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House moves to relax foreign business hurdles

A BILL seeking to amend Republic Act No. 7042, or the Foreign Investments Act of 1991 in order to further open up the Philippine economy to foreign participation secured committee-level approval in the House of Representatives on Tuesday.
House Bill No. 4067, authored by Deputy Speaker Arthur C. Yap of the 3rd district of Bohol, proposes to delete provisions relating to the “practice of professions” from the Foreign Investment Negative List (FINL), thereby lifting the restriction on foreigners practicing their professions in the Philippines.
The measure also proposed to reduce the hiring threshold of foreign businesses wanting to set up shop in the Philippines with a minimum $100,000 paid-in capital to 15 direct hires from 50 currently under RA 7042.
“Hopefully, with these two changes, we can be faithful to the spirit of the Foreign Investments Act and that is to continually liberalize and open up the economy to foreign investments, thereby creating jobs,” Mr. Yap told the joint hearing of the Economic Affairs and the Trade and Industry committees.
“We’re trying to put in order our investment laws to send a clearer message to our investors.”
John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines, Inc. (AmCham), told lawmakers at the hearing: “This law, if it’s legislated, along with the PSA (Public Service Act), which has been passed in the House but not yet in the Senate, would put meat on the bones of that point [of President Rodrigo R. Duterte’s socioeconomic agenda] because, so far, since that (agenda) was released in 2016, no legislated reforms have been heard, so we encourage the Congress to continue with this and others.”
The House earlier approved House Bill 5828, amending the Public Service Act by providing a clearer definition of public services and public utilities in order to lift foreign ownership restrictions in telecommunications.
“The Philippines has created since the 1987 Constitution the perception that it’s closed to foreign professionals,” Mr. Forbes said. “I think the foreign chambers would like to support the proposal of the Deputy Speaker to simply remove it from the Foreign Investments Act.”
On the proposed change in direct hiring threshold, he added: “For $100,000 you cannot employ 50 workers because the minimum wage of the National Capital Region, when this was legislated, was P142, today it’s P475,” he explained. “For P5.4 million, which is $100,000, we cannot sustain a labor force of 50 persons.” — Charmaine A. Tadalan

Duterte says tissue samples ‘not yet cancerous’

“HINDI pa ako cancerous.”
With those words, President Rodrigo R. Duterte on Tuesday evening sought to lay to rest speculations he was stricken with the disease.
“It was negative…” he told reporters in a press conference in Malacañang when pressed for results of tests he underwent at the Cardinal Santos Medical Center in San Juan, Metro Manila.
The public has been clamoring for information about Mr. Duterte’s health after the 73-year-old missed two official events last week.
“He disclosed to us that the result of the test was negative, the one where they took samples from his intestines,” Eduardo M. Año, officer in charge of the Department of Interior and Local Government, told reporters earlier that day in an event posted on Facebook live.
Mr. Año said Mr. Duterte made the disclosure during a Cabinet meeting on Monday night. The president made an unscheduled visit to a hospital when doctors asked him to repeat digestive tract procedures three weeks after similar tests.
The Philippine constitution provides for the public to be told of the state of health of an incumbent president, if serious. If the leader dies in office, is permanently disabled or removed through impeachment, the vice-president succeeds to serve out the rest of a six-year, single term.
Mr. Duterte insisted on Tuesday that his condition was “not for public consumption” and that he was legally obliged to inform the public of any serious health condition only through his Cabinet.
Mr. Duterte’s health was a constant source of speculation after he disappeared from public view for a week last year but his aides dismissed rumors of his medical condition.
Over the weekend, Mr. Duterte was in Hong Kong with his partner and young daughter on an unannounced trip. — with Reuters

Velarde firm sues NTC over 3rd telco bidding rules

By Denise A. Valdez, Reporter
NOW Telecom Company, Inc. is suing the National Telecommunications Commission (NTC) over alleged insertions of new requirements in the terms of reference for the new major telecommunications player.
In a statement on Tuesday, the affiliate of listed Now Corp. said it filed the case against the NTC at the Manila Regional Trial Court Branch 42, questioning certain items in the terms of reference, such as the “(1) P700 million ‘participation security’; (2) P14 to P24 billion performance security; and (3) P10-million non-refundable appeal fee,” saying these are barriers to entry.
Under Sec. 11 of the terms of reference, the company should post a performance security in favor of the NTC. The performance security should be maintained at 10% of the remaining cumulative capital (capex) and operational expenditure (opex) commitments for the rest of the commitment period.
An earlier draft only required that the performance security be either 10% cash bond or 30% surety bond of the annual capex and opex.
In the final terms of reference, the participation security was also raised to P700 million from the original amount of P500 million.
Now Telecom said these changes, which it claimed were not discussed during the public hearings, violate existing laws and can be considered “onerous, confiscatory and potentially extortionary.”
“Now Telecom is suing NTC to protect its public shareholders and President Rodrigo Duterte from any suspicion that he is complicit to the money making schemes in the TOR for the third telco,” Now Corp. President and Chief Executive Officer Mel V. Velarde said in the statement.
Mr. Velarde said the company would prefer Mr. Duterte receive the bidding documents for the third telco auction on Nov. 7. He said it would be “best” if Mr. Duterte, not the NTC, choose the new major telco player.
Department of Information and Communications Technology (DICT) Acting Secretary Eliseo M. Rio, Jr. defended the higher participation security, saying it has been “set high to more or less guarantee and assure the government that the third telco will deliver its commitments.”
In a statement, Mr. Rio said the appeal fee was also deemed necessary to prevent further delays in the entry of the third telco.
“DICT and NTC take exception to Now Telecom’s allegation that this initiative is a money-making scheme. All the above-mentioned fees are consistent and even lower than government standards and the requirements of RA 9184. This is to attract possible participants while ensuring that the winner will be able to withstand intensive competition against the entrenched duopoly,” he said.
Mr. Rio said Now Telecom could have earlier raised the questions on the terms of reference, which were published late last month.
“The selection of a third telco is no small matter and to set the bar low for those who apparently cannot meet the standards is detrimental to the people who will directly benefit from a third telco that has not only the technical capacity, but more importantly the financial muscle to compete with the giants, Globe and Smart,” he said.
Prior filing a case versus the NTC, Now Telecom bought selection documents from the government agency on Monday, firming up its interest to participate in the bidding.
Aside from Now Telecom, other prospective bidders that acquired the bid documents are Dennis A. Uy’s Udenna Corp., Norway’s Telenor Group, a consortium formed by TierOne Communications International, Inc. and Luis “Chavit” C. Singson’s LCS Group of Companies, and a local company that refused to be named.
The DICT set the deadline for submission of bids on Nov. 7, and the awarding of the third telco before Christmas.
Mr. Rio previously said the DICT and NTC are committed to follow the timeline, in adherence to the request of Mr. Duterte.
The President said last month he will “take over” the selection of the third player if it isn’t named by November.

JV to develop new dam in Rizal

By Victor V. Saulon, Sub-editor
A JOINT venture (JV) company is developing a new dam in Montalban, Rizal that can serve as a medium-term water source for Manila Water Co., Inc., according to officials of state-led Metropolitan Waterworks and Sewerage System (MWSS).
MWSS Chief Regulator Patrick Lester N. Ty on Tuesday said the agency’s corporate office, which is in charge of finding new water sources, is looking at a number of projects as an alternative or buffer for Metro Manila’s east zone concessionaire.
“They are studying several projects but the one for Manila Water that was approved during the last rate rebasing was the Wawa-Tayabasan project,” he told reporters during a water forum in Quezon City.
MWSS Administrator Reynaldo V. Velasco said the project is being undertaken by a joint venture company owned by businessmen Oscar I. Violago and Enrique K. Razon, Jr. He said the project was originally owned by Mr. Violago, who has since sold control to Mr. Razon.
“There has to be an agreement between Manila Water and whoever is doing the joint venture,” he said.
In August, Mr. Velasco said Mr. Violago, along with a partner, had signified their intention to build a 92-meter dam in Montalban to help mitigate flooding in Rizal province. If given the green light, the dam is expected to deliver at least 500 million liters per day (MLD), he added.
“That’s the project in the Wawa dam that includes Mr. Violago and Mr. Razon,” Mr. Ty said, adding nothing is final yet.
The need to find a new water source for Manila Water comes as the company has fully used up and even exceeded its 1,600 MLD allocation from Angat dam. Company officials had said demand in the east zone runs as high as 1,630 to 1,640 MLD. It addresses the deficiency by getting water from La Mesa dam, which was not designed for that purpose. It projects demand within its concession to grow by 40 to 50 MLD yearly.
“I have yet to study if it’s prudent and efficient. I have to reserve my judgment right now because I don’t know yet… if it would be approved or I would reduce the tariff adjustment depending on the feasibility study that we’ll be conducting,” Mr. Ty said.
He said the new water source should be enough to fill up Manila Water’s need in the medium term or until 2022.
“We really need another alternative water source and we are exploring all options. The option right now on the table is the Wawa-Tayabasan [dam],” he said.
He said the conditional approval issued by the regulatory office last month is still subject to a final evaluation. He was referring to the new base rate for Manila Water ranging from P6.22 to P6.50 per cubic meter (/cu.m.) for 2018 to 2022.
The increase will be collected from consumers on a staggered basis — P1.46 starting this month; P2.00 on Jan. 1, 2020 and another P2.00 on Jan. 1, 2021; and between P0.76 and up to P1.04 on Jan. 1, 2022.
“We made sure that the approval states ‘up to’ that means we are allowed to reduce it further if needed,” Mr. Ty said.
Manila Water proposed a water treatment plant on the east bay of Laguna Lake as the option to cover the company’s expected water shortfall by 2021. The proposed capital expenditure for the project was not considered by the MWSS during the fourth regulatory period.
Under the proposed Wawa-Tayabasan dam, the Razon-Violago group will be selling its water to Manila Water, which will evaluate the quality.
“There are some components there that Manila Water needs to build. For example, the water treatment plant, the distribution lines to the metropolis. They need to be built by Manila Water. They have projections they submitted. I need to review them more,” he said. “We don’t want to pass an expensive project to the public and unduly burden them.”

Newcomers make up half of this year’s Palanca winners

A TELEVISION reporter, a father and daughter, and a former entertainment reporter were among the winners in this year’s Palanca Awards, the annual award that recognizes outstanding Filipino literary writers.
College professor and first-time winner Dulce Maria V. Deriada bagged third place for her short story in Hiligaynon, “Candelaria,” while her father Leonico P. Deriada — a Palanca hall of fame recipient in 2001 — also received the third prize for his short story in Cebuano, “Dili Baya ko Bugoy.”
Ms. Deriada told BusinessWorld at the sidelines of the awarding ceremony on Oct. 5 that she usually writes in English and “it’s ironic” not to write in the Hiligaynon language, which she knows by heart. So she entered “Candelaria” in the competition and was surprised to win — especially since her father criticized her piece prior to her submitting it to the literary competition and said he didn’t like it.
“Do not be afraid to take risks and learn how to accept criticism because otherwise you will not improve and grow as a writer, as a person,” is her advice to writers, young and old, who may want to join competitions like the Palancas.
Ms. Deriada was among the 28 first-time awardees this year, from the total 54 winning writers.
Other first-timers were ABS-CBN reporter Jefry Canoy who wrote the essay “Buhay Pa Kami: Dispatches from Marawi” which won first prize in the Essay — English category. His essay is about the siege of Marawi which he covered for his network. Also a winner in the same category is former Philippine Star entertainment reporter Chuck D. Smith who bagged third prize for “Origin Story,” which is about his childhood experiences and memories believing that he was Pepsi Paloma’s son.
Meanwhile, this year’s Gawad Dangal ng Lahi was Alfred “Krip” Yuson who was recognized for his contributions to the Philippine literary scene, which include novels, poetry, short fiction, essays, and children’s stories. The prolific writer has received 13 Palanca Awards and was elevated to the Palanca Hall of Fame in 2001. He received his first Palanca at the age of 23, and his second seven years later. As he accepted the lifetime achievement award, he told the audience not to be disheartened and instead continue writing.
Writing is also about chronicling the truth. In a speech by Criselda Cecilio-Palanca, she said the challenge of the writers is “to write, not just the truth but the enlightened, ultimate purpose of truth. To put forth words, not just to enter another provocative idea or opinion in the social media superhighway.”
She said the most notable purpose of a wordsmith “is to positively transform, transcend, liberate. To pierce through the darkness, noise and confusion of our times with a shaft of light that leads to the greater light.
“You have been gifted with great power, which you have to wield with great responsibility. You have to honor the great truths that teach us important lessons to help make it a better world. I congratulate you all, while expressing the certainty that you will not shirk the responsibility of manifesting the unique varieties of your powerful imagination in offering all generations what is undeniably real,” she added.
Now on its 68th year, the Palanca has been conferred to 2,441 works, composed of 625 short stories, 408 poetry collections, 250 essays, 383 one-act plays, 213 full-length plays, 60 teleplays, 74 screenplays, 181 childrens stories, 34 pieces of futuristic fiction, 116 student essays, 42 novels, and 55 poetry collections for children in English, Filipino, and regional languages. — Nickky Faustine P. de Guzman

Megaworld allots P35 billion for Pasig township

MEGAWORLD Corp. will be spending P35 billion to develop its township in Pasig City called Arcovia City, launching the first condominium to rise in the property.
Located along C-5 road in Pasig, the 12.3-hectare Arcovia City will offer a mix of office, residential, retail, and lifestyle mall components.
The first residential project is the 18 Avenue de Triomphe, a 37-storey condominium slated to bring in P4 billion in sales. The building will house a total of 576 residential units ranging from studio sized up to 32.5 square meters (sq.m.), one-bedroom (up to 63 sq.m.), two-bedroom (up to 110.5 sq.m.), and three-bedroom (up to 154 sq.m.).
All units at 18 Avenue de Triomphe will have their respective balconies, giving residents a view of Eastwood, Ortigas, Fort Bonifacio, and Antipolo.
Amenities include a swimming pool, children’s playground, outdoor fitness park, game and entertainment room, fitness center, event hall, outdoor lounge, and a viewing deck.
Megaworld expects to complete the project by 2023. 18 Avenue de Triomphe is part of the P80 billion worth of residential projects the company is launching this year, banking on the strong demand from local buyers, overseas Filipino workers, and foreign investors.
At the same time, the listed developer is currently building its first office tower in the township called One Paseo. The 17-storey building will offer around 23,000 sq.m. of leasable office spaces. The company is also set to build a lifestyle mall with its own walk parks, viewing deck, and leisure facilities.
Arcovia City will also feature a museum topped by a monument designed by Spanish sculptor Gines Serran Pagan. The museum is being positioned to be the township’s major attraction, alongside a 62-feet high arch monument inspired by the Arco de la Victoria in Madrid, Spain.
“Our vision for this new township is to inspire the young generation to persevere and work harder to attain their own successes and victories in life. There is a deeper story embedded into this development, and we will tell that story through the installations and attractions around the township,” Megaworld Senior Vice President Kevin Andrew L. Tan said in a statement.
Megaworld has committed to spend P60 billion in capital expenditures this year to support its lineup of projects.
The company delivered a 13% increase to its net income attributable to the parent to P7.25 billion in the first six months of 2018, following a 10% jump in revenues to P26.8 billion.
Megaworld is the property firm of tycoon Andrew L. Tan, who also has investments in liquor, gaming, and quick service restaurants.
Shares in Megaworld ended flat at P4.15 each at the stock exchange on Tuesday. — Arra B. Francia

Complete list of winners 2018 Palanca Awards

KABATAAN DIVISION
• Kabataan Sanaysay: 1st Prize, Jack Lorenz Acebedo Rivera, “Paglaya Mula sa Pagtakas”; 2nd Prize, Jacob Renz R. Ambrocio, “Sino ang Lumansag sa Lunday ni Lola Basyang?”; 3rd Prize, Maria Jamaica S. Columbres, “Gulugod sa Pagsibol ng Binhi”
• Kabataan Essay: 1st Prize, Floriane T. Taruc, “Worlds Behind Words”; 2nd Prize, Jaz Varon Villanueva, “Boundless”; 3rd Prize, Jana Gillian Ang, “A Passage to Reading”
FILIPINO DIVISION
• Maikling Kuwento: 1st Prize, Eugene C. Soyosa, “Gina”; 2nd Prize, Andrew A. Estacio, “Ang Kanonisasyon ng mga Santa Santino”; 3rd Prize, Luna Sicat Cleto, “Tatlong Proposisyon ng Puting Hangin”
• Maikling Kuwentong Pambata: 1st Prize Jerwin Eileen G. C. Tarnate, “Ang Higad at ang Paru-paro”; 2nd Prize, Eugene Y. Evasco, “Siyap ng Isang Sisiw”; 3rd Prize, Early Sol A. Gadong, “Maraming-Maraming-Marami”
• Sanaysay: 1st Prize, Gil A. Dulon, Jr. Amoral, “Ang Siyensya Subalit May Boses Din Ang Mga Maso”; 2nd Prize, Adelma L. Salvador, “Kambak-kambak”; 3rd Prize, Iza Maria G. Reyes, “Hindi Ako Dalisay”
• Tula: 1st Prize, Paul Alcoseba Castillo, “Luna’t Lunas”; 2nd Prize, Mark Anthony S. Angeles, “Ang Babae sa Balangiga at iba pang Tula”; 3rd Prize, Noel Galon, “Ang Bata sa Panahon ng Ligalig: Mga Tula sa loob at labas ng Bayan ng San Diego”
• Tula Para sa mga Bata: 1st Prize, Paterno B. Baloloy, Jr., “Paumanhin ng Kuting”; 2nd Prize, Will P. Ortiz, “Himbing na Kuting at iba pang Tula sa Ilalim ng Araw”; 3rd Prize, Noel P. Tuazon, “Klik Madyik”
• Dulang May Isang Yugto: 1st Prize, Michelle Josephine G. Rivera, Kaharian ng Pinto; 2nd Prize, Maynard Gonzales Manansala, Tao Po; 3rd Prize, Allan B. Lopez, River Lethe
• Dulang Ganap ang Haba: no winners for the 1st and 2nd Prizes; 3rd Prize, Rolin Cadallo Obina San Nicolas, Ang Sarsuwela
• Dulang Pampelikula: 1st Prize, James Ladioray, 11 Septembers; 2nd Prize, Arden Rod B. Condez, John Denver Trending; 3rd Prize, Andrian M. Legaspi, Pandanggo sa Hukay
REGIONAL DIVISION
• Short Story — Cebuano: 1st Prize, Januar E. Yap, “Baradero”; 2nd Prize, Dave T. Pregoner, “Sunog”; 3rd Prize, Leoncio P. Deriada, “Dili Baya ko Bugoy”
• Short Story — Hiligaynon: 1st Prize, Early Sol A. Gadong, “Sa Lum-ok Sang Imo Suso”; 2nd Prize, Alice Tan Gonzales, “Haya”; 3rd Prize, Dulce Maria V. Deriada, “Candelaria”
• Short Story — Ilokano: 1st Prize, Ariel Sotelo, “Tabag Gasanggasat”; 2nd Prize, Paul Blanco Zafaralla, “Sarming”; 3rd Prize, Jaime M. Agpalo, Jr., “Nakakidem-a-Simumulagat”
ENGLISH DIVISION
• Short Story: 1st Prize, Joe Bert Lazarte, “Describe the Rapture”; 2nd Prize, Francis Paolo M. Quina, “Pigs”; 3rd Prize, Matthew Jacob F. Ramos, “The Final Bullet”
• Short Story for Children: no winners for the 1st and 2nd Prizes; 3rd Prize, MaryRose Jairene Cruz-Eusebio, “I Have Two Mothers”
• Essay: 1st Prize, Jefry Canoy, “Buhay Pa Kami: Dispatches from Marawi”; 2nd Prize, Ronnie E. Baticulon, “Some Days You Can’t Save Them All”; 3rd Prize, Chuck D. Smith, “Origin Story”
• Poetry: 1st Prize, Rodrigo V. dela Peña, Jr., “Self-portrait with Plastic Bag”; 2nd Prize, Shane Carreon, “The Gods who Dissolved under our Tongues and other Poems”; 3rd Prize, Jose Luis B. Pablo, “To Desire in Liturgy”
• Poetry Written for Children: 1st Prize,- Maria Amparo Nolasco Warren, “Lola Elina Maria’s Savory-Sweet Cookbook of Poetry”; 2nd Prize, Sigrid Marianne P. Gayangos, “Of Monsters, Math and Magic”; 3rd Prize, Roselle Eloise B. Bunayog, “Brave, Undying Warriors”
• One-Act Play: 1st Prize, Katrina M. Bonillo, Burying Mamang in Sugar; 2nd Prize, Joe Bert Lazarte, Senator Pancho Aunor’s Blue Balls of Despair and Disillusionment; 3rd Prize, Luciano Sonny O. Valencia, Leavings
• Full-Length Play: 1st Prize, Beryl Andrea P. Delicana, Mango Tree; 2nd Prize, Patrick James M. Valera, Symphony; 3rd Prize, Dominique La Victoria, Toward the Fires of Revolution

Ricky Davao, Rina Reyes return to the stage

THIS MONTH, film and TV actors Ricky Davao and Rina Reyes return to the stage in Tanghalang Pilipino’s (TP) Filipino adaptation of Georges Feydeau’s classic farce, A Flea in Her Ear, on Oct. 18-21 at the Cultural Center of the Philippines (CCP).
Titled, Baka Naman Hindi, Mr. Davao and Ms. Reyes play the husband and wife Victor and Alicia Delgado in the play set in 1907 Philippines. Alicia fears that her husband is cheating on her and, wanting to catch him in the act, start the ball rolling for the mayhem and misunderstandings that come after.
This adaptation was created by Virgilio Beer Flores.
“My father (Charlie Davao) was in the play. I must have been about 13 then. It was the very first play I had ever seen and I was fascinated,” Mr. Davao was quote as saying in a press release. That 1970s production featured some of the country’s great actors including Vic Silayan and Bernardo Bernardo and was produced and directed by the current CCP President, Arsenio Lizaso.
Mr. Davao said that this was one of the reasons why he decided to become an actor. A few years after watching his father perform in the play, he starred in TP’s first ever production — Dalagang Bukid — where he played an American character. He went on to perform in various plays including Bongbong at Kris, In Frailty’s Grace, Silang Nalugmok sa Gabi, Lihis, and Felipe de las Casas, among others.
Meanwhile, Ms. Reyes, who has focused on film and TV, noted at the sidelines of the press conference on Oct. 2 at the CCP that “theater is for my soul,” and that she relishes being back on the Tanghalang Pilipino stage.
“This is me coming out of hibernation, me coming home [to theater],” Ms. Reyes said.
Ms. Reyes used to perform regularly with the theater group, having played in Bienvenido Noriega’s Bituing Marikit during the group’s first season, and in the twinbill Paraisong Parisukat/Kailangan: Isang Tsaperon directed by Spanky Manikan.
Also joining the cast of Baka Naman Hindi is Lou Veloso, Tex Ordonez de Leon, Nazer Salcedo, Rafa Siguion Reyna, Nelsito Gomez, Raffy Tejada, Gilleth Sandico, Mosang, Anthony Falcon, Jef Henson Dy, Felipe Ronnie Martinez, and Wenah Nagales.
“This is my first time doing a comedy and a farce and it’s really challenging because it’s very technical,” Mr. Siguion Reyna told reporters shortly before the press conference.
Directing this adaptation is Dennis Marasigan who functions both as the director and lighting designer. Mr. Marasigan is also directing TP’s Ang Pag-uusig, an adaptation of Arthur Miller’s The Crucible which is now on its second run after a successful 2017 production. Ang Pag-uusig runs until Oct. 28 at the CCP Studio Theater.
Baka Naman Hindi has performances on Oct. 18 to 21 at the Tanghalang Aurelio Tolentino (CCP Little Theater). There are 8 p.m. performances on all four days, and 3 p.m. matinees on Oct. 20 and 21. Tickets cost P1,000 and P1,200 (with discounts for students, senior citizens, government employees and groups) and are available at the CCP Box Office (832-3704) and Ticketworld (www.ticketworld.com.ph or 891-9999). — Zsarlene B. Chua

Bill fortifying SSC, SSS approved at bicam level

SSS-Social Security System
BW FILE PHOTO

THE BILL allowing the Social Security Commission (SSC) to raise pension contributions starting next year hurdled the bicameral conference committee on Tuesday, with Congress fully adopting the Senate’s version.
Both chambers approved the substitute bill yesterday, which is scheduled to be ratified today before it is endorsed to President Rodrigo R. Duterte for enactment.
Social Security System (SSS) President and Chief Executive Officer Emmanuel F. Dooc said that although the measure’s current form relaxes spending pressures, he noted some opportunity costs that would have helped reduce the deficit in their pension payouts after the bicam left out some key provisions.
This includes the measure that would have allowed the SSS to set up mandatory insurance policies for its members.
“Ang hindi na-adopt sa akin na (The provision not adopted that for me is) critical and important is the authority to do insurance business. Hindi naisama (It was not included) because we would like to also take advantage of our wide membership. We have a captive insurance just like GSIS (Government Service Insurance System) which grows very significant income or revenues from its insurance business,” he said.
Mr. Dooc said they would defer proposing the measure indefinitely.
The committee also agreed to lower the delinquency penalty rate equivalent to two percent per month from the date the contribution falls due until paid, from three percent currently.
“We have been so used to imposing 3% so malaking bawas din sa income namin (so this will reduce our income significantly),” said Mr. Dooc.
According to the SSS official, they expect an additional P16 billion in revenues in the first year of the proposal’s implementation.
“It’s not huge kasi (because) before we envisioned collecting three percent additional contribution in one lump sum. That would have given us over P50 billion a month, but I’m happy that we have this law and long-term there are provisions to collect more,” he said.
The committee likewise agreed to reduce the mandatory actuarial assessment of the fund to every three years, from four years.
The bill allowed SSC to increase the contribution rate by one percentage point every other year starting 2019 at 12%, until 15% by 2025, from the current 11%. It also gradually raises the minimum and maximum monthly salary credits — the basis for the contribution payments — every other year starting 2019 at P2,000 and P20,000, respectively, until P5,000 and P35,000 by 2025, from P1,000 and P16,000 currently.
Starting 2019, 8% of the 12% will be shouldered by the employer, and 4% by the employee, from the current 7.37%-3.63% split. By 2025, the sharing scheme will be 10% for the employer and 5% for the employee.
Mr. Dooc said the SSS will pay out about P185-190 billion in benefits this year, but only generate P177 billion in contribution collections, resulting in a deficit of about P8 billion to P13 billion. Although the above-mentioned P16 billion will cover the deficit, Mr. Dooc said the expanded maternity leave bill ratified by Congress last month will cost the SSS about P4-5 billion more.
“Still a deficit, but the deficit will be much lower if we do not collect any contributions. So we will still tap the investment income. There are also other measures and initiatives that we have done or undertaken in order to further boost our finances,” he added.
Mr. Dooc also noted that the second P1,000 pension hike — the second trance of the P1,000 benefit increase in 2017 — may give the SSS another headache if Mr. Duterte fulfills his promise to implement it in 2019.
“If we pay the second P1,000…that will be more or less P36 billion, and we will be collecting only P16 billion for the one percent[age point] additional contribution,” he said.
Moreover, the bill also introduces an Unemployment Insurance or Involuntary Separation Benefits, which will be available to SSS members not over 60 years old who are involuntarily separated from employment. These members shall be paid benefits in monthly cash payments equivalent to 50% of the monthly salary credit for two months at most.
It will also include the compulsory coverage of overseas Filipino workers to social security protection.
The measure also requires the SSS to invest at least 15% of its reserve funds in domestic investment vehicles, and foreign currency deposits.
The bill will also give the SSC authority to condone, enter into a compromise or release, in whole or in part, penalties imposed to delinquent social security contributions; while the SSS will also have the power to adopt or approve the annual and supplemental budget including salaries and allowances of the SSS personnel, and to authorize such capital and operating expenditures and disbursements of the SSS as may be necessary and proper for the effective management and operation of the SSS.
The SSS’ new charter, which was identified as a priority bill, was approved in the House of Representatives was approved on third and final reading in January last year, while the Senate approved it on Monday.
Mr. Dooc said he expects the bill to be signed by the President before the end of the year.
“This will ensure a robust strong and more stable SSS. I think it is important the SSS should have a financial robust fiscal condition so that we can fulfill the mandate given to us to provide meaningful and universal social security protection to our workers,” said Mr. Dooc.
But Mr. Dooc said he is confident that the contribution “can improve the fund life,” which currently lasts until 2032. — Elijah Joseph C. Tubayan

Hedcor hydroelectric plant fully contracted to 11 distribution utilities

DAVAO CITY — Aboitiz Power Corp. (AboitizPower) subsidiary Hedcor, Inc.’s 69.8-megawatt (MW) hydroelectric plant in Manolo Fortich, Bukidnon is now fully contracted to 11 distribution utilities in Mindanao, nine of which are electric cooperatives and two private firms.
Jaime Jose Y. Aboitiz, executive vice-president for distribution of AboitizPower, said the run-of-river facility “will soon start operations… to deliver renewable power.”
Hedcor is targeting commercial operations of the plant by the first quarter 2019.
Speaking at an event it hosted for the media over the weekend, Mr. Aboitiz said the plant is part of the expansion of the company’s “generation portfolio in Mindanao, anchored on our balanced mix strategy.”
The two private firms that signed contracts with Hedcor are AboitizPower subsidiaries Davao Light and Power Co. and the Cotabato Light and Power Co.
Davao Light serves Davao City and parts of Davao del Norte province, while Cotabato Light covers Cotabato City.
The cooperatives that will buy supply from Hedcor include the Zamboanga del Norte Electric Cooperative, Zamboanga del Sur Electric Cooperative 1, Misamis Occidental Electric Cooperative 1, Zamboanga del Sur Electric Cooperative 2, Siargao Island Electric Cooperative, Bukidnon Second Electric Cooperative, Surigao del Sur 1 Electric Cooperative, South Cotabato 2 Electric Cooperative and Cotabato Electric Cooperative-Main.
In a previous statement, AboitizPower said the Bukidnon plant is part of its commitment this year to increase capacity by about 500 MW. The other new plants are the Pagbilao unit 3, a coal-fired power plant inaugurated in June, and Therma Visayas, another coal-fired plant in Toledo City, Cebu.
The company aims to increase capacity to 4,000 MW by 2020. — Carmelito Q. Francisco

Gov’t makes partial award of T-bonds as rates surge

THE GOVERNMENT accepted P9.74 billion worth of reissued five-year Treasury bonds (T-bond) yesterday amid tepid demand as investors continued to react to the September inflation print.
The Bureau of the Treasury made a partial award of the T-bonds on offer even as total tenders reached P15.73 billion, a tad higher than the P15-billion program
The papers, which have a remaining life of four years and four months, fetched an average yield of 7.342%, surging 144 basis points (bp) from 5.902% tallied in the previous auction last Aug. 14. The papers carry a 5.5% coupon rate.
Prior to the awarding, rates for the five-year bonds at the secondary market were higher at 7.818%.
At the close of trading, the yield on the bonds climbed to 8.0357%.
After the auction, Deputy Treasurer Erwin D. Sta. Ana said the Treasury opted to partially award the bonds as the rates “came in a little higher than what we’ve expected.”
“Although the rates were in the cut-off, that’s within the initial feedback from our [eligible dealers]. So based on our survey, it reflects the rate at which we cut the auction already,” Mr. Sta. Ana told reporters yesterday.
He added that investors opted to hold back their bids, awaiting confirmation that the country’s inflation rate has already peaked in September.
Headline inflation accelerated to a fresh nine-year high of 6.7% last month, faster than the 6.4% tallied in August.
However, the September print was a bit slower than the 6.8% median estimate in a BusinessWorld poll, which matched the Bangko Sentral ng Pilipinas’ (BSP) own projection.
Both the central bank as well as the government’s economic team are of the view that inflation has already peaked and will clock in slower in the last three months of the year.
“Of course, we’re still on a rising rate environment and tendency for market participants is to stay on the sidelines until there’s a better clarity on where we are,” Mr. Sta. Ana said. “That’s probably the reason why the tenders [were tepid].”
Sought for comments, a bond trader said the appetite for the bonds remained weak as market players wait for another round of policy tightening from the BSP as well as the US Federal Reserve.
“Until we see some signs that inflation has already peaked or any other catalysts, then demand will remain tepid,” the trader said in a phone interview.
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in Treasury bills and another P90 billion in T-bonds.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product.
Meanwhile, Mr. Sta. Ana said the government will conduct a non-deal road show in the United States to get the pulse of foreign businessmen.
“We’re still doing a road show…just to update investors where we are,” Mr. Sta. Ana said when sought for an update regarding the government’s planned dollar bond issuance.
“There’s a plan for a road show in the US because these are your major investors, together with the European Union, United Kingdom and Asia.”
The government held an economic briefing in London last Sept. 24-26 to “update” British businessmen on the performance of the economy as well as the Duterte administration’s tax reform and infrastructure initiatives.
In January, the country returned to the global capital markets after four years, offering 10-year global bonds worth $2 billion which carry a 3% coupon.
Aside from this, the government is also looking at issuing yuan- and yen-denominated papers within 12-18 months to maintain presence in the Chinese and Japanese capital markets. — Karl Angelo N. Vidal

Mamma Mia! Here it goes again!


HOW DO you keep yourself restrained when there’s a party on stage and iconic ABBA songs are playing? This can be the biggest challenge one encounters when watching the ongoing run of Mamma Mia! at The Theatre at Solaire: controlling your desire to stand up and dance and sing along with the cast.
Mamma Mia! opened on Sept. 29, and media was invited to the gala night performance on Oct. 2.
But before the show, they got a chance to talk with the cast members, who have already made observations on the Filipino audience.
“Here in Manila, they’re attentive. And right at the end they went absolutely crazy. It’s a brilliant reaction: Everyone was on their feet,” said Lucy May Barker during the media interview. She plays the role of Sophie, the daughter whose determination to find out who her father is triggers the action of the musical.
Mamma Mia! tells the story of the hippie chick Donna and her daughter Sophie, who, in the run-up to her wedding, is determined to find out who among the three men her mother was involved with 20 years ago — Bill, Sam, and Harry — is her father.
Not so much of a spoiler, but there’s a disco/concert party in the final act that had everyone getting up, dancing, and singing to ABBA’s timeless hits.
“Here, people are getting up and dancing at the end. Which have been done in all other venues — and which we loved. There’s a fantastic opportunity at the end where we encourage people to come and dance along in the finale,” said Shona White who is playing as Donna.
TIMELESS
The 19-year-old West End original production, like wine, ages perfectly well over time, thanks to ABBA’s music that transcends generations, and to its story that empowers women, especially single moms raising their kids in a judgmental and patriarchal society. It’s not preaching, but the lesson is communicated well through the songs and the script.
The worldwide success of the musical inspired a movie adaptation in 2008 starring Meryl Streep as Donna, and, after 10 years, a sequel, Mamma Mia 2 was released which traces how Donna met Sam, Bill, and Harry, and ended up settling in Greece.
Will the theater production also have a part two like the film?
“The first musical, which is our musical, is 20 years old in April next year… But we don’t know [if there will be a part two]. It might be difficult because there are some similarities and the choices of songs are already in the first movie. But it would be fantastic because there’ll be before, during, and after. It’s nice to know what our characters’ histories were,” said Ms. White.
Phillip Ryan, who plays Sophie’s fiancee Sky, added that the allure of the musical is its high energy and absence of any antagonist. “The songs keep playing them on record. I think the good thing about the story’s there’s no villain. It’s just a great evening of dancing and singing.”
LOVE FOR REAL
Mamma Mia! celebrates love — apparently even off stage. It was revealed during a press conference when the actors playing Sky and Sophie were asked how they relate to their characters that they are engaged in real life.
“We’re engaged in real life and also on stage. At the end of the show, Sophie and Sky are about to travel around the world, which resonates with us,” said Ms. Barker, adding that she gets to tour around the world thanks to the show.
The couple met during their final audition for their roles in 2015, and from there, they hit it off.
“It’s quite special to put in the wedding dress in ‘Slipping Through My Fingers’ scene knowing that I have to also do it in real life,” she added.
“There’s no acting required.” — Nickky Faustine P. de Guzman

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