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Shares climb in thin trade ahead of inflation data

By Arra B. Francia, Reporter
SHARES firmed up on Tuesday amid thin trading as investors stayed on the sidelines ahead of the release of June inflation data.
The benchmark Philippine Stock Exchange index climbed 0.54% or 39.38 points to 7,267.34, marking the third consecutive day of gains for the market.
The broader all-shares index also rose 0.26% or 11.68 points to 4,409.83.
“Philippine markets continued to remain positive in July albeit the weaker trading volumes as US indices also kicked off the beginning of the third quarter on a positive note,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
Markets overseas finished relatively flat on Monday, with the Dow Jones Industrial Average adding 0.15% or 35.77 points to 24,307.18. The S&P 500 index went up 0.31% or 8.34 points to 2,726.71, while the Nasdaq Composite index edged higher by 0.76% or 57.38 points to 7,567.69.
Asian indices closed mixed as China’s trade relations with the United States continued to weigh down investor sentiment.
Back home, four sectoral indices moved to positive territory, led by holding firms which jumped 0.92% or 65.43 points to 7,181.17. Industrials followed with an increase of 0.59% or 61.56 points to 10,447.47, while financials climbed 0.34% or 6.09 points to 1,787.61. Property added 0.31% or 11.10 points to 3,563.
On the other hand, services lost 0.54% or 7.57 points to 1,391.44, while mining and oil gave up 0.37% or 36.60 points to 9,711.80.
The market saw some 539.76 million issues valued at P4.78 billion switch hands, almost flat from the previous session’s turnover of P4.8 billion.
“The low value turnover and relatively quiet moves by the index may be representative of the hesitation investors are feeling in anticipation of June’s inflation figure to be released this Thursday, June 5,” Papa Securities Corp. trader Gabriel Jose F. Perez said in an e-mail.
The Philippine Statistics Authority is scheduled to release inflation figures for June on July 5, with the Bangko Sentral ng Pilipinas projecting it to stay between a range of 4.3% to 5.1%.
“Locally, investors are watching out for the latest inflation which comes out Thursday, and will remain on the sidelines as the US closes after tonight for its Independence Day celebration,” Regina Capital’s Mr. Limlingan said. The US celebrates its Independence Day every July 4.
Decliners outpaced advancers, 97 to 88, while 50 names remained unchanged.
Net foreign outflows slimmed to P424.86 million, slightly lower than Monday’s net sales of P457.75 million.
The most heavily traded stocks for the day included Universal Robina Corp., which rallied 2.3% to P124.80 each, Ayala Land, Inc. with flat shares at P38 each, and SM Investments Corp. that jumped 1.67% to P915 each.

Iloilo hospitals get P246 million from provincial supplemental budget

A P559 million supplemental budget was approved on June 26 by the provincial board, of which P246 million would go to the 12 district and provincial hospitals. Raul N. Banias, provincial administrator and chief of the Hospital Management Office, gave the spending breakdown as follows: P169 million for infrastructure; P46 million, medical equipment; P12 million, medical assistance program; P6 million, subsidy for the San Joaquin Mother and Child Hospital; P1 million, subsidy for indigents; and hiring of additional nurses. Mr. Banias also brushed aside public criticism that the provincial government has failed to address the needs of hospitals. “We have invested P1.6 billion, facility wise. We have hired more than 600 personnel three years ago to increase the personnel complements of hospitals,” he said. He also noted that government hospitals have been operating beyond their capacities by 300% to 400%. “As the occupancy increases, we add more personnel,” he said. — Louine Hope U. Conserva

NCIP turns down council request to recognize IP reps; another selection process set

THE NATIONAL Commission on Indigenous Peoples-Davao Region office (NCIP-11) has turned down the request of the Davao City council to issue a Certificate of Affirmation (CoA) to Cherry Ann Ortiz-Codilla, who has been chosen as the new IP (Indigenous Peoples) representative. “Much to our desire to accommodate said resolution, however in doing so, we will be violating the Guidelines duly promulgated by the community pursuant to NCIP Administrative Order No. 001, Series of 2009,” NCIP XI Director Geroncio R. Aguio said in a letter sent to Vice Mayor Bernard E. Al-ag dated July 2, referring in particular to the provision that “prospective IPMR should have at least 25% Bagobo-Klata blood, which Ms. Codilla failed to meet.” Mr. Aguio said, “We could not allow or bent or circumvent our rules to suit a person or an individual… we will be setting a dangerous precedence wherein rules and law are for mere convenience: subject to different application depending upon individual desires and opportune.” The NCIP is set to conduct a new selection process for the IP mandatory representative to the council, which has been vacant since April. — Carmencita A. Carillo

DA-Davao sets P10-M seed fund for Gulayan program

THE DEPARTMENT of Agriculture-Davao Region office (DA-11) has earmarked a P10 million budget for seeds that will be distributed under the Gulayan Program to encourage communities to pursue backyard farming. “This is a 20% increase compared to the previous year’s budget for the Gulayan Program,” Melanie A. Provido, coordinator of the DA-High Value Crops Development Program. DA’s original Gulayan ng Masa program was established as a hunger mitigation program, and developed along with the integrated backyard gardening program in rural communities. “In the past five years we have covered 3,800 schools in Region 11 for this program,” she said. Under the program, DA trains teachers for setting up vegetable gardens in schools. Ms. Provido said the Gulayan Program has been expanded to the Gulayan sa Kampo in coordination with the military, and the Gulayan sa BJMP for gardens in prison compounds. — Carmencita A. Carillo

Nation at a Glance — (07/04/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Gatchalian willing to wait before deciding on fuel excise freeze

SENATOR Sherwin T. Gatchalian said on Tuesday that he wants to wait another quarter before recommending any suspension of fuel excise taxes under the tax reform law.
In an interview with reporters, Mr. Gatchalian, who chairs the Senate committee on economic affairs, said the Senate will “have to (resort to) some drastic measures” if the inflation rate breaches the 4.5% forecast of the Bangko Sentral ng Pilipinas (BSP) for the full year.
“I would rather be conservative and wait one more quarter. One more quarter will give you a strong indication whether it’s prudent to sustain the current excise tax in 2019,” he told reporters when asked if it was plausible to suspend fuel excise taxes to curb inflation.
“The BSP’s new target is around 4.5%, from 4.1%. They increased the upper limit of the target. For example, if it breaches 4.5% and accelerates, then we (may need) some drastic measures,” he added.
Republic Act 10963 or the Tax Reform Aceleration and Inclusion (TRAIN) law imposes excise taxes on gasoline and diesel of P7 per liter and P2.50 per liter, respectively. It contains a suspension provision for the scheduled increase of fuel excise taxes if the average Dubai crude oil price for three months prior to the scheduled increase reaches or exceeds $80 per barrel.
Mr. Gatchalian said the Senate may move to repeal the provisions on fuel excise taxes under the law if the inflation rate kept on rising.
“If inflation slows down, then that’ a good sign. If it accelerates then we will have to strongly recommend the suspension of excise tax (on fuel),” he said.
He also said he will continue to host briefings with economic managers regarding the inflationary effects of the TRAIN law and the status of its social mitigating measures as Congress resumes session in July.
Senators Grace S. Poe-Llamanzares, Joseph Victor G. Ejercito, and Paolo Benigno A. Aquino IV earlier called for the suspension of fuel excise taxes under the tax reform law due to the increasing prices of goods and services.
Mr. Aquino filed Senate Bill No. 1798 in May to introduce a mechanism that would suspend excise taxes on fuel when inflation breaches government’s quarterly targets. — Camille A. Aguinaldo

ADB approves technical assistance for flood risk management project

THE ASIAN Development Bank (ADB) on June 21 said it approved a technical assistance grant for the Integrated Flood Risk Management Sector Project covering various river basins across the Philippines.
The grant involves a $1-million technical assistance grant, co-financed with another $300,000 grant from the Cooperation Fund for Project Preparation in the Greater Mekong Subregion and in Other Specific Asian Countries.
The project is designed to reduce the vulnerability of families located near six of the country’s flood-prone river basins in Luzon, the Visayas, and Mindanao.
ADB will assist the government by improving flood risk management planning through strengthening data acquisition and data management, and improving flood protection asset management.
It will also aid the government in rehabilitating and constructing flood protection infrastructure; raising community awareness, and preparing and implementing disaster flood risk reduction and management plans.
The river basins in the project include the Apayao-Abulog river, the Abra river, the Jalaur river on Panay, and Mindanao’s Agus, Buayan-Malungon, and the Tagum-Libuganon rivers.
“The transaction technical assistance will help the government to prepare the ensuing project as well as develop a preliminary road map and a long-term investment program for flood risk management,” the ADB document read.
The lender said that the grant will also help fund feasibility studies, detailed engineering design, procurement, social and environment safeguard assessments.
“The poor are more vulnerable to disasters (flooding), which are exacerbated by climate change, as they have less means to cope with these events,” ADB said.
“The project will enhance their resilience to disasters by reducing flood risks, reducing vulnerability before, during, and after flooding events, improving early warning systems, rehabilitating flood protection infrastructure, incorporating flood risk in land-use planning and management, preparing disaster risk reduction and management (DRRM) plans, and improving community awareness and preparedness,” it added.
The project will be executed by the Department of Public Works and Highways. — Elijah Joseph C. Tubayan

Safety rules not keeping up with waste-to-energy technology, expert says

By Victor V. Saulon, Sub-Editor
PHILIPPINE LAW has not kept pace with developments in waste-to-energy technology, leaving communities surrounding these projects at risk from the pollutants they generate, which may cause cancer and other health problems, an energy technology expert said.
“There are some safety issues with regard to the engineering of the technology itself,” said Jorge A. Emmanuel, Ph.D., energy technology specialist at Siliman University, in an interview.
“When I was studying many of the waste-to-energy technologies, I found many engineering issues. It’s the reason why many of them actually end up shutting down after several years,” he added.
A number of local government units (LGUs) are building plants that produce energy from waste, or are in the process of securing agreements, including financing.
“But our biggest concern has to do with the emissions that come out. We know that the waste-to-energy plants produce a host of pollutants, particulate matter, heavy metals, sulfur dioxide, nitrous oxide and then the most dangerous chemical we know in science — the chlorinated dioxins and furans,” said Mr. Emmanuel, an adjunct professor at Silliman University’s Institute of Environmental and Marine Sciences.
The pollutants are produced by the facilities at various levels, he said. The residue after burning waste to produce energy, whether ash or slag, also contains toxic materials.
Pollution-control equipment concentrates the materials from the air, making it a bit cleaner, and places them in filter containers. These materials even find their way into the wastewater that comes out, he added.
“All of these are a big concern because in the Philippines, we do not have regulations, for example, on what is our limit of dioxin in the ash or our limit of dioxin in the wastewater,” he said.
“And for the air, we only require, I think, one or two tests a year, and in the studies that I’ve looked at unless you measure the dioxins continuously, you’ll miss a lot of the high levels of dioxins that is created throughout the year,” he added.
Mr. Emmanuel said existing technologies are costly and may not be included in the solutions being sold by foreign entities to the Philippines to maximize their profit.
“That to me is sort of a double standard,” he said.
“We have as much a right to protect our people’s health and our environment,” he said, referring to the solutions being denied to the Philippines by the countries where these came from.
One project that Mr. Emmanuel evaluated is Davao City’s waste-to-energy project, which is expected to produce around 12 megawatts of electricity once completed in the next four years.
Davao City’s facility will be funded in part by a ¥5.013 billion (P2.5 billion) in official development assistance from the Japanese government, and in part from possible private sector investors.
He said he sent several pages of comments regarding the design of the equipment, the toxic materials that will be released, and how the facility will commit Davao City to having to provide a certain quantity of waste per day to produce energy.
“It will undermine whatever work they’re doing in trying to recycle, reduce, minimize their waste,” he said.
He said legislation to facilitate the entry of waste-to-energy plants would go against the spirit of Republic Act No. 8749 or the Philippine Clean Air Act of 1999, and RA 9003 or the law the provides for an ecological waste management program.
“The law to me seems to be quite clear and that is we can’t allow incinerators, which we defined as the burning of the waste that produces [noxious] and toxic fumes, and that’s exactly what these things do,” he said.
“My fear is that this will enable this vicious cycle of continuing to produce waste in our society instead of actually reducing it,” he said.
In contrast to some of Mr. Emmanuel’s views, a professor at the University of the Philippines downplayed the levels of dioxins and furans produced by waste-to-energy facilities.
Florencio C. Ballesteros, Jr., Ph.D., an associate professor at the university’s environmental engineering graduate program, said the temperatures involved in the incineration process addresses the concerns on pollutants.
“As long as you operate beyond 800 degrees centigrade, you don’t generate [those] dioxins and furans,” he said.
“And then there’s also the second process that can mitigate or can remove dioxins if ever it’s generated at all,” he added, referring to a redundant process after the combustion to produce energy from waste in which the resulting gases are treated.
“We should not have a blanket statement that all waste-to-energy things are bad,” he said, adding that the technology is proven and that many countries have embarked on these projects.

Duterte: Government to spend over P139 billion for rollout of PAF projects

By Arjay L. Balinbin, Reporter
On its 71st anniversary on Tuesday, July 3, President Rodrigo R. Duterte announced that there are 16 projects for the Philippine Air Force (PAF) worth over P139 billion as part of the Revised Armed Forces of the Philippines (AFP) Modernization Program.
“In order to further develop a modern, adequately equipped, modern security force, the government is currently working on the implementation of the second horizon of the revised AFP modernization program by 2022, with 16 projects for the PAF worth over P139 billion already in the pipeline,” Mr. Duterte said in his speech.
He added: “Just this year, the PAF completed the acquisition of air defense surveillance radars, utility aircraft and unmanned aerial vehicles to complement our existing air assets.”
Mr. Duterte stressed that the government will continue “to face challenges” as it “realizes its shared vision of a stronger and safer Philippines.”
“It is therefore vital to innovate and invest in strategies and technologies that will allow our forces to perform their duties safely and effectively,” he said further.
The government, according to the President, is “expecting the delivery of additional equipment and machinery in the following years.”
He likewise reminded the PAF members that their chain of command does not end in him. “I therefore enjoin the men and women of the Philippine Air Force to remain vigilant as we intensify our fight against the current challenges of terrorism and external security,” he added.

DoLE issues ruling against Nutri-Asia labor contractor

THE Department of Labor and Employment (DoLE) said it ordered AMPC, a contractor allegedly engaged in illegal contractualization practices with Nutri-Asia, Inc. (NAI), to cease its contracting activities.
“Based on the order issued by Director Zenaida Angara-Campita of the DoLE regional office 3 last June 25, AMPC has no capacity to procure its own equipment and machinery because it leases the said tools from NAI,” DoLE said in a press statement on Tuesday.
The Labor department added that it ordered AMPC “to cease and desist from further engaging in contracting activities.”
AMPC was found to be engaged in labor-only contracting arrangements with Nutri-Asia. DoLE said that its inspectors found that the contractor “did not solely exercise control and supervision on the performance of its workers under the job or work contracted out. They also noted that AMPC workers are engaged in quality control and research and development which are all directly related to NAI’s main business.”
DoLE added that it ordered NAI to regularize 80 workers after its labor-only engagements with AMPC were discovered.
On the other hand, NAI’s other contractors B-Mrik Multi-Purpose Cooperative (BMPC), Fast Services Corp., Bison Security and Investigative Agency, City Service Corporation, and Manchester Engineering are said to be “compliant with labor laws” according to DoLE.
NAI has yet to provide comment to BusinessWorld at deadline time. — Gillian M. Cortez

Palace signs law creating power co-op rehab fund

PRESIDENT Rodrigo R. Duterte has signed into law the bill creating the Electric Cooperatives Emergency and Resiliency Fund (ECERF), officials said.
House Majority Leader Rodolfo C. Fariñas distributed on Tuesday copies of the letter sent by Executive Secretary Salvador C. Medialdea to Speaker Pantaleon D. Alvarez, confirming the law’s signing on June 29.
The law will go into the books as Republic Act 11039, ECERF Act. It aims to assist to Electric Cooperatives (ECs) affected by natural disasters to restore and rehabilitate damaged infrastructure.
The National Electrification Administration (NEA) will be tasked to coordinate with the National Disaster Risk Reduction and Management Council (NDRRMC) in coming up with policies for the implementation of the law.
Under RA 11039, ECs will be required to submit comprehensive and integrated disaster management programs, which will be evaluated by the NEA and NDRRMC. These include Emergency Response Plans, Vulnerability and Risk Assessments, and Resiliency Compliance Plans, among others.
Based on these submissions, the NEA will produce its own National Electric Cooperatives Emergency and Resiliency Plan (NECERP) to be integrated with the NDRRMC Plan.
The law mandates that P750 million of NDRRMC funds be allocated for the initial implementation of the ECERF Act. The NEA may also receive “donations in the form of funds, materials or equipment, whether local or international, intended for the express purpose of restoring or rehabilitating” power facilities.
RA 11039 consolidates Senate Bill 1461 and House Bill 7054 and was approved by the Bicameral Conference Committee on March 7, 2018. — Charmaine A. Tadalan

Nickel miners claim planting program covers 2,000 hectares

THE Philippine Nickel Industry Association (PNIA) said its members have been planting trees to rehabilitate sites near their mines in northeastern Mindanao and Palawan.
In a statement on Tuesday, the association said seven nickel miners have so far planted around 4.2 million trees in the Caraga region and Palawan.
PNIA Executive Director Charmaine Olea-Capili said: “Our ‘green’ footprint is larger than our mining footprint in terms of area. Our aggregate reforestation effort comes up to a total of about 2,000 hectares (ha) planted to date,” she said.
The planting program includes calamansi, rambutan, cashew, jackfruit, and cacao, among others, which are expected to provide livelihoods to the host communities.
“Much effort has been poured into rehabilitation because what has been planted will outlast the mine itself,” Ms. Capili said.
Early this year, the Department of Environment and Natural Resources proposed to require miners to increase their reforestation efforts.
Ms. Capili said the planting activities have resulted in forest density of 2,100 trees per ha, higher than the National Greening Program’s goal of 1,000 trees per ha.
Through the NGP, the government hopes to reforest 1.2 million ha. by 2022. — Anna Gabriela A. Mogato