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Bad Bunny’s Un Verano Sin Ti wins IFPI 2022 Global Album Award

ALBUM cover of Bad Bunny’s Un Verano Sin Ti
ALBUM cover of Bad Bunny’s Un Verano Sin Ti

LONDON — Puerto Rican singer and rapper Bad Bunny took the 2022 IFPI Global Album Award for Un Verano Sin Ti on Friday, becoming the first Latin American artist to win a Global Chart Award from the recorded music industry representative body.

The all-Spanish, 23-track Un Verano Sin Ti was released in May to critical acclaim and topped the Billboard 200 album chart for 13 weeks. It was the first Spanish-language record to be nominated for the coveted album of the year prize at this month’s Grammy Awards. It won the award for best música urbana album.

“We are incredibly excited to award Bad Bunny, the first Latin American artist to win an IFPI Global Award, with the Album of the Year Award,” IFPI Chief Executive Frances Moore said in a statement.

“His unique sound, encapsulated in his award-winning album Un Verano Sin Ti, has captured the world’s attention on a remarkable scale over the last 12 months.”

Taylor Swift’s album Midnights was No. 2 on the IFPI chart, two days after the music star took IFPI’s 2022 Global Recording Artist of the Year Award, the third time she has won the prize.

British singer Harry Styles’ Harry’s House charted at No. 3. On Thursday, Styles won the IFPI Global Single of the Year Award 2022 for his hit “As It Was.” — Reuters

Peso drops vs dollar on rate hike worries

BW FILE PHOTO

THE PESO weakened to a near two-month low against the dollar on Monday after the release of US personal consumption expenditures (PCE) inflation data, which bolstered expectations of more rate hikes from the US Federal Reserve.

The local currency closed at P55.51 versus the greenback on Monday, down by 64 centavos from Thursday’s P54.87 finish, data from the Bankers Association of the Philippines showed.

This was the peso’s worst close since it finished at P55.64 on Jan. 6.

The peso opened Monday’s trading session sharply weaker at P55.25 per dollar. It posted an intraday best of P55, while its worst showing was at P55.64 against the greenback.

Dollars traded went up to $1.33 billion on Monday from $1.109 billion on Thursday.

The peso weakened after higher-than-expected US PCE price index data and hawkish signals from Fed officials, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso depreciated significantly from heightened expectations of more US rate hikes following the surprise acceleration in the Fed’s preferred inflation gauge,” a trader said in an e-mail.

The US PCE price index shot up 0.6% last month after gaining 0.2% in December, according to data released on Friday.

Cleveland Fed President J. Loretta Mester, St. Louis Fed President James Bullard, Boston Fed President Susan M. Collins, and Fed Governor Christopher J. Waller last week all said they would support more rate hikes to tame inflation.

The Fed hiked its target interest rate by 25 basis points (bps) at its Jan. 31 to Feb. 1 meeting to a range between 4.5% and 4.75%, bringing total increases since March 2022 to 450 bps.

The US central bank’s next policy meeting is on March 21-22.

Mr. Ricafort added that the stronger US dollar also pulled down the local currency.

The dollar index, which measures the US currency against six major peers, was at 105.17, just below the seven-week peak of 105.32 it touched on Friday after hotter-than-expected US data, Reuters reported. The index is up 3% for February and set to snap a four-month losing streak.

For Tuesday, the trader said the peso could rebound on expectations of a weaker US durable goods report overnight.

The trader expects the peso to trade between P55.35 and P55.60 against the greenback on Tuesday, while Mr. Ricafort gave a forecast range of P55.40 to P55.60. — A.M.C. Sy with Reuters

Stocks decline as strong US data fuel Fed worries

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PHILIPPINE SHARES dropped on Monday to track Wall Street’s decline after the US personal consumption expenditures (PCE) price index rose in January, fanning bets of more rate hikes from the US Federal Reserve.

The benchmark Philippine Stock Exchange index (PSEi) declined by 86.56 points or 1.29% to close at 6,599.34 on Monday, while the broader all shares index went down by 39.95 points or 1.11% to end at 3,532.25.

“The local bourse plummeted following the surprising acceleration in US core PCE inflation, which was reported last Friday and stirred up concerns regarding Fed rates,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

“Philippine stocks fell after Wall Street had its worst week of the year last week after the personal consumption expenditures price index showed a stronger-than-expected increase in prices in January and burgeoning rumors that the Federal Reserve will raise borrowing costs a few more times,” Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said in a Viber message.

Wall Street’s main indexes posted their biggest weekly drop of 2023 after sharp losses on Friday, as investors braced for the possibility of more aggressive rate hikes from the US Federal Reserve as economic data pointed to resilient consumers, Reuters reported.

Data on Friday showed the PCE price index, the Fed’s preferred inflation gauge, shot up 0.6% last month after gaining just 0.2% in December. Consumer spending, which accounts for more than two-thirds of US economic activity, jumped 1.8% last month, exceeding forecasts for a 1.3% rise.

“At home, our BSP (Bangko Sentral ng Pilipinas) governor is still seeing another rate hike by at least 25 bps (basis points),” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

BSP Governor Felipe M. Medalla last week said they could hike borrowing costs at their meeting on March 23, adding that a smaller 25-bp move is the “most likely” option amid signs of slower inflation in February.

The BSP hiked rates by 50 bps for a second straight meeting on Feb. 16 to tame inflation.

Almost all sectoral indices closed lower on Monday. Services went down by 57.95 points or 3.46% to 1,614.55; mining and oil dropped by 353.68 points or 3.2% to 10,687.74; property declined by 44.81 points or 1.55% to 2,840.95; industrials fell by 134.20 points or 1.39% to 9,500.58; and holding firms lost 60.66 points or 0.94% to end at 6,391.34.

Meanwhile, financials gained 4.94 points or 0.27% to close at 1,802.20.

Value turnover went up to P7.5 billion on Monday with 893.23 million shares changing hands from the P4.35 billion with 932.40 million issues traded on Thursday.

Decliners outnumbered advancers, 149 versus 55, while 34 names closed unchanged.

Net foreign selling rose to P736.06 million on Monday from P712.96 million on Thursday.

Both Timson Securities’ Mr. Lood and AP Securities’ Mr. Temporal placed the PSEi’s support at 6,500 and resistance at 6,800. — A.E.O. Jose with Reuters

Philippines told to broker more security deals to deter China

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THE DEPARTMENT of Foreign Affairs (DFA) should broker updated security deals with more security allies to defend the Philippines from China’s aggression in the South China Sea, a senator said on Monday.

“We have to exhaust all possible ways to defend the Philippines from China’s shameless actions,” Senator Ana Theresia N. Hontiveros-Baraquel said in a statement.

“A security agreement can serve as a defensive framework that would provide for joint patrols and training of our troops so we are prepared to work as part of a team should tensions escalate,” she added.

Ms. Hontiveros said the Philippines should not only depend on its Mutual Defense Treaty with the United States when dealing with Chinese aggression in South China Sea.

The Philippines and US earlier discussed a plan to hold joint coast guard patrols in the South China Sea.

The Philippines has also given the US access to more military bases under their Enhanced Defense Cooperation Agreement.

“The Philippines continues to protest China’s persistent and illegal presence in Philippine waters, including those near Ayungin Shoal,”  Philippine Foreign Affairs spokesperson Ma. Teresita C. Daza told reporters via WhatsApp, reacting to the senator’s statement.

She said the Philippines has filed 77 protests against Chinese violations under President Ferdinand R. Marcos, 10 of which were filed this year.

This month, the Philippines filed a diplomatic protest against China as it accused its coast guard of endangering the crew of a Philippine resupply ship by pointing a military-grade laser at it on Feb. 6.

Beijing has said its coast guard had used a handheld laser to provide signal directions and ensure navigational safety.

China has rejected a 2016 United Nations-backed tribunal’s ruling that voided its claim to more than 80% of the South China Sea based on a 1940s map.

The Hague-based Permanent Court of Arbitration upheld Philippine rights to its exclusive economic zone within the waterway.

Foreign Affairs Secretary Enrique A. Manalo earlier urged the United Nations to ensure that its convention on the law of the sea is upheld by China and other neighboring states.

The UN should hold more discussions on the South China Sea to create awareness, he told a security conference in Munich, Germany this month.

“Besides creating awareness, we in the Philippines also have to lead in taking tangible steps that can urgently help our citizens who are directly affected by China’s aggression,” Ms. Hontiveros said.

Security analysts earlier said tensions between the US and China could worsen in the Indo-Pacific region this year as Washington holds its biggest joint military drills with the Philippines since 2015.

The two superpowers are expected to use their economic and cultural platforms to gain influence in the region, which has been beset by the South China Sea dispute and tensions between China and self-ruled Taiwan, they said.

Mr. Marcos visited New York last year for the United Nations General Assembly, where he called for a rule-based order in the South China Sea, which is being claimed by China almost in its entirety.  

On the sidelines of the United Nations event, Mr. Marcos met with US President Joseph R. Biden.

THREE-WAY PACT
Last month, the Philippine leader met with his Chinese counterpart in Beijing, with Xi Jinping promising to find a solution to avoid tensions at sea. The two leaders signed bilateral deals covering agriculture, energy, maritime security and tourism.

Despite the Philippine-China talks, conflicts have persisted.

Aside from boosting ties with the US, Mr. Marcos has also expressed interest in a three-way defense pact with the US and Japan, which are seen as major obstacles to China’s global ambitions.

The Philippines and Australia plan to hold joint patrols in the South China Sea, Australian Deputy Prime Minister and Defense chief Richard Marles told a news briefing in Manila with Philippine Defense Secretary Carlito G. Galvez, Jr. last week.

“We did talk today about the possibility of exploring joint patrols and we will continue that work and we hope that comes to fruition soon,” he said.

“As countries which are committed to the global rules-based order, it is natural that we should think about ways in which we can cooperate in this respect,” he added. 

In November, Mr. Marcos and Australian Prime Minister Anthony Albanese committed to elevate the two countries’ relationship to a strategic partnership.

Mr. Galvez told the briefing counter-terrorism and maritime security remain the “core pillars” of Philippine-Australia defense relations. He said they agreed to continue working together to maintain a “free, open and secure” Indo-Pacific Region.

The United States, a major security ally of both the Philippines and Australia, has continued to challenge China’s influence in the region.

Mr. Galvez said both the Philippines and Australia recognize the importance of collaboration between like-minded security partners to ensure nations “could freely exercise their sovereign rights” in the region while “pursuing stability and prosperity.”

He said the Philippine Navy and Air Force would boost cooperation with their Australian counterparts.

The Philippines and Australia are set to establish a regular defense ministerial meeting. Mr. Galvez said he would meet with Mr. Marles in Australia to explore joint patrols and training between their armed forces.

Mr. Marles said later this year, the two countries would sign a strategic partnership deal  “which comes on top of the first meeting” between Mr. Marcos and Mr. Albanese last year.

He said Australia would boost its Indo-Pacific endeavor with more naval components, with the Philippines being a central component of it. — John Victor D. Ordoñez

House body OK’s Cha-cha through hybrid con-con

THE INAUGURAL session of the Constitutional Commission of 1986 — OFFICIALGAZETTE.GOV.PH

A HOUSE of Representatives body on Monday passed a measure detailing the procedures for Charter change (Cha-cha) through a hybrid constitutional convention (con-con).

Under a substitute bill approved by the committee on constitutional amendments, convention members who will propose changes to the 1987 Constitution will both be elected and appointed and will be paid P10,000 a day.

Assistant Minority Leader and Party-list Rep. Arlene D. Brosas, one of the lawmakers who voted no to the bill, criticized the compensation. “This is almost equal to the monthly minimum wage of workers,” she said.

The delegates must be “of recognized probity, independence, nationalism and patriotism” and are people “of national standing, with recognized knowledge and competence in the Constitution.”

They must also have a deep understanding of the state and its workings, according to the bill.

A fifth of the convention members will be sectoral representatives, while there will be a delegate from each legislative district.

The election of delegates for the convention will be held on Oct. 30, the same date as the village and youth council elections. 

The Senate president and Speaker will appoint delegates who are retired members of the Judiciary, lawyers, academicians and economists.

There will also be representatives from the medical and science and technology profession, labor, business, urban poor and farmers and fisherfolk sectors. 

Representatives from indigenous cultural communities, women, youth, veterans, senior citizens, persons with disabilities and other sectors will also be represented.

To qualify as a delegate, a person must be a natural-born Filipino citizen, at least 25 years old and has a college degree, except for poor delegates. They must also be a registered voter. Ex-convicts are disqualified.

The convention will run for seven months and 13 days, from Nov. 21 to June 30, 2024.

Delegates will get a P10,000 daily salary and will be entitled to travel allowance.

The government needs P9.5 billion to amend the Charter, Cagayan de Oro Rep. Rufus B. Rodriguez told a hearing last week after talking to election officials. The election of delegates will cost P1.5 billion if done simultaneously with village elections, while the budget for the convention itself will cost P5 billion. The plebiscite will cost P3 billion.

The bill will be referred to the committee on appropriations to finalize the budget.

Ms. Brosas earlier said amending the Constitution would not directly solve the problems of Filipinos, including spiraling food prices. — Beatriz Marie D. Cruz

Marcos touts state-assisted stores ‘solution’ to food crisis

PHILSTAR/KRIZ JOHN ROSALES

THE MARCOS administration considers its effort of setting up more farm-to-consumer stores in the country as a means towards food security and addressing rising costs.  

“This is our response to the food crisis and the increasing prices of goods,” President Ferdinand R. Marcos, Jr. said in Filipino at the launch of the so-called Kadiwa program in the central Philippine province of Cebu.  

“We will continue this to ease the burden of our countrymen.”  

He said the government will establish more stalls, especially in areas where residents struggle with the rising costs of food.   

“We will continue to do this, increase and improve,” he said.   

The Kadiwa program facilitates a farm-to-market supply chain, with pop-up shops selling agricultural products as well as other locally manufactured goods at relatively low prices since the state shoulders costs for transportation and other expenses.  

Earlier this month, the Department of Agriculture announced a plan to install Kadiwa retail stores in select Metro Manila dry and wet markets within the first quarter.  

Mr. Marcos said there are already more than 500 state-assisted stalls across the country.  

Inflation hit a fresh 14-year high of 8.7% in January, accelerating from 8.1% in December as food prices soared amid supply issues.   

Onion — a basic ingredient in Philippine dishes — was among the agricultural products whose price became unaffordable for many Filipinos.   

The price of onion, which hit as much as P700 per kilo in December, has prompted the government to revise retail price suggestions for the food staple and launch a campaign against alleged smugglers. 

National Economic and Development Authority Secretary Arsenio M. Balisacan said earlier this month that Philippine inflation may start to plateau starting March as food supply is expected to improve due to the start of harvest season and absence of typhoons so far this year.  

HOUSING
Also on Monday, Mr. Marcos called for a multisectoral approach to accomplish his administration’s goal of building six million housing units until 2028 to address the country’s backlog. 

He made the call as he led the inauguration of a 25-hectare housing project for residents of a coastal community in Cebu City.  

“This will not be successful if our national government and local government don’t collaborate, work together, and join forces,” he said in a speech, adding that lawmakers as well as the private sector have important roles in the government’s housing program.  

He said he is coordinating with Congress to ensure that the monthly amortization of the housing projects would be affordable, noting that the program is intended to help minimum wage earners, informal settlers, and other vulnerable sectors.  

He also asked authorities to ensure that housing units are built to withstand extreme weather events and other natural calamities.  

Last month, the president asked legislators to allot funding that would help people pay interest on government housing units.  

Public housing is the only solution to informal settlements, Mr. Marcos told reporters on the sidelines of his trip to Cebu.  

“There is really no other way to solve that problem.”  

The President said his administration is evaluating a possible flexible and deferred payment system for housing beneficiaries. — Kyle Aristophere T. Atienza 

Transport chief calls for dialogue before planned strike next week

PHILIPPINE STAR/RUSSEL PALMA

TRANSPORTATION Secretary Jaime J. Bautista on Monday appealed for a dialogue with transport groups before their planned strike starting March 6 to protest the government’s public utility vehicle (PUV) modernization program.  

“I think we should think hard first before stopping operations. We should have a dialogue first,” Mr. Bautista said in Filipino in a video interview with Presidential Communications Office Secretary Cheloy Velicaria-Garafil.  

“Let’s understand what the issues are, because we might not be understanding each other,” the chief of the Department of Transportation (DoTr) said in mixed English and Filipino.  

Mr. Bautista proposed a dialogue with representatives from transport operators, the DoTr, and the Land Transportation Franchising and Regulatory Board (LTFRB).  

He noted that representatives from the DoTr were not able to attend previous discussions between transport operators and the LTFRB to clarify issues about the program.  

“So, I have already instructed the undersecretary for road sector to coordinate with the LTFRB and with the operators,” Mr. Bautista added.  

Last week, the LTFRB issued Memorandum Circular 2023-013 which allowed the provisional authority of PUVs to be extended until Dec. 31, as long as the individual operators are able to join an existing consolidated entity such as a cooperative on or before June 30.  

Public transport drivers and operators have been resisting the modernization program, citing the cost of new vehicles. Operators who fail to consolidate by June 30 will lose their provisional authority.   

Meanwhile, Mr. Bautista clarified that there would be no phase out of old PUV units in areas where groups could not immediately acquire new units for their designated routes.  

He said that the government will provide ample time for the transition with consideration on external factors such as the availability of vehicle supply. — Justine Irish D. Tabile 

Salceda tells gov’t to subsidize cooperatives for jeepneys, vans 

BW FILE PHOTO

A SOLON on Monday called on the government to subsidize public transport cooperatives, particularly for jeepneys and vans, to help drivers and operators cope with the transition to modern vehicles.   

Albay Rep. Jose Ma. Clemente S. Salceda opposed the scheduled phaseout of public utility jeepneys (PUJs) and vans by June 30 “without government providing concrete assistance to help PUJs cooperativize or to provide ample seed funding for their cooperatives.” 

He said the policy is “cruel and inhumane.”

The Land Transportation Franchising and Regulatory Board (LTFRB) announced last week that it has already moved the phaseout schedule to end-December, provided that PUJ and van operators or owners join an existing group or cooperative.  

Operators who fail to consolidate by June 30 will lose their provisional authority and their vehicles will no longer be allowed to ply designated routes.    

LTFRB said the consolidation, a part of the Public Utility Vehicle Modernization program, aims to bring together single operators and drivers as one legal entity to help facilitate the transition to modern transport units.  

The transition will require financing for modern vehicles as well as training and other alternative livelihood options for affected drivers and operators.    

The Department of Transportation’s (DoTr) proposed P788-million allocation under the 2023 budget for the modernization program was scrapped from the approved expenditure program.  

Mr. Salceda said the DoTr and the LTFRB should delegate the transition to modernized transport to local government units (LGUs).  

“We should work with local governments… so that LGU-led cooperatives or corporations can run the routes instead, with the displaced PUV (public utility vehicle) drivers are regular employees,” Mr. Salceda said.   

Transport groups announced on Monday that they will be conducting a one-week strike beginning March 6 to protest the jeepney modernization program. — Beatriz Marie D. Cruz

Manila rep wants MMDA abolished

PHILIPPINE STAR/ RUSSEL PALMA

A MANILA City representative wants to abolish the Metro Manila Development Authority (MMDA), citing that its functions could just be carried out by national agencies and local governments.

During the House’s plenary session on Monday, Manila Rep. Joel R. Chua lambasted the MMDA and called it “disruptive.”

“This is proven by the often demolitions, sidewalk clearing, and towing operations of the MMDA that aren’t coordinated with the barangay, city hall, municipality, and police,” Mr. Chua said.

He also cited reports from state auditors indicating that the MMDA failed to complete 20 out of 39 flood control projects in 2021.

He also said the MMDA sometimes contradicts the rules of other agencies and local governments.

“Respect is mandatory. MMDA has been disrespecting agencies and local governments and their individual laws,” he said.

He also pointed out that the MMDA does not have legislative or police powers, contrary to its actions.

Quezon City Rep. Franz S. Pumaren supported Mr. Chua’s call, saying, “There are incidents wherein cars are parked for a short time, but they’re suddenly towed (by the MMDA). What is this? Do they have a quota in catching vehicles?”

Mr. Chua suggested to retain the Metro Manila Council, the governing board and policy making body of the MMDA composed of 17 mayors and district representatives in the capital region. Mr. Chua is a member of the council.

He said that the council should be placed under the Department of Interior and Local Government, with its office to be composed of 50 employees.

“Instead of a big office like the MMDA that the Congress funds more than P5 billion yearly and P4 billion from other fund sources, the council and its secretariat will only need P100 million (to operate),” Mr. Chua said.

He noted the MMDA’s increasing manpower with 9,767 personnel in 2021 from 6,812 in 2011.

He also said that dissolving the MMDA is in line with President Ferdinand R. Marcos Jr.’s call to rightsize the bureaucracy.

The MMDA has not replied to messages and emails seeking comment. — Beatriz Marie D. Cruz

PCC sees onion ‘cartel’ probe done in 2-3 months

PHILSTAR FILE PHOTO

AN ongoing investigation into a possible onion cartel could be completed within two or three months, according to the new chairman of the Philippine Competition Commission (PCC).

“If it leads to nowhere, then there’s no use prolonging it. But if the evidence is there, and I believe they (will be) able to find evidence, then it should be done within the next two or three months,” Michael G. Aguinaldo said in a news conference in Quezon City on Monday.

“The investigation is ongoing. There are no firm results yet because they’re still gathering a lot of information. The hearings in the Congress have provided also a great deal of information and so, our enforcement office is actually looking into it,” he added.

The competition regulator said on Feb. 16 that it is looking into whether the alleged onion cartel is behind the surge in prices, which it said hit a high of P600 per kilogram in December.

According to Mr. Aguinaldo, the challenge for the PCC is to prove the existence of anti-competitive agreements causing onion prices to rise.

He added that there was a lack of physical evidence in the cold storage facilities examined by the PCC.

“The challenge when you talk about cartels or anti-competitive agreements like this (is that) it’s quite difficult to prove because (of the need) to prove an agreement actually exists among major players and usually you won’t find anything like that in writing,” Mr. Aguinaldo said.

The PCC also provided updates on the refund process of transport network company Grab Philippines.

Lianne Ivy P. Medina, PCC officer-in-charge director for mergers and acquisitions office, said that the PCC is now studying the possibility of imposing another fine on Grab for being unable to provide the full amount to riders.

“The commission is now considering whether or not the circumstances or the reasons for which those refunds were not actually fully paid to the consumers would merit another fine to be imposed on Grab,” Ms. Medina said.

“The PCC found that Grab has not yet fully refunded all of the amount that they were supposed to have given to the riders,” she added.

However, Ms. Medina said that it does not necessarily mean that Grab Philippines is non-compliant on the refund.

“I would not say that it’s non-compliance (on the refund), but there was a defect in the way they complied such that a portion of the amount that they should have refunded was not fully refunded to the consumers,” she added.

According to Mr. Aguinaldo, Grab Philippines has refunded 70% of the amount but has yet to give back the remaining 30%, amounting P5 to P6 million.

The PCC ordered Grab to issue refunds to riders amounting to P5.05 million in November 2019, P14.15 million in December 2019, and P6.25 million in October 2020, totaling P25.45 million, due to breaches of the transportation firm’s price monitoring commitment.

The PCC imposed a P63.7-million penalty on Grab in 2018 for violating its price and service quality commitments.

In March, the PCC said only 24.1% of the total refunds have been claimed as of June 2021.

“There are portions that they cannot comply with and they’ve given reasons for it. So now, before the commission, that issue is now being brought up,” Mr. Aguinaldo said.

Grab Philippines has said that it cannot issue refunds where passengers did not complete the know-your-customer requirements, or undergo the identity verification process.

The transport firm added that it is “fully committed to complying with its undertakings and commitments with the PCC, and doing right by its stakeholders — especially its millions of users.”

Separately, Mr. Aguinaldo said that the PCC’s priority industries for 2023 include e-commerce and digital platforms, health and pharmaceuticals, energy and electricity, insurance, water, construction, telecommunications, food and agriculture.

In an e-mail, the PCC said that it has 16 active cases in the investigation stage, of which five have been made public. The five cases involve the industries of power, cement, shipping, telecommunication interconnection, and internet service provider (ISP) services in connection with property development.

A decision has been reached on the ISP case but it has yet to be released, it said.

It added that four are in the litigation stage or for decision by the Commission sitting en banc.

These cases involve the insurance, trade association, tourism, and medical services industries. — Revin Mikhael D. Ochave

Cebu BRT signals more ‘innovative’ transport solutions, Marcos says

PHILSTAR FILE PHOTO

PRESIDENT Ferdinand R. Marcos, Jr. said on Monday that the bus rapid transit (BRT) which he broke ground on in Cebu will herald more “innovative” transport solutions intended to boost economic activity.

He made the remarks at the groundbreaking of the first package of Cebu’s P16.307-billion BRT.

“Rest assured that the National Government remains committed to improving economic activities in the many parts of our country through the introduction of innovative solutions to public transport and the improvement of mobility infrastructure, among others,” Mr. Marcos said in a speech.

“My administration resolutely supports you in exploring ways to improve our public transport systems and in forging partnerships that will help the Philippines keep up with the innovative interventions of other progressive countries.”

Mr. Marcos urged the Department of Transportation (DoTr) to finish the Cebu Bus Rapid Transit project, which is being funded by the World Bank and French Development Agency, on time.

“I also want to take this opportunity (to call on) the DoTr and other stakeholders to finish this project within the target completion timeline,” he said. “I think if we in fact start operations in December, that will be the best possible Christmas gift that we can give to Cebu.”

The ceremony kicked off the civil works for the four stations under Package I of the project, which involves the construction of a 2.38-kilometer segregated bus lane with four bus stations, the Palace said.

It also involves the construction of a 1.15-kilometer pedestrian walkway, which will link the system to the port of Cebu.

Package I, which costs almost P1 billion, was awarded to the Chinese contractor Hunan Road and Bridge Construction Group Co. Ltd. in November.

Mr. Marcos urged the DoTr “to ensure the just compensation of the property owners who will be affected by the CBRT project.”

The bus rapid transit project will “support economic development through travel time savings, environmental improvements, and reduction of accidents among residents and visitors,” he said.

The project is modeled after the BRT systems in Bogota, Colombia, Curitiba, Brazil, Seoul, South Korea, and Guangzhou, China.

The 13.18-kilometer project “will not only reduce travel time between Cebu’s north and south districts but also boost economic productivity in various communities through the efficient mobility of passengers, goods, and services,” Transport Secretary Jaime J. Bautista said in a speech.

“The project likewise promises to provide better job security and working conditions for the PUV drivers and reduce vehicle and pedestrian accidents,” he added.

The project consists of three packages, and can accommodate 83 12-meter buses by its opening year.

It is expected to be fully operational by the second quarter of 2025, Mr. Bautista said. It can accommodate as many as 160,000 passengers a day, he added.

The BRT “took 20 years before the project became a reality,” the Palace said. — Kyle Aristophere T. Atienza

Senate raises questions over Maharlika foreign board membership

PHILSTAR FILE PHOTO

OBJECTIONS were registered in the Senate on Monday to foreign board representation in the proposed Maharlika Investment Fund (MIF), though a Treasury official said foreign representation on the board is unlikely.

Senator Maria Lourdes Nancy S. Binay told the banking committee, which is assessing a bill that will establish up the fund, that legislation should be clear about foreign ownership in the Maharlika Investment Corp. (MIC).

“Why don’t we just specify that no foreign entity can be part of the board regardless of investment and make the composition of board members less vague?” she said at the hearing.

She said that if the bill establishing the fund is approved, the MIF’s implementing rules and regulations should explicitly set limits on foreign ownership.

National Treasurer Rosalia V. de Leon said at the hearing that if the bill passes, the Maharlika Investment Corp. will be set up as a government-owned and -controlled corporation (GOCC), which will have a cap on how much foreign entities can invest in the fund.

“Because of the limits that would be imposed on foreign investors, they would not be represented on the board,” she said.

She added that the company managing the MIF would also be subject to regular audits by the Commission on Audit.

Ms. Binay also floated the National Development Co. (NDC) as an alternative to the MIF.

NDC General Manager Antonio D. Mauricio told the hearing that the NDC could complement the proposed sovereign wealth fund by bringing in smaller-scale investments.

He clarified that the NDC is a GOCC completely owned by the government but handles subsidiaries that have foreign investors within the 40% limit.

“The Maharlika Investment Fund can hit the ground running with our help,” Mr. Mauricio said.

Earlier this month, President Ferdinand R. Marcos, Jr. said that three Japanese private firms made commitments to invest in the proposed MIF.

At the same hearing, Senator Ana Theresia N. Hontiveros-Baraquel asked representatives from the Bangko Sentral ng Pilipinas (BSP) if they were willing to delay the timing of the bank’s capital buildup to P200 billion to fund Maharlika.

“BSP can afford to provide dividends to the MIF temporarily for two years based on the recent five years of income incurred by the bank,” Iluminada T. Sicat, BSP senior assistant governor, said at the same hearing.

At a Feb. 15 hearing, BSP Deputy Governor Francisco G. Dakila, Jr. said that the central bank could take 14 years to reach its target capitalization if it is designated the main source of the MIF’s capital.

Meanwhile, Philippine Stock Exchange Chief Executive Officer Ramon S. Monzon said the fund’s profits should be re-invested in long-term projects.

“This will defeat the objectives of growing the fund to a size sufficient to build intergenerational wealth,” he said.

Mr. Monzon proposed that at least 25% of the profits of the MIC be directly used for the government’s poverty and social welfare programs, excluding infrastructure projects.

In a position paper presented before the Senate committee, the PSE said the MIF could address the Philippines’ major infrastructure gaps and enhance the government’s delivery of basic services.

“We believe that now is an opportune time to establish the fund if we want to see and reap the exponential benefits of major infrastructure improvements and the country’s economic transformation,” it said. — John Victor D. Ordoñez

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