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DILG: Almost one-third of Boracay establishments may be allowed to operate in October

By Camille A. Aguinaldo
The government may open Boracay Island by Oct. 26 with at least 30% of the establishments allowed to operate, Department of Interior and Local Government Undersecretary for Operations Epimaco V. Densing said on Monday, Aug. 20.
“The target is between 30% to 50% now that the DENR (Department of Environment and Natural Resources) will release their carrying capacity study. Around 30 to 50% (establishments) may be opened,” he said during the continuation of the Senate hearing on Boracay’s environmental woes.
Four months into the island’s closure, Mr. Densing said several establishments remained noncompliant with the necessary permits from the local and national government as well as the directive to connect to the sewer lines of water concessionaires or to install their own sewage treatment plants (STPs).
According to DILG’s count, there were about 2,384 establishments in Boracay. Mr. Densing said only 71 out of 440 hotels, inns, and restaurants have complete business requirements as of Monday. Meanwhile, only 21 out of 162 establishments have sewage treatment plants based on DENR’s figures presented during the hearing.
In an interview with reporters, Mr. Densing clarified that the government is still looking at 100% compliance of businesses but he said they will have to settle with a 30% target to ensure the improved water quality attained during the closure is maintained with the island’s opening.
“If 30% (of establishments) are connected to the sewer line, only 30% have STPs in total, then we’ll have to open it at 30%… It is not to the interest of everybody to keep Boracay closed. But if you are not following the law to make sure that the water quality that comes out of the island is (class) SB levels, then we’ll have to do with the 30%,” he added.

Property firms post mixed second-quarter results

Property companies reported mixed performances in the second quarter of 2018, depending on the real estate sales and rental income each firm posted for the period.
In a regulatory filing, Rockwell Land Corp. said it generated P628 million in net income attributable to the parent during the April to June period, 21% higher than what it posted in the same period a year ago. This followed a 28% increase in revenues to P4.72 billion.
On a six-month basis, the Lopez-led property company grew its attributable profit by a fifth to P1.25 billion, on the back of a 19% rise in revenues to P8.05 billion from the P6.76 billion it recorded in the same period a year ago.
In a separate filing, Sta. Lucia Land, Inc. (SLI) registered a 12% decline in net income to P242 million in the second quarter of the year, as revenues likewise dropped three percent to P1.05 billion.
For the first six months of the year, SLI’s net income increased by six percent to P508 million, driven by a 13% climb in revenues to P2.03 billion.
Meanwhile, luxury property developer Anchor Land Holdings, Inc. (ALHI) reported a 45% decrease in net income attributable to equity holders of the parent in the second quarter to P127.43 million, versus the P174.15 million it delivered in the same period a year ago. Revenues for the April to June period reached P1.3 billion, flat from the P1.32 billion it generated in the second quarter of 2017.
This brought ALHI’s attributable profit for the first half of the year to P231.04 million, 26% lower than the P312.7 million it generated in the same period a year ago. The company’s revenues meanwhile went up by two percent to P2.54 billion.

DM Consunji first-half net income up 36%

The construction arm of DMCI Holdings, Inc. grew its net income by 36% in the first six months of 2018, fueled by its building and infrastructure units.
In a disclosure to the stock exchange, DM Consunji, Inc. reported that its net income reached P676 million in the first half of 2018, higher than the P497 million it posted in the same period a year ago. This followed a 13% increase in revenues to P7.2 billion.
“Overall, we still maintain a positive outlook for D.M. Consunji, Inc. for the second semester of this year,” President and CEO Jorge A. Consunji said in a statement.
“We intend to be one of the major players participating in the rollout of infrastructure projects under the Build, Build, Build Program of the government, as well as in private construction projects,” he said. — Arra B. Francia

Moody’s affirms Security Bank investment grade

Moody’s Investors Service has affirmed its investment-grade rating to Security Bank Corp, maintaining the “stable” outlook on the lender.
In a statement sent to reporters on Monday, the global debt watcher said it has maintained Security Bank’s long-term local and foreign currency deposit and issuer ratings of Baa2, a notch above the minimum investment grade.
Moody’s likewise maintained its short-term local and foreign currency deposit and issuer ratings at P-2,while baseline credit assessment (BCA) stood at baa3.
Counterparty risk assessments were also affirmed at Baa2(cr)/P-2(cr). — Karl Angelo N. Vidal

PSALM to rebid P886-million Manila thermal plant

Power Sector Assets and Liabilities Management Corp. (PSALM) will rebid a thermal power plant in Manila that it valued at around P886 million after the agency failed to receive any bids after the deadline it set last week.
In a statement, PSALM President and Chief Executive Officer said her office would look into the reasons as to why the four bidders, who initially purchased bid documents, decided not to participate in the bidding.
She declaired the public auction as a failure due to the non-receipt of any bids on the deadline set at 12:00 noon of Aug. 15, 2018.
The proceeds from the sale of the underlying land will help augment PSALM’s funding sources for the management of its assumed liabilities.
PSALM said the property has a potential commercial value because of its proximity to Manila’s business district. — Victor V. Saulon

Government fully awards T-bills

The government once again decided to fully award the Treasury bills (T-bill) it auctioned off on Monday, Aug. 20, as rates slipped across all tenors on the back of additional liquidity in the market brought about by the P91 billion worth of government maturities.
The Bureau of the Treasury (BTr) borrowed P15 billion as planned at its T-bills auction. Demand from investors totaled P43.1 billion, slightly lower than the P49.4 billion recorded at last week’s offering.
Broken down, the government borrowed P4 billion as planned via the 91-day tenor as tenders by investors amounted to P12.857 billion. The average rate on the papers slid 4.1 basis points (bp) to 3.203% from the 3.244% logged in the previous auction.
For the 182-day T-bills, the BTr borrowed P5 billion as planned out of the P17.928 billion offered by banks and other financial institutions. The average rate likewise slipped by 5.3 bp to 4.064% from the 4.117% quoted in the previous offering.
The Treasury also made a full award of the 363-day papers, accepting the programmed P6 billion out of total offers amounting to P12.358 billion. The average yield likewise declined 2.3 bps to 4.869% from last week’s 4.892%.
At the secondary market prior to the auction, three-month and six-month papers were quoted at 3.615% and 4.0651%, respectively, while one-year securities fetched a 5.1077% yield. — Karl Angelo N. Vidal

ADB approves $300-million loan to fund Philippines’ infrastructure projects

THE ASIAN Development Bank (ADB) has approved a $300-million loan for the Philippines to fund a program that promotes the development of public-private partnership (PPP) projects.
The regional lender announced on Monday, Aug. 20, that it has approved the loan for the Expanding Private Participation in Infrastructure Program (EPPIP) subprogram 2.
The program aims to strengthen government financial support to PPPs, expand and efficiently implementing the pipeline of PPP projects, and strengthen the legal and regulatory frameworks for PPPs.
“The Philippines has made significant progress since the PPP program was launched in late 2010. With a huge project pipeline being rolled out under the BBB program of President Rodrigo Duterte, leveraging public resources via private sector participation remains relevant,” ADB Country Director for the Philippines Kelly Bird was quoted as saying. — Elijah Joseph C. Tubayan

Four Japan athletes booted from Asian Games in prostitute scandal

Jakarta — Four Japanese basketball players have been sent home from the Asian Games in disgrace for allegedly paying prostitutes for sex, the Japanese Olympic Committee (JOC) said Monday.
The players were spotted in a notorious red light district of Jakarta in their national jerseys last week, JOC officials told a press conference, saying the quartet had been ordered to leave immediately.
News that Yuya Nagayoshi, Takuya Hashimoto, Takuma Sato, Keita Imamura had been booted out will come as a major embarrassment for Japan, who were forced to send a swimmer home from the last Asian Games in 2014 for stealing a journalist’s camera.
“I just feel a sense of shame,” Japan’s chef de mission Yasuhiro Yamashita told reporters.
“We deeply apologise and intend to give the athletes thorough guidance from now on.”
The basketball players had dinner after leaving the Games village and are believed to have been solicited by touts on the street to go to a hotel with women, Yamashita added.
“I would like to humbly apologise to the Japanese public, the JOC and everyone who supports basketball for this deplorable incident,” Japan basketball chief Yuko Mitsuya said in a statement.
“We will decide on the appropriate punishment for the four players once we have heard all the facts. We need to work harder to make sure this kind of scandal does not happen again.”
Japanese swimmer Naoya Tomita was expelled from the Asian Games in Incheon, South Korea, four years ago after being caught on video stealing a journalist’s camera. — AFP

Multiple quakes rock Indonesia’s Lombok island, five dead

Mataram, Indonesia — Multiple earthquakes — including a powerful and shallow 6.9-magnitude tremor — have rocked the Indonesian holiday island of Lombok, killing at least five people and setting off fresh waves of panic.
A series of quakes were recorded by seismologists throughout Sunday, the first measuring 6.3 shortly before midday which triggered landslides and sent people fleeing for cover.
It was followed nearly twelve hours later by a quake measuring 6.9 and at least five more significant aftershocks, according to the US Geological Survey.
The picturesque island is already reeling from two devastating quakes on July 29 and August 5 that killed nearly 500 people and made hundreds of thousands homeless.
Local disaster agency spokesman Agung Pramuja said five people were killed by the quake late Sunday evening, two in eastern Lombok and three on the neighbouring island of Sumbawa.
“So far five people died and scores of people are injured. We are still collecting data on the exact number,” Pramuja told AFP Monday.
Officials have evacuated a number of patients from a hospital in Sumbawa island for fear of worse destruction.
Blackouts had hit much of Lombok, according to a spokesman for the national disaster mitigation agency, Sutopo Purwo Nugroho, who posted pictures of cracked roads and video footage of a large fire that broke out in a village on Sumbawa.
One Lombok resident said the powerful tremor jolted him awake.
“The earthquake was incredibly strong. Everything was shaking,” Agus Salim told AFP.
“We were all sleeping in an evacuation tent. I had just fallen asleep when suddenly it started to shake…. Everyone ran into the street screaming and crying.”
A dozen foreign guests at the hotel Lina Senggigi, which is in a popular tourist spot, were ushered out of the building as the quake struck.
“The jolt was strong and quite long… Tonight we will ask our guests to sleep in the parking lot. It’s safer that way,” a staff member told Kompas TV.
Terrified evacuees in East Lombok prefer to stay in makeshift tents instead of going home.
“Power is still off until this morning. Fortunately nobody was hurt here but people are still in shock,” East Lombok resident Ujip Udin told AFP Monday.
Landslides and collapsed buildings
The morning quake caused panic but no widespread reports of damage. One person died from a suspected heart attack and there were reports of localised damage, Sutopo Purwo Nugroho said.
Landslides were reported in a national park on Mount Rinjani where hundreds of hikers had been briefly trapped after the quake in late July. The park has been closed since then.
Local disaster mitigation agency spokesman Agung Pramuja said several houses and other structures in the district of Sembalun, on the slopes of Mount Rinjani, collapsed on Sunday after being damaged by the previous two quakes.
The structures included checkpoints once used by trekkers climbing the mountain, Pramuja said, adding that the exact number of damaged buildings was still being checked.
Sunday’s tremors were also felt on the neighbouring resort island of Bali but there were no reports of damage.
‘Ring of Fire’
The latest tremor comes two weeks after a shallow 6.9-magnitude quake on August 5 damaged tens of thousands of homes, mosques and businesses across Lombok.
At least 481 people died and thousands were injured.
The hardest-hit region was in the north of the island, which has suffered hundreds of aftershocks.
A week before that quake, a tremor surged through the island and killed 17.
The August 5 quake left more than 350,000 displaced, with many sleeping under tents or tarpaulins near their ruined homes or in evacuation shelters, while makeshift medical facilities were set up to treat the injured.
Badly damaged roads, particularly in the mountainous north of the island, are a headache for relief agencies trying to distribute aid.
The economic toll of the quake is estimated to be at least five trillion rupiah ($348 million).
Indonesia sits on the so-called Pacific “Ring of Fire”, where tectonic plates collide and many of the world’s volcanic eruptions and earthquakes occur.
In 2004 a tsunami triggered by a magnitude 9.3 undersea earthquake off the coast of Sumatra in western Indonesia killed 220,000 people in countries around the Indian Ocean, including 168,000 in Indonesia. — AFP

Canada’s Trudeau to run again in 2019

Montreal, Canada — Canadian Prime Minister Justin Trudeau announced Sunday he will run for re-election in 2019 legislative polls.
The Liberal Party leader was officially nominated by his party in the central Montreal district of Papineau, a centrist stronghold he has represented since 2008. He was re-elected in 2011 and 2015.
He spoke of his “deep conviction that despite the politics of fear and division, staying positive, pulling people together, looking for ways to emphasize our common ground, our shared values among our differences, is the only way to build a stronger country, a stronger world.”
Trudeau also promised to reduce the gap between rich and poor, and to lift up indigenous populations.
In mid-July, Trudeau reshuffled his government, setting the stage ahead of the legislative elections due to take place on October 21, 2019, amid tensions on global trade and the rise of populism.
The move appeared designed to give the Liberals a lift at a time when polls show their Conservative Party opponents are hard on their heels. — AFP

House to resume budget work

THE HOUSE of Representatives is scheduled to proceed with hearings on the Executive’s proposed 2019 national budget when it reconvenes on Aug. 28, despite confusion on a compromise with economic managers.
An official schedule, dated Aug. 16, showed the Committee on Appropriations will resume budget hearings on Aug. 28, focusing on allocations for the Department of Trade and Industry and the Department of Education.
The committee will then tackle the proposed budgets of the Office of the President, Office of the Vice-President and the Department of National Defense on Aug. 29.
The House targets to approve the budget by Nov. 30.
House Majority Leader Rolando G. Andaya, Jr. had initially said the hearings will resume over Congress’s Aug. 17-27 recess, after he had met on Aug. 14 with Speaker Gloria M. Arroyo and President Rodrigo R. Duterte in a bid to break a deadlock between the House and economic managers over the national budget framework. House Appropriations committee chairman Rep. Karlo Alexei B. Nograles of Davao City’s first district on Aug. 11 indefinitely suspended budget hearings as he opposed the new system.
Economic managers have attributed the dip in the proposed national budget to P3.757-trillion for 2019 — a mid-term election year — from 2018’s P3.767 trillion to the Executive’s shift to a “cash-based” system that allocates funds only for projects that can be procured within the fiscal year, as opposed to the former “obligation-based” scheme that had provided for a two-year time frame.
They have argued that if both budgets were analyzed in cash-based terms, 2018 would turn out to have smaller appropriations.
The new system, Budget Secretary Benjamin E. Diokno has said, takes into consideration limits in spending capacity demonstrated by individual departments and agencies.
AMENABLE TO ‘PHASE-IN’
But Mr. Nograles late last week called for giving local governments a year to adjust to the idea of working with a smaller budget — or until 2020.
The Duterte administration has focused on improving state spending in a bid to prod gross domestic product growth to 7-8% annually until 2022, when it ends its six-year term, from 6.3% in 2010-2016 under former president Benigno S.C. Aquino III, under whose watch the Philippines bagged successive credit rating upgrades to investment status since 2013 by improving revenue collections while putting a check on spending.
Mr. Andaya had sought to downplay the difference between the two concepts, arguing that the current budget proposal itself is a mix of both cash- and obligation-based systems.
In a press briefing on Wednesday last week, he explained that, “[g]enerally speaking, when you talk about sweldo (pay), when you talk about certain amount ng MOOE (maintenance and other operating expenses), yes, (that’s) cash-based. But other projects like lumpsum funds, hindi siya (these allocations are not) cash-based.”
Sinasabi nga namin na hindi naman tunay na cash budgeting ‘yan. Hybrid po ‘yan, (We’re saying that the proposed spending plan is not really cash budgeting. It’s a hybrid),” Mr. Andaya said over radio station dzBB on Sunday.
“I think we’re amenable (to the) gradual phase-in (of) cash budgeting, considering na hindi naman (it’s not a) full cash budgeting.”
The Senate agreed last week to support the Executive’s cash-based framework and proceed with parallel budget hearings — a practice observed in order to ensure yearend enactment and avoid budget reenactment that had given occasion to irregularities in the past — but said it will have to wait for official submission from the House, as required by law.
But Mr. Duterte and his economic managers have yet to craft a response to the House.
Finance Secretary Carlos G. Dominguez III told reporters in a mobile phone message over the weekend that “another meeting will be scheduled” after he met with Messrs. Duterte and Diokno on Friday.
Asked whether that meeting had resulted in any agreement on the Executive’s approach to the House’s position, Mr. Dominguez replied: “Not at this point.”
Budget Undersecretary Laura B. Pascua said in a separate mobile phone message that there was no directive from Mr. Diokno on how to approach the House’s position, adding that the move to study the possibility of a reenacted budget “is… ongoing.” — Charmaine A. Tadalan and Elijah Joseph C. Tubayan

Philippine officials off to Beijing for dev’t funding

A HIGH-LEVEL Philippine delegation will visit Beijing this week to ink bilateral deals on China-funded infrastructure projects, the Department of Finance (DoF) said in a statement over the weekend.
“The high-level meetings will focus on strengthening and enhancing our bilateral engagement and cooperation. We express the hope that a number of bilateral documents would be presented and signed during the meeting, among them the exchange of letters for the feasibility study of the Panay-Guimaras-Negros Inter-Island Bridges Project,” the press statement read.
The meetings, set on Aug. 22-24, will “discuss the progress of the ‘first basket’ of projects for Chinese loan financing,” which include the Chico River Pump Irrigation Project, New Centennial Water Source-Kaliwa Dam Project, the Philippine National Railways’ South Long Haul Project, and the Davao-Samal Bridge Construction Project, as well as other projects funded by grants.
It will also discuss the proposed “second basket” of works up for China loans like the Ambal-Simuay River and Rio Grande de Mindanao River Flood Control Projects, Pasig-Marikina River and Manggahan Floodway Bridges Construction Project, Subic-Clark Railway Project, Safe Philippines Project Phase 1, and the Rehabilitation of the Agus-Pulangi Hydroelectric Power Plants Project.
Both countries have so far sealed the loan agreement for the partial P3.69-billion funding of the P4.37-billion Chico River Pump Irrigation Project, with an interest rate of two percent per annum with a maturity period of 20 years, inclusive of a seven-year grace period. Work, which began last month, is being undertaken by China CAMC Engineering Co. Ltd., which will install electric motor-driven pumps, construct pumping stations and irrigation canals and related facilities for barangays in Cagayan and Kalinga.
Manila and Beijing have also signed grant agreements worth a total of P4.13 billion for the Binondo-Intramuros and Estrella-Pantaleon bridges, now under construction; the conduct of feasibility study for the Davao City Expressway Project; provision of radio and broadcasting equipment to the Presidential Communications Operations Office, and the Philippine-Sino Center for Agricultural Technology-Technical Cooperation Program Phase 3.
The DoF said that the delegation will be led by Finance Secretary Carlos G. Dominguez III, along with Budget Secretary Benjamin E. Diokno, Socioeconomic Planning Secretary Ernesto M. Pernia, Transportation Secretary Arthur P. Tugade, Public Works and Highways Secretary Mark A. Villar; Vivencio B. Dizon, president and chief executive officer of the Bases Conversion and Development Authority and Foreign Affairs Secretary Alan Peter S. Cayetano. Scheduled to meet them are State Councilor and Foreign Affairs Minister Wang Yi, Commerce Minister Zhong Shan, China International Development Cooperation Agency Director Wang Xiaotao, Export-Import Bank of China Chairperson Hu Xiaolian and Asian Infrastructure Investment Bank President Jin Liqun. — Elijah Joseph C. Tubayan

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