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Duterte, King of Jordan oversee labor, defense, investment deal signings

PRESIDENT Rodrigo R. Duterte and King Abdullah II of Jordan on Thursday witnessed the signing of five agreements covering labor, defense and investment, among others.
The agreements were memoranda of understanding (MoUs) on political consultations, defense cooperation, labor cooperation, investment, and a memorandum of agreement (MoA) between the Jordan Maritime Commission and the Maritime Industry Authority of the Philippines concerning the recognition of certificates under the Terms of the 1978 STCW (Standards of Training Certification and Watch-keeping for Seafarers) Convention.
Also on Thursday, business agreements valued at “about $10 million” were set to be signed between companies from both countries, according to Trade Secretary Ramon M. Lopez.
Mr. Duterte arrived in Jordan on Sept. 5, for a three-day official visit.
Mr. Duterte was scheduled to attend a business forum at the Intercontinental Hotel in Amman yesterday, where he was expected to witness the signing of agreements between private firms from the Philippines and Jordan.
In a text message to reporters, Mr. Lopez said the deals are expected to generate “over 200 jobs” for Filipinos.
In an interview with Radio Television Malacañang (RTVM), Philippine Ambassador to Jordan Akmad Atlah Sakkam said: “The visit initiates an opening for our businessmen. And for Jordan also.”
He added that one of the possible opportunities that could be explored is the Halal industry. “It’s a multi-billion-dollar industry that our businessmen should exploit, so information must flow harmoniously,” he said.
In a statement, the Palace said: “Jordanian businesses could look into the agricultural products of the Philippines such as bananas and pineapples.”
Special Assistant to the President Christopher Lawrence T. Go also confirmed that Jordan has donated two Bell Cobra attack helicopters to the Philippines. — Arjay L. Balinbin

Uson a lightning rod at PCOO budget hearings

THE Presidential Communication Operations Office’s (PCOO) proposed budget, which will rise 2.75% to P1.434 billion in 2019, was approved at committee level at the House of Representatives, in the face of calls for the office to be stripped of funding.
The House Committee on Appropriations on Thursday approved the PCOO budget as part of hearings to pass the General Appropriations Act of 2018.
The PCOO has attracted negative attention because of the activities of Assistant Secretary Esther Margaux J. Uson, including her partisan blogging career and a video that attempted to explain federalism via interpretative dance.
The proposed 2019 budget includes P709.36 million for personnel services, down 6.34%.
Bayan Muna Representative Carlos Isagani T. Zarate during his interpellation said Ms. Uson as a public servant should be mindful of her actions on social media.
Mr. Zarate said Ms. Uson’s blogging in support of the government tends to blur the line between her activities as a private citizen and as a PCOO employee.
“She is no longer a private (citizen), she’s a government employee… there has to be a certain degree of accountability,” he added.
Mr. Zarate also noted that Ms. Uson’s activities online should be looked into to determine whether her activities as a government employee attract advertising income.
“(The government is) financing all these programs. I hope it can be clarified (whether she earns may mga sponsors d’yan, ads, so sinong kumikita dito?” Mr. Zarate said.
PCOO representatives at the hearing said Ms. Uson has been duly notified of the expectations of her as a civil servant.
“Undersecretary Lorraine (Marie T.) Badoy… has issued a memo reminding Assistant Secretary Uson… to remind her of the provisions (of Republic Act) 6713 on the norms and conduct expected of public officials and employees,” Assistant Secretary Ana Maria Paz R. Banaag said during the hearing.
Assistant Secretary for Policy Michel Kristian R. Ablan also said that the PCOO has developed a social media policy for government workers in partnership with the Department of Information and Communication Technology (DICT).
Mr. Zarate also brought up the issue of Ms. Uson’s travels as part of the president’s entourage.
Presidential Communications Secretary Martin M. Andanar said Ms. Uson joined the president’s foreign visits at the request of the Office of President and other agencies.
He added that he authorized Ms. Uson’s various activities, including joining the president’s traveling party. He listed her duties as including producing content for PCOO on social media, government TV and Radyo ng Bayan. Specifically, she is currently running programs known as “DDS Podcast” and “Good News Duterte.” — Charmaine A. Tadalan

Davao chamber lobbying for Mindanao incentives amid tax reform debate

DAVAO CITY — The Mindanao business sector will lobby the national government to offer a package of incentives encouraging investors to locate in the country’s southern islands.
Arturo M. Milan, president of the Davao City Chamber of Commerce and Industry, Inc., said the chamber is proposing that Mindanao preferential tax incentives be included in the second round of the Comprehensive Tax Reform Program (CTRP) that is now under deliberation in Congress.
He added that the incentives will be a key topic at the 27th Mindanao Business Conference (MinBizCon) on Sept. 13 to 15 in Tagum City.
“That is why we are supporting the CTRP because we want also that Mindanao should be given preferential tax incentives… This is a way to encourage investments to come to Mindanao,” Mr. Milan said during this week’s Habi at Kape media forum.
“What we want are income tax holidays, (perks for) importing goods (for startup businesses), and other similar incentives… These are the big things that can encourage investments in Mindanao,” he said.
Mr. Milan said that while some local government units have their own incentive codes, they can only offer tax breaks on such items as real property and business registration fees.
“Under the CTRP of the Duterte administration, they are trying to rationalize (taxes), but we don’t want to lose income tax holidays to be given to prospective investors that will locate in Mindanao. We must look at incentives in the right perspective… so that it will benefit areas that need to be developed,” he added.
The Mindanao Development Authority (MinDA) said it will continue to push for an increase in the national budget to propel economic activity.
MinDA Deputy Executive Director Romeo M. Montenegro said it proposed an additional P1.2 trillion for Mindanao spread over the next four years, on top of the regular allocation.
At present, he said, Mindanao gets about 12% of the national budget.
“We have been pushing for a 30% slice for the island… to catch up with the rest of the country,” Mr. Montenegro said, noting in particular the need for more support infrastructure.
He said it is “very easy to justify the increase in the budget for Mindanao” because its six regions —Zamboanga Peninsula, Northern Mindanao, Davao, SOCCSKSARGEN, Caraga, and the ARMM (Autonomous Region in Muslim Mindanao) — have collectively exhibited significant growth in gross regional domestic product (GRDP).
In 2017, Davao, SOCCSKSARGEN (South Cotabato-Cotabato-Sultan Kudarat-Saranggani-General Santos City), and ARMM were among the fastest growing regions in the country, with GRDP growth rates of 10.9%, 8.2%, and 7.3%, respectively. — Carmelito Q. Francisco and Maya M. Padillo

Approved building permits rise 11.7% in Q2 — PSA

By Mark T. Amoguis, Researcher

THE CONTINUED GROWTH in building permits as of 2Q 2018 may be attributed to the sustained growth in real estate alongside with the significant increase in the government’s infrastructure spending. — Michael L. Ricafort, Rizal Commercial Banking Corp. economist. — AFP

CONSTRUCTION starts, based on approved building permits, grew 11.7% year-on-year, driven by non-residential projects, the Philippine Statistics Authority (PSA) said.
The PSA said building permits issued in the three months to June period numbered 40,182 from 35,983 a year earlier. The rise reverses the year-earlier decline of 9.2%.
Approved projects contained 8.841 million square meters (sq.m.) of floor space, up 24.2%, and valued at P101.178 billion, up 33.4%.
Permits for non-residential projects rose 16.1% to 5,644 and accounted for 14% of total approvals.
Permits for agricultural buildings increased 57.2% to 349 in the second quarter followed by institutional buildings (up 35.1% at 1,221); industrial buildings (up 10.6% at 624); and commercial buildings (up 10% at 3,329).
For nonresidential construction, the average cost per square meter rose 4.9% to P10,226 due to increases in the average cost per square meter of institutional (9.5%), industrial (6.3%), and commercial (2.6%) buildings.
On the other hand, residential construction projects — which made up 72.3% of the total approved permits in the second quarter — rose 8.3% to 29,060, led by apartments/accessorias (53.5%), residential condominiums (40%), and single houses (4.1%).
Among residential construction projects, single houses had the biggest share of new permits at 85.3% or 24,787.
The value of the residential projects approved for construction rose nearly 60% to P56.989 billion in the second quarter.
Permits for additions to existing structures rose 25% to 1,511, while alterations and repairs of existing structures rose 28.5% to 3,967.
“The continued growth in building permits as of 2Q 2018 may be attributed to the sustained growth in real estate alongside with the significant increase in the government’s infrastructure spending,” Rizal Commercial Banking Corp. (RCBC) economist Michael L. Ricafort said in an e-mail interview.
“Furthermore, the sustained double-digit growth in bank lending to real estate (and) construction (companies), as well as in housing loans, may have reflected and led to the similar double-digit growth rates in building/construction permits in recent months,” he added.
The economist said that construction activity outside Metro Manila reflect the expansion plans of real estate developers, retail chains, and other major companies.
Calabarzon — which includes the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon — recorded the highest number of approved construction permits during the April-June period with 9,608, representing a 23.9% share of the total. It was followed by Central Luzon (12.5%), Central Visayas (11.3%), Ilocos Region (7.8%), and National Capital Region (7.6%).
Mr. Ricafort expects construction activity to further pick up in the rest of the year.
“Increased infrastructure spending by the government… especially for mega infrastructure projects (Build, Build, Build) will be a major source of growth for real estate and construction activity, especially in areas outside Metro Manila,” he said
“The continued expansion of the country’s biggest property developers, retail chains, commercial establishments, and other national chains of the biggest businesses in the country, especially in key localities that have the greatest growth potential will also spur the construction of new residential, commercial, and industrial areas.”

Closed-off fishing zones seen key to more galunggong stocks

THE Bureau of Fisheries and Aquatic Resources (BFAR) can increase the supply of round scad, or galunggong, in Philippine markets by allowing fish stocks to regenerate in areas declared off-limits to fishing, a former environment secretary said.
Former secretary Angel C. Alcala, a biologist who served in the Ramos administration, added that proper conservation measures are an alternative to imports.
Galunggong (lives in) the high seas… Once in a while, they take to coastal areas, but the coastal areas are not the habitat of these fish, it is in deeper parts of the ocean. The only possible strategy to conserve [this fish is] to declare certain areas off limits to fishing to let the population increase. If you limit [fishing in] several hundred square kilometers, then allow the galunggong there to develop in numbers,” Mr. Alcala told reporters on Tuesday.
Mr. Alcala said BFAR can close specific areas to allow the fish to breed, then allowing fishing while closing off another area .
“The BFAR knows when this species breeds, so tit has to study that and impose the law of no fishing during the time when they are breeding,” according to Mr. Alcala.
He also noted that “people should cooperate by not fishing in the areas.”
Mr. Alcala also supports fishing bans near coral reefs.
“When you close fishing near coral reefs, you build a fish biomass over a decade. When the fish multiply, they go out to the areas where fishermen (can harvest them). That’s the technique for improving the fishery in coral reefs, and that includes lapu-lapu (grouper), dalagang bukid (fusilie), and snappers,” Mr. Alcala said.
Agriculture Secretary Emmanuel F. Piñol said that he plans to import 17,000 metric tons of galunggong annually to ensure supply and curb rising fish prices.
Senate chair of the committee on agriculture and food Cynthia A. Villar, however, said that around 1.5-million fisherfolk are affected by fish importation, and the government should promote aquaculture instead of relying on imports. — Reicelene Joy N. Ignacio

Napocor sees multiple fund sources for Agus-Pulangi rehabilitation

THE National Power Corp. (Napocor) expects funding for the rehabilitation of the Agus-Pulangi hydroelectric power complex in Mindanao to come from multilateral lending agencies as well as China, its top official said.
Pio J. Benavides, Napocor president and chief executive officer, told reporters that funding for the feasibility study on the hydro facility’s revival will be financed by the World Bank through a grant.
He identified the other lending agencies as Asian Development Bank and Japan International Cooperation Agency. He did not identify the Chinese entity that will partly finance the implementation of the project.
Mr. Benavides said he did not know the total amount required to fund the feasibility study as well as the facility’s rehabilitation.
Pressed for a range, he said around P37 billion to P50 billion is required.
“We are the counterpart of World Bank,” although he qualified that Napocor’s contribution would be its manpower.
“World Bank will tap a consultant to study the feasibility of the project,” he added.
Mr. Benavides said three options are being considered for the feasibility study. The first is the rated capacity of the complex and its safety. The second is to increase the capacity plus the safety and security of the plant.
“[The] third [option] is [options] one and two, plus improving the water efficiency,” he said, adding that the activity could span a year.
Bidding for the rehabilitation project will follow, he said.
Asked whether the complex’s privatization will follow, he said he was referring purely to operations.
The Agus hydro power asset has an installed capacity of at least 700 MW. The biggest plant in the complex is the 200-MW Agus VI in Iligan City, Lanao del Norte, which has five operating units, two of which have a capacity of 25 MW each and the rest with 50 MW each.
The Pulangi hydroelectric power plant in Maramag, Bukidnon has three units, each with an installed capacity of 85 MW. The power generation facilities are considered Mindanao’s main sources of low-cost power.
The privatization of Agus-Pulangi is required under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), the law that restructured the power industry.
Under EPIRA, the sale of Agus-Pulangi should come no earlier than 10 years from the effectivity of the law in 2001. It prohibits schemes such as build-operate-transfer, build-rehabilitate-operate-transfer and other variations. —Victor V. Saulon

Rockwell Collins unit seeks pioneer perks from PEZA for aircraft interior projects

B/E Aerospace B.V., based in Florida, is seeking pioneer status for three aircraft interior projects to qualify for incentives granted by the Philippine Economic Zone Authority (PEZA).
In a notice published Thursday, PEZA said the Philippine branch of the world’s largest supplier of aircraft interior products is seeking recognition as an industry pioneer in three activities.
These involve the manufacture and sale of commercial aircraft galleys; the manufacture, sale, distribution and marketing of commercial aircraft lavatories; and the manufacture, sale, distribution and marketing of beverage makers and rails for aircraft.
“Said application has been officially accepted and is under process in this office,” according to the notice.
If its claim of bringing new technology is accepted, the company could be granted a six-year income tax holiday (ITH), against the four-year ITH for non-pioneer projects.
B/E Aerospace’s Philippine facility is located in Tanauan, Batangas.
The company is a locator at the First Philippine Industrial Park-Special Economic Zone situated in the Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) area.
B/E Aerospace is a wholly owned subsidiary of Rockwell Collins Inc. — Janina C. Lim

Trillanes dares Duterte: Declare revolutionary gov’t

By Camille A. Aguinaldo Reporter
and Vann Marlo M. Villegas
OPPOSITION Senator Antonio F. Trillanes IV on Thursday dared President Rodrigo R. Duterte to declare a revolutionary government so he could eliminate legal hurdles to his possible arrest.
Mr. Trillanes made this dare at the Senate, as his lawyer petitioned the Supreme Court that day to issue a temporary restraining order on Mr. Duterte’s Proclamation No. 572 voiding the 2011 amnesty for the senator.
Mr. Trillanes was pardoned by Mr. Duterte’s predecessor, Benigno S.C. Aquino III, in connection with leading a series of revolts as a Navy lieutenant against then president Gloria Macapagal-Arroyo. He previously faced rebellion and coup d’etat charges over the 2003 Oakwood Mutiny and the 2007 Manila Peninsula Hotel siege.
Ngayon kung gagawa sila ng isang milagro eh ang sa akin ay mag-declare na lang sila ng revolutionary government. Huwag na sila magpanggap (Now, if they are going to create a miracle, for me, they should declare a revolutionary government. They shouldn’t pretend anymore),” Mr. Trillanes told reporters at a press briefing outside his Senate office.
He also said some members of the military were “extremely bothered” with the presidential proclamation that voided his 2011 amnesty. He said he received messages from some military personnel who also conveyed their “conflicted” thoughts on the issue.
Basta’t ang sinasabi ko lang (What I’m saying), they are bothered. They are extremely bothered by this political move of their commander-in-chief na isinasalang pa sila rito sa alanganin (that they are being subjected to this uncertainty),” Mr. Trillanes said.
“Definitely, they are conflicted because they knew this is political….But ayaw natin gumawa ng (we don’t want to do) anything extra-constitutional at this point,” he added.
In a security briefing in November last year with Vice-President Maria Leonor G. Robredo, top officials of the Armed Forces of the Philippines (AFP) and the Department of National Defense (DND) said they will not support any moves to establish a revolutionary government.
At the Supreme Court, Mr. Trillanes’s lawyer, Reynaldo B. Robles, told reporters, “Alam natin na (We know that) Senator Trillanes is being specifically targeted by the administration…It is clear that it is political harassment kasi ang daming problema ang bayan natin, tumaas ang presyo ng bigas, wala tayong mahuling isda, tumataas lahat ng presyo. Ang sinisilip nila ‘yung pag-aaply ng amnesty na walong taon na ang nakakaraan (because the country has many problems, rice prices have increased, we have a fish shortage, prices have all gone up [But] they are looking into an application for amnesty from eight years ago).”
Mr. Trillanes’s petition cited, among other circumstances, the 2011 dismissal of his coup d’etat and rebellion charges by Branch 148 and Branch 150 of the Makati Regional Trial Court.
Named respondents in Mr. Trillanes’s petition are Executive Secretary Salvador C. Medialdea, Defense Secretary Delfin N. Lorenzana, Interior and Local Government Secretary Eduardo M. Año, Justice Secretary Menardo I. Guevarra, Armed Forces of the Philippines (AFP) Chief of Staff Gen. Carlito G. Galvez, Jr., and Philippine National Police (PNP) Chief Oscar D. Albayalde.
For his part, Senate Minority Leader Franklin M. Drilon said in an interview with ANC’s Headstart that Mr. Trillanes’s case “cannot be reopened, because otherwise there will be no more stability in our society and in our system, because seven years after the case has been decided you’ll go back and say, ‘No, mali iyan (that was wrong).’”
“The stability in our system requires that there must be finality in the orders of the court so that the people will follow. Otherwise there will be chaos,” Mr. Drilon also said.

Analysts cite Robredo’s ‘growing assertiveness’

By Charmaine A. Tadalan
ANALYSTS SOUGHT for comment on recent statements by Vice-President Maria Leonor G. Robredo noted her “assertiveness” following President Rodrigo R. Duterte’s attacks against her and his proclamation voiding the amnesty for opposition Senator Antonio F. Trillanes IV.
Ms. Robredo on Thursday visited Mr. Trillanes in the Senate in a show of support for the senator. “Maraming problema ngayon iyong ating bansa. Napakataas ng ating inflation rate. Kagagaling ko lang sa Zamboanga kahapon, at iyong reklamo ng mga tao doon, iyong grabe iyong presyo ng bigas,” she told reporters there. (The country has many problems now. Inflation…is so high. I also visited Zamboanga yesterday, and the people there are complaining about high prices of rice.)
She also flagged the government’s “attempt to silence the opposition.”
Ms. Robredo also issued a statement on Thursday saying in part, “Expending political capital for divisive moves like revoking the validity of the amnesty provided to Senator Trillanes at time when the quality of life of our people is at stake comes at the expense of addressing the issues that truly matter to the Filipino.”
“What our people need is for its leaders to work together for solutions: the stabilization of the country’s rice supply through the installation of competent and trustworthy leadership at the NFA; revisiting the excise tax on fuel and any further impositions; and re-assessing whether the unconditional cash transfers provided by law are enough and to ensure that all qualified beneficiaries get the assistance at the soonest possible time.”
“Instead of shutting down those who dare to point out its inefficiencies, may the administration finally rise to the challenge of putting forward coherent solutions to bring down rising prices,” Ms. Robredo also said in her statement.
Sought for comment, University of the Philippines political science professor Maria Ela L. Atienza said via e-mail, “Given the various attacks on her leadership capacity from the President and his supporters, she really needs to step up in her assertiveness and show that she has the potential to lead and to propose alternative policies and actions to resolve the current problems the country is facing.”
Ms. Robredo has been branded by Mr. Duterte as being unqualified and “incompetent” for the presidency. Mr. Duterte also claimed her hometown of Naga City is a “hotbed of shabu,” an accusation vehemently disputed by Ms. Robredo and political leaders of the city.
Ms. Atienza said Ms. Robredo “could have been more assertive even earlier when she was removed from the housing portfolio and disinvited to attend Cabinet meetings. But this growing assertiveness on her part may be a welcome development given the current political climate.”
“If the VP plays her cards right and she will not be removed from her position by the Supreme Court sitting as PET (Presidential Electoral Tribunal), she can unify the various opposition groups as well as capitalize on the growing dissatisfaction of the public currently facing rice shortage, rising prices of goods, deteriorating peace and order, and open persecution of opposition figures. The opposition can mount a credible challenge to the administration by 2019,” Ms. Atienza also said.
Also sought for comment, University of Santo Tomas political science professor Marlon M. Villarin said in a phone interview, “I think what the Liberal Party or the opposition is doing right now is they are making…a strong and clear statement that in the midst of economic and political problems our country is confronting, they just want the Duterte administration to be more focused on resolving than making all this rhetorical statement concerning our country.”
“VP Leni wanted also to capitalize (on) the opportunity to make a statement that with all the issues confronting Trillanes, the opposition will not be intimidated or silenced,” Mr. Villarin also said.
“Also, to redirect people’s attention on how our country should respond to our pressing economic problem, which in effect gives the Duterte (administration the need) to be more responsible and focus on addressing economic problems,” he added.

Palace to identify panel to look into Dengvaxia cases

By Arjay L. Balinbin, Reporter
THE Office of the President (OP) is expected to release a list of names of experts who will be conducting a probe on the Dengvaxia controversy, Health Secretary Francisco T. Duque III said at a briefing in Malacañang on Thursday.
Baka…ma-ilabas na ang decision ng OP patungkol sa pagbubuo ng panel of experts na manggagaling mostly sa ASEAN countries, where, also as part of the presidential directive, those members of the panel, the experts, must come from countries where the Dengvaxia immunization program was also implemented,” Mr. Duque said as an update on the planned three-man panel to investigate Dengvaxia cases in the country. (OP might soon come out with a list on the formation of a panel of experts mostly from ASEAN countries….)
Mr. Duque said there are four persons in the list of experts recommended to the President, but only three will be chosen.
“They are experts. They have the technical proficiency to study, to review all the documents and to put them together in a report,” Mr. Duque also said.
On the Senate’s approval of the P1.16-billion supplemental budget for Dengvaxia recipients last Wednesday, Mr. Duque said: “Finally, we will be able to provide the necessary surveillance, treatments, and hospitalization for those vaccinees who will need those interventions.”
The vaccine manufactured by Sanofi Pasteur has become a leading health concern after findings by the company late last year flagged risks on inoculated patients not stricken by dengue.

Brace for worse traffic congestion with rehab of Manila bridges, flyover

TRAFFIC CONGESTION in Manila is expected to worsen starting Sept. 15 as rehabilitation work starts on the Old Sta. Mesa Bridge, Mabini Bridge, and the Nagtahan flyover. The Metropolitan Manila Development Authority (MMDA), in a statement yesterday, said it has given the green light to the Department of Public Works and Highways for the construction works that will take four to seven months to complete. “The Old Sta. Mesa Bridge that connects San Juan and Manila cities will be closed for seven months,” said MMDA General Manager Jose Arturo S. Garcia. The bridge’s reconstruction is to give way to the ongoing construction of Skyway Stage 3 Project, an elevated expressway that will connect Makati and Quezon City. Repair works for the Mabini Bridge and Nagtahan flyover, on the other hand, will last for four months. Contractors are allowed to work only from 11 p.m. to 5 a.m.

34 Chinese suspected of working without visa arrested

Bureau of Immigration (BI) logoTHE BUREAU of Immigration (BI) has detained 34 Chinese men caught in the act of working at a construction site and are suspected to have no appropriate visas. They were nabbed at a building site near a mall in Pasay City on Sept. 4. In a statement on Thursday, BI Commissioner Jaime H. Morente said the bureau is still verifying the visa status of the foreigners to confirm if they have already overstayed in the country. He said those proven to be undocumented or without an appropriate visa will be charged and undergo deportation proceedings. “Initial investigation indicate that they arrived here as tourists and that they were employed as construction workers without securing the necessary work permits from the government,” Mr. Morente said. BI Acting Intelligence Chief Fortunato S. Manahan Jr. said the workers were allegedly employed to do finishing works in an office building.

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