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No to return of bus chaos on EDSA

PHILIPPINE STAR/MIGUEL DE GUZMAN

The Management Association of the Philippines (MAP) commends the Metro Manila Development Authority (MMDA) for upholding the retention of the new EDSA busway system — thus continually improving bus traffic flow in this busiest major thoroughfare — and rejecting the proposal of bus operators to revert to the discarded practice of using two yellow bus lanes at the curbside for 3,000 bus units to resume operations.

The MAP likewise strongly opposes the proposal of bus operators for the simple reason that for the past three years, it has been demonstrated that the EDSA busway and bus carousel line system is a far superior public bus transport system because it was able to carry a one-day peak load of 454,649 passengers on Dec. 27, 2022 using no more than 550 bus units running on just one innermost busway lane with more spare system capacity to meet higher demand. Capital expenditures, excluding cost of rolling stock, by the National Government was only about P500 million, which translates to the lowest capital cost-to-passenger ratio among transit systems.

Although still a work in progress, other remarkable performances of the Busway were achieved. The average daily busway ridership reached 380,378 during the heavy Christmas season in December. Total ridership reached 154,100,856 from June 2020 to December 2022. Drivers are more disciplined, and they stop only at bus stations and do not linger there. Commuters’ travel time was reduced, allowing them to be more productive at work and enjoy quality time with their families. The Busway has also facilitated travel for ambulances and emergency vehicles. This high performance was achieved due to the higher efficiency of the inner lane busway as a people mover.

In sharp contrast, the discarded and highly inefficient two yellow curbside (outermost) lanes bus system gained worldwide notoriety as more than 3,000 buses jammed EDSA bumper to bumper, while hapless passengers and other commuters suffered long commuting hours and massive volumes of noxious exhaust fumes that polluted the air. The drivers were impervious to discipline. Buses loaded and unloaded anywhere with impunity, weaving in and out of lanes in chaotic fashion. Reverting to the failed yellow bus lane system will be grossly detrimental to commuters, to bus operators themselves and to the economy. Opportunity losses from traffic congestion may likely gallop way past the previously estimated P3.5 billion daily.  

The main reason for the failure of the yellow bus lanes was their location in the outermost lanes. Being traffic conflict lanes, they are not ideal for bus mass transit in high density urban corridors because bus traffic flow was prone to interruption by vehicles exiting and entering the corridor from the many side streets. Access control to the curbside lanes was not possible and nonaccredited buses easily entered to bloat the bus fleet.

On the other hand, the inner lane busway was introduced abroad more than 50 years ago as a better alternative to curbside bus lanes. Busways have globally accepted standards and best practices, and chief among them is the alignment of the busway at the inner lane away from the traffic conflict curbside. Another is they must be dedicated to the exclusive use of public buses with no mixed traffic allowed. These are nondiscretionary features of the tried and tested system. It was precisely for these reasons that the busway was persistently advocated by the MAP transport reform advocates starting in 2015 as the ideal replacement for the yellow bus lanes. 

Exercising strong political will, the Department of Transportation (DoTr) introduced the new EDSA busway at the innermost lanes. As a complementary measure, the Bus carousel line, developed by the DoTr Land Sector Team in consultation with bus operators, was introduced to operate on the busway with 550 maximum bus units. This transformational change introduced in June 2020 ushered in a new normal on EDSA, providing a sustainable commuter-friendly alternative bus system that is unimpeded by traffic, under rain-or-shine conditions and with less air pollution.

The consortium of bus operators now seeks to undo this structural public bus transit reform despite the benefits already shown.

We earnestly urge the DoTr to stay the course and expedite the completion of this project, preferably in partnership with a private concessionaire, while adhering to global standards and best practices.

Moving forward, full completion and upgrade of the busway up to global standards with a bus exchange system for convenient transfer of commuters to feeder lines will attract motorists to take public transit and leave their cars at home. This shift will reduce vehicle volume and decongest EDSA. Car lanes may also be reduced to make way for wider sidewalks to enhance nonmotorized mobility and planting of trees.

Efficient mass public transport and nonmotorized mobility are the long-term solutions to traffic congestion as envisioned by the National Transport Plan.

We call on other concerned sectors to link arms in continuing efforts to improve public transportation efficiency that is key to our people’s well-being.

 

Benedicta Du-Baladad is the president of MAP, while Eduardo H. Yap is chairman of the MAP Infrastructure Committee.

Entertainment News: Weezer to have first show in Philippines


Weezer arrives in the Philippines in October

Weezer, behind the hits “Say It Ain’t So,” “Buddy Holly,” “Beverly Hills,” and “Undone–The Sweater Song,” among others, is making their Philippine debut in October. The band was revealed to be part of the lineup of PLUS63 Festival Manila. Their concert will be on Oct. 14 at the SMDC Festival Grounds in Pasay City. At the music festival, Weezer will be joining Aminé, mxmtoon, Lola Amour, and PLAYERTWO, with more artists to be announced soon. Early bird tickets are on sale until Sept. 14, priced at P3,800 for General Admission and P7,000 for VIP, available on www.PLUS63Festival.com and SM Tickets outlets nationwide.


Engelbert Humperdinck returns to the Philippines

BRITISH pop singer Engelbert Humperdinck will be returning to the Philippines for a two-night concert at the Newport Performing Arts Theater on Sept. 9 and 10 as part of his ongoing world tour The Legend Continues. The iconic crooner, known as the “King of Romance” due to his passionate ballads that serenade audiences all over the world, has produced and performed hits like “Release Me,” “Quando Quando Quando,” “Spanish Eyes,” and many more. Mr. Humperdinck last performed in the Philippines in 2019. Tickets are now available at all TicketWorld and SM Tickets outlets, with prices at P12,800 (platinum), P11,800 (SVIP), P10,500 (VIP), P8,000 (gold), P5,500 (silver), and P2,500 (bronze). For more updates, visit www.newportworldresorts.com.


TV5 introduces new game show hosted by John Arcilla

TV5 announced its new game show concept, Spingo, fusing entertainment, strategy, and audience immersion through a blend of skill-based challenges and trivia. The show will have multi-awarded actor John Arcilla as its host, signifying a notable milestone in his career as he steps into the role of a charismatic game show host that must guide both contestants and viewers. The tagline “Sa bawat spin, go for the win!,” hints at how Spingo is a spin on Filipinos’ all-time favorite game of chance, Bingo. It also features an innovative twist on audience engagement by offering its viewers the chance to win big prizes via the Spingo app available via Google Play Store. John Arcilla will be accompanied by his co-host, Spingorgeous Girl Sam. Spingo premieres on Sept. 11 and will run Monday to Friday every 5:30 p.m.


Third World Romance screens nationwide

DWEIN Baltazar’s realist rom-com Third World Romance is now showing in cinemas nationwide. The film closed the 19th Cinemalaya Independent Film Festival on Aug. 12 and began screening all over the Philippines on Aug. 16. It stars real-life couple Charlie Dizon and Carlo Aquino as Britney and Alvin, who both work at the same supermarket and seek to be happy in a blue-collar world made tougher by their bleak economic reality in the pandemic. Lauded for veering away from the usual escapist rom-com formula, the film navigates love and survival through the lens of ordinary people.


Howie Severino and Atom Araullo to hold photo exhibit

TO SHARE the scenes and experiences behind many years of TV and documentary coverage all over the Philippines, I-Witness documentarists Howie Severino and Atom Araullo present “Unmasked,” a months-long photo exhibit set to run from Aug. 21, 2023, to May 26, 2024. It will be brought to various SM malls across the country, starting with SM Sta. Rosa in Laguna, which will have the exhibit until Aug. 30. Featuring photos shot while the two were producing I-Witness stories, the subject matters range from the drug war and the plight of Rohingya refugees in Bangladesh to Mr. Severino’s evacuation from the 2020 Taal Volcano eruption and his experience fighting a COVID-19 infection. “Unmasked” aims to remember a world just before the pandemic shut it down and celebrates a return to interactions where faces are visible once again. After SM Sta. Rosa, the public can catch the exhibit at SM City San Pablo, SM City Calamba, SM City Tanza, SM City Molino, SM City Trece Martires, SM City Dasmariñas, SM City Batangas, SM City Lipa, SM City Lucena, SM City Daet, SM City Naga, SM City Legazpi, and SM City Sorsogon. A complete schedule will be announced soon.


FDCP brings acclaimed foreign titles to Ayala Cinemas

THE FILM Development Council of the Philippines (FDCP) and Ayala Cinemas will be screening world cinema gems through “A-List Series Presents: FDCP World Cinema,” which runs from Aug. 23 to 29 in various Ayala Malls Cinemas in the country. Four film festival darlings from 2022 that have not yet been shown to the Filipino audience will be made more accessible. These include Aftersun directed by Charlotte Wells, Close directed by Lukas Dhont, Corsage directed by Marie Kreutzer, and Return to Seoul directed by Davy Chou, which originate from the United Kingdom, Belgium, Austria, and Cambodia respectively. The films have won multiple awards from the Cannes Film Festival, BAFTA Awards, Oscars and Asia Pacific Screen Awards. They will be screened at the following Ayala Malls Cinemas: Manila Bay, Greenbelt 3, Trinoma, Solenad, Capitol Central, Central Bloc, Centrio, Abreeza, and Harbor Point. Admission prices are at P250 in Metro Manila and P200 in provinces. For updates, follow Ayala Malls Cinemas on Facebook.

BSP commits to sustainable investing principles

BW FILE PHOTO

THE CENTRAL BANK has joined a global network of public and private institutions committed to incorporate environmental, social, and governance (ESG) issues into investment decisions.

The Bangko Sentral ng Pilipinas (BSP) has signed the Principles for Responsible Investment (PRI), which were developed in 2005 in a process convened by then-United Nations (UN) Secretary-General Kofi Annan, it said on Monday.

“By signing the PRI, investors commit to integrating ESG issues into their policies, consistent with their fiduciary responsibilities,” the BSP said in a statement. 

The PRI is a set of principles developed by investors in partnership with the UN. The principles prompt signatories to incorporate ESG into investment analysis and ownership practices, as well as seek appropriate disclosure of ESG issues by entities.

The principles also include the promotion of ESG and collaboration with other members in implementing them.

PRI Chief Executive Officer David Atkin said they welcome the BSP as a PRI signatory.

“As the central bank for the Republic of the Philippines, BSP has a broad mandate and responsibilities, and a unique opportunity to influence the responsible investment ecosystem in the market,” Mr. Atkin said. “BSP is to be commended for its commitment to incorporate ESG factors into its ownership and investment decisions, and we look forward to working with the team.”

The central bank said becoming a PRI signatory is part of the BSP’s 11-point Sustainable Central Banking (SCB) strategy and complements the BSP’s membership to the Network of Central Banks and Supervisors for Greening the Financial System.

“The BSP recognizes that in fulfilling its mandates, it must take concrete actions in promoting the sustainability agenda. Joining the PRI aligns with the Bank’s mission and values,” the BSP said.

The initiative will also allow the BSP to understand responsible investing and enhance the inclusion of ESG factors in the investment process and decision making, which will help it achieve its sustainability objectives, it added.

The BSP launched its 11-point sustainability agenda last year as it seeks to mitigate climate risks by advocating green policies and practices. Under the SCB Strategy, the BSP will foster environmentally responsible and sustainable policies and work practices, as well as integrate ESG principles in its key functions and operations. — K.B. Ta-asan

Groundbreaking for One Crown Suites

MEGAWORLD CORP. recently broke ground on a new residential condominium tower, One Crown Suites, in Sta. Cruz, Manila.

Located within the three-hectare Winford Resort, the 17-storey tower offers 389 “smart home” units each with their own balcony.

The groundbreaking ceremony was led by Wilson Sy, special adviser on Chinatown Affairs, Megaworld (center). Also joining him were (left to right): Paul Chan, Megaworld Manila marketing manager; Steve Velmonte, Megaworld Manila sales director; Victor Solidum, Megaworld Manila senior assistant vice-president and head of training and digital; Jennie Torio, Megaworld senior construction manager; Carlo Cuenco, One Crown Suites project manager; Ken Tee, Megaworld Manila sales director; Paulo Guevara, Megaworld Manila sales director; and Dominique Olandesca, Bauer Foundation Philippines project manager.

ICTSI adds cranes in Australia

INTERNATIONAL CONTAINER Terminal Services, Inc. (ICTSI) has added six new automated stacking cranes at its port in Australia to achieve a fully automated container terminal.

In a press release, ICTSI said that the purchase of the additional stacking cranes for Victoria International Container Terminal (VICT) will increase its terminal yard and reefer capacity by 30% and 43%, respectively.

VICT’s new equipment is part of an ongoing expansion project, which includes 15 additional truck grids that will increase the terminal’s slot availability by 30%.

The container terminal in Melbourne is also set to acquire two larger ship-to-shore cranes, which will bring the total number to seven.

“The new cranes will have an outreach of 22 containers to enable the handling of up to 14,000-twenty-foot-equivalent-units (TEUs) capacity Neo-Panamax ships,” the company said.

Under the expansion project, VICT’s quay line, or the area where boats are tied up for loading and unloading, will be extended by 71 meters, which will allow two 336-meter-long vessels to berth simultaneously.

On Aug. 3, 2021, the Port of Melbourne committed to carrying out the berth extension, which commenced in March last year and is expected to be completed by the end of 2023.

The container terminal’s expansion, which is expected to raise VICT’s annual throughput capacity by 250,000 TEUs to 1.25 million TEUs, is scheduled to be completed and operational at the beginning of 2024.

A subsidiary of ICTSI, VICT started its operations in Australia’s fully-automated container terminal in 2017.

In the second quarter, ICTSI saw an increase in volume from its Asia operations by 17.2% to 1.61 million TEUs from 1.38 million TEUs in the same period last year.

Its operations in Asia cover its terminals in the Philippines, China, Indonesia, and Papua Guinea. — Justine Irish D. Tabile

Alas, Trump is still eligible to run for office

A LAW REVIEW article claiming that Donald Trump is automatically disqualified from holding elected office is getting attention in large part because it was written by two conservative, originalist law professors, William Baude and Michael Stokes Paulsen. Baude and Paulsen argue that Trump should be excluded from ballots for giving aid to an “insurrection or rebellion” in violation of Section 3 of the 14th Amendment.

There are two problems with the notion that Trump can and should be kept off the ballot by state election authorities.

First, although Baude and Paulsen’s originalism is honest and conscientious, originalists outside academia typically won’t apply their originalism if it leads to a result at odds with their conservatism. Second, there is precedent that contradicts their argument — precedent the scholars dismiss because they say it contradicts the original meaning of Section 3.

To condense their main points, when the 14th Amendment was drafted after the Civil War, the original meaning of Section 3 was that anyone who previously held public office and then rebelled against the US government should be automatically barred from office unless two-thirds of Congress made an exception. This constitutional provision is law and requires no further action by Congress to implement it, the article says. Courts can and should apply it, but we don’t need to wait for them to do so. Any government official, state or federal, whose duty it is to apply the Constitution must obey Section 3. It follows, the authors say, that the state officials who set the ballots for the primaries and general elections should exclude Trump. If he wants to fight that in court, he can. But there’s no need for the officials to wait for a judicial determination.

To state this argument is to see why it won’t be followed by state officials. Was the Jan. 6 attack on the Capitol an “insurrection”? Did Trump participate or give aid and comfort to the “enemies” of the Constitution under Section 3? These are contentious questions of constitutional interpretation.

True, all state and federal officials are sworn to uphold the Constitution. But today we are accustomed to having the Judiciary, and ultimately the Supreme Court, resolve tough constitutional questions.

A state election official who blocked Trump from the ballot would understandably feel an enormous amount of trepidation about making such an epochal decision absent judicial guidance. And even if local officials were prepared to bar Trump, they would be ill advised to do so as a matter of constitutional law.

The Supreme Court as a whole has never directly interpreted Section 3. But in 1869, the chief justice of the United States, Salmon P. Chase, issued a circuit court opinion in Griffin’s Case interpreting Section 3. (At the time, it was normal for Supreme Court justices also to work as circuit court judges.) In it, Chase held that Section 3 was not automatically enforceable — what lawyers call “self-enforcing” — but rather could only go into effect if Congress passed a law directing its implementation. Such legislation is not in existence today.

A circuit court decision, even one written by a sitting chief justice, doesn’t formally bind the Judiciary or even the other courts of appeal. Nevertheless, the opinion is overwhelmingly the most important precedent interpreting Section 3. It has not been seriously questioned by the Supreme Court or the other courts of appeal since it was set down more than 150 years ago. Because it is still on the books, ignoring it would be an act of legal irresponsibility.

To be sure, Chase’s logic in Griffin’s Case is a bit tortured, as Baude and Paulsen’s article shows over some 20 pages. Chase was clearly trying to achieve a near-term legal objective (upholding convictions by judges who had once been associated with the Confederacy and might have been disqualified by Section 3). He also likely had a longer-term political objective, namely giving a majority in Congress the ability to decide whether Section 3 would be applied, rather than requiring two-thirds of Congress to lift the bar on office.

But nearly every important judicial opinion reflects legal and political judgments. The whole idea of precedent is that it stays in place until the courts reject it.

Originalists don’t like that. In fact, they don’t like precedent much at all, because they think a law’s original meaning has more validity than later judges’ interpretation. That’s one of the things that’s wrong with originalism. Although theoretically designed to constrain courts, originalism in fact invites judges — and others — to disrupt long-established law in favor of their preferred policy positions, dressed up as original meaning. Think of Dobbs v. Jackson, where originalists could say that the right to choose wasn’t in the original meaning of the due process clause, despite a half-century of precedent ruling otherwise.

The takeaway is that the scholars’ article helps show what’s wrong with originalism, in both theory and practice. Donald Trump is manifestly unfit to be president. But it’s up to voters to block him. Magic words from the past won’t save us.

BLOOMBERG OPINION

Britney Spears’ husband seeks divorce

SAM ASGHARI, the husband of pop superstar Britney Spears, is seeking to divorce the singer he married last year after she was released from a legal conservatorship.
The 29-year-old Mr. Asghari cited “irreconcilable differences” in a filing in Los Angeles Superior Court on Wednesday. He is seeking spousal support and payment of legal fees by Ms. Spears.

In a statement on Instagram, Mr. Asghari said he and Ms. Spears “have decided to end our journey together.”

“We will hold onto the love and respect we have for each other and I wish her the best always,” Mr. Asghari added. “Shit happens. Asking for privacy seems ridiculous so I will just ask for everyone including media to be kind and thoughtful.”

Representatives for Ms. Spears did not immediately respond to requests for comment.
Mr. Asghari and Ms. Spears, 41, wed 14 months ago in June 2022 after dating for nearly six years.

The wedding took place months after a judge ended a conservatorship that had controlled the singer’s personal life and finances for 13 years. During court proceedings, Ms. Spears said she longed to get married and start a new family without any restrictions.

The conservatorship had been set up and overseen by the singer’s father, Jamie Spears, after she had a public breakdown in 2007 and was hospitalized for undisclosed mental health issues.

The marriage is the third for Ms. Spears, and the first for Mr. Asghari. She married Jason Alexander, a childhood friend, in a surprise ceremony in Las Vegas in 2004 but the marriage was annulled shortly after. Nine months later, she married dancer Kevin Federline, with whom she had two children. That marriage ended in divorce in 2007.

The Grammy-winning Ms. Spears is known for pop music hits such as “Baby One More Time,” “Oops! … I Did It Again” and “Stronger.”

Iranian-born Mr. Asghari is a personal trainer and actor who has appeared on the Showtime series Black Monday. — Reuters

PHL should tap municipal bonds to expand its financing options

BW FILE PHOTO

DEVELOPING COUNTRIES like the Philippines should promote the use of municipal bonds to expand and decentralize financing options, the Asian Development Bank (ADB) said.

“While it is unlikely that any of the target developing member countries will develop an active municipal bond market, with municipal bonds as a core investment in the portfolios of domestic institutional investors, it is feasible to envisage greater issuance within all four countries (India, Vietnam, the Philippines, and Indonesia),” the ADB said in a report.

The ADB said there is still a “very limited” history of municipal bond issuances in the Philippines.

It said decentralization remains a “work in progress” in the country.

“The Local Government Code provides an adequate legal framework for the activities of local government units (LGUs), including for the issuance and servicing of debt for infrastructure projects,” it said.

“Some regulatory issues, such as the possibility of annual appropriations risk for the payment of debt service, and the possibility under certain circumstances for an LGU to assign an intercept of shared tax revenues for the repayment of debt, require further clarification,” it added.

According to the ADB, LGU debt accounts for just 1.3% of outstanding public sector debt, indicating “low relative participation compared with the central government in the financing of infrastructure projects.”

Data from the multilateral lender showed the Philippine domestic bond market has around P10.427 trillion in capitalization.

“The Philippine domestic bond market is relatively small and shallow, but it is growing. The bond market is dominated by government bonds that constitute 82% of all bonds outstanding,” it said.

“Should municipalities return to the bond market, the Securities and Exchange Commission provides a robust regulatory framework for bonds, although this does not include guidelines for the issuance and listing of municipal bonds, as are present in some Asian developing member countries, such as India and Indonesia,” it added.

The report also included recommendations such as debt structuring, particularly in broadening municipal debt security, diversifying tenors, and creating pooled finance vehicles.

The multilateral lender also recommended the redirection of government-owned financial institution lending to municipalities.

“These recommendations pertain to redirecting the lending activities of government-owned financial institutions, which in many target DMCs dominate municipal finance because of their low cost of capital and strong relationships with the local government sector,” it added.

Institutional capacity building is also key to helping municipalities enter the bond market. It cited the promotion of municipal ratings, the production of independent financial audits, and benchmarking exercises, among other measures. — Luisa Maria Jacinta C. Jocson

McDonald’s Philippines aims to have 130 Green & Good stores by yearend

MCDONALD’s Philippines is aiming to end the year with a total of 130 Green & Good stores, from the current 25.

“With more than 700 stores nationwide, McDonald’s Philippines carries a strong commitment to environmental responsibility.  We will continue to find solutions to make our operations more efficient and better for the planet. With the results of our Green & Good initiatives so far, we believe that it is possible to grow sustainably. Our stakeholders can look forward to enjoying more McDonald’s stores that are Green & Good in the future,” Kenneth S. Yang, McDonald’s Philippines president and CEO, said in a statement.

The first Green & Good store is the McDonald’s branch along UN Del Pilar Avenue in Manila City which opened in 2020.

There are 25 Green & Good stores with solar-powered rooftops are able to save a total of 546,000 kWh, which McDonald’s said cuts its electricity consumption by as much as 36% versus stores that do not use solar power.

With its first six flagship Green & Good stores, McDonald’s said it was able to realize an annual reduction of 52,500 kg of carbon dioxide (CO2e) and 102,000 (H2O) liters of water reduction for each store.

McDonald’s also uses rainwater harvesting tanks collecting run-off to decrease water consumption, as well as inverter air-conditioning technology, LED lights and photo and motion sensors inside its stores.

McDonald’s said it now uses 60% paper- or fiber-based packaging and strawless lids for cold beverages, which have reduced  plastic waste by 273 metric tons.

McDonald’s stores also have Bike and Dine areas, and have e-charging stations for two-wheeled electric vehicles.

San Miguel prepares to train new engineers for MRT-7 operations

SAN MIGUEL Corp. (SMC) on Monday is set to train about 115 recently graduated engineers to helm the Metro Rail Transit Line 7 (MRT-7) project.

“MRT-7 promises to be a game-changer for the Philippine transportation landscape, and we are confident our young professionals will set new benchmarks in efficiency, safety, and service excellence,” San Miguel President and Chief Executive Officer Ramon S. Ang said in a statement.

The company said the engineers will undergo extensive training for the commercial operation of MRT-7 by 2025.

It added that the new graduates have started their training in the country, while 40 engineers were sent to Korea for training under Korea Railroad Corp. or Korail.

The company said the remaining cadets are undergoing mandatory fundamental training courses under the Philippine Railway Institute.

San Miguel has partnered with the Korean railway operator and the Philippine Railway Institute for industry-level insights and understanding in train operations and railway maintenance.

“Investing in the growth, development and well-being of young local talents is part of our commitment to nation-building and ensuring our country’s long-term success and prosperity,” Mr Ang said.

“We want to be able to provide them with the tools they need to enhance their competencies, prepare them for when the MRT-7 starts operating and eventually make meaningful contributions to the wider community,” he added.

The company, through its infrastructure unit, SMC Infrastructure, recently acquired a P100-billion loan to hasten the project completion by 2025. 

The load was between the company and a consortium of local entities, namely: BDO Unibank, Inc., Philippine National Bank, Bank of Commerce, Security Bank Corp., and the Government Service Insurance System.

The MRT-7 project is a 23-kilometer elevated railway line with 14 stations.

It will run from Quezon City to San Jose del Monte, Bulacan, and is expected to carry 300,000 passengers daily in its first year, and up to 850,000 passengers a day in its 12th year. — Adrian H. Halili

Financing growth

(1st of a series)

This column will produce a new series on Financing Growth. The take-off point is the successful UP School of Economics program in development economics alumni association homecoming lecture last Saturday titled “A Conversation with finance and budget secretaries on financing sustained economic growth.”

Finance Secretary Benjamin E. Diokno and Budget Secretary Amenah F. Pangandaman discussed the recent and medium-term economic performance and targets of the economic team and Marcos administration.

GDP GROWTH IN Q2 2023
Of the top 50 largest economies in the world in GDP size in 2022, 32 have reported their second-quarter 2023 GDP data. The top three fastest-growing in the first half or average for Q1 and Q2 2023 were the United Arab Emirates (UAE), Philippines and China. But UAE and China have fast growth in 2023 on low base or low growth in Q1 and Q2 of 2022, whereas the Philippines has fast growth in 2023 on high base or high growth in 2022. So it would appear that of these 32 major economies in the world, the Philippines has the most dynamic and resilient growth.

And of these 32 economies, 11 have low H1 growth of below 2%, while seven have contractions of 0.1% to 1% including Germany — the largest economy in Europe — Sweden, Poland and Taiwan. I added four countries with modest or high growth in Q1 but no Q2 data yet (Table 1).

The global and regional economic environment in 2023 is worse than in 2022. A growth of 3% or higher now looks fast already. The Philippines growing at 5.4% in H1 was already an outstanding performance.

BIG INFRASTRUCTURE
Secretary Diokno and Secretary Pangandaman discussed an optimistic short- to medium-term economic and fiscal outlook. Below are four sets of data presented by the two secretaries, among the many data they discussed and for brevity, I compressed these sub-tables into one.

Sub-table I shows the growth target of the Development Budget Coordination Committee (DBCC), and projections by the ASEAN+3 Macroeconomic Research Office and the three multilaterals — ADB, IMF and WB. The four institutions’ projections for 2023 are within the DBCC target, but for 2024, the three multilaterals have lower projections than DBCC but still high — 5.5% or higher.

Sub-table II shows that all the five credit rating companies either upgraded or affirmed and sustained their previous ratings for the Philippines since President Ferdinand R. Marcos, Jr. assumed power in July 2022. The most recent were made by Fitch, from BBB- to BBB stable in May, and by R&I, from BBB+ stable to BBB+ positive early this month. The next goal is to move from BBB+ to A and I think that is highly possible.

Sub-table III shows the medium-term fiscal projections like reducing the public debt/GDP ratio, deficit/GDP ratio and keeping the infrastructure spending/GDP ratio between 5-6% yearly. I also think these are doable, although I wish that deficit/GDP ratio was below 3% by 2028.

Sub-table IV shows an ambitious infrastructure program of P1.3 trillion until 2028, led by more roads and bridges. Both secretaries highlighted two main sources of funding other than the budget and new borrowings from multilaterals — more public private partnerships (PPP) and the Maharlika Fund (Table 2).

BusinessWorld reporter Keisha B. Ta-asan was at the lecture and she wrote two stories, “Diokno: Tuition-free college education unsustainable” (Aug. 20), “DBM chief says Q2 GDP growth would have been higher if not for gov’t underspending” (Aug. 21). Good to see you there, Keisha.

PDE ALUMNI HOMECOMING
Even if it was a Saturday afternoon of a long weekend, the UPSE auditorium was full during the lecture by the two secretaries. The bulk of the audience came from PDE alumni batches of the 1970s and 2010s.

After the lectures and open forum with the two secretaries, dinner was served courtesy of the Philippine Center for Economic Development of UPSE. Then came the PDE homecoming program. Mai Valera-Co, president of batch 46th, and I were the co-MCs. There were lots of fun games, raffle prizes and giveaways to all alumni who came, plus food and beer. Our batch also gave an entertainment number — economic carols composed and sang in December 1997.

For that very successful event, the two secretaries’ lecture and PDE homecoming, I want to thank the following.

Our corporate sponsors who gave donations in kind, in alphabetical order: Alas Oplas & Co. CPAs., Astoria Hotels and Resorts, Gallerie Joaquin, iOptions Ventures Corp., Japan Tobacco, Inc., Manila Electric Co., Nestlé Philippines, Philip Morris Fortune Tobacco Corp., Robinsons Retail and San Miguel Corp.

Friends who represent the companies above: Marycris (also my sister), Jeffrey, Jack, Pidro, Robert, Joe, Arlene, Noel, Robina and Ferdie. Thank you guys, more blessings to your companies.

Of those 10 corporations, only iOptions Ventures is province-based, in Palawan. Pidro was my dormmate at the UP Narra dormitory in the 1980s, a very kind man and he formed the Palawenyo Savers, the CSR arm of iOptions that provide scholarships and nurture rural-based entrepreneurship like developing small organic farm systems, biochar production including carbonized rice hull and liquid smoke.

For the organizing team, special thanks to UPSE Dean Joy Abrenica (also our teacher in PDE in 1997-1998), Rose San Pascual, Chelle Magboo, many other staff of UPSE, my co-MC Mai Valera-Co, PDE Alumni Association convenor Monching Bacani and most importantly, former UPSE faculty and PDE Director Ruping Alonzo (RIP) who is well-loved and remembered by so many PDE graduates from various batches.

Thank you all. Fantastic lectures and homecoming. We will do it again next year.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers.

minimalgovernment@gmail.com

Susan Sarandon sues over ‘extensive problems’ at Vermont home

THE OSCAR-WINNING actress Susan Sarandon has taken a construction firm to court over what she calls “extensive problems” at a $2-million home she built in Vermont and where she planned to spend her retirement.

Buckled siding, missing insulation, mold and an unfinished primary bedroom ceiling are among 47 issues found by engineers, contractors and Ms. Sarandon’s staff, according to a lawsuit filed against DeGrenier Contracting and Property Management on Thursday in the federal court in Springfield, Massachusetts.

Ms. Sarandon, 76, built the environmentally sustainable home on 45 wooded and meadowed acres in Stamford, Vermont, located near the Massachusetts border, that she bought in 2018 through the limited liability company The Right to Bear Farms, which filed the lawsuit.

Known for her political activism, Ms. Sarandon said she had a “clear vision” for a home that would be “entirely off-the-grid,” with solar power, well water and geothermal energy, “in light of increasing global environmental instability.”

But she said the Clarksburg, Massachusetts-based construction management firm’s owner misrepresented his qualifications, inflated invoices, charged for construction he never did, and did essentially nothing to justify being paid nearly $140,000 to act as the property’s caretaker under an agreement struck after the house was built.

The firm’s owner declined to comment. The lawsuit seeks unspecified damages based on claims of breach of contract, unjust enrichment and fraudulent misrepresentation.

Ms. Sarandon won the best actress Oscar for the 1995 movie Dead Man Walking. She stars as the main villain in the superhero film Blue Beetle, which hit theaters on Friday. — Reuters

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