Home Blog Page 11697

Robredo to Duterte: Assure people you are on top of problems

VICE-PRESIDENT Maria Leonor G. Robredo, in a statement on Friday, called on President Rodrigo R. Duterte to “use his podium to assure the people that he is on top” of the nation’s problems.
On Friday evening, she also spoke against “the winds of authoritarianism” and of “freedoms…being challenged in ways that are not seen in the last few decades” at ceremonies in honor of this year’s recipients of the Ramon Magsaysay Foundation Award, Asia’s equivalent of the Nobel Prize.
Ms. Robredo’s statement was in response to Mr. Duterte’s latest attack on the Vice-President, saying in part that the country is “better off choosing a dictator the likes of Marcos,” and that Ms. Robredo “cannot hack it (the presidency).”
The Vice-President called the President’s speech in Mandaue City on Thursday evening “recycled rants conveniently used to deflect attention from the failures of this administration.”
She added: “And while he may be intending to flatter me by keeping me at the top of his mind these days when he stands behind the seal of his office, I’d still prefer that he focus on the many important matters that he needs to address—as rising prices continue to make life difficult for our fellow Filipinos, especially for those in need.”
“Perhaps he can use his podium to assure the people that he is on top of these problems—and to use his power to intervene when his appointed officials struggle to come up with coherent solutions to the rising prices of rice and other basic commodities.”
“Despite these many problems, the drug war clearly remains highest on the President’s agenda, so much so that he is now pinning blame on a blind man.” Ms. Robredo said further, referring to his brother-in-law Butch Robredo, whom Mr. Duterte has accused of trafficking drugs in her hometown of Naga City.
Mr. Duterte on Thursday reaffirmed his accusation that Naga City, Ms. Robredo’s hometown, is a “hotbed of shabu.”
“Ang (It’s her) brother-in-law niya ang nagdala ng (who brought) drugs sa (to) Bicol. Totoo iyan. Siyempre (That’s true. Of course),” he added.
Ms. Robredo also said in her statement: “Perhaps instead of constantly repeating this ridiculous allegation, and throwing mud on the name of a city that thrives on good governance—and that staunchly supports the call to fight illegal drugs—he can turn his attention to the P6.8-billion shabu shipment that slipped past his customs officials, and not just shrug off the insistent report of his own PDEA chief regarding the magnetic lifters found in Cavite.”
Naga City was cited by the Ramon Magsaysay Foundation when Ms. Robredo’s late husband, Jesse M. Robredo, won the Ramon Magsaysay Award in 2000 for his administration as city mayor.
She also cautioned Mr. Duterte against “continuing to glorify a dictator who stole billions from our country, drove the nation into debt, and presided over the murder and imprisonment of thousands of Filipinos….”
Mr. Duterte on Thursday had also said, “If I stop now my crusade against drugs and if there is no order in this place, the Philippines, and corruption will continue, patay yun (it won’t work). I said you’re better off choosing a dictator the likes of Marcos. That’s what I suggested.”
Puwede kayong magkaroon ng (You can follow the) constitutional succession, si Robredo, but she cannot hack it,” he also said.
Ms. Robredo faces an electoral protest by former senator Ferdinand R. Marcos, Jr., son of the late dictator Ferdinand E. Marcos.
On Aug. 16, Presidential Spokesperson Harry L. Roque, Jr. said in a press briefing, “If he (Mr. Marcos) becomes vice-president, perhaps the President will make true his word that he will step down. Because what he is worried about is that if we were to use constitutional succession, then the successor may not be qualified.”
On Friday, sought for comment by the media on Mr. Duterte’s remarks in Mandaue City, Mr. Roque said it was the President’s “personal belief” that “everyone can be better than the… Vice President. With all due respect to the Vice President, that’s a personal assessment made by the President.”
At the Ramon Magsaysay Awards ceremonies on Friday, Ms. Robredo acknowledged the presence of past awardees Hilario G. Davide Jr. and Conchita Carpio-Morales, as well as former president Fidel V. Ramos, former social welfare secretary Corazon J. Soliman, and the Magsaysay family including the late president ‘s son, former senator Ramon B. Magsaysay Jr.
Ms. Robredo cited President Magsaysay as a leader who “chose to listen and reach out to the poor when the winds of authoritarian rule were starting to sweep across many nations. He sparked an ethos that brought purpose to a region marred by poverty, inequality and violence.”
“Today, you and I live in another period of great tumultuous change,” she continued. “This is a time when many feel that darkness has almost eclipsed hope, when violence has become commonplace—even necessary. Many are saying they could hardly recognize what humanity has become.”
“Where is Asia in this era of transition?…The Asia we know carries a rich legacy of humanity, where despite the countless threats and attacks against humankind, we remain resilient, ensuring that human lives will not be snuffed out by any tyrant. We have had a long history of bloody struggles in very dark times, and I refuse to believe that we suffered them for nothing.”
“The Asia we know carries a rich legacy of leadership, where leaders inspire courage rather than fear, bringing out the best in our people rather than fanning the flames of our darkest inclinations.”
Ms. Robredo praised this year’s awardees, including Howard Dee of the Philippines who, among his other endeavors, “crafted a concerted response to life-threatening emergencies in Mindanao in Southern Philippines including Tabang Mindanao, which means Help Mindanao; and took up the cause of indigenous peoples rights through legislative advocacy, scholarships, leadership training, and IP development programs, like the Pamulaan Center for Indigenous People’s Foundation in Mindanao.”
“The Board of Trustees of the Ramon Magsaysay Foundation was right in calling Mr. Dee ‘quietly heroic’in his half-century service to the Filipino people,” Ms. Robredo said.
She said further: “Quiet courage and empathy, and leaders that put in the hard work of actually transforming the lives of people, are rarities in these times, when dictatorship is claimed by some to be better.”
“When those trusted by the electorate threaten lives instead of protect them, divide the nation instead of unite it, attack people’s cherished beliefs instead of nourishing them, and present themselves only through bravado and empty promises as the antidote to what they say are outdated and decaying ideas like democracy, we don’t move towards a better future. We move towards a scorched-earth existence where people are killed, institutions are decimated, and our very way of life is threatened,” Ms Robredo also said.

Australian nun to file petition for review of deportation case

By Vann Marlo M. Villegas
AUSTRALIAN missionary Patricia Fox will file at the Department of Justice (DoJ) on Monday a petition for review of the Bureau of Immigration’s (BI) deportation order against her.
Ang amin pong magiging (Our) course of action is we will be filing an appeal (at) the Department of Justice on Monday. It was supposed to be filed today but unfortunately, we need to firm up additional arguments,” a lawyer of Ms. Fox, Joebert I. Pahilga, said in a press conference on Friday that the Australia nun also attended.
Ms. Fox, for her part, said, “Gusto kong lalaban itong kaso hanggang sa katapusan….Sinabi ko dati mahal ang Pilipinas sa akin. Ayoko umalis kung ganito ang kalagayan.” (I want to pursue this case until the end….I said before that the Philippines is dear to me. I don’t want to leave like this.)
The BI upheld the deportation order against Ms. Fox issued in July, saying “no new matters raised that warrant the modification or reversal of the resolution.”
“She was authorized to conduct only missionary works, but had attended numerous political activities contrary to the limitations of her visa. She was likewise seen as undesirable for joining protests, which she also admitted in her affidavit,” BI spokesperson Dana Krizia Sandoval was quoted as saying in a statement by the bureau.
Maria Sol Taule, another lawyer of Ms. Fox, said: “There are no new arguments daw na nilatag namin sa aming (that we presented in the) MR. But then again, we should take note that the BI never faced squarely the issues that we raised. Wala silang sinabi tungkol sa missionary work ni Sister tungkol doon sa pagaakusa nila na political work ito at iba pa.” (They did not say anything about the missionary work of the Sister in their accusation that this constituted political work.)
Presidential spokesperson Harry L. Roque Jr. said that they are “according her all the remedies provided by law….”
He added: “I understand she has 30 days or so to appeal again to the DoJ. So binibigay po natin sa kaniya iyan at pagkatapos na ma-exhaust ang lahat ng remedies at kapag hindi nagbago and desisyon (So we are giving her that, and after exhausting all remedies and the decision will not change), she will be deported. Dura lex sed lex mensahe sa mga dayuhan, huwag po kayong mamulitika habang kayo po ay on temporary visa dito sa Pilipinas (Dura lex sed lex is the message to foreigners, do not politicize your activities while you are on temporary visa in the Philippines).”
Ms. Fox’s lawyers noted that her missionary visa will expire on Sept. 5. Mr. Pahilga said Ms. Fox already applied for the renewal of her missionary visa on Aug. 20.
Sought for comment, Justice Secretary Manardo I. Guevarra told reporters that Ms. Fox’s visa “may be downgraded to a tourist visa only, for a limited period.” But this, he said, is still subject to the outcome of her deportation case.

NEDA proposes five-phase transition for federalism

By Karl Angelo N. Vidal, Reporter
THE National Economic and Development Authority has proposed a five-phase transition to a federal form of government to avoid disruption to the economy’s growth momentum.
In a presentation at a Cabinet-level Economic Development Cluster (EDC) meeting on Wednesday, NEDA Undersecretary for Policy and Planning Rosemarie G. Edillon laid out the agency’s five-pronged proposed transition roadmap spanning 15 years which has been earlier submitted to the Constitutional Review Committee.
In the proposed transition, the first phase should be focused on conducting a spatial analysis of federated regions and their socioeconomic profiles, accounting of government workforce and functions as well as mapping of existing laws and policies.
This phase, or the first year of the transition, can be accompanied by an extensive review and amendment of provisions of the current 1987 Constitution “that have limited the country’s opportunities to achieve inclusive growth and development.”
The government structures and functions must be rationalized in the second phase. The five-year period should include an extensive review or amendment of the Local Government Code and the Administrative Code.
“During this period, a transitional period charter should be adopted and the federal transition commission must be established,” the socioeconomic planning agency said.
The transitional government can be activated in the third phase. At this stage, the government will be “prepared for genuine devolution.”
In the fourth phase, the operationalization of five federated regions based on readiness and willingness must be piloted for five years.
The transition government should be deactivated along with the ratification of the amended constitution in the last phase of the transition. The regional development councils may serve as interim regional governments.
“We need a forward-looking strategy to strengthen the capacities of the bureaucracy at both the regional and local levels to take on central office functions,” Ms. Edillon was quoted as saying in the statement.
Economic managers earlier warned that the proposed changes could cause the fiscal deficit to balloon beyond the prescribed three percent-to-gross domestic product ratio.
Global debt watcher Moody’s Investors Services last month flagged the planned shift to a federal form of government as a risk to the credit rating of the Philippines which stands at Baa2, a notch above the minimum investment grade with a “stable” outlook.
At the EDC meeting on Wednesday, Ms. Edillon had cautioned that the proposed changes to the Constitution could add 1.0-1.6 percentage points to the three percent-of-GDP fiscal deficit ceiling.
“In terms of the split, they said it’s a 50-50 split in terms of the revenues. But when we looked at the share in spending, it can actually go up to 80-20 if you consider debt payments,” she told reporters after the meeting.
Ms. Edillon said the government faces P156.6-243.50 billion in additional expenses — including personnel services and maintenance and operating expenses — in the first year of implementation of the new charter. She added that this does not include the cost of “around P10 billion to establish the new offices” in federated regions.
CONCOM QUESTIONS ASSUMPTIONS
For their part, members of the Consultative Committee on charter change questioned economic managers’ assumptions on the cost of shifting to a federal system.
“What are the assumptions (for the computation)?” Professor Edmund S. Tayao said in Filipino during a press briefing at Malacañang Palace on Friday. “If you look at the DoF computation, may nilagay pa silang IRA (Internal Revenue Allotment) ng federated region, eh may revenue share na yon. Pangalawa, may sinasabing kailangan mo nang offices, eh meron ka nang existing offices.” (If you look at the DoF computation, they even factored in the IRA for the federated region, which already has a revenue share. Secondly, they said you need offices, [when] there are already existing offices.)
Department of Interior and Local Government (DILG) Assistant Secretary Jonathan Malaya, for his part, said, “Either it’s P20, P243 or P320 billion, I think we can afford it. Why? I’ve been in government for so long. In the last budget hearing that I attended, the entire returned, unutilized budget of the government, which all of the government agencies returned to DBM (Department of Budget and Management) because it was not utilized, is P600 billion,” Mr. Malaya said.
“The assumptions they made, we feel are mistaken because it bloated the cost. The solution here is more technical discussions between the ConCom commissioners and the (DoF) and the NEDA, para lahat tayo, hindi paiba-iba ng figures (so that all of us won’t have conflicting figures),” Mr. Malaya also aid.
“It’s the ConCom that should be listened to because it’s them that prepared the draft federal Constitution and the NEDA and the DoF are simply commenting on the draft,” he added.
According to Mr. Malaya, an InterAgency Committee has been convened, which includes the Office of the President, ConCom, DILG, DoF and other government agencies. He said the Committee is tasked to consolidate all comments, which will be incorporated to the draft Federal Constitution. — with Charmaine A. Tadalan

Palace: Nayong Pilipino-Landing contract ‘definitely for cancellation’

MALACAÑANG on Friday affirmed, citing Justice Secretary Menardo I. Guevarra, that the casino deal between Nayong Pilipino Foundation Inc. (NPFI) and Landing Resorts Philippines Development Corporation (LRPDC) is “void ab initio,” or void from the beginning, and therefore “definitely for cancellation.”
“According to the Secretary of Justice, the contract of Landing with Nayong Pilipino is a build operate transfer contract disguised as a lease contract,” Presidential Spokesperson Harry L. Roque said in a press briefing, Friday.
“Because it is BOT project, it should have complied with the BOT law including public bidding,” he added.
Malacañang on Aug. 8 said the President has ordered the DoJ to review the contract, on the heels of his firing the entire NFPI board. The Department on Thursday confirmed it has transmitted its findings to the Palace.
Further, the Spokesperson confirmed this effectively dismisses the contract between Nayong Pilipino and LRPDC on the $1.5-billion casino-resort project in Entertainment City.
“Definitely for cancellation dahil nasusugan na po ni Secretary Guevarra iyong nauna nang opinion ni Presidente na flawed ang contract,” Mr. Roque said. (Definitely the contract is for cancellation because Secretary Guevarra has affirmed the President’s earlier opinion that the contract is flawed.)
“I hope the Presidential Commission on Corruption will take the lead and file the necessary complaint with the Office of the Ombudsman,” Mr. Roque also said.
He added: “Or I hope the Ombudsman, under the new Ombudsman, will initiate motu proprio investigation dahil kinakailangan naman pong mapanagot iyong mga pumasok sa ganitong kontrata (because those who entered into the contract should be made to answer).” — Charmaine A. Tadalan

Outstanding debt inches up in July at P7.044 trillion

By Karl Angelo N. Vidal, Reporter
THE government’s outstanding debt inched up in July on the back of net availments on both domestic and foreign obligations, the Bureau of the Treasury said on Friday.
The total unpaid debt stood at P7.044 trillion as of end-July, P27.4 billion or 0.4% higher than the P7.016 trillion recorded as of June.
Year-on-year, debt was 10.3% higher than the P6.385 trillion as of end-July 2017.
Of the overall unpaid obligations, 34.68% or P2.443 trillion is owed to foreign creditors while 65.32% or P4.601 trillion is owed to local sources.
The external debt was 0.2% higher than the P2.437 trillion logged in the previous month due to the net availments of foreign loans totalling P20.68 billion.
However, the increase was tempered by currency fluctuations on both dollar and third-currency denominated debt amounting to P11.14 billion and P3.6 billion, respectively.
Likewise, the domestic debt was 0.5% higher compared with the P4.579 trillion the previous month.
The increase in the level of domestic debt was on the back of “net issuance of government securities amounting to P21.57 billion.” This was slightly tempered by the stronger peso, diminishing the value of onshore dollar bonds by P0.12 billion.
The local currency closed at P53.16 against the dollar on end-July, stronger than the P53.404 logged the previous month.
Guaranteed obligations amounted to P483.9 billion in July, down from the previous month’s P488.2 billion as the state settled some of its local and foreign borrowings worth P1.14 billion and P0.21 billion, respectively.
This was also due to “currency fluctuations on both dollar and third-currency denominated guarantees amounting to P1.36 billion and P1.55 billion, respectively,” the BTr added.
The government borrows from local and foreign sources to fund its budget deficit, which for this year is capped at 3% of the country’s gross domestic product.
This year, it has set a 65-35% borrowing mix in favor of domestic creditors, as it plans to borrow a total of P888.227 billion.
Looking ahead, the government will offer renminbi-denominated “panda” bonds and yen-denominated “samurai” papers in the next 12-18 months to maintain its presence at the said markets.

DA chief to issue order against rice hoarders

AGRICULTURE Secretary Emmanuel F. Piñol on Friday flagged the problem of rice hoarding in the country, saying he is set to issue an order to help clamp down on this practice.
In a related development, the Bureau of Customs (BoC) on Friday filed criminal charges against officers of Red Star Rising Corporation and Sta. Rosa Farms for smuggling millions worth of sugar and rice, respectively.
In a press briefing on Friday, Mr. Piñol said, “The law of supply and demand in the country is not the supply provided by the farmers and the producers but the supply concentrated on the hands of the monied…traders who buy from the farmers, control the stocks, and therefore hold on to the supply and control the price of the supply in the market.”
The agriculture chief also said he will issue an administrative order in line with a “Report a Hoarder” program which will provide a reward of P50,000 to whoever can report rice hoarders to the DA and an additional P200,000 once this information is confirmed.
For his part, NFA Administrator Jason L.Y. Aquino said in a statement, “The price of rice in the market is very precarious right now, that is why we have to more than double our effort. Some traders will surely try to make greater profit from the rice situation that we have, but we will not allow it to happen.”
“With the formation of (a) TWG (technical working group) to work closely with the different enforcement agencies, we hope that we can finally stop any moves of some people or groups to control the rice trade,” Mr. Aquino added.
In an interview with The Chiefs in One News, Mr. Piñol also flagged the “very tight” rice situation next year, with China expected to import five percent of its requirement amounting to 15 million metric tons (MMT).
“Next year, very tight ang rice situation because China is importing about five percent of its requirement. That’s 15 million metric tons,” he said in the talk show.
SMUGGLING CHARGES
Charged on Friday by the BoC were the responsible officers of consignee, Red Star Rising Corporation — Dante P. Lunar, Leonardo C. Mallari, Richel Paranete Llanes, August Presillas Templado, and Bernie Abrina Rubia.
They were accused of violations of Section 1401 (unlawful importation) in relation to Section 117 of the Customs Modernization and Tariff Act and Section 3 of R.A. No. 10845 (An Act Declaring Large-Scale Agricultural Smuggling as Economic Sabotage).
In a statement, the bureau said the accused “unlawfully import(ed) white sugar into the country with an aggregate value, including duties and taxes, of…P21,558,561.00.”
The bureau also said: “The three shipments of Red Star (were) composed of a total of sixteen twenty-footer containers, and were described in the manifests as containing packaging materials, kitchen utensils, and kraft paper. The shipments from Thailand arrived at the Port of Manila on different dates in July 2018. Upon inspection and physical examination, the shipment were discovered to contain white sugar. The shipments also lacked the required import permit from the Sugar Regulatory Administration.”
Similarly charged were “the responsible officers of Sta. Rosa Farms, namely Jomerito S. Soliman, Dolores Opancia, Mary Grace D. Cayanan, Marileen S. Avañez, and its Licensed Customs Broker, Diosdado M. Santiago.”
BoC said the accused imported 50,000 sacks of rice with a total value of P120.7 million, without the requisite import permit.
ON ABOLISHING NFA
For her part, Speaker Gloria Macapagal-Arroyo on Friday said she is open to “eventually” abolishing the National Food Authority over concerns on rice supply.
“At this point, maybe eventually. At this point in time, they have to import and when we tariffy importation then maybe NFA can be abolished because then it will be liberalized,” Ms. Arroyo told reporters in an ambush interview.
“It can stay, it can go. To me, I’m neither here nor there in that situation but right the more important thing is to be able to import rice and make it arrive before October,” she added.
Ms. Arroyo also shared Trade Secretary Ramon M. Lopez’s proposal to relax import restrictions on fish and meat as among the measures to manage inflation.
“According to the tariff and related matters of Sec. Lopez, he said, instead of reducing the tariff on fish which is already very low, they will relax the import restrictions on fish, the non-tariff barriers,” Ms. Arroyo said.
Meanwhile, Presidential Spokesperson Harry L. Roque, Jr. announced the NFA Council will authorize importation beyond the minimum access volume (MAV), which is currently at 805,200 metric tons of rice.
“The NFA Council will therefore allow further importation of rice by the private sector. We ask the cooperation of the NFA Administration in this regard,” Mr. Roque said in a Palace press briefing, Friday.
He said importing rice through the private sector is much faster and is likely to reduce corrupt practices. “Patungo na naman talaga tayo doon dahil iyong rice tariffication na na-approve na ng Mababang Kapulungan. Inaasahan na rin nating maaprubahan sa Senado,” Mr. Roque said in part. (We’re already heading there because rice tariffication has been approved by the Lower House. We await the Senate’s approval.)
Mr. Piñol, in his interview with The Chiefs, said, “I am not in favor. There are proposals to abolish NFA. Did you know that NFA is the only WTO (World Trade Organization)-acknowledged and -recognized trading agency in the Philippines. The NFA refomed could actually be the trading agency in the country.” — with reports by Charmaine A. Tadalan and Reicelene Joy Ignacio

3rd party ‘data package’ service provider sought in energy contracting program

By Victor V. Saulon, Sub-Editor
THE Department of Energy (DoE) is seeking a third-party “data package” service provider ahead of its plan to bid out 14 pre-determined areas in the Philippines under what it calls a more transparent energy contracting program.
“This is part of the Philippine Conventional Energy Contracting Program or PCECP,” said Energy Undersecretary Donato D. Marcos when asked to comment on the department order posted on the DoE website mandating a centralized review and evaluation committee for the awarding of the data package service agreement.
PCECP is the DoE’s simpler and faster public contracting program to facilitate a transparent and competitive system for awarding service and operating contracts for the exploration, development and production of the country’s petroleum and coal resources.
Mr. Marcos did not give a more detailed timeline on when the DoE will bid out the 14 areas, but said the data package service should aid would-be investors in coming up with their decision.
Under the terms of reference for the third-party provider, the data package service should include a virtual data room to host the Philippines’ petroleum data online for easy access and reference of prospective applicants or proponents.
The service is aimed at generating maximum participation and interest in the PCECP for petroleum. It is also expected to ensure that the data requirement of prospective applicants are readily available in an acceptable format through uploading of digitized data, 2D or 3D seismic data and related documents.
The data will be housed in a virtual data room that can be accessed through the payment of fees.
“The data is about the potential oil and gas deposit in the country,” Mr. Marcos said.
He said “frontier” areas that are not included in the DoE’s pre-determined areas may be identified, nominated and published by prospective investors for a Swiss challenge, a scheme that allows the original proponent to match the terms offered by a challenger.
He said under the PCECP, investors can “nominate any time of the day” the areas that they want to apply for a service contract.
Under the previous system, they had to wait for the DoE to schedule a Philippine Energy Contracting Round (PECR) before they could signify their intention to participate in oil and energy exploration and development.
Mr. Marcos said blocks within the contested areas in the West Philippine Sea are not included in the pre-determined areas.

July auto sales down over 24% — CAMPI/TMA

AUTO SALES fell 24.1% year-on-year in July, according to a joint monthly report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA).
According to the sales report released Friday, sales for the month totaled 28,038 units, against the 36,951 units sold a year earlier. The July sales are also down 4.5% compared with June.
In the seven months to June, auto sales dropped 14.4% year-on-year to 199,628 units.
CAMPI is one of two automotive associations that releases data on auto sales, with a membership consistin of auto companies that assemble locally. The association’s sales figures reflect the state of the market for mass-market cars, compared to higher-end cars which are usually imported.
Commercial vehicle sales, a proxy for durable-goods investment and broader economic activity, fell 13.1% year-on-year to 21,063 units in July. This brought year-to-date commercial vehicle sales to 136,669 units, down 10.8% from a year earlier.
The report did not mention the reason for the slowdown, but the auto industry has been expecting a drop in vehicle sales this year following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) program in January.
The tax reform program imposed higher excise taxes on vehicles, with those costing P600,000 and below being taxed 4%, up from 2%. The tax on cars priced between P600,000 and P1 million was adjusted to 10%, from the previous charge of P12,000 plus 20% of the amount in excess of P600,000.
Toyota Motors Philippines, which had a market-leading share of 38%, said buyers front-loaded their orders late last year in anticipation of the TRAIN Law.
The company reported a 14% drop in sales of Toyota vehicles to 73,136 units in the first half of the year.
The company expects demand to normalize by the fourth quarter, which will restore the industry to a growth track in 2019. — Arra B. Francia

MWSS says no imminent water shortage

THE Metropolitan Waterworks and Sewerage System (MWSS) has downplayed fears of a water shortage expressed by a water concession holder, saying that no shortage is imminent.
In a statement on Friday, MWSS Administrator Reynaldo V. Velasco said the supply of potable water is expected to be adequate over the remainder of President Rodrigo R. Duterte’s term, which ends in 2022.
“There is no looming water shortage,” he said.
Mr. Velasco was reacting to the fears raised by Manila Water Co., Inc. that the water from Angat dam for Metro Manila’s east zone, which amounts to 1,600 million liters per day (MLD), is inadequate to meet current demand of 1,650 MLD.
Geodino V. Carpio, Manila Water chief operating officer, told reporters on Wednesday that the company is filling the existing deficiency with supply from La Mesa dam, which he said was not meant for impounding water for distribution.
Mr. Carpio said Manila Water’s new water system in Cardona, Rizal province will add 100 MLD by year end, but it is sufficient to meet the increase in demand over the next two years, or until 2021 if “stretched.”
A proposed project in Laguna de Bay that can supply 250 MLD is up for MWSS approval. It can meet demand until 2023, when the Kaliwa dam in Quezon province is targeted for completion.
Mr. Velasco said under the curent government’s term, MWSS is in “catch-up mode in terms of creating new water sources following more than 30 years of not developing major water supply projects to address the growing demand in Metro Manila due to population growth and development.”
The government has yet to obtain financing for Kaliwa dam, which is expected to provide 650 MLD, of which about half will be allocated to Manila Water.
Under the previous government, the dam was envisioned as a public-private partnership, for which two parties had been pre-qualified. In 2016, the funding source was changed to official development assistance (ODA), with China providing the financing.
“While we respect the opinion of Mr. Carpio, it is best for Manila Water to properly present its P15-billion Laguna East Bay Project that can produce an additional 250 [MLD] water as part of the overall water security and sustainability program for the East Zone instead of making his personal analysis on the overall costing of the Kaliwa Dam Project that is expected to produce an additional 650 [MLD],” Mr. Velasco said.
For consumers, he said the cost of the P13.07-billion Laguna Lake project is expected to be P52 per cubic meter, and P73 per cubic meter for the Kaliwa dam.
The agency said Kaliwa dam is set to go forward once the MWSS board of trustees gives its approval to the winning bidder as recommended by its bids and awards committee.
MWSS has continued several water infrastructure projects started by the past administration to ensure water security: the Bulacan bulk water supply project and the Angat water security project, which is aimed at strengthening the dam to allow it to withstand a 7.2-magnitude earthquake.
MWSS said that in a meeting with Manila Water President and Chief Executive Officer Ferdinand M. de la Cruz and Mr. Carpio, the MWSS chief had been told that the cost of the Laguna Lake project had been reduced to P13.5 billion from P15 billion.
“We welcome any new water source projects such as as the Laguna Lake East Bay but the MWSS position is always to strike a balance between the overall cause and effect on any business development and the interest of the consuming public who will eventually shoulder the expected increase in water rates,” Mr. Velasco said.
He said that in the long run, it would be cheaper to construct new dams than maintain and operate water quality facilities to treat water from Laguna de Bay, which is turbid. — Victor V. Saulon

Metro Pacific’s Cavite toll roads adopt upgraded toll collection system

MPCALA Holdings Inc said it entered into a partnership with Egis Projects Philippines, Inc (EPPI) to operate an electronic toll collection system for the Cavite-Laguna Expressway and Manila-Cavite Expressway, which will allow transactions of 1,200 vehicles per hour.
“It’ s a first in the Philippines which is system capable to transact 1,200 vehicles per hour …without any barriers. It is a big jump from the RFID (radio frequency identification capacity) of 700 to 800 vehicles per hour at present. Our objective in using this new Toll Collection System is for our motorists to experience seamless, fast, and reliable cashless transactions, making them spend less time on the road and more time with their families,” MPCALA and CAVITEX president and chief executive officer Luigi L. Bautista said in a statement.
“With Egis, bringing this technology to the MPTC tollroad networks, we will expect a more efficient travel experience, and also boost tourism, trade and commerce in the areas being linked by our thoroughfares,” Mr. Bautista added, referring to Metro Pacific Tollways Corp.
CALAEX is a MPCALA concession, while CAVITEX is the concession of Metro Pacific Investments Corp. wholly-owned subsidiary Cavitex Infrastructure Corporation.
EPPI president and managing director Jean-Claude Neumann said that the toll collection system will be a “breakthrough” in the industry by making transactions free-flowing.
“One of the advanced features of this ETC (Electronic Toll Collection) system is the automatic license plate recognition solution technology which will help motorists experience uninterrupted and faster toll transactions. Through these unhampered transactions, we can lessen their travel time,” Mr. Neumann added.
According to MPTC, the system will be installed in phases as each section of CALAEX is completed and become operational, while upgrades will be conducted by CAVITEX to its existing system.
The new system will be designed to be compatible and interoperable with other toll roads’ ETC systems, MPTC said.
CAVITEX is currently being expanded by MPTC with the construction of a 7.7-kilometer C5 South-Link which will traverse Taguig, Las Piñas, and Parañaque.
CALAEX is a 45-km road between Mamplasan, Laguna connecting to CAVITEX in Kawit. The Laguna section is expected to be opened by December.
MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Reicelene Joy N. Ignacio

AC Infra, Zalora unit in logistics investment tieup

THE infrastructure unit of Ayala Corp. (AC) is teaming up with Germany’s Brillant 1257 GmbH & Co. Vierte Verwaltungs Kg. (Brillant) to form a new holding company that will handle investments in the logistics sector.
In a disclosure to the stock exchange after Friday trading, Ayala Corp said its unit AC Infrastructure Holdings Corp. (AC Infra) will hold a 60% interest in the new firm, while the 40% balance will be held by Brillant.
The newly-incorporated firm will handle AC’s investments in courier and freight forwarding services, according to the disclosure.
AC’s partner for the venture is an affiliate of online fashion platform Zalora. In September 2017, the Ayala group also acquired a 49% stake in Zalora’s operator, Global Fashion Group, in a bid to ride the growth opportunities offered by e-commerce.
Earlier this year, AC Infra also announced that it will be investing in firms that offer fulfillment solutions services in partnership with Brillant.
The Ayala group has recently been ramping its logistics business. Prime Orion Philippines, Inc. (POPI) of Ayala Land, Inc. is being positioned as a developer of logistics facilities and industrial parks.
POPI acquired in April a majority stake in Laguna Technopark, Inc., which develops logistics facilities. The 460-hectare Laguna Technopark is located in Santa Rosa and Biñan.
Ayala Corp.’s net profit attributable to the parent rose 7% to P16.1 billion in the first six months of 2018, driven by a 20% increase in revenue to P148.7 billion.
Ayala Corp rose 1.01% or P10 to P1,000 in Friday trading. — Arra B. Francia

FDC hopes to complete Clark hotel expansion by SEA Games

FILINVEST Development Corp. (FDC) is hoping to complete the renovation and expansion of its Quest Hotel and Conference Center in Clark, Pampanga in time for the 2019 Southeast Asian Games.
Quest Hotel General Manager Patrick Beck said the group will develop a new building that can accommodate 250 additional rooms.
“We have an additional 250 rooms which we hope can be built some time next year because we need it. That will be another tower on the north side of the building, that’s where the parking lot is at,” Mr. Beck told reporters at a news conference at the hotel on Aug. 23.
Quest Hotel currently offers a total of 303 rooms, which FDC renovated after taking over from the previous operator, the Holiday Inn group. Mr. Beck noted that the hotel’s average occupancy rate is around 79%, pointing to the potential for greater room demand.
Rooms in the second to sixth floors of the 12-storey building are expected to be completed by next year.
“Hopefully earlier, because Clark will be the main venue for the SEA Games. We hope to be ready before that, because we know the athletes are going to be here earlier. So we’re very much excited for that,” Mr. Beck said.
Aside from the additional rooms, the Filinvest group will open a new restaurant called Mekeni Live in the hotel lobby, which can seat up to 220 diners. The company said the buffet restaurant will feature cook-to-order stations.
FDC said a new building will have a grand pavilion targeted at the MICE (meetings, incentives, conferences, and events) market.
“The grand pavilion will be close to the golf course. That’s another building, we have the provision for that. Probably again by the end of the year, and it will be a building on its own for events. We have a high demand from the MICE business,” Mr. Beck said, noting that the ballroom will accommodate 400 people.
Quest Hotel is within the 201-hectare Filinvest Mimosa+ Leisure City, around half of which is covered by a 36-hole golf course.
FDC plans to invest $200 million to develop the estate’s entertainment and hospitality components, which will also include a casino, lifestyle mall, and another five-star hotel. With these projects in the pipeline, FDC is positioning Mimosa+ Leisure City as a leisure and business destination in the Clark Special Economic Zone.
FDC was unchanged at P7.05 in Friday trading. — Arra B. Francia