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Davao Oriental starts construction of new facilities at tourism complex

THE DAVAO Oriental provincial government has broken ground for the first phase of an inland resort within its tourism complex, with an initial allocation of P165 million from the local budget. “We cannot afford to simply wait for investors to locate and invest here. Since it is our interest to accommodate our visitors, I thought why not the provincial government invest instead,” Gov. Nelson L. Dayanghirang said in a statement released after Tuesday’s groundbreaking ceremony. The complex, located in the capital Mati City, will cover an eight-hectare property. The initial funding will be used for three dormitories, six family villas, storage and laundry, coffee and souvenir shop, a swimming pool, and a function area. The provincial government also plans to build a 1000-person capacity convention center for big events. “We serve the needs of our tourists and at the same time we earn,” Mr. Dayanghirang said. He noted that visitor arrivals in 2019 increased to about a million from about 800,000 the previous year. “Everybody is a winner on this project. This is the type of development that we want to espouse in our province wherein everyone shares on the benefits,” the governor said. Davao Oriental’s attractions include the Dahican beach and Subangan Museum in Mati, the museum and short trail at the UNESCO World Heritage Site Mt. Hamiguitan, and other nature sites. — Carmelito Q. Francisco

Nationwide round-up

Justice chief says many legal options open to De Lima

JUSTICE Secretary Menardo Guevarra — PCOO.GOV.PH

JUSTICE SECRETARY Menardo I. Guevarra said on Wednesday that there are many legal remedies available to detained Senator Leila M. de Lima to counter the charges against her. “If you believe that the charges against you are not true, then slug it out, file it out,” he said in a media forum. “File a demurrer to evidence if you want to, file a petition for bail. So there are so many legal remedies available to her,” he added. A demurrer to evidence is filed to dismiss a case for insufficiency of evidence. An accused will be acquitted if the motion is granted. The US Senate foreign relations committee passed a resolution last year calling for the release of Ms. de Lima, a staunch critic of the administration’s war on drugs, and dropping of charges against Rappler Executive Editor Maria A. Ressa. They said the detention of Ms. De Lima is due to her political views. Philippine government officials have slammed the US senators for what they call meddling, citing that the country’s justice system is at work in Ms. De Lima’s case. Mr. Guevarra said the senator cannot be released as trial is ongoing. “She can only be released if she gets acquitted. And if she gets convicted, only executive clemency can free her because that’s life imprisonment for the offense charged,” he said. The senator has been in prison since February 2017 on the charge of conspiring to commit illegal drug trading in the national penitentiary when she was Justice secretary. Vann Marlo M. Villegas

Lacson calls for stiffer penalties for perjury

SENATOR PANFILO M. Lacson is pushing for the imposition of stiffer penalties against witnesses that bear false statements while under oath. Mr. Lacson, in a statement on Wednesday, said lying under oath seems to have become a cheap habit in the country. “Naging tig-singkong duling na lang ang pagsisinungaling under oath sa Pilipinas. That is why there is a compelling need for a stronger perjury law.” The statement came after lawyer Jude Josue L. Sabio’s move to withdraw the case he filed against President Rodrigo R. Duterte before the International Criminal Court. Mr. Lacson also named Police Maj. Rodney Baloyo, who was cited for contempt for his false testimony during the Senate probe on the operation of rogue cops. “Our present perjury law only carries a prison term of six months up to two years and two months. With a penalty that light, we can expect lying witnesses not only in Senate hearings but even before the courts,” the senator said. Under Senate Bill No. 28, Mr. Lacson proposes to penalize not only witnesses, but also public officials and employees who give false testimony. The proposed penalties include a fine of up to P1 million, perpetual absolute disqualification from public office, and the “same penalty for the felony the defendant is being accused of.” — Charmaine A. Tadalan

BuCor gets March deadline to process inmates up for early release

THE BUREAU of Corrections (BuCor) has been given until March to process the release of around 400 inmates who surrendered to authorities following the controversy on the premature release of convicts who have exhibited good conduct. Mr. Guevarra said the BuCor asked for more time due to lack of resources. “The BuCor people have requested us, I think the other day, if they can be given until March to process the remaining 400 or so na PDLs (persons deprived of liberty), due to insufficient resources,” he said in a media forum. Mr. Guevarra said he granted the request for more time to review the records, but told BuCor officials to ensure that prisoners who are waiting for the processing of their papers are properly taken care of. “Sabi ko (I said), okay, we’ll give you that grace period that you are asking, and that condition is during the interim, while the PDLs are waiting for you to process their papers, make sure they are properly fed, they are properly accommodated, and they are safe,” he said. The Justice secretary also said that inmates who were released anew after their surrender may file for civil damages. — Vann Marlo M. Villegas

Nation at a Glance — (01/16/20)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (01/16/20)

“Be bold, get in their feelings”: How marketers should connect with their customers

The world is changing at a rapid pace–and along with it, the average consumer. They are getting smarter and tech-savvier, able to research, compare products, and make informed purchasing decisions in a matter of minutes. Consumers are also getting more selective with the information that they’re consuming.

How can your fine-tuned, polished social media video campaign click with consumers when their fingers are already hovering the “skip ad” button before the ads even load? In short: it’s never been harder to connect with consumers.

During Endeavor’s Scale-Up F&B held last November 29, Craig Lonnee, chief development officer and COO of DDB Group Philippines, shared how marketers forge genuine relationships with their customers.

Gathering courage

When Effie Worldwide and Mark Ritson, marketing professor at Melbourne Business School, attempted to determine what makes for an effective campaign based on 6,000 case studies, they found that one of the key characteristics was bravery.

“If you want to stand out with consumers today, you simply can’t skimp on bravery,” said Traci Alfords, president and CEO of Effie Worldwide. “If you want to create effective work, your safest bet is to take the biggest risk.”

Unfortunately, marketers seem to hesitate in exploring out-of-the-box ideas. “A lot of clients demand when we sit through pitches, ‘We want some innovative work’ and then buy the same old stuff,” said Lonnee. “My encouragement is to disrupt the status quo.”

Consider “End Alienation”, one of three films under Max’s Restaurant’s “Every Kind of Family” campaign. It didn’t feature any glamorous food shots, a standard in their category’s advertising. And it promoted acceptance of different kinds of families, a concept that may still prove divisive amongst the general population.

While this may sound warning bells for any marketer, the ad was largely embraced, receiving 16 million views across its channels and tons of positive feedback.

“When you put brave work out there, rather than product and price, which is what normally happens, those are the results you get,” said Lonnee. “Brave work does have business applications.”

Thinking, but with feelings

Bravery doesn’t just stop with the creativity of the work. For most marketers, simple, tactical materials are the safest choice to communicate your product. And while these will serve their purpose in your campaign, it’s just important–if not more–to also appeal to your customers’ emotions.

Consumers primarily use their feelings and experiences when evaluating a brand over considering its attributes and features. They also open up better to emotional ads than those that take a more rational approach. Clearly, an effective campaign carries emotion with it. It’s now just a matter of matching your brand personality and objectives with the right feeling and technique.

However, marketers must keep in mind that emotional marketing is a long-term investment. Emotion isn’t confined to the narrative in your ads: It extends to the relationship that you create with your customers. And strong, genuine relationships are always built over time.

“Emotion builds long-term brands,” said Lonnee. “When you get that balance of emotional and rational thought, you get incredible results.”

ICYMI: SoGal hosts largest global pitch competition for Women & Diverse Founders

SoGal Foundation, a non-profit on a mission to close the diversity gap in entrepreneurship, hosted the first ever Manila regional round of the SoGal Global Pitch Competition, the largest global pitch competition for women and underrepresented founders. 

Winners from each regional round competition will travel to Silicon Valley to participate in SoGal’s three day immersive educational bootcamp for guaranteed facetime with top Silicon Valley investors, curated educational programming, unparalleled 1:1 mentorship, press opportunities, as well as  compete on the global level to win a portion of $600K USD in investment capital. 

Manila is one of over 25 regional rounds hosted in SoGal chapters across five continents. Other regional rounds were hosted in New York, London, Lagos, Chicago, Berlin, Singapore, and Tokyo, to name a few.

The Manila pitch competition, held on December 4 at QBO, saw 15 women-founded startups selected to pitch. 

  • Fortuna Cools Co.
  • Suitd
  • MachiBox Inc.
  • Isdabest
  • Magwai
  • Workbean
  • Olivia Technology Group, Inc
  • Dearest Ltd
  • Saphron
  • Container Living PH
  • Wayste
  • 1Export.
  • Forth Co.
  • Blue Skin
  • Agrabah Ventures. 

These 15 were selected out of a competitive pool of 37 applications, all from early stage women-founded startups. 

The panel of judges at the Manila round, including Priya Thachadi (Villgro Philippines), Paulo Campos (Zalora), Johanna Wiese (Mistletoe Global) and Greg Perez (xchange), selected three winners to move on to the final round in Silicon Valley next February. 

The winners—1Export, Magwai, and Isdabest—represent a range of industries, from trade services to skincare to aquaculture.

More cops sent to Taal as residents try to return

MORE policemen will be deployed in Batangas province to maintain order, as some residents reportedly tried to return to their houses to save their livestock amid Taal Volcano’s continued restlessness, the country’s local government chief said on Tuesday.

“We will add more personnel where it is lacking,” Interior and Local Government Secretary Eduardo Año said in a Viber message.

He issued the order Año in response to the appeal of some local chief executives for additional security forces on the ground to prevent residents from returning to their homes.

Ash from Taal Volcano in Batangas province covered large parts of Southern Luzon and cities near the capital on Monday, forcing financial markets to suspend trading and the Manila airport to close.

The volcano spewed lava on Monday, a day after it blew ash and steam into the air. Authorities warned that a “hazardous” eruption could happen in days as they raised the alert status to level 4, the second-highest in a 5-step scale.

Residents living in the danger zone around the volcano should stay away until authorities advise them to return home, Renato Solidum, the country’s chief seismologist, said.

Mr. Solidum noted that while Taal Volcano’s eruptions might seem to have slowed, this was not a sign of fewer volcanic activities.

This gives some residents “a false sense of security” so they go back to their homes, Mr. Solidum told reporters. The alert status remained at level 4.

The Philippines lies in the so-called Pacific “Ring of Fire,” a belt of volcanoes around the Pacific Ocean where most of the world’s earthquakes strike.

Taal Volcano on the Philippines’ main Luzon island is the country’s second most active volcano. All of its eruptions are concentrated on Volcano Island, an island near the middle of Taal Lake.

Thousands of people have fled their homes and were now staying at evacuation centers in Batangas.

Almost half-a-million people live within the 14-kilometer danger zone near Taal Volcano and about 24,500 people had been displaced, the United Nations Office for the Coordination of Humanitarian Affairs said in a report.

Taal Volcano continued erupting at the Main Crater “due to magmatic and hydrovolcanic activity,” according to an 8 a.m. report from the Philippine Institute of Volcanology and Seismology on Tuesday.

New fissures were recorded on Tuesday afternoon, according to the agency, which recorded 212 volcanic earthquakes in the Taal region as of yesterday, 81 of which were felt with intensities ranging from 1 to 5 in Tagaytay

These earthquakes signified “continuous magmatic intrusion beneath the Taal edifice” that could lead to further eruptions, it said.

Meanwhile, the Health department and Office of Civil Defense said more help was coming to affected residents.

Health Assistant Secretary Maria Francia M. Laxamana told a briefing more health workers would be sent to Batangas, together with more medicines and face masks. Health advisories on the risks of ashfall were also being issued.

Civil Defense Assistant Secretary Casiano C. Monilla said at the same briefing there were enough relief supplies for victims.

The Pharmaceutical and Health care Association of the Philippines in a statement said it would send 16,500 face masks and medicines to evacuees.

The People for the Ethical Treatment of Animals (PETA) were also in Taal to help rescue animals left behind by their owners.

These earthquakes signified “continuous magmatic intrusion beneath the Taal edifice” that could lead to further eruptions, it said.

More than 5,000 families were taking temporary shelter at 75 evacuation centers in Batangas province, according to the disaster agency’s 12 p.m. report.

The volcanic agency reiterated that people within a 14 kilometer radius from Taal Volcano’s Main Crater must be evacuated.

The Social Welfare department said it would send 5,000 food packs and sleeping kits to evacuees after local government leaders in Batangas complained against the lack of relief goods.

Police would deploy eight rescue vehicles and 30 pick-up trucks to help in the evacuated, according to Colonel Marlon Santos of Cavite.

Seven cities and municipalities in the provinces of in Batangas and Cavite experienced power failures, including Amadeo, Tagaytay, Lipa, Tanuan, Laurel, Talisay and Lemery.

The Batangas provincial government declared a state of calamity, which would allow the local government to use emergency funds and freeze the prices of basic goods.

Meanwhile, the local weather bureau said on its website Taal Volcano’s eruptions had caused “cloudy skies with isolated rains and thunderstorms” over the areas of Batangas, Cavite and Laguna provinces.

This could cut visibility and create mud flows during ashfall, as well as light to moderate rains, it said. — Genshen L. Espedido, Gillian M. Cortez and Emmanuel Tupas, Philippine Star

Car sales bounce back in 2019

AUTOMOBILE SALES in the Philippines slightly recovered in 2019, as December sales posted the fourth month of continuous growth, according to a joint report from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) released on Tuesday.

Data from CAMPI-TMA showed 369,941 vehicles were sold, up 3.5% year on year, mainly due to improved sales of light commercial vehicles and light trucks.

Higher automobile taxes caused an industry slump in 2018, with total sales falling 16% to 357,410 units from the 425,673 cars sold in 2017.

For December alone, overall vehicle sales rose by 5.5% to 33,715 units from 31,945 units sold in the same month in 2018.

This followed two months of sales records, with November recording the year’s highest sales of 34,465 units, up 10.3% from units sold in the same month in 2018.

CAMPI President Rommel R. Gutierrez said the auto industry is optimistic about reaching its 410,000 overall sales target for 2019, with CAMPI and TMA accounting for 89% of the projection. The Association of Vehicle Importers and Distributors, Inc., which accounts for 11%, has not released its sales data for 2019.

The auto industry posted growth every month in 2019, except for a 15% drop in January and a 2.4% drop in August.

“The year 2019 has been challenging for the industry due to various internal and external factors. Thankfully the industry’s collective efforts, supported by sustained economic growth, have paid off. We will not rest on our laurels as we aim for further growth in the coming months, and hopefully for the whole of 2020,” Mr. Gutierrez was quoted as saying in a statement.

CAMPI-TMA data showed commercial vehicle sales for 2019, which accounts for 69.5% of the market, grew 5% to 260,744 vehicles from 248,390 in 2018. An 11% and 3.9% rise in sales of light commercial vehicles and light trucks, respectively, offset the lower sales of Asian utility vehicles or AUVs (-15.4%), trucks and buses.

Passenger car sales were flat at 109,197 units sold in 2019, from 109,020 in 2018.

In December alone, commercial vehicle sales grew by 8.1% to 24,469 units from 22,644 a year earlier. Passenger vehicle sales for the month slipped 0.6% to 9,246 from 9,301 vehicles.

AUV sales in December grew 25.9% to 4,457 units, while light commercial vehicle sales grew 3.8% to 18,645 units and light truck sales grew 16.9% to 796 units.

Toyota Motor Philippines Corp. led full-year sales with 43.79% of market share, as total car sales jumped 5.9% to 162,011 vehicles.

Mitsubishi Motors Philippines Corp. followed with 17.32% market share as sales slumped 5.1% to 64,065 units.

Nissan Philippines, Inc., which had a 11.54% market share, recorded a 22.2% rise in sales to 42,694 units. Suzuki Philippines Inc. had a 6.47% market share as sales rose 21.2% to 23,919 units, while Ford Motor Company Philippines Inc., which has a market share of 5.92%, reported a 7.1% drop in sales to 21,900 units.

Among the CAMPI-TMA members, Adventure Cycle Philippines, Inc. (ACPI), the distributor and manufacturer of KTM motorcycles, had the biggest sales growth — a 124% surge to 5,019 in 2019. — Jenina P. Ibañez

Companies’ optimism on PHL economy declines

BUSINESS LEADERS’ optimism in the Philippine economy slumped to its lowest level since the first quarter of 2016, according to the Grant Thornton International Business Report (IBR) released by P&A Grant Thornton on Tuesday.

Data from the Grant Thornton IBR covering the second half of 2019 showed 67% of Filipino respondents are optimistic about the outlook of the Philippine economy in the next 12 months, lower than the 84% who were optimistic in the first half.

“Two-thirds of firms retain an optimistic or very optimistic economic outlook for the Philippines, but this is 17 percentage points down since (first half of 2019) and is a series record low (since first quarter of 2016). Nevertheless, the mid-market remains hopeful that its revenues and profitability will remain high,” P&A Grant Thornton said in a statement.

The Grant Thornton IBR surveyed 4,812 respondents from mid-market companies in 32 economies. Data for the Philippines came from interviews conducted between October and November 2019 with 105 Filipino chief executive officers, managing directors, chairperson or other senior executives from all industry sectors.

Despite the drop, the Philippines remained to be one of the ten most optimistic economies surveyed. Business leaders in Vietnam had the most optimistic outlook on their economy with 82%, followed by Indonesia (78%), United Arab Emirates (77%), China (74%) and United States (73%). Each country has a different sample size.

Philippine business optimism is still eight percentage points above ASEAN business optimism (59%) as a whole.

The IBR data also showed Philippine companies’ expectations of revenue and profit growth declined, although this was described as still “strongly positive.” Revenue growth expectation slid to 68% in the second semester of 2019, from 84% in the first semester while profit expectation fell to 71% in the second half, from 80% in the first half.

“44 percent of mid-market companies in the Philippines expect their exports to increase, even if expectations have actually decreased from 59 percent in H1 2019 to 44 percent H2 2019. Export intentions declined by 15 percentage points to 44 percent — although it remains almost double the 2015 to 2018 average. However, this is below the ASEAN average and moving in the opposite direction to the emerging trend in Asia Pacific,” P&A Grant Thornton said.

Data from the IBR also showed Philippine companies’ investment intentions are mostly down from the previous semester. Data showed 68% of the firms surveyed plan to invest in research & development, an increase from 66% in the first half of 2019. Companies with plans to invest in staff was flat at 68%, while 63% of those surveyed said they will invest in technology (from 75%), 59% in plant & machinery (from 68%), and 53% in new buildings (from 59%).

“The latest figures are beginning to reveal the global slowdown in economic growth. On a positive note, mid-sized firms in the Philippines remain very much optimistic about their expansion,” Ma. Victoria Españo, chairperson and CEO of P&A Grant Thornton, said in the statement.

When asked about constraints to businesses, those surveyed cited a shortage of orders and the lack of skilled workers, with 40% of Filipino mid-sized firms citing reduced demand for products and services and a third citing the availability of skilled workers and labor costs as business constraints.

“27 percent of Filipino medium-sized companies surveyed said that financial constraints were a barrier to expanding their business internationally, while others also cited rule of law and corruption (26 percent) and tax codes and compliance (25 percent) as barriers,” P&A Grant Thornton said.

GLOBAL PULSE
Meanwhile, global leadership community for chief executives YPO released its 2020 global pulse survey.

Among 2,960 respondents from 115 countries, 96% of chief executives said that rate building and maintaining trust with stakeholders are high priorities.

Majority of business leaders in Asia said that taking action on societal issues positively impacts employee trust, with 67% of Asian business leaders agreeing to the statement compared to 54% of the rest of the world. Similarly, 68% of Asian business leaders said it builds public trust, compared to 55% globally. — J.P.Ibañez

Which economies are business leaders most optimistic about?

Which economies are business leaders most optimistic about?

BUSINESS LEADERS’ optimism in the Philippine economy slumped to its lowest level since the first quarter of 2016, according to the Grant Thornton International Business Report (IBR) released by P&A Grant Thornton on Tuesday. Read the full story.

Which economies are business leaders most optimistic about?

Duterte to leave P1.4-T infrastructure projects to successor as ‘legacy’

THE Duterte administration will likely leave an estimated P1.4 trillion worth of infrastructure projects in the pipeline that will be up for implementation by the next administration, according to the Department of Finance (DoF).

DoF Secretary Carlos G. Dominguez III said the current administration was able to boost the project pipeline for its successor to P1.4 trillion, relatively higher than the P50 billion that the previous administration had left in 2015.

“I think that’s a very important legacy of a President — to hand over something to his successor on a silver platter,” Mr. Dominguez said.

Likewise, he said all packages under the Comprehensive Tax Reform Program (CTRP) will likely be passed before the next administration takes over.

Specifically, the Finance chief said the remaining tax reform packages that aim to reform the corporate income tax and fiscal incentives system, land valuation and the financial sector are expected to be approved this year.

“The revenue-generating agencies are going to be operating — firing in full — all cylinders,” said Mr. Dominguez.

However, he said the next two administrations will need to exercise “same strong political will and decisive leadership” to sustain the economic and social gains.

So far, the measures under the CTRP that have already been signed were the Package 1 or the Tax Reform for Acceleration and Inclusion Act and Package 1B or the Tax Amnesty Act.

Package 2+ or the measure proposing to increase the excise tax on electronic cigarettes, vapor products and alcoholic products was passed and ratified by the 18th Congress on Dec. 18 and is now up for the President’s signature.

President Rodrigo R. Duterte has until Jan. 24 to sign or veto the bill before it lapses into law. — BML

More than P500M worth of crops and livestock damaged by Taal eruption

TAAL VOLCANO’S eruption has damaged more than P500 million worth of crops and livestock, the Department of Agriculture said on Tuesday.

Agriculture damage in the Calabarzon Region — made up of the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon — rose to P577.39 million involving 2,772 hectares of land and 1,967 animals, the agency said in a bulletin.

Affected crops include rice, corn, coffee, cacao, banana and other high-value crops, it said.

Vegetables accounted for 56.1% of the damaged crops, followed by banana (21%), coffee (10.9%), corn (7.2%). Rice, livestock and cacao accounted for 4.9%.

On Sunday, Taal Volcano spewed a giant ash column, covered large parts of Southern Luzon and cities near the capital on Monday, forcing financial markets to suspend trading and the Manila airport to close.

The volcano spewed lava on Monday, a day after it blew ash and steam into the air. Authorities warned that a “hazardous” eruption could happen in days as they raised the alert status to Level 4, the second-highest in a 5-step scale.

The Agriculture department said about 6,000 fish cages were at risk, especially those for tawilis, a freshwater sardine found exclusively in the Philippines, and tilapia.

Production loss was estimated at 15,033 metric tons, with high sulfur content from the volcanic eruption likely to have killed fish.

Agriculture Secretary William D. Dar ordered his agency’s marketing arms and the Bureau of Fisheries and Aquatic Resources to ensure there were no unnecessary price spikes.

The government will distribute livestock, rice and corn seed stocks, planting materials for high-value crops and other production inputs worth P21.7 million to 16 affected areas.

These are the municipalities of Agoncillo, San Nicolas, Talisay, Lemery, Laurel, San Jose, Nasugbu, Mataas na Kahoy, Balete, Cuenca, Alitagtag, Padre Garcia, Malvar and Taal, and the cities of Lipa and Tanauan.

The Bureau of Animal Industry also has available medicine for affected livestock and two trucks that can be used to rescue and evacuate animals.

Meanwhile, the Bureau of Plant Industry will distribute 5,000 coffee mother plants and 1,000 cacao seedlings to affected coffee and cacao farms.

The Fisheries bureau will provide seven million fingerlings of tilapia, 20,000 for giant freshwater prawn, 50,000 for catfish, 100,000 for bighead carp, and 5,000 for silver perch once operations at Taal Lake resume.

The Agricultural Credit Policy Council has P30 million in initial funding that will benefit about 1,200 farmers and fisherfolk in Batangas, while the Philippine Crop Insurance Corp. will allot funds to indemnify insured farmers and fishermen, the Agriculture department said.

ECONOMIC COST
Meanwhile, the economic cost of Taal Volcano’s eruptions and tremors since Sunday may have reached about P7.63 billion, the bulk of which affected the service sector, according to estimates by the National Economic and Development Authority.

Much of the cost is due to foregone income, NEDA Undersecretary Adoracion M. Navarro told BusinessWorld. This may translate to 0.3% of the region’s total economic growth, she said.

The service sector was the hardest hit, with P4.32 billion in estimated economic losses, followed by the agriculture, forestry and fishery sector with P3.28 billion and the industry sector with P27.16 million, she said in a mobile phone message.

The Calabarzon Region had the second-largest contribution to the country’s gross domestic product (GDP) with a 17% share in 2018, next to the National Capital Region’s 36% share.

Meanwhile, the Budget department said the budget for calamity response should be ready since the 2020 national budget had been enacted and the notice of cash allocation for the first quarter had been issued.

“The National Government can respond to the eruption,” Budget Undersecretary Laura B. Pascua said in a mobile phone message.

The local disaster agency has a P16-billion budget for calamity fund this year, while other agencies and local government units have their own quick-response funds. — Vincent Mariel P. Galang and Beatrice M. Laforga

SC orders Shangri-La to pay in EDSA Plaza case

THE Supreme Court (SC) ordered Shangri-La Properties, Inc to pay BF Corp. up to P52.6 million over the construction of the first and second phases, and the car parking structure of the EDSA Plaza project n Mandaluyong City.

The case stemmed from the contract between Shangri-La Properties, now known as Shang Properties, Inc., and the BF Corp. for the project. A trial court has directed them to pursue the case before the Construction Industry Arbitration Commission (CIAC).

The court also imposed a legal interest of 6% from the date of an arbitral tribunal’s decision until the decision becomes final and executory in 2007, and a 6% interest per annum until full satisfaction.

In its 25-page petition dated Oct. 15 released Tuesday, the court partially granted the petition filed by BF Corp.

It upheld the award granted by the CIAC in 2007 on unpaid progress billings on specific variation works that was reversed by the Court of Appeals (CA).

The court said that the arbitral tribunal has correctly ruled that BF Corp. complied with the requirements under the Civil Code.

“The Court upholds that Arbitral Tribunal. In our view, the CA wrongly disregarded the specific variation orders that carried the conformity of SLPI, which, when coupled with the letter dated may 9, 1991, satisfied the requisites under Article 1724,” it said.

“Accordingly, the Court reinstates the Arbitral Tribunal’s awards in favor of BFC for variation orders included in progress amounting to P9,513,987.91 and for change orders not included in progress billings amounting to P6,201,278.50,” it added.

The court also said that both the CA and the arbitral tribunal found that the original work scope was completed, and upheld the award of P24.5 million of unpaid progress billings.

The SC, on the other hand, denied that BF Corp.’s claim for fire damage and repair works due to lack of proof that Shangri-La received fire insurance proceeds.

The court also denied for lack of merit the petition of Shangri-La Properties.

The court also upheld the appellate court’s reduction of liquidated damages for Shangri-La Properties due to incurred delays to P780,000 from P7.6 million.

The court said that as BF Corp. is also liable to Shangri-La Properties due to the delays in the project, the money obligations were offset, it said in the statement. — Vann Marlo Villegas

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