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Construction delays hit GenSan solar power plant

HARBOR STAR Shipping Services, Inc. on Tuesday said the commissioning of a subsidiary’s solar power plant project in General Santos City has been pushed back to next month, due to construction delays.
In a disclosure to the stock exchange on Tuesday, Harbor Star said the commissioning of Astronergy Development Gensan, Inc.’s (ADGI) project was originally scheduled for Jan. 31, and has now been moved to before March 31.
“The causes of delay were: (a) construction delays of support structures by the Engineering Procurement and Construction (EPC) Contractor and its subcontractors; and (b) delay in the delivery of equipment and accessories needed for the substation to connect to the grid,” the company said.
Harbor Star said delays in the construction due to the fault of the EPC contractor will be subject to penalties, under the contract.
“All the equipment and accessories are now in or en route to the project site,” the company said.
In 2017, Harbor Star’s wholly owned subsidiary Harbor Star Energy Corp. (HSEC) acquired a 60% stake in ADGI, which expanded to 100% stake last year. ADGI is licensed to operate a 25 megawatt (MW) solar power plant in General Santos City, which is expandable to 75 MW.
In the same disclosure, the tugboat and cargo vessel firm said its three-year exclusivity contract with Palau-based firm Palau Sea and Air Transport Agency (PSATA) is on hold per advice of the company.
“(PSATA) informed (Harbor Star’s) Management that there would be a delay in the implementation of the projects in Micronesia for various reasons. Thus, (Harbor Star) committed its tug and barge tandems for the Cebu-Cordoba Link Expressway (CCLEx),” it said.
“(PSATA) continues to request (Harbor Star) for barges but (Harbor Star’s) Management decided to allocate its resources to the more profitable CCLEx and Cavite Gateway projects,” it added.
Last year, Harbor Star signed a P118-million contract with Cebu Link Joint Venture (CLJV) to provide two specialized barges for the construction of Metro Pacific Tollways Corp. (MPTC)’s CCLEx project.
It is also a barge operator at the Cavite Gateway Terminal, a project of International Container Terminal Services, Inc. (ICTSI) operated by subsidiary Cavite Gateway Terminal, Inc.
Harbor Star reported flat attributable net income at P66.26 million during January to September 2018, from P65.73 million the previous year. — Denise A. Valdez

Expanded card use to push growth in digital transactions

By Melissa Luz T. Lopez, Senior Reporter
THERE IS huge scope to raise digital transactions in the country by pushing more Filipinos to use their bank cards beyond cash withdrawals, payments provider Visa said.
Newly appointed Visa Country Manager Dan Wolbert said prodding consumers to use their debit cards beyond just withdrawals from automated teller machines (ATMs) towards over-the-counter and even e-commerce payments would drive increased activity in the online space.
“Debit is very popular — there are more debit cards in the market, but a lot of those are being used for ATMs. There’s an opportunity to try shifting a lot of that purchasing power to more point-of-sale,” Mr. Wolbert said during a roundtable discussion with reporters yesterday.
Credit cards are also popular in the local scene and generate higher spending compared to debit cards, he added.
Mr. Wolbert pointed out that there is “tremendous” potential for the global payments firm to expand their business in the Philippines, given an industry push towards more digital transactions led by the Bangko Sentral ng Pilipinas (BSP).
Under the National Retail Payment System, the central bank targets to shift cash-heavy transactions to digital avenues — which, in turn, should help broaden access to financial services and spur increased economic activity.
The BSP is looking to lift the share of digital payments to 20% of total transactions from a measly 1% recorded in 2013, with the country still cash-reliant at present.
“That’s where a lot of the growth will be coming from. You can imagine moving from one percent of total transactions… If the central bank will be able to achieve 20% over time, that’s where the growth is,” Mr. Wolbert added.
“I think the important thing is we know it’s going in the right direction. Universally, whatever you think that number should be, we all agree that number is just too low where it is currently.”
The Philippines remains cash-heavy to date, and lags behind other Southeast Asian peers in terms of e-payment activities. Digital transactions in Singapore and Malaysia average as much as 60% of total payments, while many other economies in the region also enjoy a double-digit share to overall settlements.
Mr. Wolbert, who heads Visa’s operations in the Philippines and Guam, added that more digital products and services coupled with financial education are needed to help e-payments gain more traction.
“Behavioral changes” can also be done through e-commerce, with a good number online shoppers move away from cash on delivery payment options.

Absorbing Vincent: Van Gogh goes immersive in Paris exhibition

PARIS — A Paris gallery is offering visitors the chance to immerse themselves in the colorscapes of Vincent Van Gogh like never before.
L’Atelier des Lumieres is projecting digitized, multilayered versions of some of the artist’s most famous works, including Starry Night Over the Rhone and Churchyard in the Rain, onto its floor and walls
Conveying at different stages the illusion of water rippling in the light and raindrops falling, the show is accompanied by a rich soundtrack.
“Obviously, we have The Starry Night, we have the sunflowers, we have the irises,” gallery director Michael Couzigou told Reuters TV.
“The idea here is to propose something that’s different from classic museums. It’s to allow the visitors to really get inside the paintings.”
Van Gogh, La Nuit Etoilée, which opens on Friday and runs until Dec. 31, is the gallery’s second immersive art project, following a Gustav Klimt show in 2018. — Reuters

GERI rolls out 2nd tower of Tulip Gardens

GLOBAL-ESTATE Resorts, Inc. (GERI) is rolling out the second tower of its residential condominium Tulip Gardens at its Laguna township, which is expected to generate P1.3 billion in sales.
The leisure and tourism property unit of Megaworld Corp. said the 22-storey Burgundy Tower will offer 361 residential units sized up to 24.5 square meters (sq.m.) for studio, and up to 41.5 sq.m for one-bedroom with balcony.
The Burgundy Tower will feature amenities such as jogging paths, adult and kiddie pools, pool deck and cabanas, a fitness center, indoor playroom and outdoor playground, as well as a multipurpose hall for functions and gatherings.
GERI expects to complete the tower by 2024.
Tulip Gardens is located within Megaworld’s 561-hectare mixed-use estate called Southwoods City covering the boundaries of Cavite and Laguna. GERI said the residential project is within walking distance of Southwoods Mall, its 58,000-square meter mall that opened in 2017, as well as the Sto. Niño de Cebu Parish.
The launch of the Burgundy tower follows the strong take-up seen in Tulip Gardens’ first tower in July 2018. Before Tulip Gardens, the company introduced its first residential project called Holland Park in 2015.
The company noted all four towers of Holland Park, comprised of 622 units worth P2.7 billion, were sold out.
“The interest of buyers in Southwoods City is overwhelming, and this has been the trend since we introduced our first residential development, the Holland Park, three years ago,” Megaworld Global-Estate, Inc. Vice-President for Sales and Marketing Mary Rachelle I. Peñaflorida said in a statement.
GERI attributed the demand for properties in Southwoods City to its proximity to business districts in Metro Manila, noting that it is 30 minutes away from the Makati Central Business District and Fort Bonifacio. It is also 10 minutes away from the business district of Alabang.
The company’s net income rose by 14% to P1.29 billion in the first nine months of 2018, following a seven percent uptick in consolidated revenues to P5.25 billion.
Shares in GERI jumped 1.57% or two centavos to close at P1.29 each at the stock exchange on Tuesday. — Arra B. Francia

How PSEi member stocks performed — February 26, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, February 26, 2019.

 
Philippine Stock Exchange’s most active stocks by value turnover — February 26, 2019.

Are the years of low infrastructure spending over?

Are the years of low infrastructure spending over?

DA signals willingness to protect poultry industry from import surge

AGRICULTURE Secretary Emmanuel F. Piñol said that the Department of Agriculture (DA) is looking at the possibility of removing the minimum access volume (MAV) on chicken as a preliminary step in imposing special safeguards (SSGs) to protect domestic producers.
“UBRA [the United Broiler Raisers Association] has suggested [the removal of the MAV] which we are looking into right now,” Mr. Piñol said in an interview with DZMM.
He said the proposal for concrete action was more “welcome” than some of the criticism the DA has come in for as local producers find themselves pressured by weak prices due to competition from imports of pork and chicken.
“There was a marked increase in the importation of pork and chicken, but these are problems actually that we can address if we sit down together and discuss the solutions rather than label us as the Department of Importation,” Mr. Piñol said in the radio interview.
The Samahang Industriya ng Agrikultura (SINAG) led by Chairman Rosendo O. So called the DA the Department of Importation in the course of lobbying for a total meat import ban from Europe, which he said will minimize the chances of African Swine Fever (ASF) reaching the Philippines.
In letters to Senator Grace S. Poe-Llamanzares and Senator Cynthia A. Villar dated Feb. 26, SINAG requested a public hearing to tackle ASF and falling hog prices.
“The ASF outbreak has reached Vietnam, making the Philippines more susceptible to the ASF pandemic and yet the quarantine and border control measures at our airports and seaports and other contingency preparations supposedly being carried out by the DA remain inadequate given the personal testaments and reports reaching us over a period of four weeks. The DA may be unaware of the devastating impact to the agriculture sector once ASF reaches the country. Or perhaps, that is the intention to justify more pork importation which is our second pressing concern,” SINAG said.
“Backyard farmers have been raising their concern about the progressive decrease of farmgate prices for hogs in the last six months, as imported pork is flooding the market. Some (imports) are now being brazenly sold at wet markets. At no moment in our country’s history have we been importing this much pork — a whopping 392 million kilos for 2018. Chicken imports on the other hand for 2018 were 311 million kilos,” SINAG added.
On Sunday, UBRA President Elias Jose M. Inciong said that his group is “calling for the abolition of the MAV for chicken so that the special safeguard (SSG) trade remedy can apply to all imports.” — Reicelene Joy N. Ignacio

Piñol says not dragging feet on rice tariffication

AGRICULTURE Secretary Emmanuel F. Piñol has rejected claims that his department is delaying the implementation of Republic Act (RA) 11203, or the Rice Tariffication law, saying that consultations are currently under way in key rice growing areas to facilitate the drafting of the law’s implementing rules and regulations (IRR).
Senator Sherwin T. Gatchalian suggested in a DZBB radio interview last week that the Department of Agriculture (DA) is resisting rice tariffication.
“Contrary to the claim of Senator Gatchalian, the DA is in fact facilitating the conduct of nationwide information campaign and consultations to explain to the rice industry stakeholders what the law is all about,” Mr. Piñol said in a social media post on Tuesday.
“The consultations will start in Muñoz, Nueva Ecija today (Tuesday) and will move to three other areas all over the country within the week “ Mr. Piñol added.
Last week, Mr. Gatchalian called on Mr. Piñol to cooperate in implementing the newly signed law which is about to take effect starting March 5. Mr. Gatchalian is one of the authors of the law.
“(Mr. Piñol) must work for the success of the law even if he is against it,” Mr. Gatchalian said in the interview.
Mr. Piñol said that consultations are part of the process of drafting the law’s IRR.
“These consultations are needed in the formulation of the IRR which are requirements before the Rice Tariffication Law can take effect,” Mr. Piñol said.
“To clearly state, the DA and I, a supporter and friend of President [Rodrigo R.] Duterte, support the law he has signed. It has to be implemented effectively and we in government must ensure that there are no problems encountered in its implementation,” Mr. Piñol added. — Reicelene Joy N. Ignacio

Palace: China warns against unlawful deportations

CHINESE AMBASSADOR to the Philippines Zhao Jianhua warned the Philippines against arbitrary deportations of Chinese nationals, and conveyed a warning that Beijing might retaliate, the president’s spokesman Salvador S. Panelo said.
Mr. Panelo said in a briefing Tuesday that Mr. Zhao told him over dinner that “if this government will just deport Chinese, not in accordance with the law, then we will also do the same. That’s tit for tat.”
Mr. Panelo also clarified that the government’s intent is to crack down on Chinese nationals who are working in the country without the required permits.
“The President wish to clarify that the immigration laws will be strictly enforced against anyone who violates it. He was actually referring to Chinese workers with working permits — they will be protected because they have been [given] the green light to work here. (All he is saying is that) if there are hundreds of Chinese immigrants perceived to be working illegally here, we cannot be so harsh and reckless to just deport them (because) the Chinese government may also react (because) there are 300,000 Filipinos (in China),” he said.
Asked to comment, Liu Yiqun, Second Secretary at the Chinese Embassy said via text message that the embassy will not be releasing a statement on the matter. “Now, no statement to be released. Thank you.”
Mr. Panelo said in a statement: “Chinese workers who have working permits and are compliant with immigration rules and do not violate the laws of the land will be accorded the protection they are entitled to.”
“The Government will tread cautiously and in accordance with the Constitution in dealing with any matter involving Chinese migrants perceived or alleged to be staying illegally, given the situation of thousands of Filipinos staying in China,” he added.
Mr. Duterte said in a speech at a campaign rally in Laguna on Feb. 23 that he would not order the deportation of Chinese nationals who are illegally working in the country, noting that at least 300,000 Filipinos work in China. — Arjay L. Balinbin

DoLE to require more funding to issue Special Working Permits

SECRETARY Silvestre H. Bello III said the Department of Labor and Employment (DoLE) lacks the funding and manpower to issue special working permits (SWPs) to foreigners, after Congress last week proposed to give DoLE that authority.
In a briefing on Tuesday, Feb 26, Mr. Bello said DoLE will ask legislators to authorize more personnel and funding if SWPs authority is transferred to it from the Bureau of Immigration (BI). The DoLE currently issues Alien Employment Permits (AEP).
SWPs are effective for six months at most pending the processing of AEP applications.
“We will ask Congress to provide plantilla items so we can have employees to perform this procedure,” he said. A plantilla item is an authorized slot for personnel in a government agency, duly funded. He also added, “If we are given that responsibility, we may have to ask for a bigger budget.” Mr. Bello said that if not given enough funding, it will affect the issuances of the SWPs, adding, “We do not have that capacity.”
Last week, Senator Emmanuel Joel J. Villanueva said during a hearing on the influx of Chinese workers that he proposes to remove the authority of the BI to issue SWPs.
DoLE issued 169,000 AEPs between 2015 to 2018. Mr. Villanueva added that the BI issued nearly 185,000 in the past 11 months.
DoLE will take part in an interagency meeting on March 1 along with the BI, Department of Finance (DoF), Department of Trade and Industry (DTI), Department of Justice (DoJ), and the Philippine Amusement and Gaming Corporation (PAGCOR), which regulates gaming companies that employ many Chinese.
“There will be an interagency committee that will to address this concern about the employment of foreigners in our country,” Mr. Bello said.
He added that the Bureau of Internal Revenue (BIR) will also take part in the meeting as requested by DoF, saying “(They included) BIR because of the concern of the DoF of foreign workers not paying taxes.” — Gillian M. Cortez

CA upholds regular-employee status of GMA Network workers

THE Court of Appeals (CA) has upheld a National Labor Relations Commission (NLRC) ruling that 96 “talents” working for GMA Network, Inc. are regular employees.
In a 19-page decision dismissing a GMA petition and promulgated on Feb. 20, the CA special fourteenth division rejected GMA’s argument that the NLRC committed grave abuse of discretion for not considering “history and the peculiarities of the broadcast industry and its practice,” among others.
“In this case, it is not shown that the NLRC exercised its judgment whimsically, arbitrarily or despotically by reason of passion and hostility considering that its findings are supported by substantial evidence,” the CA ruled.
The appellate court rejected the claim of the GMA that there is no employer-employee relationship as the private respondents “were merely engaged independent contractors” since they render services to the network because of their skills and expertise in their tasks and also the high talent fees given to them.
Citing Article 280 of the Labor Code, the CA said the private respondents are regular employees as they are part of the production crew who are performing functions necessary for the business of GMA.
“Truly, without their work, petitioner GMA would have nothing to air, hence the private respondents’ services in the former’s television program were unquestionably necessary,” the CA said.
“Needless to state, petitioner GMA’s goal was to ensure excellent delivery of its programs to the viewing public. This could not have been achieved had it not been for the skills of the private respondents,” it added.
The court also noted that even if the employment contracts were for a fixed term, the respondents’ employment were renewed from “one, three, or six months or for one or five years which (made them) petitioner GMA’s regular employees.”
The CA also said the “four-fold test” in determining an employer-employee relationship which included that selection and engagement, payment of wages, power of dismissal, and power to control employee’s conduct, was established.
“More importantly, the private respondents were subjected to the control and supervision of petitioner GMA, a fact which is regarded as the most crucial and determinative indicator of the presence or absence of an employer-employee relationship,” the court said, adding that the network has set standards for the private respondents to follow.
GMA Vice-President for Corporate Communications Angela Carmela J. Cruz said the network has “not received a copy of the decision yet.”
The NLRC in its decision on Sept. 30, 2015 partially affirmed the decision of Labor Arbiter Julio R. Gayaman on June 22, 2015 which ruled the Talents Association of GMA Network (TAG) to be regular employees entitled to security of tenure and other benefits.
NLRC affirmed the regular status of 97 of the complainants while eight others were declared regular employees only until the dates of their resignation in 2014.
TAG filed the regularization complaint on June 4, 2014.
The decision was written by Associate Justice Zenaida T. Galapate-Laguilles and concurred in by associate justices Mario V. Lopez and Gabriel T. Robeniol. — Vann Marlo M. Villegas

Davao Oriental hoping to energize agriculture, tourism sectors

DAVAO CITY — The Davao Oriental provincial government is gearing up to improve its competitiveness in agriculture and tourism, with the province also in the process of drafting a 10-year plan for these industries.
Gov. Nelson L. Dayanghirang has ordered his department heads to reorganize their units in six months and come up with comprehensive plans that will maximize the potential of the two sectors.
In a planning session last week, Mr. Dayanghirang said provincial officials “need to think outside the box” to maximize the potential of the two sectors.
One of the focus areas is coconuts through more industrialized production processes. According to the Provincial Planning and Development Office, coconut production in 2013 fell 54.6% after Typhoon Pablo destroyed about six million coconut trees.
The top nut producer in the Davao Region, the province also has some of the lowest yields, based on 2013 data. Meanwhile, Davao del Sur and Davao City increased their yields to 9.36 metric tons per hectare (MTH) and 7.99 MTH, respectively from 8.84 MTH and 7.71 MTH previously. Davao Oriental’s production fell to 4.9 MTH that year from about 6.8 MTH in previous years.
Another issue is the low price of copra, the main by-product of coconut, which fetches at most a farmgate price of P20 per kilogram.
Ednar G. Dayanghirang, the governor’s chief of staff, told BusinessWorld that it is important for both the province and the national government “to find solutions to the problem, or the industry will die a natural death.”
Other issues are pests, lack of fertilizer and old trees, which help explain the lower yields. The land area planted to coconut also declined between 2012 and 2017 at a rate of 1.5% annually.
Initially, the governor said there is a need for coconut farmers to be organized into cooperatives to increase the chances of funding.
He added that the provincial government is looking at investing in industrializing the industry. “This would help maximize the value of products and services as means of improving farmers’ income, generating more and better employment to ensure a stable and progressive economy,” he said.
The governor said the province has also become a top destination in this part of the country.
According to data from the provincial government, the province attracted 801,479 tourists in 2015 from 91,165 in 2012.
The province is home to Mt. Hamiguitan Range and Wildlife Sanctuary, which was declared a UNESCO World Heritage Site.
The provincial government said there is a lack of accommodations and other amenities for tourists, and other infrastructure.
The governor said the province has been allocated P2.5 billion by Congress for tourism roads and a sports complex. — Carmelito Q. Francisco