‘We left everything out there’, says England manager Southgate

July 12, 2018 | 6:44 am

Moscow, Russia — Manager Gareth Southgate said England “left everything out there” after falling to an extra-time defeat by Croatia in the World Cup semi-final on Wednesday.
England were hoping to reach a first World Cup final since 1966, but let an early lead slip to lose 2-1.
“I think in the first half we were really good and maybe we could have got another goal,” Southgate told ITV.
“I can’t ask for more from the players. I think knockout football is about fine margins and when you have good spells against fine sides you need to take your chances.
“Tonight we weren’t quite there but we will learn from that. We left everything out there.”
Southgate said the players were deeply disappointed, but that the young team could achieve great things in the years to come, with the European Championship just two years away.
“It’s impossible to say anything to make the players feel better at this moment in time,” he said.
“We have to be proud of what we’ve achieved. I don’t think anyone could have given any more.
“Players had run out of steam but that’s partly their age –- they’re still physically maturing. Croatia have hardened warriors whose understanding of big matches at times came to the fore.
“The players have to go through big matches and experiences to become a team that can win. They have to use this experience for benefit and I know that what’s happened over the last few weeks will make them a stronger team.” — AFP

Duterte appoints Mark Villar’s wife to DoJ

July 12, 2018 | 3:37 am

By Arjay L. Balinbin, Reporter
Malacañang on Wednesday, July 11, announced President Rodrigo R. Duterte’s new appointments, including former Democratic Independent Workers’ Association (DIWA) party-list representative Emmeline A. Villar, the wife of Public Works Secretary Mark A. Villar.
Mr. Duterte appointed Ms. Villar as an undersecretary of the Department of Justice (DoJ), according to a certified copy of her appointment paper dated July 11.
The President likewise signed the appointment papers of new DoJ Undersecretaries Adrian Ferdinand S. Sugay and Markk L. Perete, and Assistant Secretary Neal Vincent M. Bainto.
The Palace announced as well the appointment of Saidamen B. Pangarungan, a former governor of Lanao del Sur, as Secretary of the National Commission on Muslim Filipinos (NCMF) for a term of two years.
Mr. Pangarungan will also be serving as a commissioner of the NCMF for four years. His appointment papers were signed on July 9.
Other appointments the Palace announced on Wednesday include:
· Abdulgani M. Macatoman, Undersecretary, Department of Trade and Industry (DTI)
· Roberto P. Alabado III, Assistant Secretary, Department of Tourism (DoT)
· Patricio S. Bernales, Jr., Director II, National Bureau of Investigation (NBI), Department of Justice (DoJ)
· Charlo C. Collado, Deputy Director, Bureau of Corrections (BuCor), Department of Justice (DoJ)
· Julius A. Hidalgo, Register of Deeds III, Land Registry Authority (LRA), Department of Justice (DoJ)
· Paterno D. Morales, Director II, National Bureau of Investgation (NBI), Department of Justice (DoJ)

DBM chief warns of SC ruling’s fiscal risk

July 12, 2018 | 12:33 am

By Elijah Joseph C. Tubayan
Reporter
THE GOVERNMENT’S fiscal position may be at risk from the Supreme Court (SC) ruling that local governments’ share in state revenues includes all national government taxes, not just those collected by the Bureau of Internal Revenue (BIR), Budget Secretary Benjamin “Ben” E. Diokno said on Wednesday.
Mr. Diokno said the national government will file a motion for reconsideration through the Office of the Solicitor General (SolGen), as it cannot afford to comply with the ruling.
“As of now, hindi pa namin nantatanggap ‘yung (we have not received a copy of the) decision,” Mr. Diokno said in a panel discussion at the second Pre-State of the Nation Address Forum in Manila.
“We don’t know how much the damage sa national government. There are varying estimates: it’s P1.2 trillion to about P6 trillion. ‘Yun ‘yung (that is the estimated) effect niya sa gobyerno (on the government),” said the head of the Department of Budget and Management (DBM).
“So ‘yun yung ipapa-apela namin sa (we will ask the) SolGen to (file an appeal to) reverse the decision. Hindi natin kaya ‘yun ganong kalaki (We cannot afford such a huge reduction in retained national government revenues).”
He told reporters afterwards that complying with the high court’s ruling may double the national government’s budget deficit to an equivalent of six percent of gross domestic product (GDP) from a programmed three percent.
“Definitely may (there will be an) effect sa (on) deficit, aabot ‘yung deficit namin ng mga six percent. Ang tawag dun unmanageable public sector deficit. So hindi kaya.”
Although local governments will have more revenues to funds their projects, Mr. Diokno said global debt watchers may take away the country’s investment-grade credit rating — making it harder for the government to secure relatively cheaper credit at a time it implements its more-than-P8-trillion infrastructure development program until 2022.
“Babagsak yung credit rating natin. International confidence will go down. We’ll have to cut significantly ‘Build, Build, Build’,” he said.
The Budget chief described his estimate as “all speculation” as his department has yet to compute the ruling’s impact.
His figures compared to the “P498.85 billion or very close to P500 billion” due local governments for 1992-2012 that was estimated by Batangas Governor Hermilando I. Mandanas, who raised the issue to the high court in January 2012 as legislative representative then of the province’s second district.
Republic Act No. 7160, or the Local Government Code of 1991, provides for internal revenue allotments (IRAs) for local governments amounting to 40% of “national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year”.
IRAs are a key source of local government funding, although development planners and economists have taken such units to task for being too reliant on such doleouts and lulling them to complacency in improving their own collections of local taxes for business and real property, as well as fees for services.
Economists interviewed yesterday were divided on the ruling, with one arguing that many local government units (LGUs) have a poor track record in spending wisely and another saying that LGUs are in the best position to identify and implement projects they need for development.
“LGUs have not displayed the capacity to spend resources productively. That’s why I am very skeptical about federalism because it is not very clear about how they will spend resources,” Raul V. Fabella, a retired professor of the University of the Philippines School of Economics, said in a phone interview, adding that carrying out the Supreme Court decision “will cripple or slow down the national government program”.
Describing the ruling as a “bad move,” Mr. Fabella explained that “development of the countryside is dependent on infrastructure spending.”
“You think LGUs with more money will spend it on meaningful infrastructure? I doubt it,” he said.
“I think they’ll spend it on frivolous things. More resources in the hands of Ben Diokno is probably more conducive to regional development than otherwise.”
“The country needs arterial infrastructure which needs huge fiscal resources. Diffusing and dissipating resources is wrong-headed. More basketball courts will not do,” Mr. Fabella said.
But Bernardo M. Villegas, an economist at and one of the founders of the University of Asia and the Pacific, said separately in an e-mail: “I agree with the decision.”
“This can make federalization completely unnecessary. Under the Local Government Code… LGU heads can partner with the private sector to do their own Build Build Build, such as roads, railways, airports, seaports, government centers, public markets, school buildings, etc.,” Mr. Villegas said.
“I know of a good number of very competent mayors and governors who can implement these PPPs (public-private partnerships) more effectively and quickly than the national government agencies,” he explained.
“The IRA that goes to the LGUs can be used by them as the counterpart for these PPP. The national government can just delegate some of the public works and other expenditures on educational and health facilities to the LGUs. By devolving part of these projects to the LGU, the national government does not have to increase its deficit as Secretary Diokno maintains.”
Mr. Fabella, however, said that many local government projects are not bankable compared to those of the national government, hence, may not be attractive to the private sector.
Department of Budget and Management data show P522.75 billion worth of IRAs to 43,607 LGUs this year, 7.37% more than last year’s P486.89 billion.
RA 7160 also requires local governments to spend no less than 20% of their IRA on social development projects.

BSP check shows most Filipinos unbanked

July 12, 2018 | 12:32 am

By Melissa Luz T. Lopez
Senior Reporter
MAJORITY of Filipinos still did not have bank accounts as of 2017 due to lack of funds to meet required minimum balances, a study of the Bangko Sentral ng Pilipinas (BSP) showed.
Results of the latest Financial Inclusion Survey showed that 22.6%, or some 15.8 million Filipino adults, maintained formal accounts as of last year.
The figure improved from 22% in 2015, but meant that 52.8 million adults still did not have accounts with any financial institution.
Of those who owned formal accounts, 11.5% said these were held with banks, lower than the 14.1% reported two years ago.
In contrast, the share of adults who held accounts with microfinance organizations jumped to 8.1% from 1.8% in 2015.
Filipinos who formed part of cooperatives stood at 2.9%.
Those with e-money accounts reached 1.3%, while holders of accounts under non-stock savings and loan associations steadied at 0.3%.
The BSP cited “marked disparities” in terms of income and education, saying: “Adults who finished college are more than twice likely to have an account than high school graduates and more than thrice likely to own an account than elementary graduates.”
Half of those in the middle- to upper-class brackets have formal accounts, versus a lower penetration rate among those belonging to lower-income brackets.

By location, the BSP said one in three adults based in Metro Manila had an account. This was followed by 25% in Mindanao, 20% in the Visayas and 19% in the rest of Luzon.
“Out of 52.8 million adults who do not have an account, 60% cited not having enough money as the primary reason,” the central bank said in the June 29 report.
Most banks set a required maintaining balance in order to keep deposit accounts active.
Other reasons cited by the respondents include a “perceived lack of need” for these accounts (21%), lack of documentary requirements (18%) and high cost (10%).
Poor knowledge on how to open accounts, lack of work and low level of awareness about banking were cited among other barriers, the BSP said.
Adult women had formal accounts at 29.1%, versus 15.4% among men.
Despite the increase in account holders, only 18% of adults said they actually use them for payments.
Many still prefer cash-based transactions amid fears of hacking and other cyber security breaches.
Automated teller machines, pawnshops and bayad (payment) centers see the biggest traffic for transactions, with survey respondents saying these are the most accessible channels for them.
A fifth said they were “not aware” that they have the option to make electronic fund transfers.
The BSP said there is room for a significant push in the digital space, as 38% of adults owned a smart phone with 86% of them able to go online via mobile data connections.
“While formal account penetration remains low and growth is modest, there are clear opportunities for greater financial inclusion enabled by digital technology,” the central bank said. “The country’s young population, high smartphone penetration, and high Internet adoption can be significantly leveraged for electronic payments and fund transfers.”
Digitizing payment and remittance transactions would be crucial to achieving digital financial inclusion, the central bank said.
The BSP targets to raise the share of digital payments to 20% of total transactions by 2020 from a measly one percent in 2013 through its National Retail Payment System project.
Studies showed that gross domestic product could increase by more than 14% if the financial inclusion gap were closed in the Philippines.
The World Bank said authorities should prod Filipinos to use their account beyond storing funds and instead pay for utility bills, domestic remittances and retail transactions.
The survey also showed more Filipinos saying they are saving money.
Around 48% said they have money stashed for safekeeping, up from 43% in 2015.
A third of adults said they kept their savings at home, while those keeping them with banks dropped to nine percent.
On the other hand, only 22.3% said they had outstanding loans, sliding from a 47.1% in 2015.
A significant number of Filipinos also shunned informal lenders, with those tapping these channels down to 40% from 72% previously. Those who tapped such channels said they borrowed from family, friends and other sources previously.
At the same time, loans from formal sources also declined as over a third of adults said it was “difficult” to borrow from financial firms.
More than half cited documentary requirements as the major hurdle in applying for a loan.
Still, majority of borrowers said they are “not burdened” and are able to pay on their due date.
The survey covered 1,200 Filipinos aged at least 15 years old from December 2017 to February 2018.
The central bank conducts the study every two years.

Philippines ‘below average’ in regional innovation ranking

July 12, 2018 | 12:31 am

THE PHILIPPINES’ rank in terms of innovation was unchanged from a year ago, despite “high scores” in business environment, education and information and communications technology (ICT), according to an annual report of the Cornell University, INSEAD and the World Intellectual Property Organization (WIPO).
The country ranked 73^rd in the 2018 Global Innovation Index (GII) out of 126 economies, steady from a year ago.
The Philippines ranked 9^th among the 30 lower-middle-income countries included in the index and placed 13^th among 15 countries in Southeast Asia and Oceania, which was described as “below average.”
The report said the country performed “better” in terms of innovation inputs, with its rank inching up to 82^nd from 83^rd in 2017.
In terms of innovation output, the Philippines fell to 68^th place from 65^th in the same comparative years.
The same report found the country still “quite efficient in translating its innovation inputs into outputs,” despite the decline in rank to 62^nd from 55^th. “Despite this downward trend, this rank is still stronger than its overall GII position (73^rd),” it noted.

“The Philippines has high scores in five of the seven GII areas — Institutions, Human Capital & Research, Infrastructure, Business Sophistication and Knowledge & Technology Outputs, in which it scores above the average of the lower-middle-income group,” read the report, adding that “[t]op scores in areas such as Business environment, Tertiary education, Information & Communication Technologies (ICT), Knowledge workers, and Knowledge impact are behind these high rankings.”
“Among innovation inputs, most of the GII strengths for the Philippines lie in Market Sophistication and Business Sophistication,” the report read.
These factors involved strengths in knowledge absorption, firms offering formal training and research talent in business enterprise, trade, competition and market scale and market capitalization.
Other strengths include science and engineering graduates, as well as knowledge diffusion, productivity growth, high-tech manufacturing and ICT service exports.
The report cited the country’s weakness in institutions, as shown in terms of political stability and safety, as well as ease of starting a business.
It also noted weaknesses in human capital and research index as determined by expenditure on education, pupil-teacher ratio, tertiary inbound mobility, global research and development companies expenditure.
There were also weaknesses in ease of getting credit, ease of protecting minority investors, credit and investment, patents by origin, as well as scientific and technical articles.
At the same time, the report said that, “relative to GDP (gross domestic product), the Philippines performs at its expected level of development.”
TASKS AHEAD
Sought for comment, Philippine Chamber of Commerce and Industry President George T. Barcelon said in a phone interview yesterday that despite getting some strengths in education, the government should put more attention in advanced science, technology, engineering, and mathematics (STEM) education.
“I think the problem is in our schools. Kulang tayo sa STEM education. That’s why we still don’t have the technical capabilities unlike other countries,” he said.
“On our part, we have been focusing on innovation. We have been attending seminars in Japan on innovation and we are applying that. Our focus in our industry is really innovation and technology, research. In our industry, we have woodcraft, arts, the creative industry. We have that to help our exports apart from BPOs (business process outsourcing).”
Mr. Barcelon added: “I believe, gradually, we will improve our rank over the following years. The DoST (Department of Science and Technology) knows it, government knows it, and the private sector — we already have the awareness.”
However, despite government steps to encourage innovation — such as a law enticing Filipino scientists abroad to come home — potential innovators still have limited access to capital to fund research, especially from the government.
“I think the problem is funding. We have the students, some of them okay naman ‘yung project, pero wala silang funding. On the private side, wala namang problema doon. But the government side, we still need more,” said Mr. Barcelon.
European Chamber of Commerce of the Philippines (ECCP) President Guenter Taus cited the need for government to remove more obstacles to innovation.
“With this, we urge the current administration to continue to improve the IPR (intellectual property rights) protection and enforcement framework, as the absence of such may discourage innovation and potential investments,” he said in an e-mailed response to a request for comment.
Mr. Taus also noted the need to improve ICT infrastructure such as fiber optic networks, towers and base stations, as well as to “incentivize” the already-growing number of micro, small and medium enterprises.
“Moreover, enhancing innovation and competition in the country will achieve the long-term goals of the Philippine Inclusive Innovation Industrial Strategy in order to create jobs, attract investments, and stimulate economic growth,” Mr. Taus said.
“The ECCP remains hopeful that the government will speedily implement various measures to encourage innovation and growth. The European business community stands ready to support the Philippine government in this important undertaking.”
The report said innovation stimulates economic and human development.
Switzerland remained at the top of the 2018 index, followed by the Netherlands, and Sweden. The United Kingdom took the fourth spot while Singapore placed fifth, followed by the United States.
Finland, Denmark, Germany, and Ireland took the seventh to 10^th places, respectively.
“Innovation is clearly necessary to address the energy/environment equation, but let us keep in mind that such innovation cannot be only technological. New social, economic and business models are required, including through efforts to promote smart cities, mobility solutions based on shared vehicles — and a global citizenry with better information on the impacts of various energy policies,” Bruno Lanvin, INSEAD executive director for Global Indices, said in the report.
“Ultimately, we must ensure that the solutions to our energy challenges are suited to local needs, do not entail additional disruptions and reduce inequalities.” — Elijah Joseph C. Tubayan

Global innovation index 2018

July 12, 2018 | 12:31 am

Global debt load at a record $247 trillion in Q1 — IIF

July 12, 2018 | 12:30 am

NEW YORK — The amount of debt held by both mature and emerging markets tracked by the Institute of International Finance (IIF) rose to a record $247 trillion in the first quarter of 2018, up 11.1% from the same period a year ago.
The report released on Tuesday by the IIF, a global bank lobbying group, said the ratio of debt to gross domestic product (GDP) of these nations, which include the Group of Seven industrialized nations and the majority of emerging market economies, increased to 318%.
That is the first quarterly increase in the debt-to-GDP ratio since the third quarter of 2016.
“With global growth losing some momentum and becoming more divergent, and US rates rising steadily, worries about credit risk are returning to the fore, including in many mature economies,” the IIF said.
Since December 2015, the US Federal Reserve has raised interest rates seven times to a range of 1.75-2.00%, with more increases expected.
Debt levels for household, non-financial corporate and general government sectors rose to $186 trillion in the first quarter of 2018. Financial sector debt rose to a record high $61 trillion.
High debt levels in the non-financial sectors could be problematic, although unlikely to become a debt crisis akin to a decade ago, IIF Executive Managing Director Hung Tran told reporters ahead the data release. “Non-financial borrowers in the corporate sector, in the household sector, in the government sector having very high debt levels, will find it very costly and difficult to refinance and borrow more in order to sustain investment and consumption going forward. That is really causing growth to falter, so what I term headwinds to growth,” he said.
Emerging market debt rose by $2.5 trillion to a record $58.5 trillion in the first quarter.
Variable-rate debt holders face greater risks because of rising benchmark interest rates, the IIF said, noting that over 10% of emerging market corporate bonds are pegged to this asset class.
“For many emerging markets, which rely heavily on bank financing, higher borrowing costs for banks could be passed through to the corporate and household sectors, so something of a hidden risk in terms of this floating rate borrowing,” said IIF Senior Director Sonja Gibbs.
Mature economies are even more reliant on variable rate debt, the report said, with the ratio among G7 economies ranging from 18% in Canada to 38% in the United States and Italy. — Reuters

CIC expects single-digit growth amid challenges

July 12, 2018 | 12:09 am

By Arra B. Francia, Reporter
CONCEPCION Industrial Corp. (CIC) is looking at a single-digit growth in both earnings and revenues for the year, calling 2018 an “even more challenging year than 2017” due to inflationary pressures and the weakening peso.
“I think economy-wise, it will be even more challenging, with the full effect basically of inflation going up, continued peso devaluation,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion told reporters after the company’s annual shareholders’ meeting in Makati City on Wednesday, July 11.
Mr. Concepcion noted higher inflation — which accelerated to a fresh five-year high of 5.2% in June — may affect consumer spending over the near future.
“But as a company, we still look at single-digit growth,” he said.
The listed firm, which supplies air-conditioners, air-conditioning solutions, and refrigerators under the Carrier, Toshiba, Condura, and Kelvinator brands, was able to sell over a million appliances in 2017. CIC expects sales to grow in the teens for this year, as it introduces new products in the refrigeration and washing machines category.
“A lot of the things to make sure that we are strong is to keep on introducing new products. We had 25% more SKUs (stock keeping units) last year. This year, another 25% in terms of new product launches,” Mr. Concepcion said.
To support the introduction of new products, CIC plans to invest between P150 million to P200 million to expand capacity in existing plants.
CIC manufactures a select range of its air-conditioners inside a factory in Light Industry and Science Park, where it produces 500,000 air-conditioning units a year. It also has a manufacturing facility for refrigerators, with a capacity of 300,000 units per year.
To-date, Mr. Concepcion said the facilities’ utilization rate is at 70-80%. Should sales continue to grow at a pace of 15-20% in the coming years, the company’s manufacturing facilities are expected to be fully utilized soon.
Since the Philippine peso has been depreciating, the CIC official noted local manufacturing has also become more competitive. With this, the company is looking at locally producing some products that they used to import.
“With that, if you look at the horizon demand, penetration level, the capacity of our plants are not sufficient to handle that. So as early as now we are investing,” Mr. Concepcion said.
CIC reported on Wednesday that sales grew by 14% in the second quarter, while profit after tax after minority interest (PATAMI) went up by 12%.
“It’s partly because you have price increases, but the big part is demand of the consumers as well as operational efficiencies, new products that we’re doing,” Mr. Concepcion said.
Shares in CIC gained 20 centavos or 0.37% to close at P53.95 each at the stock exchange on Wednesday.

LANDBANK: 43% of PDS shareholders accept offer

July 12, 2018 | 12:08 am

THE LAND BANK of the Philippines (LANDBANK) said shareholders representing 43% of the fixed-income bourse have accepted its offer to buy their shares, with the share purchase agreement (SPA) expected to be signed this week.
“We can just say that 43% have already accepted our offer, and we are just finalizing now the share purchase agreement. So we hope that this share purchase agreement would be finalized within the week,” LANDBANK President and Chief Executive Officer Alex V. Buenaventura told reporters on the sidelines of the signing of the Pantawid Pasada program on Wednesday.
He noted shareholders have signed nondisclosure agreements to proceed with further negotiations before the SPA for shares in the Philippine Dealing System Holdings Corp. (PDSHC) is finalized.
“I cannot disclose the names. I can just generalize that many have given us acceptance letters, representing 43%,” he added.
Mr. Buenaventura did not say whether the Philippine Stock Exchange (PSE) was among those willing to sell its stake in the fixed-income bourse.
Last month, LANDBANK said PSE — which had earlier planned to take over the PDSHC — has indicated its interest to sell its shares.
LANDBANK had offered to buy the PDS shares at P360 apiece, higher than the PSE’s P320 per share offer in its previous SPAs that has already lapsed.
In April, only one shareholder has accepted LANDBANK’s offer, and Mr. Buenaventura said that once PSE agrees to the terms, others may follow.
The state-run lender currently owns 1.56% of PDSHC through the BAP, which holds a cumulative 13.26% share for itself and its member banks.
The government wants to take at least a majority stake in the fixed-income bourse through LANDBANK to expedite the development of the capital markets and to improve the bank’s finances to deliver more robust credit for farmers and small enterprises.
The planned PSE-PDS merger had dragged on due to the PSE’s failure to secure exemptive relief from the Securities Exchange Commission on the 20% single-industry ownership limit.
The PSE was able to increase its stake to 72% of the fixed-income exchange before the SPAs expired, but did not complete the merger. — Elijah Joseph C. Tubayan

Grab: P2 per minute charge is legal

July 12, 2018 | 12:07 am

GRAB Philippines maintained that its P2 per minute waiting time charge was legal, saying it will study its legal options regarding the Land Transportation Franchising and Regulatory Board (LTFRB) order that slapped a P10-million fine on the company for allegedly overcharging passengers.
“We stand by the legality of the P2 per minute fare component and we are disappointed by the order of LTFRB. We would like to reiterate that it is legal, pursuant to the Department Order 2015-011,” Grab Philippines Country Head Brian P. Cu said in a statement.
Mr. Cu said the company is studying its legal options regarding the LTFRB order. “But no matter how we decide to move forward from this, be assured Grab will stay,” he said.
Meanwhile, LTFRB Board Member Aileen Lourdes A. Lizada issued a dissenting opinion on the LTFRB order, saying Grab Philippines’ fare structure had a legal basis.
“The authority given the transport network companies to formulate their fare structure can be clearly seen from Department Order No. 2015-011 of the Department of Transportation,” she said, in a dissenting opinion released on Wednesday.
Ms. Lizada said the P2 per minute charge was communicated to the LTFRB board through the Office of the Chairman, contrary to what the LTFRB said in its order released to reporters on Tuesday.
Last month, Transportation Secretary Arthur P. Tugade signed a new department order putting LTFRB in charge of setting fares for transport network companies (TNC), superseding the 2015 policy which allowed Grab to set its own fare matrix.
But Ms. Lizada said since the Department of Transportation (DoTr) order was issued was after the P2 per minute component was implemented, Grab Philippines should be “afforded good faith in setting its fare structure.”
“Penalties should be imposed upon effectivity of the regulatory policy,” she added.
In its July 9 order, the LTFRB imposed a P10-million fine on Grab Philippines for allegedly overcharging its customers, saying it failed to inform the board of its P2 per minute waiting time charge. It also ordered the company to reimburse riders through a rebate system the P2 per minute charge it implemented from June 5, 2017 to April 19, when it was suspended.
The order indicated Grab Philippines “failed to impress the Board that its imposition of the per minute travel fare is within purview of its discretion or authority.” It noted the P2 per minute charging scheme is “invalid and without authority from the Board.”
Grab Philippines may file a motion for reconsideration within 15 days since the LTFRB order was issued. If denied, it may appeal its case to the DoTr. — Denise A. Valdez

A little bit of honesty from wines

July 12, 2018 | 12:07 am

THE SOUTHWESTERN region of France has played host to many films, from the classic Grace Kelly-starrer To Catch a Thief, to the comedy Dirty Rotten Scoundrels. But while they like to use it as a setting for movies about swindlers and con men, Thomas Dassé, Export Manager of Lionel Osmin & Cie, describes the people there as “more than honest.”
This honesty perhaps bleeds into the wines: Mr. Dassé says that one of the aims of Lionel Osmin is to promote the grape varietals in their most honest form. To do this, Mr. Osmin, just in his 40s, ages his wine in stainless steel tanks. Other lines from the wine company displaying an EU-designated AOC (appellation d’origine contrôlée; though on their website they’re listed as appellation d’origine protégée, AOP, which is used more for food products) follow tradition by using oak.
However, their basic line, with grape varietals such as sauvignon blanc and malbec, do not, because as Mr. Dasse said, “If you’re using oak, the aromas that you’re bringing are the aromas of the oak.”
“We don’t want to use oak, which in a way, hides the potential.”
Sofitel hosted a wine dinner earlier this week featuring Mr. Osmin’s wines. The meal began with a Bourbon Vanilla-flavored foie gras mi-cuit with a Coca-Cola reduction. This was paired with the Lionel Osmin La Reserve Sauvignon Blanc 2016. The wine has a flavor crystalline in its sharpness, rounded out with a hint of saffron and cream at the end. This cut effortlessly into the rich fatty flavor of the foie gras. This wine was also paired with a second course of prawns flambeed in Pernod, rich and indulgent. With this pairing, it lends a bit of cleanliness to the oceanic flavors of the prawn, though the pairing with the foie gras was definitely the winner here.
Next came a Tuna al Pesto with creamy polento, paired with a Lionel Osmin Villa La Vie en Rosé 2016. The robustly flavored tuna held its own against the rather unconventional rosé. See, while rosé is usually made with syrah, or else pinot noir, Lionel Osmin’s is made with a lesser-known grape, the negrette, which only grows in Southwest France and some parts of Canada where it’s known as the Petit Saint-George. This results in a rosé that is sharper and more pungent, like a strong perfume, and tasting a bit like what you’d imagine a certain shade of lipstick would taste like.
The last course, a herb-crusted cannon of lamb, didn’t receive rave reviews from my table, seeing as the other guests took only a few bites. The other guests at other tables, however, raved loudly about it, and their plates were licked clean. Food and wine are subjective, as seen in the following case: while this reporter says that the wine paired with the lamb, a Lionel Osmin La Reserve Malbec 2015 had a hint of smoke and a lot of tannins, and even ending on a peppery note, the other guests disagreed. They thought this wine lacked complexity, which was why it couldn’t hold its own ground against the lamb.
In any case, as we’ve mentioned above, Mr. Dasse believes that the people from his region are beyond honest.
“They are true, they don’t lie to you, and you can’t lie to them. Same with the wine.” — JLG

Energy department plans to put up solar-powered charging stations for e-trikes

July 12, 2018 | 12:06 am

By Victor V. Saulon, Sub-Editor
THE Department of Energy (DoE) has been tasked to put up solar-powered charging stations to go along with its deployment of 3,000 electric tricycles (e-trikes) in selected local government units (LGUs) all over the country.
“Part of the challenge right now with the e-trike is that we were also given the go-ahead to use the Clean Technology Fund (CTF), the grant from CTF . . . to put up solar charging stations. So we’re drafting terms of reference for that. We’ll have to bid it out,” said Energy Assistant Secretary Leonido J. Pulido III
“That’s gonna take a while because we’re waiting for certain consultants to come in and help us come up with a plan and terms of reference,” he told reporters in a chance interview during the 6^th Philippine Electric Vehicle Summit at the SMX Convention Center, Mall of Asia Complex, in Pasay City.
The CTF is a grant from the Asian Development Bank (ADB), he said, placing the allocation for the solar charging stations at around $4 million.
The charging stations are the latest twist in the DoE’s e-trike project that encountered delays in implementation under the past administration.
In January 2016, the DoE awarded the contract to supply 3,000 e-trikes to the consortium of Japan’s Uzushio Electric Co. Ltd. and its local unit Bemac Electric Transportation Philippines, Inc. The price of each vehicle ranged between P455,000 to P461,000.
The award followed a second round of negotiation to further lower the price offered by the qualified lone bidder for the project.
However, when Energy Secretary Alfonso G. Cusi took over in 2016, he canceled part of the loan contract as he wanted to revisit available options in view of “significant flaws” in the project’s design, the choice of just one e-trike model and its pricing.
After much delay, the DoE revived the project in June 2017 but scaled down to 3,000 units from the original 100,000 for a lower cost of P1.73 billion from P21.672 billion.
Mr. Pulido said for every deployment of the 3,000 units, the DoE is required to obtain a “no-objection” letter from the ADB, which funded the project. The signatories of the contract were the ADB and the Department of Finance.
So far, about 30 to 40 e-trikes had been physically deployed to LGUs. Around 1,600 to 1,700 units have been committed to be deployed to Marawi, Valenzuela, Muntinlupa, Las Piñas and Pateros, he said.
The DoE official said Marawi is almost done with the documentary requirements and is set to receive 190 units to bring the total deployment to the city at 200.
The rest of the units have not been committed but the DoE is considering a number of applications, Mr. Pulido said.
Boracay, which is undergoing rehabilitation, is a likely recipient as there are ongoing talks with the task force handling revival of the resort island, he said. An LGU’s tourism value is among the criteria for deploying an e-trike to that locality.

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