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Gov’t moving to allow work to resume at gas field in disputed waters

THE DEPARTMENT of ENERGY (DoE) is recommending to the Department of Foreign Affairs (DFA) the end of the suspension of exploration in a disputed South China Sea area covered by Service Contract (72), after PXP Energy Corp. — the company with the biggest stake in the project — submitted its request to pursue its work program, Energy officials said on Thursday.
Asked by reporters if the DoE has acted on PXP’s request, Ismael U. Ocampo, assistant director of the DoE’s Energy Resource Development Bureau, told reporters “Alam ko na i-forward na,” explaining that “kailangan dadaan… sa DFA” (As far as I know the DoE has forwarded PXP’s request to the DFA).
Asked separately what prompted the DoE to endorse to the DFA the lifting of the suspension on gas exploration in the disputed waters, Undersecretary Felix William B. Fuentebella said: “We have to explore some more.”
SC 72 is covered by the decision handed down by the Permanent Court of Arbitration in The Hague, the Netherlands on July 12, 2016. Reed Bank or Recto Bank, where SC 72 is located, lies within the Philippines’ exclusive economic zone as defined under United Nations Convention on the Law of the Sea. The arbitration court struck down Beijing’s vague historical basis for preventing the Philippines from exploring for and exploiting resources in that area of the South China Sea.
On March 2, 2015, the government placed SC 72 under force majeure because the contract area lies within the disputed area, which was the subject of arbitration. Under that status, exploration work at SC 72 is suspended from Dec. 15, 2014 until the government lifts such suspension.
On Dec. 21, 2018, Forum (GSEC 101) Ltd., or Forum GSEC, sent a letter of request to the DoE for the government to end suspension of work in the area.
Forum Energy Ltd., in which PXP Energy holds a 78.98% direct and indirect interest, has a 70% interest in SC 72 located northwest of Palawan, through its wholly owned subsidiary Forum GSEC.
PXP Energy has a total economic interest of 53.1% in SC 72.
Mr. Fuentebella said that the DoE’s “explore, explore, explore” campaign is necessary since the country lags behind its neighbors in terms of number of exploration projects.
“… [S]a Philippines, we have only five (exploration projects),” he said.
“We are number one in energy sustainability, but in the other factors — in access [to energy] and affordability — hindi mataas ang ranking natin (our ranking is not high).”
In terms of energy security, which he said factors in use of indigenous energy sources and reliance on imported fuel, the country has not been faring well either.
Mr. Fuentebella said these are among the reasons why the country needs to pursue more exploration projects. — Victor V. Saulon

Kidlat Tahimik: the technocrat and his duende

By Menchu Aquino Sarmiento

At age 76, Kidlat Tahimik (aka Eric De Guia) is among the younger National Artists, and happens to be the only one alive for Cinema. Further, among this tiny elect group, he is the only Wharton MBA holder, with a c.v. which includes a stint as a researcher for the Organization for Economic Cooperation and Development (OECD). This was before he symbolically tore up his Wharton diploma (he didn’t totally trash it though), and followed his bliss as an artist. Or as he has stated elsewhere, he let his duende come through. This duende is not the squeaky voiced gnome of lower Philippine mythology, but the inner demon or the spirit of genius which inspires and animates true artistry. See the Spanish writer Federico Garcia Lorca’s “Theory and Play of the Duende.” As Kidlat Tahimik declared in his film Mababangong Bangungot (Perfumed Nightmare) which is essentially his artist’s manifesto: “When the typhoon blows off the cocoon, the butterfly embraces the sun.”
During De Guia’s transition to Kidlat Tahimik (K.T.) some 40 years ago, he grew his hair long, the better to style this into an Igorot bowl cut. He has since grown this out into silvery shaman tresses. During formal occasions, he dons the Ifugao bahag (loin cloth), effectively mooning other dignitaries. Since he is not an I.P. (indigenous person), he has been accused of cultural misappropriation and, even, of slumming it. Patrick Campos of the UP Film Institute believes though, that since De Guia has lived among the Ifugao for significant lengths of time in the last three decades, he has organically connected his work to his life. He also started the Sunflower Film Collective in his adopted Ifugao community. During the scant hours when there is electricity, they edit films on a Macbook.
As K.T. the protagonist jeepney driver in his seminal film, Mababangong Bangungot, who dreams of crossing the bridge out of his pretend hometown Balian, Laguna, declares: “I choose my vehicle; I choose my bridge.” Crossing the bridge is a metaphor for the way to a better world. In the film, an American businessman becomes K.T.’s way out: as an OFW, he drives around Paris in his Sarao jeepney, refilling the American’s Chiclet vending machines.
With his unique coiffure and vehicle, the cinematic K.T. wonders: “Why is everybody staring at me? I feel I am becoming smaller. I am Kidlat Tahimik. I am not as small as you think. Nothing can stop me from crossing my bridge.” For sure, because by Philippine standards, De Guia is one of the big people, and alien to the social class who rides the jeep. His mother Virginia “Gene” Oteyza De Guia was the only female mayor of Baguio City. Before she died, the De Guia family donated 95-hectares in Sto. Tomas, Apugan-Loakan to the Baguio LGU for its environmental management programs.
Mababangong Bangungot won multiple awards in the Berlin Film Fest, around the time that Lino Brocka was making waves in Europe. A Brocka champion in France has refused to recognize De Guia’s film as “Filipino.” Its tongue-in-cheek whimsicality, and light-hearted political commentary about the yawning gap between the secular First World with its “floors that walk for you” (the airport walkalator) and “doors which open for you,” and the charmingly backward and traditional Third World full of talking religious images, lively flagellants, unsanitary circumcision rites, ridiculous beauty pageants, and laughably ignorant science, are seen from the amused perspective of the educated, Westernized observer. The pioneering Philippine cinema archivist Agustin “Hammy” Sotto saw elements of exoticization, e.g., villagers cradling an unlikely menagerie of farm animals on their laps as they crowd onto K.T.’s jeep; a young woman and K.T. simultaneously and openly urinating on the ground, on either side of his jeep.
Nonetheless within the tacit superiority of De Guia’s point of view, there is a sweetness and sincere concern for these Third World curiosities. When he reflects that one less vendor in the traditional market, means one more parking space, one senses the conflict within the Wharton MBA who gave up the dogma of neoliberalism for the whispered lessons “on the quiet strength of bamboo,” which the Yoda-like craftsman Kaya promised he would one day understand. K.T. realizes that Kaya’s art is doomed to extinction, because “one cannot build rocket ships from bamboo,” and despite himself, building rocket ships is what K.T. wants to do. In Mababangong Bangungot, he is the president of the Wehrner Von Braun Fan Club. Towards the end, he resigns, declaring independence from those “who would build bridges to the stars.”
However, in the 1982 follow-up Sinong Lumikha ng Yoyo? Sinong Lumikha ng Moon Buggy? (Who Invented the Yoyo? Who Invented the Moon Buggy?), K.T. shoots for the moon. He is the president of the Yodelberg Yoyo Society which aims to send a chicken to the moon for starters. That done, it would be on to bigger things: for K.T. to reach the dark side of the moon and there, play with his yoyo. Acknowledging the absurd grandiosity of this mission, its acronym is POMP, for Philippine Official Moon Project. Overall though, the film is a reflection on the creative process.
De Guia has defined independent film-making as making films that only the filmmaker could make. Not surprisingly, his films are also unabashed home movies, often featuring his wife and children. His eldest son Kidlat Gottlieb Kalayaan, then four years old, is his sidekick in Sinong Lumikha ng Yoyo? Sinong Lumikha ng Moon Buggy?, which also has actual home movies of De Guia’s parents. For his 10th birthday, his mother gave him silver ballet slippers and sparkly balletomane pantaloons. Her brother was the painter Victor Oteyza, and in 1939, she had appeared in the movie Nagkaisang Landas under the screen name Lydia Leynes. De Guia’s father, Victor, an engineer, gave him a slide rule and a boxed model of a tower as his birthday gifts. He was also expected to become an engineer. When young Eric did not follow the tower model’s assembly instructions, his father called him a dilettante, and urged him to always strive for exactitude.
De Guia does not have a prepared script when making his films. National Commission for Culture and the Arts Cinema Committee Chair Teddy Co describes his style as more of a reflective essay, rather than a conventional, plot-driven narrative. De Guia has called it “straying on track.” Sinong Lumikha ng Yoyo? Sinong Lumikha ng Moon Buggy? also has archival footage of the 1956 Philippine Soap Box Derby where 13-year-old Eric had entered “Pine Cone Fury.” The body of his car bristled with pine cones. His engineer father told him a race car had to be aerodynamically smooth to overcome wind resistance. Young Eric lost the race but got a special trophy for the most original design. His father was not impressed and simply said that “friction was stronger than beauty.” From such incidents of family drama, art and artists are made.

How do regions fare in terms of jobs?

How do regions fare in terms of jobs?

Five destinations that show there is more to Taiwan

WITH Taiwan waiving visa requirements for Filipinos, it shouldn’t come as a surprise that it ranked as the third top destination for travelers from the Philippines using the Agoda online booking platform.
For most people traveling to Taiwan, a trip to Taipei — the political, economic, and cultural center is a must. But the island offers so much more — its diversity provides numerous attractions for nature lovers, cultural adventurers, foodies, and architecture buffs.
Agoda’s booking numbers also reveal that other places in Taiwan are fast catching up to Taipei’s popularity. Taichung, Kaohsiung, Tainan, and Nantou are steadily welcoming more visitors to take up the runner-up spots on the list of top five Taiwan destinations for Filipino travelers as they showcase the different sights, sounds, and tastes the country has to offer.

• Taichung: Host of the World Flora Expo

The Taichung World Flora Exposition is so big, it is actually three destinations in one. The expo, held from early November 2018 through April 24 this year, spreads across three areas, each featuring a different aspect of Taiwan’s appeal. The Waipu site highlights Taiwan’s role as an agricultural kingdom famed for its flowers, fruits, and other produce. The Houli site celebrates the relationship between people and nature, featuring Taichung’s century-old equestrian facilities and Taiwan’s national treasures on loan from the National Palace Museum. Meanwhile the Fengyuan site, set up along the banks of the Ruanpizai Creek, demonstrates the importance of waterfronts to urban living with Taiwan’s longest riverbank floral corridor.

• Kaohsiung: An architectural feast

If architecture is your thing, head to Kaohsiung. City spaces in Kaohsiung are generally bigger, airier, and adorned with architectural gems. The Kaohsiung Main Public Library and the recently opened National Kaohsiung Center for the Arts are two such notable establishments, with the former featuring the world’s largest suspended atrium, and the latter boasting the largest art venue in the world, as well as housing a 9,194-pipe organ — the largest in Asia.

• Tainan: Foodies’ paradise

The city of Tainan is known as Taiwan’s laidback-living and food capital. Visitors keep coming back for its street food and chic hotels. The list of what you can eat here can easily go over a hundred. But must tries are: fish noodles, shrimp rolls, rice tube pudding, and shaved ice.

• Sun Moon Lake: Home to one of the world’s most endangered languages

For centuries, songs and poems were written about the beauty of Sun Moon Lake in Nantou, Taiwan’s largest body of water. A cycle path circles the lake and offers quite picturesque way to get around it.
Sun Moon Lake is also the home of the Thao tribe, Taiwan’s smallest aboriginal group. Their native language (Thao) is one of the most endangered in the world with fewer than half a dozen living speakers only a few years ago.

• Taitung: Stronghold of Taiwan’s aboriginal cultures

Indigenous tourism in Taiwan is different from aboriginal culture in many other countries — you don’t generally need a permit to travel to these areas. A visit to Taitung lets you experience how these cultures live.
Located on the Pacific-facing side of the island, Taitung is home to several aboriginal tribes, many of which have kept their traditions and their relationship to nature. Such cultural closeness to nature is exemplified in the polyphonic vocal music of the Bunun tribe’s harvest prayer called “Pasibutbut.” Sung by a group of Bunun men standing in a circle with no scores and no conductors, they reach harmony using mutual understanding gained through practice and personal bonds.
It just so happens that Taitung holds a hot air balloon festival each summer — another plus for your Taiwan experience.

GDP growth slowdown expected to persist

ECONOMIC EXPANSION will likely ease further in 2019 as last year’s interest rate hikes are expected to pull down consumer spending, Natixis Research said, even as it noted that the Philippines will remain “resilient” to global slowdowns.
The global economic research outfit projects Philippine gross domestic product (GDP) growth at 6.2% this year, down from a 6.4% forecast for 2018. If realized, this would be the slowest pace in four years, and would miss the 7-8% growth target set by the administration of President Rodrigo R. Duterte.
Philippine GDP growth averaged 6.3% in 2018’s first three quarters, against a downward-revised 6.5-6.9% government forecast for the entire year. Overall economic expansion slowed to 6.7% in 2017 from 2016’s 6.9%, though keeping within the government’s 6.5%-7.5% target range.
“The great news about the Philippines is that its investment growth is in double digits, which is much-needed after decades of lackluster investment,” Natixis economist Trinh D. Nguyen said in a report published in December.
“While investment remains strong, consumption is decelerating to 5.2% year-on-year in Q3 2018 as higher price pressures bite,” she noted.
“We also expect the tightening measures so far filter through to dampen domestic demand.”
Ms. Nguyen was referring to successive increases in benchmark interest rates fired off by the Bangko Sentral ng Pilipinas in 2018. Policy rates went up by a total of 175 basis points (bp) as the central bank sought to rein in price expectations, at a time when inflation soared to nine-year highs.
Higher borrowing costs are said to have already weighed on consumer spending in the third quarter, resulting in a slower-than-expected 6.1% expansion in those three months.
Still, Natixis said the economy may be headed for a good year, with inflation expected to ease following an uptrend observed a year ago, assisted by a decline in world crude prices. From a high of 5.1% expected of 2018 — actual headline inflation averaged 5.2% in the nine months to November — the overall increase in prices of basic goods is seen averaging 3.5% this year to return to the BSP’s 2-4% target band.
“The Philippines is largely domestic-oriented and likely to be among the most immune to China slowdown and trade war in Asia. We expect growth to remain resilient in 2019 despite a regional slowdown,” Natixis added.
At the same time, the Philippines is expected to continue to post a trade deficit, although narrower than the previous year.
“We expect the Philippines to follow the Fed most closely given its current account deficit position, which means it needs to both stabilize the currency and lift rates. The good news is that the hiking is close to over — expect only a 25 bp hike to take rates to five percent,” the report read.
The key rate now stands at 4.75%, the highest in nearly a decade. — Melissa Luz T. Lopez

SMIC ‘cautiously optimistic’ this year

SM INVESTMENTS Corp. (SMIC) said it is “cautiously optimistic” on the economy this year, while expecting its businesses to sustain its growth.
“We’re still watching the economy, we’re cautiously optimistic of the economy. So for us, it’s business as usual,” SMIC President and Chief Executive Officer Frederic C. DyBuncio told reporters during the company’s media event last Dec. 6 in Makati.
Asked what factors could impact the listed conglomerate’s businesses, Mr. DyBuncio cited ongoing trade war between the United States and China, higher inflation, rising interest rates and peso-dollar rate fluctuations.
“All of those obviously will have some impact here. The degree of that impact we don’t know, we’ll have to wait and see,” Mr. DyBuncio explained.
SMIC’s core businesses include property, banking, and retail, which are primarily consumer-driven. Rising inflation could affect consumers’ spending habits as they adjust to the higher cost of living. This translates to lower profits for businesses, alongside slimmer margins.
Inflation climbed to a nine-year high of 6.7% in September and October, before cooling down to six percent in November. Analysts generally expect inflation to ease this year.
SMIC Vice Chairperson Teresita Sy-Coson, however, noted that sales within the SM Group continued to grow despite elevated inflation last year. She expects the company’s revenues to continue growing this year.
“I think the economy in spite of the inflation, the sales are still growing strong, revenues are going on. So we don’t expect a downtrend,” Ms. Sy-Coson told reporters, noting that the mid-term elections will be a good thing for the consumer sector.
For the property business, Mr. DyBuncio said SM Development Corp. (SMDC) is “very well-positioned” to take advantage of the strong demand.
SMDC, which handles the group’s residential business, booked a 23% increase in revenues to P25.26 billion in the first nine months of 2018, driven by the higher demand for projects from international buyers, overseas Filipino workers, and the emerging middle class.
“All the businesses we have are consumer-focused, and as the economy’s doing well, consumption is doing well, disposable income is increasing, so that’s all very positive for the businesses we’re involved with,” Mr. DyBuncio said.
The company continues to expand its mall business, as it looks to end 2019 with 10.5 million square meters of gross floor area from its shopping malls in the country.
SMIC’s net income attributable to the parent grew by 10% to P26.17 billion in the first nine months of 2018, compared to P23.79 billion it made in the same period a year ago. This came after a 12% year-on-year uptick in gross revenues to P307.42 billion.
Shares in SMIC gained 4.64% or P42.50 to close at P958 each at the stock exchange on Thursday. — Arra B. Francia

Energy World Philippines gets go signal to build LNG facility

By Victor V. Saulon
Sub-editor
THE local unit of Australia’s Energy World Corp. Ltd. (EWC) has taken the lead in the race to build an integrated liquefied natural gas (LNG) facility in the Philippines as its proposal has been cleared by the Department of Energy (DoE).
In a letter dated Jan. 2 to the Australian Securities Exchange, EWC said DoE Secretary Alfonso G. Cusi on behalf of the department had issued Energy World Gas Operations Philippines, Inc. a permit to construct, own and operate an LNG import terminal and regasification facility on Pagbilao Grande island in Quezon province.
“The permit which was issued on 21 December 2018 forms an update to the original permit documentation and provides for a further construction period of 24 months from the permit issue date,” it said.
EWC said the permit would enable the completion date for the first tank of the LNG hub to be aligned to the commercial operation date of the associated 650-megawatt (MW) power plant and the National Grid Corporation of the Philippines switchyard expansion, which is under construction, and for the construction of the second tank.
Separately, Rino E. Abad, director of the DoE’s Oil Industry Management Bureau, told reporters on Thursday that EWC is now leading as far as permitting is concerned.
Mr. Abad said EWC’s proposal was the first to be endorsed by the centralized review and evaluation committee (CREC) for Mr. Cusi’s approval. He said the proposal was simply an extension of EWC’s previously approved project that had encountered delays because of funding issues.
The proposal of Phoenix Petroleum Philippines, Inc. and its Chinese partner China National Offshore Oil Corp. (CNOOC) is currently being evaluated by CREC, he said.
First Gen Corp. and its partner Tokyo Gas Co., Ltd. were the last to submit its project proposal, which is now under evaluation by Mr. Abad’s group for compliance with financial, technical and legal requirements.
Mr. Abad said the issue with EWC’s previous application was mainly on the extension of the project’s previously issued permit.
“The problem is nag-submit siya ng work program pero hindi niya ma-explain ‘yung budget (The problem was it submitted a work program but it was not able to explain its budget.),” he said.
Mr. Abad said the TWG (technical working group) had asked EWC to substantiate its application since at that time, the unfinished project needed around P6 billion to be completed. He said the company had replied with supporting documents, including approval from shareholders that they would release a special fund for the project’s completion.
“Ang sa amin naman as long as hindi masyadong vague ‘yung plano ‘yan naman ay ine-encourage natin, sinusuportahan ‘yung investors (From our end, as long as the plan is not too vague, we encourage it and support the investors.),” Mr. Abad said.
He also said that EWC also explained that the release of funds by local lenders depends on the approval by the DoE of the extension permit.
In an earlier interview, EWC Director Graham S. Elliott said the company had resumed talks with local lenders to fund the completion of its 650-MW combined cycle gas-fired power plant.
“We are in the process of finalizing the project funding from the Development Bank of the Philippines and Land Bank [of the Philippines] and other institutions, and hopefully we’re about six to eight months away from commercial operation of the first 200-MW gas turbine,” Mr. Elliott had said.
Francis Nicolas M. Chua, DBP first vice-president and head of the bank’s corporate finance group, confirmed the revival of talks with EWC.

This year, Oscar is more likely to go to a film you have actually seen

THIS YEAR’S Oscar race is one of the most wide open in recent memory, giving some big-studio blockbusters a shot at the best-picture crown after years of victories by indie darlings.
Gold Derby, which tracks the Academy Awards race, lists six films at 10-1 or better, based on picks by critics. A Star Is Born, the drama starring Bradley Cooper and Lady Gaga, is favored by 21 of 30 at the Web site. But they lack conviction, putting the odds at 13-2, a hair above Roma, director Alfonso Cuaron’s tribute to his childhood in Mexico, at 15-2.
This may also be a year that the winner is a film a lot of people have seen. A Star Is Born has taken in more than $388 million in ticket sales worldwide. Roma, which is playing in a handful of theaters to ensure it can compete for an Oscar, is being promoted heavily on Netflix, which has more than 137 million subscribers worldwide. The nominations will be announced Jan. 22, with the Oscar ceremony scheduled for Feb. 24.
Other widely seen films with a strong chance at a nomination include the superhero blockbuster Black Panther, with $1.35 billion in worldwide ticket sales, and the Freddie Mercury biopic Bohemian Rhapsody, at $702.5 million. Last year’s winner, The Shape of Water, took in $195.2 million globally — much of it after capturing the Oscar nomination.
“To see a movie like Black Panther in the conversation is very reassuring,” said Phil Contrino, director of research for the National Association of Theatre Owners. “It shows that the Oscars are more in tune with what the paying public is responding to.”
ON YOUR MARK
Two potential contenders opened in late December: Vice, a satirical biopic about Dick Cheney, and On the Basis of Sex, about the early years of Supreme Court Justice Ruth Bader Ginsburg. From a business standpoint, smaller films like these benefit most from high-profile nominations, with many movie fans often hearing about them for the first time.
The race kicks off Jan. 6 when the Hollywood Foreign Press Association hands out the Golden Globe Awards on NBC. But cinephiles will get more clarity on the favorites later in the month when Hollywood trade groups begin bestowing their honors. In particular, fans should track the Screen Actors Guild, which represents the largest voting bloc in the academy and announces its winners on Jan. 27. The Bafta Awards, bestowed in early February by the British Academy of Film & Television Arts, are also influential.
A Star Is Born has a lot going for it, including a directing and starring role for Mr. Cooper, one of the industry’s most-popular leading men, as well as a hit soundtrack. It’s about the entertainment business, a subject that always seems to appeal to the Oscars voters, members of the Academy of Motion Picture Arts & Sciences. It’s also a major studio production — from Warner Bros. The last major-studio film to be crowned best picture was also from Warner Bros. — Argo in 2012.
ROMA HURDLES
Roma, by contrast, has appeared in just a few theaters, the preferred venue for movie lovers. Although artfully shot in black and white by a director who won the Oscar for 2013’s Gravity, the film would need to overcome Hollywood’s uneasy relationship with Netflix and the streaming service’s unwillingness to distribute its movies widely in theaters.
Black Panther has its own momentum. The academy has been recruiting more minorities in response to criticism such as the #OscarsSoWhite social-media campaign. The organization found itself in trouble in December after announcing that African-American comedian Kevin Hart would host the show, only to have him step down after being called out for homophobic comments he made previously on Twitter.
Black Panther is in line to become the first superhero film to get nominated for best picture. It stars a largely black cast and features a superhero who rises to prevent the exploitation of natural resources in a fictional African nation.
AUDIENCE FAVORITE
Walt Disney Co., which released the film as part of its Marvel universe, is campaigning heavily for an award, including hosting more than 100 academy members at an event in West Hollywood. Chief Executive Officer Bob Iger even asked Oprah Winfrey, who had nothing to do with the picture, to come show her support.
Having Black Panther in the mix would burnish Disney’s image with filmmakers and also likely help the TV ratings for the Oscar ceremony. It’s carried on the company’s ABC network and has suffered a loss of viewers in recent years. The academy has flirted with a most-popular-film category to boost the audience.
“If they were to recognize a film with that kind of political and cultural impact, that would be tremendous,” said Barton Crockett, an analyst with B. Riley FBR Inc. “It would be very good for the industry.” — Bloomberg

Odds-on favorites says Gold Derby

• 13-2 for A Star is Born (Warner Bros.)

• 15-2 for Roma (Netflix)

• 8-1 for Green Book (Universal)

• 17-2 for The Favourite (Fox Searchlight)

• 9-1 for BlacKkKlansman (Focus Features)

• 19-2 for Black Panther (Disney)

Philex Mining taps Pilipinas Shell as fuel supplier

PHILEX Mining Corp. has tapped Pilipinas Shell Petroleum Corporation to supply fuel for its operations.
Philex Mining and Pilipinas Shell signed the one-year contract last Dec. 17, according to the latter’s statement.
Pilipinas Shell said it will supply its FuelSave Diesel with Dynaflex technology, which will keep engines of vehicles and heavy equipment clean.
The company said that it has assigned dedicated lorries for Philex Mining through its partnership with a hauler in North Luzon.
Philex Mining Corp. President Eulalio B. Austin, Jr. was quoted as saying the company decided to partner with Pilipinas Shell “because of its consistent fuel pricing, reliable product quality, and a more professional and accessible account management for better operations in the long run.”
“We are thankful that Philex Mining gave us the privilege and opportunity to be a part of their operations. We offer the full commitment of Shell and we will continue to work with them to better serve their business,” Pilipinas Shell President and Chief Executive Officer Cesar G. Romero said in the statement.
Philex Mining is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — RJNI

Palace authorizes extension of 2018 maintenance, fund

PRESIDENT Rodrigo R. Duterte signed a resolution extending the availability of the 2018 national budget for the maintenance and other operating expenses (MOOE) and capital outlay (CO), pending delays in the passage of the 2019 budget, Executive Secretary Salvador C. Medialdea said Thursday.
Mr. Medialdea confirmed in a text message that Mr. Duterte signed a Congress joint resolution seeking the “extension of validity of (the) 2018 budget for MOOE and (CO) to Dec. 31, 2019.”
House Majority Leader Rolando G. Andaya, Jr. said during a hearing in Camarines Sur on Thursday that the President signed the resolution.
“It looks like the cash budgeting system will not continue this year because the President already signed that the resolution extending the life of the 2018 budget for this year),” Mr. Andaya said.
“In effect, the President, by signing the resolution extending the life of the 2018 budget, does away with the cash budgeting system,” he added.
The joint resolution amends Section 61 of Republic Act No. 10964 or the General Appropriations Act (GAA) to allow the validity of the MOOE and capital outlay appropriations for another fiscal year or until Dec. 31, 2019.
It stated that the unreleased 2018 appropriations can be used for MOOE and CO to fund “priority projects, aid and relief activities as well as for the maintenance, construction/repair and rehabilitation of schools, hospitals, roads, bridges and other essential facilities of the national government.”
It took note of typhoons and flooding affecting several regions in Luzon and in Mindanao that “destroyed vital infrastructure and affected the delivery of basic services to the affected communities.”
It also stated that the 2018 GAA has limited the release of the MOOE and capital outlay funds only until the end of 2018, contrary to the previous GAAs from 2014 to 2017, which allowed for the said funds to be released and obligated for a two-year period. If unspent, the 2018 appropriations will be automatically returned to the General Fund.
Congress also made the same plea via joint resolutions in 2002 and 2013 to extend the availability of the current appropriations for another year.
Separately, the Department of Budget and Management (DBM) said it expects to tap only 25% of the re-enacted 2018 budget over the first three months of the year.
In a Circular Letter dated Jan. 3, the DBM told national government agencies to only obligate at most 25% of the 2018 budget, which would cover requirements for the first three months of the year — the period when the government expects to operate under a reenacted budget.
A re-enacted budget means that no new projects can be implemented and salary hikes are frozen until a new budget is enacted.
The DBM expects the 2019 General Appropriations Act (GAA) to be signed into law by February.
“Pending the approval of the 2019 GAA, national government agencies receiving allotment or Notice of Cash Allocation (NCA) from the DBM are authorized to obligate the amount corresponding to their actual requirements for the first quarter of 2019,” according to the circular.
However, obligations should not exceed 25% of the appropriations for personnel services, maintenance and other operating expenses, and capital outlays in the 2018 budget.
The DBM’s instructions exclude appropriations for the creation of new positions, the fourth tranche of the salary standardization law, mid-year and year-end bonuses and cash gifts, clothing and uniform allowances, and productivity enhancement incentives.
However, the DBM will still release 2019 budget-level funding for retirement and life insurance premiums, Pension and Gratuity Funds, Special Purpose Funds, budgetary support to government corporations, Miscellaneous Personnel Benefits Funds, Contingent Funds, and Internal Revenue Allotments of local government units, as they are automatically appropriated every year.
“We will do what we can to minimize the damage to the Philippine economy, particularly public construction. You see, as early as the first working day of the year, we have come up with the guidelines for fund releases under the reenacted budget,” Budget Secretary Benjamin E. Diokno was quoted as saying.
“The sooner the 2019 GAA is passed, the better for the economy and the Filipino people. Ramping up our investments on infrastructure and social services will only be sustainable if the budget is authorized by Congress,” he added. — Camille A. Aguinaldo, Elijah Joseph C. Tubayan

SC ruling sought on foreign gov’t ownership of third player

THE Supreme Court (SC) has been asked to review the award of third-player status to a consortium led by Mindanao Islamic Telephone Company Inc. (Mislatel), with the tribunal pressed to clarify whether a consortium member, which is owned by a foreign government, can invest in public utilities.
The petitioner also questioned the selection process for the new entrant to the telecommunications industry, outlined in Memorandum Circular (MC) 09-09-18, saying that the terms of selection excluded many potential interested parties.
The Mislatel consortium was declared the provisional third player on Nov. 7, with China Telecom Corp. as its 40% foreign partner.
Other members of the Mislatel Consortium include Udenna Corp. and Chelsea Logistics and Holdings Corp.
In a 44-page petition-in-intervention, Marlon Anthony R. Tonson also asked that MC 09-09-18 be struck down due to certain provisions that prevent “genuine competition” in the selection process, which was conducted by the National Telecommunications Commission (NTC).
He said that the P1 million cost of the bid documents for the selection process was unreasonably high and kept out “potential participants who simply want to study the requirements before cementing their intent to participate in the selection process.”
The P700 million participation security also “constitutes a substantial deterrent to a more participative selection process.
The performance bond of 10% of the remaining cumulative capital and operational expenditure commitments and the non-refundable P10 million appeal fee “disincentivizes potential players from participating in the selection process.”
Mr. Tonson said that M.C. 09-09-18 lacked a proper screening test to uphold the nationality restriction for public utilities.
Section 11, Article XI of the Constitution only allows Filipinos or corporations or associations 60%-owned by Filipinos, to operate public utilities. “The nationality restriction serves as a proxy at best… with majority ownership belonging to the Filipinos, public utilities will be managed and operated to the country’s interest.”
He argued however that it is not clear whether the constitutional provision allows a foreign state to own a part of the public utility through its government-owned enterprises.
“Given such distinctions, a different rule must therefore apply when it comes to the issue of ownership in a public utility by a foreign State, whether directly or indirectly through a government-owned enterprise,” he said.
The Memorandum Circular also lacked safeguards against foreign control of public utilities as it only stipulated a clearance from the Securities and Exchange Commission that the Bidding Agreement follows the nationality requirements after it confirmed the third player.
Mr. Tonson also claimed that the MC lacks safeguards against the compromise of national individual security or protections against “a number of persons of ill will who would want to use cyberspace technology for mischief and crimes.”
“In the matter of security, the State must be wary, suspicious, vigilant, and forward-looking. Security is, after all, a matter of prevention rather than remediation,” he said.
He also said the selection rules also failed to evaluate the security risk in admitting a foreign-owned entity.
Declaring Mislatel the third player will subject Filipinos “to surveillance and threats to security by a government entity,” putting China in a “strategic position to intrude into fundamental liberties.”
The petition follows Philippine Telegraph and Telephone Corp.’s petition before the SC in November questioning its disqualification from the selection process. — Vann Marlo M. Villegas

Multigenerational event set to mark 50th anniversary of Woodstock this year

FIFTY YEARS after the Woodstock music festival became one of the watersheds of hippie counterculture, an anniversary event will take place in August 2019 on the same field north of New York City.
The Bethel Woods Center for the Arts announced a three-day festival of “music, culture and community” that will celebrate “the golden anniversary at the historic site of the 1969 Woodstock festival.”
The Bethel Woods Center, a nonprofit that now owns the 37-acre (15-hectare) field that was the site of the 1969 Woodstock festival, said in a Facebook posting on Dec. 27 that the Aug. 16-18 festival will be a “pan-generational event.”
It will feature live performances from prominent and emerging artists across multiple genres and decades, as well as talks from leading futurists and tech experts. The festival is a joint venture with concert promoters Live Nation.
Details of performers, tickets and other participants will be announced at a later date, the Bethel Woods Center said.
The August 1969 Woodstock festival, billed as “three days of peace and music,” is regarded as one of the pivotal moments in music history and 1960s counterculture.
Over three sometimes-rainy days, more than 30 acts — including Jimi Hendrix, Janis Joplin, The Who, The Band, and the Grateful Dead — performed around the clock to a 400,000-strong audience, most of whom watched for free and camped onsite in the mud. The festival was documented in the 1970 film Woodstock, which won an Oscar.
Although it was known as Woodstock, the festival actually took place in Bethel, some 70 miles (110 km) south of the village of Woodstock in upstate New York. Bethel is 90 miles (144 km) north of New York City.
“Fifty years ago, people gathered peacefully on our site inspired to change the world through music,” Darlene Fedun, chief executive of the Bethel Woods Center, said in a statement announcing the 50th anniversary event.
“We remain committed to preserving this rich history and spirit, and to educating and inspiring new generations to contribute positively to the world through music, culture, and community,” Ms. Fedun added.
The Bethel Woods festival is not affiliated with Michael Lang, a promoter of the 1969 festival, who has also spoken of plans to organize a 50th anniversary event but has yet to make any announcement. Woodstock anniversary festivals were also held in 1994, 1998, and 1999.
Many of the 1969 Woodstock artists are now dead. Surviving musicians who are still performing into their 70s include Joan Baez, Roger Daltrey and Pete Townshend of The Who, and David Crosby, Neil Young, Graham Nash, and Stephen Stills of Crosby, Stills, Nash and Young. — Reuters

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