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Duterte signs rice tariffication bill

PRESIDENT Rodrigo R. Duterte signed into law the rice tariffication bill on the last possible day he could have signed or vetoed the measure, Senate President Vicente C. Sotto III told reporters, as confirmed by television reports.
Television news programs on Friday evening quoted the President’s spokesman, Salvador S. Panelo, as saying that the President had signed the measure.
Mr. Sotto issued the confirmation in a Viber message to reporters Friday evening, saying: “Pirmado na ang additional discounts for poli(tical) ads, Rice tariffication din (The measures allowing additional discounts for political ads has been signed, as well as the rice tariffication bill).”
Rice tariffication liberalizes the import process for rice while taking away the role in importing of the National Food Authority (NFA). In place of the old system, private importers will pay a tariff of 35% on grain shipped from Southeast Asia, raising revenue for the government and also funding a rice industry competitiveness fund.
Had Mr. Duterte not signed the measure today, it would have lapsed into law. The uncertainty surrounding the signing had also raised the possibility that he might veto the measure as farmers’ groups had urged him.
As of 4pm yesterday, the Presidential Legislative Liaison Office had not confirmed whether the measure was signed or vetoed by the President, as of 4 pm Friday.
The measure was transmitted to the Office of the President on Jan. 15. Under the 1987 Constitution, the President has 30 days to act on a bill upon receipt from Congress, or else it lapses into law.
The measure had the blessing of economic managers and the business sector, but farm groups and Agriculture Secretary Emmanuel F. Piñol warned that the country might someday be hostage to a supply crunch in rice-producing countries when their populations grow. The bill’s opponents also said the measure would kill off the industry by discouraging rice farmers from planting the crop.
Former Trade Undersecretary Ernesto M. Ordoñez, in a Feb. 14 column in the Philippine Daily Inquirer, cited the position of Alyansa Agricultura on the measure.
Noting that while tariffication is “desirable,” he said 35% is too low, and estimated a 70% tariff as a level sufficient to ensure the survival of domestic farmers.
The Federation of Free Farmers also cautioned that the measure will remove the power of the National Food Authority to regulate the market and limit it to maintaining a buffer stock, to be released during emergencies to shore up the food supply in affected areas.
“Farmers will not be able to depend on the NFA to buy their produce if palay prices fall. Once the NFA accumulates enough for its buffer stock, it will have to stop buying from farmers. Traders will now be free to set whatever price they want,” FFF National Manager Raul Q. Montemayor was quoted as saying in a statement on Feb. 6.
Lining up to support the bill was the Foundation for Economic Freedom, which considers the measure as the “most far-reaching reform” in rice policy.
“By liberalizing the industry the syndicate controlling the value chain will now be nullified by free entry and competition — including entry and competition from foreign rice suppliers,” the group said in a statement on Monday.
The FEF’s members are mostly retired technocrats.
Thirteen business groups also signed a joint statement on Jan. 22, asking the President to sign the measure to ensure food security.
The measure will amend Republic Act No. 8178, or the “Agricultural Tariffication Act,” by lifting quantitative restrictions on rice imports. It is among the bills identified by the Legislative-Executive Development Advisory Council as a priority of the administration.
The measure will restore the minimum access volume to the 2012 level of 350,000 metric tons and impose a 35% tariff or the import duty rate commitment of the Philippines for rice importation, pursuant to the ASEAN Trade in Goods Agreement (ATIGA).
A 180% out-quota tariff rate will be levied on rice imports originating from non-ASEAN, World Trade Organization member states.
At present, the country has a MAV of 805,200 metric tons on rice imports.
The measure will also establish the Rice Competitiveness Enhancement Fund (RCEF), which Senator Loren B. Legarda confirmed had been given a P10-billion allocation under the 2019 General Appropriations Bill.
The RCEF is intended to serve as a special rice safeguard to protect the rice industry, which will be distributed, accordingly: 50% for machinery and equipment; 30% for rice seed development, propagation and promotion; 10% for expanded rice credit assistance and 10% for rice extension services.
The farmgate price of palay and wholesale and retail prices of well-milled rice dropped in the first week of February, according to data by the Philippine Statistics Authority (PSA) released Friday, ahead of the possible bill signing or lapsing into law.
PSA data showed the average farmgate price of palay, or unmilled rice, dropped in the first week of February by 0.15% week-on-week to P19.70 per kilogram (kg).
The average wholesale price of well-milled rice was P41.49 per kg, down 0.02% from the previous week. The average retail price of well-milled rice was P44.87 per kg, down 0.29%.
The average wholesale price of regular-milled rice fell 0.18% week-on-week to P38.18 per kg. The average retail price of regular-milled rice, on the other hand, rose 0.02% to P41.14 per kg.
The PSA said the average farmgate price for yellow corngrain rose 0.22% week-on-week to P13.93 per kg. The wholesale average price for yellow corngrain was P20.41, up 0.49%.
The average retail price for yellow corngrain was P25.35 per kg, up 0.68% week-on-week.
The average farmgate price for white corngrain rose 3.08% week-on-week to P14.41 per kg, while the average wholesale price was P20.88 per kg, up 0.38%.
The average retail price of white corngrain was unchanged at P28.12 per kg, PSA said. — Charmaine A. Tadalan with Reicelene Joy N. Ignacio

SC sought to reconsider denying Palawan’s share in Malampaya fund

By Charmaine A. Tadalan, Reporter
A MOTION for reconsideration has been filed before the Supreme Court (SC) over its decision denying Palawan its 40% share in the Malampaya gas project.
“We filed a motion for reconsideration in the hope that Palawan will finally get its legitimate share of the Malampaya funds,” former presidential spokesperson Harry L. Roque was quoted as saying in a statement issued Friday.
He said a total of P120 billion is on the line for Palawan, should the Supreme Court decide to allow the royalty share.
Mr. Roque is the legal counsel of Kilusang Love Malampaya, which is among the petitioners of the Malampaya case. He filed the motion for reconsideration on Thursday, Feb. 14.
This stemmed from the SC en banc ruling on the petition denying Palawan its share of royalties from the gas project.
The decision is “a huge step backwards, not only for the people of Palawan, but for all local government units empowered under the 1987 Constitution and the Local Government Code,” Mr. Roque said.
He argued the 1987 Constitution considers continental shelves as part of the national territory, which means it shall be recognized as part the local government’s territory.
“There can be no strict separation between resources that the national government can develop and the local government units that have control over these resources precisely because we are under a unitary system of government, and not a federal system,” he said.
He added: “The means by which local governments can achieve fiscal autonomy and develop are clearly stated in the Constitution and the Local Government Code: 40 percent share from the government’s utilization of their resources. Hence, there is no textual basis or just basis for any other conclusion than that Palawan deserves 40 percent of the revenues from Malampaya.”

PCC, DTI sign MoA on data-sharing, other monitoring components


THE Philippine Competition Commission and the Department of Trade and Industry signed on Friday a memorandum of agreement (MoA) aimed at facilitating data-sharing between the two agencies and ensuring fair competition among the industries on their watch.
“We really have to work together as we watch the industry structure, as well as industry development,” Trade Secretary Ramon M. Lopez said in a press briefing on Friday, adding that “we want to be assured that there is a good number of players, companies because it is competition that will assure competitive prices and benefit consumers.”
The MoA recommended coordination schemes on areas which may fall within the jurisdiction of one of the agencies, as well as investigation and enforcement support.
The MoA allows for easier transfer of data, except in cases where information was provided by private stakeholders and strictly meant for the DTI.
PCC Commissioner Johannes Benjamin R. Bernabe said private stakeholders will be given the option to waive its confidentiality terms to accommodate the PCC.
However, if stakeholders decline to share the needed data, the PCC can take legal steps to obtain the data.
“If they don’t waive, remember, under the Philippine Competition Act, the PCC has the power to subpoena documents,” Mr. Bernabe told reporters on Friday.
Competition Chair Arsenio M. Balisacan said the MoA will be a “game-changer” in fast-tracking their review of sectors and investigation of cases where competition concerns may arise. — Janina C. Lim

Friday marks second straight weekly fall ahead of PSEi rebalancing

WEAKNESS returned to Philippine equities on Friday — marking the second straight weekly fall — as traders adjusted portfolios ahead of the main index’s rebalancing on Monday, as the ongoing Sino-US trade row weighed on investors’ minds amid a lack of more compelling leads at home and as foreigners snapped back to selling mode.
The Philippine Stock Exchange index (PSEi) dropped 82.36 points or 1.03% to finish 7,908.89 — down 2.01% on the week — while the broader all-shares index gave up 28.32 points or 0.58% to end 4,823.32.
RCBC Securities, Inc. noted in a Stock Market Weekend Recap prepared by analyst Fiorenzo D. De Jesus that PSEi joined a regional downturn as “foreigners turned net sellers”, unloading a net P489.937 million compared to Thursday’s P251.895-million net purchases.
For AAA Southeast Equities President William Matthew M. Cabangon, “[a] large part of the moves happened at the close, and this can be attributed to the rebalancing of the PSEi, which takes effect on Monday.”
“Funds are reallocating their assets according to the new weightings all at the same time, exaggerating the moves of the index,” Mr. Cabangon explained in a mobile phone message.
Mr. de Jesus noted that trades of Bloomberry Resorts Corp. — whose stock price surged by 7.62% to P13 apiece and which replaces Petron Corp., which ended down 1.35% at P6.60 each, at PSEi on Monday — “accounted for P1.5 billion value turnover”.
“As funds portion more of their portfolio into BLOOM, they naturally sell the other index stocks in order to rebalance,” AAA’s Mr. Cabangon explained.
“We don’t see today’s -1% move in the PSEi as a reason to worry. It is just rebalancing.”
Timson Securities, Inc. Trader Jervin S. De Celis noted in a separate text message that “Our index closed in the negative territory today as foreign investors led the selloff of their positions in index stocks”.
“This negative sentiment in the PSE trailed the movement of our neighboring countries as China and US are reported far from reaching a deal, urging President (Donald) Trump to reconsider the deadline on March 1”.
Two key Wall Street indices ended Thursday down — the Dow Jones Industrial Average by 0.41%, the S&P 500 by 0.27% — while the Nasdaq Composite edged up 0.09%.
Most major Asian indices followed suit on Friday, with Japan’s Nikkei 225 and TOPIX dropping 1.13% and 0.79%, respectively, and the Shanghai SE Composite, Hong Kong’s Hang Seng and South Korea’s KOSPI giving up 1.37%, 1.87% and 1.34%, respectively.
At home, only two of the six sectoral indices ended with gains on Friday: property by 6.93 points or 0.17% to 4,036.7 and holding firms by 9.52 points or 0.12 to 7,901.93.
The rest retreated: financials by 48.71 points or 2.65% to 1,786.39, services by 21.92 points or 1.37% to 1,568.54, industrials by 91.59 points or 0.79% to 11,457.29 and mining & oil by 23.28 points or 0.27% to 8,492.91.
Stocks that declined outnumbered those that gained 127 to 83, while 46 others ended flat.
Friday saw 2.814 billion shares worth P16.391 billion change hands, compared to Thursday’s 3.792 billion worth P5.112 billion.
“The top market drag was BDO Unibank, Inc. which tumbled [by 4.98% to P133.60 apiece] following a P5.3-billion placement at P133.00 apiece. BDO’s parent, SM Investments Corp. also pulled back [by 2.02% to P970 each]. Together, BDO and SM accounted for a total of 50.41 points of the PSEi’s losses,” RCBC Securities’ Mr. De Jesus noted.
Friday’s list of 20 most active stocks showed only five that gained. Besides Bloomberry, the others were: Ayala Corp. (3.78% to P961 apiece), Universal Robina Corp. (1.53% to P146), Aboitiz Equity Ventures, Inc. (5.52% to P66) and Vista Land & Lifescapes, Inc. (26.98% to P8 each).
SM Prime Holdings, Inc. and Alliance Global Group, Inc. ended flat at P39.40 and P13.86 apiece, respectively. — J. C. Lim

Bong Go leaps to ‘Magic 12,’ Poe retains lead in Pulse Asia poll

Special Assistant to the President Sec. Bong Go — PRESIDENTIAL PHOTO

PRESIDENT Rodrigo R. Duterte’s special assistant Christopher Lawrence “Bong” T. Go has leapt to the top 12 in Pulse Asia’s latest survey on senatorial candidates conducted last January.
Meanwhile, reelectionist Senator Grace Poe-Llamanzares has retained her lead from Pulse Asia’s surveys last year, followed by fellow reelectionist Senator Cynthia A. Villar.
Mr. Go, who placed 16th in Pulse Asia’s mid-December 2018 poll, leapt to 8th place in the January poll conducted Jan. 26–31, with his awareness rising from 82% to 91%, and voter preference rising from 29.7% to 44.7%.
Otherwise, “(p)ractically all of the probable winners have at one time or another been part of Congress,” the survey noted.
Reelectionist Senator Juan Edgardo M. Angara, who placed 3rd in December, dropped to 6th and was replaced by former senator and Taguig City Representative Pia S. Cayetano, who placed 5th in December. Former senator Manuel “Lito” M. Lapid moved up 4th place in January from 5h place in December, and reelectionist Senator Ma. Lourdes “Nancy” S. Binay moved up 5th place in January from 6th place in December.
Completing the top 12 are reelectionist Senator Aquilino Martin dlL. Pimentel III in 7th place, former Senator Jinggoy E. Estrada in 9th place, former senator Manuel A. Roxas in 10th place (the lone oppositionist in the top 12), Ilocos Norte Gov. Imee R. Marcos in 11th place, and former senator Ramon “Bong” Revilla in 12th place.

Keng: Libel case vs. Rappler a ‘private,’ ‘personal’ matter

By Vann Marlo M. Villegas, Reporter
BUSINESSMAN Wilfredo D. Keng in a new statement on Friday maintained that the cyber libel case he filed against online news site Rappler and its CEO Maria A. Ressa is “a private criminal action” and “my personal fight to vindicate my name against the acts of an unethical and irresponsible few.”
“In what may be an ingenious attempt to divert attention away from this singular legal issue, Rappler and Ressa intentionally and wrongfully lump my case together with all other cases that have been filed against them,” he said.
“They falsely place me against the side of press freedom. They posture all such cases, including mine, as alleged concerted silencing maneuvers by the government,” he said, adding that they demean the legal remedy he sought and called it “preposterous and baseless,” an “attempt to intimidate,” “black propaganda,” and “lies.”
“My case does not tackle state suppression of policy criticism or of free expression of sentiment. That being said, its filing and progression do not impinge in any way on freedom of speech and of the press, freedoms which I fully believe in and support,” Mr. Keng added.
Ms. Ressa was arrested for cyber libel on Feb. 13 and was detained overnight at the National Bureau of Investigation (NBI) but was able to post P100,000 bail the next day at the Manila Regional Trial Court Branch 46 which issued the arrest warrant.
Former researcher Reynaldo Santos, Jr. also posted bail on Feb. 15, according to the NBI Cybercrime Division chief Victor V. Lorenzo.
Rappler, Ms. Ressa, and Mr. Santos were indicted by the Department of Justice on Dec. 10 last year for cyber libel over an article on May 29, 2012, four months before the Cybercrime Prevention Act was signed into law, which reported Mr. Keng as being linked to illegal activities and also as the alleged owner of a car used by then Chief Justice Renato C. Corona.
Ms. Ressa told reporters after posting bail that her arrest is an “abuse of power and weaponization of the law.”
“This isn’t just about, and it’s not just about Rappler. The message the government sending is very clear. And someone actually told our reporter this last night, ‘Be silent or you’re next.’ So I’m saying and appealing to you not to be silent even if and especially if you’re next.”
Ms. Ressa’s arrest also prompted outrage from various local and foreign organizations, institutions, and personalities.
Mr. Keng also said he will continue to pursue his case. “I will continue this criminal case against Rappler and Ressa, and am currently exploring all other cases that can be filed against them,” he said.
“I know that I am going up against an extraordinary and powerful accused, supported by politicians, foreign organizations and international outfits. With their combined machinery, they can act as critic, influencer and judge all at the same time. I know that there is a possibility that I may lose,” he added.

JBC comes up with shortlist for SC associate justice

THE Judicial and Bar Council (JBC) has included 13 names in its shortlist for the Supreme Court (SC) associate justice position vacated by the current Chief Justice Lucas P. Bersamin, according to Justice Secretary Menardo I. Guevarra.
Court of Appeals (CA) Associate Justices Edgardo L. De los Santos and Amy C. Lazaro-Javier topped the shortlist with six points each.
Court of Tax Appeals Presiding Justice Roman G. Del Rosario and CA Associate Justices Japar B. Dimaampao and Ramon R. Garcia also entered the list with five points each.
Making it in the shortlist with four points each are: Sandiganbayan Presiding Justice Amparo M. Cabotaje-Tang, SC Administrator Jose Midas P. Marquez, former Ateneo Law dean Cesar L. Villanueva, and CA associate justices Henri Jean Paul B. Inting, Jhosep Y. Lopez, Mario V. Lopez, Eduardo B. Peralta, Jr., and Ricardo R. Rosario.
Those who did not make the cut are: CA associate justices Nina G. Antonio-Valenzuela, Ramon M. Bato, Jr., Apolinario D. Brusales, Jr., Ramon A. Cruz, Stephen C. Cruz, and Oscar V. Badelles, and Sandiganbayan Associate Justice Efren N. de la Cruz.
Mr. Bersamin left his associate justice position on Nov. 28 last year upon his appointment as chief justice. — Vann Marlo M. Villegas

Comelec starts crackdown on illegal campaign materials

By Vince Angelo C. Ferreras
THE Commission on Elections (COMELEC) has begun its crackdown on illegal campaign materials, including those oversized or placed outside designated areas, following a grace period for compliance that ended Thursday.
Under COMELEC Resolution 10488, campaign materials should be limited to common poster areas such as plazas, markets, and barangay centers. Posters and tarpaulins should measure about 12 by 16 feet.
“Lilitratuhin natin itong mga mterials at ido-document natin…Kung mapapansin niyo nag-post na kami sa mga social media accounts naming ng mga out of place and out of size posters. Kung makikita niyo, may hawak na dyaryo yung tao natin…that proves the date of the incident,” Comelec spokesperson James B. Jimenez said in a press briefing on Friday. (We will take photos and document them…If you will notice, we have already posted on our social media accounts out-of-place and out-of-size posters. If you will see, some of our staff are holding copies of today’s newspaper…that proves the date of the incident.)
“Then we will write a letter to the candidate informing the violation and then we will take down the material,” he added.
Mr. Jimenez said the Comelec will deploy two teams to go around Metro Manila to monitor violations.
He also warned that, “If warranted, a criminal complaint will be filed for election offense. An election offense is of course violation of Republic Act 9006 and its implementing rules and the penalty is imprisonment up to six years, a fine, and disqualification from holding office.”
Also on Friday, COMELEC Commissioner Rowena V. Guanzon released on social media a list of election candidates with illegal posters. The list is a mix of administration, opposition, and independent candidates: Ferdinand A. Aguilar, Ibrahim H. Albani, Gary C. Alejano, Richard U. Alfajora, Rafael M. Alunan III, Juan Edgardo M. Angara, Paolo Benigno A. Aquino IV, Ernesto R. Arellano, Marcelino P. Arias, Bernard F. Austria, Ma. Lourdes Nancy S. Binay, Edmundo Vicente G. Casino, Pilar Juliana S. Cayetano, Glenn A. Chong, Neri J. Colmenares, Jose Manuel Tadeo I. Diokno, Joseph Victor G. Ejercito, Jinggoy E. Estrada, Lorenzo G. Gadon, Conrado I. Generoso, Florin T. Hilbay, Leborio M. Jangao Jr., Rodolfo B. Javellana Jr., Manuel M. Lapid, Romulo B. Macalintal, Emily T. Mallillin, Falsal M. Mangondato, Zajid G. Mangudadatu, Jose Sonny G. Matula, Luther G. Meniano, Alla S. Montano, Willie T. Ong, Sergio DR. Osmena III, Aquilino Martin De Llana Pimentel III, Mary Grace Natividad S. Poe-Llamanzares, Danilo V. Roleda, Lorenzo R. Tanada III, Francis N. Tolentino, Antonio AS. Valdes, and Cynthia A. Villar.
For his part, Department of Interior and Local Government Spokesperson Jonathan E. Malaya reminded local officials to avoid campaigning in areas that are government property. “I think what we are strongly against is yung paggamit ng (the use of) government property,…government vehicle,…(and) anything owned by the government for any partisan political activities,” he said in part.
He added, “Kung may nakita po tayong mga instances na ganyan, sa panahon po ng social media, madali nang mapicturan yan. Ipadala niyo po sa Comelec at DILG, at matutulungan niyo po kaming dalawa to make that person accountable.” (If you see any instances like that, in this time of social media, it’s easy to photograph that. Just send to COMELEC and DILG, and you can help us make that person accountable.)

ALI raises 2019 capex budget to P130 billion

AYALA Land Inc (ALI) said that it set a capital expediture (capex) budget of P130 billion this year, up from P110.1 billion a year earlier with the largest portion of the capex funding its residential projects.
In a briefing in Makati City on Friday, ALI Chief Financial Officer (CFO) Augusto Cesar D. Bengzon said that about 40% will go to residential development, 20% to 25% to its leasing business, and the remainder deployed for land acquisition.
The capex budget will be funded by bank debts and bond issues, for which the company will file a P50 billion shelf registration application to the Securities and Exchange Commission (SEC), Mr. Bengzon said.
“We will be going up to the board for a P50 billion shelf registration in the next twe weeks… The shelf registration is good for a three-year period,” Mr. Bengzon said.
ALI President and Chief Executive Officer (CEO) Bernard Vincent O. Dy said the bulk of the projects “will be primarily in Metro Manila, the Greater Manila Area, Region 4-A, and the VisMin region.”
“The plan is to launch two estates this year. One in Tarlac, one in Batangas,” Mr. Dy said, also noting that “we continue to look for new opportunities within the region.”
Mr. Dy also said for the projects in its pipeline, it is is increasing the number of beds in ALI’s dormitory-type project The Flats by 3,545 beds — with 1,145 to be located in the Bonifacio Global City Parkway area and 2,400 in Circuit Makati — on top of its current 2,228 total beds in Amorsolo, Makati and BGC 5th Avenue.
Also in the pipeline are the addition of 3,968 square meters of gross leasable area (GLA), equivalent to 898 seats, to its co-working space business Clock In which currently has 433 seats.
ALI reported that net profit in 2018 rose 16% to P29.2 billion, citing increased demand for residential and commercial space as well as lease for BPO offices.
“We introduced two new estates to bring our total to 26, registered the highest level of residential sales in our history, and stayed on track to open more commercial developments. These led to strong financial results and positioned our company for continued growth in the coming years,” Mr. Dy said in a statement.
Consolidated revenue hit P166.25 billion in 2018, up 17%.
In 2018, the company’s capex budget was P110.1 billion, with 41% going to residential projects, 12% to malls, 6% to offices, 5% to hotels and resorts, 15% to land acquisition, 12% to estate development, and 9% to take stakes in Prime Orion Philippines Inc (POPI) and MCT Bhd.
Mr. Dy said that the company set a net profit target of P40 billion by 2020.
“This is now within striking distance. Hopefully the economy will continue to be supportive,” Mr. Dy saud during the briefing.
“We now need to grow by 17% a year, [starting] in 2019,” according to Mr. Dy.
On Friday, ALI closed at P44.50, down 1.11%. — Reicelene Joy N. Ignacio

Udenna unit PH Resorts sheds 12% after approval of share offer

THE Philippine Stock Exchange (PSE) approved Udenna Group unit PH Resorts Group Holdings, Inc.’s (PHR) plan to conduct a follow-on offering of primary shares, with the stock responding by tumbling nearly 12%.
In a statement on Friday, PHR, the Udenna Group’s tourism and gaming business, said it is now cleared to issue up to 1.786 billion common shares with the option to issue a further 267.95 million shares if the need arises to stabilize prices.
In its disclosure to the stock exchange, the company said the estimated price range for the issue is between P3.65 and P5.84. The stock closed at P5.40 Friday, down 11.76%, coming off a low of P5.02.
At the top end of the pricing range, the company could raise as much as P10.43 billion without accounting for the option to issue more shares. At the low end of the pricing range, it could raise P6.52 billion.
PHR earlier obtained the approval of the Securities and Exchange Commission for the issue on Jan.24.
Proceeds will fund the design, construction, and development of the first phases of PHR’s two integrated casino resorts: The Emerald in Mactan, Cebu, and Clark Resort in Pampanga.
The remainder will finance the expansion of the Donatela Hotel in Panglao, Bohol, will some funds will be used for general corporate purposes. Subject to market conditions, pricing of the proposed offering is expected after the conclusion of a global roadshow that began yesterday.
“The Emerald and Clark Resort are envisioned to be world-class premium tourism projects aimed at attracting local and international tourists. The same goal is reflected in our expansion of the Donatela Hotel,” Chairman of PH Resorts Group Holdings, Inc., Dennis A. Uy was quoted as saying.
The company appointed CLSA Ltd. and UBS AG’s Singapore branch as the international underwriters, while China Bank Capital Corp. won the mandate as the domestic lead underwriter.
Udenna Corp. also controls Phoenix Petroleum Philippines, Inc.; shipper Chelsea Logistics Holdings Corp.; real estate firm Udenna Development Corp.; Enderun Colleges, Inc.; and Udenna Infrastructure Corp. — Janina C. Lim

Manila Water gears capex plans to boost wastewater treatment business

MANILA Water Co., Inc. has earmarked up to P197.8 billion for capital expenditure between now and the end of its concession agreement in 2037, more than half of which at P115 billion will go towards building new wastewater treatment plants and related facilities, company officials said.
“A huge component of the capital investment program is anchored on wastewater,” Nestor Jeric T. Sevilla Jr., Manila Water head of corporate strategic affairs, said in a briefing on Friday in Quezon City.
“Since 1997, we’ve done a lot. We a lot remains to be done),” he said.
The company called the media briefing to give its side after allegations were made during public hearings that it and the other water concessionaire in Metro Manila had been remiss in meeting their obligations.
Manila Water is the contractor of state agency Metropolitan Waterworks and Severage System (MWSS) for the Philippine capital’s east zone. From 1997 to 2018, its total investment in wastewater infrastructure has totaled P33 billion.
Arnold Jether A. Mortera, Manila Water head of used water operations, said the new investment in wastewater or used water facilities would be allocated gradually.
Aside from the water treatment plants, funds will also be spent on pumping stations, network systems, related facilities and upgrades.
He said the construction requires building a sewage collection system that feeds into the treatment plant. The two facilities always go together, with the first one requiring the tougher task of digging through roads to build the conveyance facilities.
Of the total capital expenditure for wastewater facilities, up to P38.4 billion has been programmed for between 2018 and 2022, covering the five-year period for which Manila Water sought approval from the MWSS regulator.
Mr. Sevilla said one of the reasons why the budget had been programmed until 2037 is because the spending would have an impact on the water tariff to be collected from consumers.
“We don’t want the customers to be burdened with a big hit in the tariff,” he said. “The roadmap is constructed in such a way that the effects on the tariff would be gradual.”
The company said that by 2022, Manila Water’s wastewater treatment facilities should have covered 38% of its concession area. Ahead of full coverage, the company will continue offering desludging services.
“While we are committed to meet full sewerage coverage by 2037, in the interim we have to do something,” said Kristoffer Eduard M. Rada, Manila Water head of public policy.
“That desludging program is the stop-gap measure,” he said.
However, he said the company does not have the power to compel households to avail of the desludging service. He added that some local government units have supported the effort by issuing mandatory ordinances.
Until the end of the concession period, the company will implement projects in two or three phases. Seven projects are set to start by 2022, while the rest will begin construction from 2023 onwards.
The sewage treatment plants (STPs) to be built are designed to cumulatively collect and treat up to almost 950 million liters per day (MLD) of wastewater from 7.5 million population in the east zone.
Manila Water’s budget will also cover the rehabilitation of existing sewer lines and the upgrade of operating STPs to meet the standards of the Environment department for biological nutrient removal in the wastewater treatment process.
The company currently operates 38 STPs and two septage treatment plants with a total capacity of 310 MLD. They are designed to serve 22% of the total water service connections. Coverage in terms of sewer connection is now at 15%, serving a population of about 553,061.
In 2018, desludging services covered 1.3 million population from cleaning and emptying 112,836 septic tanks.
Of Manila Water’s ongoing wastewater infrastructure projects, the one nearest completion is the Ilugin STP that will serve the sub-catchment area of north and south Pasig. Once completed in 2020, the facility will have a capacity of 100 MLD, with its sewerage system serving up to 765,000 households. — Victor V. Saulon

URC shrugs off PCC rejection of sugar deal, to seek other opportunities

UNIVERSAL Robina Corp. (URC) said it continues to seek opportunities that will strengthen its business after the antitrust regulator rejected its plan to buy the sugar milling and refinery unit of Roxas Holdings, Inc.
“URC continuously looks for opportunities to attain greater production efficiency which in turn leads to the provision of quality products at affordable prices to consumers,” the food company said on Friday.
URC and Roxas Holdings separately confirmed receipt of the decision issued by the Philippine Competition Commission (PCC) to reject the acquisition of the milling and refinery assets of Central Azucarera Don Pedro Inc. (CADPI).
“The decision by the PCC does not materially affect the business plans of URC,” URC told the stock exchange.
“URC accepts the PCC decision and affirms its commitment and support to the efforts of government for a strong market economy,” it added.
URC said it had entered into the agreement with Roxas Holdings with the closing of the sale transaction subject to, among others, obtaining the approval of the PCC.
The company said it proposed to acquire CADPI’s assets in Nasugbu, Batangas with the objective of attaining greater production efficiencies.
It said with that goal in mind, it was “convinced that it would bring about such efficiencies that would translate to better sugar planter and consumer welfare driven by a more stable and profitable sugar production industry in Southern Luzon.”
“We sought to address the concerns expressed by the PCC regarding the potential unintended consequences of such proposed transaction, offering commitments and safeguards where appropriate,” it said.
“Despite such efforts, the PCC in the exercise of its mandate, decided not to allow the proposed transaction to proceed,” it added.
In a statement dated Feb. 14, the PCC said it found URC’s acquisition of its only competitor in the sugarcane milling services market leads to a monopoly in Southern Luzon.
URC’s mill is in Balayan, Batangas.
The PCC had raised competition concerns about the proposed acquisition, with the parties voluntarily submitting commitments “but these failed to sufficiently address the competition concerns.”
“The prohibition prevents this deal from creating a monopoly in the relevant market that could harm the welfare of the sugar cane planters. It is the duty of the Commission to prevent the creation of monopolies when applying the merger control powers conferred on it by the Philippine Competition Act,” PCC Chairman Arsenio M. Balisacan said.
The PCC said both mill operators are in Batangas but the monopoly to be created by the merger would substantially reduce competition in the sugar milling services market not only in Batangas, but also in Cavite, Laguna, and Quezon.
On Friday, URC rose 1.53% to P146, while Roxas Holdings was up 0.67% at P3.02. — Victor V. Saulon

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