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Playing a powerful role

“Quality, reliable, secure, and affordable power throughout the entire archipelago will be the backbone of a vibrant and robust Philippine economy,” wrote Department of Energy (DoE) Director Cesar G. dela Fuente III in DoE’s annual report in 2017. Part of that power is the valuable output of the fuel industry, which is still seen as one of the most vital sources of energy.

Many of what we use and consume today mostly rely on fuels. Institute for Energy Research further explains: “All of our decisions depend in some way on energy and the price of energy — how we travel, what we eat, what temperature we keep our houses, and which jobs we work.”

Likewise, many industries are tapping this single source for its multiple uses. Oil and gas power vehicles, houses, and even businesses; that’s why they are seen as critical components of the global economy. In fact, subsea hydraulics engineer Ryan Carlyle wrote in Forbes.com back in 2013 that oil and gas combined covers over half of the world’s energy.

As one of the most widely used sources of energy, the fuel industry possesses an impact in both the local and global economy. True to the definition of energy, fuels — in various ways — fuel the world to keep it running. “Except for a minuscule number of electric-powered vehicles, you can’t move anything anywhere faster than about 25 mph without oil… and you can’t run a modern economy,” wrote Mr. Carlyle. “There is no doubt in my mind whatsoever that modern civilization would collapse in a matter of months if oil stopped flowing.”

While estimates on the global contribution of the fuel industry are hardly found, some sources are giving a hint of how fuel’s share figure up globally. For instance, in a discussion from finance Web site Investopedia, the oil and gas drilling sector, which constitutes companies that explore gas fields and develop them for operation, earned total revenues totaling to $2 trillion in 2017. “Since the 2017 estimates for worldwide gross domestic product range between $75 trillion and $87.5 trillion, the oil and gas drilling sector currently makes up something between 2% and 3% of the global economy,” Investopedia wrote.

In the Philippines, oil and gas are doing a significant share in the economy. The DoE compiled statistics published in its 2017 Philippine Energy Situationer and 2017 Key Energy Statistics, both of which include economic indicators.

As shown by the 2017 Key Energy Statistics, alongside the gross domestic product (GDP) tallying a 6.7% growth two years ago, the total final energy consumption amounted to 57.9 million tonnes of oil equivalent (MTOE), increasing from 54.6 MTOE last 2016.

Presenting the supply and demand situation in the Philippines in 2017 vis-á-vis 2016, the Situationer provided economic indicators like energy intensity, energy elasticity, and energy per capita.

Energy intensity, according to energyeducation.ca, measures “how much a bit of energy benefits the economy.” The following data must have attested to how it fairly did. “The country’s economy-wide energy intensity was sustained at 6.7 tonnes of oil equivalent per million pesos of real GDP (TOE/MPhp) in 2017,” DoE wrote. It also indicated that oil intensity was also constant at 1.8 barrel per P100,000.

Energy-to-GDP elasticity was at 0.9 units that same year. Oil also tallied the same units, although it decreased from 2016’s 1.1. Being positive and less than one, these values conclude that the “primary energy demand was least affected by proportionate changes in economic output.”

Energy per capita jumped to 0.55 TOE per person in 2017 from the preceding year’s 0.53. Oil per capita grew by 4.4% to 1.47 barrels per person, reflecting “increased consumption of energy,” and therefore indicating “improved access of the country’s populace to energy services due to extensive promotional efforts of the government and stakeholders in the energy sector.”

With these notable data, it is worth anticipating to see what greater role the oil and gas industry can play in spurring economic growth. The DoE recently stated that investors are keen on drilling for oil and gas, and several groups expressed their interest to begin explorations. These local explorations, according to DoE Secretary Alfonso G. Cusi, “will offer positive contributions to our economy as a direct result of exploration-related investment.” — Adrian Paul B. Conoza

Charting the future of the oil sector

There is nothing that has been more crucial to the development of the modern age than the oil industry. Its importance led to the economic rise of many countries in the past, and to this day keeps much of the world functioning as the leading source of global energy. The world’s reliance on oil cannot be overstated.

Yet, the global oil industry has found itself in a precarious situation. As more developing nations catch up to the Western world, demand for oil continues to grow exponentially. Easy access to crude oil supply, however, is rapidly declining, even as technological advancement continues to lower the costs of producing fuel from other sources, such as natural gas, geothermal, and renewables. At the same time, shifting public opinions on the adverse environmental effects of oil on the environment are pushing policy makers, investors, and scientists to reconsider the central role oil plays in modern life, putting into question the very future of the industry.

While it is more than likely that the world may still depend on oil for decades to come, the current practices of the industry must change if its long-term sustainability is to be ensured.

The International Energy Agency (IEA) in its World Energy Outlook 2018 (WEO 2018) found that while the geography of energy consumption is shifting towards Asia, oil markets are “entering a period of renewed uncertainty and volatility, including a possible supply gap in the early 2020s.”

“The analysis shows oil consumption growing in the coming decades, due to rising petrochemicals, trucking and aviation demand. But meeting this growth in the near term means that approvals of conventional oil projects need to double from their current low levels,” findings from the WEO 2018 said.

“Without such a pickup in investment, US shale production, which has already been expanding at record pace, would have to add more than 10 million barrels a day from today to 2025, the equivalent of adding another Russia to global supply in seven years — which would be a historically unprecedented feat.”

The task is further complicated by emerging policies addressing climate change. In its New Policies Scenario, the IEA stated that under a scenario where fossil fuel use is restricted to limit global warming to 2°C, oil use would be significantly more limited. Under the IEA’s 450 Scenario, which is consistent with a 50% probability for less than 2°C global warming, global oil demand may reach a temporary peak at 93.7 million barrels per day in 2020 but thereafter fall to 74.1 million barrels per day by 2040.

A white paper by the Global Agenda Council on the Future of Oil & Gas, published by the World Economic Forum, predicted that as oil companies realize the inevitability of a short-term spike in demand growth followed by a sharp decline, there will be a rush in the investment, development, and production of oil in the near future.

“Only parties that have no choice (lack of finance, geopolitical barriers, inability to organize investment due to bureaucratic failures, etc.) will be left out of the calculation whether to consider the remaining “carbon budget” for global oil production in deciding how much, and when, to invest to monetize existing reserve holdings,” the white paper said.

“Companies will also have to consider when it no longer makes sense to continue exploration for new resources in high-cost, long lead-time environments as countries with large, low-cost reserves more aggressively pursue a market share-oriented strategy for their remaining oil and gas assets.”

In the short term, growth in the oil industry must revolve around developing a value proposition that takes into account the fact that overall production growth may no longer be possible. This involves cutting costs, increasing efficiency, cooperation within the industry, and possible consolidation. A technological revolution, driven by significantly higher levels of artificial intelligence, automation, remote operation, and management, could be under way.

Long term, however, Big Oil must face graver concerns than supply and demand. The oil industry consistently ranks among the least trusted industries in the world due to persistent controversies of corruption and misconduct. Social, geopolitical, and environmental concerns, from climate change to the destructive nature of oil exploration and development, further aggravate matters, making communities increasingly more opposed to the industry’s expansion and policy-makers more likely to impose harsher regulations.

As the reputation of the entire industry gets tainted by the actions of its worst ranks, there is a need for self-regulation and a good institutional framework that recognizes and rewards transparency, stewardship, and improved performance across the board. At the same time, long-term sustainability demands that the oil industry seek a transition to renewable energy while the demand for oil remains strong.

“Eventually, players who remain competitive in the oil and gas industry will have to consider whether it can be more profitable to shareholders to develop profitable, low-carbon sources of energy as supplements and ultimately replacements for oil and gas revenue sources, especially to maintain market share in the electricity sector,” the Global Agenda Council on the Future of Oil & Gas wrote.

“This will require a change in the oil and gas industry investors’ mind-set. To develop this second leg of the oil and gas industry’s activities, the industry may find new opportunities by addressing the technological challenges associated with the different parts of the renewable space, as well as how to develop efficient combinations of large-scale energy storage and transport solutions in a world with a lot of variable renewable electricity.” — Bjorn Biel M. Beltran

BSP sees little inflation risk from El Niño

By Melissa Luz T. Lopez
Senior Reporter
INFLATION will not zoom past target this year despite threats of a dry spell, a senior central bank official said, citing ample buffer stocks of rice to keep price hikes at bay.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said that out-quota importation approved by the National Food Authority (NFA) Council in November will ensure that there will be no supply problems for the staple this year.
“There about 174 NGOs (non-government organizations) and farmers’ groups who have already applied for importation of around 1.2 million metric tons (MT). In other words, magkaroon ka man ng (even with) El Niño, there’s a good fallback position in terms of out-quota importation,” Mr. Guinigundo, who sits as alternate member of the inter-agency NFA Council, told reporters last week.
As of Jan. 10, the Philippine Atmospheric, Geophysical and Astronomical Services Administration was projecting a 65% chance of an El Niño to “form and continue” between March and May. The weather bureau is currently on an “El Niño watch.”
Data on the NFA Web site show applications from farmer cooperatives and private firms for a total of 1.186 million MT of rice under the out-quota scheme as of Jan. 18. The out-quota scheme allows rice imports beyond the minimum access volume imposed on rice, ahead of the expected signing into law of an impending shift to regular tariffs for the staple from the existing import quota. Removing restrictions on the private sector from bringing in rice is expected to slash retail prices of the stable by up to P7 per kilogram and headline inflation by as much as 0.85%.
Mr. Guinigundo added that roughly 400,000 MT of rice imports are expected to arrive in the country in time for the lean season that starts in July.
“If there is going to be an El Niño phenomenon that could happen any time during the year, this could be addressed by such mitigant as out-quota importation,” the BSP official said.
Last year’s inflation rate of 5.2%, which shot past the BSP’s 2-4% target band, was largely due to food supply constraints. Food prices went up by an average of 6.6% in 2018, faster than the headline pace.
To address this concern, Malacañang issued four administrative orders directing the NFA, the Sugar Regulatory Administration and the Department of Agriculture to lift non-tariff barriers and streamline import procedures for rice, sugar, meat and fish.
From a peak of 9.7% in September, food inflation — which fueled the headline figure to a nine-year-high 6.7% in September and October — has since slowed for four consecutive months to 4.4% in January.
The central bank expects the overall pace of price increases to ease further this year to average 3.1%, while monthly readings are seen to return to below four percent as early as March. January inflation clocked in at 4.4%, better than market expectations.
The slower overall pace of price increases allowed the BSP to keep policy rates steady in its December and February meetings, with some market analysts expecting cuts in the key rate or bank reserves later this year.

Big banks mark banner year of profits

BIG BANKS posted another banner year in 2018, with profits growing by a tenth at a time of higher borrowing costs and a weaker peso, latest central bank data showed.
Universal and commercial banks posted a cumulative P159.93-billion net income last year, according to preliminary data the Bangko Sentral ng Pilipinas (BSP) released on Friday, up 9.3% from the P146.33 billion booked in 2017 largely due to interest earnings.
Total operating income grew by 14.9% to P564.202 billion from P491.227 billion the past year.
Income from interest on loans and similar products surged by a fourth to P595.907 billion, partly offset by P162.88 billion in interest expenses.
This resulted in a net interest income of P431.782 billion, on the back of a 14.6% increase in loans. Outstanding credit stood at P9.018 trillion as end-December, versus P7.867 trillion in 2017.
Bigger borrowings came at a time of higher interest rates following the cumulative 175-basis-point increase in the key policy rate set by the BSP, which was meant to rein in surging inflation last year.
Non-interest income — drawn from dividends, fees and trading gains — went up 8.7% to P132.42 billion year-on-year. The increase was fueled partly by P38.558-billion trading income that was 6.9% more than the P36.053 billion a year ago. Income from fees and commissions grew by a tenth to P78.916 billion, while dividends steadied at P3.358 billion, data showed.
Non-interest expenses increased by 15.2% to P359.206 billion in 2018, largely as banks paid 27% more taxes and licensing fees at P37.508 billion. Fees and commission payments increased by 16.9% to P18.25 billion, while compensation and benefit packages for bank employees rose by a tenth to P124.759 billion.
There were 42 big banks operating in the Philippines as of end-September.
Across the entire Philippine banking system — which includes thrift, rural and cooperative banks — lenders made P178.835 billion, up 6.4% from the P168.075-billion profit in 2017.
Moody’s Investors Service kept its “stable” outlook for Philippine banks this year, noting that the sector will continue to enjoy a big capital base and upbeat loan growth despite rising borrowing costs.
Central bank officials also voiced confidence that local lenders will maintain their sound footing this year. — Melissa Luz T. Lopez

Senate panel to push higher tax on tobacco when session resumes

THE SENATE Ways and Means committee will submit for plenary action a measure to raise the excise tax on tobacco products when Congress resumes session in May, even if there will be little time left by then to ensure enactment.
“While there is no consensus yet on the final tax rate, there is an agreement in principle to increase the excise tax on tobacco products in order to raise funds for the universal healthcare bill and substantially reduce the smoking prevalence among the youth,” committee chair Senator Juan Edgardo M. Angara said in a press release on Friday. “The committee report will be sponsored and deliberated on the Senate floor upon resumption of the session in May.”
The 17th Congress, now on a Feb. 9-May 19 break, will have only between May 20 and June 7 to approve any bill.
Compared to the prevailing excise tax rate of P35 per pack, Senate Bill No. 1599 proposes P60, SB 2177 proposes P70 while SB 1605 sets it at P90. House Bill No. 8677, which bagged final-reading approval on Dec. 3, provided an increase to P37.50 per pack.
Mr. Angara said a draft report is being prepared on the measure, which will be circulated among committee members for signing. The draft also increases penalties for violations “to give more teeth to the law.”
Malacañang has said that President Rodrigo R. Duterte would certify the tobacco tax hike bill as an urgent measure, meaning it can be approved on second and then on final reading on the same day, and not days apart as otherwise required by rules.
The committee conducted three public hearings in which members heard the positions of the health sector, tobacco-growing provinces, tobacco companies, government agencies and other sectors affected by the proposal.
The Department of Finance and the Department of Health (DoH) are pushing for the passage of the bill to boost funding of the universal healthcare program, which they said has a P40-billion funding gap. Doctors were generally supportive of the bill, saying that the measure will prevent smoking especially among the youth and the poor.
However, stakeholders in the tobacco industry warned that imposing additional taxes on tobacco products would harm the livelihood of tobacco farmers and would encourage smuggling. — CAA

How does the Philippines compare in English Proficiency?

How does the Philippines compare in English Proficiency?

Conflict-affected Mindanao areas to get $202-M Japan aid for roads

DAVAO CITY — Japan, the Philippines’ biggest official development assistance (ODA) source, has committed a fresh $202-million fund for a road network project in conflict-affected areas in Mindanao as the two countries’ foreign ministers met on Sunday to discuss expanded bilateral tries.
“We reaffirmed the strength of our strategic partnership… From there we proceeded to examine our cooperation in defense, maritime security, infrastructure development, human resource development, health, disaster risk reduction and management, and people-to-people exchanges — in each case reaching understandings and making commitments to specific undertakings,” Philippine Foreign Affairs Secretary Teodoro L. Locsin, Jr. said in a joint press conference at the Marco Polo Hotel here.
Mr. Locsin said special focus was given to Mindanao, where a new Bangsamoro region — covering the poorest and most restive areas in the southern islands — is set to be formed with the recent ratification of the Bangsamoro Organic Law (BOL).
“Japan welcomes the ratification of the Bangsamoro Organic Law… Japan has been a consistent support of the Mindanao peace process for more than 10 years,” said Japanese Minister of Foreign Affairs Taro Kono, who also met Saturday with President Rodrigo R. Duterte here and was to inaugurate the upgraded Japanese Consulate General in Davao City Sunday evening as part of his three-day official visit.
Last week, ceremonial groundbreaking was held in war-torn Marawi City for the P970-million road rehabilitation projects under a Japanese government grant and a shelter and livelihood project supported by the Japanese government and the United Nations Human Settlements Programme.
“On a broader level, we agreed to sustain and further strengthen economic cooperation… Japan is the number one source of ODA, she is our largest investor, our second-biggest trading partner, and our fourth-largest tourism market,” Mr. Locsin noted.
“Our economic cooperation is mutual; we recognized the space that exists for the Philippines to contribute to Japan’s own ongoing economic revitalization. In this world of interconnected economies, Japanese participation in Philippine progress helps drive Japan’s growth.”
As of end-September 2018, loans and grants from the Japanese government reached $5.977 billion, accounting for 41.2% of the Philippines’ official ODA, according to the National Economic and Development Authority.
In terms of trade, Japan was third after the United States and Hong Kong in terms of export value at $8,789 billion, accounting for 14% of total foreign sales of Philippine goods in the 11 months to November.
Finance Secretary Carlos G. Dominguez III, meanwhile, announced that the 7th Philippine-Japan high-level meeting will be convened in Osaka “later this month.”
He noted that with the “‘Fast and Sure’ approach that this administration has adopted together with Prime Minister Shinzo Abe’s administration, we have processed loan approvals for majority of the infrastructure projects we are undertaking with Japan in just an average of three to four months.”
“This demonstrates our shared commitment to work closely to ensure that the Filipino people get to benefit from these projects at reasonable costs and at the soonest possible time,” Mr. Dominguez said before a separate bilateral meeting with Mr. Kono Saturday afternoon.
MARITIME SECURITY
Meanwhile, the two foreign ministers also stressed the renewed commitment to maritime security in the region.
“Our bilateral security cooperation is advancing well, including the transfer of defense equipment and the conducting of joint exercise. Today, we share the view that we resume Japan-Philippine political-military dialogue and the maritime dialogue,” Mr. Kono said.
“Japan will stay our steady partner in strengthening our defense capabilities as we modernize our armed forces and bolster maritime security in the region,” Mr. Locsin said.
“This particular area of cooperation does not exist in a vacuum; it takes place in the context, and under the intense pressures of the larger regional security situation.”

DA signals Palace may intervene to shield farmers from tariff bill

THE Department of Agriculture (DA) indicated that Malacañang will be open to changes to the rice tariffication bill that will benefit rice farmers in the country, Secretary Emmanuel F. Piñol said.
“[President Rodrigo R. Duterte] is willing to listen. I would assume that he is willing to consider some changes,” Mr. Piñol told reporters on Friday.
“The instruction given to me and to other departments is to collate the position of the farmers,” Mr. Piñol added.
The rice tariffication bill which removes the quantitative restrictions (QR) on rice importation is expected to lapse into law by Feb. 17 unless vetoed by the President. Rice farmer groups have expressed opposition to the bill, claiming that cheap imported rice will dominate the market, leaving the National Food Authority (NFA) the main market for domestic rice.
According to Mr. Piñol, Mr. Duterte told farmer groups to submit a one-page memorandum the parts of the bill that they object to.
“In a one page memo, say what you do not like. I will listen),” Mr. Piñol quoted Mr. Duterte as saying.
However, Mr. Piñol said: “It will be the President’s call. I don’t want to second-guess what the President will do,” Mr. Piñol said.
“What the DA is doing is calling the farmers and asking them what they really want. They have to make their points, then we will just refine them and submit them to the Office of the President,” Mr. Piñol said. — Reicelene Joy N. Ignacio

SMC Global Power plans to raise up to P30B from bond issue

SMC GLOBAL Power Holdings, Corp. plans to raise up to P30 billion from the issuance of bonds, which have been rated of the highest quality by a local debt watcher.
Philippine Rating Services Corp. (Philratings) said in a statement over the weekend that SMC Global Power’s proposed bond issuance of P25 billion, with an oversubscription option of up to P5 billion, has been assigned a PRS Aaa rating. This indicates that the bonds are of the highest quality with minimal credit risk.
“The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” according to Philratings.
The rating also carries a stable outlook, which means that it is unlikely to change in the next 12 months.
The issuance marks the first tranche of SMC Global Power’s P60-billion shelf registration with the Securities and Exchange Commission. The company currently has P50 billion worth of outstanding bonds, which also carry a PRS Aaa rating.
Philratings took into account SMC Global Power’s leading market position and plans for expansion, the strong support of its parent San Miguel Corp., the stability of its financials, as well as its position to take advantage of the growing demand for electricity in the country.
SMC Global Power has a combined capacity of 4,197 megawatts (MW) as of September 2018, sourced from a mix of natural gas, coal, and hydropower resources. The company’s capacity accounts for 19% of the National Grid’s power supply, and 25% of the Luzon Grid.
The company’s portfolio includes the 218 MW Angat Hydroelectric power plant in Bulacan, the 450MW greenfield power plant in Limay, Bataan, the 300 MW greenfield power plant in Malita, Davao Occidental, and the 684 MW Masinloc Power Generating Facility in Masinloc, Zambales.
SMC Global Power is also the independent power producer administrator (IPPA) for the Sual, Ilijan and San Roque power plants.
Apart from this, the firm also targets to start the commercial operations of Unit 4 of the Limay Greenfield Power Plant with 150 MW, and Unit 3 of the Masinloc Power Plant with 335 MW by the second quarter of the year. These facilities will bring SMC Global Power’s total attributable capacity to 4,682 MW.
Philratings also cited the vast network of parent company SMC, which could provide the potential captive demand given its electricity requirements.
On the other hand, the debt watcher noted that SMC Global Power has an ongoing dispute against Power Sector Assets and Liabilities Management Corp. through its unit South Premiere Power Corp. (SPPC) in relation to the Ilijan IPPA Agreement
“Amidst the ongoing dispute, SPPC continues to be the IPPA of the Ilijan Power Plant. PhilRatings shall continue to monitor developments in relation to this case and its subsequent resolution,” Philratings said. — Arra B. Francia

Israeli firm to submit P44-billion solar irrigation proposal

ISRAELI agro-industrial firm LR Group is set to submit a P44 billion proposal to the Philippine government this month to fund the deployment of 6,200 Solar-Powered Irrigation Systems (SPIS).
“Ilan Weiss, chairman of the Innovative Agro Industry Ltd., a subsidiary of the LR Group, said the construction of the SPIS will be funded by a long-term loan payable in 10 years to be guaranteed by the Philippine government,” Agriculture Secretary Emmanuel F. Piñol said in a Facebook post on Sunday.
“He said the formal offer, to be endorsed by the Israel Government through Ambassador Harpaz, will be submitted to the Department of Agriculture (DA) next week,” Mr. Piñol added.
Mr. Piñol said that according to LR Group, the Philippines could double farm production with the help of the solar-powered and “fertigation” technology, noting that the SPIS can cover about 500,000 hectares of rice and high value crops farms.
Fertigation refers to the injection of fertilizers into an irrigation system.
Among the crops being studies for SPS deployment are lowland rice, upland rice, sugarcane, corn, coffee, cacao, coconuts, and other fruit-bearing trees.
Mr. Piñol told reporters on Friday that he has brought up the proposal at a recent Cabinet meeting. — Reicelene Joy N. Ignacio

Cebu Pacific eyes more flights, new routes to Japan

NAGOYA — Cebu Pacific is keen on opening new routes to Japan this year, as the number of Filipino tourists to the country continues to grow.
Cebu Pacific Country Manager for Japan Tomohiko Matsumoto told reporters on Saturday the volume of Filipino visitors to Japan has been rapidly increasing, with an 70,000 to 80,000 annual visitor growth since 2014.
“Cebu Pacific is eyeing Japan as one of the key international markets,” Mr. Matsumoto said, noting the budget carrier’s total number of inbound and outbound passengers to Japan reached 1.1 million in 2018.
He said the airline is in talks to open new routes to other destinations such as Haneda, which services the greater Tokyo area, and Sapporo.
“Of course Sapporo is one of them. (In) Sapporo…aircraft capability is limited. Because until neo (Airbus A321 new engine option) is coming, we’ll not be able to fly from Manila to Sapporo directly because the flying hours is too long for the (Airbus A320) or 321ceo (current engine option)…The neo is just delivered last month, so that could (make it) physically possible to fly (to Sapporo),” Mr. Matsumoto said.
A flight from Manila to Sapporo takes over five hours.
Mr. Matsumoto said the new Airbus A321neo has about 50 seats more than their A320s, enabling them to carry more passengers without adding frequencies. The carrier expects to receive six A321neos this year.
“[W]e are eyeing increasing (frequencies of flights between the Philippines and Japan), but currently (in) Manila NAIA (Ninoy Aquino International Airport), the slots are very tight. Actually (what) we are doing (is) more (of an) aircraft upgrade,” Mr. Matsumoto said.
In the case of Haneda, he said the Philippine government has to conduct air talks with the Japanese government to expand the frequencies, as competing airlines currently take up all available frequencies.
“[T]hat has to be negotiated by government-to-government. It’s a traffic right issue right now. So our head office has to lobby the Philippine government to have a negotiation with the Japanese government to have the rights. But we of course like to, because Haneda is most convenient,” Mr. Matsumoto said.
Haneda is one of two primary airports serving the Tokyo area, after Narita. Haneda International Airport is closer to central Tokyo, compared to Narita.
At present, Cebu Pacific offers flights from the Philippines to Osaka, Narita, Nagoya and Fukuoka in Japan. — Denise A. Valdez

Women of style and substance

THE LIFE of actress Audrey Hepburn wasn’t as perfect as her movies would suggest. Growing up as the daughter of a divorced and impoverished Dutch noble, Ms. Hepburn lived through the ravages of the Second World War, facing a fate of near-starvation during the Dutch famine of 1944. During the latter part of her life and her career as a successful actress, Ms. Hepburn joined UNICEF (the United Nations International Children’s Emergency Fund) in the 1980s as a Goodwill Ambassador. According to the UNICEF website, Ms. Hepburn had said on her appointment, “I can testify to what UNICEF means to children, because I was among those who received food and medical relief right after World War II. She continues, “I have a long-lasting gratitude and trust for what UNICEF does.” She was also known to have said, “There is a moral obligation that those who have should give to those who don’t.”
Two Filipina celebrities have been tasked by UNICEF to continue these good works via their appointment as UNICEF National Goodwill Ambassadors. Media personality and entrepreneur Daphne Oseña Paez and actress Anne Curtis have been elevated to the position, but have both been involved with UNICEF since at least 2010. Both women will join singer Gary Valenciano, also a UNICEF Natonal Goodwill Ambassador, since 1998. Worldwide, they will also join the likes of David Beckham, Shakira, and Priyanka Chopra.
Lotta Sylwander, UNICEF Philippines Representative, said on Feb. 7 in a press conference at Novotel in Quezon City that, “They have really shown the passion and interest, and they have contributed a lot over these last years.”
UNICEF in the Philippines was established in 1948, while UNICEF was founded in 1946.
Ms. Sylwander outlined the profile of a potential Goodwill Ambassador: “They are usually eminent, well-known personalities, and who have an interest, willingness and passion to work for children, [and] to use their celebrity power and charisma.”
Ms. Oseña Paez and Ms. Curtis have both served as Special Advocate and Celebrity Advocate for Children. Ms. Oseña Paez began her work for UNICEF in 2010, with a focus on breastfeeding, and maternal health and mortality; among other causes. One of her flagship projects is Auction for Action, an art auction that raises funds for the organization. In addition to that, she has also made visits to several areas in the Philippines to meet the children and mothers supported by her causes. In an interview with BusinessWorld, she said that she has since expanded her scope to child protection, namely, violence against children, and children in conflict with the law. A timely appointment, considering the actions of the House of Representatives to lower the criminal age of liability first to nine, and then to 12, after much outcry.
Meanwhile, Ms. Curtis has been a donor in her individual interests since 2009. In her work with UNICEF since 2014, she has been supporting the organization’s First 1000 Days program that focuses on nutrition and early brain development for children. She has also visited crisis areas such as Leyte after the destruction wrought by Typhoon Haiyan.
Ms. Oseña Paez said of her involvement with UNICEF, “It sounds kind of cheesy, but I’ve always wanted to make a difference. In everything I did — even before I joined the media. I think one of the biggest investments anyone can make is through children. It’s the foundation of any society.”

Daphne Oseña Paez
Daphne Oseña Paez talks to a mother in a temporary shelter after Ondoy in 2010. — UNICEF FLICKR PAGE

Ms. Curtis, for her part, said, “It’s just innate. I think, for any adult, or for any human being, if you see a young child fall, your initial reaction is to help that child.
“It’s just that with UNICEF, there are bigger issues to deal with.”
While it has been fashionable in recent years to be charitable — thanks in large part to glamorous humanitarians like the late Diana, Princess of Wales, and actress Angelina Jolie — there is still surprise in the grit that wears away the glamor. Sure, society women devote a measure of their time to a few causes and such, due perhaps to a sense of noblesse oblige, but it takes a certain kind of person to actually mess around in the heat and the dirt in the places where UNICEF’s aid is most needed.
“There’s a lot of information now that you can read about, but I think one of the best ways to learn about issues is to go on the field,” said former reporter Ms. Oseña Paez.
These women have style, certainly, but in the sense of purpose in their work for UNICEF, there is substance to be found, surely. Speaking about style and substance — and kindness, now that we’re here, Ms. Curtis says, “You shouldn’t have to associate it with having beauty from within. That’s our responsibility as human beings: you really want to care about other people.”
Ms. Oseña Paez, meanwhile, said, “Beauty is not our currency. Beauty is fading; it doesn’t last. External beauty can easily be attained if you have the money and the time to invest. True beauty is in your heart: it’s intangible, and it starts with good thoughts, good values, and your language.”
To contact UNICEF for donor concerns and the like, visit the website at www.unicef.org/philippines/, or call 758-1000. — Joseph L. Garcia

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