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Legislators question grant of ECC for Kaliwa Dam construction

BAYAN MUNA legislators said the grant of an Environmental Clearance Certificate (ECC) for the Kaliwa Dam failed to meet the legal requirement to consult indigenous people who could be affected by the construction of Metro Manila’s new water source.

Party-list Representative Eufemia C. Cullamat said in a statement that the Department of Environment and Natural Resources (DENR), the agency that issues the ECC, has not shown evidence of consultation for the P18.7 billion dam, to be built in Rizal and Quezon provinces

“Did the DENR conduct consultation with the Dumagats and other local communities to be affected by the Kaliwa Dam project? If they did, where are the results?” she said.

Another Bayan Muna legislator, Rep. Carlos Isagani T. Zarate, said in a separate statement: ”We filed House Resolution No. 10 and are calling on the House leadership to immediately schedule a hearing to investigate Manila Water (Co., Inc.) and Maynilad Water Services, Inc.). We hope that this round of water interruptions is not another ploy to push for the start of the construction of the Kaliwa dam that is full of anomalies and is onerously pro-China.”

Manila Water and Maynilad, the capital’s two water service concession holders, announced water interruptions this week, citing falling levels at Angat Dam, the current main source of supply for Metro Manila.

The Bayan Muna chairman, former Rep. Neri J. Colmenares, called the ECC issuance “highly irregular” with many steps in the process passed over.

“How can the Chinese contractor and MWSS (Metropolitan Waterworks and Sewerage System) issue an affidavit of no complaint, a requirement for the issuance of ECC, when there are many complaints lodged against it? The LGU cannot possibly certify that the project is compatible with its land use plan because it covers ancestral domain and impacts on the health, safety and environment of the indigenous peoples and their lands,” he said in a statement.

“The DENR should not have issued the ECC unless these issues are settled. Now DENR will also become accountable if injuries and destruction results from the construction of the dam. We demand that DENR recall the ECC pending compliance with the requirements,” Mr. Colmenares said.

Bayan Muna opposes the Kaliwa Dam, which the government is seeking to build with Chinese aid, and backs the rehabilitation of Wawa Dam in Rodriguez, Rizal to address the water shortage in Metro Manila and neighboring areas.

He said Wawa Dam can provide 1.5 billion liters of water daily while Kaliwa Dam can only produce 600 million liters.

The government has said it hopes to meet one last legal requirement, clearance from the National Commission on Indigenous Peoples, before the end of the year.

The Kaliwa Dam project will be built by China Energy Engineering Corp.

The construction of the water project was first approved by National Economic Development Authority in 2014.

The financing scheme for the project was changed in 2017 from a public-private partnership to official development assistance.

Last year, the MWSS released an initial P565 million to the Department of Public Works and Highways for road construction to the dam work site, taken from the P2 billion government share of the project’s funding. — PhilStar

Halloween Specials (10/24/19)

Halloween at Richmonde Ortigas

ON Oct. 30, Richmonde Hotel Ortigas’ The Exchange throws a chilling shindig with “IT’s Halloween,” a happy hour party with a theme based on a popular horror flick. Get spooked by creepy clown characters while enjoying a drink-all-you-can spree on San Miguel Beer products and featured cocktails, a buffet of bar chow, and live band music. This special Halloween Happy Hour is priced at P798 nett and runs from 6 to 10 p.m. (the bar chow buffet is open until 9 p.m.). Live entertainment starts at 7:30 p.m. All guests also get the chance to win hotel gift certificates in a raffle.

Halloween at LimaPark Hotel

TAKE PART in a celebration filled with toys, games, and prizes at LimaPark Hotel’s “Andy’s Trip to Infinity and Beyond Halloween Party” on Oct. 26. From 3 to 5 p.m., families are invited to come to the biggest Halloween party in Batangas wearing their freakiest, weirdest, and funniest costumes. High-5 Philippines cast members Alex Reyes and Gerhard Pagunsan host the party which will have lots of games, activities, and spooky-themed rooms to go trick-or-treating in. Kids are encouraged to bring their pre-loved toys which they can exchange for discount vouchers that can be used in any of the hotel’s F&B outlets. Admission is P499 for adults and P599 for kids, inclusive of buffet meals, access to all Halloween rooms, loot bags, and more. Prizes for best costumes include overnight stays with free breakfast. For reservation, call (43) 981-1555 or (+63) 927 335 8235 or send an e-mail to reservations@limaparkhotel.com. Visit www.limaparkhotel.com and FB/Limaparkhotelph for details.

Crimson Hotel’s ‘Pirates and Mermaids’

THIS year, Crimson Hotel Filinvest City celebrates Halloween with a “Pirates and Mermaids Halloween Party” on Oct. 31, 2 p.m., at the Crimson Grand Ballroom. There will be three Halloween costume contest categories, with awards given for Best in Pirate Costume for one girl and one boy, Best in Mermaid Costume for two girls, and Best in Halloween Costume for one girl and one boy. Admission tickets cost P1,150 net for kids ages two years and above, that comes with seat allocation, while kids below the age of one may join the party free of charge. Ticket includes a heavy snack buffet with free-flowing iced tea, an interactive show in the ballroom, the costume contest, Trick or Treat, photo booth, games and activities, prizes and giveaways. The hotel’s Halloween adventures continue with the “Treasure Chest of Feasts” at Café Eight featuring a treasure box full of savory and sweet treats at the Halloween-themed buffet spread. This is available on Oct. 27 for the Brunch Buffet and from Oct. 28 to 31 for the Dinner Buffet for P1,645++ per person. For details or reservations, visit www.crimsonhotel.com/manila, e-mail info.alabang@crimsonhotel.com or call (02) 8863-2222.

Monsters at New World Manila Bay

ON OCT. 30 and 31 at the New World Manila Bay Hotel’s Market Café, there will be a “Monster Camp: Halloween Fun Fest” — a dinner buffet featuring a spread of international cuisines, signature dishes and decadent desserts. The Market Café will turn creepy to make it the perfect hide-out for Halloween. Guests should wear their best smiles because they might meet the monster squad for a group photo worth posting. Guests who come in their most monstrous costume can enjoy spooky Halloween eats and sugary treats. The best in Halloween costume will receive a special surprise. The dinner buffet is priced at P2,600 net per person. Kids ages 12 and below pay half price while kids under five dine for free. For reservations and inquiries, call 8252-6888 or e-mail dining.manilabay@newworldhotels.com.

Okada Manila’s Skulloween

OKADA MANILA presents Skulloween: A Season of Thrills and Chills from Oct. 25 to Nov. 3. Start off with the integrated resort’s original Catrina: The Virtual Reality Experience, which draws from the Mexican celebration of Día de Los Muertos or the Day of the Dead. Participants can help Catrina escape an abandoned mansion. To join, patrons can redeem free passes by presenting one P1,000 receipt from select food and beverage outlets or by purchasing two Halloween cakes from the Lobby Lounge and Pastry Shop. Shoppers can also drop by any of Okada’s retail outlets and get one pass to the VR experience with receipts worth P2,000. Reward Circle members can earn a voucher by getting 20 tier points from 6 a.m. of Monday to 5:59 a.m. of Thursday and/or earn eight tier points from 6 a.m. to 2 p.m. on Friday. They can also participate on the dates of Oct. 18 and 25 and be given Skulloween vouchers. Visitors can also have fun at the Crystal Corridor where there will be a Día de los Muertos Halloween Instagram Lane set-up for the perfect photo-op. There will also be live entertainment: stilts walkers, acrobats, and cosplayers on Oct. 31. For the kids, PLAY at Okada Manila will have a spooky Halloween. There will be face painting, a photo booth, arts and crafts, cotton candy and popcorn stations, movie screenings, and Halloween-themed games. There will also be trick or treat time, a Halloween runway show, a special performances awarding, prizes for Halloween games, and activities designed for guardians. For details visit okdmnl.ph/Skulloween.

Conrad Manila’s ‘Thriller Night’

CONRAD MANILA celebrates Halloween with fun activities for guests of all ages with “Thriller Night” at the C Lounge on Oct. 25 and “Spooktacular Sunday” at Brasserie on 3 on Oct. 27. At C Lounge, guests are invited to come in their scariest costumes while indulging in premium Glenrothes Halloween cocktails paired with appetizers and live music. The guest who wears the best and most creative costume gets a chance to win an overnight stay gift voucher. “Thriller Night” is meant for adults ages 18 and above only; price starts at P1,000 nett. At Brasserie on 3, “Spooktacular Sunday” is meant for the family, with kids of all ages invited to come in costumes and go Trick or Treating around the hotel and take part in face painting, games and other activities. It is priced at P1,800 nett per person inclusive of lunch buffet and Trick or Treat activities. Children ages six to 12 enjoy a 50% discount on the buffet rate while kids ages five and below dine free when accompanied by paying adults. For inquiries or reservations, call 8683-3990 or e-mail conradmanila@conradhotels.com.

Halloween fun at Eastwood Richmonde Hotel

EASTWOOD Richmonde Hotel’s “Paws-itively Awesome Halloween Kiddie Party,” happening on Oct. 26, will feature a snack buffet with drinks, assorted snack stations, a magic show for the little ones, a Horror House for the kids and the kids at heart, games, photo booth, and loot bags. And to make the occasion extra special, there will be a dog show. Dress up the kids and dogs in Halloween costumes for a chance to win gift certificates for hotel accommodations. The party will be from 1 to 5 p.m. (buffet is served at 2 p.m.) and tickets are priced at P950 for both children and adults. Toddlers two and below can join for free if accompanied by a paying adult. Meanwhile, adults can enjoy All Hallow’s Eve at Eastwood Café+Bar’s Fang-tastic Halloween Night on Oct. 31, 6-9 p.m., and take advantage of the Buy One, Get One offer on local beers, alcopops, and sparkling wines, plus 10% off on all the restobar’s revamped à la carte menu selections. Guests also have a chance to win hotel gift certificates when they come in vampire-themed costumes. For inquiries and ticket reservations, call 8570-7777. Eastwood Richmonde Hotel is located at 17 Orchard Road, Eastwood City, Bagumbayan Quezon City.

Cityland gets SEC nod for commercial paper offering

CITYLAND Development Corp. said on Wednesday that its offering for P1.4 billion worth of commercial papers had been approved by the Securities and Exchange Commission (SEC).

In a disclosure, Cityland said the securities offering was approved by the regulator during its meeting on Oct. 22.

The board of directors of Cityland in a special meeting on Aug. 16 approved and authorized the company’s application for the issuance of commercial papers.

“[T]he proceeds shall be used to finance the funding requirements of the Company,” Cityland said.

Based on the company’s financial report as of the second quarter, Cityland is pinning its growth hopes on the country’s economic performance.

“The Philippine real estate industry has grown robustly through the years and the increase in demand for residential and commercial properties can be attributed to various factors,” it said.

“These includes, rising urban population growth, housing needs of BPO (business process outsourcing) employees and remittances of the overseas Filipino workers (OFWs). The leasing market was fueled by the influx of tourist arrivals and from young professionals from BPO firms, while the sales market was fueled by the demand from local and foreign individuals,” it added.

Cityland said the “cultural shift” led by the millennial generation had driven the popularity of condominium living, while the worsening traffic in the metropolis had encouraged them to live near their school or workplace.

“Due to the emergence of new trends and opportunities in the country, 2019 is anticipated to be another solid year for the Philippine real estate industry,” it said.

As of the first half, the company was selling seven projects, including Pioneer Heights 1 in Mandaluyong City and 101 Xavierville in Quezon City.

Pioneer Heights is a 24-storey office, commercial and residential condominium located at Pioneer St., Barangay Highway Hills. It is on track to be completed in December 2023.

101 Xavierville is a 40-storey commercial and residential condominium located along Xavierville Avenue, Loyola Heights.

It is estimated to be completed in February 2024.

Cityland has three other projects in Mandaluyong City, namely: Pines Peak Tower 1 and Pines Peak Tower II, and Grand Central Residences. Both Pines Peak Towers are 27-storey residential condominiums located at Union corner Pines St. Grand Central Residences is a 40-storey office, commercial and residential condominium located at EDSA corner Sultan St. — Victor V. Saulon

iPhone display supplier sees OLED smartphone deluge from 2021

JAPAN Display Inc., the struggling supplier of mobile screens to Apple Inc., says it has about a year before it needs to decide on whether to take a plunge on next-generation organic light-emitting diode displays.

While OLED panels are slimmer, more energy-efficient and offer higher contrast, JDI’s liquid crystal displays will retain a price advantage that keeps them competitive in smartphones through 2021, the company’s new Chief Executive Officer Minoru Kikuoka said in an interview. He anticipates a more decisive shift to the new technology may occur in that time period, declining to elaborate on plans of specific customers.

When Apple launched its first OLED iPhone in 2017, it was seen as the beginning of the end for the LCD’s long reign. For Japan Display, which relies on Apple for a large portion of its revenue, that spelled trouble because the company was falling behind in the development of the new screens. But the iPhone X, which used an OLED display from Samsung Electronics Co., didn’t sell as well as anticipated, and Apple followed up a year later with an LCD-based addition to its lineup with the iPhone XR — giving the Japanese company some breathing room.

With the smartphone market plateauing and fancier screens failing to ratchet up demand from users already content with their existing devices, value for money has once again risen in importance for people considering a new purchase, according to the CEO.

“We are seeing consumers put more emphasis on affordability when it comes to their smartphone preferences,” Kikuoka said. “The industry is now gaining a new appreciation for the kind of price competitiveness offered by the LCDs.”

Apple’s 2019 phone lineup includes one LCD model — the iPhone 11, which Apple launched at a starting price $50 lower than its predecessor — and the company plans to add a second one in the first half of next year to replace the aging iPhone 8. But the Cupertino, California-based company may still shift entirely to OLED for new phones as early as 2020. Though it will still sell a number of older LCD models, the time for Japan Display is running out.

After repeatedly pushing back mass production of its own OLED screens, JDI is finally close to having its first OLED product, Kikuoka said, declining to give further details other than to say that it won’t be a smartphone screen. A person familiar with the matter confirmed an earlier report that JDI’s first OLED will be used in the Apple Watch. Still, competing in the mobile phone arena would take billions of dollars in additional investment, money that Japan Display doesn’t have.

“There was a time when we felt the need to rush a shift to OLED,” Kikuoka said. “Without a partner who could pitch in on the capital side, we simply can’t do it.”

Constituted from the remains of numerous ailing Japanese display makers in 2012, JDI mistimed large investments in LCD capacity and found itself struggling against abler competition from South Korean and Chinese rivals. Five straight years of losses have sent it in search of a capital infusion from overseas, but the list of potential suitors has continued to dwindle. When Kikuoka took the helm in September, the company had just reached a new low, warning that if it’s not able to raise fresh capital it may face difficulties continuing its business.

Japan Display said last month that it lost another potential investor as China’s Harvest Tech Investment Management Co. withdrew from its rescue plan. That was the latest blow since June, when Cosgrove Global Ltd., Topnotch Corporate Ltd. and Taiwan’s TPK Holding Co. left a consortium that in April agreed to an infusion of 117 billion yen ($1.1 billion). JDI still expects to receive an investment from Oasis Management Co. and aims to raise a total of 50 billion yen by the end of the year. An unnamed customer that had previously been reported to be Apple may put in $200 million.

Chinese screen makers BOE Technology Group Co. and Tianma Microelectronics Co. had also shown interest in JDI’s OLED technology, but both have since focused on developing their own versions. Having an actual track record of mass-producing OLED panels might bring those companies back to the table in the future, Kikuoka said. A joint venture at Japan Display’s Hakusan plant in central Japan would be the easiest route, but exporting its manufacturing know-how to China is also an option, he said. JDI could furthermore be open to offers from private equity and other sources of financing.

Kikuoka, 57, spent the first part of his career in finance with stints in Industrial Bank of Japan Ltd. and Merrill Lynch. After more than a decade at electronics parts and materials suppliers Nitto Denko Corp. and Nidec Corp., he joined Japan Display’s finance division in 2017. He was named chief financial officer in May before advancing to the top post last month.

In August, Japan Display reported quarterly sales at the lowest level since the company went public in 2014, as demand from smartphone makers cratered with no prospects of recovery in the near future. The company has shed about 1,200 employees through a voluntary retirement plan, sold off some display manufacturing equipment and suspended production at one plant.

Over-investing in factories at the peak of the demand cycle is only one of the causes for JDI’s current dire straits, according to Kikuoka. The company also fell victim to complacency because it was backed by Innovation Network Corp. of Japan, a state-owned fund that remains JDI’s largest shareholder.

“That resulted in a culture that allowed losses to continue and a sense that someone would always come to our rescue,” he said. “What was missing was a real hunger to strive.” — Bloomberg

Bank of Japan’s need for major move still unclear amid review

BANK OF JAPAN Governor Haruhiko Kuroda’s call in September for a review of how its mission to stimulate price growth could be threatened by the global slowdown spurred speculation that October would be the month for policy action.

With that meeting now a little over a week away, the ebbs and flows of the global economy and their impact on domestic data leaves him in an awkward predicament: Having stoked speculation of impending action, the need to ramp up stimulus still isn’t clear-cut.

Sure, the outlook for the global economy remains gloomy with the International Monetary Fund calling for more stimulus and forecasting the slowest growth this year since the financial crisis. Japan’s exports continue to fall, inflation keeps slowing and a sales tax hike is expected to shrink the economy this quarter.

But there’s been good news too: a truce in the trade war between the U.S. and China is the biggest development, while nascent signs of recovery in the tech sector also offer hope that some of the biggest risks for the world economy could be softening. Despite setbacks in parliament for Boris Johnson’s deal with the European Union, a no-deal Brexit also looks less likely.

The BOJ’s Tankan business survey at the beginning of October showed that the mood among Japan’s largest manufacturers is holding up better than expected, while the service sector remains buoyant.

Markets are also looking more sanguine, with Japanese stocks hovering around highs for the year, the yen away from a policy makers’ danger zone and yields on 10-year government debt within a loose trading band around zero.

“Kuroda can’t stay in his fighting pose for too long,” said Masamichi Adachi, chief economist at UBS Securities Japan and a former BOJ official, referring to the governor’s readiness to take action and the looming decision on Oct. 31. “Given the lack of really bad economic data and some signs of relief in financial markets, it’s a close call.”

BETTER ANGLE
Earlier expectations for more BOJ stimulus in October dovetailed with a global wave of interest rate cuts from Australia to South Korea that followed moves by the Federal Reserve and the European Central Bank. Kuroda also fanned expectations that the BOJ might lower rates by saying he was getting closer to adding stimulus and talking up the power of negative rates.

As recently as Oct. 11, overnight swaps indicated a 100% probability of a rate cut at the BOJ’s October meeting. Now those swaps are showing the bank is less likely to lower its short-term rate from -0.1%, pricing the likelihood of a cut at 56% on Wednesday.

The swaps data is volatile, but it suggests market perceptions have changed since the U.S. and China pulled back from the brink, despite Kuroda’s continued comments on the possibility of lowering rates.

Strip out falling energy costs and Japan’s prices are still edging up

What makes the BOJ reluctant to ease is the overwhelming scale of its easing program and its building side effects. If the economy looks like it can stave off a recession, the bank may prefer to hold off any major use of ammunition.

Japan already has a couple of decades of experience in the quantitative easing and other forms of unconventional monetary policy that central bankers in New Zealand, Australia and South Korea are only just starting to talk about.

GUIDANCE OPTION
If Kuroda holds off on lowering the negative rate despite calling for the review, one escape route would be to adjust the bank’s guidance on policy, perhaps linking the continuance of extremely low rates to risks to price momentum rather than the effects of the sales tax, as is currently the case.

That’s a possible outcome that meshes with the view of Kazuo Momma, former executive director in charge of monetary policy. He said he doesn’t expect any major policy change at the end of meeting on Oct. 30-31. What’s likely is an extension of forward guidance, the least costly tool to demonstrate the bank’s easing stance, he said.

Speculation about October stimulus earlier in the year centered on the possibility of the central bank acting in tandem with the government to support the economy through the sales tax. That’s the kind of action that would be welcomed by the IMF.

Those strong expectations of joint action cooled as Japan’s economy continued to expand and signs that the sales tax hit to the economy will likely be smaller than on previous occasions.

While the possibility of the government and BOJ acting together can’t be ruled out, Prime Minister Shinzo Abe’s administration now looks more likely to link any extra spending to disaster relief from Typhoon Hagibis. Compiling an extra budget to pay for major damage to bridges, building and roads could take about a month, making it difficult for the government to coordinate with the BOJ at the end of October. — Bloomberg

How PSEi member stocks performed — October 23, 2019

Here’s a quick glance at how PSEi stocks fared on Wednesday, October 23, 2019.

 

Comparative daily minimum wages of select Asian economies

Comparative daily minimum wages of select Asian economies

PCC may deploy powers against rice middlemen

By Jenina P. Ibañez

THE Philippine Competition Commission (PCC) said it is preparing to investigate whether middlemen are widening the price gap between what traders pay to obtain inventory from farmers and what consumers pay at retail.

The PCC said it may deploy its competition-regulating powers pending the findings of a technical working group (TWG) it formed with the Department of Agriculture (DA) to determine whether the gap between farmgate and retail prices reflects uncompetitive behavior.

PCC Chairman Arsenio M. Balisacan told reporters: “The intention of that TWG is to have a better understanding of the situation of the market. Hopefully with that understanding, we can have a clearer, firmer, more focused investigation if it comes to that, if a conclusion is there is such a problem and an investigation is warranted,” he said.

The PCC on Oct. 1 signed a memorandum of agreement with the DA for mutual assistance in agriculture competition issue. The farmgate price of palay, the unmilled form in which domestic farmers sell their crop, has softened since the enactment of the Rice Tariffication Law in March, while retail prices have not declined to a similar extent.

PCC Commissioner Johannes Benjamin R. Bernabe said that as tariffication puts pressure on farmgate prices to decrease, abusive market dominance or cartelistic behavior by middlemen could exacerbate the farmgate-retail price gap.

“There are middlemen — traders, millers, wholesalers — who are engaged in the distribution, facilitation of distribution of rice to the end-user. If there is concentration, if there are players who are in a dominant position in certain markets for this middle-faced transaction, then is it worsening the gap between farmgate prices and retail prices?” he said.

The PCC has been monitoring the various stages of rice production, focusing on traders, wholesalers, and dealers, and is also looking at the possible involvement of retailers.

“There are certain relevant geographic markets that seem to indicate that it is worth pursuing whether there is some anti-competitive behavior going on (among retailers). But primarily, the ones who have leverage in this value chain appear to be the middlemen,” Mr. Bernabe said.

He said that the commission is still avoiding attributing guilt or liability to any group. Beyond monitoring, he said the PCC is looking to be more actively engaged in analyzing the issue.

PCC can investigate anti-competitive behavior by requesting information from and surveying any industry by region or subregion.

If PCC issues a finding of cartelistic behavior or abuse of dominance, the Philippine Competition Act prescribes corresponding sanctions.

“If it turns out there are cartels — (the charges are) administrative and criminal. If it’s criminal, that comes with admin fines or could (lead to) imprisonment,” Mr. Balisacan said.

Any local government involvement in cartels is not covered by the Philippine Competition Act.

Mr. Bernabe said that any such official’s involvement discovered by the commission will be referred to the Office of the Ombudsman or the Department of the Interior and Local Government.

The Philippine Statistics Authority reported that the average farmgate price of palay fell 1.4% to P15.96 per kilogram (/kg) in the third week of September.

The retail price of well-milled rice and regular-milled rice both fell 0.3% to P42.11/kg and P37.66/kg, respectively.

Palay farmgate price falls further in early Oct.

THE average farmgate price of palay, or unmilled rice, declined further in the first week of October, falling 1.6% week-on-week to P15.56 per kilogram (kg), the Philippine Statistics Authority (PSA) said.

The PSA said in its weekly price update that the average wholesale price of well-milled rice fell 0.3% week-on-week to P38.02 per kg. At retail, prices fell 0.2% to P41.94.

The average wholesale price of regular-milled rice fell 0.5% week-on-week to P33.86 per kg. The retail price declined 0.3% to P37.53.

The price of the staple grain has been on a downward trend since the implementation of the Rice Tariffication Law, which removed restrictions on rice imports. In exchange, imports of grain from Southeast Asia are charged a 35% tariff.

The influx of imports has softened the market for palay, the form in which domestic farmers sell their harvest to traders, triggering a government effort to prop up palay prices using public funds. Private traders in some provinces are reportedly offering farmers single-digit prices per kilo of palay, well below the National Food Authority’s support price of P19.

Week-on-week, the farmgate price of yellow corn grain declined 1.6% to P12.34 per kg. The average wholesale price fell 1.0% to P18.29, and the retail price fell 0.1% to P24.26.

The average farmgate price of white corn grain fell 1.7% to P13.51 per kg. The average wholesale price dropped 1.0% to P16.80. The average retail price fell 0.5% to P26.53. — Vincent Mariel P. Galang

MWSS orders water firms to maximize treated-water output

By Victor V. Saulon
Sub-Editor

METRO MANILA’s water regulator said it told the capital’s two water concessionaires to maximize the output of their water treatment plants in Muntinlupa and Rizal to mitigate the impact of the water service interruptions which started today.

The Metropolitan Waterworks and Sewerage System (MWSS) said it told Maynilad Water Services, Inc. and Manila Water Co. to ramp up the output from their respective water treatment plants in Putatan, Muntinlupa and Cardona, Rizal.

The Cardona and Putatan plants draw water from Laguna de Bay to add to the main supply drawn from Angat Dam in Bulacan. Raw water from Laguna de Bay needs to be specially treated to be suitable for consumption.

In a text message, MWSS Chief Regulator Patrick Lester N. Ty said both companies have also been required to undertake other measures to mitigate the impact of the water interruptions, which the companies said were to slow the rate of depletion from Angat.

“They should strictly adhere to the schedule of water interruptions as announced,” he said.

He said the concessionaires must also provide stand-by water tankers or static tanks; and explore cross-border supply if needed. He said they are also to activate stand-by deep wells and make sure there are water allocations to all consumers within 24 hours to allow them to store water.

“Rationing will start tomorrow (Thursday),” Randolph T. Estrellado, Maynilad chief operating officer, said in a text message, confirming published schedules.

“We expect to continue rationing until releases from Angat are increased to the normal level of 48 cms (cubic meters per second),” he said, adding that for the two concessionaires the level is 46 cms, plus 2 cms for the Bulacan bulk water system.

“The reduced releases have been in place since July in an effort to build up supply in Angat which needs to be filled up before the dry summer months,” he said.

“Ongoing and upcoming mitigating measures are the increased production of our second Putatan plant from 100 mld (million liters per day) to 150 mld, activation of around 50 mld of deep wells, 20 mld of mobile treatment plants, and around 100 mld from continuing reduction of NRW (non-revenue water),” he added.

Mr. Estrellado said that although Angat dam’s releases have been constant at 40 cms, the company has benefited from additional flows from Ipo Dam, also in Bulacan, during the rainy season.

“Unfortunately, the recent dry spell has seen both Angat and Ipo dam levels go down and we can no longer get additional flows from Ipo,” he said.

Meanwhile, Manila Water said it would begin implementing rotational water service interruption on the evening of Oct. 24, 2019, as it had been warning since last week while the water level at Angat dam continues to decline.

“This is necessary because we want to ensure that the still-limited raw water supply will last even beyond the summer of 2020 since Angat Dam may not reach its ideal 212-meter level by the end of 2019,” it said in a statement.

“As such, we enjoin our customers to use water wisely and responsibly. Please store water when available, and just at enough amount to serve your needs during hours of service interruption,” it added.

DPWH says board to study SLEx toll suspension

PUBLIC WORKS Secretary Mark A. Villar said the Toll Regulatory Board (TRB) will study requests to suspend the collection of tolls at the South Luzon Expressway (SLEx).

Mr. Villar, who is also a member of the TRB, told reporters Tuesday that the board will take up the matter.

Wala pang notice kung kailan. Of course, siguro pag-aaralan muna (There is still no word when it will discuss the matter. I expect the issue to undergo study first),” he said.

Senator Sherwin T. Gatchalian on Oct. 7 urged the TRB to suspend or reduce the tolls collected by SLEx, which has been severely congested due to construction activity.

Para mabigyan naman ng kaunting relief ang mga kababayan natin, I do recommend na i-slash or suspend muna ang toll rates (To provide relief to road users, I recommend a reduction or suspension in the collection of tolls),” he told reporters.

He added: “The TRB can also call for a hearing. In fact, dapat ang TRB ay mino-monitor itong situation dahil ang lahat ng construction ay dumadaan sa kanila eh. They should call for a hearing and then analyze kung dapat bigyan ng relief ang ating motorists. (The TRB should be monitoring the situation because it evaluates all construction proposals. They should call for a hearing and analyze whether motorists should be given relief)”

Skyway Operations and Maintenance Corp. (SOMCO), which is managed by San Miguel Corp. (SMC), is currently undertaking preliminary works on its extension project for the Skyway system, affecting SLEx.

Mr. Villar said the ongoing construction is better undertaken sooner than later, saying: “Mas mabuti nang gawin na natin ‘yan ngayon… Kasi nagkakaroon ng build-up sa area na ‘yan. Kung hindi natin gagawin ngayon, baka in a few years mahirap na (It’s better to do it now, because the area is becoming built-up. If we don’t do it now, it might be more difficult to do in a few years).”

SMC President and Chief Operating Officer Ramon S. Ang has taken responsibility for the road congestion along the SLEx and promised that the problem will be resolved by Dec. 1.

SOMCO said on Oct. 1 that it will expedite the major preliminary work on its extension project. — Arjay L. Balinbin

ALU-TUCP calls for testing of talcum powder after US recall

A MAJOR union said it wants the Food and Drug Administration (FDA) to test talcum powder sold by Johnson’s Baby Philippines, citing possible asbestos risk to consumers and manufacturing workers after the US parent company, Johnson & Johnson, voluntarily recalled its “Baby Powder” product last week.

The recall followed the discovery of low levels of asbestos in one manufacturing batch. The US FDA said it found chrysotile asbestos fibers in a US batch of the talcum powder.

In a statement Wednesday, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) said the Philippine FDA should inspect Baby Powder sold in the Philippines.

Asked to comment, the Philippine FDA said it believes the manufacturing batch that was ordered recalled in the US has not reached the Philippines.

ALU-TUCP National Executive Vice President Gerard Seno said Wednesday: “We are calling upon the FDA to proactively take steps to mitigate the undue anxiety felt by consumers caused by this serious discovery of asbestos contamination in a baby product commonly used by so many Filipinos across our growing population. We are urging them to conduct product evaluation test to assure the quality and safety of the product poses to the health of consumers.”

“Workers involved in the manufacture of asbestos-containing materials, construction workers, electricians, plumbers, pipe fitters, carpenters, power plant workers, boilermakers, shipyard workers, firefighters, and teachers are the type of workers who are highly risk to exposure to cancer-causing asbestos in the country,” he also said.

Last week, a TUCP-affiliated party-list legislator, Representative Raymond C. Mendoza, filed House Bill No. 2636 or the proposed Ban Asbestos Act of 2019, which calls for a ban on the asbestos manufacturing and imports, and the material’s use in the construction trades.

The use of chrysotile or white asbestos is regulated by the Department of Environment and Natural Resources’ (DENR) Chemical Control Order 02 series of 2000. Blue and brown asbestos are the only asbestos types banned in the Philippines.

In a mobile message to BusinessWorld Wednesday, FDA Officer-in-Charge Rolando Enrique D. Domingo said: “At this time we have information that the batches involved were not sold in the Philippines. We are now verifying this.”

According to the Johnson’s Baby website, all types of its Baby Powder are asbestos-free, saying that the company uses talc across its product line except for one that uses cornstarch. It said talc is non-carcinogenic.

“Our confidence in using talc is based on a long history of safe use and more than 30 years of research by independent researchers, scientific review boards and global regulatory authorities,” Johnson’s Baby said in its website.

Asked to comment on the ALU-TUCP statement, Johnson’s Baby said in an e-mail that its products are routinely FDA-tested, with the latest taking place last month, which showed no trace of asbestos in products sold in the Philippines.

“We have a rigorous testing standard in place to ensure our cosmetic talc is safe and years of testing, including the FDA’s own testing on prior occasions — and as recently as last month — found no asbestos,” the company said. — Gillian M. Cortez