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Philippine vessels rescue 17 Vietnamese at sea

PHILIPPINE government vessels have rescued 17 crew members of a Vietnamese cargo ship in the waters off Balabac, Palawan, the Philippine Coast Guard (PCG) reported.

Viet Hai Star, sailing under the flag of Vietnam, was carrying 4,000 tons of rice when it ran aground approximately 740 meters off Balabac Port at 9:00 pm on Tuesday night, the PCG said in a statement.

The 16-year-old vessel was headed for Cagayan de Oro City from Ho Chi Minh City, Vietnam “when the crew discovered a leak on the starboard side of the bow,” it said.

The Viet Hai Star was reported half-submerged by 9:21 a.m., after water that entered the starboard side of the bow flooded the forward compartments.

The crew decided to abandon ship at 4:20 a.m. on Wednesday.

The 17 foreign crew members rescued by the PCG and police seacraft arrived at Balabac Port in good condition. — Kyle Aristophere T. Atienza

Investors to be offered 135 water projects

DEPARTMENT OF AGRICULTURE HANDOUT

THE Department of Environment and Natural Resources (DENR) said it will offer 135 water projects to private investors by next year.

Speaking at a forum organized by the Stratbase ADR Institute on Wednesday, Environment Secretary Maria Antonia Yulo-Loyzaga said that the DENR is hoping that the projects “increase the number of persons with access to drinking water and generate inexpensive hydropower.”

She said the projects will be structured to channel some of the resulting government revenue into watershed protection projects.

Separately, Undersecretary Carlos Primo C. David said that the 135 water projects involve water rights held by the National Irrigation Administration (NIA).

“Most of our water is being used by a single sector… agriculture. More than 70% of the water for the entire country is allocated for agriculture through irrigation,” Mr. David added.

“We do not irrigate (the whole year); during the rainy season there is no use for irrigation because all the farms are rain fed,” he added.

He added that some farmland has been converted by residential developers, “and yet our water is still locked in agriculture or irrigation use.”

In October, the DENR and the NIA signed a memorandum of agreement to repurpose surplus irrigation water.

“What this means is that any excess water in irrigation structures, (like) dams and impoundments, can now be utilized for other beneficial uses,” he said.

The NIA has said that the surplus water may now be used for power production, bulk water supply, aquaculture, recreation, and tourism.

Executive Order No. 22 established the Water Resources Management Office under the DENR. It was tasked with undertaking the “integration and harmonization” of all government agencies and activities to ensure available water and sustainable management.

Mr. David added that the volume of the 135 water rights to be offered amount to 12,000 cubic meters per second.

He said that without private sector involvement “(we cannot use) these natural asset for economic development.”

He added that the NIA will be in charge of assigning the water rights to the private investors. — Adrian H. Halili

Nine potential microgrid bidders pre-qualified by DoE committee

THE Department of Energy (DoE) said it pre-qualified nine entities for an upcoming auction for microgrid service areas.

“After a careful evaluation and deliberation of the (Special Bids and Awards Committee), the DoE announces that a total of nine MGSPs (microgrid services provider proponents) were considered as pre-qualified to bid in the MGSP competitive selection process (CSP),” the DoE said in an advisory.

Pre-qualified were DMCI Power Corp., Smart Power Solutions Corp., Alternative Power Resource Holdings, Inc., Manila Electric Co. subsidiary MSpectrum, Inc., Maharlika Clean Power Holdings Corp., Powersource OEG Services, Inc., One Renewable Energy Enterprise, Inc., FP Island Energy Corp., and Vivant Energy Corp.

The pre-bid conference is scheduled for Nov. 29.

According to Republic Act No. 11646 or the Microgrid Systems Act, the DoE is required to conduct a CSP for concessions to serve off-grid areas.

“The DoE looks forward to working closely with the pre-qualified bidders in the next phase of the MGSP-CSP,” the DoE said. 

The DoE last month invited potential bidders to provide microgrid services in 98 unserved and underserved areas.

The 2023-2032 National Total Electrification Roadmap identified 285 unserved and 122 underserved areas in off-grid locations, which will receive priority in CSP auctions.

The DoE has said that some 15,645 households, equivalent to around 39% of potential power consumers in unserved and underserved areas, are expected to benefit from the initial auction round.

The concessions are expected to be awarded by the first quarter of 2024. — Sheldeen Joy Talavera

Hog, chicken egg output rise in 3rd quarter

REUTERS

HOG and chicken egg production rose in the third quarter, according to the Philippine Statistics Authority (PSA).

In a report, the PSA said hog output rose 3.3% year on year to 450.9 thousand metric tons (MT) on a liveweight basis.

The top-producing region during the period was the Central Visayas with 67.66 thousand MT, followed by Calabarzon (59.81 thousand MT), Northern Mindanao (54.5 thousand MT), Central Luzon (46.16 thousand MT), and the Davao Region (36.16 thousand MT).

Central Luzon also reported a top growth rate, doubling its year-earlier total for hog production.

These regions accounted for 58.6% of the hog production during the period, the PSA said.

The national hog inventory declined 2.1% during the period to 9.86 million head, as of Sept. 30, the PSA said.

About 67.5% of hogs are grown by smallhold farms, with the remaining 29.2% and 3.3% accounted for by commercial and semi-commercial farms, respectively.

The average farmgate price of slaughtered hogs dropped 6.1% year on year to P163.34 per kilogram.

Meanwhile, the PSA also reported a 4.7% year-on-year increase in chicken egg output for the period to 185.26 thousand MT.

The top chicken egg-producing region was Calabarzon with 58.53 thousand MT, or 31.6% of national output.

This was followed by Central Luzon (34.11 thousand MT), Northern Mindanao (20.14 thousand MT), the Central Visayas (18.96 thousand MT), and the Western Visayas (10.55 thousand MT).

The leading regions accounted for 76.8% of the national chicken egg total.

As of Sept. 30, the layer flock was about 71.18 million birds, up 5.4% from a year earlier.

The average farmgate price for chicken egg rose 15.3% year on year to P7.45 each. — Adrian H. Halili

Gov’t cash utilization rate hits 94% at end of Oct.

BW FILE PHOTO

THE cash utilization rate of government agencies hit 94% in the ten months to October, the Department of Budget and Management (DBM) said.

The DBM reported that the National Government, local governments and state-owned companies used P3.39 trillion of the P3.6 trillion worth of notices of cash allocation (NCAs) issued as of the end of October.

Unused NCAs amounted to P209.5 billion.

The NCA utilization rate was on pace with the 94% rate posted a year earlier.

NCAs are a quarterly disbursement authority that the DBM issues to agencies, allowing them to withdraw funds from the Bureau of the Treasury to support their spending needs.

As of the end of October, line departments had used 92% of their allotments, equivalent to P2.46 trillion of their P2.67 trillion NCAs issued.

In the 10 months to October, the Commission on Audit was the only department to post a 100% budget usage rate.

Meanwhile, the Department of Information and Communications Technology had the lowest utilization rate of 35%.

Earlier, the DBM reported that it had released 95.8% of the 2023 national budget at the end of October, equivalent to P5.294 trillion of the adjusted P5.529-trillion 2023 spending plan.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the government needs to ramp up its spending in order to support economic growth.

“The cash utilization rate could still pick up for the rest of 2023 and will help contribute more to gross domestic product (GDP) growth, as part of the intervention measures by the government,” he said in a Viber message.

Government agencies were ordered to come up with catch-up plans for spending after low levels of budget utilization in the first half. Government spending contracted by 7.1% in the second quarter. — Luisa Maria Jacinta C. Jocson

House approves bill creating nuclear regulator

HOLTEC

THE House of Representatives on Wednesday approved on third and final reading a bill seeking to establish an independent agency to regulate the nascent nuclear industry.

With 200 yes votes, seven no, and two abstentions, legislators approved House Bill (HB) No. 9293.

The proposed Philippine National Nuclear Energy Safety Act seeks to establish the Philippine Atomic Regulatory Authority (PhilATOM), which will “have the sole and exclusive jurisdiction to exercise regulatory control for the peaceful, safe, and secure uses of nuclear energy and radiation sources,” according to a copy of the bill.

The measure proposes to transfer the regulatory functions of the Philippine Nuclear Research Institute to the new entity, with the latter relegated to research and development activities related to the use of nuclear science and technology.

“This is the first step toward realizing our dream of energy security,” Speaker Ferdinand Martin G. Romualdez said in a statement.

Party-list Representative Raoul Danniel A. Manuel, who voted against the measure, noted that various countries have removed nuclear power from their energy mix.

Germany closed down its last nuclear power plants in April in a transition to renewable energy. Switzerland in 2017 voted to phase out nuclear energy and Italy decommissioned its last reactors in 1990.

“In the current global context, world powers like the US have also used partnerships for nuclear energy as a tool to root themselves deeper in countries like ours and make us more dependent on them,” Mr. Manuel said.

The Philippines and the US last week signed a deal that would allow the export of American nuclear technology and materials.

“The US will be able to share equipment and material with the Philippines as they work to develop small modular reactors and other civilian nuclear energy infrastructure,” US Secretary of State Antony Blinken said.

“We see nuclear energy becoming a part of the Philippines’ energy mix by 2032 and we are more than happy to pursue this path with the US,” President Ferdinand R. Marcos, Jr. said last week.

Mr. Manuel cited the risk of the Philippines becoming “a potential dumpsite for the US and other countries’ nuclear waste and the negative effects it might have on our communities and environment.”

Bataan Rep. Albert S. Garcia, who also voted no, cited the lack of local government units’ authority to accept or reject nuclear facilities.

“All developments and all disasters are also local,” he told the plenary.

He added that while the bill allows PhilATOM a measure of independence, it does not establish its accountability in the event of nuclear disasters.

Bataan Rep. Maria Angela S. Garcia, who also opposed the measure, said it places the public at a disadvantage by passing on to consumers the cost of generating nuclear power.

HB 9293 also seeks to allocate P0.06 per kilowatt hour (kWh) of electricity generated to the Radioactive Waste Management Fund, which will finance the disposal of spent fuel. It will be held in trust by the Development Bank of the Philippines.

The regulator will collect a fee not exceeding P0.02 per kWh to support its operations. Funds will also come from the budget, and contributions, grants, bequests, and donations from domestic or foreign sources.

Environmental groups have said that renewables like solar, wind and hydro are cheaper and readily available, being indigenous resources. — Beatriz Marie D. Cruz

Hydrogen exploration rules to be modeled on Presidential Decree governing resource dev’t

REUTERS

THE Department of Energy (DoE) said the awarding of service contracts for the exploration, development, and production of hydrogen will follow the general outlines of a 1972 Presidential Decree (PD) regulating energy exploration.

In a department circular dated Nov. 9, the DoE said that the exploration, development, and production of naturally occurring native hydrogen will follow the rules set down in PD 87 issued in 1972, as amended and implemented by the rules, regulations, issuances and procedures set down by the DoE.

“There is a need to provide guidelines to accelerate the exploration, development and production of native hydrogen to contribute to the country’s energy security, create jobs, and generate wealth,” the DoE said.

The DoE said native hydrogen resources can be classified as mineral gas akin to hydrocarbon gas, bitumen, asphalt, and “all other similar or naturally associated substances” except coal, peat, bituminous shale and/or other “stratified mineral fuel deposits.”

“Native hydrogen gas occurs naturally in geological formations and can be associated with methane and other hydrocarbon gases and can be considered a mineral gas,” the DoE said.

The Energy department said last week that it will conduct a hybrid public consultation on the draft Department Circular Providing a National Policy and General Framework, Roadmap, and Guidelines for Hydrogen in the Energy Sector on Nov. 30. — Sheldeen Joy Talavera

All 3 major DoTr rail projects also seeking NEDA approval to update estimated costs

THE Department of Transportation (DoTr) said it will seek the approval of the National Economic and Development Authority (NEDA) to raise the loan amount taken on to finance its three major railway projects.

“We need updated approval… because the cost will be higher due to the delays, it needs to be updated,” Transportation Secretary Jaime J. Bautista told reporters on sidelines of a forum on Wednesday.

In mid-November the DoTr said it will also seek approval to adjust the cost estimates and loan terms for the Metro Rail Transit Line 4 project.

The Philippines withdrew its request for official development assistance (ODAs) from China for the three railway projects due to lack of progress on the financing decision.

Mr. Bautista has  said that the government is exploring its funding options and is considering ODA from Japan, South Korea and India to fund Bicol’s South Long-Haul, Mindanao Railway, and Subic-Clark Railway.

The government may also tap funding from the World Bank, Asian Development Bank and the Japan International Cooperation Agency, the DoTr has said.

Phase 1 of the Mindanao railway project is projected to cost around P83 billion. This railway runs from Tagum, Davao del Norte to Digos City, Davao del Sur and is expected to accommodate 122,000 passengers per day and cut travel time between Tagum and Digos from three hours to one.

Meanwhile, the Subic-Clark railway and the Philippine National Railway’s South Long-Haul railway are estimated to cost around P50 billion and P142 billion, respectively. — Ashley Erika O. Jose

DBM to release P303.5M for classroom construction 

PHILSTAR

THE Department of Budget and Management (DBM) has approved the release of P303.5 million to build more classrooms.

The funds will help build 120 additional classrooms across 21 schools.

“The request for the release of funds under the Basic Education Facilities (BEF) Batch 2 for Calendar Year (CY) 2023 was approved after the requirements were completed,” the DBM said.

Budget Secretary Amenah F. Pangandaman said the release complies with the administration’s directive to “improve education facilities to create a conducive learning environment for all learners, including in remote and hard-to-reach areas.”

“The total authorized appropriation for Special Provisions in the FY 2023 Department of Education budget of P15.7 billion is being implemented by the Public Works and Highways department,” the DBM said.

“This includes P15.6 billion for the construction, replacement, and completion of kindergarten, elementary, and secondary school buildings and technical vocational laboratories, among others,” it added. — Luisa Maria Jacinta C. Jocson

PHL joins board of most vulnerable countries grouping

PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINES has joined the Board of Vulnerable 20 Group of Finance Ministers (V20), organized under the Group of Seven (G7) Global Shield Against Climate Risks program, the Department of Finance (DoF) said.

“We will use this seat to further the interests of the Philippines. This initiative will widen access to much-needed financial protection to make climate-vulnerable countries like the Philippines more resilient,” Finance Secretary Benjamin E. Diokno said.

The 12-member board is composed of the Philippines, Barbados, Fiji, Samoa, Uganda, Denmark, the European Union, France, Ireland, and the UK, with Ghana and Germany serving as co-chairs.

Global Shield Against Climate Risks aims to ramp up climate and disaster protection to vulnerable countries through “pre-arranged and trigger-based finance” as well as address damage caused by the climate crisis.

“In the Philippines, climate change is a daily reality — one that includes more frequent and intense typhoons, flooding, and sea-level rise with devastating effects on our economy and communities,” Finance Undersecretary Maria Luwalhati C. Dorotan Tiuseco said.

“On the current trajectory of global warming, we know for a fact that losses will continue to grow, while global economic shocks diminish vulnerable countries’ ability to respond,” she added.

The DoF said that its existing pipeline of partnerships with development partners on climate finance instruments can serve as “entry points or models for the type of assistance that may be secured under the Global Shield Initiative.”

“The focused and dedicated tools under the Global Shield Initiative, as a grant facility, will directly contribute to the overall climate and disaster risk management agenda and disaster risk financing and insurance strategy of the Philippines,” the DoF added. — Luisa Maria Jacinta C. Jocson

What’s next for forex in streamlined BSP regulations

In its commitment to maintain a foreign exchange regulatory framework that is responsive to the needs of a dynamic and expanding Philippine economy, the Bangko Sentral ng Pilipinas (BSP) issued a number of circulars in 2022 and 2023 which streamlined the requirements for forex transactions. The salient provisions of these circulars are as follows.

CURRENCIES DECLARATION FORM
The BSP allows persons to bring into or take out of the country Philippine currency at a maximum amount of P50,000 (up from P10,000 before 2016) without prior written authorization.

Under BSP Circular No. 1146 (dated May 26, 2022), submission of a CDF for the physical cross-border transfer of Philippine currency exceeding P50,000 is now required.

The CDF requires the person transferring currency to declare the following information:

(1) Identification of the transferor (name, birth details and citizenship, travel document details);

(2) Occupation or principal business activity;

(3) Addresses (local and overseas, as applicable);

(4) Travel details (ports of origin and destination, dates of departure and arrival);

(5) Types of currency being transferred;

(6) Date of written BSP authorization; and

(7) Source of funds (e.g., salary, business) and purpose of the currency transport (e.g., travel, medical).

The above information consolidates the requirements of the BSP, Bureau of Customs (BoC), and the Anti-Money Laundering Council for the more efficient and timely capture of data. Incidentally, an official from the BoC would be required to administer an oath and sign the CDF to verify the currency count.

Finally, the CDF indicates that the limit for cross-border transfer of Philippine currency is on a per-person basis, regardless of age. As an example, for a family of four, a total of P200,000 may be brought in or out of the Philippines without prior authorization.

SIMPLER ELECTRONIC DOCUMENT SUBMISSION
In response to the pandemic, the BSP temporarily allowed the submission of soft-copy documents; in turn, all documents issued by the BSP (e.g., letters of approval and the Bangko Sentral Registration Document or BSRD) during the quarantine period were made electronic. A year after, the BSP formally adopted, on a permanent basis, the issuance and submission of documents via electronic means through BSP Circular No. 1124.

BSP Circular No. 1171 (dated March 29, 2023) was also issued to further formalize the simplified documentary requirements, as follows:

(1) Application forms from the BSP-International Operations Department (IOD) can be electronically filed to the BSP without e-signatures, provided that these are accompanied with the attestation required under prevailing circulars; and

(2) Relevant supporting documents are not required to be notarized (unless provided for by applicable laws), subject to the submission of the above attestation.

Following these, the effective date of filing/submission to the BSP will be the date when the reports are sent electronically to the designated BSP e-mail addresses. Prior to Circular No. 1171, it was mandatory for forex reports to be filed physically at the BSP’s Main Office or its Regional Offices.

In view of the above, prior to processing a forex transaction, authorized agent banks are required to verify first with the BSP the authenticity of electronically issued BSP documents submitted by their clients.

NO PROCESSING FEES
In the same circular, applications for approval and/or registration of forex transactions submitted to the BSP-IOD (e.g., forex loans, inward investments) are now free of charge, unless otherwise required. As such, the BSP deleted the corresponding appendix listing of its processing fees on forex transactions.

The BSP likewise repealed the assessment of processing fees when a private sector foreign loan (that is not publicly guaranteed) is registered with the BSP.

REISSUANCE OF LOST E-BSRDs
From March 27, 2020, lost BSRDs issued in electronic form may now be reissued by the BSP pursuant to Circular No. 1171, provided that there has been no change in the financial terms of the registered forex loan. Previously, the BSP only allowed the replacement of lost BSRDs subject to the foreign investor’s submission of an affidavit of loss.

A request to reissue shall be filed with the BSP-IOD by the resident borrower, supported simply by a cover letter or e-mail containing the signed attestations required by the BSP.

APPRAISAL OF NON-CASH INWARD INVESTMENT
Finally, Circular No. 1171 removes the requirement that the BSP appraise the value of in-kind inward foreign investment (i.e., assets actually transferred to the Philippines, such as machinery/equipment) for registration purposes.

Given the pressing need to make cross-border transactions more convenient, it is encouraging to see the BSP revisiting its regulations and ensuring that these keep up with the faster pace of doing business after the pandemic.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Bon Yannicka M. Chua is an assistant manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

bon.yannicka.x.chua@pwc.com

Ateneo routs Adamson to earn last ticket to UAAP Final Four

JARED BROWN — FACEBOOK.COM/WEARETHEUAAP

Games On Saturday
(Smart Araneta Coliseum)
11 a.m. — UST vs UP (women’s Final Four KO)
2 p.m. — UP vs Ateneo (men’s Final Four)
6 p.m. — La Salle vs NU (men’s Final Four)

REIGNING champion Ateneo de Manila University ran away with a coast-to-coast 70-48 win over Adamson University (AdU) in the knockout set to earn the last and fourth ticket in the University Athletic Association of the Philippines (UAAP) Season 86 men’s basketball tournament Final Four yesterday at the Mall of Asia Arena.

The Ateneo Blue Eagles took flight with an 8-0 start and never set foot on the ground since then, leading by as many as 25 points en route to the big win that kept their title defense hopes flickering against no less than a very familiar neighbor.

Ateneo faces its Katipunan rival and top-ranked University of the Philippines (UP), a team it faced in the last two finals, this time in the Final Four albeit with a twice-to-win handicap as the No. 4 squad.

Jared Brown stood at the forefront of the barrage with 20 points on four treys laced by four rebounds, four assists and a steal as Ateneo emerged triumphant its first ever playoff match to dodge a rare semis miss under the watch of Tab Baldwin.

Sean Quitevis (11) and Mason Amos (10) cashed in key contributions while Kai Ballungay (7-7-4-2) and Joseph Obasa (4-16-2) anchored Ateneo’s defensive masterclass.

“I guesss probably on the scoreboard, maybe it didn’t look like a tough game in the end. But it was very tough game, it always is with Adamson,” said Mr. Baldwin.

“We’re very happy with the results and obviously, our mind is shifted over on UP beginning our preparations immediately.”

Ateneo, in a shaky title defense this season following the departure of its championship core, split its season series with Adamson with both games going down the wire.

But not this time around.

With Mr. Brown waxing hot early, Ateneo took a commanding 40-26 lead at the turn and met little to no resistance on its way to the blowout win that somehow made it up for the exit of the Ateneo women’s team earlier.

Matt Erolon (9) and Didat Hanapi (8) led the way as “King Falcon” Jerom Lastimosa, nursing an ACL, suited up in the second quarter and returned in the last two minutes before sinking a trey at the final buzzer for his fitting swan song in an illustrious UAAP career.

In women’s basketball, seven-peat champion National University (NU) dominated Ateneo, 58-43, to barge into its ninth straight finals appearance with Camille Clarin (12) and Karl Pingol (10) leading the way.

On the other hand, Favour Onoh hauled down a UAAP record of 30 rebounds plus 14 points as the third-ranked UP erased a 20-point deficit to stun No. 2 Santo Tomas (UST) in overtime, 88-80, and force a do-or-die Game 2. Louna Ozar (25), Kaye Pesquera (19) and Rhea Sanchez (12) also sizzled as the Fighting Maroons neutralized the Growling Tigresses’ twice-to-beat advantage for a chance to face the mighty Lady Bulldogs in the finale. — John Bryan Ulanday

The Scores: (men’s)

Ateneo 70 — Brown 20, Quitevis 11, Amos 10, Ballungay 7, Bongo 4, Obasa 4, Koon 3, Nieto 3, Credo 3, Espinosa 3, Lazaro 2, Chiu 0, Gamber 0, Tuano 0.     

AdU 48 — Erolon 9, Hanapi 8, Calisay 5, Manzano 4, Yerro 4, Montebon 4, Sabandal 4, Magbuhos 3, Lastimosa 3, Barasi 2, Ramos 2, Colonia 0, Ojarikre 0, Cañete 0, Barcelona 0, Anabo 0.   

Quarterscores: 24-15, 40-26, 56-39, 70-48.

The Scores:( (women’s)

First Game

NU 58 — Clarin 12, Pingol 10, Canuto 8, Konateh 8, Berberabe 4, Solis 4, Cayabyab 3, Betanio 3, Talas 3, Surada 2, Fabruada 1, Alterado 0, Alcantara 0.

Ateneo 43 — Calago 12, Dela Rosa 10, Makanjuola 8, Joson 7, Villacruz 6, Gastador 0, Angala 0, Solis 0, Nieves 0, Mataga 0, Fetalvero 0, Eufemiano 0.

Quarterscores: 13-11, 31-27, 48-37, 58-43.

Second Game

UP 88 — Ozar 25, Pesquera 19, Onoh 14, Sanchez 12, Domingo 9, Tapawan 6, Maw 2, Bariquit 1, Lozada 0, Vingno 0.

UST 80 — Pastrana 29, Tacatac 12, Santos 9, Villasin 9, Ferrer 7, Maglupay 4, Danganan 3, Dionisio 3, Soriano 2, Ambos 2, Bron 0, Ly 0, Serrano 0.

Quarterscores: 21-22, 38-45, 59-54, 72-72, 88-80 (OT).