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Nickel Asia income slides 68% in 1st quarter

NICKEL ASIA Corp. (NAC) reported a 68% decrease in attributable net income for the first quarter, as the peso strengthened against the US dollar.

In a disclosure on Tuesday, the listed miner said earnings slid to P147.6 million during the January to March period, from the P456.7 million recorded during the same period last year.

At the same time, earnings before interest, tax, depreciation, and amortization (EBITDA) slipped by 11% to P613.8 million from P686.3 million, quarter-on-quarter

“The lower earnings during the first quarter was due primarily to the impact of a strengthening Peso relative to the US Dollar resulting to a net foreign exchange loss of P6.7 million, a turnaround from a gain of P344.0 million recognized last year,” Nickel Asia said.

The mining company reported a P25.3-million net loss from its equity investments in Coral Bay Nickel Corp. and Taganito HPAL Nickel Corp. (THPAL), against the P194.7 million earned during the same period last year.

NAC’s share of earnings from Coral Bay HPAL dropped 53% to P53 million in the first quarter, due to falling nickel and cobalt prices. The drop in prices also affected the THPAL plant, which likewise saw a P78.3-million loss. The plant also had to undergo a three-week maintenance shutdown last March.

NAC said it sold around 2.89 million wet metric tons (WMT) of nickel ore during the first quarter of the year, 6% lower than the 3.09 million WMT sold in the same period the previous year.

“Ore deliveries to the two processing plants, which increased from 2.0 million WMT in 2018 to 2.14 million WMT this year did not sufficiently offset the decline in ore export volumes, which fell to 749,000 WMT from 1.09 million WMT last year,” the company said.

NAC said it realized an average of $5.56 per pound of payable nickel on its shipments of ore to the two plants, 8% lower than the average of $6.02 per pound of payable nickel during the same period in 2018.

In terms of export sales, Nickel Asia said it realized an average price of $19.01 per WMT, 7% higher than the $17.82 per WMT in 2018.

On a combined basis, the average price for sales of ore exports and ore deliveries to the two plants stood at $10.63 per WMT, 10% lower than the $11.85 in 2018.

“Nickel ore shipments from Indonesia are expected to increase further for a third successive year and will continue to put pressure on ore export prices this year,” Martin Antonio G. Zamora, president of NickelAsia.

“On the other hand, the medium-term outlook for London Metal Exchange-linked nickel is likely to improve. We anticipate this segment of our market to account for 46% of total shipments for the year, much higher compared to 40% in 2018,” Mr. Zamora added. — VMPG

Filipino faith and artistry at the Museo de Intramuros

TOWARDS the end of Spanish colonial rule, architect Felix Roxas, Sr. designed the San Ignacio Church in Intramuros, Manila for the Jesuits. The structure was completed in 1899 but it, along with the other seven churches of the walled city, were devastated in the Battle of Manila at the close of World War II. When the smoke cleared, only the centuries old San Agustin Church still stood. San Ignacio was reduced to rubble.

It was in 1979 that the Intramuros Administration (IA) came with the idea of reconstructing San Ignacio Church and its attached Mission House of the Society of Jesus with the intention of turning it into a museum.

The idea remained on paper for decades until, finally, in 2011, a grant of P100 million between IA and the National Commission for Culture and the Arts (NCCA) was executed. The reconstruction of the church began in 2013 followed by the restoration of the mission house in 2016.

“It was originally a program of the Intramuros Administration to construct two museums” in the walled city, Museo de Intramuros curator Dino Carlo Santos told BusinessWorld during a visit to the museum on May 2. The first museum was Casa Manila across San Agustin Church, which features a reconstructed bahay na bato filled with the furniture, knick knacks, and equipment found in a rich person’s house at the later part of the Spanish colonial era.

“The National Museum undertook the archaeological excavations and then a team of architectural consultants helped reconstruct the whole structure,” he said of the San Ignacio complex.

WHAT’S INSIDE?
As part of the celebration of the Intramuros Administration’s 40th anniversary as an institution, the Museo de Intramuros officially opened to the public on May 2.

“What we want is for Intramuros to be a creative urban heritage district. More than the heritage structures, we want Intramuros to have a new relevance to the society in general,” Sheena Anjeli M. Botiwey, IA technical assistant to the administrator and sales and promotions supervisor, told BusinessWorld.

Curated by Dr. Esperanza Gatbonton, Gino Gonzales, Dr. Cecilia dela Paz, Santiago Pilar, and Martin Tinio, the museum’s exhibition “presents the story of the evangelization of the Philippines from the perspective of Filipinos,” the museum brochure says, with the aim to “highlight the resulting Filipino artistry and craftsmanship in the merging of the indigenous and the foreign…”

The three-story former mission house is the main museum and its exhibit has six components: The Immaculate Conception, The Religious Order, The Patronato Real and Establishment of Parishes on the first floor; The Establishment of a Parish and Sacred Vessels, The Indio Response, and Religious Colonial Paintings on the second floor; and an exhibition on the history and rebirth of Intramuros on the third floor.

Meanwhile, the restored church structure has been hosting changing exhibitions on contemporary art (the first was during the Manila Biennale in 2018 where it housed a work by the late Roberto Chabet called Onethingafteranother and Fr. Jason Dy’s Procesion de los Camareros). It is currently inaccessible since it is changing exhibits.

The ecclesiastical art, furniture, vestments, textiles, and other artifacts on view at the museum are part of the Intramuros Administration’s own collection which, according to Mr. Santos, were acquired by the institution from auctions and dealers of antiques.

“The significance (of the exhibit) lies in the collections themselves. The collection is actually a reflection of Filipino craftsmanship during the Spanish period. You don’t see them as expressions of colonial art, but as expressions of Filipino artistry,” IA administrator Guiller B. Asido told BusinessWorld in a phone interview.

FUTURE PLANS
Both Messrs. Asido and Santos noted that the current displays in the museum is made up of only 30% of the IA collection. Mr. Santos said that there are plans “to construct more galleries in order to accommodate more of the collection.” The museum will also be used for educational programs, workshops, and group tours.

In addition, the IA is working on the full ventilation of the place (the second floor is currently the only air-conditioned space) and installation of elevators for accessibility.

Admission to the museum is free for the first six months. After that, there will be a fee to raise funds for the structure’s maintenance.

As part of the efforts to promote arts and culture in the walled city, Mr. Asido looks forward to the completion of the Maestranza creative quarter — a 44 chambered, 270-meter section of the city walls on the Pasig River side. He described it as “the first creative hub within an urban heritage district.” It is targeted for completion in the first quarter of 2020.

Museo de Intramuros is located at Arzobispo St., Intramuros, Manila. It is open Tuesdays to Fridays (except holidays) from 9 a.m. to 5 p.m. For more information, visit, www.facebook.com/OfficialIntramurosAdministration/ — Michelle Anne P. Soliman

How PSEi member stocks performed — May 7, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, May 7, 2019.

 

DTI urged to check foreign compliance with capital rules

THE Philippine Retailers Association (PRA) has called on the Department of Trade and Industry (DTI) to look into whether foreign retailers are violating the rules on minimum investment levels to operate in the Philippines.

“I recommend that DTI review the registrations of all these Chinese, Korean, etc restaurants, groceries, tiangge stalls, etc. to check if there are violations,” Roberto S. Claudio, vice-chair of the business group, said in a mobile message on Monday.

Mr. Claudio said, however, that it may be difficult to get a clear picture of the situation as some use dummies or joint ventures to dodge Republic Act No. 8762, or the Retail Trade Liberalization Act of 2000, which requires foreigners seeking to fully own a retail business to have $2.5 million in minimum paid-up capital.

Under the law, full foreign ownership is only valid in the first two years while the maximum stake is capped at 60% thereafter. Meanwhile, a $7.5-million capital investment entitles the foreign party to retain full ownership indefinitely.

Trade Secretary Ramon M. Lopez said the DTI has regional offices to ensure that retailers are operating within the bounds of the law.

Nevertheless, Mr. Lopez said “the general policy is toward liberalization to encourage more investments and job creation for Filipinos.”

The DTI, along with other economic departments, proposed a $200,000 capitalization level to operate here, which is reflected in House Bill No. 9057, which has so far made it to second-reading approval.

Meanwhile, the counterpart measure at the Senate, Senate Bill 1639, which aims to eradicate all investment thresholds, is encountering opposition from small and medium-sized local retailers.

The PRA warned that the removal or the lowering of the minimum investment to the proposed level will further ease out domestic retailers.

Instead, the PRA proposes the encouragement of local-foreign joint ventures as a win-win situation to encourage more foreign investment at the same time protecting our Filipino entrepreneurs.

Meanwhile, DTI’s Mr. Lopez said he supports Senator Panfilo M. Lacson’s call to shut businesses that provide services exclusively to certain nationalities like the Chinese.

“Bawal ang (It is illegal to have) a Chinese-only policy in any store. Or catering to a specific nationality,” Mr. Lopez said in a mobile message to reporters on Tuesday, adding businesses should put up signage in various languages to adapt to their new customers. — Janina C. Lim

Law signed exempting first-time jobseekers from document fees

PRESIDENT Rodrigo R. Duterte has signed into a law a measure waiving fees and charges for government documents typically issued to first-time jobseekers, the Palace said.

Mr. Duterte signed on April 10 Republic Act No. 11261, also known as the “First Time Jobseekers Assistance Act.” Malacañang released copies of the law Tuesday.

The law directs all government agencies and instrumentalities, including government-owned and -controlled corporations (GOCCs), local government units (LGUs), and government hospitals not to collect fees or charges from a first-time jobseeker provided that such payments are in connection with the application for and the granting of documents or identification cards usually required in the course of local or overseas employment. This benefit can only be “availed of once.”

Documents covered by the law are the police clearance certificate, National Bureau of Investigation clearance, barangay clearance, medical certificates from a public hospital (with the exception of laboratory tests and other medical procedures), birth certificates, marriage certificates, transcripts of academic records issued by state colleges and universities, tax identification numbers, Unified Multi-Purpose ID cards, and other documentary requirements issued by the government that may be required by employers from applicants.

Section 6 of the law states: “The concerned government agencies shall maintain and update a roster of all individuals who have been issued documents under this Act. This roster shall be regularly submitted to the Department of Information and Communications Technology (DICT), which shall compile a database of all beneficiaries of this Act to be made accessible to all relevant agencies.”

First time jobseekers will be assisted by the Public Employment Service Office (PESO) in securing required pre-employment documents from various government agencies.

The labor secretary, in consultation with the DICT and other agencies, is tasked to issue within 60 days from the effectivity of the law the implementing rules and regulations (IRR).

In a statement, Senator Juan Edgardo M. Angara, who co-authored the law, said: “We express our sincerest gratitude to the President for signing into law this landmark legislation that would exempt an estimated 1.3 million first-time jobseekers annually from paying fees on government-issued documents that are inordinately expensive for people without regular jobs.”

“This is one classic example where the government prioritizes the welfare of its people over revenues. While the law would lead to millions of pesos in foregone government profits, it would provide financial relief to cash-strapped jobseekers,” he added. — Arjay L. Balinbin

Bangsamoro touted as major source of agricultural growth — DA

THE Department of Agriculture (DA) said it is expecting the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to be a major food producer for the Philippines in five years.

“The potential for food production is immense. In five years the Bangsamoro area will definitely be a major food producer for the country,” Agriculture Secretary Emmanuel F. Piñol said in a text message in response to a BusinessWorld query.

Recently, the department committed to help the region formulate a 10-year Agriculture Master plan to help the area’s agriculture and fisheries industries. The region is thought to be rich in these resources but suffers from high levels of poverty incidence, which the 10-year plan hopes to moderate.

He noted that there are about 100,000 hectares of land suitable for high-value crops like Cavendish banana, pineapple, cacao, abaca, and hybrid coconut. He also said that there are emerging rice farms in the region in the Liguasan Marsh along the Mindanao River basin and Lake Lanao in Lanao del Sur.

“The region could be the major source of cultured fish, not to mention freshwater fish from Liguasan Marsh and Lake Lanao. For rice, the region has the potential of producing at least 3 million metric tons of paddy rice every year,” he said.

For the master plan, the DA and the BARMM agriculture ministry will be conducting a multi-sectoral workshop after the elections to draft the plan.

Since becoming an autonomous region, BARMM agriculture has been held back by corruption.

According to BARMM Agriculture Minister Mohammad Yacob, “We have to leave that behind us and do it right this time,” he was quoted as saying in a social media post by Mr. Piñol earlier this week.

BARMM is composed of Lanao del Sur, Sulu, Maguindanao, Basilan, and Tawi-Tawi and the City of Cotabato.

According to the Philippine Statistics Authority, in the first half of 2018, the income gap, which measures the average income required by the poor to get out of poverty compared with the poverty threshold, was 32.9% in the first five provinces, up 0.8% from three years earlier. — Vincent Mariel P. Galang

National government debt rises to record P7.8 trillion at end of March

OUTSTANDING government debt rose to record levels in March following the issuance of retail Treasury bonds during that month and amid a weaker peso, the Bureau of the Treasury (BTr) said.

National government debt was at a record P7.802 trillion at the end of the first quarter, up 4.7% from February and 13.4% from the same period last year.

Year to date, government debt increased by P509.76 billion or 7% from the end of 2018.

Two-thirds of the debt stock at the end of March came from domestic sources — P5.197 trillion, up 6.1% from the previous month.

The Treasury attributed this to the net issuance of government securities in March worth P298.21 billion as well as the revaluation of domestic dollar bonds to P430 million after the peso weakened.

At the end of March, the peso depreciated to P52.629 against the dollar from P51.769 at the end of the previous month.

The government raised a net P235.935 billion from its latest offering of five-year RTBs following a two-week offer period running to March 8.

The retail bonds are targeted at institutional and individual investors, with a yearly interest rate of 6.25%.

Year-to-date, domestically-sourced debt rose by P419.96 billion or 8.8% from P4.777 trillion at the end of 2018.

On the other hand, funds raised from foreign sources accounted for P2.605 trillion of the total, up 2% from end-February’s level of P2.553 trillion.

The rise in overseas debt was mainly due to the impact of a peso fluctuation against the dollar worth P42.42 billion as well as foreign loan availments worth P11 billion during that month.

This however was tempered by the net depreciation of third-currency debt, carving out P1.36 billion.

So far this year, external debt increased by P89.79 billion or 3.6% from its end-December level of P2.516 trillion.

Meanwhile, guaranteed obligations stood at P479.67 billion in March, up 1.3% or P6.3 billion month-on-month.

“This was due to the net issuance of domestic guarantees amounting to P2.79 billion and currency fluctuations on both local and third currencies, which increase the peso value of external guarantees amounting to P4.73 billion and P0.42 billion, respectively,” the BTr said.

Net repayments on external guarantees amounted to P1.64 billion.

The government plans to borrow up to P1.189 trillion in 2019 to help finance its spending. Of this year’s total, P891.7 billion will be sourced domestically and P297.2 billion from overseas.

The Development Budget Coordination Committee adjusted the borrowing ratio in favor of domestic sources to 75-25 for 2019, from the previous year’s 65-35 ratio.

The government borrows from domestic and foreign sources to fund its budget deficit, which for this year is projected at 3.2% of gross domestic product. — Karl Angelo N. Vidal

Shell hydrogen plant in Batangas seen raising processing flexibility

PILIPINAS Shell Petroleum Corp. (PSPC) will build a hydrogen manufacturing facility within its Tabangao, Batangas oil refinery, allowing the company to produce more grades of crude and increase its output by early 2021, its top official said.

“We are basically installing a hydrogen manufacturing unit because the availability of more hydrogen will allow us to process more advantaged crude, more exotic crudes. So, yes we are installing a facility in the refinery,” PSPC President and Chief Executive Officer Cesar G. Romero said in a briefing Tuesday ahead of its annual stockholders meeting on the same day.

He said the Tabangao expansion will account for about P2 billion to P3 billion of the company’s P6-billion in capital expenditure this year. The retail business will corner about P2 billion, with the remainder going into to the rest of its supply chain.

In the past year, the company’s P4.1-billion budget was allocated mainly to the retail business, taking up P2 billion, with refinery enhancements cornering P1 billion, and the remaining P1 billion going into the rest of the supply chain.

“It’s not primarily intended to be a main capacity-increasing option, but it will yield some improvements in capacity as well. But the primary intention is to increase the crude flexibility because we really need hydrogen to process more sour crude,” he added.

Sour crude has a higher sulfur content and is more difficult to process compared to light sweet crude, which yields more final product per unit of input. Sources of sour crude include Saudi Arabia, Kuwait, Iraq, Venezuela and Canada.

Mr. Romero said the commissioning of the hydrogen facility is targeted for around the fourth quarter of 2020.

“So for planning purposes, we’re hoping we will be able to operate that in Q1 (first quarter) 2021,” he said.

PSPC distributes the refined products produced at the Tabangao refinery and imported petroleum products, including lubricants and bitumen, through its 25 fuel distribution terminals and supply points, 10 lubricant warehouses and 2 bitumen production and import facilities spread throughout the Philippines.

“Our refinery will start investing in its hydrogen optimization project that will allow it to improve flexibility of its crude intake and product slate,” Jose Jerome R. Pascual III, PSPC chief financial officer, said in the same briefing.

He said the company’s growth target of opening 50 to 70 new retail sites, 15 to 20 Select Shops, 15 to 20 deli2go offerings, and 30 to 50 Shell Helix oil change plus, and Helix service centers will remain the same.

At the end of 2018, Pilipinas Shell had 1,084 service stations, with around 44% company-owned and 56% dealer-owned.

The company has produced the country’s first-ever batch of domestically-blended bitumen, a road paving material also known as asphalt. Pilipinas Shell remains the only bitumen supplier in the country with local manufacturing capability.

“Before we had the bitumen facility, we already have roughly 40-50% of the domestic market for bitumen,” Mr. Pascual said. “The new bitumen facility is sized larger than the domestic market, which means that we can supply both the domestic market as well as export.”

In the fourth quarter, the company made its first export of finished bitumen within the region, to Vietnam.

“This gives us a lot of opportunity with the hydrogen optimization that we’re doing that will allow us to produce more residue for bitumen production as well as more diesel. It will enable the bitumen plant to produce the bitumen required both domestically and the market that we see in the region,” he said. — Victor V. Saulon

Results of probe into Cebu Pacific for flight cancellations due Friday

THE Department of Transportation (DoTr) said it hopes to receive a report by late this week detailing the findings of an investigation into Cebu Pacific, amid ongoing hearings by the Civil Aeronautics Board (CAB) on the carrier’s recent spate of flight cancellations.

Transportation Secretary Arthur P. Tugade told reporters Tuesday he has given the aviation regulator 10 days to submit a report on its ongoing hearings with Cebu Pacific operator Cebu Air, Inc., and from there will decide what to do moving forward.

“Sinabi ko 10 days. Magsa-submit sila ng report sakin. Ayaw kong pangunahan ’yung imbestigasyon… Ang gusto ko nga Biyernes mag-submit na sila [I said 10 days. They will submit a report to me. I don’t want to preempt the investigation. I actually want them to submit by Friday],” he told reporters in a chance interview Tuesday.

“Next week lalabas ’yung report. Doon sa report at resulta, ’yun ang magbabase kung anong gagawin natin [The report will be released next week. Based on the report and the result (of the investigation), we will decide what to do next],” Mr. Tugade added.

The CAB has conducted two formal hearings with Cebu Pacific since last week — on May 2 and May 6 — to investigate the airline’s decision to cancel flights starting late April.

Cebu Pacific has been canceling “approximately 10 flights a day” in May, and earlier canceled 23 flights from April 28 to 30, due to an “unprecedented level of disruption” to its operations.

It told the stock exchange last week the reduction in daily flights, particularly those using Ninoy Aquino International Airport (NAIA), is intended to “create space in its schedule for operational recovery.”

Last week, the CAB requested the Gokongwei-controlled carrier to submit a process analysis of its operations, which it was saying was the reason for its flight cancellations.

Asked for an update after Monday’s hearing, CAB Executive Director Carmelo L. Arcilla was not able to respond at deadline time.

Cebu Pacific also declined to comment pending the release of the CAB report.

Cebu Air shares lost P0.30 or 0.37% to close at P81.05 Tuesday. — Denise A. Valdez

China trade tensions could mean pain for emerging markets — Fitch

US President Donald J. Trump’s plan to increase tariffs on Chinese imports could lead to risk-off sentiment in emerging markets, according to Fitch Solutions.

Mr. Trump threatened to impose 25% tariffs instead of the current 10% on $200 billion worth of goods from China. Fitch Solutions noted that the possible cancellation by China of the trade discussions between the two countries may lead to strengthening of Mr. Trump’s resolve to pursue the tariff hike.

“Such a move could result in another round of tit-for-tat imposition of tariffs between the US and China and bring about another bout of risk-off sentiment which would hit emerging markets as happened in 2018,” Fitch said in its analysis.

A risk-off stance by investors means they will avoid risky assets, such as emerging-market securities, in favor of more reliable instruments.

Fitch sees four possible situations that may arise from the ongoing trade tensions.

It said the most positive scenario would be that the presence of China’s delegation in US to address concerns on technology transfer raised by US Trade Representative Robert Lighthizer, which could persuade Mr. Trump to relent on increasing tariffs.

Another positive scenario is that China’s delegation led by Vice Premier Liu He cancels the visit, giving the upper hand to less hawkish members of the US trade team, which, combined with the pressure of falling stock markets, could persuade Mr. Trump to not jeopardize talks with China.

A negative scenario is the cancellation of the discussions by China’s delegation likely leading the US to impose the 25% tariff. The most negative possible outcome is that US hawks would gain leverage and convince the rest of the government that China is acting in bad faith.

Asked how could this impact the Philippines, Fitch said in an e-mail, “Our view is that a slower pace of economic growth and money supply growth will ease domestic inflationary pressures.

The Philippine Statistics Authority (PSA) said that inflation slowed to a 16-month low of 3% in April, resulting in calls from economists to the Bangko Sentral ng Pilipinas (BSP) to loosen its monetary policy.

The BSP continuously reiterates its stance that it would take a data-driven decision, and would still look at other upside and downside risks as it comes with a policy move in its meeting on May 9. — Reicelene Joy N. Ignacio

Duterte signs energy efficiency, conservation measure into law

PRESIDENT Rodrigo R. Duterte signed into law last month an energy efficiency and conservation bill, officials said.

Republic Act No. 11285, which Mr. Duterte signed on April 12, will establish a framework for introducing and institutionalizing fundamental policies on energy efficiency and conservation, including the promotion of efficient and judicious utilization of energy, increased use of energy-efficiency and renewable-energy technologies, and the delineation of responsibilities among various government agencies and private entities.

The Palace released copies of the law to reporters Tuesday.

The Department of Energy (DoE), as the lead agency in the implementation of the RA, will be responsible for the planning, formulation, development, implementation, enforcement, and monitoring of energy management policies and other related energy efficiency and conservation plans and programs.

Under the law, all government agencies, including government-owned corporations, are directed to ensure the efficient use of energy in their respective offices, facilities, transportation units, and in the discharge of their functions.

The new law also creates an Inter-Agency Energy Efficiency and Conservation Committee (IAEECC), which will evaluate and approve government energy efficiency projects.

The committee will provide strategic direction in the implementation of the Government Energy Management Program (GEMP), which is intended to reduce the government’s monthly consumption of electricity and petroleum products through electricity efficiency and conservation, and efficiency and conservation in fuel use of government vehicles, among others.

The IAEECC will be composed of the Secretaries of the Departments of Energy; Budget and Management; Finance; Trade and Industry; Transportation; Science and Technology; Interior and Local Government; Public Works and Highways; and the Director-General of the National Economic and Development Authority. The Energy Secretary will chair the committee.

The law also authorizes the DoE, in consultation with stakeholders, to develop a Minimum Energy Performance (MEP) standard for the commercial, industrial, and transport sectors, and energy-consuming products including appliances, lighting, electrical equipment, and machinery, among others.

The DoE is also tasked to prescribe labeling rules for all energy-consuming products, devices, and equipment.

“No manufacturer, importer, distributor, and retailer shall sell, lease, or import any energy-consuming product, unless the product complies with the MEP and the product or its package is labeled in accordance with this Act,” the law reads.

The DoE will develop and enforce a mandatory energy efficiency rating and labeling system for energy-consuming products, such as air- conditioners, refrigeration units, and television sets, to promote energy-efficient appliances and raise public awareness on energy saving.

The law also calls for fuel economy performance labeling requirements for vehicle manufacturers, importers, and dealers.

Local government units (LGUs) are tasked to implement the Guidelines on Energy Conserving Design on Buildings for the construction of new buildings.

INCENTIVES
Energy-efficiency projects, which include improvements, repairs, alterations, or upgrades to any building or facility, or any equipment, fixture, or furnishing, “shall be included in the annual investment priorities plan of the Board of Investments (BoI) and shall be entitled to the incentives provided under Executive Order No. 226, of the ‘Omnbibus Investments Code of 1987’, as amended, and any other applicable laws for 10 years from the effectivity of this Act.”

The law also provides for establishments that implement or are implementing energy efficiency projects to be entitled to “awards and recognition for innovations…” and “provision of technical assistance from government agencies in the development and promotion of energy efficient technologies.”

The DoE, in consultation with other agencies, LGUs, the commercial, industrial, and transport sectors, and other stakeholders, will promulgate the Implementing Rules and Regulations within six months from the effectivity of the law. — Arjay L. Balinbin

Farmer-beneficiaries to be given a say in project procurement

THE Department of Agriculture said it plans to give farmer-beneficiaries a seat on the bids and awards committees of projects intended to benefit their communities to give them a say in the procurement process.

Addressing Undersecretary Roldan G. Gorgonio, Agriculture Secretary Emmanuel F. Piñol said: “I would like you to prepare an administrative order that will direct all bids and awards committees all over the country to include in the terms of reference the ‘end-users preference.’” in all such projects.

Mr. Piñol made the remarks during the launch of the Farmers and Fisherfolk’s Month on Monday in Quezon City.

“In the bids and awards committee… I will issue another administrative order directing that in the bids and awards committee in every procurement we have [an] observer galing sa grupo nung [from the group of the] intended beneficiary nung [of the] project para nakikita nila [so they can be aware of the project plans],” he added.

Mr. Piñol said that farmers will be more productive if their preferences are heeded in procurement as they are up to date on conditions in their farmlands.

“It is not right (just) to spend more, but a willingness to invest properly in equipment and goods will ensure productivity,” he said.

Directives in the past were only treated like advisories ad were not incorporated in the terms of reference in the procurement.

“The procurement programs of the government should be effective in the context of providing answers to the needs of the agencies that are conducting the procurement and the end-users,” he noted.

“Hindi kasi ordinary procurement ‘yung sa agriculture [The procurement in agriculture is not typical]. These are items that would spell the key difference between greater productivity and low productivity,” he said.

Asked for comment, Rolando T. Dy, head of agribusinesss studies center of University of Asia and the Pacific (UA&P), said that it would be better to have a group of experts per product group.

“From an agri(culture) expert Toto (Arsenio) Barcelona of PCAFI (Philippine Chamber of Agriculture and Food Inc.) (said) the best is still to have a competent technical group for each product group. Say small hand tractors for veggies, or separately for rice. Since our CTG (competent technical group) mechanization rate is still less than 2%, our farmers are not the party to decide. The CTG will evaluate top quality machines, and make a short list of high, medium, low price models that are useful to farmers,” he told BusinessWorld in a text message.

Marites M. Tiongco, associate professor and dean of the De la Salle University’s School of Economics, said a need for the farmers to be well represented.

“You need to random sample from small farmers not only associations… one representative is ok,” she told BusinessWorld in a text message. — Vincent Mariel P. Galang

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