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Megaworld unit expects P1.4-B sales from Tanza project

MEGAWORLD CORP. subsidiary Global-Estate Resorts, Inc. (GERI) recently launched a 17-hectare residential project in its Arden Botanical Estate in Tanza, Cavite, where it expects to raise P1.4 billion in sales from the project’s first phase.

In a statement Wednesday, the Andrew L. Tan-led tourism and leisure developer said it introduced the residential village The Lindgren located within the 251-hectare Arden Botanical Estate.

The project has 123 prime lots with sizes ranging from 159 square meters to 252 square meters priced between P10 million and P13 million.

GERI said it designed the property such that 40% of the entire village will be comprised of green and open spaces. It will have amenities such as a multi-purpose hall, fitness center, adult pool, kiddie pool, Jacuzzi, sauna, daycare center, children’s playground, multi-purpose court, outdoor bar and cabana, convenience store and collab space.

“Our concept is to make everyone feel the community vibe. There will be several areas for personal relaxation and socialization where community members can work, play, and grow together,” Megaworld Global-Estate, Inc. Head of Sales and Marketing Rowena Espiritu was quoted in the statement as saying.

The house and lots are scheduled for turnover starting 2025.

GERI said the design of The Lindgren is in line with its plan to have half of the entire Arden Botanical Estate allocated for residential developments, and the remaining half for commercial, institutional, recreational and open spaces.

Megaworld and GERI, the co-developers of Arden Botanical Estate, have committed to spend P18 billion to develop the township over the next 15 years. It is the 25th township of Megaworld and the seventh under GERI.

Shares in GERI at the stock exchange slipped 2 centavos or 1.72% to P1.14 each on Wednesday, while shares in Megaworld increased P0.12 or 2.88% to P4.29 each. — Denise A. Valdez

Dining Out (01/09/20)

New at Canton Road

NEW AUTHENTIC Chinese signature dishes are now found at Shangri-La at the Fort, Manila’s Canton Road restaurant this month. The fresh line-up of flavors highlight more Cantonese dishes mixed with Sichuan, Huaiyang and Mingnan selections. These dishes are: Canton Road three-flavor dessert combination, Braised quail eggs in mixed herbs and spices, Stir fried sea conch and celery in special chili sauce, Double boiled sea conch soup with chicken served in coconut bowl, Szechuan style tiger prawn tail with dried chili and crispy sesame ball, and Sichuan spicy beef tongue with bean sprouts. The a la carte menu is available for lunch from 11:30 a.m. to 2:30 p.m. and dinner from 6 to 10:30 p.m. daily. For gatherings of up to 50 persons, guests may curate their own dining experience in any of the nine private dining rooms. Reservations may be done through e-mail at cantonroad@shangri-la.com or via Canton Road’s Facebook (@CantonRoad).

Cebuano flavors in Cucina

CULINARY favorites from the Queen City of the South reign supreme at Cucina this January. Located on Level 24, Marco Polo Ortigas Manila’s all-day dining destination continues its mission to showcase and highlight different regional fare. From Jan. 11 to 23, Cucina will be featuring select dishes from Cebu as part of the daily lunch and dinner spread. Recommendations include the Sinuglaw (grilled pork belly and fish ceviche), Paklay (pork, beef and goat innards), and the classic Humba (braised pork belly with tausi and dried banana blossoms). Other dishes include the Nilarang na pagi (ray in coconut milk), Ginabot (pork cracklings), and Cucina’s own take on the puso (cooked rice in woven coconut leaves). The restaurant’s chefs also feature the Philippine mango, one of Cebu’s treasured products, in a seasonal dessert pizza, which is only available for the duration of the promotion. For more information on Cucina’s spotlight on Cebuano cuisine this January, call (+632) 7720-7720 or e-mail restaurant.mnl@marcopolohotels.com.

Ali Mall welcomes Popeyes

ARANETA CITY starts the year by welcoming the international fried chicken chain Popeyes to Ali Mall. “It’s our (Popeyes) first opening of the year so why not do it in the City of Firsts, so here we are now in Araneta City today celebrating. Thank you so much,” said Kuya J Group Marketing Director Ton Gatmaitan. Popeyes is open during Ali Mall operating hours and is located at the Ground Floor, Ali Mall Araneta City.

Which commodities contributed the most to 2019 inflation?

Which commodities contributed the most to 2019 inflation?

Southern discomfort

By Carmen Aquino Sarmiento

MMFF Movie Review
Mindanao
Directed by Brillante Ma. Mendoza

MINDANAO, Brillante Ma Mendoza’s latest (Metro Manila Film Festival (MMMFF) entry, humanizes as well as mythologizes the second largest island in our archipelago. We can all relate to its great themes: serious illness and death, the suffering of little children, families riven by war. Admittedly though, we, the so-called Christian lowland majority, are largely ignorant about our “Muslim brethren,” or the Moro, which is how the Islamic societies in the Philippine South now call themselves.

Here, they are all too human. Saima (Judy Ann Santos) helps her cancer-stricken daughter Aisa’s (Yuna Tangog) cope with her pain through the re-telling of the saga of the brothers Raja and Sulaiman, and their battle with the enemy dragon spouses Ginto at Pula. The Princess Aisa is a character in this tale, shown through animation, just as the little girl might imagine it. The battle cry for these fragile children to be brave and keep fighting against their dread diseases, is repeated by the other parents at the House of Hope Transient Patients Home and Hospice. Aisa and her mother stay there, in between treatments at the Southern Philippines Medical Center. When death comes for one so young, you do not give up that easily.

Ms. Santos’ Best Actress awards are well-deserved. One senses Saima’s strength as well as her infinite sorrow. She is helpless to protect her child against the cancer which is her death sentence, but she must remain strong for her. She sniffs at the empty strawberry ice cream container — that was Aisa’s favorite flavor — as the scent is a way to remember her. Little Yuna Tangog was utterly convincing as a retinoblastoma patient. That is an especially cruel cancer which first eats away at the eyes. It usually afflicts toddlers and preschoolers. Often the only way to stop its nefarious progress is to remove the cancerous eyes, while continuing other treatments.

The celebration at the House of Hope and the testimonies of the survivors sympathetically depict the community among the poor who look out for one another in their suffering. It is to be hoped though, that after they saw the conditions there, a big star like Ms. Santos or the successful director Mendoza himself, might donate at least two sets of institutional size cookware (one for halal, and the other not) to the House of Hope. That way, these poor mothers, already burdened with having to care for their patients, would be spared the inconvenience and expense of having to bring their own cooking pots and utensils. It would definitely make for a smaller carbon footprint and a greater sense of community, for them to pool their resources and cook just one big pot of rice and two large batches of halal and non-halal food, rather than kaniya-kaniya (every man for himself).

Saima’s husband Malang (Allen Dizon) is an army medic who must be away in battle while his child is dying. The director Mendoza has declared, “Whether we like it or not, when we say ‘Mindanao,’ people relate it to the conflict there. Therefore, you cannot just make a film about Mindanao and not mention the conflict.”

The Maguindanaoan public intellectual, Datu Gutierrez “Teng” Mangansakan, curator/director of the Salamindanaw Asian Film Festival differs: “We do not deny that conflict is part of our history, but Mindanao is more than that. At a time when we are faced with tragedy and disaster, we rise beyond our differences and see our common humanity.”

What we Christian Lowlanders would take as simply a moving film about family tragedy which just happens to be set in Mindanao, apparently has other far-reaching reverberations, especially among the Maguindanaon, the ethnolinguistic group to which the protagonist Malang belongs. Mindanao has 13 distinct ethnolinguistic groups of Moro with their own cultural practices and traditions. Mr. Mendoza was called out for “ignorance of the dynamics and peculiarities of Bangsamoro geopolitical reality and experience.” A respected personage from Basilan has endorsed Mindanao and a Tausug academic was the production consultant. However, it was pointed out that those worthies are not authorities on Maguindanaon or mainland reality and cultural specificity. Cotabato City’s Alnor Cinema, the only movie house in the Bangsamoro region and in Maguindanao, where this film is supposedly set, did not screen Mindanao The Movie during the Christmas holidays.

Datu Mangansakan found strong elements of the Maguindanao ethos in the film, eg., of alamatan (foreboding or premonition) and of mulka and bagkiyas(retribution). He cites the sequence where Malang’s best friend, the soldier whom he calls “Buddy,” (Ketchup Eusebio) visits Aisa in the hospital, and brings her pansit which he jokingly tells her is for long life, although he knows she’s dying of cancer. Later, on the way to a military operation, Eusebio’s character gets a loving call on his cellphone from his son who’s celebrating his birthday. Datu Mangansakan explains that in Maguindanaon, this is an instance of “kaalamatan sikanin” or the foreboding of a dread event. In the next scene, “Buddy” is killed. “Nabagyasan nu wata” for his insensitive remark to the dying child Aisa. Datu Mangansakan goes on:

“In an earlier scene, the Maguindanaon soldier Malang (Allen Dizon) performs the sagayan (the Maguindanaon war dance) wearing both his military uniform on and the tiered skirt of the sagayan dancer, embodying both the hero and the antihero. Towards the film’s end, he is wounded in the military operation, and misses his daughter’s funeral. ‘Nabagkyasan nu bangsa nin’ or in Filipino ‘na-karma’ (got his comeuppance) for bastardizing his own tradition.”

Datu Mangansakan has written about how when the Bangsa Moro resisted the American Colonial presence, cinema was used to represent them as “The Other”: “Because the studios were some 300 miles from Mindanao, the construction of images of the Moro has been marred by misrepresentation rooted in ignorance of cultural traditions, as well as religious prejudice and discrimination that mirror the prevailing political, historical and social climate, rendering the Moro as a subaltern: unable to speak, voiceless.”

Still, to have big stars such as Judy Ann Santos in this film; Cesar Montano in Bagong Buwan (2001; Marilou Diaz-Abaya) and Nora Aunor in Thy Womb (2012; Brillante Ma. Mendoza) portraying Muslims, has been a cause for elation among the Bangsa Moro. Even Datu Mangansakan recalled how when Bagong Buwan was shown, for so many Moro, “It was as though our identity, our struggle and our very existence have been validated via the big screen. Suddenly we have become larger than life, our narratives made part of the national consciousness.

“Mainstreaming of Moro narratives gives us a positive jolt and that is totally understandable. But we must be able to discern beyond the cosmeticism provided by our exotic culture and traditions, and the portrayal of armed conflicts that have been our truths for many Ramadans past. We must also be able to determine the intention why the same narratives of our people are perpetuated, thereby cementing them in the national imagination. We Moros should not be passive players in the hegemonic business of appropriating the Moro image and narrative. Mga pagali ko, the subaltern can now speak! We must endeavor to create the Moro image and narrative ourselves.”

Body Doubles

By Carmen Aquino Sarmiento

MMFF Movie Review
Sunod
Written and directed by Carlo Ledesma; co-writer Anton Santa Maria

Sunod is unusually sophisticated for the Filipino horror genre. Its terrors subtly operate along several levels. There is the stock opening nightmare scene in the graveyard, replete with howling winds, swirling black veils and snakelike tree roots. It’s not real, but what follows is still hair-raising — not your grandmother’s Shake, Rattle En Roll. Cineastes agree that it was downhill there, after the very first in the series, or post-1984.

Olivia Sason, a.k.a. Liv’s (a coolly restrained Carmina Villaruel) very existence is already a horror story: she is an unemployed single mother with a seriously ill 12-year-old daughter, facing mounting hospital bills all alone. No one, not her daughter’s father, nor her own family or any friends are around to help her. Her desperation is palpable as she applies with a call center known as LGO (Liboro Global Outsourcing) at a job recruitment fair in a downtown university. She is accepted solely on her spoken English skills. She swallows the humiliation of being at least 20 years older than most of her fellow agents in training, and is not as tech savvy as them. Her maturity serves her in good stead, however, when she successfully projects the authority of a supervisor (which she is not), thus retaining a valuable client. The fire breathing dragon lady CEO, Karen Liboro (Mylene Dizon) even fast tracks her regularization. Being a casual or endo contractual is a living nightmare for most of our work force.

Sunod was touted as the only horror film entry for the 2019 Metro Manila Film Festival (MMFF). However, each of the short, student-made films which opened every main features, did have a horror theme derived from our traditional lower mythology — aswang, manananggal, multo, etc. This film’s production polish has much to teach our student filmmakers. There are ever so subtle shifts in the lighting with each scene change: from the lighter blues and greys of the hospital, which segue into the darker steely shades of the call center, where one never knows whether it is night or day, and everything is mechanically scripted and constrained. There is an ambience of death and decay in the moldering yellows and mysterious shadows of the Liboro Building, where LGO occupies the top floor, and a washed out, shabby weariness to the small home with its worn furnishings, which Liv and her young daughter Anelle (Krystal Brimner who, like her character, is also 12 years old) share. The tall Gothic statues of dramatically backlit dark angels in the foyer of the Liboro Building, on whose top floor the call center holds office, are pure camp. They could be props from Hammer Studios. The music is brazenly manipulative, too obviously prompting us to cringe, and triggering the racing of our pulse rates, but this is a minor annoyance given the film’s otherwise outstanding production values.

This tale of possession is reminiscent of the classic The Exorcist (1973, by William Friedkin). The girls in both films are around the same age, and are both being raised by single mothers. In The Exorcist, it is a supernatural demon who takes over Regan (Linda Blair). In Sunod, another child, Nerissa (13-year-old Rhed Bustamante, looking like she belongs in Miss Peregrine’s Home for Peculiar Children), who happens to be the resident ghost of the Liboro Building, enters Anelle. The dramatically negative personality changes which may come with adolescence make child-raising a real-life, terrifying experience for many parents, and doubly so for a single parent going it alone.

But it is not just Anelle and Nerissa who are not whom they appear to be. Even Liv’s supervisor Lance (J.C. Santos) whom she initially took to be her knight in shining armor as his full name, Lancelot, implies, turns out to be just another prick. From his perspective, one might call it a fair quid pro quo, since he does ante up for Liv’s enormous debts. After kneeing him in the groin, she still deposits his check.

Liv’s barely concealed indignation when the LGO call center human resources department refuses her request for a huge advance on her salary, as well as her earlier flash of temper when the job recruiter was about to turn her away, hint at why she might be all alone in facing her problems. It seems she has used up whatever good will she might have had with her child’s father, her family, or other friends.

There is only Liv’s officemate and new-found confidant Mimi (Kate Alejandrino) for now (no spoilers about what happens to Lance), who’s available to drive her and Nerissa/Anelle, so that Nerissa can find her long-lost mother Perla (Susan Africa making crazy eyes), and finally be at peace, then leave Anelle’s body for good. The delightful Ms. Alejandrino ably serves up the film’s few moments of levity. Mimi frankly admits to being a professional call center trainee, simply so she can collect the training allowance, without the accountability, stress, and aggravation of actual BPO employment. Nerissa/Anelle transforms into a human Waze as she directs Mimi through the winding slum alleys. Mimi glances in her rearview mirror at the literal whites of the possessed Anelle’s eyes, and deadpans, “No, she’s not scary, but this is so-o-o crazy.”

At least in Sunod, the laughs are intended, unlike in such ineptly made horror films, particularly of the slasher sort. Think of Topel Lee’s Bloody Crayons, (2017, based on the Wattpad novel by Josh Argonza) where the audience is ROFL (rolling on the floor laughing) each time there’s a victim. The horror of Sunod unexpectedly grows on one with the appearance of the red ball of thread. In the film’s first part, Liv threads beads into necklaces and bracelets with innocuous clear nylon, as she keeps vigil by Anelle’s hospital bed. Here, the red thread ominously recalls the tik-tik’s tongue, which slithers through gaps in poor peasants’ pawid (nipa thatch) roofs, to vacuum up embryos in uteri, through the pregnant woman’s navel. Lonely Liv’s greatest fear is her daughter’s dying, but there’s more than one way to lose a child.

The color red and the idea of tethering might be an homage to Jordan Peele’s Us (2019). In astral travel, there is said to be a silver thread which tethers or connects one’s etheric or astral body to the physical body on this earthly plane. This ensures that one does not remain in whatever worlds one might encounter elsewhere, but be able to return to this planet. However hellish life here might be, the astral plane may not be all that great, as this film shows. In fairness, the world in which Liv temporarily finds herself in, does resemble an art gallery installation.

The red thread also brings to mind the Fates in Greek Myth: Clotho who spins it, Lachesis who decides upon the length each living being might have, and Atropos who with finality, cuts the thread. In the end, Liv is doomed, though exactly how her end might come about, and whether she will take her beloved only daughter with her, we may never know. Now for her at least, that is scary.

How PSEi member stocks performed — January 8, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, January 8, 2020.

 

Direct flights to regional airports driving tourist arrival targets

THE Department of Tourism (DoT) said its target of 9.2 million international visitors this year is driven by more airport development projects which allow tourists to bypass Manila’s congested airport.

“According to the National Tourism Development Plan, it’s at 9.2 million for this year,” Tourism Secretary Bernadette Romulo-Puyat told reporters on Wednesday on the sidelines of the conference on the Institutionalized Leveraging of Infrastructure Program for Airport Development (iLIPAD) held in New Clark City.

The 2019 tourist arrival target was set at 8.2 million.

“We are happy that there are more airports opening: Clark, according to (Transportation) Secretary (Arthur P.) Tugade, will be at the latest July, Legazpi, of course that will help. And of course, when we have the approval of the consortium for the expansion of NAIA (Ninoy Aquino International Airports).”

She was referring to the new passenger terminal at Clark as well as the Bicol International airport in Daraga, Albay, in the Legazpi City area.

“We want the tourists not to go via NAIA but to go straight, so we have Mactan, Bohol and of course Clark and Bicol (airports),” she added.

Asked about her department’s target tourism revenue for 2020, Ms. Puyat said: “I’m not quite sure but then for January to September last year, we had an increase of 25% from the previous year.”

Ms. Puyat and Transportation Secretary Arthur P. Tugade also signed a memorandum of agreement on behalf of the DoT and the Department of Transportation (DoTr) to “intensify infrastructure development that will support the development and promotion of tourism circuits across the country.”

Under the agreement, both departments will prioritize airport development programs in support of tourism development areas, monitor the progress of airport projects in such areas, and explore, develop and increase the value proposition of destinations “for sustainable tourism through the productive utilization of airport assets and route development.”

In her opening remarks during the conference, Ms. Puyat said the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), which is the infrastructure arm of the DoT, is now working with the DoTr “on the possibility of funding several airports to equip them (for night operations).”

“Funding amounting to P1 billion is set for approval by the TIEZA Board in its next board meeting. We must make sure that it’s not only more fun in the Philippines, but much safer too,” she added.

Mr. Tugade said: “I would like to thank the Department of Tourism. This gesture is very encouraging, because believe it or not, the capacity of all commercially-operating airports in the Philippines has and have to be night-rated in order that they make sense and the efficiency desired can be achieved.” — Arjay L. Balinbin

DoJ’s Guevarra urges water firms to accept ‘fair’ new contracts

By Gillian M. Cortez and Genshen L. Espedido

JUSTICE SECRETARY Menardo I. Guevarra urged Metro Manila water concessionaires not to “play hardball” after President Rodrigo R. Duterte offered the service providers new agreements under threat of nationalization and possible plunder and fraud charges.

Mr. Duterte on Tuesday called on Manila Water Co., Inc. and Maynilad Water Services, Inc. to accept the new contracts, which the government considers to be free of the original onerous provisions. He raised the prospect of nationalization and plunder or fraud prosecutions for the parties that negotiated the contract.

“I see no good reason why the water concessionaires will play hardball and induce the government to take extraordinary measures, like taking over their operations or nationalizing the water distribution service,” Mr. Guevarra said in a message to reporters on Wednesday.

Mr. Gueverra’s Department of Justice (DoJ) is responsible for drafting a new contract alongside the Office of the Solicitor General for both water providers. The government claims the current contracts are onerous because they reject the government’s power to regulate prices in the public interest.

The President has also accused Maynilad and Manila Water of not delivering on water treatment facilities while charging fees for such services.

Mr. Guevarra said the draft contracts will be “fair and equitable, more transparent, and advantageous to the consuming public.” No timeline has been set on when the new deals will be presented to both Maynilad and Manila Water.

Speaker Alan Peter S. Cayetano said he hopes the new agreements are made public soon and are acceptable to the two concessionaires to avert problems in the water supply for the medium and long term.

He believes a prolonged standoff could create confusion on the government’s power to regulate water supply contracts.

Hindi makakapagplano ng long-term solutions sa supply ng tubig kapagka hindi alam ng negosyante o hindi alam ng gobyerno kung anong duties nila within na next 10, 15, 20 years. So sana sa pinakamadaling panahon etong first quarter ng taon, mailabas yung bagong kontrata at magkasundo (It will be difficult to plan for the long term on water supply if businesses do not know or the government does not know what their duties are over the next 10, 15, or 20 years. I hope as soon as the first quarter of this year, the new contracts will be released and signed),” he told reporters Wednesday.

The House of Representatives last month investigated the alleged irregularities found in the concession agreements of Maynilad and Manila Water.

Sangley to be launched as general aviation hub in February

THE GOVERNMENT will inaugurate Sangley Airport in Cavite on Feb. 15, positioning it as the main hub for general aviation to decongest Metro Manila’s main gateway.

In his speech at the conference on the Institutionalized Leveraging of Infrastructure Program for Airport Development (iLIPAD) held in New Clark City Wednesday, Transportation Secretary Arthur P. Tugade said that the “formal inauguration” of the Sangley Airport will be on Feb. 15, with President Rodrigo R. Duterte in attendance.

Mr. Duterte ordered last year the immediate use of the facility for general aviation to reserve Ninoy Aquino International Airport (NAIA) for larger commercial aircraft.

According to the Civil Aviation Authority of the Philippines, an average of 3,000 general aviation flights depart NAIA every month. The DoTr has been developing Sangley to accommodate such flights.

General aviation includes charter, corporate, military and pilot training flights typically using lighter aircraft.

The field at Sangley operated as Danilo Atienza Air Base. Its location on Sangley Point, a peninsula which has been a naval facility since Spanish times, means it is surrounded by navigable waters which will require extensive reclamation if it is to be expanded, making it expensive to redevelop as a bigger hub.

Department of Transportation (DoTr) officials said in October that the new airport will have “turbo-prop as the maximum aircraft that will operate in Sangley.”

The airport’s runway will serve as the “third runway” of Ninoy Aquino International Airport with a maximum capacity of 20 movements per hour, referring to both landings and take-offs, the DoTr said. — Arjay L. Balinbin

Veto-less budget message imposes conditions

THE NEWLY SIGNED 2020 national budget amounting to P4.1 trillion passed without any veto from President Rodrigo R. Duterte, though he imposed conditions on some spending items.

According to the President’s budget message released late Tuesday, Mr. Duterte specified “conditional implementation” for some items in the 2020 General Appropriations Act (GAA).

The Department of Budget and Management said according to its evaluation, the 2020 budget has no vetoable provisions, but added that some items could be subject to conditional implementation to remain compliant with budget rules.

In a budget briefing Wednesday, the DBM’s Director for Legal Services Ryan S. Lita said no items in the 2020 General Appropriations Fund (GAA) were likely to be vetoable.

“Based on the review by the DBM, we didn’t find any item…that is strongly objectionable vis-a-vis existing laws and policies, and which cannot be addressed by conditional implementation,” he said.

The P4.1-trillion national spending plan, the largest national budget to date, was ratified by both houses of Congress on Dec. 12. The signed version maintained the total amount approved by Congress.

In his budget message, Mr. Duterte said: “I am duty bound to subject the following provisions to specific conditions prior to implementation, in order to faithfully comply with existing laws, policies, and rules and regulations, for the effective and efficient utilization of public funds.”

The items subject to conditions include foreign travels of government officials and employees; the Last Miles Schools Program of the Department of Education (DepEd); the resettlement of families or individuals affected by infrastructure projects under the Department of Public Works and Highways (DPWH) and Department of Transportation (DoTr); assistance and subsidies provided by the DepEd; the supplementary feeding program of the Department of Social Welfare and Development (DSWD); the DSWD’s protective services program; funding for foreign assisted projects; the DepEd’s quick response fund; Special funds including the Department of Finance’s (DoF) Rewards and Incentive Fund; the Department of Tourism’s (DoT) Tourism Development Fund; the DoF’s use of fees and other receipts of the Securities and Exchange Commission; the Department of Trade and Industry (DTI) and Technological Education and Skills Development Authority’s (TESDA) Tulong Trabaho Fund; and the National Economic Development Authority’s (NEDA) Innovation Fund; and the release of funds for regions affected by earthquakes and for Marawi’s rehabilitation.

When he signed the 2019 budget, Mr. Duterte vetoed billions of pesos worth of items, reducing the P3.7-trillion budget as legislated to P3.6 trillion. — Gillian M. Cortez

DBM sees cash-based budgeting improving spending performance

THE Department of Budget and Management (DBM) said it expects improved spending performance from the government on 2020 budget items, due to the cash-based budgeting system currently in force.

It added that the budget, which will finance the National Expenditure Plan (NEP), is free from the sort of illegal insertions that delayed the 2019 budget.

Assistant Budget Secretary Rolando U. Toledo told BusinessWorld said visibility on spending will likely improve because cash-based budgeting forces agencies to spend on priority items with the required clearances, within a certain period and with specified prices.

“Even before the implementation in the preparation of the budget we require agencies that the programs and price should be ready for implementation (due to the rules of) cash based-budgeting,” he said.

“So far, we see that the cash-based budgeting system improves spending… with this system, implementing agencies are required to, of course, deliver the projects and pay for the projects within the fiscal year,” Mr. Toledo said during a briefing Wednesday.

The government operated on a re-enacted 2018 budget for more than a quarter in 2019 because that year’s budget was signed in April, dampening spending on new items and slowing the economy’s growth. President Rodrigo R. Duterte signed into law last month a measure extending the validity of the P3.6-trillion 2019 budget by a year, overriding cash-based budgeting rules.

The DBM added that the 2020 budget complies with the rules, contrary to fears that the spending plan contains so-called “pork barrel” items. The DBM confirmed no provisions were vetoed by the President following the release late Tuesday of the President’s budget message.

Earlier this week, Senator Panfilo M. Lacson expressed his suspicions over certain items allegedly inserted in the spending plan after the budget was signed by the President.

“Based on the review by the DBM, we didn’t find any item of appropriation provision or proviso that is strongly objectionable vis-a-vis existing laws and policies and which cannot be addressed by conditional implementation or general observation,” the DBM’s Director for Legal Service Ryan S. Lita said during the same briefing.

In the President’s 2020 Budget message released on Tuesday, Mr. Duterte listed 11 items for conditional implementation to comply with existing laws. — Gillian M. Cortez

Philippine nickel output seen growing at about 8% a year

NICKEL production is expected to increase by over 8% a year in the next few years despite policy uncertainty that could limit project development, Fitch Solutions Macro Research said in a report.

“We expect Philippine production to continue rising over the coming years although high levels of policy uncertainty could constrain project development, posing downside risks to our forecasts. We forecast nickel production to average 8.6% year-on-year growth over 2020-2028,” Fitch Solutions said in its industry trend analysis published Jan. 8.

It said that the Philippines will regain its spot as the mineral’s top producer due to Indonesia’s nickel ore export ban, which took effect this year. Indonesia hopes to accelerate the establishment of domestic smelters to capture more value than the current practice of exporting ore.

The United States Geological Survey said in a report in February that Indonesia produced 560,000 tons of nickel in 2018, taking the top spot, followed by the Philippines with 340,000 tons.

Fitch Solutions said that most of the Philippine supply will come from SR Metals, Inc., Global Ferronickel Holdings, Inc., Nickel Asia Corp., and CTP Construction and Mining Corp. Of these, Nickel Asia will remain the top producer on the back of its Taganito and Cagdianao mine operations.

The Taganito mine site covers the barangays of Hayanggabon, Urbiztondo, Taganito, and Cagdianao in Claver, Surigao del Norte. The total land area covered in its Mineral Production Sharing Agreement (MPSA) is 4,862.71 hectares.

The Cagdianao mine site is located in barangay Valencia, Cagdianao, in the Dinagat Islands. The total land area of its MPSA is 697 hectares, one third of which is mineable.

Fitch Solutions noted that from 2016 to 2018, nickel production declined by an average of 12% due to the ban on open-pit mining.

The current Environment Secretary, Roy A. Cimatu, reversed some of his predecessor’s restrictions, but some mine suspensions are still in force until miners address concerns raised about their environmental compliance.

Globally, Fitch Solutions is projecting nickel ore production to fall 15.7% due to Indonesia’s nickel export ban.

This is “despite rising production growth in competitor the Philippines as well as steady output in other major producers Australia, Canada and Russia.”

“In the longer term, we forecast global nickel production to grow by an annual average rate of 1.6% year-on-year over 2020-2028, a significant slowdown from the 5.8% year-on-year average achieved over 2011-2019, which was boosted by higher nickel prices at the time and strong Indonesian output before another export ban in 2014,” Fitch Solutions noted. — Vincent Mariel P. Galang

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