scenario, and the government is ready for this event,” he added.

Mr. Del Rosario gave an initial amount of P11 billion that will be needed for the Cavite relocation, computed from the P500,000 cost per housing unit multiplied by the estimated 22,000 families affected. Should the project push through in case of a devastating Taal volcano eruption, this amount will be taken from the supplemental budget of P30 billion that Congress is studying.

HOUSING LOANS FOR EVACUEES
The Social Housing Finance Corp. (SHFC), another agency under DHSUD, also announced on Friday that it is adjusting its interest rates for member-beneficiaries to as low as 2%.

SHFC is the government’s lead agency in providing social housing programs to low-income families. It currently offers three types of loans: land acquisition, site development, and house construction loans.

The government-owned and -controlled corporation said that starting January, it is implementing socialized interest rates for those availing of the full package of loans under its Community Mortgage Program. A full package includes its three loan types.

The scheme will have 10 classifications, where those falling under the first and second deciles will pay an interest rate of 2% from the current 6%. Repayment term for those in this bracket is also extended to 35 years from 25 years with graduated amortization.

The interest rate for households that will be classified under the third decile is 4%. For those in the fourth to seventh deciles, it will be 4.5%, and for those in the eight to 10th deciles, it will be 6%. In all these brackets, the repayment term is extended to 30 years with graduated amortization.

SHFC said that the 2% interest rate is the lowest in the country’s history of housing financing. SHFC head Arnolfo Ricardo B. Cabling said this will help about 80% of its borrowers that come from evacuees of danger zones, which comprise 30% of SHFC’S portfolio.

The agency was able to provide P2.48 billion in housing loans to 32,797 beneficiaries in 2019, double the number of beneficiaries from the previous year.

Aside from the socialized interest rates, SHFC is also offering a penalty condonation program for borrowers that have arrears worth at least three months of amortizations. Under the program they will no longer have to pay the accumulated penalties and surcharges from unpaid amortization.

“This is our gift to our low-income clients… [W]e are hoping that (beneficiaries) will immediately file their applications before the program ends in 2021,” Mr. Cabling said in a statement. — Denise A. Valdez

Palace says process of ending VFA has started

THE Palace has said that the process of abolishing the Visiting Forces Agreement (VFA) between the Philippines and the United States of America has begun, this after President Rodrigo R. Duterte called on the US to address a senate ally’s cancelled visa.

Presidential Spokesperson Salvador S. Panelo confirmed this with reporters on Friday, saying that the Philippine government is already starting the process. The revocation of the VFA will be in effect 130 days after the US formally receives a notification from the Foreign Affairs Secretary.

“On the Visiting Forces Agreement will come 130 days from the time the parties have notified each other… so according to [Foreign Affairs] Secretary [Teodoro] Locsin [Jr.], it’s supposed to be parting any time to the US,” he said.

In a speech on Thursday, Mr. Duterte said that he is giving the US a month to undo the cancellation of Senator Ronaldo “Bato” O. dela Rosa’s US visa. He said, “I’m warning you, this is the first time: ’pag hindi ninyo ginawa ang correction diyan (If you do not correct that), one, I will terminate the bases — Visiting Forces Agreement… I’m giving government and the American government one month from now, mag-istorya mi, pahawaon nako sila sa ilang Visiting Forces Agreement (we will talk, I will terminate the Visiting Forces Agreement).”

Despite having given the US one month to renew Mr. Dela Rosa’s visa, Mr. Panelo said that Mr. Duterte wanted to begin the process of the agreement’s termination.

Foreign Affairs Secretary Teodoro L. Locsin, Jr. said in a social media post on Friday that he, as VFA Chair, and Department of National Defense (DND) Secretary Delfin N. Lorenzana are already acting on it. He added that he will first call the US Senate Foreign Relations Committee “because on our side, it is a treaty; on US side (an) Executive Agreement.”

Mr. Lorenzana said in a message to reporters on Friday that he understands Mr. Duterte’s ire over the cancellation of Mr. Dela Rosa’s US visa, as this comes after a US resolution to block certain members of the Philippines government from entering the US.

An amendment in the US’ recently passed 2020 National Budget prohibits Philippine officials from entering the country if found to be linked to Senator Leila De Lima’s incarceration. Another recent US Senate Resolution will block US entry and freeze the US assets of Filipino officials who are involved in extra-judicial killings in connection with the Duterte administration’s war on drugs, and those responsible for the detention of Ms. De Lima.

“I can understand why PRRD [President Rodrigo R. Duterte] is peeved by the cancellation of Senator Bato’s visa because of alleged extrajudicial killings in connection with the drug war. Most specially that Bato was specifically targeted. It is a direct affront to PRRD being the architect of the drug war that he started upon his assumption of office. He ordered Bato, then the newly installed Chief PNP, to launch the drug war,” Mr. Lorenzana said.

Mr. Panelo said that the cancellation of the senator’s US visa is one of the reasons why Mr. Duterte will not be attending the US-ASEAN Summit in Las Vegas, Nevada this March.

“That added to the other factors,” Mr. Panelo said.

For his part, Senator Panfilo M. Lacson, Sr. said that the VFA is a bilateral agreement that cannot be broken without being voted on by the Senate. He said in a statement on Friday that “The Supreme Court should act soonest on whether the Senate’s consent is needed before the executive department can terminate a treaty or bilateral agreement — an issue raised in a petition filed before it by members of the Senate.”

Justice Secretary Menardo I. Guevarra said that they are also currently working out the lawful process to terminate the VFA. He said in a message to reporters on Friday, “(T)he DOJ (Department of Justice) has been tasked to study the proper procedure to terminate the VFA. We are doing it now.” — Gillian M. Cortez

Taal refugees still need help says foundation

A NON-PROFIT organization Philippine Disaster Resilience Foundation (PDRF) is calling on its member companies and other private sector entities to continue contributing aid to areas affected by the Taal volcano eruption, especially as help is not currently distributed evenly to all evacuation centers.

While donations are pouring in, the problem is that the stocks in evacuation centers need to be replenished as there is no way to tell when the evacuees will be able to return to their homes.

PDRF Executive Director Veronica Gabaldon said in a conference on Friday: “When we went around rapid damage assessment and needs analysis, at hindi equitable ang tulong na naiibibigay (the help given is not distributed equitably). There are evacuation centers [where people are] eating eight times a day and there are evacuation centers [where people are] eating twice a day.”

PDRF is also calling on companies to give help regularly rather than just making a one-time donation, saying that necessities are bound to run out if the volcano continues to be active.

“What PDRF said the need there is replenishment,” Ms. Gabaldon said, adding that evacuation centers need hygiene kits, cleaning materials, sleeping kits, and medicine.

Department of Health (DoH) Director Gloria Balboa said that more manpower is also needed for giving out the aid in the evacuation centers. Tracking donations is also a problem because some evacuation centers receive assistance in excess compared to shelters in far flung areas.

“That’s one of our concerns, transporting the logistics …The monitoring of the distribution of the logistics is a problem,” she said in a conference on Friday.

While food is not a problem for evacuees as 98% of evacuation centers are already covered in those terms, the supply of water is still not enough for the evacuees. Ms. Balboa said it is not advisable to donate bottled water as the safety of the water in bottles cannot be verified since many donations included unbranded bottled water. Donations of sealed containers of a gallon of water is preferred.

Sanitation is also a concern in evacuation centers, with Ms. Balboa explaining that “There are not enough portalets. You can put a portalet easily but the problem is the maintenance because it is costly… which is why we have a wash assessment team to go to evacuation centers to see the type of toilet facilities that can be constructed.”

PDRF President Butch Meily said, “Taal is a crisis that affects us all. it could affect hundreds of thousands of people and is dangerously close to the heart of the Philippine economy.”

The PDRF also showed its proposed plan which aims to guide its member companies and other stakeholders in its relief efforts in Taal. Assistance will be classified under eight PDRF clusters: logistics; information communications technology; water and sanitation; power, fuel and energy; food and non-food; finance and insurance; search and rescue; and infrastructure. — Gillian M. Cortez

Fitch Solutions raises 2020 growth forecast to 6.3%

FITCH Solutions Macro Research has upwardly revised its 2020 gross domestic product (GDP) growth forecast for the Philippines, citing combined fiscal and monetary stimulus paired with better external demand and base effects which could help the country rebound from the less than six percent growth seen in 2019.

The research firm added that another a major headwind is the weakness in capital formation, with foreign direct investments (FDI) possibly continuing their slump this year.

In a note sent to reporters on Friday, Fitch Solutions said it has upgraded its growth forecast for the country for this year to 6.3% from its previous outlook of 6.1%.

“Looking ahead, we expect base effects, the combined stimulus of ramped-up fiscal expenditure and looser monetary conditions, as well as a modest improvement in the external demand, to contribute to a stronger 2020 real GDP growth print,” Fitch Solutions said.

The firm noted that the 5.9% print in 2019 came after the downwardly revised 6% third quarter growth from the initial 6.2% reading as “activity proved less robust” than what they had expected.

Despite this, Fitch Solutions said the 6.4% GDP growth logged in the fourth quarter of 2019, which was the fastest since the downwardly revised 6.6% print in the first quarter of 2018, is an indication that stimulus from the government and the central bank is already starting to take its desired effect in the economy.

According to their report, the base effects will support economic growth in the first half of 2020, given that growth in the first and second quarters of 2019 were at subdued prints of 5.6% and 5.5%, respectively.

It added that the negative effects of the delayed budget passage in 2019, which has hampered public investment plans and failed to support the economy resulting to soft external demand conditions, have dissipated.

Fitch Solutions also said the timely passage of the 2020 budget and the remaining untapped funds from the 2019 budget which will will also be utilized this year will ensure “fiscal stimulus will be a major driver of the economy.”

In terms of monetary policy, the firm said they expect an “insurance cut” from the Bangko Sentral ng Pilipinas (BSP) early this year, with a reserve requirement ratio (RRR) cut is possible as well. This, according to Fitch Solutions, should support credit supply, which slumped through 2019.

“We think easing will come possibly as early as February, given inflation remains within the lower bound of the BSP’s target range and credit growth has yet to return to the levels seen before the 2018 hiking cycle,” Michael Langham, Senior Country Risk Analyst of Fitch Solutions, said in an email to BusinessWorld.

The BSP cut key policy rates by 75 basis points (bp) in 2019 following rate hikes worth 175 bps in 2018. This brought down rates to 3.5% for the overnight deposit facility, four percent for overnight reverse repurchase and 4.5% for overnight lending.

“Weak foreign direct investment inflows may encourage the BSP to ease borrowing conditions to help stimulate domestic investment,” Mr. Langham added.

Fitch Solutions said a downside risk to their outlook is weak gross fixed capital formation.

“Despite an ongoing relocation of manufacturing from China as part of the trade tensions with US, the Philippines has failed to attract the investment that some its regional peers have been able to achieve,” the report said.

“The BSP will however be wary of rising inflationary pressures resulting from food and oil prices, and thus we foresee only one rate cut in 2020,” it added.

Foreign direct investments in October increased by 33.7% to $672 million from $572 million a year ago. However, FDI in the 10 months to October was down by more than a third (32.8%) to $5.79 billion from the $8.611 billion seen in the comparable period in 2018.

The firm attributed the slowdown in FDI to the “ongoing uncertainty surrounding government contracts” and to the yet to be passed tax reform plan.

The report was referring to President Rodrigo R. Duterte’s direction to renegotiate concessions with some water firms, with other public contracts also under scrutiny.

Presidential Spokesperson Salvador S. Panelo earlier said the President has already okayed the review of Ayala Land, Inc.’s contract with the University of the Philippines-Diliman to develop the site which became UP Ayala Land Technohub.

The deal is the second among the contracts of the Ayala Group which are under review for what the government said are “onerous” provisions, including the water contract of the Ayala-controlled Manila Water Co., Inc.

“While our infrastructure team expects improvements to the public-private partnerships (PPPs) framework over the coming years, the uncertainty may sap FDI in the near term,” Fitch Solutions said.

Meanwhile, the Corporate Income Tax Incentives Rationalization Act is still pending in the Senate since October.

The bill, which was already approved in the House of Representatives on September, mandates the decrease of corporate income tax from the current 30% to 20% gradually as it is one of the biggest rates among major Asian economies.

“Until clarity is given over tax policy adjustments, FDI and domestic private investment could stall,” Fitch Solutions said. — Luz Wendy T. Noble

DA eyes auction system for commodity imports

THE DEPARTMENT of Agriculture (DA) is now studying following an auction system starting with sugar to ensure transparency in the country’s import system.

Following the advice of the Department of Finance (DoF) that an auction scheme is better than the current import system, Agriculture Secretary William D. Dar said Friday he has ordered the department to study the alternative.

“Merong team na mag-aaral na nung existing system ng DoF… Actually next week mayroon nang follow-up meeting with DoF on this (There is a team studying the existing system of DoF already… Next week there will be a follow-up meeting with DoF on this),” he said in a briefing Friday.

To recall, Finance Assistant Secretary Antonio Joselito G. Lambino II, in a hearing at the House of Representatives earlier this week, said holding an auction may be a viable option for importing sugar, instead of the current practice where the DA has the prerogative to issue permits based on amount and volume decided in discussions with importers.

He noted the current method raises transparency issues, which would be addressed through auctions as this would bare details such as identities and offers of importers.

Mr. Dar said Friday that as for the DA, “It will come to the point na the auction system will be in place, may makolekta ang gobyerno, hindi makolekta sa bulsa ng iba o ilan-ilan lang (that the collections will go to the government, not to the pockets of a few).”

The auction system will first be implemented in sugar imports, and then will eventually be rolled out to rice, onions, garlic and other commodities.

“We are still designing the details… We will have to issue the guidelines,” Mr. Dar said. The department’s timetable is to finalize this within the year.

With an auction system in place, the Agriculture secretary said there will be proof of transparent transactions as the import clearance fee will be collected by the national government. He added he wants to discuss the possibility of dividing the collections from import clearance fees with the Bureau of Fisheries and Aquatic Resources, the Bureau of Plant Industry and the Sugar Regulatory Administration. — DAV

Philippines joins ASEAN Single Window

THE PHILIPPINES has officially joined the ASEAN Single Window (ASW) and went live last Dec. 30 via its three pilot ports, the Department of Finance (DoF) said.

In a statement on Friday, DoF Undersecretary Gil S. Beltran said through the three pilot ports, the Bureau of Customs (BoC), its Export Coordination Division (ECD) and Export Divisions have started issuing electronic Certificate of Origin (eCO) through the country’s national single window (NSW) — the TRADENET.gov.ph platform.

The three pilot ports are the Port of Manila (POM), Manila International Container Port (MICP) and the Ninoy Aquino International Airport (NAIA).

According to Mr. Beltran, going live on the ASW will reduce communication costs by as low as 10% of the initial costs.

TradeNet is an online platform of the BoC to connect the Philippines in the ASW, allowing it to transact and exchange customs and other trade-related documents with its counterparts in the Southeast Asia region.

He said joining the platform will also encourage small enterprises to take advantage of preferential tariffs under the ASEAN Trade in Goods Agreement.

The ASW Steering Committee will also include three more documents that can be exchanged in the platform he said. These are the e-Phyto-Sanitary Certificate, e-Animal Health Certificate and the e-ASEAN Customs Declaration Document.

“The ASW Steering Committee will also develop a roadmap to enable dialogue partners to join and exchange trade documents online with the ten ASEAN countries,” Mr. Beltran said in his report to the Finance Secretary about his meeting in Hanoi, Vietnam last Jan. 11.

“It will also develop guidelines to handle cancellation or revision of documents exchanged and set Business Process Specifications using the Common Header,” he added.

He said the ASEAN Business Advisory Council also agreed to help in disseminating the developments to the private sector.

As part of the goal to further ease business transactions in the country, the Duterte administration is aiming for all 76 trade regulatory government agencies under 18 government departments to be fully interconnected in TradeNet.

Mr. Beltran has said the country’s NSW, TradeNet, will eventually simplify import and export documentary processes of around 7,400 regulated products. — Beatrice M. Laforga

Bill enhancing Agri-Agra Law filed

A LEGISLATOR has filed a bill seeking to ensure greater access to credit in rural communities.

Albay Rep. Jose Maria Clemente S. Salceda filed House Bill (HB) 6039 on Thursday to enhance Republic Act 10000 or the Agri-Agra Reform Act of 2009.

The bill seeks to solve what is says is the main cause of the failure of the 2009 law, which is “the lack of income-sustaining value chains for farmers and fisherfolk”.

“Agri-Agra requires banks to lend a certain portion of their portfolio to farmers and fisherfolk. Of course, it has not worked to the fullest because farmers aren’t banked in the first place. High-risk ang farmers for conventional banks. Bukod diyan, malayo ang bangko sa bukid. Marami pang requirements kaya magpapabalik-balik ka. Siyempre, ‘yung iba, sa malapit na five-six na lang hihiram” Mr. Salceda said in a statement.

Under the bill, lending to programs or projects that seek to make financial services available at little or no cost to farmers can be considered in assessing bank’s compliance with the Agri-Agra Reform Law.

The bill also extends credit access to programs and projects that “align with a more modern vision for agriculture”.

Despite accessibility issues, the congressman said farmers can still be included in the banking and lending system through virtual banking.

“Fortunately, we no longer have to do physical banking because of virtual applications that allow you to open a bank account in your cellphone and borrow from a BSP-registered bank. And because virtual banks operate at lower costs, mas mura ang loans na kayang ibigay. Virtual banking will grow even more accessible when my Virtual Banking Act is passed. Once that happens, my amendments to Agri-Agra will also help ensure that even farmers from remote communities can be included in the banking and lending system. Basta may signal — so let’s also pass the Public Service Act amendments” Mr. Salceda said.

HB 78, which was also filed by Mr. Salceda last July, seeks to amend the Public Service Act or Commonwealth Act 146 “to effect the necessary changes in the antiquated provisions of the law to increase its relevance to contemporary concerns”.

The Public Service Act is a law that was crafted in 1936 to govern and regulate public services in the country to ensure that basic public services were accessible to everyone equally.

HB 6039 also subjects the implementation of its provisions to congressional oversight, to ensure that policymakers are “responsive to possible needs and opportunities for enhancements”.

The measure also seeks to create an Agricultural and Fisheries Capacity-Building Finance Policy Council which will set targets for banks’ annual contributions, identify eligible recipients of the special fund, and undertake reporting, monitoring, evaluation and audit requirements of the activities financed.

According to Mr. Salceda, the amendments to the Agri-Agra Act is in response to the Bangko Sentral ng Pilipinas’ request to Congress that key financial reform bills be passed so that the country could reach A-credit rating in two years.

The amendments also follow the congressman’s other financial inclusion bills, including HB 5913 or the Virtual Banking Act, and the Financial Consumer Protection Act or HB 5976.

Mr. Salceda filed the Virtual Banking Act last Jan. 6 which seeks to provide a regulatory framework for virtual banks.

Meanwhile, the Financial Consumer Protection Act, which was filed last Tuesday, gives financial regulators the abilities of rulemaking, surveillance and inspection, market monitoring, and enforcement powers relative to consumer protection.

“The bills I have been filing are all interconnected. Social infrastructure, financial inclusion and protections, improvements in the business environment — all of them are part of a vision that foresees the country’s emergence as a predominantly middle-class society, yung pati farmer negosyante. These Agri-Agra amendments are crucial, especially the provision on financial inclusion for rural communities” Mr. Salceda said.

Quirino Rep. Junie E. Cua filed a similar bill last December which mandates banking institutions to strengthen the financing system for agricultural, fisheries, and rural development of the country.

HB 5681 was endorsed for plenary approval by the House Committee on Banks and Financial Intermediaries last Dec. 18. — Genshen L. Espedido

PCC backs classification of motorcycle taxis as public transport

THE COUNTRY’S antitrust watchdog has expressed support for the classification of motorcycle taxis as a mode of public transport as it continues to call for market-driven competition.

The Philippine Competition Commission (PCC) said in a statement on Friday that it supports Senate bills amending the Land Transportation Code to legitimize the service as public transport.

“The Senate bills are timely, widen the choices for commuters, and open opportunities for businesses and innovators,” it said.

In turn, the PCC said it would ensure competition and consumer welfare are protected.

“Whether in the experimental phase or once the law on MCs will be passed, competition must be recognized as an essential element in stakeholders’ operations that bear impact on the riding public.”

The technical working group (TWG) studying motorcycle taxis recently reversed its decision to terminate the pilot run of the ride-hailing services.

PCC reiterated its suggestion to the TWG to consider the implementation of multi-homing, or allowing riders to work with more than one company.

“We acknowledge the legitimacy and objectives of the study, and the need to on-board as wide a set of perspectives as possible. With this in mind, we encourage the TWG to consider the pro-competitive effects of multi-homing in its study,” the statement said.

“Multi-homing also incentivizes platforms to continuously innovate and compete to keep both drivers and passengers safe and satisfied. Preventing multi-homing among drivers may lead to inefficiencies that will ultimately be detrimental to the riding public.”

PCC said that while it recognizes the limited duration of the pilot study, further operation of motorcycle taxis as services should “ensure fair, market-driven competition.”

The commission offered support to the TWG and government agencies to help formulate policies that promote both competition and stakeholder welfare. — Jenina P. Ibañez

Jollibee completes $600M bond sale

JOLLIBEE Foods Corp. (JFC) has completed its dollar bond market debut with the issuance of $600-million guaranteed senior perpetual capital securities by its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL).

In a disclosure to the stock exchange Friday, the listed restaurant company said the transaction was completed on Thursday after proceeds were credited to JWPL’s account. The securities are scheduled for listing at the Singapore Exchange Securities Trading Ltd. on Friday.

“This transaction represents the first ever bond or perpetual securities issuance from JFC and the first time that JFC has tapped the capital markets since its Initial Public Offering in 1993,” the company said.

JFC said it originally planned to raise $400 million from the dollar-denominated bond issuance, but the offer was almost 10 times oversubscribed, pushing it to reach $600 million. This also resulted to a tightening of the final pricing to 3.9% from 4.25%.

“This marks the lowest pricing for a five-year perpetual securities issued by a Philippine company reflecting the strong demand for a JFC bond and the reputable credit standing of the company,” it said.

The securities are unrated and payable semi-annually. As perpetual bonds, the securities have no maturity date, meaning investors will not redeem their investments but will instead get a steady stream of interest payments.

JFC intends to use the proceeds from the offering to refinance its short-term debt after it acquired International Coffee and Tea, LLC last year, the operator of The Coffee Bean & Tea Leaf brand. The remainder will be used for general corporate purposes.

“The objective of management for this issuance is to further strengthen the balance sheet of JFC to build a stronger foundation for accelerating its growth in order to achieve its vision to become one of the top 5 restaurant companies in the world,” the company said.

In the first nine months of 2019, JFC’s earnings fell 26% to P4.53 billion due to losses in its operations of Smashburger and Red Ribbon.

Shares in JFC at the stock exchange gained P5.40 or 2.55% to close at P217 each on Friday. — Denise A. Valdez

1...10,00110,00210,003...14,278Page 10,002 of 14,278
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube