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Treasury’s Yellen says funding bill allows lending of $21 bln to IMF trust

WASHINGTON – A $1.2 trillion government funding bill passed by Congress will allow the US to lend up to $21 billion to an International Monetary Fund (IMF) trust to help the world’s poorest countries, US Treasury Secretary Janet Yellen said on Saturday.

Yellen said the funding would make the United States the largest supporter of the IMF’s Poverty Reduction and Growth Trust (PRGT), which provides zero-interest rate loans to support low-income countries as they work to stabilize their economies, boost growth and improve debt sustainability.

President Joe Biden signed the bill on Saturday after the Senate passed after midnight, averting a government shutdown. The IMF spending will make good on a promise Biden made over two years ago with other leaders from the Group of 20 large economies to provide $100 billion to support low-income and vulnerable countries recovering from the COVID-19 pandemic and struggling with macroeconomic risks.

The PRGT is the IMF’s main vehicle for providing zero-interest loans to low-income countries to support their economic programs and help leverage additional financing from donors, development institutions, and the private sector.

Since the beginning of the pandemic, the IMF says it has supported more than 50 low-income countries with some $30 billion in interest-free loans via the PRGT, reducing instability in poor countries from Haiti to the Democratic Republic of Congo and Nepal.

The IMF expects demand for PRGT lending to reach nearly $40 billion this year, more than four times the historical average.

“Today’s development marks a key milestone in the United States meeting its commitment to provide support to low-income countries that are still bearing economic scarring from the pandemic, while responding to high debt vulnerabilities, climate risks, and spillovers from Russia’s war against Ukraine,” Ms. Yellen said in a statement first reported by Reuters.

Kevin Gallagher, director of Boston University’s Global Development Policy Center, said the long-delayed US funding came “just in nick of time, given exorbitant interest rates in poorer countries, especially in Africa,” that have hit low-income countries hard, compounding already high debt burdens.

He noted that Congress had refused to approve Treasury’s plans to loan some of the funds to the IMF’s Resilience and Sustainability Trust, set up to provide funding for countries to work on climate change and other challenges.

Eric LeCompte, executive director of Jubilee USA Network, welcomed the US funding for the PRGT, noting the trust had a history of bipartisan support.

“Increasing resources for efficient programs like this can lift people out of poverty in developing countries,” he said.

No comment was immediately available from the IMF.

Ms. Yellen said the funding for the IMF reflected Washington’s ongoing support for the institution and the unique role it plays in the international monetary system through its policy advice, capacity development and lending and focus on good governance, robust economic reforms and necessary adjustment.

“I look forward to continuing our partnership with the IMF to support the needs of low-income countries,” Ms. Yellen said. – Reuters

China coastguard uses water cannons against Philippine ships in South China Sea

BW FILE PHOTO

MANILA/SHANGHAI – China’s coastguard said it had taken measures against Philippine vessels in disputed waters of the South China Sea on Saturday, while the Philippines decried the moves, including the use of water cannons, as “irresponsible and provocative”.

China’s actions led to “significant damage” and injury to personnel on a civilian boat hired to resupply troops, the Philippine task force on the South China Sea said in a statement.

The incident occurred in the Second Thomas Shoal and Spratly Islands waters, according to the Chinese coastguard. The shoal is home to a small number of Filipino troops stationed on a warship that Manila grounded there in 1999 to reinforce its sovereignty claims.

China claims almost the entire South China Sea, including the Second Thomas Shoal, which is within the Philippines’ 200-mile (320-km) exclusive economic zone, and has deployed vessels to patrol the disputed atoll. A 2016 ruling by the Permanent Court of Arbitration found that China’s sweeping claims have no legal basis.

The civilian boat was being escorted by two Philippine navy ships and two Philippine coastguard vessels, according to a statement from the Philippine military.

A Philippine coastguard vessel was “impeded” and “encircled” by a Chinese coastguard vessel and two Chinese maritime militia vessels, the Philippine coastguard said in a separate statement.

 

VESSEL ISOLATED

As a result, the Philippine coastguard vessel was “isolated” from the resupply boat by the “irresponsible and provocative behavior” of the Chinese maritime forces, the agency said.

Washington “stands with its ally the Philippines and condemns the dangerous actions” of China, State Department spokesperson Matthew Miller said in a statement.

“The PRC’s actions are destabilizing to the region and show clear disregard for international law,” Miller said, referring to the People’s Republic of China.

Gan Yu, a spokesperson for China’s coastguard, said the Philippines had broken a promise to remove the grounded vessel and sent two coastguard ships and a supply ship into the Second Thomas Shoal waters, 18 days after the last round of supplies.

China has not said who promised the removal or when that promise was made. The Philippine defense ministry, foreign ministry and military leaders have repeatedly said there was no such promise.

Mr. Gan said the Philippines had on Saturday infringed and provoked trouble, and deliberately undermined the peace and stability of the South China Sea.

The Philippine vessels ignored China’s repeated warnings and route controls and forced their way in, Mr. Gan added. The China coastguard implements regulations in accordance with laws and handles matters in a reasonable, legal, and professional manner, he said.

“If the Philippines continues to act unilaterally, China will continue to take resolute measures to safeguard its territorial sovereignty and maritime rights and interests,” China’s foreign ministry said.

“All consequences caused by this shall be borne by the Philippines.”

But the Philippines will not be deterred “by veiled threats or hostility” from exercising its legal rights over its maritime zones, including the Second Thomas Shoal, its task force said. – Reuters

GForest named 2023 National Winner of Energy Globe Award in PHL

GCash shares win with 16.2 million GForest users

GCash, the Philippines’ leading finance app, through its GForest feature, is the 2023 National Winner of the Energy Globe Award in the Philippines. This recognition serves as a testament to GCash’s commitment to environmental sustainability and its innovative approach to fostering positive change.

The Energy Globe Awards is a recognition given by the Austrian Embassy, through Advantage Austria, to recognize outstanding initiatives that contribute to sustainability and environmental protection. GForest stood out in the ‘Earth’ category for its remarkable efforts in reforesting critical areas and promoting environmental awareness among millions of users.

“Energy Globe is awarded to the world’s best environmental projects and honors innovative solutions to environmental problems. We cannot think of a better fit to receive this award than GForest which over a few years managed to gain support from more than 16.2 million members and virtually planted 3.8 million trees,” said Christina Stieber, Advantage Austria Commercial Counsellor.

The GForest program within the GCash app is a groundbreaking initiative that incentivizes users to engage in tree planting. Users earn green energy points with their digital transactions in-app, which they can use to plant virtual trees. These translate into tangible contributions to reforestation efforts, as GCash collaborates with environmental organizations to plant real trees in designated areas. By integrating gamification and environmental awareness, GForest encourages users to embrace sustainable practices while actively taking part in initiatives to combat deforestation and promote environmental conservation.

“We optimize technology to solve different challenges that Filipinos experience every day—and with over 94 million Filipinos that have tried GCash, we have the reach to maximize tech for good. GForest is one of these breakthroughs—an easy, interactive, and free way to plant a tree, which we created specifically to contribute to rebuilding Philippine forests,” stated Winsley Bangit, Vice President and Head of New Businesses Group, GCash.

Since its inception in 2019, the GForest program has achieved remarkable results, including the planting of over 2.7 million actual trees, covering over 11,600 hectares, with the help of its 16.2 million green heroes.

Sustainability Motivation

With only 6% of the country’s land covered in rainforest, urgent action was needed to combat the effects of logging and resource extraction. Recognizing the importance of preserving and restoring forests, GCash introduced GForest in 2019 as the first-ever sustainability feature by a fintech company in the Philippines.

“Our drive behind the GForest program stems from a commitment to sustainability across three essential pillars: environmental, social, and governance impact. Through empowering users to engage in tree planting initiatives via our GForest feature, we aspire to elevate awareness of environmental conservation, promote financial inclusion, and effect positive change in the daily lives of Filipinos,” said CJ Alegre, Sustainability Head of GCash.

The scope of the GForest program includes planting native trees, collaborating with key partners such as the Ramon Aboitiz Foundation Inc., Friends of HOPE, Inc., World Wildlife Fund for Nature Philippines, and ABS-CBN Foundation; and engaging local communities in reforestation efforts. Through workshops and partnerships, GCash ensured the sustainable management of planting sites and gave economic opportunities to farmers involved in tree planting activities.

 

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P1,000 vouchers and 100% free shipping await at Lazada’s Bonggang Birthday Sale from March 24, 8 p.m., to March 27

Lazada, the pioneer e-commerce platform, is going all out this March and treating everyone to amazing deals for its 12th birthday where shoppers can get up to 70% OFF on a wide selection of high-quality products, P1,000 Lazada vouchers, and 100% free shipping all month long! The excitement doesn’t stop as Lazada continues its pasabog with the Bonggang Birthday Sale from March 24, 8 p.m. to March 27, only on the Lazada App.

The celebration gets grander and more rewarding as Lazada gives all its shoppers a chance to win a share of the P16-million prize pool from the Lazada Birthday Battle. To join, simply log in to your Lazada App, earn points by inviting friends to join your team or by completing daily missions between March 13 to March 23. Win as many battles as you can and use tokens to claim LazRewards. You can also score bigger savings and discounts by collecting and redeeming coins. Just visit the coins page on the app and browse through free gifts and discounted items. Collect as many coins as you can because 1 coin is equal to a P1 discount!

Shop Lazada’s Bonggang Birthday Sale from March 24, 8 p.m. to March 27, and enjoy P1,000 off Lazada Vouchers, 100% Free Shipping, and up to 70% off branded deals!

Stay tuned for more daily bonggang deals and discounts by following Lazada Philippines’ Facebook and Instagram.

 

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UN adopts first global artificial intelligence resolution

FREEPIK

The United Nations General Assembly on Thursday unanimously adopted the first global resolution on artificial intelligence that encourages countries to safeguard human rights, protect personal data, and monitor AI for risks.

The non-binding resolution, proposed by the United States and co-sponsored by China and over 120 other nations, also advocates the strengthening of privacy policies.

“Today, all 193 members of the United Nations General Assembly have spoken in one voice, and together, chosen to govern artificial intelligence rather than let it govern us,” US Ambassador to the United Nations Linda Thomas-Greenfield said.

The resolution is the latest in a series of initiatives – few of which carry teeth – by governments around the world to shape AI’s development, amid fears it could be used to disrupt democratic processes, turbocharge fraud or lead to dramatic job losses, among other harms.

“The improper or malicious design, development, deployment and use of artificial intelligence systems … pose risks that could … undercut the protection, promotion and enjoyment of human rights and fundamental freedoms,” the measure says. In November, the US, Britain and more than a dozen other countries unveiled the first detailed international agreement on how to keep artificial intelligence safe from rogue actors, pushing for companies to create AI systems that are “secure by design.”

Europe is ahead of the United States, with EU lawmakers adopting a provisional agreement this month to oversee the technology. The Biden administration has been pressing lawmakers for AI regulation, but a polarized US Congress has made little headway.

In the meantime, the White House sought to reduce AI risks to consumers, workers, and minorities while bolstering national security with a new executive order in October.

US National Security Advisor Jake Sullivan said it took nearly four months to negotiate the resolution, but that it gave the world “a baseline set of principles to guide next steps in AI’s development and use.”

Asked on Wednesday whether negotiators faced resistance from Russia or China, senior administration officials said there were “lots of heated conversations,” but the administration actively engaged with countries with which it has different views.

Like governments around the world, Chinese and Russian officials are eagerly exploring the use of AI tools for a variety of purposes. Last month, Microsoft said it had caught hackers from both countries using Microsoft-backed OpenAI software to hone their espionage skills.

In response to the Microsoft report, China has said it opposes what it called groundless accusations while Russia did not respond to a request for comment. – Reuters

China’s SMIC may have violated US export curbs to make Huawei chip, official says

STOCK PHOTO

WASHINGTON – The Biden administration said China’s top chipmaker SMIC might have violated US export rules to produce a chip to power Huawei’s Mate 60 Pro phone, but is still evaluating the situation, a senior Commerce Department official stated during a congressional hearing on Thursday.

When asked by Representative Michael McCaul if Semiconductor Manufacturing International Corp (SMIC) broke U.S. export rules to produce the sophisticated chip, Alan Estevez, who oversees export policy, said “potentially yes. We will have to assess.”

Questions have surfaced about whether SMIC illegally obtained US tools to make the chip.

The comments show the Biden administration has not yet reached a conclusion about whether the advanced semiconductor was produced legally, nearly seven months after sanctioned Chinese telecoms firm Huawei released the phone it powers.

That comes amid growing pressure from China hardliners to take action against the two companies since Huawei unveiled a new phone powered by a sophisticated chip manufactured at SMIC in August.

The Huawei Mate 60 Pro was seen as a symbol of China’s technological resurgence despite Washington’s ongoing efforts to cripple its capacity to produce advanced semiconductors.

The phone also prompted a review by the Biden administration to learn the details behind the chip that powers it, the most advanced semiconductor China has so far produced.

When asked about SMIC’s ability to produce the chip for Huawei using American tools, Mr. Estevez said, “I can’t talk about any investigations that may or may not be going. But we certainly share those concerns.”

Huawei was added to a trade restrictions list in 2019 by the Trump administration over alleged sanctions violations. SMIC was added to the same list in 2020 for alleged ties to the Chinese military industrial complex. Both companies have previously denied wrongdoing.

Being added to that list usually bars US companies from selling to the targeted firms, but former President Donald Trump gave the green light to shipments of certain items to both companies, allowing billions of dollars in US goods to flow to them over the last few years.

The Biden administration announced new restrictions on shipments of chipmaking tools to advanced Chinese chip factories in 2022, but SMIC’s top facilities did have access to them prior to the new regulations, Mr. Estevez said. “Those tools will ossify over time, and that process will be degraded.”

The Biden administration is also urging allies to stop shipments of components of chipmaking tools to China, mirroring a similar US move to halt their export, part of an effort to degrade Chinese chipmaking capabilities, Mr. Estevez said. It is also targeting the servicing agreements that keep older tools running, Mr. Estevez added. – Reuters

Japan braces for life with interest rates after historic change

PEOPLE walk on Shibuya crossing in Tokyo, Japan on April 23, 2021, in this photo taken by Kyodo. — KYODO/VIA REUTERS

TOKYO – In the coming years, Satoaki Kanoh needs to replace almost a dozen aging machines at his Tokyo-based maker of acrylic panels, a major undertaking that he worries will become even more expensive.

“Ideally, I’d like to do one a year. But I don’t have that much money,” Mr. Kanoh said of the customized pieces of machinery that cost around 50 million yen ($330,000) apiece.

“If we have to pay a lot to borrow, we could end up in a really tough spot.”

Japan’s central bank this week raised interest rates for the first time in 17 years and scrapped its negative rates policy. While the move is more symbolic than anything else – rates remain pinned near zero – it has nonetheless opened the door to something Japan hasn’t seen in decades: a world where it will cost more to borrow money.

Now, millions of Japanese, from small business owners like Mr. Kanoh to first-time homebuyers, are sizing up how to adapt to higher borrowing costs after the long, lean years of deflation, when prices, wages and the cost of money changed little.

How they cope will have vast implications in an economy where small and medium-sized companies employ some 70% of the workforce and private consumption accounts for more than half of the gross domestic product.

Mr. Kanoh worries about the potential pace of rate increases. Too much too quickly and Japan won’t be able to adapt, he said.

His company, Shinshi Co., has about 100 million yen in loans now, but that’s at a fixed rate.

Even on a smaller loan of about 10 million yen, the difference between 3% and 1% would be considerable, with the annual interest payment on 3% equivalent to an one employee’s monthly salary, he said.

 

DEFLATION PLAYBOOK

Japanese companies and households have long stuck to a deflation playbook: hoard cash and cut costs. That left the economy in a vicious cycle of stop-start growth and flat-lining wages.

Shaking off that deflationary mindset, may prove difficult, even as prices, and some wages, go up.

While big companies are now giving some of the largest pay increases in decades, it’s less clear how much will trickle down to smaller firms.

Around 60% of Japanese firms expect rates to rise to 0.25% by the end of the year, a Reuters survey showed on Thursday. Many said they are looking to front-load spending before borrowing costs rise. Eiichi Hagiwara, who owns a Tokyo-based designer of water treatment equipment, says higher borrowing costs could eat into the already razor-thin margins at small companies.

For him, that could take bigger projects off the table, as those require loans to cover materials and other costs up front, he said. Having to pay interest ultimately means lower profit margins.

“There’s no work with big margins now,” Mr. Hagiwara said. “If I don’t lower prices I can’t get the work.”

Generally he eschews lending, preferring to keep cash reserves for operational costs. He also relies on soft skills, such as taking customers out to cement relationships.

The 76-year-old set up his company, EN-TEC, two decades ago and employs around 20 people. One key to success is being prudent, and ensuring prices are kept low to preserve business ties.

“You have to make sure to take the minimum profit you can,” he said. “If you borrow money and interest rates go up, you’ll be in trouble.”

Mr. Hagiwara has only taken out a big loan once, about a decade ago, for around 100 million yen to buy the building for the company headquarters.

But word of the loan soon got out and associates and competitors assumed the company was in trouble. Mr. Hagiwara then decided to pay it back in full, which he did within half a year of borrowing the money.

 

SILVER LINING

Some business owners, especially those reliant on imports, hope interest rates could finally put a floor under the weak yen. The currency’s chronic sell-off has driven up the cost of food and fuel.

For Yasunobu Tashiro, who runs a restaurant and a shop selling handbags and other imported goods in the hot spring town of Kinugawa Onsen, the yen has been a massive headache.

“We’re in the import business so the weak yen has been causing us a lot of trouble when we go overseas,” he said. Purchases that used to cost the equivalent of $6,700 now cost $10,000 he said.

However, Haruka Yoda, a 29-year-old IT engineer, is more upbeat.

He’s borrowed money to buy a home with his wife and one-month-old baby.

“I feel hopeful that they won’t move too much,” he said.”Even if interest rates rise significantly our salaries might also go up,” he said. – Reuters

Thai scientists breed coral in labs to restore degraded reefs

STOCK PHOTO - pixabay.com

OFF MAN NAI ISLAND, Thailand – On a starry night, four Thai marine biologists scuba dived through shallow waters off an island in the country’s south as billions of pink specks floated up from the ocean floor in a spectacle that takes place only once a year.

The pink specks were sperm and eggs released by coral. The scientists collected as many samples as possible for breeding, as they fight to save Thailand’s expansive reefs from degradation driven by warming oceans and human activity like tourism.

Their research is painstaking because the coral only spawn once a year, and it can take up to five years to raise the juveniles in a lab before they are ready to be transferred back onto the seabed.

“We have hope that the degraded coral reefs can recover and return to their former beauty,” said one scientist, Nantika Kitsom.

She added the loss of Thailand’s reefs doesn’t just pose a significant threat to the ocean ecosystem, but also to the country’s economy, as it impacts tourism and fisheries that depend on healthy coral habitats for fish populations.

The coral breeding and restoration project was started by Thailand’s Department of Marine and Coastal Resources in 2016 in the southern island of Man Nai, chosen because it houses over 98 species of coral.

The project came after as much as 90% of Thailand’s coral reefs were affected by a mass bleaching event that started in 2010, most likely triggered by rising water temperatures. Since the project was initiated, more than 4,000 coral colonies around Mun Nai Island have been restored, the department said.

According to the US National Oceanic and Atmospheric Administration, the world is on the verge of a fourth mass coral bleaching event that could see wide swathes of tropical reefs die. – Reuters

IMF board okays $880 million loan payment for Ukraine, sees war winding down in ’24

THE International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S. — REUTERS

WASHINGTON – The International Monetary Fund’s executive board on Thursday approved a third review of Ukraine’s $15.6 billion loan program, allowing the release of $880 million for budget support and bringing total disbursements to $5.4 billion, the IMF said.

The global lender said the risks facing Ukraine remained exceptionally high, particularly the uncertainties surrounding the war with Russia and prospects for external financing, although Ukraine mission chief Gavin Gray said the fund still expected the war in Ukraine to wind down by the end of 2024.

Gray told reporters that Ukraine’s overall performance on its Extended Fund Facility program with the IMF had remained strong over its first year, and Kyiv had met all but one of the quantitative performance criteria. The miss involved tax revenues, but involved a very minor amount.

Ukraine should receive the funds in coming days, Gray said. That should be welcome news as the US Congress continues to debate approval for a $61 billion supplemental aid package for Ukraine. Gray said the IMF would have to study the impact on Ukraine’s debt levels if US lawmakers decided to convert some of that funding to a loan instead of a grant.

Sanaa Nadeem, the IMF’s deputy mission chief for Ukraine, said the IMF had approved a new debt sustainability analysis for Ukraine that had not materially changed the macroeconomic analysis, but did exclude some $3 billion in debt for Russian Eurobonds that had been contested by the Ukrainian authorities.

She told reporters that credible progress was being made on restructuring Ukraine’s commercial debt, and the IMF expected ongoing technical discussions on that issue to pick up in coming weeks.

 

STRONG ANCHOR

The IMF said its loan program continued to provide a strong anchor for Ukraine’s economic program, which has remained on track despite extremely challenging circumstances due to Russia’s war in Ukraine, now in its third year.

While Ukraine’s economy was more resilient than expected in 2023, headwinds were re-emerging in 2024, with growth expected to soften to 3-4% due to uncertainty about the war and as supply constraints become more binding, the IMF said.

“Looking ahead, the recovery is expected to slow somewhat, given the exceedingly high risks to the outlook stemming mainly from the exceptionally high war-related uncertainty as well as potential delays in external financing,” IMF chief Kristalina Georgieva said in a statement.

“The authorities should be vigilant against these risks. It is also critical that the external financing committed to Ukraine by all donors is disbursed in a timely and predictable manner to safeguard Ukraine’s hard-won macroeconomic stability.”

One critical factor for Ukraine’s future remains the return of an estimated 6.5 million people – mainly women and children – who fled the country and remain outside its borders because of the war.

Nadeem said the IMF continued to expect a net loss of about 2 million people, but said there was a risk that number could grow the longer the war lasts.

“This is indeed a very challenging situation and does present headwinds to society,” she said, noting that Ukraine had an aging society even before the war. – Reuters

Boeing chair to meet key airline customers without planemaker’s CEO, sources say

REUTERS

WASHINGTON/CHICAGO – Major airline chiefs plan to hold discussions with Boeing BA.N board chair Larry Kellner in meetings that will not include CEO David Calhoun after raising concerns over an Alaska Airlines mid-air emergency and ongoing production issues, sources said.

A group of US airline CEOs sought meetings with Boeing directors to express concern over the Alaska Airlines 737 MAX 9 accident, the Wall Street Journal reported earlier, saying it was an unusual sign of frustration with the manufacturer’s problems and its leader Calhoun.

An airline source familiar with the meetings told Reuters the carriers wanted to raise concerns directly with Kellner, who previously served as the CEO of Continental Airlines, and understands their frustration with ongoing delays and quality issues.

In the US, the CEOs of American Airlines, United Airlines, Southwest Airlines and Alaska Airlines plan to hold meetings with Kellner, according to a separate airline source.

The discussions, expected to include at least one other Boeing director, will also include some large foreign airline customers, the sources with knowledge of the matter said on condition of anonymity. Boeing CEO Dave Calhoun supports the meetings but will not attend, a company official said.

A Wall Street analyst said the decision to hold meetings without Calhoun did not appear to be a good sign for the CEO’s longevity at the company. The analyst declined to be named due to the sensitivity of the matter.

Boeing said it had been actively focused on listening to its customers at all levels of its company.

American, United and Alaska Airlines declined to comment.

Southwest said it had nothing to report. “We have ongoing, frequent communication with Boeing, which is not new and will continue,” it said.

Calhoun took over as CEO in 2020 after two fatal 737 MAX 8 crashes after a decade on Boeing’s board. He has vowed to fix quality problems and ensure accident like the mid-air Alaska Airlines panel blowout “can never happen again.”

Michael O’Leary, CEO of Boeing’s biggest European 737 MAX customer Ryanair, told Reuters on Wednesday he was meeting with senior company executives in Dublin to discuss prolonged delivery delays.

The order backlogs and delays in getting planes are frustrating airline executives, who have started to cut routes and are seeking alternatives to meet passenger demand that is set to hit record levels this spring.

Federal Aviation Administration chief Michael Whitaker said on Tuesday Boeing must improve safety culture and address quality issues before the agency will allow the planemaker to boost 737 MAX production.

The FAA in late January took the unprecedented step of telling Boeing it would not allow the company to expand 737 MAX production in the wake of the Alaska Airlines mid-air emergency.

The FAA will only permit an increase when Boeing is running a quality system safely, Whitaker said, adding he has the tools to hold Boeing accountable and fully intend to use them.

Whitaker said Boeing is allowed to produce 38 of the 737 planes per month, but actual current production is lower than that.

Boeing Chief Financial Officer Brian West said on Wednesday: “We are the ones who made the decision to constrain rates on the 737 program… and we’ll feel the impact of that over the next several months.”

The Justice Department has opened a criminal probe into the January MAX 9 cabin panel blowout. The National Transportation Safety Board has said the plane that lost the cabin panel was missing four key bolts. – Reuters

Metrobank to hold virtual Annual Stockholders’ Meeting on April 24

 

 

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20 PPP projects up for ICC approval 

PHILIPPINE STAR/MICHAEL VARCAS

ABOUT 20 public-private partnership (PPP) projects under the government’s flagship infrastructure program are expected to be submitted to the National Economic and Development Authority-Investment Coordination Committee (NEDA-ICC) for approval this year, the PPP Center said on Thursday.

“Of the 182 projects in the priority infrastructure program, around 45 are PPPs,” PPP Center Executive Director Ma. Cynthia C. Hernandez said at a press briefing after the ceremonial signing of the implementing rules and regulations (IRR) of Republic Act No. 11966 or the PPP Code.  “These are in various stages of development, some are being assisted by the PPP Center as well to go through the solicited route.”

“I think within the year, a substantial number of those would be submitted to NEDA, around 20 (will be) submitted to NEDA, to the ICC.”

Once a project is approved by the ICC, it will then be submitted to the NEDA board chaired by President Ferdinand R. Marcos, Jr., for final confirmation.

Ms. Hernandez said the PPP Center has also received and processed about 20 unsolicited PPP projects since the PPP Code was signed into law in December.

The law addresses the bottlenecks that have hampered the implementation of PPP projects.

“This PPP Code provides clarity to many of the ambiguous provisions of the Build-Operate-Transfer law, and so it makes the governance of the PPP more clear,” NEDA Secretary Arsenio M. Balisacan said.

There are 119 PPP projects in the pipeline worth P2.4 trillion, according to NEDA. Of these, 95 are national projects, while 24 are local projects. Most of these projects are in the “physical and digital connectivity phases as well as property development.”

“PPPs will allow us to tap the private sector’s valuable experiences, expertise and financial resources to advance the country’s socioeconomic agenda and development initiatives,” Mr. Balisacan said. “We are in a hurry to get strategic investments to increase our economy’s growth potential.”

Under the law, PPP projects above the P15-billion threshold will still be submitted to the NEDA board, while those below the threshold that do not require government subsidy will be sent to the implementing agency.

Projects that require government subsidy must be sent to the NEDA ICC, while local projects go under their respective councils. 

“That, in a sense, can also diminish the number of PPP projects going to the NEDA board, and that’s part of the streamlining that we are pushing,” Mr. Balisacan said.

PPP Center Deputy Executive Director Jeffrey I. Manalo  noted that under the law, PPP projects must be approved within 120 days.

“What the law and the IRR did actually was to lay down the processes from development all the way to the actual contract signing and even during the implementation,” he said. “Those steps that didn’t have a timeline before now have deadlines, so that all implementing agencies are guided.”

Mr. Manalo said the law also provides a unified legal framework for all entities that want to enter into a PPP with the government.

“Prior to the PPP Code, even the PPP Center didn’t know the number of laws that could be used to enter into public-private partnerships. So, under this code, we have unified it into a single framework, so any government entity who wants to use it, who wants to enter into a PPP, will have to use the law and the processes in the IRR.” — BMDC

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