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Nintendo says to shift part of Switch console production out of China

TOKYO — Nintendo Co. Ltd. plans to shift part of the production of its Switch gaming console to Vietnam from China to diversify manufacturing sites, a spokeswoman at the Japanese video game maker told Reuters on Tuesday.

The move would make Nintendo the latest company to relocate production out of China amid a Sino-US trade war punctuated by tit-for-tat import tariffs spanning industries.

Nintendo, which outsources almost all Switch console production to contract manufacturers in China, plans to make the partial shift to Vietnam this summer, the spokeswoman said.

The shift is aimed at diversifying risks and not to escape the impact of potential tariff hikes by Washington on products imported to the United States from China, the spokeswoman added.

The Nikkei first reported the plan earlier on Tuesday.

Other Japanese firms looking to move production from China include electronics maker Sharp Corp. and photocopier manufacturer Ricoh Co. Ltd.

Last month, the Nikkei business daily reported that US technology leader Apple Inc. has asked major suppliers to assess the cost implications of moving 15% to 30% of their production capacity to Southeast Asia from China as it prepares to restructure its supply chain.

Washington has held off launching a fourth tranche of tariffs on $300 billion worth of goods, a measure that would see almost all Chinese imports to the United States impacted by tariffs. — Reuters

Rediscount loans climb

BANKS increased their availments from the central bank’s rediscount window in June, with the credit going to commercial, production and other transactions.

Peso rediscount loans reached P21.854 billion last month, 80.99% higher than the P12.075 billion borrowed in May, the Bangko Sentral ng Pilipinas (BSP) reported Wednesday.

Total availments from January to June amounted to P107.653 billion, a surge from the P9.776 billion availed in the first semester of the previous year.

The central bank’s rediscount facility lets banks get their hands on additional cash by accepting a lenders’ collectibles as collateral for short-term credit.

The banks can then use the fresh money supply — either in peso, dollar, or yen — to hand out more loans to corporate or retail clients, as well as service unexpected withdrawals.

In a statement, the BSP said that bulk of the loans were used to fund other credits amounting to 67.32% — comprised of capital asset expenditures (43.6%), loans to other services (19.37%), permanent working capital (4.3%) and housing loans (0.05%).

Commercial credits meanwhile had a 32.66% share in the total availments, which banks used for importation (24.42%) and trading of goods and products (8.24%).

Production credits were at 0.02% of the total and went to loans for agricultural production.

On the other hand, the dollar and yen rediscount window catering to export firms remained untouched during the period.

RATES
Meanwhile, for this month, rates for peso rediscount loans remain unchanged.

Rediscount rates stand at 5.0625% for peso loans maturing in 90 days or less, while those with a 91- to 180-day term are priced at 5.125%.

These are based on the latest available BSP overnight lending rate plus a premium.

Dollar credit lines come with a lower rate of 4.31988% for one- to 90-day loans; 4.38238% for 91- to 180-day loans; and 4.44488% for 181 to 360-day loans.

Meanwhile, rates for yen loans declined to 1.9345% for one to 90-day loans; 1.997% for 91- to 180-day loans; and 2.0595% for 181 to 360-day loans.

These reflect the 90-day London inter-bank offered rate as of end-May plus 200 basis points plus term premia. — RJNI

Cardona water treatment plant helps boost Manila Water supply

MANILA Water Co., Inc. said its Cardona water treatment plant in Rizal province had been producing up to 63 million liters per day (MLD) as of Sunday, July 7, helping the water concessionaire narrow the supply gap that has burdened its customers since March.

In a statement on Wednesday, Metro Manila’s east zone water service provider said aside from the new water treatment plant, supply has also been augmented by the rehabilitation of existing deep wells and the construction of new ones. The total yield from all operational deep wells has reached 58 MLD.

Manila Water also cited the reduction of its system loss or non-revenue water (NRW) as among the reasons that helped ease the water deficiency that started from 150 MLD in March and reaching almost 350 MLD in late June when the National Water Resources Board (NWRB) reduced its allocation for domestic use in Metro Manila from Angat Dam.

“With an average production of 1,500 MLD, the 4.5% improvement in NRW translated to almost 70 MLD volume of water which we can use to help to bridge the deficit,” said Manila Water Chief Operating Officer Abelardo P. Basilio.

From an average of 12% NRW from late last year to early this year, it has been reduced to 7.5% in June 2019.

“While we have increased our efficiencies and the technical solutions we have put in place are ensuring we are able to distribute the still-limited supply as equitably as we can, we cannot rest and let our guard down,” Mr. Basilio said.

“The water supply situation remains volatile and continue to change day to day as Angat, Ipo and La Mesa dams remain in sub-ideal levels. We are keeping to our commitment of working towards 24/7 supply at 7 psi pressure, or reaching only up to the ground floor, for all customers,” he added.

In March, Manila Water said the Cardona facility was expected to add 31 MLD within that month before reaching 50 MLD by end-March and hitting its full capacity of 100 MLD by August.

In the same month, it said deep wells would add about 30 MLD more, while discussions were in place with the other Metro Manila concessionaire for a cross-border flow of 32 MLD to help ease the shortage.

The east zone concessionaire has been experiencing a water supply deficit since March 6, which came about as water demand reached 1,750 MLD while supply remained at 1,600 MLD. The Cardona water treatment plant failed to meet its target launch in late 2018 because of technical issues. — Victor V. Saulon

Pig out

By Noel Vera

Restaurant Review
Au Pied de Cochon
536 Avenue Duluth E, Montréal,
QC H2L 1A9, Canada

I REMEMBER Anthony Bourdain’s Quebec episode in his show No Reservations, quoting his host Martin Picard. “Tonight I will keel you,” Picard had said, to which Bourdain added: “these are words I don’t take lightly.” Picard proceeded to “keel” Bourdain with one spectacularly rich and extravagant dish after another, to end with the palate cleanser of a whole roasted suckling pig, bisected snout wrapped in 24-karat gold leaf.

“You can eat it and the day after you’re shitting gold,” Picard told his guest. I vowed ever since that someday somehow I would visit the scene of the massacre.

Thirteen years later and there I was at Picard’s Au Pied de Cochon, one of the pioneering restaurants that helped put Montreal on the international culinary map. It’s a relatively quiet little place: storefront of glass and wood that folded aside to let in light and air; street deck with tables; and — love this — planters full of herbs: rosemary, and cilantro, so forth. I peered closely at the cilantro: some of the stems had been cut. They’re not just decor; the herbs were being used.

A HUGE ENCHANTED HEART
Inside was simple: wide hallway with white ceiling, mirrored wall, wooden floor; the only sign of extravagance was the bar, a gleaming wood behemoth that dominated half of the bistro, the back wall an Aladdin cavern glittering with a rainbow selection of liquor bottles — if the heart of a restaurant is the bar, this had a huge enchanted heart.

We pored over the menu. No, we couldn’t order everything: I hadn’t the budget (24K gold leaf!) or liver or arteries. I needed to be selective, so I gave up ordering the cured foie gras and boudin tart or the mapo tofu and foie gras. (Tofu and goose liver? The textures are so similar — was that the point?) We settled on one relatively unusual starter and four classics. Drinks were a mojito, a lemonade sweetened with maple, and two glasses of water.

I’d noticed a big basket at the bar heaped high with what looked like boulders. The waiter took one boulder, sawed it in half, into wedges, served it to us — turns out they were bread with a finger-tappable crust, burnt almost, inside a pillowy crumb; with a ramekin of butter one can almost make a meal of it. “Careful,” I said to my dining companions. This was a preemptive strike; the actual assault had not yet begun.

It began with poutine. The Quebecois classic of a heap of french fries with gravy and cheese curds (basically chunks of squeaky cheddar) given a Picardish upgrade with even larger chunks of seared foie gras. The fries still had some crisp, the gravy was the richest I’d ever had (and I’ve had a few ’round Montreal and Toronto and a few travesties in the United States, even whipped up a version in my own kitchen). Turns out, yes, they incorporated foie into the gravy, hence the incomparably creamy texture and depth of flavor.

Tartare temaki followed, served on a little tree stump. Crisp cone stuffed with sushi rice, a peacock fantail of a lettuce leaf, fried string potato streamers, a quail egg crowned for easy pouring, and raw chopped red meat. Pour the raw egg on the meat, toss shell aside (of course), bite. Crisp nori and potato strings, tender rice, lean well-seasoned meat (it could have been beef or even tuna with its irony flavor but it wasn’t), raw egg (arguably the best steak sauce ever) for fattiness.

Oh, did I mention that the full name of the dish is tartare temaki de cheval? Apparently, it is available all over Europe, South America, Asia, even the Philippines (of course) — only we fry it and dip it in vinegar. The Japanese like to serve it raw; so does this place. The quail egg was a simple yet decadent touch.

The server then presented a knife with a thin blade, wicked sharp, bright plastic handle. I gripped it with one hand and looked about for something to stab.

Came the canard en conserve. We stared at the can that was printed front and back with funny cartoons. Were we supposed to puncture the can? Fortunately the server (helpful and friendly, though the French accent was a bit difficult to decipher) arrived in time with a can opener, explaining as he opened the tin that it’s half a duck breast, balsamic reduction, garlic, cabbage, carrot, celery, onions, and two sprigs of thyme stuffed into a can, boiled for some 27 minutes.

The server upended the can over a plate of toast and carrot puree: the contents landed with a soft plop. We stared at it: didn’t look like a lot — a slice of meat, a whitish roll of fat, a large slice of foie, dark gravy.

Turns out this may have been the single heaviest dish of the meal. The breast was a rare red, the way duck breast should be served — like prime steak. How could they boil this for 27 minutes and not leave the meat overdone? That, I’m guessing, is where the precise cooking time plays a role. The sauce was sweetly understated and a little tart, nice counterpoint to the almost overwhelming richness.

The foie had become both yieldingly, meltingly tender and startlingly resilient in the can; when I tried to slice it, the foie embraced the blade — it was like jello only a jello that wouldn’t cut, just swelled and slithered away. Had to chase it round the plate and pin it down with a fork before it gave up and allowed dismemberment.

In the mouth the foie just… faded, leaving a trace of butter on the tongue. The memory still haunts me weeks later.

The fat was fat; the knife blade bounced even harder off its mottled sheen than with the foie. I gave up; the biggest dish of the meal was arriving. “You, I — later,” I promised the slice of duck lard.

Finally the pied de cochon, the restaurant’s signature dish (this and the duck): an entire pig’s foot, partially deboned, stuffed with pork shank-and-foot meat, braised with mushrooms, onions, garlic, rosemary, pork stock and white wine, baked till the skin was crispy, then topped with two honking huge slices of seared foie.

The meat was falling-apart tender; you could taste the earthiness of the mushrooms, the deep funk of foie and pork stock, the crisp tartness of the wine. I swear they coated the skin with a spicy breading, though the Food Network recipe says nothing; Picard keeps some secrets, as would any chef.

At that point it hit us like a baseball bat to the belly: we were as tightly stuffed as this foot we were attempting to eat. And yet we wanted more: the sauce of both the canard and the cochon was addictive, like liquefied crack; I was tearing off pieces of the boulder — sorry, bread — and sopping it in the sauce.

We foolishly opted for dessert. Pouding chômeur, made out of stale bread and maple caramel, was invented by women factory workers during the Great Depression in Quebec. Unlike the other dishes, the pudding didn’t seem to have been fiddled around by the restaurant at all. It is basically a cake batter drowned in maple and cream, then baked till the cake rises up out of the thick sauce and browns. Was it delicious? It was a cake, in maple and cream — does the sun rise in the east?

LEFTOVERS, EVEN MORE DELICIOUS
Epilogue: About a week later, I broke open the leftover containers: basically a chunk of pork shank in sauce, a roll of duck fat in its sauce, and half a boulder. I warmed the boulder in a toaster oven, microwaved the others.

Whaddaya know? The food was, if anything, even more delicious. The sauce had melded; the flavors had deepened; the funk was more pronounced. The roll of duck fat I managed to slice thin with a serrated knife (note to serial killers and carnivores: fat and skin cut easier when the blade’s serrated) and laid on a slab of boulder, like lard on bread. It was a gorgeous bite of food.

Mark Twain once wrote: “In a barrel of odds and ends it is different; things get mixed up, and the juice kind of swaps around, and the things go better.” Picard served us a barrel of food; the magic ingredient turned out to be the passage of days; things went much much better this time around.

Move over Monopoly: Hasbro’s next big growth engine is Magic playing cards

IN THE BATTLE for gaming dominance, Hasbro Inc. has what it hopes is an ace up its sleeve — in a deck of playing cards that hit the market 26 years ago.

Not a standard deck, to be sure, but packs costing just $4 each that millions of devotees use to play Magic: The Gathering. Hasbro recently digitized it and has been testing an open beta version since September. The online incarnation is a hit, according to the company, and the payoff could be big after the official launch later this year.

“This is one prong of their brand blueprint they’ve proven they can execute on,” said Brett Andress, an analyst at KeyBanc Capital Markets who sees Magic’s newest digital iteration adding as much a 98 cents a share in incremental earnings to results by 2021 — at least a 20% boost. “The writing is on the wall that this is going to be a very profitable platform for them.”

Hasbro acquired the card game’s owner, Wizards of the Coast, two decades ago, and left it virtually unchanged technology-wise. The low-tech Magic has been doing fine, attracting an enthusiastic following around the world. About 38 million people have played at least one round, the company says.

The expectation is that the PC-based version — called Magic: The Gathering Arena — will ultimately draw a bigger crowd. For one thing, at least 20 million one-time players of the card game have “lapsed,” Andress said. They’re part of the potential market for the online game, colloquially dubbed “Arena,” where players still stage battles between spell-casting wizards called planeswalkers but games are quicker to play.

The online game also doesn’t require people to leave the house to play with friends across town like the physical game does, giving Hasbro hope it will attract back some of the former fans who put down their cards to start families and full-time jobs. Nearly 3 million active users will be playing Arena by the end of this year, KeyBanc estimates, and that could swell to nearly 11 million by 2021 according to its bull case scenario — especially if it expands from PCs to mobile. That’s just active users, and registered users could be higher by the millions. Already, according to Hasbro, a billion games have been played online.

Right now, there’s a market of about 250 million people who are into collectible- or trading-card games like Magic, according to Wizards of the Coast President Chris Cocks, whose unit also owns the Dungeons & Dragons property. Arena could “appeal to a very large number of those players.”

“To date, Magic has been something you can buy in stores, mostly hobby stores, but not everyone has a good hobby store in their home town,” he said. “We think digital is a great way to introduce a fantastic game to them with very low barriers to entry.”

Hasbro is banking on the game being more than a fun new product for fanboys. Magic is part of the company’s “franchise brands,” a segment that accounted for $2.45 billion in net revenue for the company last year, bigger than its emerging, partner and gaming brand units combined. Cocks said Magic accounts for a “meaningful portion” of that, with KeyBanc estimating the game’s contribution is already more than $500 million — including both the physical cards and the nascent digital version. Of the franchise brands, only Magic and Monopoly logged revenue gains last year, with Nerf, Transformers, Play-Doh and My Little Pony all down.

Cocks, who joined Hasbro about three years ago with the mandate of building Arena, entered the video game industry in 1999 when he joined Microsoft to work on a “secret, little-known project called Xbox,” he said. He helped launch the console, running publishing for games like Halo, Fable and Oddworld. By building the game in house instead of licensing the work out, Hasbro was able to maintain healthy margins on the project, KeyBanc’s Andress said. Hasbro also been working on a Magic series for Netflix.

Fueling growth is the maturing esports segment, which could be on track to challenge traditional sports in popularity and money. Hasbro Chief Executive Officer Brian Goldner said at a conference in May that Arena has become a top-10 brand for esports and on Twitch, a live streaming video platform where gamers can watch each other play. Wizards of the Coast has dabbled in digital riffs before — including early attempts to mirror the original table-top game — but none of those versions caught on in a meaningful way to expand the user base.

To be sure, Magic’s player ranks are still a drop in the bucket to rival Hearthstone, an Activision Blizzard Inc. game has an estimated 70 million to 80 million registered users and earns annual revenue of more than $600 million, KeyBanc estimates.

But Magic has a lot of upside. Arena users are playing an average of eight hours per week, Hasbro’s Goldner says, and even though the game can theoretically be played for free, each player is spending about $75 annually on in-game currency, or “gems,” according to KeyBanc. And it’s these numbers that explain why Wall Street analysts are eager for more details from management on their quarterly earnings calls. “Arena” was mentioned 18 times on the company’s last earnings call, compared to six “Monopoly” references.

The paper-card version is not going away. But to encourage more users to try out Arena, Hasbro is funding elite tournaments with big prize pots where viewers can follow along at home. The Arena pro league has a $10 million prize pool, with 32 elite players on $50,000 contracts. Pro players can bank an additional $20,000 to stream on Twitch. Pro Arena player William “Huey” Jensen, 36, said the $70,000, in addition to individual sponsorships, easily puts him at more than $100,000 in annual earnings.

“I’ve been through every sort of different way that professional Magic existed: when it was purely paper, when it was a bit more online and now where we have Arena,” said Jensen, who entered the Magic Hall of Fame in 2013 when he was still playing the physical card game. He then took off a few years from Magic to compete in poker instead, before returning to competitive play via Arena’s pro league. “Clearly from my perspective, Arena is the product of the future for sure.” — Bloomberg

Acevedo is new RCBC president, CEO

EUGENE S. ACEVEDO — WWW.RCBC.COM

VETERAN BANKER Eugene S. Acevedo took the helm of Rizal Commercial Banking Corp. (RCBC) this month following the retirement of the lender’s former chief.

In a statement, the Yuchengco-led bank said Mr. Acevedo has taken over as president and chief executive officer of RCBC effective last July 1, replacing Gil A. Buenaventura who stepped down from office to retire.

Mr. Acevedo served as RCBC’s deputy CEO for six months prior to his appointment.

He also held senior leadership positions in several financial institutions, with the latest one being chairman of CitySavings Bank, Inc., the thrift lending arm of UnionBank of the Philippines, Inc.

During his term in CitySavings, his team used technology to transform customer experience and produced the highest return on equity in the industry, delivering over a third of UnionBank’s earnings, the statement said.

Mr. Acevedo also held senior leadership positions in Citibank. He was also president and CEO of Philippine National Bank in 2010-2011.

RCBC said Mr. Acevedo — a technology advocate — is “expected to lead the bank’s digital transformation journey.”

RCBC added that the new chief executive has drawn the bank’s roadmap for growth to improve revenue and profitability by renewing focus on retail and small and medium enterprise (SME) businesses, implementing key organizational changes, redefining goals and rationalizing processes.

“Our big goal is to go back to being number five in terms of resources and profitability,” Mr. Acevedo was quoted as saying in the statement.

Mr. Acevedo told reporters following RCBC’s annual stockholders’ meeting late June that the bank eyes to increase the share of its retail and SME lending business to half of its total loan book by tapping the middle-income segment.

RCBC was the tenth-largest bank in the Philippines in asset terms at end-March with P537.64 billion, latest central bank data showed.

Mr. Buenaventura, who served the bank for the past three years, will continue to be a member of RCBC’s board of directors, the bank said.

The lender booked a P1.3-billion net income in the first quarter, up 15% from P1.1 billion recorded in the same period in 2018, driven by sustained core business growth.

RCBC shares closed at P26.35 apiece on Wednesday, down 25 centavos or 0.94% from the previous day’s finish. — K.A.N. Vidal

PHirst inks loan deal with Security Bank

PHirst Park Homes, Inc. on Wednesday said it has signed a P450-million loan facility with Security Bank Corp. for the development of a residential community in San Pablo, Laguna.

In a statement, the joint venture company of Century Properties Group, Inc. and Mitsubishi Corp. said that loan will be used to develop the 18.5-hectare PHirst Park Homes San Pablo, which was launched in March.

PHirst said it will soon start the land development and construction of the community’s first 527 units. In total, PHirst Park Homes San Pablo will have 1,640 units.

PHirst Park Homes San Pablo is located along Maharlika Highway, Brgy. San Ignacio, and can be accessed through South Luzon Expressway via Santo Tomas Exit. It is also just a few minutes away from SM City San Pablo.

At the same time, Security Bank will offer end-user financing to PHirst Park Homes buyers in San Pablo; Tanza, Cavite; and Lipa, Batangas.

Security Bank is offering 90% loan value of the total contract price, with flexible loan terms at 25 years maximum, and a three to five-day turn-around time for approval.

“PHirst Park Homes has been building premium communities while elevating the standards of first-home buyers at competitive price points. We are proud of this partnership with Security Bank, as it makes our homes more attainable to first-time home buyers through very flexible loan terms,” PHirst Park Homes President Ricky Celis was quoted as saying.

The affordable housing brand generally caters to families with monthly household income of between P40,000 to P100,000. — Vincent Mariel P. Galang

How PSEi member stocks performed — July 10, 2019

Here’s a quick glance at how PSEi stocks fared on Wednesday, July 10, 2019.

 

Ports beating revenue targets due to fuel marking program

THE Department of Finance (DoF) said the fuel marking program is producing higher revenue at certain ports of entry, thereby helping counter the expected increase in smuggling by parties seeking to evade higher excise taxes for fuel under the tax reform law.

“We anticipated the potential increase in smuggling and therefore initiated the fuel marking program under the TRAIN (Tax Reform for Acceleration and Inclusion) law. Fuel marking is designed to help address this issue. In fact, after the previous announcement that implementation of the Fuel Marking Program would start this quarter, we noted a steady increase in collections among the ports where petroleum products are regularly imported. This is a strong indicator of increased compliance,” Finance Secretary Carlos G. Dominguez III told reporters in a Viber message Wednesday.

The fuel marking program introduces a special dye into tax-paid fuel. The absence of the dye will be considered prima facie evidence that the fuel shipment is not compliant.

“A good example is the collections of the Port of Limay (Bataan) for June 2019, which was P3.6 billion above target. This is higher than the excess collection in May 2019 by P1.1 billion. The ports of Subic and Cagayan de Oro likewise exceeded their targets,” Mr. Dominguez added.

The Fuel Marking Program, which authorizes the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR) to collect fuel marking fees from petroleum products, is expected to add P5 billion to government revenue this year.

The BIR is in charge of collecting excise from domestically refined petroleum products, while the BoC will look after the proper taxation of imported fuel products.

The fuel marking provider, meanwhile, supplies the marker and associated equipment and carries out confirmation tests that a fuel shipment has been properly marked.

“The person, entity or taxpayer who owns or imports the product or to whom it is consigned, or whoever brings the same into the Philippines, or manufacturers and/or refines the same shall cause and accommodate the marking thereof with the official fuel marker,” according to a Joint Circular No. 001.20019 published on July 5. — Reicelene Joy N. Ignacio

Manila cleanup to boost city’s status as Southeast Asian ‘shopping paradise’ — DoT

THE Department of Tourism (DoT) said Wednesday that the street cleanup and crackdown on illegal vendors in the city of Manila, initiated by Mayor Francisco Moreno Domagoso, is expected to boost the city’s status as a “shopping paradise” for Southeast Asian visitors.

In an economic briefing at the Palace on Wednesday morning, DoT Assistant Secretary Roberto P. Alabado, who represented Secretary Bernadette Romulo-Puyat, noted that Manila has always been a premiere tourist destination.

“When tourists come here, immediately upon landing, they come to certain sites here in Manila. They go to Intramuros, they go to Luneta, Rizal Park, Binondo. Some even, especially Asians, go to Divisoria. These are areas where it’s simply a shopping paradise for some of our SEA (Southeast Asian) tourists,” he said.

He said the efforts of the newly-elected Manila Mayor “are very much appreciated” in making those areas “more accessible” to tourists because the Tourism department is aiming to provide visitors with “more diverse tourist offerings” in Manila.

“So just imagine if our tourists can walk around the streets of Manila and at the same time enjoy the food in Binondo, enjoy the shopping in Divisoria, in a more organized manner,” Mr. Alabado added.

As for the relocation of street vendors, Mr. Alabado said Ms. Puyat has ordered the Tourism department’s regional office in the National Capital Region to “work closely” with the Mayor’s office to “coordinate their efforts.”

“This is a local thing, the relocation of our street vendors, but as we have always said, the more tourists that we can provide access to Divisoria, to Binondo and Intramuros, the more economic activities that can be spurred from those local destinations,” he added.

“We will be having our coordination meetings with the Office of the Mayor of Manila and we will be updating you on this in the future,” he also said. — Arjay L. Balinbin

DoT touts parts of Mindanao considered safe for tourism

THE Department of Tourism (DoT) said Wednesday it is working to reverse the public perception of Mindanao as a place to be avoided, after President Rodrigo R. Duterte called his home island “lawless” and “violent” last month.

DoT Assistant Secretary Roberto P. Alabado told reporters in a chance interview at the Palace, after an economic briefing, that the DoT is “doubling” its efforts to tell Mindanao’s “real story” from people on the ground.

Efforts have been “doubled because we are working on a perception problem. That’s why we are here to show you what the real story is,” he said.

He added, “We are in a situation where we want to change perceptions by saying what is on the ground.”

Mr. Duterte, in one of his speeches at the Palace last month, said that incidents of “lawlessness” and “violence” in Mindanao have not stopped.

“That’s the problem of Mindanao. Far and wide in between the years, we had so many troubles. Lawless violence, it’s still there…. Mindanao really seems to be a dangerous place still to go around,” the President noted.

He added, “And that is why (we cannot tell tourists) that everything is all right there and you can go around and you will not be waylaid, delikado ang Mindanao (Mindanao is dangerous).”

Asked to reconcile the President’s remarks and the DoT’s efforts, Mr. Alabado said: “There are some safe places… There are places in Mindanao where the advisories are better… In terms of security, we will abide by the directives of the President (for the more dangerous areas).”

He added that the domestic tourism in Mindanao is “very good,” noting that in Davao City alone, hotels are “always fully-booked.”

“So that is a good indicator that business and tourists are going to Davao in Mindanao,” he noted.

“Pagdating sa pronouncements ni Presidente (when it comes to the President’s pronouncements), we always abide, he’s the President, we are just an agency helping him in the area of tourism,” he added. — Arjay L. Balinbin

Rails for MRT-3 rehabilitation arrive months ahead of schedule

THE government said it took delivery of new train parts for the rehabilitation of the Metro Rail Transit Line 3 (MRT-3) this week.

The Department of Transportation (DoTr) said in a statement Wednesday it received 4,053 new rails of 18-meter length from Japan Tuesday night, which will be used to replace older rails on the elevated commuter line, which runs along the capital’s main artery EDSA.

DoTr Undersecretary for Railways Timothy John R. Batan said the new rails are expected to reduce disruptions to MRT-3’s daily operations.

[Y]ung kasalukuyang degraded state ng ating mga riles ang nagiging dahilan kaya nagiging matagtag ang takbo ng MRT-3. (The degraded state of the rails are the reason behind the rough ride on MRT-3) At ’yang tagtag na ’yan ay isa sa pinakamalaking root causes kung bakit tayo nagkakaroon ng aberya (The rough ride is one of the biggest reasons behind many issues disrupting the MRT-3),” he said in the statement.

The rails arrived “two to three months ahead of schedule,” putting the rail rehabilitation on track for completion by July 2021, Transportation Secretary Arthur P. Tugade said.

“We are happy that the rails we procured arrived much earlier than scheduled… Ebidensya po ito na ang MRT-3 Rehabilitation Project… ay hindi drawing (This is evidence that the MRT-3 Rehabilitation Project…is not just a paper plan),” he was quoted as saying in the statement.

More parts are scheduled to arrive in October, and if the schedule is followed, the replacement of the tracks may begin by November during non-operating hours of the MRT-3. The replacement works are set for completion by February 2021.

The government turned over in May the rehabilitation and maintenance of the MRT-3 to Japanese partners Sumitomo Corp. and Mitsubishi Heavy Industries, Ltd. (Sumitomo-MHI), together with TES Philippines, Inc. (TESP).

The P16.985-billion rehabilitation is funded by an agreement signed last year between the governments of the Philippines and Japan.

Once works are completed, operational trains at the MRT-3 are expected to increase to 20 from the current 15, with speeds increasing to 60 kilometers per hour (kph) from the current 30 kph. — Denise A. Valdez