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4 energy projects classified ‘of national significance’

By Victor V. Saulon, Sub-Editor

THREE hydroelectric power projects, including those of the Aboitiz group’s in north Luzon, and one wind farm have been certified as energy projects of national significance by the Department of Energy (DoE) this month.

DoE data show the addition of the SN Aboitiz group’s Olilicon hydropower project and Alimit pumped storage had secured the certification as of April 10, 2019, along with Rio Norte Hydro Corp.’s 19.7-megawatt (MW) Ilaguen 3A hydropower project and Rizal Wind Energy Corp.’s 600-MW Rizal wind power project.

SN Aboitiz Power (SNAP), a joint venture of Norway’s SN Power AS and Aboitiz Power Corp., is developing the hydroelectric power plant in Alimit, Ifugao province through SN Aboitiz Power-Ifugao, Inc.

The Alimit hydropower complex is composed of three facilities: the 250-MW Alimit pumped storage project, the 120-MW Alimit hydroelectric plant, and a 20-MW Olilicon hydro power plant, which would bring in a total 390MW of electricity to the grid and help in securing power supply. The proposed facilities are in the municipalities of Aguinaldo, Lagawe, Lamut and Mayoyao.

In an interview in October 2018, SNAP President and Chief Executive Officer Joseph S. Yu said the company’s application was submitted in late September, making it among the latest addition to the hundreds of applications so far received by the DoE since the President signed Executive Order 30 in June 2017.

EO 30 intends to establish a simplified approval process and harmonize the relevant rules and regulations of all government agencies involved in the permitting process.

SNAP was issued the renewable energy service contract for the project in 2014. The signed agreement brings the renewable energy company and Ifugao a step toward building the first hydro power facility in the province.

On Oct. 4, SNAP and the municipal governments of Aguinaldo, Lagawe, and Mayoyao signed a framework agreement on the proposed Alimit hydropower complex to be located in Ifugao province.

The agreement outlines the cooperation, collaboration and obligations between and among SNAP as project proponent and the municipalities as hosts during the development and operation phase of the project.

Rio Norte Hydro Corp., a subsidiary of Citicore Renewable Energy Corp., is developing its run-of-river hydro-power project in Brgy. San Miguel, Echague along the Ilaguen River.

The hydro project is expected to supply 85 million kilowatts of energy yearly to the cities of Cauayan and Santiago, and the municipalities of Alicia, Angadanan, Cabatuan, Cordon, Echague, Jones, Luna, Ramon, Reina Mercedes, San Agustin, San Guillermo, San Isidro and San Mateo.

Aside from lower power rates, the community is also expected to benefit from the project’s socioeconomic development and infrastructure programs.

Data on the Rizal wind warm are not readily available at the DoE except for its proponent, which is Rizal Wind Energy Corp.

Rockwell earnings jump 21% in 2018

ROCKWELL Land Corp. saw its earnings jump by a fifth last year, driven by higher leasing income from the Power Plant Mall’s expansion and sustained reservation sales for its residential projects.

The Lopez-led property developer reported its attributable net income rose 21% to P2.55 billion last year from P2.14 billion in 2017.

Consolidated revenues ended the year at P15.68 billion, up 9.7% from P14.30 billion in the previous year.

The residential development segment contributed 86% of Rockwell Land’s revenues. Residential sales increased by 7% to P13.4 billion last year was “largely influenced by higher construction accomplishment for Edades Suites and Rockwell Primaries’ The Vantage as well as higher bookings of 32 Sanson, Grove and Vantage.”

Reservation sales grew by 30% to P14.9 billion, thanks to Proscenium, Arton and Aruga Resort & Residences — Mactan, which was launched in 2018.

Rockwell Land’s commercial development segment saw revenues surge 40% to P2 billion last year.

“Leasing Income, which accounts for bulk of the segment revenues, grew from P1 billion to P1.5 billion due mainly from the mall expansion and RBC (Rockwell Business Center) Sheridan,” the company said.

Retail operations generated P1.2 billion in revenues, 26% higher than in 2017 as the Power Plant Mall in Makati City added 5,600 square meters of leasable space. Cinema operations posted P277.7 million in revenues as the company opened six new cinemas at the mall.

For the office leasing segment, Rockwell Land said revenues more than doubled to P451 million due to a higher demand for occupancy in RBC Sheridan and 8 Rockwell. The Rockwell-Meralco BPO venture likewise added P701.4 million, up 2% year on year.

Hotel operations fell 9.3% to P283.5 million, after Aruga at the Grove was shuttered in September 2017. Rockwell Land is building Aruga Hotels Makati, which is expected to open by 2020. The Aruga Resort Mactan, located in Punta Engano, Lapu-Lapu City in Cebu, is currently in the planning stages.

“The Company spent a total of P12.7 billion gross of VAT for project and capital expenditures in 2018. Bulk of the expenditures pertained to development costs of Proscenium, Aruga Hotel in Makati, Aruga Resort and Residences — Mactan and final payments for new retail and office projects in 2018,” Rockwell Land said.

Rockwell Land is a subsidiary of First Philippine Holdings Corp., which owns a 86.58% stake as of end-December 2018. — Denise A. Valdez

MacroAsia books P1-B profit

By Denise A. Valdez, Reporter

MacroAsia Corp. recorded a 3% increase in its bottom line, as elevated costs dampened the sustained revenue growth of its in-flight catering units.

The listed firm owned by tycoon Lucio C. Tan said its attributable net income stood at P1.05 billion in 2018, from P1.02 billion in the previous year.

Revenues were up 22.5% to P3.6 billion, but was outpaced by a 29% increase in total direct costs to P2.77 billion.

“The increase in the current period is due to the higher labor costs of our ground-handling and catering subsidiary, driven largely by increases in manpower count due to the growth in business volume…,” it said in a regulatory filing.

MacroAsia said its ground-handling business is preparing for the opening of Terminal 2 in the Cebu airport.

The company’s main source of revenues continued to be its in-flight catering services, accounting for 46% of the total. Revenues from in-flight catering grew 8% to P1.66 billion in 2018, driven by the larger volume of meals served to its airline clients. It served 3.6 million meals in 2018 versus 3.5 million in 2017.

The ground-handling and aviation segment added P1.46 billion to the total revenues, 42% higher than the P1.03 billion it recorded in 2017.

“The growth is due to continuous passenger and ramp services for the domestic and international flights of PAL and PAL Express,” it said, adding it took over the ground-handling services for new foreign clients last year increasing the number of flights handled by 30% to 120,862.

MacroAsia’s water business jumped 90% last year to P271.04 million, on the back of its acquisition of Summa Water Resources, Inc. and revenues from Naic Water Supply Corp. (NAWASCOR) and Solano Water.

“Management remains confident about the Group’s future and its ability to grow profits. (Lufthansa Technik Philippines, Inc.) stands to benefit from a robust growth in its line maintenance business, as the planes for servicing from its core client which stood at 61 aircrafts at the end of last year, has currently grown to 79 aircrafts as of the year ended,” MacroAsia said.

The company operates five subsidiaries namely: MacroAsia Catering Services, Inc. (MACS); MacroAsia Airport Services Corp. (MASCORP); MacroAsia Air Taxi Services, Inc. (MAATS); MacroAsia Properties Development Corp. (MAPDC); and MacroAsia Mining Corp. It also has two associated companies, Lufthansa Technik Philippines, Inc. — a joint venture with MacroAsia Corporation (LTP), and Cebu Pacific Catering Services, Inc (CPCS).

Shang Properties income falls

SHANG Properties, Inc. (SPI) reported a 10% drop in net income attributable to shareholders to P3.01 billion last year on lower condominium sales.

In a regulatory filing, the listed property developer saw a 15% decline in turnover to P12.65 billion in 2018 from P14.8 billion a year ago. Turnover consists of sales of condominium units, and revenues from rental, cinema and hotel operations.

Sales of residential condo units slumped 39% to P4.99 billion in 2018 from P8.192 billion in the previous year “due to fewer available units for sale due to completed projects.”

Revenue from commercial leasing and cinema operations rose by 2% to P2.961 billion to P3.017 billion in the same period as higher rental yields from The Enterprise Center in Makati City offset the losses from the seven-month closure of Shangri-La Plaza Mall cinemas for renovation.

Shangri-La at the Fort’s hotel operations generated P3.2 billion in revenues, versus last year’s P2.6 billion on higher occupancy.

SPI’s projects include The Shang Grand Tower Project and The Rise Makati — both in Makati City; and Shang Residences at Wack Wack in Mandaluyong City. — VMPG

ALI’s Cebu unit grows profit by 14%

CEBU Holdings, Inc. reported a 13.8% increase in net income attributable to equity holders of the parent firm to P857.11 million in 2018 from P753.45 million a year earlier as the property company reported a strong growth in revenues.

In its annual report submitted to the stock exchange, the company said it had maintained favorable revenue growth at 20.4% to P3.72 billion from P3.09 billion in 2017. Net income reached P970.03 million, higher by 19.3% from P813 million previously.

“The bulk of the increase in revenues was primarily contributed by sale of commercial lots at Seagrove Estate, higher leasing income from office buildings, higher interest [and] other income and equity in net earnings from affiliates. The company’s other revenue contributors include leasing income from the mall, sale of residential lots at Amara, and sale of condominium units [and] club shares,” the company said.

Cebu Holdings, a 70.43%-owned subsidiary of Ayala Land, Inc., is engaged in subleasing of commercial spaces, food courts and entertainment facilities through subsidiary Cebu Leisure Co., Inc.

Cebu Leisure’s total revenue of P192.1 million was 4% lower than the same period in 2017 while net operating income stood at P64 million, the firm said.

Cebu Holdings’s operations consist of six types of activities, including strategic land management, mixed-use development, real estate business, commercial business operations and management, hotel development and operations, and proprietary sports club shares sales.

The holding firm owns and manages the Cebu Business Park, a 50-hectare business and commercial subdivision in Cebu City. The business park is the single largest operating IT economic zone in southern Philippines.

Cebu Business Park has 40 buildings in it, and has 10 ongoing constructions. Locators include Ayala Center Cebu, the shopping and lifestyle destination of the region.

The firm said Ayala Center Cebu recorded total revenue of P1.30 billion, 4% lower compared with the same period last year. It posted a net operating income of P 571 million.

The center’s overall gross sales performance of P7.6 billion for the period was 32% lower than the earlier year. It ended the fourth quarter with an occupancy of 96% and a lease out rate of 98%.

“The mall closed for twelve days due to the fire incident at Metro Gaisano last January 05, 2018 which resulted to the decrease in sales,” it said.

On Wednesday, shares in the company were up 2.52% at P6.50 each. — Victor V. Saulon

Yields on one-week term deposits drop

YIELDS on the one-week term deposits eased on Wednesday as the central bank lowered the volume of its facility to a record low.

Tenders for the term deposit facility (TDF) amounted to P30.15 billion on Wednesday, much lower than P50.321 billion in tenders received a week ago but more than thrice the P10 billion the Bangko Sentral ng Pilipinas (BSP) placed on the auction block.

Still, the decline in bids came as the TDF auction volume was cut to the lowest on record, with the BSP not offering 14- and 28-day papers this week.

Compared with the total tenders for the seven-day tenor last week, demand climbed a tad from April 10’s P29.696 billion.

Banks sought lower returns for the seven-day term deposits, with accepted yields ranging between 4.75% and 4.8% from the previous week’s 4.85-4.97% spread.

This led to an average rate of 4.7764%, lower than 4.8943% fetched in the previous TDF offering.

The TDF stands as the central bank’s primary tool to shore up excess funds in the financial system and to better guide market interest rates. Through the weekly auctions, the BSP wants to bring loan and interbank rates within their desired 4.25-5.25% range.

BSP Deputy Governor Diwa C. Guinigundo has repeatedly stressed that any perceived tightness in money supply is “temporary,” as financial firms continue to sit on piles of cash largely from deposits.

Next week, the central bank will offer eight- and 14-day term deposits worth P10 billion each.

“Offered tenors were adjusted in view of the regular public holidays on May 1 and June 12 which fall on a Wednesday,” the central bank said. — Karl Angelo N. Vidal

Risks to inflation “evenly balanced”

INFLATION RISKS are seen “evenly balanced” this year, even with the rise in prices expected to settle firmly within the government’s target, the Bangko Sentral ng Pilipinas (BSP) said.

“The risks to future inflation were seen to remain evenly balanced for 2019 while downside risks to the outlook were projected to dominate in 2020,” read the minutes of the central bank’s policy meeting held March 21, which were released on Wednesday.

The BSP said among the main upside risks to inflation for this year are pending petitions for electricity rates and fare adjustments, as well as proposed excise taxes levied on alcohol beverages.

The potential impact of a weak El Niño could also stoke inflation, the central bank said, as it “could lead to droughts in the first semester of 2019 and subsequently affect domestic production of rice and other agricultural commodities.”

“The onset of the El Niño phenomenon presents a potential upside risk to food inflation in the near term,” it said.

“Meanwhile, slower global economic growth due to protectionist policies in advanced economies as well as geopolitical tensions and the potential renegotiation for lower tariff rates on meat products continue to be the main downside risks to inflation,” the BSP added.

At its March 21 meeting, the BSP’s policy-setting Monetary Board voted to keep benchmark interest rates unchanged, citing the need to stay cautious given risks to economic growth even as inflation is steadily dropping.

Policy rates were kept within the 4.25-5.25% range, with the key rate of 4.75% still at a decade-high.

During that review, the central bank trimmed its 2019 inflation forecast to three percent from 3.1% previously on the back of the lower-than-expected February print and with the downward path seen to continue for the rest of the year. Meanwhile, the 2020 forecast was kept at three percent. Both are well within the BSP’s 2-4% full-year target range.

Headline inflation eased for the fifth straight month in March to 3.3% — the slowest since January 2018’s 3.4%. This is slower than the 3.8% print in February and 4.3% in the same month last year.

Year-to-date, inflation averaged at 3.8%, within the BSP’s target range for 2019. The BSP’s next rate-setting review is on May 9. — RJNI

Peso ends flat on positioning ahead of break

THE PESO was steady against the dollar on Wednesday amid volatile trading and positioning by market players ahead of the Holy Week break.

The local unit ended the shortened trading week at P51.765 versus the greenback, flat from Tuesday’s close.

The peso opened the session weaker at P51.80 per dollar, even slipping to as low as P51.88 intraday. However, it recovered in the afternoon session, logging a high of P51.74 against the US currency.

Trading volume grew to $994.38 million from $810.45 million that switched hands the previous day.

A foreign exchange trader said the peso moved erratically within the day even as it closed flat from the previous session.

“Even though it was unchanged, we saw some volatility. Initially, it traded higher given some demand in the morning offshore,” the trader said in a phone interview.

“Most likely, people are positioning ahead of the long weekend. When it traded higher in the morning and all of the demand was already covered, they reinstated their short position at the higher level then push it lower.”

Local financial markets will be closed on Thursday and Friday for the Holy Week break. During the period, remittances abroad are expected to pile up, which can only be exchanged once the markets open on Monday.

“Given the long weekend, we can see accumulated flows, which will push dollar-peso [stronger] most likely this Monday,” the trader added.

Meanwhile, another trader said the peso was flat on Wednesday as market participants remained cautious ahead of key US economic data scheduled to be released later this week when local markets are closed.

“US retail sales report for March 2019 is expected to come out stronger from previous reading,” the second trader said in an e-mail.

Retail sales in the US unexpectedly fell 0.2% in February, a reversal from the previous month’s upward-revised 0.7% increase, as consumers reduced purchase of food, clothing and electronics among others. The economic data for the month of March will be released Thursday. — Karl Angelo N. Vidal

PSEi stays above 7,800 in quiet trading ahead of break

STOCKS ended mostly flat on Wednesday as trading was quiet ahead of the Holy Week break.

The bellwether Philippine Stock Exchange index (PSEi) climbed 0.11% or 8.69 points to close at 7,835.15 on Wednesday. The broader all-shares index also went up 0.17% or 8.54 points to end at 4,836.68.

“A quiet trading session today heading into Holy Week with the Nasdaq [Composite index] breaking the key 8,000 level. US markets rose with the Nasdaq breaching above the crucial 8,000 handle for the first time in six months as investors digested a slew of corporate earnings,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message on Wednesday.

“Value turnover was indeed low at only P4.9 billion (ex-blocks), and only at P3.3 billion (ex-crosses),” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.

Total value turnover stood at P5.45 billion on Wednesday as 694.40 million shares changed hands, down from the previous session’s P7.14 billion.

Mr. Perez noted that Robinsons Land Corp., Bloomberry Resorts, Corp. and PLDT, Inc. recorded the biggest gains on Wednesday at 5.2%, 3.5% and 2.4%, respectively.

Sector counters were split between gainers and losers. Services led advancers, gaining 1.45% or 23.02 points to close at 1,607.61. Financials rose 1.41 or 24.36 points to 1,741.70 and industrials increased 0.07% or 8.55 points to 11,612.93.

Meanwhile, mining and oil shed 0.7% or 54.98 points to close at 7,734.42; holding firms fell 0.69% or 52.48 points to 7,494.89; and property declined 0.35% or 14.68 points to 4,180.35.

Advancers trumped decliners, 110 to 73, while 45 issues closed unchanged.

Foreigners turned net sellers on Wednesday, logging a P63.33-million net outflow. This is a reversal of the previous day’s net purchases worth P365.97 million.

“PSEi’s movement on Monday could likely be dictated by how US markets move for the next 3 nights given the lack of catalysts in the local front, so best to watch out for that,” Mr. Perez said. — D.A. Valdez

Tax reform uncertainty to linger

By Charmaine A. Tadalan
Reporter

THE REMAINING PACKAGES of the tax reform program — a key support of the government’s P8-trillion stepped-up infrastructure development push, will continue to face uncertainty in the new 18th Congress that opens on July 22, according to one legislative leader.

Asked on prospects of future tax reform bills after two earlier measures were watered down after going through the eye of a needle in both chambers of the 17th Congress, Senate President Vicente C. Sotto III said in a mobile phone message on Monday that this and other priorities will be “up for discussion with the executive department after elections.”

“We need to discuss. It’s touch and go,” said Mr. Sotto, who is one of the 12 incumbent Senators who will serve in the 18th Congress.

The country will be voting for a new House of Representatives and half the Senate, besides a host of local government positions on May 13.

A Global Markets Research note released by Nomura International (Hong Kong) Ltd. on April 11 said President Rodrigo R. Duterte will likely have enough allies in Congress to push remaining tax measures after elections, citing his consistently high public satisfaction ratings.

The Department of Finance (DoF) said separately that it will continue to impress on lawmakers — especially newly elected ones — the indispensable role tax reforms play in shifting the tax burden on those who can afford to pay more, increasing collections in the process that will help fund improvements in social services and infrastructure. By law, all tax measures have to emanate from the House.

“We will continue our efforts to convince about the economic benefits of the tax packages,” Finance Assistant Secretary Maria Teresa S. Habitan said in a mobile phone message on Tuesday.

“DoF has been consistent in our advocacy to have the remaining tax reform packages passed by Congress as soon as possible. We believe that the Senate is still able to do its part in making this happen. Otherwise, we will again submit the tax reform packages to Congress,” she also said.

The 17th Congress, now on a Feb. 9-May 19 break for the May 13 midterm elections, will have just May 20-June7 to act on remaining legislative measures. Mr. Sotto had said on March 20 that it was “doubtful at this point” that his chamber could approve any more tax reforms in those remaining session days. Bills left unapproved by both chambers at the end of that period will have to be refiled in the 18th Congress.

Mr. Duterte has so far signed two tax reforms into law, while bills providing three more tax reform packages have bagged final-reading approval at the House of Representatives but remain at committee level in the Senate.

Enacted were Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which slashed personal income tax rates and increased or added levies on various goods and services, besides removing several value added tax exemptions, as well as RA 11213, or the Tax Amnesty Act, which grants estate tax amnesty and amnesty for delinquent accounts that remained unpaid even after being given final assessment by the Bureau of Internal Revenue.

Other tax reforms pending in the Senate Ways and Means committee entail bills to reduce corporate income tax rates and remove redundant fiscal incentives, simplify the tax structure of the financial sector, centralize real property valuation and assessment; increase government share in mining revenues and even higher excise tax rates for alcohol and tobacco products.

Asked if such uncertainty will push Mr. Duterte to intervene again to push tax reforms, Presidential Spokesperson Salvador S. Panelo replied: “Hindi, kasi alam na ng members ng Congress ang mga projects ng Presidente (No need, since members of Congress know the President’s projects).”

“If they’re supportive, they will support it.”

TRAIN was heavily watered down as it went through both the House of Representatives and the Senate, even after Mr. Duterte had talked to lawmakers in early 2017 and made a veiled threat in a State of the Nation Address afterwards about withdrawing support for the candidacy of one Senate leader come elections.

For Ateneo Policy Center senior research fellow Michael Henry Ll. Yusingco, a lawyer, much will depend on Mr. Duterte’s public satisfaction ratings in the second half of his term, which ends in mid-2022.

“I do not think tax reform will be a priority of Congress this year. Maybe it will be tabled early next year, if at all. Depends on the popularity of President Duterte by that time. If his trust ratings remain very high, then the administration may still have a decent chance at pushing tax reform legislation,” he said via e-mail, Monday.

“But if his trust ratings slide down to poor or bad, then the administration will likely abandon any tax reform initiatives. And Congress will not be keen by then to touch this matter for sure.”

Mr. Yusingco added Congress is more likely to focus on charter change and reforms in the water and power sector, in light of the recent crises.

2019 budget cut down to P3.66 trillion after veto

MALACAÑANG on Tuesday said the P95.3-billion allocations President Rodrigo R. Duterte vetoed in the original P3.757-trillion national budget for 2019 were found to be “unconstitutional.”

“Those are the so called ‘insertions,’ ‘riders,’ they are not part of the program by the DPWH (Department of Public Works and Highways), hence, they violate the Constitution,” Presidential Spokesperson Salvador S. Panelo said in a briefing, Tuesday.

Mr. Duterte on Monday signed the national budget into law as Republic Act No. 11260, or the “General Appropriations Act for Fiscal Year 2019.”

He partially vetoed the budget, cutting it to P3.662-trillion, including P95.3 billion under the DPWH budget which Mr. Panelo confirmed were among the post-ratification realignments.

Asked if the vetoed items were among the “last-minute” fund realignments made by the House of Representatives, Mr. Panelo replied “Correct, it is.”

Among others, Mr. Duterte also directly vetoed some appropriations under the Department of Labor and Employment-National Labor Relations Commission, Department of Agriculture, Department of Health and Department of Trade and Industry.

The 2019 budget, which failed to secure year-end 2018 enactment, was transmitted to the Office of the President on March 26 after a row between the House of Representatives and the Senate over alleged realignments made after its ratification on Feb. 8.

Senator Panfilo M. Lacson, Senate Finance committee vice-chairman, said budget is now “pork-free” after the partial veto.

“I am confident the 2019 budget is now-pork free as the Senate leadership made sure that our LBRMO (Legislative Budget Research and Monitoring Office) had scrutinized enough before submitting to DBM (Department of Budget and Management) under (Acting) Sec. Janet (B.) Abuel the list of questionable items,” Senator Lacson said in a statement on Tuesday.

“The economic team in turn promised to go over the list, and more with a fine-toothed comb, including individual insertions made by some senators amounting to at least P20B[illion].”

House Appropriations committee Chairman Rolando G. Andaya, Jr. of Camarines Sur’s 1st District, however, that insertions by some senators could still be “intact”.

“It behooves the Senate to tell the people how much in their insertions were carried in the national budget, and how big is the bacon each senator is bringing home.”

Sought for comment, Political Science Professor Marlon M. Villarin of the University of Sto. Tomas said the recent budget development might affect the President’s rapport with members of the House of Representatives and some local officials.

“Socially, it won’t affect President Duterte’s priority projects because all are programmed well in the 2019 budget,” Mr. Villarin said in a mobile phone message on Tuesday.

“But this will politically affect his relationship both with members of the House and some local gov’t officials who already hoped the President will dispense what their districts need.”

At the same time, “[t]his move by the PRRD doesn’t mean he is siding with the Senate,” Mr. Villarin said, using Mr. Duterte’s initials.

“The President is just being (politically and legally) consistent with his promise to the people that, under his watch, corruption such us illegal fund insertions in the national budget (as practiced by previous administrations) will never be tolerated.” — Charmaine A. Tadalan

Work under way to move up Doing Business list

THE PHILIPPINES is targeting an improvement in rank in the World Bank’s annual Doing Business survey to above 95th place by 2020 from 124th out of 190 economies in the 2019 report, as the government said it has been pursuing reforms to improve the regulatory environment for businesses.

Trade Secretary Ramon M. Lopez told reporters on Tuesday the government has now implemented 33 out of 43 reforms designed to further improve ease of doing business in the country.

“We’re happy to note that for this year… we are submitting 43 reform initiatives, and 33 reforms accomplished na. This is again an effort to propel to a much better ranking,” he said as the Quezon City government signed ease of doing business agreements on Tuesday.

These reforms include Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, RA 11232 or the Revised Corporation Code of the Philippines, and RA 11057 or the Personal Property Security Act of 2018.

Asked about the targeted rank for the Philippines, Mr. Lopez replied: “I would say 90-94 might be a good number; high 80s to 94” explaining that even if just 25-28 of the 33 accomplished reforms will be recognized for the next assessment, that should be enough to push the country above 95th place “na (that was our) best score natin a couple of years ago.”

The World Bank’s Doing Business 2020 report is scheduled to come out in October.

The government of Quezon City — which is used as basis for the Philippines’ doing business rank — signed at the Quezon City hall memoranda of understanding (MoU) with the Land Registration Authority (LRA), Metropolitan Waterworks and Sewerage System (MWSS) as well as water and electricity concessionaires Manila Water Co., Inc.; Maynilad Water Services, Inc. and Manila Electric Co. (Meralco) to simplify processes for registration and permits within the city.

Quezon City Mayor Herbert M. Bautista said the streamlining of processes for construction permits “will make it so much easier for the public to apply for new water connections and for the installation of electric poles.”

The World Bank assesses the doing business competitiveness of countries based on 10 indicators, namely: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

Mr. Lopez said Quezon City has already been working on five of the criteria, namely: starting a business, dealing with construction permits, getting electricity, registering property and paying taxes.

He said that while all local governments are encouraged to improve their doing business environment in order to encourage entrepreneurs and attract investors, Quezon City took the lead in signing MoUs because it is the Philippines’ benchmark in the World Bank report.

He also noted that since the World Bank survey has been under way for the 2020 report and will enter the validation stage by early May, the recent MoUs in Quezon City may not be taken into account yet.

“Pero sabi nga namin [But as we said], the reforms and the momentum should continue, even after the survey… We have to continue the momentum of these reforms so that, by the end of the year moving into next year, mafi-feel na ’yung improvements [you could feel the improvements by then],” Mr. Lopez said. — Denise A. Valdez

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