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Barangay Ginebra celebrates 40 years of being ‘family,’ never-say-die spirit

By Michael Angelo S. Murillo
Senior Reporter

THIS year is a landmark one for the Barangay Ginebra San Miguel Kings as they celebrate 40 years of existence in the Philippine Basketball Association, which, they said, has been honed by the sense of being a family and, of course, of the Never-Say-Die (NSD) spirit.

In celebrations held at the Novotel Manila Araneta Center on May 9, Barangay Ginebra stars past and present joined company officials, partners and fans in looking back and celebrating the Gin Kings’ 40 wonderful years in Asia’s first play-for-pay league.

Ginebra San Miguel also took the event as an opportunity to unveil its commemorative 40th anniversary team jersey collection which the Gin Kings will wear in the PBA Commissioner’s Cup beginning later this month and will be available for fans to have for a limited time.

Present at the celebrations were PBA legend and recognized father of Ginebra’s NSD spirit Robert Jaworski, Jr., former Kings player and now-retired Jayjay Helterbrand, veteran Mark Caguioa, current star Scottie Thompson and champion import Justin Brownlee.

The stars took turns in sharing their experiences in playing for undeniably the PBA’s most popular team, which started playing in the league under Gilbey’s Gin.

In 1985, it is widely believed that the NSD spirit of Barangay Ginebra took form after Mr. Jaworksi in a game versus the Northern Consolidated Cement took a wayward elbow in the second quarter that required him to go to the hospitals to get stitched up.

To everyone’s surprise, the “Big J” returned in the third quarter with seven stitches on his lip and jolted his team from being 15 points down all the way to the victory.

From there the team’s identity of not giving up no matter the adversity was established and what endears it to its fans up to this point.

In his message at the 40th anniversary celebrations, Mr. Jaworski, who went on to become a senator of the republic after his PBA playing days were over, said Barangay Ginebra is rooted in being a family which, in turn, fosters its never-say-die identity.

“It’s the spirit of the family. In the different households we have roles to play and it’s the same with basketball. And for it to make it work you have to have team spirit. So if you would notice the team that works together makes it happen. Even if you have 10 superstars but don’t communicate nothing would happen,” said Mr. Jaworski, now 73 years old.

“That’s what we pride in Barangay Ginebra. We made them (players) understand that we have a direction we take and follow; and emphasis on ‘We.’ You cannot say I’m the star here. If that’s the case you go on your own and nothing will happen. Upholding team work, and again, never say never, never say die, those are what Ginebra is all about,” he added.

Since 1979, Barangay Ginebra has won 11 PBA titles, the last one the 2018 Commissioner’s Cup.

JERSEY COLLECTION
Meanwhile, available for fans to avail until June 30 this year are the limited-edition jersey collection.

For the first time in the history of Barangay Ginebra, the mantra ‘Never-Say-Die’ is featured on the team’s jersey.

On offer are the retired #7 jersey of Mr. Jaworski, Mr. Helterbrand’s #13, Mr. Caguioa’s #47, Mr. Thompson’s #6 and Mr. Brownlee’s #32.

To avail of the jersey, one just needs to buy Ginebra San Miguel products. Every six seals of Ginebra San Miguel or any five caps of GSM Blue, GSM Blue Flavors, Primera Light Brandy and Ginebra San Miguel Premium Gin, entitles customers to purchase one jersey for only P100 at various supermarkets and convenience stores nationwide.

San Miguel forces sudden death

By Michael Angelo S. Murillo
Senior Reporter

THE San Miguel Beermen staved off being outright dethroned as PBA Philippine Cup champions on Sunday after beating the Magnolia Hotshots Pambansang Manok, 98-86, in Game Six of their best-of-seven finals to force a sudden-death match.

Needing to win to stay alive in the series, the Beermen played with a lot of drive right from the start to notch the win and force a deciding Game Seven for the Philippine Basketball Association All-Filipino title on Wednesday also at the Smart Araneta Coliseum.

Chris Ross, June Mar Fajardo and Marcio Lassiter led the steady San Miguel attack on their way to levelling the series at 3-3.

The Beermen took control right from the get-go on the hot shooting of Mr. Ross from downtown.

They held a 25-12 lead at the end of the first canto and stretched it to a 21-point separation, 37-16 in the early goings of the second frame.

Magnolia tried to claw its way back behind big men Ian Sangalang and Rafi Reavis, coming to within 10 points a couple of times.

But San Miguel would hang tough, continuing to hold sway, 50-36, by the halftime break.

In the third quarter it was Magnolia’s turn to have it strong.

Led by guards Jio Jalalon and Paul Lee, the Hotshots hounded the Beermen to narrow the gap, 68-62, heading into the final quarter.

Jolted, the Beermen opened the final canto on firmer footing, speeding with a 14-1 run in the first three minutes to build a 19-point lead, 82-63.

Magnolia tried to regain some lost real estate after but Mr. Fajardo and Arwind Santos did not allow much slippage by the Beermen.

It was a 21-point lead by San Miguel, 90-69, with five minutes remaining in the game.

The Beermen continued to control the match, 98-80, with two minutes left and never looked back from there.

Mr. Fajardo led San Miguel with 23 points and 18 rebounds with Marcio Lassiter adding 20 points.

Mr. Ross had 17 points while Christian Standhardinger finished with 16 points.

For Magnolia it was Mr. Jalalon who top-scored with 17 points with Mr. Sangalang adding 14.

“We are very thankful to be able to level the series. I think key for us in this game was our defense, especially by our second unit. Hopefully we can continue it in the rubber match,” said San Miguel coach Leo Austria.

Raptors, Sixers shoot for Eastern Conference final berth today in Toronto

LOS ANGELES — A wildly unpredictable Eastern Conference semifinal series will conclude the only way that seems fitting today night when the Philadelphia 76ers visit the Toronto Raptors for a decisive Game 7.

Each team has taken turns being dominant or inept, depending on one’s perspective, with the latest twist coming in Game 6 Thursday when the 76ers completely controlled the game after being humiliated in Game 5 at Toronto.

The winner meets the Milwaukee Bucks in the Eastern Conference finals. If Game 7 experience means something, then the edge goes to the Raptors, whose players have a combined 21 games of experience in a Game 7 compared to nine combined games by 76ers’ players.

“It’s not unlike where we have been a couple of times already in this series,” Raptors coach Nick Nurse told reporters. “They are critical games. They are all critical. We’ve got to play with great physicality, great speed, connected on the defensive end. I think we have to play one of our best defensive games of the year and play with some gusto on offense.”

Sixers coach Brett Brown said a Game 7 provides a different experience. “They’re very unique,” he said. “They’re special, they’re a life-lesson opportunity.”

The first six games of the series have been won by the team with the higher field-goal shooting percentage. Game 1, thoroughly dominated by the Raptors, was the only one won by the team that had the inferior shooting percentage from 3-point range while still having the better overall field-goal percentage.

The Raptors have leaned heavily on Kawhi Leonard and the supporting cast has not always backed him up.

“We win the last game, that’s all that matters,” Leonard said. “We lost some games playing their way, so it doesn’t matter. I’m going to try to win.”

The shooting has varied widely from game to game. Toronto shot 40% (16-for-40) from 3-point range in Game 5 when Leonard received strong support from his teammates in a 125-89 win. Toronto shot 48.8% overall in that game, while the Sixers shot 25% (six-for-24) on 3-pointers and 41.8% overall.

In Game 6, however, the Raptors shot 25% (nine-for-36) from 3-point range with Leonard 0-for-four, Marc Gasol 0-for-three, Serge Ibaka 0-for-3 and Danny Green two-for-eight.

Meanwhile, the Sixers made 35.7% (10-for-28) of their 3-point attempts and had a 46.1% to 43.2% advantage in field-goal shooting.

“I feel like we messed up sometimes on transition and defense,” said Leonard, who had 29 points and 12 rebounds Thursday. “We didn’t knock down open shots early, you know, and they played well. They came with pace and knocked down their open shots early on, and we tried to dig ourselves out of the hole.”

With enigmatic Joel Embiid battling illness and inconsistency and Ben Simmons not producing until Game 6, Jimmy Butler has been the main force for the Sixers.

Butler led the Sixers with 25 points, eight assists, six rebounds and two steals on Thursday.

Simmons had 21 points, eight rebounds and six assists and committed no turnovers on Thursday.

Embiid also was a big factor in Game 6 after playing so poorly in the previous game. He had 17 points and 12 rebounds with two blocked shots and was a presence beyond those numbers.

“He’s got an incredible defensive impact on a game,” Brown said. “Pick ‘em, Kawhi, Kyle Lowry, whatever — if you see (Embiid) you’re probably going to think a little bit more about what you want to do, what’s your plan?

“His importance to our team is obvious. (Thursday) you saw a healthier Joel Embiid and for that example, situation, him and his health, he comes out and has a plus-40. It’s a huge number. It’s a huge plus-minus number in a playoff game. His significance is felt all over the place.” — Reuters

Feisty Nuggets-Trail Blazers series down to decisive finale

LOS ANGELES — Paul Millsap is the sage veteran among the youthful Denver Nuggets, but even he had to admit he was sick of seeing the Portland Trail Blazers.

And that was after five games of this seven-game Western Conference semifinal series that is tied at 3-3. The sentiment hasn’t changed heading into Sunday’s Game 7 in Denver.

The winner will advance to the conference finals to play the two-time reigning champion Golden State Warriors. Game 1 of that series will be Tuesday night in Oakland, Calif.

The fatigue of Denver and Portland playing each other 10 times in the regular season and playoffs came to a head in the Trail Blazers’ 119-108 win on Thursday. Things got chippy midway through the fourth quarter when Portland center Zach Collins fell at the feet of Nuggets guard Will Barton.

Blazers guard Seth Curry pushed Barton away from Collins and Barton responded by putting a finger in Curry’s face. — Reuters

Lakers pick Vogel as head coach

LOS ANGELES — The Los Angeles Lakers have agreed to a deal with Frank Vogel to become their next head coach, ESPN reported Saturday.

Vogel will have a three-year contract, and his staff will feature Jason Kidd in a prominent role as an assistant, according to ESPN.

The Lakers were forced to reset their coaching search after Tyronn Lue turned down the opportunity to be Luke Walton’s replacement. Lue reportedly had the chance to run the team but considered the Lakers’ three-year, $18 million offer a snub after discussing a five-year contract.

Vogel, 45, was head coach of the Indiana Pacers from 2010-16. He also coached the Orlando Magic from 2016-18, and has a career record of 304-291. The Pacers made five playoff appearances during his tenure.

Vogel reportedly made a strong impression during a meeting with Lakers general manager Rob Pelinka on Thursday and was on the short list to replace Derek Fisher in Los Angeles in 2016 before the job went to Walton. — Reuters

Canada-based firm Trak Outdoors lauds Filipino workmanship, pushes for paddlesports growth

HAVING established itself as home to quality workmanship, among other things, many global brands have decided to have their manufacturing and production site here in the Philippines.

One such company is Canada-based Trak Outdoors, which in seven years since putting up its factory in Mariveles, Bataan, has been enjoying the “delightful” experience that goes with working with Filipino workers and credits it as a big part to what it has become as a brand up to this point.

Maker of various outdoor products, in particular portable performance kayaks, Trak was established in 2006 and is headquartered in Airdrie, Alberta, Canada.

In 2012 it relocated its manufacturing and production in a world-class outdoor gear facility in Mariveles. It was a move that has been complementing well its thrust since, the company said.

“My experience working here and working with Filipino workers have been delightful. And it is mostly because of the people, the Philippine culture, the spirit of bayanihan (civic unity and cooperation) which is like being selfless and the concept of teamwork,” said Nolin Veillard, Trak managing director and founder, when asked by BusinessWorld for his thoughts on setting up shop in the Philippines in the launch recently of the “2.0” version of their innovative kayaks in Corregidor Island.

“That’s our experience in the factory. People are very helpful and they have helped lift Trak and helped us develop the boats to the point that we have. It’s interesting that most people in the Philippines do not realize that you have a top-notch outdoor gear factory in Mariveles in Bataan and there are all this top outdoor brands in the world that get their manufacturing done here. Good people, good workers, good environment and it is enjoyable to work with them. They are smart and their commitment to detail and quality is high which is very important for the kind of products that we make. The ability to speak English, too, is a big help as we get to establish a good relationship with them,” added Mr. Veillard, whose company he said counts 40 to 50 Filipinos directly involved in product development. Trak is known for portable performance kayaks that can fit in a golf bag sized carrying case and can be taken anywhere.

The 2.0 version of the kayaks, which is a lighter and shorter iteration and makes use of carbon fiber ribs that make the kayak stiff for better performance in the water, was recently launched in the country, something Trak hopes would enhance the good reception the new version has been getting globally.

As per numbers shared by Trak, the 2.0 version, which was introduced via Kickstarter and Indiegogo, raised “more than $1 million in pre-sales during late 2017 and early 2018” and have been increasing still.

Mr. Veillard also shared that they as a company are pushing for the further growth of paddlesports, especially in countries with environs like the Philippines where kayaking fits well.

Last year Trak began offering kayak tours and experiences, with help from Kayak Philippines, to give people a chance to dip their hands in the sport.

“The core thing about kayaking is people being comfortable in the water. So training is important for the sport to grow. We work with Kayak Philippines in building interest and the community for paddling,” Mr. Veillard said.

Trak organized one-week kayak trips to Palawan in April and early this month which attracted a good number of participants.

Mr. Veillard went on to say that they, too, are open to helping the country’s kayak and canoe federation if ever asked, seeing it as another platform to help paddlesports grow.

“We are very much behind partnerships. We like to form partnerships if there is something that makes sense for us to grow the sport. We are open to that,” the Trak official said. — Michael Angelo S. Murillo

Go For Gold shines in prestigious four-day Vietnam cycling Tour

THE Go For Gold Developmental Cycling Team got tested in a series of punishing mountainous terrains and gallantly passed the grade in a challenging four-day bikathon in Vietnam.

Ismael Grospe Jr. was named King of the Mountain in the prestigious Dien Bien Phu 2019 international race while fellow Go For Gold riders Daniel Ven Carino and Ean Cajucom nearly hit the target in the sprint classification.

Jericho Jay Lucero then put the finishing touches to an impressive campaign against an elite field of riders by placing second in the torturous final stage behind Vietnamese climber Huynh Thanh Tung.

After making it to the top 10 of the general classification, the 20-year-old Grospe also duplicated his feat as Ronda Pilipinas best young rider by winning the same award in Vietnam.

Marc Ryan Lago, another promising cyclist who also rides for the national team, checked in third overall in the best young rider race followed by Lucero at fourth and Cajucom at seventh, their combined efforts with Grospe helping the team finish fifth overall out of 12 teams.

Bicol joins MPBL

When was the last time you’ve seen Bicol participating in the regional basketball scene?

You may only see them participating in regional meets such as Palarong Pambansa or Batang Pinoy, but the Bicolanos will have their first ever team competing in a semi-professional basketball league that is the Maharlika Pilipinas Basketball League.

To be known as the Volcanoes, they will carry the entire province on their shoulders when they compete in the fastest growing regional amateur basketball league which opens on June 12.

Part of the concession requested by Bicol is to have 10 home games during the season.

Tough as it may seem considering the travel time and the logistics to be made, league founder and chief executive officer Senator Manny Pacquiao and commissioner Kenneth Duremdes believe it’s doable.

“They just need to provide the bus for the long travel as well as the hotel accommodation for the delegation,” said Duremdes.

The Bicol Volcanoes will be coached by Monel Kallos, a mentor who spent the previous years coaching in Thailand. Last season, he returned to assist his younger brother, John Kallos in Caloocan, before the former assumed the head coaching position for the Parañaque Patriots.

This season, Kallos returned home to his native province and there, he got the full backing of the entire Bicol headed by governor Al Francis Bichara. He was delegated to put up a competitive team and he started it by naming Ronjay Buenafe, an ex-pro with a championship experience, to spearhead the team.

Buenafe will be reunited with his long-time coach, Nomar Isla, who is now playing the role as team manager.

Aside from Buenafe, other key players of the team include Jon Aldave and fellow ex-pro Alex Nuyles.

Bicol will have two venues to be used for the coming MPBL season — the Ibalong Center and the Albay Astrodome, both venued had been used by the PBA in their provincial matches.

The entire Bicolandia is excited and they want nothing more than an explosion for their very own Bicol Volcanoes.

 

Rey Joble is a member of the PBA Press Corps and Philippine Sportswriters Association (PSA). He is the media bureau of MPBL

reyjoble09@gmail.com

Winning culture

Not a few quarters pegged the Warriors to be goners the moment Kevin Durant was confirmed to have been injured and unable to return in Game Five of their semifinal-round series against the Rockets. Already with a history of calf strains, the former league Most Valuable Player appeared to have suffered from one anew shortly after he scored on a jumper with 2:11 left to play in the third quarter. He clutched his right leg as he was running back on defense, compelling him to leave the court — and, evidently, for good after he was examined and ruled ineligible to return. They were then just up by three points and legitimately wondering how they could cope without their most indispensable performer.

The fallback was, to be sure, clear to all and sundry. The Warriors would revert to their pre-Durant sets, through which a title in two trips to the Finals proved they were no slouches. Still, those from the outside looking in raised queries on how they could take the measure of the formidable Rockets in his absence when they barely kept pace with him around. Of course, hoops isn’t all theory, and practice often yields spectacular results, precisely the reason matches are played with passion. And, with cause, they believed the burden of proof wasn’t theirs, but the Rockets,’ to carry.

As things turned out, the Warriors claimed Game Five, and then Game Six on the road, in the clutch. In both cases, the usual suspects stepped up; Steph Curry, Klay Thompson, Draymond Green, and Andre Iguodala were simply outstanding. Meanwhile, the Rockets had ample opportunities to pounce, but, under pressure, somehow failed to live up to promise; James Harden and Chris Paul were up to the task, but, unlike their fellow marquee names, did not have an achieving supporting cast to backstop their efforts. As general manager Daryl Morey tweeted in the aftermath, “You come at the king, you best not miss.” And they did. A lot.

Considering how the best-of-seven affair ended, it’s with no small irony that the Warriors got help from a supposedly thin bench, and that the Rockets got little to none from a deeper one. Intangibles certainly count. Every single charge Steve Kerr tapped wound up exceeding prognoses, perhaps buoyed by the confidence shown by the stars. Mike D’Antoni was not as lucky, and it’s fair to wonder if his notoriously short rotations factored in on the outcome; heralded midseason acquisition Kenneth Faried, for instance, played all of five minutes in the entire series.

“F– ing giants” was how Kerr described the Warriors after they prevailed in Game Five, and he’s right. They may have had a tumultuous regular season beset with injuries and infighting, but they also have a winning culture that trumps their travails. It was what they leaned on in overcoming the loss of DeMarcus Cousins, and then Durant. No doubt, they wanted to show up the Rockets in the worst way possible, but, really, they didn’t need extra motivation other than that of their desire to be, well, themselves. It’s why they’re on track for a three-peat, and why, for all the challenges ahead, they understand that only they can truly derail their date with fate.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Foreign direct investments climb in February

FOREIGN DIRECT investments (FDI) climbed in February on investor optimism over the country’s growth prospects and fundamentals, the Bangko Sentral ng Pilipinas (BSP) reported on Friday.

FDI net inflows rose 20.2% to $746 million in February from $621 million in the same month last year, central bank data showed. February’s climb snapped six straight months of decline in FDI net inflows.

“Investment inflows continued as investors remain confident in the Philippine economy on the back of strong economic growth prospects and sound macroeconomic fundamentals,” the BSP said.

Net equity capital investments, which comprised bulk of the inflows, grew 141.7% to a $233-million inflow in February from $96 million the previous year. The BSP said the increase was due to the 126.3% climb in equity capital placements to $258 million mainly from Japan, China, United States, Singapore, and Switzerland. Withdrawals meanwhile totalled $76 million for the month.

The BSP said equity investments in February mostly went to transportation and storage; financial and insurance; manufacturing; real estate; and professional, scientific and technical industries.

Meanwhile, foreign companies chose to reinvest $79 million of their local earnings in February, 10.1% higher than the previous year’s $69 million and marking the biggest such amount logged since September.

Foreign firms’ loans to their Philippine units meanwhile dropped 4.5% to $435 million in February from $455 million in the same month last year.

For the first two months, however, net inflows stood at $1.355 billion, still lower by 15.7% from $1.607 billion in the same period in 2018 following the sharp decline seen in inflows in January.

The BSP attributed the year-to-date decline to lower net equity capital investments, which declined 67.1% to $188 million in January-February from $569 million in the same period a year ago. This, as placements dropped 31.5% year-on-year to $442 million in the first two months, while withdrawals grew by 236.5% to $255 million.

Equity capital placements during the two-month period came mostly from Japan, China, South Korea, Mauritius, and the United States, the BSP said, and were mainly invested in financial and insurance; transportation and storage; real estate; administrative and support service; and manufacturing industries.

Meanwhile, net placements in debt instruments, which represent capital infusions from parent foreign firms to their subsidiaries in the Philippines, increased 12.9% to $1 billion in the first two months from $896 million the prior year.

Reinvestment of earnings also grew 10.1% to $155 million during the period.

Sought for comment, Security Bank Corp. Chief Economist Robert Dan J. Roces said higher FDI will be seen in the coming months due to S&P Global Ratings’ recent upgrade of the country’s long-term credit rating to “BBB+” from “BBB,” or just a step away from an “A” level grade.

“Investors continue to view the Philippines as a favorable investment destination with the FDI growth. Higher foreign investments dictate market direction so momentum must be sustained,” Mr. Roces said.

“Main hindrances to even higher FDIs include a restrictive investment environment and thus reforms must be able to produce an environment that’s encouraging to foreign investors. Among these are better transportation infrastructure and logistics capability,” Mr. Roces added.

Mr. Roces said that FDI comes in the way of manufacturing and therefore would help in addressing the trade gap.

Michael L. Ricafort, economist at Rizal Commercial Banking Corp. said easing inflation and improved ties with other countries may have boosted FDI net inflows in February.

“The sharp decline in both inflation and in most interest rate benchmarks from among decade-highs in October 2018 may have encouraged more foreign and local investors to increase borrowings/loans in able to finance the establishment of production facilities, leading to more and faster FDIs from these countries,” Mr. Ricafort said in a text message.

“Improved diplomatic ties with Japan, China and the US may have resulted to more FDIs from these countries,” Mr. Ricafort added.

Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc., said: “With the 5.6% Q1 GDP (gross domestic product) result, it is what it is. In the long run, with fiscal reforms waiting to be legislated, FDI inflows is expected to rise further.”

FDIs are a source of capital for the Philippine economy, spurring domestic activity by funding business expansion and generating more jobs.

From a record high of $10.256 billion in 2017, FDIs dropped 4.4% to settle at $9.802 billion last year. Foreign business groups attributed the paler investor appetite to jitters over higher commodity prices, the proposed changes to tax incentives and the global trade tensions.

The BSP sees foreign direct investments reaching $10.2 billion this year. — R.J.N. Ignacio

Philippines raises $842 million from euro bonds sale

MANILA — The Philippine government raised 750 million euros ($842.33 million) in eight-year euro-denominated bonds in an offering that was six times oversubscribed, a senior finance official said on Friday.

The euro bonds issue, which was the country’s first in 13 years, had a coupon of 0.875 percent and offers 70 bps over benchmark, National Treasurer Rosalia De Leon said.

The offer attracted strong demand even after the Philippines, one of Asia’s most active sovereign bond issuers, posted a weaker-than-expected growth in the first quarter, Ms. De Leon said.

Weak exports and farm output and a delay in the approval of this year’s budget slowed the Philippine economy’s annual growth to 5.6% in the March quarter, much weaker than the economists’ 6.1% forecast and the previous quarter’s 6.3 percent.

The government raised more than the original target of 500 million euros after orders reached almost 3 billion euros, Ms. De Leon added.

Manila is diversifying its funding sources, she said.

It is also in the process of arranging its second offering of Panda bonds in China’s domestic market and is keen to issue more yen-denominated “samurai” bonds.

Books for its planned 2.5 billion yuan ($367.04 million) issue of three-year Panda bonds are due to open next week, according to capital markets publication Refinitiv IFR.

The Philippines is raising funds to help finance its 3.7 trillion pesos ($70.92 billion) budget this year.

Credit rating agency Standard & Poor’s raised its long-term sovereign credit rating on the Philippines to BBB+ from BBB last month to reflect the country’s strong economic growth trajectory. — Reuters

ERC prepares legal strategies after SC ruling on power supply deals

By Victor V. Saulon, Sub-editor

The Energy Regulatory Commission (ERC) is preparing “legal strategies” in response to the Supreme Court decision requiring all power supply agreements (PSAs) forged after June 30, 2015 to undergo a competitive selection process (CSP) to arrive at the least-cost power for consumers, its chairman said.

ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said her office would go back to the high court and present the “big picture translated into statistics.” She said the commission was ready to present the possible implication of its decision in hopes of opening the justices’ mind.

“We have had decisions before by the Supreme Court that really affected many people or many institutions and then on MR (motion for reconsideration) or on clarification, when the parties fleshed out in details with statistics, documents, the Supreme Court opened its minds,” she told reporters in a briefing on Friday at the agency’s head office.

“I cannot believe that the Supreme Court would go for something that’s disastrous,” she added.

She said the ERC had yet to receive a copy of the decision and was basing its statement on the press release issued by the High Court’s public information unit.

The case stemmed from an announcement made by Manila Electric Co. (Meralco) in May 2016 that it had sought regulatory approval for seven PSAs, covering 3,551 megawatts (MW) to meet the expected increase in power demand and number of customers. The company also said the contracts were in preparation for the impending expiry of existing PSAs from 2019 to 2020.

The contracts were forged on April 29, 2016 or just before the April 30, 2016 deadline set by the ERC. After that date, contracting parties are required to first undergo a CSP before forging a PSA.

CSP requires contracts between power generation companies and distribution utilities to be subjected to price challengers, a process that is aimed at lowering electricity cost.

The ERC promulgated CSP in November 2015 but had to restate its effective date until April 30, 2016 through a resolution in March 2016. It said the move was prompted by letter-inquiries from distribution utilities and generation companies assailing the legal implication of the CSP to existing power supply deals.

A group called Alyansa para sa Bagong Pilipinas on Nov. 10, 2016 raised the issue before the Supreme Court, leading to the latter’s issuance on May 6, 2019. The court has yet to release the complete document containing its decision.

‘MASSIVE’ IMPLICATIONS
ERC Commissioner Catherine P. Maceda described the implication of the SC decision to be “massive both in a positive and a negative way.” On the positive side, the decision called for greater transparency, she said.

“In a negative way, because it will affect supply and considering the problems that we have now as manifested by the outages this summer season, you can just imagine kung ang sasabihin (if they say), stop all those that are already supplying that are affected by the decision of the Supreme Court,” she said.

The ERC officials that what they know so far is that the court decision meant all PSAs filed on or after June 30, 2015 need to go through CSP. The ruling also meant that all cost recovery would retroact to the effectivity of the new contract but in no case earlier than June 30, 2015.

“What if the results of the CSP will be that they will not be the winning bidder,” she said, referring to generation companies that delivered power under a certain set of terms and based on an agreed rate.

Ms. Maceda said this early, and even before the ERC gets hold of the actual decision, the agency was already anticipating the “worst-case scenario,” so that Ms. Devanadara, a former Justice secretary, could prepare the legal strategies while reviewing the technical aspects of the affected PSAs.

Ms. Devanadera said the court decision will not only concern officers of Meralco and electric cooperatives, or their contracts, but the number of people that they serve.

“It will affect many millions of people,” she said. “This will really be a real, acute shortage in [power] supply,” she said.

“I still believe that we will be able to present statistics and clarification of the situation, and the Supreme Court, as I’ve said, they have shown that they are not after bringing in disasters,” she added.

“They mean well,” she said. “Duty namin ipakita ano ‘yung magiging implication (Our duty is to show what will be the implication).”

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