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New batch of Shari’ah lawyers takes oath

The Supreme Court (SC) en banc on Friday welcomed the 2018 Shari’ah Bar Examinations passers at the SC’s En Banc Session Hall to formally declare them as Shari’ah lawyers, according to a press release.
SC Associate Justice Lucas P. Bersamin, the 2017 Bar Examinations Chairperson, led the oath-taking ceremony of the 191 passers who may now hear cases in the country’s Shari’ah District and Circuit Courts.
A total of 360 examiners took the special bar examinations last Jan. 21 and 28 but only 53.06% passed, with Rohanifah Abdul-Rahman topping with an over-all rating of 90.40%. — Dane Angelo M. Enerio

Consumer group calls for regulation of price hikes after TRAIN

A consumer group has called on government to regulate the continuous increase in the prices of goods and services partly brought about by the Tax Reform for Acceleration and Inclusion’s (TRAIN) additional taxes.
“Aside from scrapping the TRAIN law’s collection of indirect taxes from poor Filipinos, SUKI suggests that agencies responsible in facilitating the delivery of public goods and services, such as the Department of Trade and Industry, the Department of Energy and the National Food Authority, practice strict regulation of prices in order to uphold consumers’ right to access and afford their basic needs,” the Samahan at Ugnayan ng mga Konsyumer para sa Ikauunlad ng Bayan (SUKI) said in a statement. — Janina C. Lim

LANDBANK offers P472 million to buy PSE shares in PDS

The Philippine Stock Exchange, Inc. (PSE) said it has received an offer from the Land Bank of the Philippines (LANDBANK) to buyout its shares in the Philippine Dealing System Holdings Corp. (PDSHC) for P472.12 million.
In a disclosure to the stock exchange on Friday, April 27, the PSE said LANDBANK offered to buy its shares in the fixed income exchange for P360 each.
The PSE said its board of directors has yet to discuss the offer. — Arra B. Francia

Rice import bid fails, NFA to rely on private traders

The National Food Authority (NFA) will continue to depend on private traders to provide cheaper rice in the market after its first bidding for the importation of 250,000 metric tons (MT) of rice failed on Friday, April 27.
NFA Deputy Administrator for Marketing Operations Judy Carol L. Dansal said that should there be any delays in the importation due to the failed bid, the local traders will only have to support for only up to five days.
“This is a G2G procurement. our governments are watching over us and they are supporting each other,” she added.
“They are committed to help each other. We are positive because our neighbors are also friendly to the Philippine government.”
Citing the province of Isabela, Ms. Dansal said that it has committed 100 trucks carrying 500 bags of rice to be sold at P39 per kilo.
The NFA has set a reference price of $483.63 for 15% broken and $474.18 for 25% broken, as approved by its administrator Jason Laureano Y. Aquino.
However, both countries failed to comply with the reference price.
Thailand did not submit any bid for the 15% broken, while it has set a price of $530 per metric ton for 25% broken. The country also only pledged to ship 120,000 MT of 25% unbroken rice.
Vietnam offered a bid of $540 and $532 for 15% broken and 25% broken, respectively.
It pledged to ship 50,000 MT of 15% broken and 100,000 MT for 25% broken, which still falls below the 250,000 MT demand of NFA.
On its re-offer,Thailand lowered its bid to $445 per MT, while Vietnam had set its prices to $450 per MT and $441 per MT for 15% broken and 25% broken, repsectively.
The NFA will be conducting a second bidding next week, no later than Friday.
When asked if the Philippines is willing to recalibrate its reference prices to meet halfway, Ms. Dansal said that it will still have to be discussed by their supervisors. — Anna Gabriela A. Mogato

Marcventures posts revenue growth on higher nickel ore shipments

Listed company Marcventures Holdings Inc. said its mining subsidiary Marcventures Mining & Development Corp. (MMDC) saw an increase in revenue last year due to higher volume of saprolite nickel ore shipped.
In its annual report, Marcventures said MMDC sold 40 shipments or an aggregate of 2.18 million wet metric tons (WMT) of nickel ore.
Of the total shipment, saprolite filled up 26.5 vessels while limonite shipments took up 13 vessels.
This led to a 6.34% increase in revenues from 2016’s P1.92 billion to P2.04 billion.
Operating expenses, however, increased by 24.24% to P562.34 million, the highest increase in expenditures came from advertisement which saw a 2,537.90% increase to P2.27 million. — Anna Gabriela A. Mogato

North, South Korea seek peace, denuclearization in historic summit

The leaders of North and South Korea agreed to pursue a permanent peace treaty and the complete denuclearisation of their divided peninsula at a historic summit Friday laden with symbolism.
The North’s leader Kim Jong Un and the South’s President Moon Jae-in embraced after signing what they called the Panmunjom Declaration, following a day that began with an emotional handshake over the Military Demarcation Line that splits their countries.
The pair issued a statement confirming their “common goal of realising, through complete denuclearisation, a nuclear-free Korean peninsula”.
They agreed they would this year seek a permanent end to the Korean War, 65 years after hostilities ended in an armistice rather than a peace treaty.
Moon would visit Pyongyang in “the fall”, the two leaders said, also pledging to hold “regular meetings and direct telephone conversations”.
But Kim did not mention denuclearisation and analysts warned that while the summit was a good first step, similar promises had been made before and much remained to be done to resolve the issue of the North’s atomic arsenal.
In coming weeks Kim is due to hold a much-anticipated meeting with US President Donald Trump — who has demanded Pyongyang give up its weapons — that will be crucial in shaping progress.
Trump hailed the Korea summit as historic but warned “only time will tell”.
He implicitly claimed credit for the meeting, tweeting: “KOREAN WAR TO END! The United States, and all of its GREAT people, should be very proud of what is now taking place in Korea!”
The Panmunjom Declaration capped an extraordinary day unthinkable only months ago, as the nuclear-armed North carried out a series of missile launches and its sixth atomic blast, earning itself new sets of UN Security Council sanctions.
Kim and Trump had traded personal insults and threats of war, sending tensions soaring before Moon seized on the Winter Olympics to try to broker dialogue, beginning a dizzying whirl of diplomacy that led to Friday’s meeting in the Demilitarized Zone.
‘Heart-wrenching division’
Kim said he was “filled with emotion” after stepping over the concrete blocks that mark the border, making him the first Northern leader to set foot in the South since the Korean War ceasefire in 1953.
At his impromptu invitation, the two men briefly crossed hand-in-hand into the North before beginning the summit, only the third of its kind.
The truce village of Panmunjom was the “symbol of heart-wrenching division”, Kim said afterwards, but if it became “a symbol of peace, the North and South that have one blood, one language, one history and one culture, will return to becoming one”.
He pledged the two Koreas would ensure they did not “repeat the unfortunate history in which past inter-Korea agreements… fizzled out after beginning”.
In the declaration, the two sides said they would seek meetings this year with the US and possibly China — both of them parties to the 1953 ceasefire — “with a view to declaring an end to the war, turning the armistice into a peace treaty, and establishing a permanent and solid peace regime”.
But agreeing a treaty to formally close the conflict will be complicated — both Seoul and Pyongyang claim sovereignty over the whole of the Korean peninsula.
The two previous Korean summits in 2000 and 2007, both of them in Pyongyang, also ended with displays of affection and similar pledges, but the agreements ultimately came to naught.
‘First step’
Moon welcomed the North’s announcement of a moratorium on nuclear testing and long-range missile launches as “very significant”, calling it “an important step towards complete denuclearisation of the Korean peninsula.”
But how much progress was made on the nuclear issue remained unclear.
Pyongyang has always insisted it needs nuclear weapons to defend itself against a US invasion, and its past references to denuclearisation of the “Korean peninsula” have been code for the removal of US troops from the South and the end of its nuclear umbrella over its security ally — prospects unthinkable in Washington.
The North is demanding still unspecified security guarantees to discuss its arsenal, while Washington is pressing it to give up its weapons in a complete, verifiable and irreversible way.
Affirming a commitment to “denuclearisation of the Korean Peninsula”was “not new”, said MIT political science professor Vipin Narang, “historic summit notwithstanding”.
But he added: “Reaffirming it is better than not reaffirming it.”
Paul Haenle of the Carnegie-Tsinghua Center in Beijing said it was “really just the first step in broader diplomatic efforts”.
“Similar to a game of chess, this move opens up a series of possible developments but in many ways, the hard work really begins now.”
Tree planting
Before signing the declaration, Moon and Kim held a symbolic tree planting ceremony near the demarcation line.
The soil came from Mount Paektu, on the North’s border with China, and Mount Halla, on the South’s southern island of Jeju.
It was a far cry from the last time the South Korean leader was on duty for a tree-related event in the DMZ, in 1976, when he had a supporting role in a monumental US and South Korean show of force after Northern soldiers killed two US officers trying to prune a poplar.
After the planting, Kim and Moon spoke alone for more than half an hour in an open-air tete-a-tete, the younger North Korean leader nodding and listening attentively to the former special forces soldier — who has long advocated dialogue. — AFP

Duterte to meet with leaders from Singapore, Indonesia, Vietnam during ASEAN summit

President Rodrigo R. Duterte is set to have bilateral meetings with leaders of Singapore, Indonesia, and Vietnam on the sidelines of the 32nd Association of Southeast Asian Nations (ASEAN) Summit in Singapore.
Singapore, the chair of the ASEAN for 2018, is hosting the 32nd ASEAN Summit and related meetings at the Shangri-La Hotel from April 25 to 28.
The Presidential News Desk (PND) said Mr. Duterte arrived in Singapore on Thursday night, April 26, and he was “welcomed by Philippine Ambassador to Singapore Joseph Del Mar Yap and Sam Tan Chin Siong, Minister of State in the Prime Minister’s Office.”
Department of Foreign Affairs (DFA) Secretary Alan Peter S. Cayetano, the PND told reporters in an interview in Singapore that Mr. Duterte’s meetings “will be with leaders of Singapore, Indonesia and Vietnam.”
On Saturday, according to the PND, Mr. Duterte is scheduled to have a bilateral meeting with Singaporean Prime Minister Lee Hsien Loong, and he is also expected to meet with the members of the Filipino workers (OFWs) there before returning to the Philippines.
On its Web site, the office of Singapore’s Prime Minister said: “The 32nd ASEAN Summit is the first gathering of the ASEAN Leaders hosted by Singapore this year.”
“The Leaders will discuss ASEAN’s priorities, as well as the challenges and opportunities that it faces, in line with the focus on strengthening ASEAN’s resilience and innovation this year. The Leaders will also exchange views on regional and international developments,” the Prime Minister’s office also said. — Arjay L. Balinbin

Bloomberry unit wins bid for 16-hectare land in Entertainment City

The Philippine Amusement and Gaming Corp. (PAGCOR) has awarded 16 hectares of land in Entertainment City to a unit of Bloomberry Resorts Corp. for P37.3 billion, the listed firm said on Friday.
In a disclosure to the stock exchange, Bloomberry said its wholly-owned subsidiary Sureste Properties, Inc. (SPI) was the winning bidder for the property, where Solaire Resort and Casino is set to expand. SPI was the only bidder for the property after two failed biddings. — Arra B. Francia

Cemex earnings drop in first quarter

Earnings of Cemex Holdings Philippines, Inc. (CHP) dropped by 71% in the first quarter of 2018, as higher volumes for the period failed to offset the increase in fuel and power costs. — Arra B. Francia

Puregold divests from Lawson brand

Puregold Price Club, Inc. has divested from the Lawson chain of convenience stores, after accepting its Japanese partner’s offer to buyout its 70% stake in the venture.
In a disclosure to the stock exchange on Friday, Puregold said it has signed a share purchase agreement with Lawson, Inc to sell its 4.9 million shares in PG Lawson, Inc. — Arra B. Francia

Bulacan airport gets NEDA Board OK

THE NATIONAL Economic and Development Authority (NEDA) Board chaired by President Rodrigo R. Duterte gave the go signal for eight new infrastructure projects, including a P753.63-billion international airport project proposed by San Miguel Corp. (SMC).
Finance Secretary Carlos G. Dominguez III said in a mobile phone message to reporters on Wednesday evening that the NEDA Board approved SMC’s unsolicited proposal to build a new international airport in Bulacan, although “confirmation is subject to final review of the concession agreement.”
SMC’s proposed airport will be built on a 2,500-hectare property with up to six runways, and to be configured to handle about 100 million passengers a year.
As an unsolicited proposal, SMC’s project will have to undergo a Swiss challenge, which requires an invitation for other companies to make competing offers, while giving the original proponent the right to match them.
The NEDA Board also approved the P50-billion 71.13-kilometer railway project that will connect Subic Bay Freeport Zone to Clark Freeport Zone, and the P12.55 billion operations and maintenance contract for the Clark International Airport expansion project. The Subic-Clark railway is funded by Chinese official development assistance (ODA).
Also given the green light were the P39.22-billion Ambal-Simuay River and Rio Grande de Mindanao River flood control projects; the P27.369-billion project involving the construction of 10 priority bridges crossing the Pasig-Marikina river and Manggahan floodway; and the P11.37-billion Bridge Construction Acceleration Project for Socio-Economic Development, which includes five four-lane bridges and 25 two-lane truss bridges in nine regions.
These big-ticket infrastructure projects are part of the government’s P8.4-trillion “Build, Build, Build” program. Under the six-year plan, the Philippines aims to lift infrastructure development spending from 5.4% of GDP in 2017 to over 7% in 2022.
The NEDA Board also gave the go signal for the P1.02-billion Davao Food Complex project, which involves the development of a 20-hectare government property in Toril, Davao City into an agri-industrial complex; and the P4.78-billion Rural Agro-Enterprise Partnership for Inclusive Development and Growth (RAPID Growth) project aimed at supporting 78,000 farming households.
Aside from the eight new projects, the NEDA Board also gave the go-ahead for adjustments in projects approved in earlier meetings, such as the change in scope and cost and loan validity extension of the Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low-Lying Areas of Pampanga Bay Project worth P6.151 billion.
The NEDA Board also confirmed the restructuring for the P7.24 billion Integrated Natural Resources and Environment Management Project; the change in scope and cost for the Integrated Marine Environment Monitoring System Phase 2 Project now worth P1.68 billion; and the Metropolitan Waterworks and Sewerage System’s proposed increase in cost of the New Centennial Water Source-Kaliwa Dam Project worth P14.321 billion.
The following projects were given provisional approval: Land Bank of the Philippines’ P1.27 billion Conflict-Sensitive Resource and Asset Management Program – Financial Cooperation Project, the Department of Interior and Local Government’s Safe Philippines Project Phase 1 worth P20.3 billion, and the Department of Public Works and Highways’ (DPWH) Improving Growth Corridors in Mindanao Road Sector Project (Tawi-Tawi Bridges) worth P25.26 billion.
The NEDA Board also approved the change in financing from local funding to ODA of the Arterial Bypass Project Phase 3; the National Irrigation Administration’s proposed change in design and increase in cost of the P4.37 billion Chico River Pump Irrigation Project and its request for 46-month extension of loan validity and project completion schedule for the P11.21-billion Jalaur River Multi-Purpose Project, Stage 2.
The DPWH’s request for a 24-month loan validity extension, revision of construction period and schedule, and change in scope of the P1.03-billion Samar Pacific Coastal Road Project were likewise given the go-signal, as well as the Department of Transportation’s request for a supplemental loan for the New Bohol Airport Construction and Sustainable Environment Protection Project.
“We are pleased to see more infrastructure projects in the pipeline. As we roll them out, government shall keep working towards developing the country’s infrastructure to ensure easing of congestion in Metro Manila and spreading growth to the regions,” Socioeconomic Planning Secretary Ernesto M. Pernia was quoted as saying in a separate statement yesterday. — E.J.C. Tubayan

BSP eases SBL rules for project contractors

By Melissa Luz T. Lopez
Senior Reporter

THE CENTRAL BANK has eased lending ceilings imposed on banks in order to accommodate financing for big-ticket infrastructure projects.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said it will allow firms implementing major infrastructure projects to have a separate single borrower’s limit (SBL) as they secure funding from banks and quasi-banks.
The SBL is intended to limit the credit exposure to a single client to a maximum of 25% of a bank’s net worth. This is to minimize risks for the bank in the case of default, as relying too heavily on one borrower could damage the bank’s performance and bottom line.
The ceiling — which has been in place since 2004 — includes loans, as well as securities underwritten by universal banks and investment houses unsold after 90 days.
The central bank previously provided a separate 25% credit limit for public-private partnership (PPP) projects from 2010 to 2016. The PPP was the preferred mode of the former Aquino administration in pushing infrastructure development.
The new rules will soon allow project contractors — which the BSP called special purpose entities (SPEs) — to have a separate 25% exposure cap from lenders. This effectively gives them a bigger loan line to tap, as it would be treated separately from credit secured by their parent firms.
The central bank recognized that SPEs may be treated as independent units despite being owned by conglomerates, saying that these firms are “ring-fenced” by appropriate legal structures and operational controls that set their assets and cash flows apart from shareholders and related parties.
SPEs are usually composed of several conglomerates forming a consortium as they bag big-ticket construction contracts from the government.
Among the popular consortiums include the Megawide Construction Corp. and GMR Infrastructure Ltd. which is building a new terminal for the Clark International Airport, as well as the “super-consortium” proposing to rehabilitate the Ninoy Aquino International Airport which include Ayala Corp., Aboitiz Equity Ventures, Inc., Alliance Global Group, Inc., Asia Emerging Dragon, Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp.
The central bank said the move is “in support of the government’s Build, Build, Build initiative,” referring to the plan of the Duterte administration to spend as much as P8 trillion from 2016 to 2022 on high-impact infrastructure projects nationwide.
The Duterte administration veered away from the PPP model in favor of a “hybrid” mode where the government takes on the construction. Several projects in the pipeline — which include railways, airports, and toll roads — are eyed to be transferred to the private sector for operations and maintenance, to improve efficiency.
Still, banks are expected to maintain sound practices despite the relaxed rules.
“Lending to such dedicated SPEs shall be subject to certain conditions to ensure effective risk monitoring and management. It is also required that purposes of project finance loans be in line with the government’s priority programs and projects,” the central bank added, pointing out that loan applications need to be prudently assessed by checking an SPE’s assets, revenues and project documents.
The central bank also reminded banks to be mindful of their project finance exposures and check the concentration of their loan portfolios in order to curb “excessive” credit risk-taking.
Sought for comment, Budget Secretary Benjamin E. Diokno said the BSP’s new rules will have a “positive” impact on the state’s infrastructure push: “The facility will be especially useful for construction firms who will bid for construction of projects and those who will bid for the operations and maintenance of an existing or new projects.”
“I know that the 25% rule has been a binding constraint for private construction,” Mr. Diokno said via text.
Economic managers said aggressive public spending will be supported by a mix of government debt, foreign grants, and additional revenues expected from up to five packages of the comprehensive tax reform program.
The massive infrastructure spending agenda is seen to propel economic growth to average 7-8% by 2022, while plugging connectivity and logistics woes in order to improve the ease of doing business in the Philippines.

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