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US jobless aid programs bilked of up to $135 bln during COVID, watchdog says

PEXELS-JOHN GUCCIONE

Up to $135 billion of jobless benefits paid out by US states during the coronavirus pandemic may have arisen from fraudulent claims, Washington’s top government watchdog said on Tuesday in a report suggesting the problem is much bigger than previously estimated.

Waves of fraudulent claims for unemployment insurance benefits have episodically inflated the volumes of new filings reported each week to the Labor Department by all 50 states, the District of Columbia, Puerto Rico and the US Virgin Islands, often confounding economists tracking the data for a read on the health of the job market.

But a new General Accountability Office report estimates the problem is much bigger: Between $100 billion and $135 billion of the roughly $900 billion in jobless benefits payouts from April 2020 through May 2023 may have been fraudulent. At the high end, that would equal about $1 of every $7 paid in aid over that time.

The GAO’s fraud estimate is around two times or more higher than the nearly $56 billion it said states themselves have estimated paying in either fraudulent payments or non-fraudulent overpayments between March 2020 and March 2023.

“The full extent of UI fraud during the pandemic will likely never be known with certainty,” the GAO report summary said.

The Labor Department disputed the magnitude of the GAO finding, saying it was based on a small sample of questionable claims under the Pandemic Unemployment Assistance program.

The PUA was established under the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act as U.S. unemployment benefits rolls surged from fewer than 2 million recipients to more than 23 million in a matter of weeks in the spring of 2020 due to lockdowns early in the pandemic. After several extensions, the PUA – which provided benefits to jobless individuals who would not typically have been eligible for them – expired in September 2021.

“For this reason, the Department believes that the GAO’s report overestimates the level of fraud and that this report can best be understood as an estimate of UI fraud risk rather than a fraud estimate,” Brent Parton, the department’s principal deputy assistant secretary, wrote to the GAO investigators.

Fraudulent claims activity has periodically distorted the data reported weekly by the Labor Department, befuddling economists who count on the data for gauging the wherewithal of the job market.

In early May a surge in new benefits claims to the highest level since October 2021 briefly led economists to conclude a long-awaited softening in the labor market was taking hold. The increase soon afterward was attributed almost entirely to a wave of fraudulent claims in Massachusetts, and the initial estimate of claims for that period was later revised down by 32,000, or more than 12%.

Another short-lived increase in new claims in August was seen by some economists as related to an increase in fraudulent claims activity in Ohio. – Reuters

PHL plans sukuk issue by yearend

PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE government is looking to issue Islamic bonds, also known as sukuk bonds, by yearend or in the first quarter, National Treasurer Rosalia V. de Leon said.

This would mark the Philippines’ debut in the Islamic bond market, as the government looks to fund its budget deficit.

“As for the timing, we’ve been told that there would have to be a 12-week preparatory lead time that would be needed, so hopefully we can do this before the end of the year or if ever, it would have to slip to the first quarter of 2024,” Ms. De Leon said during the Philippine Economic Briefing in Dubai on Tuesday.

She said that the government is now consulting potential underwriters for the details of the issuance, including its structure, which may be a “hybrid Wakalah, Ijara or Murabaha.”

“In terms of the tenor size, I think the sweet spot would be between the long (tenors of) five and the 10-year (bonds) because this would also be something that would be catering to our small investors and at the same time also to the institutional investors,” she said.

Ms. De Leon did not give the offer size for the planned sukuk bonds. In July, Finance Secretary Benjamin E. Diokno told Bloomberg that the government was eyeing to raise $1 billion from the sukuk bond deal.

Bangko Sentral ng Pilipinas (BSP) Assistant Governor Arifa A. Ala said that the sukuk issuance is a “good complement” for the central bank’s efforts to promote Islamic banking in the country.

“Having sukuk bonds being issued by the National Government will send a strong signal that the Philippines is now ready to accept applicants (and) new players in the Islamic banking system,” she added.

Ms. De Leon also reaffirmed the government’s plan to offer US dollar-denominated retail Treasury bonds within the month.

“Even in terms of the tenor, we’re looking at the belly of the curve, so that would be a long five. The other feature is that the tax would be assumed by the government, that means the full coupon would be going to our Filipino investors. That’s something we hope to launch (by) the end of the month,” she added.

The government is planning to offer $5 billion worth of bonds this year, the national treasurer said.

“We’re looking at another billion-dollar issuance and maybe this time around, if we make it to the 12-week preparation time, then we’ll be issuing a sukuk structure bond as the remaining issuance from the Republic for the rest of the year,” she added.

MAHARLIKA FUND
Meanwhile, the economic team presented the country’s first sovereign wealth fund, the Maharlika Investment Fund (MIF), to potential investors in Dubai.

“During this visit to Dubai, we’ve been in touch with sovereign wealth funds, but even with infrastructure funds and potential co-investors, looking into joint ventures,” Ms. De Leon said.

“We’ve been able to present a list of our infrastructure flagship projects and how these would complement their own priorities.”

In July, President Ferdinand R. Marcos, Jr. signed into law the Maharlika Investment Fund Act of 2023, which creates the MIF.

The sovereign wealth fund will be managed by the Maharlika Investment Corp. (MIC), which will have authorized capital stock of P500 billion.

“It’s intended to be an additional funding source. We’ll probably graduate to upper middle-income status within two years and will no longer be entitled to concessional loans. This is in preparation for that,’ Mr. Diokno said.

The Finance chief said that the Philippines must ramp up investments in projects that will improve physical and digital connectivity, as well as boost the country’s transition to clean energy.

WTO warns against global trade split-up

WORLD TRADE ORGANIZATION (WTO) Director-General Ngozi Okonjo-Iweala speaks about the need for a global free trade order to address 21st century problems including poverty and climate change at the WTO headquarters in Geneva in this photo taken on Sept. 12. — NORMAN P. AQUINO

By Norman P. Aquino, Special Reports Editor

GENEVA — Geopolitical tensions and recent crises have spurred protectionist policies that are slowly eroding the world’s trading system and could ultimately fragment the global economy, the World Trade Organization (WTO) said, as it called for a renewed drive toward a broader and more inclusive integration.

In its annual Global Trade Report released on Tuesday, the world’s biggest economic organization said the tariff escalation between the US and China has slowed trade growth between them, while there have been signs of trade reorientation along geopolitical lines since Russia invaded Ukraine in February 2022.

Despite these challenges, international trade continues to thrive, and talk of de-globalization is on balance still far from supported by the data, Ralph Ossa, the WTO chief economist, told reporters at a news briefing in Geneva.

“We need to embrace trade instead of rejecting it if we want to overcome the most pressing challenges of our times,” he said. “The report makes the case for extending trade integration to more economies, to more people and to more issues — a process we call re-globalization.”

A strong multilateral trading system is the “best guarantor of economic security” because it provides the options needed when faced with supply shortages, Mr. Ossa said, citing the global coronavirus pandemic as an example.

In the report, the WTO said globalization must evolve in response to new challenges and needs to be accompanied by appropriate domestic policies.

“Re-globalization offers a better path forward,” WTO Director-General Ngozi Okonjo-Iweala said in the foreword of the 134-page report. “Bringing more countries and communities from the margins of the global economy to the mainstream would make for deeper, more diversified markets that are more resilient to shocks.”

Globalization — and WTO — critics have said the WTO’s consensus system needs to be replaced by a new negotiating model that meets 21st century problems including climate change, environmental destruction, low labor standards, human rights and corruption. They are also calling for bilateral and plurilateral deals to level the playing field.

“The WTO is concerned because the issue of trade and commerce has been politically tainted,” Philippine Chamber of Commerce and Industry President George T. Barcelon said by telephone before the WTO event. “Once it’s tainted, it will hold back actions that should come into play in the free market. The Philippines is having difficulty already in the supply chain especially during the coronavirus disease 2019 (COVID-19) pandemic. After that, some countries added another layer by weaponizing trade.”

This has especially affected the agriculture sector, which is heavily dependent on imported inputs such as fertilizer that comes from Russia, Belarus and Ukraine, where there is a war, he added.

“I am all for re-globalization, as long as the WTO can get people to follow the rules.”

In the report, the WTO noted that with security considerations becoming an increasingly influential factor in trade policy, some countries might reshuffle trade relationships due to tensions, but taking this too far would be counterproductive.

“The long-term evidence suggests that trade has contributed positively to peace among nations,” according to the report. “With regard to economic security, recent experiences with the COVID-19 pandemic, extreme weather events and the war in Ukraine have demonstrated how deep and diversified international markets help countries cope with unanticipated shortages by securing supplies from alternative sources,” it added.

Global trade flows have been resilient throughout past shocks, the WTO said, adding that trade costs keep falling as digital technologies facilitate international transactions and economies continue to sign integration deals.

The 164-member trade group admitted that there have been longstanding issues on its agenda, particularly agriculture, which accounts for a big employment pie in many member countries.

For one, trade costs in agriculture exceed those in manufacturing by 50%, penalizing poorer segments in society that rely on this sector.

WARNING SIGNS
Still, the WTO said it is already making a difference here — recent research found that its Trade Facilitation Agreement has had disproportionately positive effects on agricultural trade since it took effect in 2017, with least developed countries posting a 17% increase in agricultural exports as a result.

“Trade can be a powerful magnifying force of domestic competitiveness reforms, but in the absence of such domestic reforms, its role is limited,” Mr. Ossa separately told BusinessWorld in an e-mailed reply to questions. “That said, much remains to be done in the area of agricultural trade policy reforms.”

Trade costs in agriculture are 46% higher than in manufacturing, holding back agricultural exports around the globe, he said, citing the 2023 Global Trade Report. “While not all of this reflects policy barriers, it points to substantial unfinished business in multilateral trade negotiations.”

Mr. Ossa said de-globalization has not happened yet, noting that China remains the biggest trading partner for many economies including the Philippines.

He does not expect this to change soon. He noted that bilateral trade between China and the US reached a record $690.6 billion (P39 trillion) in 2022.

Mr. Ossa said trade was remarkably resilient during the COVID-19 pandemic, bouncing back to pre-pandemic levels less than a year after the first wave of lockdowns.

Trade in digitally delivered services remained strong all along, growing at an average annual rate of 8.1% between 2005 and 2022, outpacing goods (5.6%) and other services (4.2 %).

“But the warning signs must be taken seriously,” he said. “In the report, we looked at trade within and between hypothetical geopolitical ‘blocs’ constructed based on voting patterns in the United Nations General Assembly,” he said.

Goods trade flows between these “blocs” have grown by as much as 6% more slowly than within these ‘blocs’ since the onset of the war in Ukraine, indicating a shift toward friend-shoring, Mr. Ossa said.

“We also report an increasing level of trade concerns being raised about unilateral policies of trading partners at the WTO and the International Monetary Fund has reported a fragmentation of investment flows,” he said.

“All of this will eventually be reflected in reduced trade growth unless countries re-embrace multilateralism or re-globalization,” he added.

The WTO’s next trade forecast will come out in early October, “and it will be interesting to see what direction trade has taken since the spring.”

“Globalization never really went away, but in recent years it has been under serious scrutiny — partly due to international overdependence on China’s manufacturing prowess and the disruption in oil and gas trade due to Russia’s invasion of Ukraine,” said Arthur E. Appleton, a partner at Appleton Luff — International Lawyers and adjunct professor at the Johns Hopkins University School of Advanced International Studies.

Because of China’s actions in the South China Sea and its aggressive rhetoric toward Taiwan, Western countries are making efforts to onshore manufacturing and shorten supply chains, he said in an e-mailed reply to questions.

“Hopefully this is a temporary phenomenon. Despite globalization’s retreat, it remains important, particularly for the Philippines which is beginning to benefit from its various comparative advantages and continued integration into global supply chains,” Mr. Appleton said.

“The Philippines needs globalization to continue the development of its goods sector, and its increasingly important service sector. The rule-based trading system which is the backbone of globalization provides security to the Philippine business community and for Philippine economic development,” he added.

Mr. Appleton said it is in the Philippines’ economic interest to continue its integration into global supply chains despite challenges particularly in agriculture.

On the other hand, he said the WTO is stymied by its reliance on the consensus system.

“Getting 164 members to agree on anything is very difficult,” he said. “The WTO is also hampered by the US decision to block appellate body appointments. Without an effective dispute settlement system, it is more difficult to apply the rule of law when international trade disputes arise.”

Mr. Appleton said WTO members are likely to consider additional plurilateral alternatives to avoid blockages caused by the consensus system, and they need to resolve the dispute settlement impasse.

‘NOT PERFECT’
“The WTO is not perfect — far from it,” Ms. Okonjo-Iweala said in the report. “But the case for strengthening the trading system is far stronger than the case for walking away from it.”

She also said WTO members are acting to reinvigorate the organization, adding that today’s complex challenges require more, not less, international cooperation.

WTO members are actively looking at how to update and upgrade the group’s rulebook so that trade can contribute fully to effective responses.

The alternative to rules-based integration is power-based fragmentation and a world of greater uncertainty, increased socioeconomic exclusion and heightened environmental decline, Ms. Okonjo-Iweala said.

This year’s World Trade Report makes the case that “re-globalization” is a far more attractive alternative, she said, adding that policy makers should find it useful in shaping the future of trade “for peace, people and the planet.”

AMRO trims 2023 PHL growth outlook

PHILIPPINE STAR/EDD GUMBAN

PHILIPPINE gross domestic product (GDP) growth is likely to fall slightly below the government’s target this year, the ASEAN+3 Macroeconomic Research Office (AMRO) said.

“The Philippines’ economic growth is projected to moderate to 5.9% in 2023 due to high base effects and weaker external demand, before edging up to 6.5% in 2024 as external demand recovers,” AMRO Group Head and Principal Economist Runchana Pongsaparn said in a statement on Tuesday.

Mr. Pongsaparn was part of the AMRO team that visited Manila from Aug. 29 to Sept. 8. for its annual consultation.

“Meanwhile, domestic demand is expected to remain robust supported by continued improvement in labor market conditions, lower inflation, robust overseas remittances, and higher government infrastructure spending,” he said.

The think tank’s latest 2023 GDP forecast is lower than the 6.2% it gave in its Regional Economic Outlook Report in July. It also falls below the government’s 6-7% GDP target.

AMRO kept its Philippine growth forecast for 2024 unchanged at 6.5% amid an expected recovery in external demand. This is at the lower end of the government’s 6.5-8% target for next year.

The think tank noted the Philippine economy continued to show strong growth momentum in the first half of 2023. Philippine GDP expanded by a weaker-than-expected 4.3% in the second quarter, bringing the first semester growth to 5.3%.

“Growth was supported by resilient domestic demand with a strong recovery in the labor market despite weaker external demand. Notwithstanding a widening current account deficit, external position remains sound with sufficient international reserve buffer and low external debt,” AMRO said.

AMRO also said Philippine full-year inflation will likely settle at 5.5% this year before slowing further to 3.8% in 2024.

“Despite some moderation, inflationary pressure will likely remain elevated as reflected in the high level of core inflation, due to a positive output gap and the second-round effects induced by increases in the minimum wages and expectations of persistently high inflation,” it added.

Meanwhile, AMRO flagged risks to the Philippines’ growth outlook such as elevated inflation, local supply shocks, an economic slowdown in major trading partners and global financial market volatility.

“The long-term growth potential is largely affected by the scarring effects of the pandemic, the pace of infrastructure development, geopolitical risks, and the economic losses from natural disasters, which are being exacerbated by climate change,” it said.

Among AMRO’s policy recommendations to boost growth include upskilling the workforce, implementation of policies to attract investments and promote exports of goods and services. The government can also improve the Philippines’ competitiveness through infrastructure investment and digitalization, it added.

For the medium and long term, AMRO said “fiscal policy should balance between restoring fiscal buffer and supporting sustainable growth and development.”

The think tank said close coordination between regulators will be crucial in identifying and mitigating financial stability risks that may arise from nonfinancial firms.

“Meanwhile, the authorities should continue to improve the liquidity management framework, develop the bond and repo markets, and continue to expand financial inclusion, to enhance the system’s resilience to shocks and promote market activities,” it added. — Luisa Maria Jacinta C. Jocson

Central bank ready to act as price pressures persist

The central bank slightly raised its average inflation forecast for 2023 to 5.6% from 5.4% previously. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE BANGKO SENTRAL ng Pilipinas (BSP) stands ready to act as necessary to address any risk to inflation, which is still seen to fall within the 2-4% target range by fourth quarter this year, an official said.

BSP Deputy Governor Francisco G. Dakila, Jr. said inflation will fall within the 2-4% target range in the fourth quarter, barring unprecedented supply shocks. 

“Nevertheless, we continue to see that the risks to the inflation outlook have remained tilted towards the upside both for this year and for next year,” he said during the Philippine Economic Briefing in Dubai on Tuesday.

“The BSP remains ready to respond as necessary to any risks that threaten the achievement of the inflation target.”

Inflation accelerated for the first time in seven months in August, as food and transport costs surged. Inflation rose to 5.3% in August, marking the 17th consecutive month that inflation surpassed the BSP’s 2-4% target.

For the January-to-August period, inflation averaged 6.6%, still above the central bank’s 5.6% full-year forecast.

Mr. Dakila said August inflation was largely due to weather-related disturbances in the country, which drove up the prices of food items such as rice, vegetables, and fish.

“In the absence of further supply shocks, risks continue to lean towards the upside over the near term. Hence, the case for vigilance remains,” he said.

Mr. Dakila said the BSP would like to see inflation go back to within the 2-4% target band before any policy easing is considered due to the need to anchor inflation expectations.

The Monetary Board has paused for a third straight meeting in August, keeping its key policy rate at a near-16 year high 6.25%. From May 2022 to March 2023, the central bank hiked benchmark interest rates by 425 basis points (bps).

“On the BSP’s part, the Monetary Board is set to convene and decide on the policy stance next week, on Sept. 21. As always, our focus remains on ensuring price stability conducive to sustainable and non-inflationary growth,” Mr. Dakila, adding that it will also take into consideration the US Federal Reserve’s next move.

However, Mr. Dakila noted that “the situation is now very different compared from where we were last year, when inflation is still in an upward trajectory.”

“Right now, the focus of the Monetary Board will be on domestic situations. The impact of external factors will be less compared to last year,” he said, adding that the peso has stabilized this year.

The Fed’s next meeting is on Sept. 19 to 20. It hiked borrowing costs by 25 bps at its meeting in July, bringing the Fed funds rate to 5.25-5.5% — its highest level in 22 years. — Keisha B. Ta-asan

BoI-approved investments hit P800 billion

PHILIPPINE STAR/MICHAEL VARCAS

THE BOARD of Investments (BoI) has already approved P800 billion worth of investments as of early September, surpassing last year’s level, Trade Secretary Alfredo E. Pascual said.

Mr. Pascual told reporters on Monday that the BoI’s year-to-date investment approvals have already exceeded the P729 billion in investments it greenlit in 2022.

The Trade chief said the BoI appears to be on track to reach its revised P1.5-trillion full-year target.

“I am confident that this target could be achieved. There is even a possibility that it could be surpassed,” he told reporters in mixed English and Filipino.

The BoI raised its target for investment approvals this year by 50% to P1.5 trillion from the original P1 trillion.

Mr. Pascual had also said the Philippines is aiming to be a top-two destination within the Association of Southeast Asian Nations for foreign direct investments.

“But the more immediate and reliable barometer is the entry of investments in the BoI,” he said. — J.I.D. Tabile

Objects of antiquity unveiled to the public

EDWIN BAUTISTA points out his favorites from the Philippine map section. — BRONTË H. LACSAMANA

An exhibit of a banker’s treasures launches Salcedo Auctions’ series of private art collections

FOR Edwin R. Bautista, the president and chief executive officer of UnionBank, anticipating the future is a priority. His job entails making decisions based on changing interest rates, economic growth, and the trajectory of banking amid the digital transformation.

But lining the hallways of his home and, more recently, in the exhibition space of Salcedo Auctions, is a vast array of battle-captured Philippine flags, indigenous and Katipunan-related armaments, and wood, ivory, and silver statues of saints made by local artisans — proof that he is just as concerned with the country’s past as he is with the future.

Among this varied collection is a trove of pre-colonial gold jewelry from Butuan and Samar, which are traces of a lavish lifestyle before the arrival of the Spaniards (and even before the concept of the Philippines arose). These particular objects of antiquity in the collection are prized, not just by Mr. Bautista, but by his wife Aileen, who beams with pride at the thought of Filipinos today realizing how rich their ancestors were.

The image many people have of an art or artefact collector is of a selfish greedy snob who cares mainly about the investment value of their possessions and the sense of prestige that comes with it. As passionate collectors, the Bautistas could not be further away from that caricature.

They like to share their collection with others. For example, many of the weapons in the collection were previously exhibited at the Museo ng Kaalamang Katutubo. This time, having them displayed at Salcedo Auctions in conjunction with the rest of the extensive Bautista collection is an overwhelming yet fascinating crash course in Philippine history.

Curated by director and art enthusiast Floy Quintos, the assortment of artefacts was organized to present many narratives of Filipino nationhood, as dense and varied as they are. It’s a big task that resulted in an exhibition that deserves to be seen by many beyond its one-weekend run at the start of September. For now, it has opened a Pandora’s box — with Salcedo Auctions taking on a new role, of unveiling private collectors’ prized possessions to the public.

“These are not just investments. These are about the learnings,” Mr. Bautista says, as he showed the guests his archive of rare maps hanging on the walls and tracing the emergence of the Philippines on the world stage from one old relic to another. Of great interest was a map from 1563, believed to be the first to mention the word “Filipinas,” hence regarded as the country’s birth certificate.

There was also ecclesiastical art, ranging from majestic santos to intricately painted retablos that represent Filipinos’ unwavering Catholic devotion. On the other hand, there was a subsection dedicated to anting-antings and mamarrachos, which are folk artefacts and icons that counter typical religious expressions with unorthodox portrayals of holy persons — a form of resistance by local artisans.

Seeing the creation of folk mythology at play was the highlight of that section, with talismanic flags, small amulets, and vests drawn over with hybrid gods and Latin phrases taking center stage. They give a glimpse of how revolutionary Filipinos mixed their own indigenous beliefs with elements of Catholicism.

Mrs. Bautista’s part of the collection exhibited splendor and told its own story, with wearables like necklaces, rings, headbands, and even death masks, all made of gold. While her husband has hunted for antiques since early adulthood, her interest in it developed gradually, starting with dismay at him bringing home so many relics to store in the house then later developing into love for pre-colonial craftsmanship.

For her, the gold jewelry symbolizes the wealth of the Filipino that existed long before the arrival of Europeans. “We were so rich in gold that we traded it with the Chinese for plates,” she tells everyone who marvels at their beauty.

Mr. Bautista’s small collection of swords and bladed weapons — just a few out of about a thousand which he donated to a local museum — is another example of important items long forgotten.

“These are rare because they were taken as war trophies by Spanish and American soldiers. I had to acquire them, to repatriate them, to be appreciated by Filipinos,” he says.

The exhibit of the Bautista collection is just the first of many in a series called “Private Art, Public Lives,” a new program of Salcedo Auctions’ gallery and exhibition arm. Through the series, many more private collectors will have the chance to give back by sharing what they have. This allows both the collectors and the exhibitors and curators to “breathe new life into old items and infuse them with meaning, so that more people may learn from them,” in Mrs. Bautista’s hopeful words.

The exhibition of their collection may have been too short-lived for this goal, as more than one visit would have been needed to give this fascinating myriad of objects the attention it deserved, but, as per Mr. Bautista, this is definitely not the last time that they will share a selection of their vast assortment of artefacts with the public.

“Once you see the underlying psyche, the soul of the Filipino, my conclusion is that, with all the external influences and manifestations, we have truly changed,” he said. “But we have still kept our soul as a nation.” — Brontë H. Lacsamana

First Gen takes first shipment of imported LNG, eyes second 

FIRSTGEN.COM.PH

By Revin Mikhael D. Ochave, Reporter

LOPEZ-led First Gen Corp. received the first delivery of imported liquefied natural gas (LNG) last month, said its president, who is now considering a second shipment.

“We’ve already imported the first shipment of LNG. It is already here. It came last month,” First Gen President and Chief Operating Officer Francis Giles B. Puno said in an interview on the sidelines of the Management Association of the Philippines’ International CEO Conference in Taguig City on Tuesday.

He said the shipment was meant for the commissioning of the company’s interim offshore LNG terminal project to ensure that “everything is working.”

“It will be to make sure that the system is working. It also shows that the fuel works with respect to the existing power plants. What is happening is that we are running on Malampaya gas and then we also have to run on LNG, or a combination of the two. That is the important part — commissioning,” he added. 

In July, First Gen said an LNG carrier would be in charge of transporting 154,500 cubic meters of LNG as well as the gassing up and cooling down of the BW Batangas floating storage regasification unit (FSRU) at Subic Bay before the cargo’s transfer into storage tanks on board.

The BW Batangas is the FSRU of First Gen unit FGEN LNG Corp. and BW LNG, its Norwegian partner. The vessel will provide LNG storage and regasification services to First Gen’s current and planned gas-fired power plants and third-party terminal users.

After the LNG transfer into the storage tanks, the BW Batangas will then return to FGEN LNG’s terminal in Batangas, thus completing the commissioning activities.

The imported LNG will be used to power First Gen’s natural gas plants — San Lorenzo, San Gabriel, Santa Rita and Avion — with a combined capacity of 2,017 megawatts.

The four gas-fired facilities, which supply a fifth of the country’s power requirements, depend on the Malampaya gas field situated offshore northwest Palawan, which has seen dwindling supply in the past few years.

LNG is touted as a solution to the country’s power needs amid a looming power crisis with the expected depletion of the Malampaya field, the country’s only indigenous source of natural gas.

According to Mr. Puno, First Gen has yet to secure a long-term contract for imported LNG supply. 

“None yet. At least, the international suppliers will be aware of First Gen,” he said.

Mr. Puno added that there is no timetable yet for securing a longer-term commitment, which he said would provide “cheaper power for consumers.”

“We are seeking to address that issue, a long-term contract,” he said. 

“We already bought the first shipment. Likely, we will buy a second shipment as well. It is not yet a long-term arrangement,” Mr. Puno said.

“The question is how we will transition from spot cargo to long-term. That will depend on the market if the market will accept the longer-term commitment,” he added.

Meanwhile, Mr. Puno said there is no update yet on the previously announced collaboration between First Gen and Prime Infrastructure Holdings, Inc. to develop a gas aggregation framework. 

“None yet. That is still a work in progress,” he said.

In July, First Gen said the gas aggregation framework seeks to “make it possible to blend currently declining volumes of indigenous Malampaya gas with imported LNG” as well as complement ongoing commercial development of new indigenous natural gas fields.”

On Tuesday, shares of First Gen dropped 14 centavos or 0.71% to close at P19.50 apiece.

Jon Santos and Jenny Jamora restage Bawat Bonggang Bagay

JON SANTOS

By Giselle P. Kasilag

A UBIQUITOUS Filipino dessert, comedian Jon Santos confessed to BusinessWorld, is at the top of his list of brilliant things. But to find out what it is, he is inviting everyone of come and see the restaging of Bawat Bonggang Bagay — the Filipino translation of Duncan Macmillan’s play Every Brilliant Thing.

Indeed, he has found himself indulging in that dessert as the opening night draws near. He is nervous but clearly very excited. And in the eyes of director Jenny Jamora, Mr. Santos is definitely ready. After all, one person on stage engaging an audience for over an hour is really what one would expect from a Jon Santos theatrical performance. His decades-long career as a stand-up comedian is exactly like that. But Bawat Bonggang Bagay is anything but a typical Jon Santos show. Indeed, play is not typical in any way at all.

Every Brilliant Thing is a one-person play featuring a narrator sharing childhood experiences coping with a parent’s depression and suicide attempts by listing “brilliant things.” It is an interactive production with members of the audience expected to participate in the show.

It was first staged in the Philippines by The Sandbox Collective in 2019 and again in 2020 with Teresa Herrera and Kakki Teodoro alternating as the lead character. The company brought it back a third time last June, with both actresses returning for the company’s first post COVID pandemic production. But they also offered a twist. A Filipino version premiered with Mr. Santos as the lead.

Ms. Jamora explained that The Sandbox Collective’s managing artistic director Toff De Venecia saw an opportunity to have the piece translated after receiving requests and encouragement from peers to do so. The material had already been translated to Hebrew, Mandarin, and Arabic. It made sense to come up with a Filipino version.

“It is written in the published version that the production should adapt it to where they are. Whatever can be done to bring the story closer to you, you can do. The safeguard is, they have to approve the translator,” she said in a mix of English and Filipino, adding that award-winning playwright Guelan Luarca was an easy choice for the translation, along with Mr. Santos whom she revealed was the first name to come up when casting was considered.

The process of taking the translated material and making it ready for the stage, however, was far from easy. Every tweak they make has repercussions on the time line and the character’s history. But the challenges were worth it.

“I am a native English speaker but, always, anything in Filipino speaks to something in the depths of my soul as a Filipino more immediately. So it’s the same with this material. There is a layer lost in the distance. My spirit came closer to the story all the more,” the director explained.

“The actors are my resource. In Every Brilliant Thing, they are alone. They are actor, set, chorus, ensemble, prop! So I parse out their strengths and work with that. For this shows, it’s like molding a piece of clay. I don’t try to hammer out just one form. So if you watch Teresa, it’s very different. If you watch Kakkie’s show, it’s very different. Jon is also very different,” she continued.

While the idea of a translated Every Brilliant Thing generated much excitement, receiving the script and performing it for the first time saw Mr. Santos digging deep into his theater roots.

“It is said that a manual on How to Act does not contain much. It’s just that each one of those few things, you have to learn hundreds of times over and over and over,” he said.

“You listen for that thing that stirs your inner crazy. You look and listen and you’ll find that there are things to see and hear from the character that would intrigue you. So, I find the connection with the character. So, I found it and I deepened it by consulting with my director for a character bible and music landscape. I [the character] have a birthday. I have a zodiac sign. In my head there are certain things that made my mom behave like that. And there were certain decisions my dad made that got that into that stalemate all these years. So there is that kind of world-building.”

He also found inspiration in films such as Little Miss Sunshine, Ordinary People, and Spoiler Alert. Music was equally important in setting the stage for the different moments of his character’s life. He drew heavily on different acting devices to help him create the character.

Indeed, the outcome was a happy surprise when the curtains rose on the first staging of Bawat Bonggang Bagay. The applause was deafening. Later on, a member of the audience approached Mr. Santos and told him that he felt he was seen. Many have shared that they have started their own lists of brilliant things.

“The purpose of the material is to talk about something that is usually difficult to talk about but in a more accessible and less dark way,” said Ms. Jamora. “That is why it is good too when you get the opportunity to use comedy as the device for a topic that is so severe, serious and heavy,” Mr. Santos chimed in.

They both recognize the vulnerability of the situation, both for the actor and the audience watching. Thus, they have taken great care in creating a safe space for all. Ms. Jamora credits The Sandbox Collective’s marketing and PR team for crafting appropriate content warnings and disseminating the information so that people watching are forewarned about the content. Truly, discussions about mental health have come a long way and these measures aid in encouraging conversations without fear or judgment.

“We hope that the play does not do more or less than it should,” said Mr. Santos.

Bawat Bonggang Bagay clearly resonated with the local audience, so much that it merited a restaging so soon. The job now is to continue exploring the character and the material.

“I want for the audience to come in as their authentic selves,” said Mr. Jamora, “and leave feeling more that they can be more themselves than they ever have been.”

Bawat Bonggang Bagay will run at the Zobel de Ayala Recital Hall, Maybank Performing Arts Theater, 9th Ave. cor. 26th St., BGC, Taguig City from Sept. 15 to 24. Tickets will be available through Ticketworld or through The Sandbox Collective at 0917-152-5560.

Maynilad allots P3 billion to upgrade 17 sewage treatment plants by 2027

MAYNILAD Water Services, Inc. is setting aside at least P3 billion to upgrade 17 of its existing 22 sewage treatment plants (STPs) by 2027 to conform to water and wastewater quality guidelines.

In an e-mailed media release, the west zone water concessionaire said it would add treatment processes “to enhance nutrient-removal capability” that will meet the revised effluent standards set by the Department of Environment and Natural Resources (DENR).

Under a department administrative order (DAO) released in 2021, the DENR updated the water quality guidelines for selected parameters based on the current classification of water bodies and their beneficial use.

Effluent standards have also been updated for selected parameters based on the perceived impact on the activities in the area and on the environment.

“By 2027, all 22 existing wastewater treatment plants in the West Zone — which have a combined treatment capacity of around 684,707 cubic meters of wastewater per day — will be upgraded to conform to DAO 2021-19 standards,” the company said.

Maynilad said its Parañaque water reclamation facility — currently its biggest STP in terms of volume output — is already compliant with DAO 2021-19 standards.

The new STPs that the company plans to construct will already have the upgrades factored in their treatment capacity design, it said.

Maynilad said the investment is part of its P178-billion wastewater management spending plan from 2023 to 2046, which aims to expand sewer coverage and manage pollution loading in bodies of water.

The plan also includes the construction of 18 new STPs in different areas and the installation of around 360 kilometers of new sewer lines that will carry used water from households to STPs.

The company maintains and operates 20 STPs, two joint sewage and septage treatment plants, and one septage treatment plant that processes wastewater and sludge collected from customers before it is discharged to receiving bodies of water.

Maynilad serves Manila, except for portions of San Andres and Sta. Ana, and operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Switching up orchestral music for Filipino audiences

The PPO’s new musical director will promote local composers

NEARLY a year after conducting a Philippine Philharmonic Orchestra (PPO) concert as part of the orchestra’s performance season — which also served as a search for a new musical director/conductor — Grzegorz Nowak found himself back in the country and in charge. And he has many plans.

The Cultural Center of the Philippines (CCP) announced early in September that Mr. Nowak had been selected to be the new music director and principal conductor of the country’s leading orchestra.

“I found that the orchestra members are very good and responsive,” Mr. Nowak said of his time last year conducting the PPO. “As I raised my demands in every rehearsal, they would meet the challenge. It is very encouraging,” the Polish conductor said at a press conference introducing him to the public. “I think this orchestra has tremendous potential.”

His experience with the music landscape in the Philippines is admittedly limited, but the time he spent in October of last year motivated him to return.

Mr. Nowak said he conducted his first ever piece of Filipino music — by National Artist Lucio San Pedro — last year during the PPO concert. That concert also featured works by Peter Illich Tchaikovsky and Igor Stravinsky.

“I surveyed many works and I loved it. I enjoyed performing here very much,” he said.

As a sought-after conductor with a long career in opera and concerts, Mr. Nowak previously served as the principal associate conductor of the Royal Philharmonic Orchestra in London. He was also the music director of the Polish National Opera in Warsaw, Poland.

Given all his experience, he specified that the Philippines must prioritize its own artists and musicians.

PROMOTING LOCAL COMPOSERS
One of Mr. Nowak’s first ideas is to promote Filipino composers. By commissioning more original works, the Cultural Center of the Philippines (CCP) and the PPO could encourage young aspiring composers to pursue their passions.

“Every year we can introduce the position of ‘composer in residence.’ This person can write three works during the season for our orchestra,” he told the media.

He said that supporting a home-grown composer is one of the most effective ways a country can empower its people. Mr. Nowak told reporters that this happened around the time of World War II, citing Soviet-era Russian composer Dmitri Shostakovich as an example, among others. “There was heavy oppression during and after the war. The people used writing, arts, music to produce works that no one could suppress, and that’s how they freed themselves from oppression,” he said.

The PPO’s new music director also proposed a modern music festival, which will present both music from all over the world and Filipino music. It could have a competition for young Filipino composers, where the winner can be given a chance to perform his or her work during the festival.

“We need to give the artists freedom to express what they want. We should not restrain them with our own ideas,” said Mr. Nowak.

THE FUTURE OF ORCHESTRAL MUSIC
Freedom to express, teamwork among musicians, and connection with the audience are the reasons live concerts remain as exhilarating as ever, said Mr. Nowak.

“Nowadays, we have many recordings, but a recording, no matter how great it is, will never replace the feeling and excitement of a live concert,” he said.

Always full of stories to tell, Mr. Nowak shared his experience working with Kathleen Battle, the American operatic soprano known for her distinctive vocal range and tone.

“In that concert, she started out tense but then you could feel she was warming up and relaxing, and then she was the queen of the night,” he told reporters. “The reaction of performers, the soloist, the conductor, the orchestra, is dependent very much on the audience.”

For this reason, he believes that all forms of live music — be it operatic or symphonic — can never die out. The challenge for the CCP and the PPO would be to turn Filipino audiences on to that exhilarating feeling.

As the PPO’s principal conductor, his goal is to make it the best team of musicians there is. He likened an orchestra of amazing individual musicians without teamwork to a team of star athletes without teamwork.

“This orchestra has the potential to become a very good team, and that’s what I’m here for — that we work together to make this wonderful team into one of the world’s top orchestras,” he said.

39TH CONCERT SEASON
The PPO’s 39th concert season, titled Switch, refers not just to Mr. Nowak being the new conductor at the helm, but also to the orchestra’s switch from its usual venue — the theaters of the CCP’s main building, which is now undergoing an extensive and prolonged renovation — to the Samsung Performing Arts Theater in Circuit, Makati.

The first concert of the season will be Roman Carnival, on Sept. 15, featuring guest pianist Mark Bebbington. The PPO will perform Hector Berlioz’ Roman Carnival, Edvard Grieg’s Piano Concerto, op. 16, A minor, and Ottorino Respighi’s Pini di Roma.

Oct. 13 will be Italian Night, with a program featuring a commissioned Filipino work, Antonin Dvořák’s Cello Concerto, and Felix Mendelssohn’s Symphony no. 4, op. 90. Cellist Wen-Sinn Yang will be there as a guest performer.

Mr. Nowak and the PPO will then pay homage to the great musicians of Russia in the Russian Masters concert on Nov. 17. The program will include Peter Ilich Tchaikovsky’s Eugene Onegin: Polonaise, Sergei Rachmaninoff’s Piano Concerto no. 2, op. 18, C minor, and selections from Serge Prokofiev’s Romeo & Juliet. Pianist Nikolay Khozyainov will be the guest performer.

To usher in the holiday spirit, Ode to Joy on Dec. 8 will see the PPO perform Wolfgang Amadeus Mozart’s Piano Concerto no. 21, K 467, C major and Ludwig van Beethoven’s Symphony no. 9, op. 125, D minor. Filipino pianist and former CCP president Raul Sunico will perform with the PPO.

For the first concert of the new year, the PPO will perform another commissioned Filipino work, plus Johannes Brahms’s Piano Concerto no. 1, op. 15, D minor and Peter Ilich Tchaikovsky’s Symphony no. 4, op. 36, F minor. The concert on Jan. 12 will be called Fate and feature pianist Jerome Rose as soloist.

Celebrity pianist Krystian Zimerman will then take center stage in Piano Rapture on Feb. 9. On that day, Mr. Nowak will also conduct the PPO on Stanislaw Moniuszko’s The Fairy Tale Overture, Beethoven’s Piano Concerto no. 4, op. 58, G major, and Rachmaninoff’s Symphony no. 2 op. 27.

Don Pasquale, the penultimate concert of the season, focuses on the magic of opera, with a semi-staged opera performance of Gaetano Donizetti’s Don Pasquale on March 8.

The PPO’s 39th season shall culminate with its eighth concert, Fete Francaise, on April 19. The orchestra will perform a commissioned Filipino work, Camille Saint-Saëns’ Introduction and Rondo capriccioso, op. 28 and Maurice Ravel’s Daphnis & Chloé, Suites 1 & 2. Violinist Diomedes Saraza will be the guest performer. — Brontë H. Lacsamana

ACEN forges new partnership for RE ventures in Indonesia

AYALA-LED ACEN Corp. said its subsidiary had agreed with Indonesian firm PT Dewata Megaenergi to look into possible renewable energy (RE) projects in Indonesia.

In a disclosure to the stock exchange on Tuesday, the company said its unit ACEN Indonesia Investment Holdings, Pte. Ltd. and PT Dewata Megaenergi signed a shareholders’ agreement on Sept. 8.

The two entities partnered to establish a joint venture platform named PT Dewata ACEN Renewables Indonesia that will “explore potential renewable energy projects within Indonesia.”

Earlier on Aug. 18, ACEN Indonesia’s agreement with another Indonesian firm PT Trisuya Mitra Bersama had been declared effective via a joint venture entity PT Puri Prakarsa Batam.

The partnership focuses on building large-scale solar power plants, battery energy storage systems, and green hydrogen projects in Indonesia.

Earlier this month, ACEN announced the partnership of another subsidiary ACEN Renewables International Pte. Ltd. with Singapore-based company Silverwolf Capital Ltd. to pursue solar projects in Taiwan through a joint venture platform called ACEN-Silverwolf Pte. Ltd.

ACEN is also targeting to build solar projects with a minimum operational capacity of 1,000 megawatts (MW) in Asia through its partnership with German solar developer ib vogt (Singapore) Pte. Ltd.

The joint venture involves shovel-ready projects in Bangladesh, Laos, Cambodia, Vietnam, Indonesia, Malaysia, and other countries in the Asia-Pacific region.

Last week, ACEN said it had raised P25 billion by issuing perpetual preferred shares, which is the first tranche of the company’s shelf registration of up to 50 million preferred shares. The funds are expected to hasten the company’s renewable energy expansion.

ACEN currently has around 4,200 MW of attributable capacity encompassing the Philippines, Vietnam, Indonesia, India, and Australia. It aims to expand its renewables portfolio to 20 gigawatts by 2030.

At the local bourse on Tuesday, shares of the company went down by 19 centavos or 3.87% to close at P4.72 each. — Sheldeen Joy Talavera

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