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Businesses in big economies bullish on the road ahead

HELSINKI — Businesses are heading into 2018 in a pretty optimistic mood, surveys will more than likely show in the coming week, pointing to a potential boost for already solid growth in the world’s biggest economies.

Preliminary readings of plans being made by purchasing managers — the executives who buy what their companies need — have already painted a bullish picture for the euro zone and especially for its two biggest economies, Germany and France.

IHS Markit’s flash Purchase Managers’ Index (PMI) for euro zone manufacturers climbed to 60.0 this month, well ahead of 58.3 in Reuters poll, marking the second-highest reading since the index was first collected in 1997. Anything above 50 indicates expansion.

November PMI’s for many other major economies are due this Friday.

“The mood in business is good at the moment… Industrial output is performing well,” said Hanna Freystatter, head of the international and monetary economy division at Bank of Finland.

“Basically all major economies are pointing in good direction and exports are being supported by the broad-based global recovery.”

PMI is seen as a good indicator of economic conditions and it is even preferred by some analysts to gross domestic product (GDP), which might be affected by poor seasonal adjustment and is prone to revisions.

In the United States — which is ahead of Europe in the growth cycle — the Institute for Supply Management’s measure of factory activity is expected to come in at 58.5, slightly down from last month’s 58.7.

But in September, the index touched its highest level since May 2004.

While hurricanes that hit Texas and Florida in the past months disrupted business, US manufacturing is still seen being supported by a booming global economy as well as weaker US dollar.

In China, the Caixin/Markit Manufacturing PMI stood flat at 51.0 last month, reflecting slowing GDP growth and indicating further modest improvement ahead. A Chinese slowdown is one of the major risks to continued global growth, so a major change in this report could cause some concerns.

Some analysts have noted that the government’s production curbs to reduce pollution have added to companies’ cost pressures and may hamper industrial activity in the months ahead.

But China’s economy has surprised markets so far this year with a growth of nearly 6.9% on the back of a renaissance in long-ailing “smokestack” industries such as steel.

“This growth is expected to slow down gradually to around five percent pace, which is only desirable as the growth at the moment is debt-driven,” Ms. Freystatter from Bank of Finland said.

In Japan, Markit/Nikkei Manufacturing PMI has held up above the 50 threshold for 14 consecutive months, while British factories also reported good activity through the autumn.

Although business surveys show more inflationary pressure in the euro zone, that has not translated into prices, which has supported the European Central Bank’s (ECB)case for only gradual removal of stimulus.

The ECB opted last month to halve its asset purchases while extending them by nine months, arguing that inflation still needed support to rise towards its target of almost two percent.

It also kept the bond buys open-ended, although policy makers were far from unanimous on that decision.

“We’re really in a situation where everyone is looking at inflation and thinking ‘any day now’,” said ING economist Bert Colijn.

Flash inflation in November, due on Thursday, is expected to have speeded up to 1.6% from 1.4% in the previous month, while prices — excluding energy and food — are seen increasing 1.1%, a similar pace as in October.

“Taking into account the strong growth and decreasing unemployment, we should of course start to see gradual price pressure. But there are many uncertainties related to this,” Bank of Finland’s Freystatter said.

Some policy makers have argued that globalization and technological changes have made value chains more international, making low inflation a global phenomenon and limiting central banks’ ability to control prices in their own jurisdiction.

But some reckon expected wage growth in Germany is one factor that should boost price pressures in the bloc next year.

“Inflation will likely fall at the start of the year… but after that we will see a pickup, and I think that the market doesn’t price that as yet,” said Morgan Stanley economist Daniele Antonucci. — Reuters

T-bills likely to fetch higher rates

TREASURY BILLS (T-bills) on auction today are expected to fetch higher yields as the market continues to focus on the ongoing retail Treasury bonds (RTB) offering.

The Bureau of the Treasury is looking to raise P20 billion from the T-bills today, broken down into an P8-billion offering for three-month securities and P6 billion each for six-month and one-year debt papers.

Traders interviewed on Friday said they are expecting the debt papers to fetch higher yields, expecting an increase of 5-10 basis points (bps), as the market is still looking at the RTB offering, which started last week.

“[The yields] would be five to ten bps higher due to the recently issued five-year RTB so [it pushed] the yields higher since [it saw huge demand],” a trader said in a phone interview.

In the last T-bills auction on Nov. 16, the Treasury made a partial award of its offering, issuing just P18.5 billion out of the planned P20-billion borrowing even though it was met by P29.9-billion worth of demand as rates on the papers rose across the board, with the market seeing higher possibility of a US Federal Reserve interest rate hike next month.

Broken down, the Treasury fully awarded the 89-day papers after total bids reached P12.92 billion, higher than the P8 billion offered. The papers fetched an average rate of 2.148%, up by 19.1 bps from the 1.957% booked during the Oct. 23 auction.

The government also raised P6 billion worth of 180-day bills as planned at an average rate of 2.563%, 10.6 bps higher than the previous auction’s 2.457%. The debt papers were met with P10.87 billion worth of demand.

Lastly, the 362-day debt papers were partially awarded, with the government set to issue just P4.5 billion worth of the tenor against the P6.15 billion the banks sought to buy and the P6 billion up for grabs. The T-bills carried an average yield of 2.952%, higher by 9.9 bps than the 2.853% rate at the last auction.

At the secondary market on Friday, the three-month, six-month and one-year papers fetched yields of 3.0189%, 2.9648% and 3.4136%, respectively.

Meanwhile, the government’s rate-setting RTB auction last Nov. 20 was met with bids totalling P191.8 billion, prompting the government to expand its award to P130 billion from its planned issuance of just P30 billion.

The offer period for the retail bonds runs until Nov. 29, while the issue date will be on Dec. 4.

Another trader noted that the 91-day debt papers are likely to be twice oversubscribed at today’s auction.

Meanwhile, traders said that they will not be surprised if the Treasury rejects some bids today “as they have already met their [fund-raising] goal” following the RTB issuance.

“If [they can see a huge] volume, they have the option to reject [some bids],” a trader said.

The government borrows from both local and external sources to tap market liquidity in order to finance its budget deficit capped at 3% of gross domestic product, or about P482.1 billion.

This year, the government has set a P727.64-billion borrowing plan, 80% of which or P582.11 billion will be sourced from local lenders through T-bills and Treasury bonds. The P145.53-billion balance, meanwhile, will be borrowed from external creditors. — KANV

Century forays into leisure with art park in Batangas

Century Properties Group, Inc. (CPG) is expanding into leisure and tourism with the launch of a 54-hectare development in Batangas expected to bring in P19 billion in sales revenues.

In a statement over the weekend, CPG said its subsidiary Century Limitless Corporation will develop Batulao Artscapes, described as the “world’s first liveable art park.”

Batulao Artscapes will feature houses designed by local and international architects, and marks CPG’s first horizontal development in the leisure and tourism segment. This is also part of the company’s 142-hectare lot in Nasugbu, Batangas, which is expected to have a sales value of more than P50 billion once fully developed.

The estate will be divided into four villages, each featuring the design aesthetics of different architects. CPG has tapped architect Eduardo Calma for Cluster Village, and Budji Layug and Royal Pineda for Commune Village. Designer Kenneth Cobonpue’s creations will be the main attraction for Commune Village.

Meanwhile, the fourth section will be called Curated Village 1, which will include 12 houses each with a different design from various architectural firms, such as David Salle + AA Studio, Marcel Wonders, Marmol Radziner & Kravitz Design, and Philip Johnson Alan Ritchie Architects, among others. 

“Our vision is to create a design-driven community that celebrates art and adventure in an expansive natural landscape,” CPG Head of Investor Relations Kristina Lowella I. Garcia said in a statement.

Houses inside the estate will be sold from P4 million for a 56-square meter property to P17.4 million for houses inside Curated Village 1.

As part of the project, CPG will develop a man-made beach, a clubhouse, and a lake with a wedding chapel. The company will also be constructing a sports park and art park with museums. 

For Batulao Artscapes, the listed property developer targeting families, weekend adventure seekers, and retirees. CPG will provide special assistance for foreign nationals and former Filipino citizens to acquire a Special Resident Retiree’s Visa. 

CPG is banking on the location of the project, situated 1.5 to two hours from Makati through the Nasugbu-Kaybiang Tunnel, Star Tollway to Tanauan Exit, South Luzon Expressway, or Cavite Expressway, to draw buyers. 

The company also cited the construction of the 49-kilometer Cavite-Tagaytay-Batangas Expressway by the first quarter of 2019 to cut travel time to less than an hour.

CPG has been diversifying its product mix by venturing into retail, office, and leisure development, from previously focusing on high-end condominium projects with international brand partners. This strategy is expected to transform the company into a multi-platform real estate firm by 2020.

“The launch of this spectacular development also affirms CPG’s commitment to pursuing its strategic business plan of diversification into allied real estate segments including leisure and tourism,” Ms. Garcia said.

CPG’s attributable profit declined by 17% in the first nine months of 2017 to P538 million, following a 15% slump in revenues to P3.92 billion. — Arra B. Francia

MPIC, Pampanga in talks for solid waste facility

By Arra B. Francia, Reporter

METRO PACIFIC Investments Corp. (MPIC) is currently in talks with provincial government officials in Pampanga for the construction of a solid waste management facility.

“We will be meeting with officials of Pampanga for a waste-to-energy project. I know they are interested to put up a provincial facility,” MPIC President and Chief Executive Offficer Jose Ma. K. Lim told reporters in a recent briefing.

Mr. Lim, however, declined to give further details on the facility as they are still in the early stages of discussion.

Earlier this year, the infrastructure conglomerate submitted an unsolicited proposal to the Quezon City government for a solid waste management facility. Under the plan, MPIC will develop a P16-billion Integrated Solid Waste Management Facility that can convert up to 3,000 tons of municipal solid waste into 42 megawatts of baseload renewable energy. 

The project will be carried out by MPIC along with waste-to-energy specialist Covanta Energy, LLC and investor group Macquarie Group Ltd.

“Together we packaged the project, submitted it to the government, and we are now in the final stages of negotiation,” Mr. Lim said.

The project will have two components — a mechanical biological treatment that will segregate compostable material for separate collection, and a energy-to-waste component that will treat non-recyclable waste.

Mr. Lim said it will take around 18 months to construct the first component, while the latter will take 24 months.

“The revenue source will be 50% from the sale of electricity generated and about 50% from the tipping fees. The tipping fees I refer to are the fees paid by city government to the landfill when they land their waste,” Mr. Lim said. 

Once approved, the Quezon City government will own 5% of the project with an equity component, while the consortium will own 95% to be split  on a 60-40 basis between MPIC and the two foreign partners.

However, Mr. Lim noted said the local government unit has asked for a bigger share, around 30%, of the project.

“The only sticky point at this stage is the (QC) government wants a bigger share in the ownership because they want their tipping fee to be fully self-sustaining. In other words, they want the returns from the project to be sufficient,” he said. 

The MPIC executive said granting the government 30% ownership would not be feasible, as they are already sharing the revenues of the project with its foreign partners.

As a counter-proposal, Mr. Lim said they have asked to expand the capacity of the facility instead, noting that the land area is enough for them to build a plant with a capacity of 10,000 tons.

“We’d rather keep them at 5%, but expand the capacity… And they in turn will earn a hosting fee above the tipping fee. For hosting the waste in the entire Metro Manila, their tipping fee is fully subsidized by the operations,” Mr. Lim explained. 

MPIC hopes to iron out these details before the year ends, so the proposal can be subjected to a Swiss challenge by the start of 2018.

The spending for the solid-waste facility is part of MPIC’s P653-billion capital expenditure program from 2018 to 2022. The conglomerate looks to bag high-quality infrastructure programs from the government during this period, in a bid to strengthen its toll roads business, alongside power, water, hospital, and other units. 

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

Yields on gov’t debt climb

By Christine J. S. Castañeda,
Researcher

YIELDS on government securities (GS) traded in the secondary market went up last week amid expectations of another US rate hike this year.

On average, GS yields — which move opposite to prices — increased by 17.92 basis points (bps), data from the Philippine Dealing & Exchange Corp. as of Nov. 24 showed.

“Yields [last] week moved sideways with a bit of upward movement as FOMC (Federal Open Market Committee) minutes were released and were just what the market had expected,” Ruben Carlo O. Asuncion, UnionBank of the Philippines (UnionBank) chief economist, said.

“US Fed[eral Reserve] officials still indicated a rate hike by this December and most members supported continuation of gradual hikes, with some still showing concerns over tepid inflation. Total trading volume in the market was still minimal,” he added.

Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines (Landbank) shared the same view saying: “GS yields rose [last] week primarily because of US rate hike concerns.”

“The increase in yields, however, was capped by inflation issues noted in the FOMC minutes,” he added.

According to the minutes of the US central bank’s Oct.31-Nov.1 policy meeting, many Federal Reserve policy makers view that interest rates will have to be raised in the “near term.”

Also according to a Reuters report, policy makers see jobless rate to be too low for the inflation to maintain its weak level.

At the secondary market last Friday, in the short end of the curve, the 91-, and 182-day Treasury bills (T-bill) gained 79.36 bps and 35.63 bps to yield 3.0189% and 2.9648%. The yield on the 364-day T-bill also inched up by 41.86 bps to 3.4136%.

In the belly, the yield on the two-year Treasury bond (T-bond) went down by 24.57 bps to 4.3382%. Meanwhile, the rates of the three-, four-, five-, seven-year bonds increased by 48.71 bps (4.5589%), 8.04 bps (4.8250%), 16.46 bps (5.0825%) and 4.28 bps (5.3232%).

In the long end, the 10-year T-bond saw its yield increase by 5.47 bps to 5.5404%. The yields on the 20-year bond lost 36 bps to 5.2811%.

For this week, UnionBank’s Mr. Asuncion said: “[I]t is expected that there would still be muted activity in the GS market while players await more leads and also as the yearend nears.”

Landbank’s Mr. Dumalagan said: “GS yields are expected to increase [this] week, driven by likely strong US data on consumer confidence, 3Q GDP (gross domestic product) growth and core PCE (personal consumption expenditure) inflation.”

Peso expected to weaken

THE PESO is expected to weaken against the dollar this week, with Federal Reserve (Fed) officials likely to deliver hawkish speeches amid mixed perceptions on upcoming US economic data.

On Friday, the local currency moved sideways, losing four centavos to close at P50.72 versus the dollar.

This was still better than its P50.95-per-dollar close last Nov. 17.

The first three days of last week saw the peso rally as uncertainty over the US tax reform package. However, the dollar started to correct on Thursday amid the dovish tone of the Federal Open Market Committee (FOMC) minutes.

“The dollar might continue to appreciate this week due to likely hawkish speeches from various US Federal Reserve officials,” Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said in an e-mail.

He said the speeches “might continue to affirm their views of another US interest hike” in the yearend despite uncertainties over the “subdued” US inflation.

Concerns on persistently low inflation were addressed in the FOMC minutes, as several participants “expressed concern that the persistently weak inflation data could lead to a decline in longer-term inflation expectations or may have done so already.”

On Tuesday, incoming Fed chair Jerome H. Powell will deliver a speech, which the market will watch for clues on his future policy direction.

“The speech of Fed Powell on Tuesday might heavily influence markets since he is expected to succeed [incumbent] Fed [chair Janet L.] Yellen as the head of the US central bank,” he noted.

Other Fed officials expected to deliver hawkish speeches this week are Ms. Yellen, John B. Williams, Robert S. Kaplan, among others.

Meanwhile, a trader said that US economic data to be released this week might book mixed results, which could temper the effect of the speeches of several Fed officials.

“We’re looking at the US GDP (gross domestic product) growth [in the third quarter] — we can expect a pickup from last quarter,” a trader said.

Mr. Dumalagan, meanwhile, cited that US data on personal spending and personal income might “show softer readings.”

Traders expect this week that the peso will move between P50.60 and P50.90 versus the dollar, while Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, gave a wider reading of P50.50 and P51 as he expects thinner trading volume as the yearend nears. — K.A.N. Vidal

NGCP awaits agreement with DICT

PRIVATELY OWNED National Grid Corporation of the Philippines (NGCP) said it had set aside its fiber optic network for the government’s national broadband program as it awaits a formal agreement with the Department of Information and Communications Technology (DICT).

“We’re working with DICT. The capacity available for third-party use will be offered to government first for its project. And we’re eager to start working with them,” NGCP spokesperson Cynthia P. Alabanza told reporters. “We’re looking forward to the agreement so that the project can start.”

This comes as the DICT along with the Bases Conversion and Development Authority signed earlier this month a landing party agreement with Facebook, called the Luzon bypass infrastructure, to improve the country’s broadband internet speed and accessibility.

Ms. Alabanza said NGCP could be a part of the government’s broadband plan as it has an existing facility that could be used for the purpose.

But so far, what had been agreed upon by NGCP and DICT, under the department’s previous leadership, is an agreement to explore a partnership. There has been no assessment of NGCP facilities, and no due diligence conducted.

The government also has yet to determine whether the grid operator’s fiber optic network is compatible with the government’s broadband plan.

Ms. Alabanza said NGCP was unsure whether DICT would piggyback on its broadband and branch out from there.

“We can be a part of it. Connectivity is an important part of not just transmission but daily life,” she said.

In June, NGCP said it had been chosen as a partner of the DICT, under then Secretary Rodolfo A. Salalima, for the government’s broadband program.

NGCP had expressed optimism in the project, which it described as bringing the country’s average internet speed closer to those of “first-world countries.”

Privately owned NGCP said its fiber optic cables, which cover 6,154 kilometers or 160,779 fiber kilometers, will be the primary network of the program that aims to bring Wi-Fi connection all over the country.

DoF sees fuel marking system up and running by mid-2018

THE Department of Finance (DoF) aims to have the fuel marking system, a deterrent to smuggling, set up by the first half next year, as the procurement process gears up for launch.

The DoF is close to completing of the terms of reference (TOR) for procuring providers of the marking system.

“The TOR is almost done, the final version will be completed by the end of this month. It will be published in the newspapers,”  Finance Undersecretary Antonette C. Tionko told reporters last week at the DoF headquarters.

“Procurement is expected to start within the year. By December, the procurement process and finished by the first quarter, and we want to implement already by the second half,” she added.

Finance Secretary Carlos G. Dominguez III meanwhile said that the fuel marking system will be implemented alongside a series of random inspections.

“We will also check the distribution randomly,” he said, adding that the Bureau of Internal Revenue personnel will be trained on auditing procedures.

“Basically it’s an outsourcing contract, a service. We will not run it ourselves,” Mr. Dominguez said.

He said there are “many” interested parties for the fuel marking contract.

Ms. Tionko said some concerns of stakeholders are still being addressed in the TOR.

“They always have concerns, anything you change is their concern, at what point do we put the marker…It’s a bit technical, but the thing is each company has its own system. Those are the things we need to work on, it’s nothing fundamental but technical,” she said.

The DoF has allotted P2 billion for the procurement of service providers, and expects to generate some P25 billion in additional annual revenue.

The fuel marking scheme is part of the Tax Reform for Acceleration and Inclusion Act — which is currently undergoing plenary debate in the Senate.

The measure involves the use of low concentrations of markers or dyes to be blended with the fuel, to mark the stages undergone by a particular batch of product, which will determine whether shipments have gone through the legal supply chain. Absence of the marker will be taken as prima facie evidence that the petroleum products are imported or withdrawn without the payment of excise tax.

The dyes are expected to cost some P.09 centavos per liter, to be passed on to consumers.

The DoF estimated revenue losses from smuggled or misdeclared fuel of P26.87 billion in 2016.

In a 2015 Government Brief by the Asian Development Bank, which discussed fuel marking, the bank estimated $750 million, or P37.5 billion worth of foregone revenue due to smuggled oil in the Philippines for 2014.

The Institute for Development and Econometric Analysis  on the other hand estimated that “smuggled gasoline accounts for an average of 23% of gasoline consumption from 2000 to 2006,” while “smuggled diesel accounts for an average of 6%.” 

In 2016, the government collected P52.56 billion from petroleum products.

The earlier implementation of the fuel marking system was mandated by Finance department Order 23-07 in 2007. The Department of Energy however in 2013 issued a memorandum circular stating that starting 2014, oil companies shall no longer be required to use a chemical marker to their fuel products. — Elijah Joseph C. Tubayan

Game of chess only deepens, says Game 1 winner Ateneo

By Michael Angelo S. Murillo
Senior Reporter

SUCCESSFULLY claimed Game One of their best-of-three University Athletic Association of the Philippines (UAAP) men’s basketball finals series last Saturday, the Ateneo Blue Eagles, while happy to have taken the upper hand, are not about to let their guard down, knowing fully that rivals and defending champions De La Salle Green Archers can only be expected to make the necessary adjustments come the next game.

Boosted by what they consider as “total team effort” in the series opener, the Katipunan-based dribblers were able to take control much of the game and withstand the tough fight the Archers put up especially down the stretch to hack out a 76-70 victory that put them one win away from winning it all.

Thirdy Ravena led a balanced attack by Ateneo, finishing with 12 points, six rebounds and four assists.

Mike Nieto came off the bench to provide much-needed firepower, scoring all of his 11 points in the second half, while twin brother Matt defied a cut left eye brow to add 11 as well.

Anton Asistio finished with 10 points with Vince Tolentino and Aaron Black adding nine and seven points, respectively.

Defensively, the Eagles, too, were on top of things, limiting in particular league most valuable player Ben Mbala to just eight points and the whole La Salle team to just 70.

But while they take pride and delight to what they were able to do in the first game, the Eagles are expecting the Archers to come back more motivated than they already are in Game Two on Wednesday and armed with added template to try to level things, necessitating for Ateneo to come out more prepared as well.

“This is where the chess game comes in. La Salle will make their adjustments so we have to be able to read them and try to make our own adjustments to what they are trying to do,” said Sandy Arespacochaga, Ateneo assistant coach, during the postgame press conference after Game One.

“La Salle is the defending champion and for sure they will come out next game more motivated. We have to have the mentality that we have to step up our game and not be content with this win,” he added.

As for their effort to limit Mbala in the finals paying off massively in the series opener, Mr. Arespacochaga said credit should be given to their players, considering they had a short turnaround between the semifinals and the finals.

“We couldn’t play Ben Mbala straight up one-on-one so we needed to come up with a scheme defensively that had other players helping to slow down Ben. Credit to our players because we came from our last game (semifinal) last Wednesday and we couldn’t do anything live. It was mostly mental and watching videos. The players implemented our game plan. And while there were mistakes, we are nonetheless happy with the way we executed,” Mr. Arespacochaga said.

He went on to say that they hope to stay consistent on the defensive end and rise over the physicality of the affair for them to have a better shot at closing out the series in Game Two at the Smart Araneta Coliseum.

Senate eyes approval of budget, TRAIN this week

By Arjay L. Balinbin

THE PROPOSED 2018 national budget as tackled by the Senate is back on track for second and final reading approval on Tuesday, Nov. 28, said the office of Senator Loren B. Legarda, chairperson of the Senate finance committee.

“Tuesday, 10:00 a.m. pa ang (is the schedule for) budget amendment. Expected din na ma-approve na (It is also expected that the 2018 budget will be approved) on 2nd and 3rd reading sa (on) Tuesday,” a communications officer said on Ms. Legarda’s behalf.

The proposed budget is over P3.7 trillion, 12.4% higher than this year’s budget of P3.35 trillion.

Senate Minority Leader Franklin M. Drilon is expected to formally present his proposal on Tuesday realigning the P900 million allotted for the PNP’s anti-illegal drug campaign, including the DILG’s P500 million for its anti illegal drugs, crime and corruption program or the Mamamayang Ayaw Sa Anomalya,Mamamayang Ayaw Sa Iligal na Droga (MASA MASID) program.

Meanwhile, the period of amendments on package 1 of the Tax Reform for Acceleration and Inclusion bill (TRAIN) will continue on Monday, Nov. 27.

Last week, Senate Majority Leader Vicente C. Sotto III said in an interview the next station for TRAIN is its “automatic” approval on second reading.

“Kung matatapos yung (If we finish the) period of amendments, the next step is to approve it (on) second reading automatically,” Mr. Sotto said.

Mr. Sotto also said “[i]t can be approved on third reading (this week) because it is a certified urgent measure.”

Among the amendments the Senate is expected to take up in today’s session are the proposed excise taxes on cosmetic surgeries, fuel products, sugar-sweetened beverages, and Senator Paolo Benigno A. Aquino IV’s proposed amendment ensuring the implementation of the unconditional cash transfer program starting January next year.

Mr. Drilon may also present today his proposed amendment which seeks to impose a “20% luxury or vanity tax on procedures which serve no purpose except for aesthetic appeal.”

For amendments to excise tax on sugar sweetened beverages, Mr. Angara said in a radio interview that “perhaps there will be a debate as to how much the tax should be.”

Meanwhile, for fuel, Mr. Angara said: “Sa amin, maintain pa rin yung sked na di tataas ng P1.75 (For us, we will maintain the fuel excise tax schedule which should not go beyond P1.75 in the first year).”

“Yun ang palagay naming kaya ng tao at mga negosyo (This tax is what we think people and businesses can manage),” he added.

Gilas out to sustain good qualifier start at home

By Michael Angelo S. Murillo
Senior Reporter

WON its opener in the Asian Qualifiers for the FIBA World Cup 2019 last Friday in Japan, Gilas Pilipinas looks to sustain its winning form when it plays today against Chinese Taipei in Group B action set at the Smart Araneta Coliseum.

While it struggled to establish fluidity in its game on both ends of the court all throughout the match, the Philippine national team did just enough to stave off the Akasuki Five, 77-71, in the latter’s home turf and book its first win in the qualifiers.

Jayson William led Gilas to the tough win, finishing with 20 points, seven rebounds and six assists.

Naturlized player Andray Blatche had it rough on offense, shooting just 36% on the floor, finishing with 13 points to go along with 12 rebounds and five assists.

Matthew Wright had 12 points while veteran Gabe Norwood had 10.

Now playing at home, Gilas hopes to perform better in front of the hometown fans and notch a win over Chinese Taipei and establish a good cushion in the qualifiers.

In the Asian Qualifiers, the top three teams in the four groupings advance to the next stage of the competition.

Upon arriving in Manila at the weekend, the Chot Reyes-coached nationals went straight to practice to stay in “tournament mode.”

BOUNCE BACK
Out to spoil Gilas’ homecoming is Chinese Taipei, which lost its group opener at home against Australia, 101-66, also last Friday.

Chinese Taipei never really got it going against Australia, which dominated from start to finish.

Naturalized player Quincy Davis III led the team with 17 points with forward Cheng Liu and big man Kuan-Chuan Chen scoring 10 points apiece.

The just-started qualifiers is the first stretch of six home and away games for competing teams during competition windows set by world basketball governing body FIBA in its new competition system.

The next windows are in February and June next year.

Meanwhile, consortia between Argentina and Uruguay and among the Philippines, Japan and Indonesia were short-listed as finalists to host the FIBA World Cup in 2023, the basketball body announced recently.

FIBA said both candidates submitted host nation agreements on the deadline day to confirm their interest in holding the 19th edition of the competition.

“We are pleased to announce Argentina/Uruguay and Indonesia/Japan/Philippines as the final two candidates in the running to host the FIBA Basketball World Cup 2023. In recent years, we have seen the way in which several countries teaming up to stage our biggest tournaments has been successful. This was the case at the last two editions of the FIBA EuroBasket as well as at FIBAAfroBasket 2017 and the FIBA AmeriCup 2017. We are fully confident this formula will also work to great effect for our flagship competition. Furthermore, these are countries with rich basketball traditions and passionate fans,” said Patrick Baumann, FIBA secretary-general and International Olympic Committee member, in a statement shared to global sports media.

The two bidders, FIBA said, will present their candidatures to FIBA’s Central Board Dec. 9 in the following order — Indonesia/Japan/Philippines and Argentina/Uruguay.

The hosts of the competition will be announced on that day following a vote by the Central Board.

DoTr to order new feasibility studies for 4 regional airports

THE Department of Transportation (DoTr) will order new feasibility studies for four regional airport projects, with the studies targeted for completion next year.

The government has said it is open to auctioning off the operations and maintenance (O&M) component for the regional airport projects, after removing the regional airport projects — New Bohol (Panglao), Davao, Iloilo, Laguindingan and Bacolod — from the public-private partnership (PPP) pipeline in favor of funding the construction via government appropriations or overseas development assistance (ODA).

This follows the change in policy of the government of President Rodrigo R. Duterte, which prefers a “hybrid” funding scheme, under which the government funds construction through the national budget or ODA, and then bids out the O&M to the private sector.

“The proponent cannot do a feasibility study… We have to renew the feasibility studies for Davao, Laguindingan, Bacolod, Iloilo,” DoTr Undersecretary Manuel Antonio L. Tamayo told reporters on the sidelines of the Philippines-Sweden Airport Collaboration seminar on Nov. 23. Panglao airport is not included “because Panglao will be turned over next year,” Mr. Tamayo said.

When asked about the timeline, Mr. Tamayo said, “We hope by next year.”

He added that the government is giving priority to Davao International Airport, as well as Laguindingan Airport because of demand.

“The priority is Davao, because of investments in Davao. We’re pushing Laguindingan as well, there’s a lot of traffic,” Mr. Tamayo said.

The PPP Center said in 2014 that it intended to bid out the bundled O&M of the airports under a single PPP project.

However, they were unbundled when the Duterte government stepped in.

The government in 2014 awarded Mactan-Cebu International Airport (MCIA) to a joint venture of Megawide Construction Corp. and India’s GMR Infrastructure as a PPP project. — Patrizia Paola C. Marcelo

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