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PCC backs solar franchise but wants competition rules in place

THE Philippine Competition Commission (PCC) said it supports attempts by a solar energy company to seek a legislative franchise to operate all over the country, but only after a regulatory framework is in place to guard against anti-competitive practices.
“In brief, the PCC is of the position that there is a need to establish a regulatory framework for the generation, transmission, distribution of electricity through distributable power technologies and minigrid systems that will ensure competitive neutrality and fair competition in the market,” it said in a position paper submitted to the Senate, which is hearing the bill on the franchise.
“PCC believes that such regulatory framework is a prerequisite to the grant of a franchise such as the one sought by Solar Para Sa Bayan Corp. to avoid potential competition concerns,” it said in its paper.
In an interview, Commissioner Johannes Benjamin R. Bernabe said the PCC raised several points on the franchise application.
“First point, we are supportive of the disruptive innovation in technology that is being pushed by Solar Para Sa Bayan,” he said.
“Second point is, because we know that there are many legal issues and even Constitutional issues being raised, we want to make sure that his initiative will not be blocked by other stakeholders,” he added.
House Bill 8179 seeks to grant Solar Para Sa Bayan a franchise to construct, install, establish, operate and maintain distributable power technologies and minigrid systems throughout the Philippines to improve access to sustainable energy. It is for consideration of the Senate on public services and energy committees.
The bill has raised opposition from some sectors in part because the company’s owner, Leandro L. Leviste, is the son of a sitting legislator, Senator Loren B. Legarda.
If passed in its current form, the franchise grants Mr. Leviste authority to put up solar farms and distribute their power output in areas with current franchises held by electric cooperatives.
Electric cooperatives, solar energy system developers, and even big power distribution utilities had opposed the bill, citing among others, unfair competition.
“That’s why we are trying to push for a framework, a legal framework, which will ensure that it will not be questioned in court in the future, and that’s why we’re trying to help the franchise applicant to realize these issues and be able to have an open mind to addressing these issues in the franchise bill,” Mr. Bernabe said.
“For instance, with regard to a lack of sufficient definition and standards on what constitute unserved and underserved areas, that’s one, with regard to the need for clearly identifying what is the scope of activities that they will offer, and third, we want to see some certain competition disciplines embedded,” he added.
He said: “If it is going to be a franchise holder for an area where there is no other entity and then another entity wants to come in the future, that’s such second entity will have the ability to access whatever is generated from the output of Solar Para Sa Bayan.” — Victor V. Saulon

PHL shares seen to climb as inflation slows further

By Arra B. Francia, Reporter
SHARES ARE SEEN to rise on Wednesday following the better than expected inflation reading for the month of January.
The 30-company Philippine Stock Exchange index fell 0.91% or 74.68 points to close at 8,069.48 on Monday, snapping a two-day ascent for the market.
“The slightly better reading should bode well for the market. Buying momentum should continue as investors will be encouraged that this will soon fall closer to the admissible range of 2%-4%,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message following the release of the inflation data on Tuesday.
Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan also noted that the market could firm up on Wednesday on positive news on inflation.
“I think that the market will be up and sustain the rally above 8,000 because of the inverse relationship of inflation to our index. When inflation goes down our index goes up since our economy is consumption drive,” Mr. Tan said in a text message.
The Philippine Statistics Authority reported on Tuesday that headline inflation eased to 4.4% in January from December’s 5.1%. This is the slowest recorded in 10 months since March 2018’s 4.3%.
The January inflation figure is lower than the 4.5% median estimate from a BusinessWorld poll of 12 analysts.
The figure however is still higher than January 2018’s inflation print of 3.4%.
“Also the market will be pricing in the stance of BSP (Bangko Sentral ng Pilipinas) not to raise interest rates since we see the inflation is going down. This is a very positive news for our local bourse,” Mr. Tan added.
The BSP’s Monetary Board will meet on Thursday to review policy rates. A BusinessWorld poll of the same analysts said the Monetary Board will likely keep benchmark rates steady at 4.25-5.25% for its first policy review this year.
Instead of adjusting key interest rates, analysts expect the BSP to first cut the reserve requirement ratio (RRR) of banks.
BSP Governor Nestor A. Espenilla, Jr. earlier said there is scope to pursue further cuts to the 18% RRR for big banks. This forms part of Mr. Espenilla’s long-term goal of bringing down the RRR to single-digit levels when his six-year term as governor ends in 2023.
Local financial markets will reopen on Wednesday following the Chinese New Year holiday.
Meanwhile, major Wall Street indices ended in positive territory on Monday, as investors became optimistic for the prospects of the trade war between the United States and China.
The Dow Jones Industrial Average gained 0.7% or 175.48 points to close at 25,239.37. The S&P 500 index climbed 0.68% or 18.34 points to 2,724.87, while the Nasdaq Composite index jumped 1.15% or 83.67 points to 7,347.54.

Charges vs Jolo bombing suspects up for resolution

By Vann Marlo M. Villegas, Reporter
COMPLAINTS filed by Sulu police against five suspected members of the terrorist group Abu Sayyaf have been submitted for resolution, an official of the Department of Justice (DoJ) said late Monday.
“The prosecutor has terminated the inquest proceedings and deemed submitted for resolution the case against the five (5) arrested suspects in the (Jan. 27) Jolo Cathedral bombing,” DoJ Undersecretary and Spokesperson Markk L. Perete told reporters in a text message late Monday.
The five suspects who surrendered to authorities over the weekend are Mukamma L. Pae (also known as Kammah L. Pae), Albaji Kisae Gadjali, Rajan Bakil Gadjali, Kaisar Adjali, and Salit Alih.
Mr. Perete said they are facing charges of multiple murder, multiple frustrated murder and damage to property as filed by the Sulu Police Provincial Office. The complaints were filed at the prosecutors’ office in the province.
He added that seven other identified suspects and several “John and Jane Does” remained at large.
Mr. Pae, whom authorities believed to have assisted an Indonesian couple tagged in the Jan. 27 suicide bombing, was also identified by authorities as a member of the Ajang-Ajang faction of Abu Sayyaf.
He surrendered amid police operations during the weekend.
Philippine National Police Chief Director General Oscar D. Albayalde said in a press conference on Monday that Mr. Pae only admitted to being part the ASG faction but not to being part of the bombing. On the other hand, other suspects pointed to him as the one who aided the Indonesian couple.
Mr. Albayalde said an improvised explosive device and its components were found in Mr. Pae’s house.
Two consecutive bombings in the Cathedral of Our Lady of Mt. Carmel in Jolo, Sulu last Jan. 27 claimed the lives of 23 people and wounded 95 others.

House OK’s bill penalizing owners of properties used in drug trade

A BILL imposing penalties on negligent owners or lessors of properties used in the illegal drug trade hurdled the House of Representatives on third and final reading.
House Bill No. 8909, which further amends the Comprehensive Dangerous Drugs Act of 2002 (Republic Act No. 9165), was approved with 172 affirmative and zero negative votes.
The measure, backed by Speaker Gloria Macapagal-Arroyo, will also introduce new penalties for those found to be in possession of drugs, controlled precursors and essential chemicals, and laboratory equipment used for the drug trade.
If enacted, the bill will subject a negligent owner or lessor of a property used as a laboratory for drug purposes to be sentenced to 6 to 12 years of imprisonment and a fine ranging from P500,000 to P1 million.
In the event the property is used as a den, dive or resort, criminal liability will be extended to the property owner or lessor.
Moreover, the measure will now penalize those in possession of less than 2 grams of illegal drugs with 6 to 12 years of imprisonment and a fine of P50,000 to P200,000.
Currently, Republic Act No. 9165 only penalizes those in possession of 10 grams of opium, morphine, heroin, cocaine, marijuana resin, 50 grams of shabu, and 500 grams of marijuana.
Further, the bill increases membership in the Dangerous Drugs Board to 20 members from the current 17. — C.A. Tadalan

Study finds most Filipinos ‘not fully ready for disasters’

By Arjay L. Balinbin, Reporter
ONLY 36% of Filipino households reported “feeling fully prepared for disasters,” according to a study by the Harvard Humanitarian Initiative (HHI) DisasterNet Philippines of Harvard University.
“Among the 4,368 Filipino households surveyed across the country, 74% were unable to invest in disaster preparedness, mostly due to lack of funds (47.5%) and lack of time (20%). In the Autonomous Region in Muslim Mindanao (ARMM) alone, 92% reported insufficient funds,” the HHI said in a statement on Tuesday, Feb. 5.
The study was conducted from March 10 to April 9, 2017. HHI also said 240 household interviews were conducted in each of the 18 regions of the country, “with oversampling” in the National Capital Region (NCR).
HHI found that “nearly 47% of respondents claimed to have done nothing to prepare for a natural hazard in the last five years” despite campaigns by the government, non government organizations (NGOs), and media.
“Although most respondents claimed to have discussed emergency plans with family members when prompted (83%), most respondents do not have a ‘go-bag’ or emergency kit (82%), and first aid kit (62%).”
On the number of Filipinos insured, HHI said, “Strikingly, very few Filipinos are adequately insured to deal with disasters,” adding that “only 19% claimed to have life insurance, 56% had health or medical insurance, 3% had home insurance, and 2.5% had asset insurance.”
Filipinos living in areas more frequently hit by typhoons “perceived themselves as being more prepared” while the “lowest level of preparedness cited was in Northern Mindanao with only 31%.”
HHI said “52% of residents in Eastern Visayas felt very prepared, with 49% in Bicol, 44% in Western Visayas, and only 32% in the NCR.”
“Similarly, advance discussions on disaster at the household level were high in Bicol, Western Visayas, and Eastern Visayas,” it added.
HHI also said 42% of Filipinos had experienced “significant damage to property, assets and had been displaced from their homes due to a disaster,” and only “22% were confident they would be able to recover.”
Harvard noted that 52% of the assistance that Filipinos received in the aftermath of a disaster was provided by local government units (LGUs), but only 9% of the population reported receiving housing and relocation support.
“Temporary employment and cash-for-work represented a small portion of overall aid received by Filipinos with the exception of those living in Eastern Visayas (20%) and Western Visayas (17%),” HHI said.
HHI Resilient Communities Program Director Vincenzo Bollettino said the study “offers important insights into the way Filipinos understand and prepare for a variety of natural hazards that they face.”
“The first nationwide survey of its kind in the Philippines, the data offer a rich look into material levels of preparedness, Filipinos’ views on climate change and its anticipated impacts and offers unique reflections on Filipinos’ expectations of who is responsible for disaster response,” he added.
He said further that “as an archipelago located in the Pacific Rim of Fire, the Philippines is exposed to an array of natural hazards.”
“How Filipinos understand their own exposure to these hazards and the steps they take to cope with them is crucial to formulating relevant national policy and planning.”

Bilateral training

The US Pacific Air Force and the Philippine Air Force (PAF) marked the close of the Bilateral Air Contingent Exercise-Philippines (BACE-P) at the Cesar Basa Air Base in Pampanga, conducted from Jan. 21 to Feb. 1.

19 new missionary routes offered to shipping companies

THE MARITIME Industry Authority (MARINA) has called on shipping firms to consider serving the 19 newly-opened missionary routes to help improve domestic travel. In a statement on Tuesday, MARINA said these routes are part of the Road RoRo Terminal System (RRTS), “a seamless stretch of roads and ports to improve inter-island transportation, enhance tourism, and expand regional markets, among others.” A missionary route provides a link to RoRo-capable ports “that have no existing shipping service due to geographic limitation and/or absence of market viability.” Service providers get incentives such as investment protection for five years and 50% discount on the regular fees of all applications and renewal of ship documents, licenses, certificates, and permits. The new RoRo missionary routes are:
1) Basco, Batanes — Currimao, Ilocos Norte
2) Batangas City — San Jose, Occidental Mindoro
3) San Juan, Batangas — Abra de Ilog, Occidental Mindoro
4) Real, Quezon — Polillo Island, Quezon
5) Lucena, Quezon — Odiongan, Romblon
6) Lucena, Quezon — Buyabod, Marinduque
7) Lucena, Quezon — Romblon, Romblon
8) Lucena, Quezon — Masbate City
9) Maasin, Southern Leyte — Ubay, Bohol
10) San Narciso, Quezon — San Pascual, Masbate
11) Pantao, Albay — San Pascual, Masbate
12) Calbayog City, Samar — Cataingan, Masbate
13) Taytay, Palawan — Cuyo, Palawan
14) Cuyo, Palawan — San Jose de Buenavista, Antique
15) Oslob, Cebu — Dumaguete, Negros Oriental
16) Punta Engano, Mactan Island, Cebu — Jetafe, Bohol
17) Poro, Camotes, Cebu — Isabel, Leyte
18) Lipata, Surigao del Norte — Dapa, Surigao del Norte
19) Siaton, Negros Oriental — Dipolog City

Welcome, Year of the Earth Boar

People watch the fireworks display at the Lucky Chinatown Mall in Manila to welcome the new lunar year.

Iloilo City wants better port facilities for cruise ship tourism

AFTER HOSTING almost 800 Japanese tourists who came via the MV Pacific Venus vessel for the Dinagyang Festival weekend last Jan. 25-27, Iloilo City is now planning to undertake improvements in its port facilities to attract more cruise ships.
“I talked with the Philippine Ports Authority (PPA) if we can improve our docking facility because it’s meant for cargo and not for people” Iloilo City Mayor Jose S. Espinosa III said in an interview after the annual festival.
The Japanese cruise ship docked at the Loboc Wharf of the Iloilo International Port in Lapuz, which mainly serves as one of the main cargo docks for both Iloilo province and the Western Visayas region.
Mr. Espinosa said aside from improving the docking facility, a passenger terminal would also be needed.
“We are planning to establish a terminal for cruise ship diri sa may (here at the) Fort San Pedro,” he said.
The mayor said he invited and met up with the captain of the MV Pacific Venus during their stop to help in promoting the city.
“I hope more cruise ship will be coming because I invited the captain of the cruise ship and it would be a big help if he could relay to other cruise ship captains that we are a great city,” said Mr. Espinosa, speaking in mixed Visayan and English.
The Japanese tourists, who were mostly senior citizens and persons with disabilities (PWDs), arrived morning of Jan. 26 and witnessed the Fiesta Pilipinas Kasadyahan cultural competition and the Dagyang tribes dance competition at the new Dinagyang Grandstand on Jan 27.
They also visited sites at the old and modern parts of the city, including the Molo Mansion, Casa Mariquit, Jaro Cathedral, the riverside Esplanade, and the Iloilo Business Park.
Junel Ann T. Divinagracia, head of the Iloilo City Tourism and Development Office, said the cruise stop was perfectly timed for the festivities that highlight Ilonggo culture and heritage.
“Their visit during Dinagyang was very timely because we were able to showcase our culture. It’s also very important because it’s a maiden voyage so we need to make a very good impression so we can realize our dream of becoming a cruise ship destination in Western Visayas,” she said.
In 2015, the Department of Tourism-Western Visayas office (DoT-6) was already pushing for the development of more cruise ship stops in the region given the growing popularity of Boracay as a port of call.
DoT-6 has been envisioning a cruise ship circuit in the region, which is composed of the entire Panay and surrounding smaller islands as well as the western half of Negros island.
DoT Regional Director Helen J. Catalbas then said, “Western Visayas is composed of many islands and ports that if promoted, can also be a host to cruise ships coming from all over the world.” — Emme Rose S. Santiagudo

PNP-11 cracks down anew on cops involved in illegal gambling

THE DAVAO Police Regional Office (PRO-11) is undertaking a crackdown anew on cops suspected to be protecting illegal gambling activities. Chief Supt. Marcelo C. Morales, PRO-11 director, warned that they will “keep on arresting the people behind it (illegal gambling)” although the identities of the suspected dirty cops have yet to be firmed up. Last week, five people involved in the operation of an illegal numbers game were arrested in Davao City and Davao del Sur. Under now retired Chief Supt. Manuel R. Gaerlan, Mr. Morales’ predecessor, several police officers in the region were relieved from their posts, including two in Davao del Norte, after an ultimatum for local police to stop illegal gambling failed. Among the illegal games in the region are the “Last Two,” which is based on the winning numbers of the government-operated numbers game, and unauthorized cockfights. Mr. Morales also appealed to the public to stop patronizing these illegal activities. — Carmelito Q. Francisco

Defense chief says PHL getting foreign help in anti-terror campaign

DEFENSE SECRETARY Delfin N. Lorenzana said the United States and neighboring countries have been helping the Philippine government in combatting terrorism, particularly the threat posed by the Islamic State’s (IS) followers and allies in east Asia. In the aftermath of the church bombing in Jolo last Jan. 27 that was claimed by IS, Mr. Lorenzana said, “Yes, we got assistance from the Americans,” noting that their troops helped in the rescue operations as well as in tracking down the perpetrators. “In fact, they have been helping us track these terrorists even before the bombing and they were the first to rescue our assets and bring some wounded to Zamboanga,” said Mr. Lorenzana at a forum last Monday. Within the region, Mr. Lorenzana said Singapore was among those that helped, aside from Indonesia and Malaysia. “We also got assistance from Singapore, the intelligence there,” he said. “I think because the three countries here — Indonesia, Malaysia, and the Philippines — we consider ourselves as just one area infested by terrorists. The so-called East Asia ISIS actually straddles the three countries, the triangle. We are all in this together and we have agreed to fight this together,” he added. — Vince Angelo C. Ferreras

Securing the BOL ballot


NORTHERN MINDANAO: CAGAYAN DE ORO CITY
Police officers from the regions of Central Visayas and Caraga, and the Special Action Force (SAF) arrive in Lanao del Norte earlier this week to augment security forces in ensuring a peaceful and orderly Bangsamoro Organic Law plebiscite in parts of the province as well as in Cotabato.
SOCCSKSARGEN: TULUNAN, COTABATO
Election paraphernalia are delivered and distributed on Feb. 5 in nine barangays in Tulunan, Cotabato, earlier than in other areas, for the Bangsamoro Organic Law plebiscite. The Commission on Elections (Comelec) said these villages are “are too far, (with) difficult means of transportation and peace & order condition is unstable.”

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