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Restaurant Row (09/20/18)

Truffles at RWM

THE chefs of Newport Mall and Resorts World Manila (RWM) signature restaurants have created a trove of truffle dishes at the Philippines’ first Truffle Festival which runs for the entire month of September at Newport Mall in RWM.

Café Pronto’s Crazy Milkshakes
Café Pronto’s Crazy Milkshakes

Sweets at Café Pronto

CAFÉ PRONTO at Marco Polo Ortigas is gearing up for a sweeter and more indulgent season with its current selection of sweet goodies including ice cream (chocolate, strawberry, and vanilla) topped with treats of the diner’s choice (sprinkles, marshmallows, or nuts) in either cup or crunchy waffle cone. Then there are thick milkshakes with munchies on the top like sour candies, gummy bears, and s’mores. Nut lovers can look forward to Florentines, Maple Pecan Pie, Almond Cream Bun, and Hazelnut Dragee are baked to your heart’s desire.

cheese and charcuterie World of Wine fest Shangri-La Plaza
Shangri-La Plaza’s World of Wine fest will include cheese and charcuterie.

Shang Plaza’s festivals

SHANGRI-LA Plaza celebrates food, drink, and culture with two festivals: the Mid-Autumn Festival from Sept. 20 to 23 at the East Wing, marking the Chinese tradition with specialties like mooncakes, fresh lumpia, and other food items, plus crystal accessories and personal care items, plants and pet accessories; and the World of Wine festival from Sept. 28 to 30 at the Grand Atrium. Guests will be able to try wine selections from Marketplace by Rustan’s. There will be talks from local and international wine makers and special wine sessions focusing on topics ranging from the specifics of European wine making to how organic wine is produced. There will be a raffle for a chance to win prizes ranging from a new iPad to a trip for two to the Lamothe Mansion and Vineyard in France.

Mooncake Fair Lucky Chinatown
Lucky Chinatown’s Mid-Autumn Festival includes a Mooncake Fair with mooncakes created by chefs from top Manila hotels and mall establishments.

Mid-Autumn Fest

THE Mid-Autumn Festival are underway at Lucky Chinatown until Sept. 24. There is a Mooncake Fair until Sept. 21 with mooncakes created by chefs from top hotels in Manila and mall establishments. Then on Sept. 22, the mall will host the Great Dice Game at the atrium, with prizes such as gift certificates from Belmont and Ramada hotels, Zen Institute and more. On Sept. 22 and 23, children can participate in the Moon Fest Mural Contest. Also on Sept. 23 is the Grand Festival Celebration at the mall atrium, with cultural performances from Manila Chinese Filipino schools and other partner organizations, and, At 4 p.m., the talent competition of the Little Mr. & Ms. Chinatown pageant. On Sept. 24, students will compete to design the best and most creative lanterns for the Lantern Design Artfest that will decorate a lighted lantern tunnel at the bridgeway to the mall’s Building A.

Digital assistants hone skills to deliver the news

WASHINGTON — “What’s the news?” has become a familiar refrain for consumers with smart speakers, opening up a new channel for publishers but also raising concerns about the growing influence of tech platforms in media.
Devices such as Amazon’s Alexa-powered speakers, Google Home, and Apple HomePod are increasingly delivering news flashes and summaries, and giving users the option to get more in-depth news, just by asking.
For beleaguered news organizations, voice could be a new channel to connect with consumers seeking updates or specific information on demand.
News organizations such as the BBC, Washington Post, and National Public Radio are among those having developed “skills” for digital assistants that enable consumers to listen to updates or other reports.
“Smart speakers are a potentially rich terrain” for news organizations, said Damian Radcliffe, a journalism professor at the University of Oregon.
For consumers, the speakers are being used instead of radio or television for on-demand news.
For struggling news organizations “these technologies create fresh ways to reach news audiences,” Radcliffe said.
An Adobe Analytics survey found 32% of US households use a smart speaker, with most of them using them daily.
According to an Edison Research report for NPR, 77% of consumers said news was an important reason for owning a smart speaker, and that one in three listened to news briefings.
A separate study by Oxford University’s Reuters Institute of consumers in the US, Britain, Germany, and South Korea found 43% used smart speakers to “access the latest news.”
EDITORIAL ROLE?
Greg Sterling, a technology analyst and contributing editor to the Search Engine Land blog, said consumers are become more comfortable with voice search as the underlying technology improves, and are comfortable with “on demand” services like Netflix or podcasts.
Many news organizations that lost readers in the shift to digital see this as an opportunity, Sterling said.
“A lot of newspapers watched and waited as people took away their audiences, and now they want to get out in front,” he said.
The Washington Post — owned by Amazon founder Jeff Bezos — offers updates on Alexa-powered devices so users may ask, “Alexa, what are my notifications?” or “Alexa, what did I miss?” to hear breaking news.
Rick Edmonds, a media analyst at the Poynter Institute, said there may not be quick payoff though voice-delivered news but that “news organizations see this as a way to build a bigger audience.”
ETHICAL QUESTIONS
But giving tech platforms a bigger role in delivering news raises a number of ethical and legal questions, says Tim Hwang, head of the Harvard-MIT sponsored Ethics and Governance of Artificial Intelligence Initiative.
“It really puts the platform in the role of curator in a very clear way,” Hwang said.
Amid growing concerns on misinformation, Hwang said that device makers may be in a more difficult position in signaling credibility of certain news sources of reports.
“It’s an interesting question about where this news comes from,” he said. “We’re just getting started with this and we don’t have a lot of standards.”
The media rights group Reporters Without Borders questions what it will mean to give tech firms’ proprietary algorithms more power to choose the news being delivered.
Elodie Vialle, who heads the journalism and technology desk for the organization, said that voice assistants “are liable to reinforce the opaque and often pay-based methods of media content distribution that exist already.”
Radcliffe said that “tech companies like Google, Amazon, and Apple have already been digital gatekeepers to news for some time,” and this is likely to increase with technologies such as smart speakers.
He said the firms need to be more transparent about how they choose news and sources.
“It’s not enough to say ‘we are not a media company’ if you’re distributing content, and making decisions about how to distribute it,” he added.
Most of the updates are radio-style reports read by humans. But relationships with the news could be transformed if synthetic voices such as those from Alexa and Google are involved.
“A lot of these voices are modeled as being a trusted companion” which is different from the role of a news announcer, says Judith Donath, a researcher and advisor at Harvard’s Berkman Klein Center who is writing a book about technology, trust and deception.
Donath said it is conceivable that computer-generated voices can offer some of the same emotion and tonality people expect, but this is raises delicate questions.
“Are we comfortable having news delivered in a voice that conveys an emotional response to a tragedy or happy event, when the emotion was programmed in?” she asked. — AFP

Nissan posts record sales in 18 years

NISSAN Philippines, Inc. said it had registered in August the largest monthly sales in 18 years, despite unfavorable market conditions slowing down the auto industry’s sales.
In a statement on Wednesday, the company said sales during the month hit 4,500 units, a 104% increase from the same month last year while exceeding July’s 2,869 record.
August marked the highest monthly sales for the brand in the Philippines since 2000, placing it third in the local vehicle market.
“The strong sales performance is the result of a diligent focus on customer service and a strategic product portfolio that meets the requirements of the Filipinos,” Nissan Philippines quoted its Managing Director Ramesh Narasimhan as saying.
Nissan said it ranked second place in the J.D Power 2018 Customer Service Index. It also said it was expanding its dealer network with over five new showrooms opening before the year ends.
“The positive reception of the new Nissan Terra is testament to this. We remain committed to exceeding expectations of our customers and the market,” it said.
Driving the growth in August is the Nissan Navara, which accounted for 21% of the brand’s monthly sales and 38% of sales in the country.
“The Navara’s strong sales has made it the best-selling pickup for the month of August,” Nissan said.
Nissan Philippines, is the sole national sales firm of the Nissan brand in the country.
Nissan Philippines’ report comes a day after Hyundai Asia Resources, Inc. (HARI) reported its sales for August. — Janina C. Lim

Allianz PNB Life Insurance books 162% growth in premium income

ALLIANZ PNB Life Insurance, Inc. reported robust growth in the first half of the year on the back of rising incomes.
In a statement sent to reporters on Wednesday, the joint venture between German insurer Allianz SE and Tan-owned Philippine National Bank (PNB) posted a P4.63-billion premium income in the first semester, up 162% from only P1.77 billion tallied a year ago.
Meanwhile, Allianz PNB Life’s gross written premiums grew by 161% year-on-year in the January-June period, outpacing industry growth.
Data from the Insurance Commission (IC) showed total premiums of the life insurance industry grew 28% at P116.14 billion in the first half from P90.79 billion in the same period last year.
“We are proud of the company’s achievement since we are able to reach out to more Filipino families in providing them insurance protection and investment opportunities,” Allianz PNB Life Chief Finance Officer Efren C. Caringal, Jr. was quoted as saying in the statement.
He added that its bancassurance distribution partners PNB and HSBC gave a “solid contribution” to the growth.
Olaf Kliesow, Allianz PNB Life Chief Executive Officer, attributed the growth to the rising per capita income of Filipinos.
This was supported by the country’s strong economy, 6% in the second quarter, as well as the “sound macroeconomic fundamentals” that will support the insurance industry’s growth.
The insurer said yesterday that it has been expanding its business regionally to address the growing need for insurance and financial products in various provinces.
In a previous interview, Mr. Caringal said Allianz PNB Life is “aspiring” to launch microinsurance products in the country to address the issue of protection gap or the amount of insurance needed by Filipinos.
“Allianz is very big in microinsurance. I think we’re one of the biggest [globally], particularly in markets like Indonesia and India. Our aspiration is to be able to do that also in the Philippines,” Mr. Caringal told BusinessWorld last month.
Currently, the insurer has on-boarded more than 700 agents, which will be expanded to a 3,000-strong agent network by 2020.
Allianz PNB Life is also aiming to expand its customer base in the next three years, providing the insurance needs of around 100,000 by 2020 from the current 60,000.
“More needs to be done in the area of expanding financial inclusion since majority of Philippines remain either uninsured or under-insured,” Mr. Caringal added in the statement.
The German insurance firm completed the acquisition of 51% of PNB Life Insurance, Inc., the life insurance arm of PNB, in June 2016.
IC data showed Allianz PNB Life was the twelfth-largest life insurer in terms of premium income as of end-2017. — Karl Angelo N. Vidal

Philippine Inflation: Which Consumer Items Stand Out?

Philippine Inflation: Which Consumer Items Stand Out?

Wine closures: To twist or to screw and pull

WHEN FRIENDS come over to our house for dinner with a bottle of screw cap (also called twist cap or screw top) wine, we tend to snicker a bit, especially on the quality and price connotation of the wine, even if we haven’t tried the bottle. Yet, the bottle may actually be a premium one like a Peter Lehmann Stonewell Barossa Shiraz or a Cloudy Bay Te Koko Marlborough Sauvignon Blanc — both priced way over P2,000/bottle. Why is this the common bias? And despite the negative perception of most wine drinkers, why are more and more screw-capped wines sprouting on wine shelves all over the country? Let us analyze how this phenomenon started, and breakdown the three most common types of wine closures we see in the market.
CORK TAINT ISSUE
Cork was the only traditional wine bottle closure for centuries, but in modern times, together with the wine boom, more and more cases of spoiled wines due to “cork taint” have been recorded. “Cork taint” or “corked wine” is caused by trichloroanisole or TCA for short. TCA is a compound that surfaced when the chlorine used in cleaning, bleaching, etc. interacts with molds inherent in the cork. This can either happen in the cork producers’ side because chlorine solution is used to clean the bark of the cork oak, or at the winery. TCA is found in many areas of a winery’s bottling facilities, from drains and tanks to the barrels.
TCA can easily be detected on the nose. When a wine greets you with an unpleasant damped cardboard smell rather than the more typical fruit and complex oak flavors, blame it on TCA. The wine will taste musty, dull, and flat too. This is to be differentiated from oxidized wine due to poor wine storage conditions, where the sulfur smell is very evident, and the wine’s natural color is affected.
There is conflicting data on how much wine damage can be blamed on TCA — and it varies from a low 2% to as high as 15%. Natural cork producers are of course the ones that pegged the percentage of damaged wine caused by TCA at 2%, while wineries from California and Australia that jumped onto the screw cap closure bandwagon, would place it a lot higher, rationalizing, in effect, the switch from cork to screw cap. Whether it be 2% or 15%, that is still between one to almost eight bottles of wines destroyed for every 50 opened. TCA is indeed a serious problem. Less than two decades ago in 2000, a famous Piedmontese winery, Elio Altare filed a case against its cork supplier Gueltig, for ruining the winery’s 1997 vintage of top tier Barolo and Barbera wines. In a lawsuit in Italy, Elio Altare wanted to claim around $650,000 from Gueltig, a German company, for TCA damage in 27,000 of the winery’s estimated 33,000 bottle production. The case would eventually be settled out of court for roughly 80% of the amount.
NATURAL CORK
Cork producers have to rely solely on cork oaks trees from Portugal, Spain, and North Africa. Note that cork oak is the only tree whose bark regenerates after each harvest. A cork oak has to be 25 years old before it can be stripped, then harvested every nine to 10 years. Only those cork oak trees that mature to over 40 years, and are on their third stripping, can have their bark stripped down for cork production. An oak tree’s life can last around 200 years, and it can be stripped up to 17 times in its life span. Scientists believe that the molds that cause TCA are found in live oak trees, and are not easily eradicated, and therefore still exist when the bark is made into wine cork. But cork producers are not ignoring this problem, and are investing in research to find ways to eradicate this pesky problem. Concepts like microwave treatment are being experimented with to ensure TCA won’t surface in natural corks. The world’s largest cork manufacturer, Amorim from Portugal, launched NDTech corks few years back, ND to mean “Non-Detectable.” NDTech uses gas chromatography to screen each natural cork for TCA, and is sold with a guarantee against TCA.
Good corks that cost more come from less than 20% of the bark. The cost can range from a low of 13 US cents per piece for the poorer grade natural oak, to just above a full US dollar for the highest grade. The best quality ones, which are compact and solid, are normally five centimeters to 6.5 centimeters long. These are the corks that go to the finest Chateaux of France, and the best wines made in the world. While, there may still be chances of TCA, the quality of the cork allows longevity for decades of wine cellaring.
SYNTHETIC CORK
If one prefers to open wine with a traditional corkscrew, but is afraid of “cork taint,” then the synthetic cork can be a good alternative.
Synthetic corks are made from mixtures of rubber, plastic, and granulated cork. There are, however, two problems with synthetic corks — one is functional and the other is emotional.
Synthetic corks are often made too tight, and can be quite difficult to remove. And being artificial, synthetic cork can leave a sort of stigma on the wine. It is hard to imagine anyone smelling a synthetic cork upon opening.
Synthetic corks are more acceptable for lower valued and ordinary everyday types of wine. Synthetic cork’s ability to last long is still a big question mark too.
The cost of synthetic cork is a lot cheaper than the real thing, at less than 10 US cents a piece.
SCREW CAP/TWIST CAP
The most effective wine closure by far seems to be the screw cap. It is TCA-free, convenient, easy to open, and functionally, almost flawless. Screw caps can preserve the aromas of wine, the bottles can be stored upright (no need to moisten the cork), and can be resealed in case there is leftover wine — though not for long.
The screw cap as a wine closure is definitely nothing new. Some 50 years ago, screw caps were everywhere in the US, especially on jug wines. But these are the inexpensive, rather rubbishy type of generic wines.
While the Old World wine stalwarts are not so keen on switching from natural cork to screw caps anytime soon, ironically, a giant French company, Pechiney (later incorporated into Alcan Packaging, and now under Amcor), is at the forefront of the screw cap evolution with Stelvin. Stelvin is as synonymous to screw cap as it can get. Not only is Stelvin an aluminum wine screw closure, it also has an inner liner covered by PVDC (polyvinylidene chloride) that is chemically resistant to water, oxygen, and aroma, and has an aesthetically appealing long skirt that can replace regular wine aluminum capsules on the bottle. Stelvin has even developed better innovations over the years. There is the Stelvin Lux, where an insert is added to the cap to conceal the threads of the crown, making for a more elegant look. Quality printing and embossing are even possible with Stelvin.
A more aggressive screw cap producer is the Italian owned Guala Closures. Guala became a huge screw cap closure player during the start of the new millennium and is now the market leader. Guala had a great innovation added to this closure with its Tamper Evident wine screw cap, launched earlier this decade with a patented ROPP (roll on pilfer proof). This closure contains a Tamper Evident band that discourages refilling and counterfeiting.
So screw caps may actually be the most ideal closure, but to me the only issue may actually be the longevity of this closure, especially if prolonged cellaring of over decades or so of the wine takes place. While there is no study to prove its failure when it comes to extended bottle aging, there is, however, also no proof otherwise. After all, unlike natural cork, a screw cap does not have the centuries of actual experience to prove its longevity.
Prices of screw caps are already rivaling those of natural cork, depending on the features and aesthetics of the closure chosen.
Asia, including the Philippines, like most infant wine-drinking cultures, is going to be very biased against the screw caps. The Chinese in particular prefer cork closures even on the cheapest wines sold in supermarkets. Perception of inferiority, and general lack of information on screw cap closures are genuine deterrents. On top of this, there is a sophistication level on wine that includes the ritual of opening the wine with a corkscrew. This is one tradition that will take years, decades, and may be even centuries to correct.
The good thing, however, is that a lot of respectable wineries are now totally into Stelvins and Guala Closures, especially the Australians and New Zealanders. Because of this, many wine consumers are learning to accept screw cap wines by default, rather than by choice when it comes to certain wines.
As for me, I can live with screw caps, in lieu of risking TCA. But frankly, if I were to buy a premium red wine, of say over P2,000/bottle, I would still prefer one with a natural cork closure. The popping or pulling sound of the cork being removed is still much more pleasant to the ears than that of twisting off a screw cap.
 
The author has been a member of the Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux or FIJEV since 2010. For comments, inquiries, wine event coverage, and other wine-related concerns, e-mail the author at protegeinc@yahoo.com. He is also on Twitter at twitter.com/sherwinlao.

Uber in talks to acquire ride-hailing firm Careem

UBER TECHNOLOGIES Inc. is in discussions to buy its Dubai-based rival Careem Networks FZ as the ride-hailing giant expands in the Middle East, people familiar with the matter said.
A deal could value Careem at $2 billion to $2.5 billion, the people said, asking not to be identified because the talks are private. Negotiations are ongoing and Careem’s management is working to convince the firm’s shareholders of the merits of a deal, the people said. No final decisions have been made, and the companies may decide against the transaction, they said.
“We believe the consumer internet opportunity in the region is massive and untapped,” Careem said in an emailed statement. “In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”
A spokesman for Uber declined to comment.
Uber and Careem held preliminary talks in July to combine their Middle Eastern ride-hailing services, hoping to resolve a costly rivalry in the region, people familiar with the matter said at the time. Uber had said it wanted to own more than half of the combined company and had also discussed buying Careem outright at the time, the people said.
A deal with Uber could head off a potential initial public offering. Careem had held talks with investors earlier this year to raise $500 million, potentially valuing the firm at about $1.5 billion ahead of a possible listing, people familiar with the matter said in May. The company, whose backers include Japanese e-commerce giant Rakuten Inc. and German automaker Daimler AG, was valued at a little more than $1 billion in a 2016 funding round, making it one of the most valuable technology startups in the Middle East.
Uber Chief Executive Officer Dara Khosrowshahi said at a conference in May that he believed the company would come out on top in India, the Middle East and Africa. “We are going to be, I believe, the winning player in those markets and we’re going to control our own destiny,” he said.
Careem has more than a million drivers and operates in more than 100 cities in the United Arab Emirates, Qatar, Saudi Arabia, Bahrain, Lebanon, Pakistan, Kuwait, Egypt, Morocco, Jordan, Turkey, Palestine, Iraq, and Sudan, according to its website. The app lets customers book rides on cars, bikes, golf carts, boats, and rickshaws as well as schedule deliveries. — Bloomberg

How PSEi member stocks performed — September 19, 2018

Here’s a quick glance at how PSEi stocks fared on Wednesday, September 19, 2018.

 
Philippine Stock Exchange’s most active stocks by value turnover — September 19, 2018

NEDA says calamity price controls to be temporary, does not expect hoarding

THE NATIONAL Economic and Development Authority (NEDA) said it does not expect a state of calamity declaration, which will trigger price freezes, to lead to the hoarding of goods and their removal from the market.
NEDA Undersecretary Rosemarie G. Edillon said any caps on prices will be temporary and apply only to the affected regions, under the terms of Republic Act 10121, or the Philippine Disaster Risk Reduction and Management law.
“It’s only very temporary. The idea is to protect the consumers in that particular area,” she added.
Last week, the Trade department ruled out price freezes as a means to arrest inflation, saying that producers would be discouraged from bringing goods to market if their profits erode or if they are forced to sell at a loss.
Crop damage caused by typhoon Ompong (international name: Mangkhut) is expected to put more pressure on food prices because of the damage to key rice-growing areas and the vegetable-growing center of Benguet.
Ms. Edillon said that high prices are expected “very soon” and “immediately” in the affected areas.
“We hope to address the higher prices by resolving logistical issues and by augmenting the supply of goods by tapping growers in Mindanao,” she said.
The National Disaster Risk Reduction and Management Council (NDRRMC) will meet today to decide on a recommendation to the President on whether he should declare a state of calamity in the areas affected by typhoon Ompong.
Socioeconomic Planning Secretary Ernesto M. Pernia, a member of the NDRRMC, said a technical working group (TWG) will meet again today to decide on the calamity recommendation.
Office of Civil Defense (OCD) spokesperson Edgar L. Posadas confirmed the meeting, saying: “NDRRMC through the leadership of OCD will convene a TWG to see if the parameters for declaring such were met. So then we’ll definitely make (a) recommendation… to the President.”
The Department of Finance (DoF) announced on Tuesday that it can tap a $500-million loan facility from the World Bank following a state of calamity declaration, and that it has recommended to the NDRRMC to consider proposing such a declaration.
In a statement yesterday, the DoF said the World Bank funding it expects to tap is known as the second Disaster Risk Management Development Policy Loan With A Catastrophe Deferred Drawdown Option.
It will provide the government immediate liquidity to help fund its disaster relief and reconstruction efforts, and can be immediately accessed 48 hours after a Presidential declaration.
The declaration will likely focus on the Ilocos Region, Cagayan Valley, Central Luzon and the Cordillera Administrative Region.
The loan facility, net of a 0.5% front-end fee, had an available balance of $497.5 million at the end of August, according to the DoF.
A state of calamity has not been declared since the second loan facility was extended by the World Bank in 2015, leaving the funds untapped.
The first loan facility was opened in 2011 following the destruction caused by typhoon Sendong (international name: Washi).
Under the loan terms, the government can tap all the funds at any time within three years.
The loan is payable in 25 years, including a 10-year grace period with an interest rate based on a variable premium over dollar 6-month LIBOR (London Inter-bank Offered Rate). — Elijah Joseph C. Tubayan

House begins plenary debate on 2019 budget

THE HOUSE of Representatives started plenary discussions on the 2019 budget Wednesday, with debate centered on the new cash-based budgeting system, which sets a use-it-or-lose-it procurement deadline of one year before funding authority expires.
The proposed 2019 budget, filed as House Bill No. 8169, is P3.767 trillion, slightly lower than the P3.767-trillion obligation-based budget for 2018.
If the 2018 budget is reckoned using the cash-based system, it will be worth P3.324 trillion, which means the 2019 proposed budget is higher if compared like-for-like.
The old obligation-based system allows for two years’ funding validity. The switch to a cash-based system was thought to accelerate spending and forcing the prioritization of projects that can be completed in the soonest possible time. The government is relying on spending to prop up economic growth, though it has faced resistance in the House due to perceptions that it amounts to a reduction in funding.
The House of Representatives has also argued that government agencies may not be able to adjust to the new scheme due to a public spending ban next year ahead of the midterm elections.
It also raised a protest after budget cuts in key agencies such as the Health and Agriculture departments, and suspended committee deliberations for over a week.
The Department of Budget and Management (DBM) defended the budget cuts, saying that the agencies concerned had failed to use their funding even under the old two-year deadline.
The House and the DBM later compromised on a payment period for contracted services over a 15-month period, along with a three-month Extended Payment Period after the fiscal year.
Representative Jose Ma. Clemente S. Salceda of the 2nd District of Albay sponsored and defended the 2019 budget during interpellation.
He said that the cash-based system, practiced by advanced economies, will speed up the delivery of public projects and services, and is more transparent.
According to the DBM, P1.377 trillion and P1.068 trillion are allotted for social and economic services, respectively.
“Social services are meant to benefit the poor and vulnerable with increased access to basic education, health care, social protection, and other social services. These programs include free tuition in state and local universities and colleges, unconditional and conditional cash transfers, social mitigating measures and the National Health Insurance Program, among others,” the DBM said in a statement yesterday.
“In addition, economic services are meant to boost economic productivity with higher investment in public infrastructure, agriculture and agrarian reform, environmental protection, and industry. These include a variety of infrastructure projects, agricultural productivity programs, livelihood-generating activities and many more,” it added.
General public services, which cover the government’s general administration expenses on items like public order and safety, foreign affairs, and fiscal management, amounts to P709.4 billion.
National defense has a P188.2 billion allocation while debt servicing is budgeted for P414.1 billion.
Majority Leader Rolando G. Andaya, Jr. has said that the House can pass the budget on third and final reading by October.
The plenary debate on the budget was originally scheduled for Monday, but was delayed to sort out differences in the committee report.
The Committee of the Whole moved to realign P51.792 billion from the budget of the Department of Public Works and Highways to other government offices.
Mr. Andaya also said that the amendments in the budget will be itemized transparently.
“There will be no post-enactment identification which is prohibited. Items need to be spelled out. However, there are augmentations that will be hard to itemize, like the budget for retained health workers, as it will be impossible to create what is basically a payroll. Every line in the General Appropriations Bill will comply with laws and judicial decisions on public expenditures,” he said.
“What is important is that we are opening the budget deliberations to improvements,” he added.
Meanwhile, Senators on Wednesday said they will move to block what they allege is pork barrel from the realigned P51 billion in DPWH funds once the budget proposal is transmitted to the Senate.
“If there is no basis (for the realignment) it needs to be slashed or realigned for other items… We will all look at the budget together to evaluate the viability and rationale for the new projects to be funded by the P51.792 billion,” Senator Panfilo M. Lacson told reporters.
“We will raise question on the floor until we are fully satisfied… I think the whole Senate is unanimous on this. We will cross party lines in order to make sure that the budget is transparent and is consistent with the priorities as laid out in the economic plans,” Senate Minority Leader Franklin M. Drilon told reporters.
“Nothing is written in stone as far as the Senate is concerned. Whatever the House adds or subtracts, we will study,” Senate President Vicente C. Sotto III told reporters on Tuesday. — Elijah Joseph C. Tubayan

DoTr now moving forward with Cebu, QC BRT after review

THE Department of Transportation (DoTr) said it is going ahead with the bus rapid transit (BRT) plans for Cebu City and Metro Manila’s Quezon Avenue, but added that a line serving the capital’s main bypass road, Epifanio de los Santos Avenue (EDSA) line, will face delays after its original funder backed out of the project.
Transportation Assistant Secretary for Road Transport and Infrastructure Mark Richmund M. de Leon said in a Palace briefing on Wednesday that the two BRT projects will move forward despite being initially met with opposition by the DoTr.
“We had an inspection with the World Bank team and NEDA (National Economic Development Authority), and we evaluated the conditions of the corridors of Cebu and Quezon Avenue]. We found out that it’s still possible to run a BRT in these corridors,” he said.
The Cebu BRT is a 23-kilometer dedicated bus lane approved in 2014 by the previous administration. Mr. De Leon said the project value is now P16 billion from the original P10.6 billion because of additional right of way costs.
In Metro Manila, the BRT line on Quezon Avenue had a government budget of P4.8 billion according to Mr. de Leon, while the EDSA line was supposed to cost P37.76 billion.
“We’re undergoing evaluation for EDSA. Previously there was a funder, who backed out of that program. So that’s why it hasn’t moved forward yet,” Mr. De Leon said.
“Cebu and Quezon Avenue are going ahead because those have a different funder, which is the World Bank,” he added.
Mr. De Leon said the department has notified the Department of Finance indicating its intention to proceed with the Quezon Avenue line.
“We will now proceed with the detail engineering design of the project. Detailed engineering design will proceed this year. It will go through a procurement stage]. In three years time, we’ll have a BRT,” he said.
Transportation Secretary Arthur P. Tugade has repeatedly expressed his opposition to BRT systems, citing the difficulty of dedicating a lane for buses in a congested areas.
The DoTr had even written NEDA to recommend cancelling the project, but NEDA asked the DoTr to provide compelling evidence for such an action. The transportation department eventually retracted its position in a July 27 letter to NEDA signed by Mr. Tugade, saying it will review the technical design of a BRT in Cebu.
In a chance interview with BusinessWorld last week, Institute for Transportation and Development Policy (ITDP) said a BRT system is ideal to speed the development of public transport in the Philippines.
“BRT, typically, is faster to build, it’s quicker to build, but also, cheaper and affordable for countries like the Philippines, Indonesia and Vietnam,” ITDP Country Director Yoga Adiwinarto said.
The research company which specializes in transport solutions said a BRT system empowers the commuting public because the dedicated lane privileges users on the road.
“The idea of a BRT is that it is a prioritization (scheme) for public transport users,” Mr. Adiwarto added. — Denise A. Valdez

CAAP reviewing Davao, Kalibo proposed airport bids

THE Civil Aviation Authority of the Philippines (CAAP) has started its review of two separate proposals to operate, manage and expand the regional airports in Davao and Kalibo after receiving an endorsement from the Department of Transportation (DoTr), the DoTr said Tuesday.
Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. said in a briefing that proponents Chelsea Logistics Holdings Corp. (CLC) and Mega7 Construction Corp. need the CAAP Board’s final approval before winning original proponent status as the two gateways are under its jurisdiction.
“In the case of other unsolicited proposals, most of these are under the jurisdiction of the Civil Aviation Authority of the Philippines. On the part of the Department of Transportation, we have endorsed to the CAAP Board a favorable consideration of the unsolicited proposals,” he said.
“The CAAP Board met yesterday (Sept. 17), and agreed to consider the unsolicited proposal and sit down with the proponent to discuss the terms and conditions of the offer,” he added.
According to Mr. Reinoso’s recollection, Dennis A. Uy’s CLC has a P49-billion unsolicited proposal for the Davao airport, while Mega7 has a P12-billion unsolicited proposal for the Kalibo airport — both over a 30-year concession period.
Mr. Reinoso told reporters the target is to complete the review of the proposals by the end of the year, on orders from Transportation Secretary Arthur P. Tugade.
CAAP spokesperson Eric B. Apolonio said by phone on Wednesday that he confirms the discussions are ongoing, and that they have been told by Mr. Tugade to expedite the process. He declined to discuss the timetable for the review.
Mr. Reinoso said once proponents CLC and Mega7 come up with the final content of their proposals and these are deemed acceptable by CAAP, the Board is expected to “subsequently endorse it to the NEDA Investment Coordination Committee (ICC) for consideration.”
The unsolicited proposal route requires CLC and Mega7 to secure original proponent status from the DoTr, and then go through evaluation from the NEDA-ICC.
Once past through both hurdles, their proposals will then be subject to a Swiss challenge, under which other companies may make counterproposals, which the original proponents have the option to match.
The development and rehabilitation of regional airports is part of the government’s aviation road map, which ultimately seeks to offer multiple airport options for passengers. — Denise A. Valdez