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Estrella-Pantaleon bridge closure reset to Jan. 19

THE Metropolitan Manila Development Authority (MMDA) announced that the Estrella-Pantaleon Bridge which links Makati City and Mandaluyong City will be closed starting on Jan. 19 for three years of reconstruction.
The bridge was initially scheduled to close on Jan. 12. Prior to that, the bridge was closed for two days on September last year, but it was reopened for the Yuletide season upon the request of the MMDA.
The Department of Public Works and Highways (DPWH) will spearhead the reconstruction of the bridge.
MMDA General Manager Jose Arturo S. Garcia, Jr. said that it will be a total replacement. The new bridge will be made to handle more vehicles that traverse between Makati and Mandaluyong.
“Total replacement ang gagawin (It will be a total replacement)… This bridge is only two way, kaso ’yung capacity niya hindi na kaya ’yung 35,000 na dumadaan in an average [day] (it does not have the capacity to handle the average of 35,000 vehicles that pass through it a day). It’s not just the safety, it is about widening it to cater [to] more [vehicles],” said Mr. Garcia in a press briefing on Friday, Jan. 11.
Mr. Garcia said that from its current two lanes, the bridge will have four lanes and sidewalks after the reconstruction.
Aside from the volume of the vehicles that pass through the bridge, the MMDA also cited safety concerns about the bridge, citing the need to prepare for a possible high-magnitude earthquake in the future.
“’Yung Philvolcs, nagkaroon tayo ng study diyan. Matibay siya, pero hindi siya designed for a highly urbanized area,” said Mr. Garcia. (The Philvolcs [Philippine Institute of Volcanology and Seismology] had a study about the bridge. It is sturdy but it is not designed for a highly urbanized area.)
He added, “They really need to widen it at patibayan rin. Alam naman natin yung natural disasters hindi natin alam kung kailan darating ’yan.” (They really need to widen it and strengthen it. We all know that natural disasters are unpredictable.)
With the closure, motorists’ travel time between the cities could increase to 30 minutes to an hour, from the usual 10-minute drive when using the bridge.
Mr. Garcia said the replacement of the bridge, also known as Rockwell Bridge, will take 30 months.
The reconstruction of the bridge is part of the government’s flagship “Build, Build, Build” infrastructure project and is funded by the Chinese government with a budget of P1.47 billion.
The Estrella-Pantaleon bridge will be closed starting at 4 a.m. on Jan. 19.
On Monday, Jan. 14, the MMDA will start road clearing operations along the alternate routes which are as follows:
• All vehicles coming from the Cities of Mandaluyong, San Juan ,and Quezon City using the Mabuhay Lane (Sgt. Bumatay and Barangka Drive) must take right at Pantaleon, then Coronado, then take the Makati-Mandaluyong Bridge to their destination.
• Vehicles coming from Maysilo and San Francisco should go straight ahead to Coronado and the Makati-Mandaluyong Bridge to their destination.
• Other vehicles coming from Mandaluyong going to the Makati Business Center via EDSA can turn at the Guadalupe Cloverleaf to J.P. Rizal Ave. Extension, then turn left at Estrella towards their destination.
• All exiting vehicles from TIVOLI Garden Residences shall use the back gate located at the private road (Sen. N. Gonzales Road).
• All vehicles coming from Makati Ave. should take P. Burgos (which will be made a one way street), straight to the Makati-Mandaluyong Bridge, then Coronado, then San Francisco, then they can take the Mabuhay Lane to their destination.
• Vehicles coming from Rockwell can take Estrella then turn right at Gumamela St., then left at Camia St. to J.P. Rizal, then on to their destination.
• Public utility jeeps (PUJ) and tricycles shall be diverted to the Private Road (Sen. N. Gonzales Road) and vice versa. — Vince Angelo C. Ferreras

PNP, AFP ordered to secure the BOL plebiscite, elections

PRESIDENT Rodrigo R. Duterte has called on the Philippine National Police (PNP) and the Armed Forces of the Philippines (AFP) to secure the upcoming plebiscite to ratify the Bangsamoro Organic Law (BOL) and the National and Local Elections (NLE).
The president issued Memorandum Order (MO) 34 on Dec. 28, 2018, which states that the Commission on Elections (Comelec) will deputize the PNP, AFP, and other law enforcement agencies to ensure that the BOL plebiscite on Jan. 21 will be peaceful and orderly.
Also issued on the same day was MO 35 on the deputation by the Comelec of the PNP, AFP, and other law enforcement agencies for the midterm elections on May 13.
The two Memorandum Orders were only made public on Friday, Jan. 11.
Section 2 of Article 9-C of the 1987 Constitution states that the Comelec will “deputize, with the concurrence of the President, law enforcement agencies and instrumentalities of the Government, including the Armed Forces of the Philippines, for the exclusive purpose of ensuring free, orderly, honest, peaceful, and credible elections.”
On Dec. 28, the Comelec signed a Memorandum of Agreement (MoA) with the AFP and PNP before members of the media for the three agencies to work together in ensuring the safe implementation of the BOL plebiscite and NLE.
Comelec Spokesperson James B. Jimenez told reporters on Friday that the commission’s authority to deputize the law enforcement departments and agencies “is standard practice.”
He added that for the midterm elections, “We can provide training for them (the law enforcement departments and agencies) so that on election day, makakapagadminsiter sila ng (they can administer their) presence sa iba’t ibang (in different) polling places.”
Regarding the BOL, the Comelec announced the final list of petitioner-local government units (LGUs) that will take part in the plebiscite. The BOL states that areas that are contiguous have the option to join the new Bangsamoro region.
The plebiscite for the approved contingent areas of the Bangsamoro region will be on Feb. 6. — Gillian M. Cortez

Gov’t gaining grounds vs Reds — DILG

THE government is gaining ground against the communist insurgency as the number of rebels continues to decline, said Department of Interior and Local Government Secretary Eduardo M. Año.
Saying that 8,367 rebels surrendered to the government between July 1 and Dec. 28, 2018, Mr. Año said the communist movement is currently in a sharp decline. Many of the former rebels were granted benefits under the Enhanced Comprehensive Local Integration Program (E-CLIP).
“Lives are being changed by the E-CLIP program,” he said in a statement released on Friday, Jan. 11. “With more than a thousand former rebels who have received financial assistance last year, we hope that their testimonies will serve as an encouragement for more communist rebels to surrender.”
Of the 8,367, he said 1,207 were armed members of the New People’s Army (NPA) while the rest were with the Militia ng Bayan, the Sangay ng Partido sa Lokal, and underground mass activists.
The Interior secretary said that communist leader Jose Maria C. Sison cannot accept the decline of communist rebels.
“We must remember that Joma [Mr. Sison’s nickname] is a master-propagandist. He will twist facts to suit his own reality. Hindi niya kasi matanggap na nagtatagumpay ang programa ng gobyerno para sa mga rebelde at maraming rebelde na ang gustong magbagong-buhay (He cannot accept that the government’s program for rebels is succeeding and that there are many rebels who want to change their lives),” said Mr. Año.
He added, “To arrest the decline of the Communist movement, Joma and his minions has been clamoring for the resumption of the Oslo peace talks. That’s the best way to stop the hemorrhage. They were already given their chance and blew it, the train has left the station.”
Meanwhile, Mr. Sison said the communist party will remain steadfast despite attacks by government forces.
“In the test of strength in the battlefield, the revolutionary movement hopes and strives to win victories all the way to the overthrow of the Duterte regime and it is up to Duterte offer peace negotiations for addressing the roots of the armed conflict with comprehensive agreements on social, economic, and political reforms,” said Mr. Sison in a statement released on Friday.
He added, “In the meantime, the NPA has no choice but to intensify the armed struggle even as the NDFP (the National Democratic Front of the Philippines) keeps the door open to peace negotiations.”
Recently, Defense Secretary Delfin N. Lorenzana said that the government is aiming to put an end to the communist insurgency in the last three years of President Rodrigo R. Duterte’ term in office. — Vince Angelo C. Ferreras

Anti-Corruption Commission gets anti-red tape recommendatory powers

PRESIDENT Rodrigo R. Duterte has signed an executive order mandating the Presidential Anti-Corruption Commission (PACC) to recommend complaints of violations of the Anti-Red Tape Act to the Anti-Red Tape Authority (ARTA).
Released on Friday, Jan. 11, Executive Order (EO) No. 73, as signed by the President on Dec. 28 last year, amends EO No. 43 (series of 2017) that created the commission. EO No. 73 adds more items to Section 5 of EO. No. 43 on Jurisdiction, Powers, and Functions.
EO No. 73 states that the PACC shall “(r)ecommend to the Anti-Red Tape Authority, for investigation, violations of Republic Act No. 9485, otherwise known as the Anti-Red Tape Act of 2007, as amended, and its Implementing Rules and Regulations.
“After due investigation, recommend to the President the filing of appropriate criminal complaints before the Office of the Ombudsman or the Department of Justice, or otherwise refer such cases for appropriate action to these Officers.”
It also said that the PACC “shall perform such other functions or duties as may be assigned by the President.”
The EO added that “nothing shall prevent the President, in the interest of the service, from directly investigating and/or hearing an administrative case against any presidential appointee or authorizing other offices under the office of the President to do the same, as well as from assuming jurisdiction at any stage of the proceedings over cases being investigated by the commission.”
Sought for comment, PACC Commissioner and spokesperson Greco Antonious Beda B. Belgica told BusinessWorld in a phone message that “PACC only assists the President and recommends possible action. Red Tape cases, we can recommend to the President or ARTA.”
In an interview with BusinessWorld last December, PACC Chairman Dante L. Jimenez said that that his commission was preparing to ask Mr. Duterte to grant the agency prosecutorial powers and expand its jurisdiction.
Alongside the expansion of powers and jurisdiction, Mr. Jimenez said the commission’s manpower should also be increased as well as be provided with its own budget. — Arjay L. Balinbin

President Duterte appoints Ramos-Samaniego as BoI governor

PRESIDENT Rodrigo R. Duterte has appointed Board of Investments (BoI) Management Service Group OIC-Executive Director Marjorie O. Ramos-Samaniego as BoI governor.
Ms. Ramos-Samaniego is replacing Henry T. Co whose term expired on Sept. 17 last year.
“Pursuant to the provisions of existing laws, you are hereby appointed Governor, Board of Investments, Department of Trade and Industry, for a term of four years, vice Henry T. Co,” her appointment paper reads as signed by Mr. Duterte on Jan. 9.
The BoI, which is an attached agency of the Department of Trade and Industry (DTI), is mandated to promote investments in the country.
The Board is composed of seven governors as indicated in the Executive Order No. 226 or the Omnibus Investments Code of 1987 signed by President Corazon C. Aquino.
Also appointed on Jan. 9 were officials to the National Commission on Muslim Filipinos (NCMF) and Housing and Land Use Regulatory Board (HLURB).
Mr. Duterte appointed Lominog M. Lao as Director IV of the NCMF.
Marylin M. Pintor will serve a term of six years as commissioner of the HLURB. She is replacing Luis A. Paredes. — Arjay L. Balinbin

Salary increase for gov’t workers seen by February

By Melissa Luz T. Lopez, Senior Reporter
GOVERNMENT WORKERS can expect to receive higher salaries next month as the 2019 budget is expected to be signed into law, the country’s Budget chief said, adding that succeeding pay hikes will be revealed later this year.
Budget Secretary Benjamin E. Diokno said on Friday that the fourth tranche of salary increases for state workers and officials is slated to be in effect by next month, just as Congress is expected to finalize and have the P3.575-trillion national budget signed by President Rodrigo R. Duterte in the “first week of February.”
This represents the final tranche of the salary standardization law (SSL), which provides for salary increases for all government employees which started in 2016.
Mr. Diokno has clarified that workers will be entitled to a salary differential to cover the delayed implementation of the pay hike which should have taken effect Jan. 1.
The Department of Budget and Management (DBM) has also announced that work on a fresh SSL proposal has started, committing to higher salaries for state workers from 2020 to 2022.
The Governance Commission for GOCCs will soon tap an independent firm to study the wage structure of government workers versus their private sector counterparts, which will then be used in crafting the next wave of salary increases.
The GCG, however, cannot close the deal yet as funding for this study is under the 2019 budget bill.
“Results from the study are expected to be delivered by the independent firm before end of June this year. Consequently, the DBM will come out with a proposed salary schedule by the 3rd quarter of 2019,” the DBM said in a statement.
SUPPLIER PAYMENTS
In another development, the agency also released new rules to simplify the payment process done by government offices.
DBM Circular Letter 2018-14 requires suppliers or contractors without bank accounts in government servicing banks (GSBs) to coordinate the payment transfers using electronic clearing houses made available across lenders.
As a rule, all national government agencies (NGAs) do their transactions via the state-run Land Bank of the Philippines and the Development Bank of the Philippines.
“The suppliers/creditors as remitter shall shoulder the cost of transferring payment from the NGAs GSB to other GSB and NGA’s GSB to other non-GSBs,” the DBM issuance read, which took effect Jan. 2.
These transactions can either go through the InstaPay platform, which facilitates real-time interbank transfers worth P50,000 and below, or the Philippine Electronic Fund Transfer System and Operations Network, which are digital clearing houses involving local banks.
However, those who cannot tap these platforms may still collect payments through checks or cash. This option is limited to small-value payees with claims less than P10,000, those with one-time transactions with the state, or those with existing accounts.
These fall under the DBM’s Modified Direct Payment Scheme, which is also meant to improve cash management for the Bureau of the Treasury who reported P22.7 billion in unclaimed checks as of end-June last year.

PSALM bids out MTPP property in Manila

THE Power Sector Assets and Liabilities Management Corp. (PSALM) is once again bidding out the property of Manila Thermal Power Plant (MTPP) located along the Pasig River in Isla de Provisor, Paco Manila.
“Under the COA and DBM Disposal Guidelines & the PSALM Policies, the Disposal Committee may dispose a property through a process of Negotiation in cases of failure of second bidding. Thus, PSALM referred the matter to its Board of Directors, and PSALM’s Board resolved to approve the disposal of the MTPP Land thru Negotiated Sale Process on 03 December 2018,” Irene Joy B. Garcia, president and chief executive officer of PSALM explained in a text message to BusinessWorld.
In a statement on Jan. 11, the firm said the minimum offer price of the 20,975-square meter land is at P736.368 million. This property was previously a power plant that was the source of electricity for Luzon grid consumers until 2009. The said property was already bid out two times last year and was previously valued at P886 million, but these auctions failed because no bids were submitted.
“The sale of the Manila Thermal Power Plant’s Land underwent first round of bidding on 15 August 2018 which failed due to the non-submission of bids from any interested bidders. The second round of bidding was later scheduled on 23 November 2018. Said bidding likewise failed because no bidder purchased the bid documents,” Ms. Garcia noted.
Expressions of interest and acceptance of the negotiation procedures need to be submitted to the PSALM Privatization, Bids and Awards Committee from Jan. 10-23.
Deadline of submission of offers is on Jan. 31, 12 p.m. at the PSALM Office, 24th Floor Vertis North Corporate Center 1, North Avenue, Quezon City. — VMPG

Thailand appeals WTO ruling over cigarette imports

THE World Trade Organization (WTO) said on Friday Thailand is appealing the decision by a dispute panel that determined the country failed to comply with the WTO ruling against its regulations on cigarette imports.
In a statement on Friday, the WTO said Thailand’s appeal filed on Wednesday pertained to the case brought by the Philippines before the Geneva-based organization, specifically “Thailand — Customs and Fiscal Measures on Cigarettes from the Philippines (Article 21.5 — Philippines).”
“Thailand filed an appeal on 9 January concerning the WTO compliance panel report in the case brought by the Philippines…. Further information will be available within the next few days…,” it said.
The appeal will be reviewed by three members of a WTO appellate body, which needs to be comprised of individuals not affiliated with any government.
“Each member of the Appellate Body is appointed for a fixed term. Generally, the Appellate Body has up to 3 months to conclude its report,” the WTO said.
On Nov. 12, 2018, the compliance panel report, which found Thailand unable to follow recommendations on cigarette imports, was distributed to WTO members.
Both the Philippines and Thailand were given the chance to appeal the ruling, given that it is based on law and would not require the reopening of factual findings that have already been reviewed by the WTO dispute panel.
The Philippines first raised concerns on the fiscal and customs policies of Thailand on importing cigarettes in February 2008. The case was decided by the WTO in favor of the Philippines in 2010.
But in 2013, the Philippines complained Thailand’s failure to comply with the recommendations of the WTO, which Thailand said in 2014 it already accomplished. The issue was elevated to the WTO dispute panel, which eventually found Thailand did not comply with the ruling. — Denise A. Valdez

Dennis Uy-led firm, CNOOC get go-signal for LNG terminal

By Arra B. Francia, Reporter
PHOENIX Petroleum Philippines, Inc. looks to break ground for its liquefied natural gas (LNG) facility with partner China National Offshore Oil Corp. (CNOOC) this year, after securing the energy department’s go-signal.
In a statement issued Friday, Phoenix Petroleum said Tanglawan Philippine LNG Inc., its joint venture firm with CNOOC, has been granted the notice to proceed by the Department of Energy (DOE) to build an LNG terminal in Batangas.
With the approval, Tanglawan will start construction for the regasification and receiving terminal with a capacity of 2.2 metric tonnes per annum (mtpa). Commercial operations are set to start in 2023.
Tanglawan also targets to develop a gas-fired power generation facility with an installed capacity of up to 2,000 megawatts in the long term. The facility seeks to support the demand for a clean, low-cost, and environment-friendly energy source in Luzon.
CNOOC and Phoenix Petroleum partnered for the project last year after the DOE issued a circular on the Philippines Downstream Natural Gas Regulation in 2017. This outlined the rules governing the downstream natural gas industry.
Tanglawan is also in the middle of negotiations with CNOOC Gas and Power Group Co., Ltd., China’s largest LNG importer and terminal operator, alongside Phoenix Petroleum for a possible joint venture.
Other companies that have proposed to develop an LNG terminal include First Gen Corp and its Japanese partner Tokyo Gas Co., Ltd., Australia’s Energy World Corp. Ltd. (EWC), and US-based firm Excelerate Energy L.P.
EWC was the first to secure the DOE’s go-signal last Jan. 2, allowing it to start construction for an LNG import terminal and regasification facility on Pagbilao Grande island in Quezon province.
The DOE had earlier accepted letters of intent from 18 firms for LNG project, namely Cleanway Energy Development, First Gen Corp., Tokyo Gas Co. Ltd., CGN New Energy Holdings Co. Ltd., Philippine National Oil Co., VIRES Energy Corp., DeEnergy International Corp., SK E&S Co. Ltd., Carmine Energy Pte. Ltd., Transformation Llc., Limay LNG Power Corp., Kepco E&C, Atlantic Gulf & Pacific Co., Osaka Gas Co. Ltd., Lloyds Energy, PhiLNG Ltd. and BKB Consortium.
The deparment has encouraged firms to build an LNG facility as it expects the depletion of the Malampaya gas to start by 2024.

Generic drugmakers seen to benefit from UHC law

HEALTHCARE providers and generic drugmakers are seen to benefit from the passage of the universal health coverage (UHC) bill in the country, as more Filipinos will now have better access to health services.
This is according to an industry trend analysis report by Fitch Solutions, which highlighted that the healthcare bill approved by the Senate in October last year brings the country a step closer to implementing universal healthcare coverage.
“Broadly, such schemes reduce out-of-pocket spending and correspondingly drive higher utilization of medical services — and hence pharmaceutical consumption in the region,” according to Fitch Solutions.
The Universal Health Coverage bill, which was approved by the bicameral conference committee last November, seeks to enroll all citizens under the National Health Insurance Program as either direct or indirect contributors. This means that low-income earners, pensioners, or those on welfare will be paid for by the government, while those with the capacity to pay should pay premiums in exchange for more benefits.
The bill will also create a Health Technology Assessment Council, which will be tasked to craft recommendations for policies and programs, and to determine the Philippine Health Insurance Corporation benefit packages.
“Although the government is set to play a greater role in the health sector as part of the universal healthcare programme, the expansion of coverage and services is also expected to open the door for increased private sector participation,” Fitch Solutions said.
For instance, manufacturers of generic drugs are likely to benefit further from the passage of the bill, since it will require drug outlets to carry the generic version of all drugs in the Primary Care Formulatory at all times.
The government already requires all public hospitals to prescribe generic versions of medicine to their patients, through the Generics Act of 1988. Generic medicines are typically 50-70% lower than their branded counterparts.
With this, Fitch Solutions projects that generic medicine will expand its market share in the coming years, with generic drug sales estimated at P97.3 billion by 2022. This indicates a compounded annual growth rate of 5.7% from the 2017 figure of P73.7 billion, or a total market share of 45.44%.
Challenges to providing healthcare services to all Filipinos however will still be met with uncertainties, according to Rajan Kumar, the general manager of global healthcare firm Novo Nordisk’s local unit.
Fitch Solutions reported Mr. Kumar as saying that factors such as lack of human resources, poor patient access to clinics and hospitals, as well as limited insurance coverage will hold back the healthcare sector’s growth. — Arra B. Francia

AirAsia to open new routes from Kalibo to China

PHILIPPINES AirAsia, Inc. is launching new routes from the Boracay gateway that will link to three destinations in China: Chengdu, Kunming and Macau.
In a statement on Friday, AirAsia announced it will start flying from Kalibo International Airport to Chengdu on Jan. 24, to Kunming on Jan. 25, and to Macau on Mar. 2.
The Kalibo-Chengdu route will have four weekly flights, Kalibo-Kunming route with three weekly flights, and Kalibo-Macau route with three weekly flights.
Aside from the three, AirAsia had earlier said it will start serving the Kalibo-Hangzhou route on Jan. 18.
“China is an important market for leisure and tourism and we are excited to bring them back to Boracay. Direct flights will provide ease and comfort for Chinese tourists while giving local tourism industry a necessary boost after the rehabilitation works that closed the island to all tourists for six months last year,” AirAsia Philippines Chief Executive Officer Dexter M. Comendador said in the statement.
AirAsia flies to Chinese destinations namely Macau, Hong Kong, Shanghai, Shenzhen, Guangzhou and Hangzhou from its hubs in Manila, Cebu and Kalibo. — Denise A. Valdez

Peso rallies to new eight-month high

By Melissa Luz T. Lopez, Senior Reporter
THE PESO sustained its rally on Friday to log its best showing in eight months, riding on a weaker dollar due to dovish comments from the US Federal Reserve.
The peso closed the week at P52.14 against the greenback, up 8.5 centavos from its Thursday finish of P52.225. The local unit initially traded weaker, opening the session at P52.28 versus the dollar. It even hit an intraday trough of P52.32 before ending at its best showing for the day.
This is the best showing of the peso since May 10, when it closed at P51.80 to the dollar.
Two traders interviewed by phone said the peso is tracking a regional pickup against the dollar, buoyed by risk-on sentiment among market players in favor of emerging market currencies.
“I think it’s still broad dollar weakness,” one trader said, noting that the investors are “pricing in the dovish Fed.”
Fed Chair Jerome H. Powell said on Thursday that the US central bank can afford to “be patient” on its path towards higher interest rates, adding that policy makers are not looking at a “pre-set path” for key rates for 2019.
Reuters reported that market watchers took this as another hint that the Fed may pause with its tightening cycle, following four rate increases fired off last year.
This has fueled investors to take on a “risk-on sentiment” as they search for better yields outside the US economy, another peso trader said.
“The market is skewed on the downside for the dollar, so we are seeing dollar-peso continue to move lower,” the second trader added, noting that all eyes are on the US inflation data which are due Friday night.
“The momentum is still positive for the peso,” he also said.
The peso has been appreciating versus the greenback since Tuesday, with the momentum sustained largely due to better-than-expected external trade data published by the Philippine Statistics Authority.
The country’s trade deficit narrowed to $3.9 billion in November as imports grew at a slower pace, despite a sustained exports slump. This improved from the record $4.08-billion trade gap recorded in October.