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Contestable power customers saved P19 billion in first 9 months — PEMC

ROBERT LINDER-UNSPLASH

POWER CONSUMERS who chose their preferred electricity suppliers saved about P19.25 billion in the first nine months of 2025, according to the Philippine Electricity Market Corp. (PEMC).

The savings estimate exceeded the P16.76 billion in estimated savings over the full year of 2024, the PEMC said in a retail market assessment report.

The PEMC, the governance arm of the Wholesale Electricity Spot Market (WESM), said in third quarter, estimated savings for contestable end-users at about P9.93 billion — the highest level to date, with retail weighted-average generation rates ranging from P5.68 per kilowatt-hour (kWh) to P5.75 per kWh.

The corresponding average generation rates charged by distribution utilities ranged from P6.12-P6.66 per kWh.

Through the competitive retail electricity market (CREM), contestable customers are those qualified to choose their supplier of electricity, while captive customers are required to stay within their respective distribution utilities.

“Market participation continued to expand in the third quarter of 2025, with total registered contestable end-users increasing to 2,412, up from 2,290 in the previous quarter,” PEMC said.

The savings estimate covers over 64% of all eligible end-users, it said.

Luzon accounted for 86% of all contestable end-users, while the Visayas and Mindanao represented 12% and 3%, respectively. — Sheldeen Joy Talavera

Business chamber cites urgent need to reform laggard tourism industry

PHILSTAR FILE PHOTO

THE Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) said the government needs to reform the tourism industry, which it said continues to lag its regional peers.

Victor R. Lim, FFCCCII president, said immediate, decisive, and comprehensive reforms are needed for the Philippines if it is to reap the benefits of the robust tourism recovery seen elsewhere in the Association of Southeast Asian Nations (ASEAN).

“Our nation is blessed with unparalleled natural beauty and resources. Yet, as our ASEAN neighbors celebrate a robust tourism recovery, the Philippines is charting a dissimilar and concerning course,” he said in a statement on Sunday.

“We are at a pivotal time where decisive, comprehensive reform is not just an option — it is an urgent economic imperative,” he added.

Citing the Department of Tourism, FFCCCII said international arrivals totaled 5.24 million in the first 11 months, down 2.2% from a year earlier and 37% below pre-pandemic levels.

“This Philippine tourism decline is a direct blow to our national economic well-being,” Mr. Lim said.

“Tourism is our economy’s low-hanging fruit. It is the most accessible engine for inclusive economic growth — a sector that directly creates jobs and sustains the micro, small and medium enterprises (MSMEs),” he added.

He said some of the challenges faced by the industry are congested gateways, logistical hurdles, and unreliable connectivity.

“(These) create a barrier deterring the mainstream traveler, limiting our appeal to only the most adventurous,” he said.

He said the Philippines should continue modernizing primary airports and improving inter-island travel infrastructure.

“This is non-negotiable. The first and last impression must be one of efficiency and ease,” he added.

He also cited the need to streamline the visa issuance process and better promote the country’s culture, history, and cuisine.

Mr. Lim proposed a visa regime competitive with the rest of ASEAN.

“We must immediately benchmark and match the most visitor-friendly visa policies in our ASEAN region, making the choice to visit the Philippines an easy one,” he added.

Meanwhile, he said that tourism promotion should move beyond scenery.

“We must train our industry and tell stories that connect our landscapes to our living heritage, our flavors, and our famed hospitality,” he added. — Justine Irish D. Tabile

With PFRS, sustainability disclosures can become a competitive edge

IN BRIEF:

• The SEC’s new guidelines require companies to report sustainability and climate-related financial information starting FY 2026, specifically disclosures on governance, strategy, risk management and metrics and targets.

• Effective reporting and sustainability practices can enhance corporate governance, attract investors, and improve long-term business resilience by integrating sustainability into core business strategies.

In today’s fast-changing business environment, the demand for consistent, comparable, and transparent sustainability reporting is crucial for investment decisions. The International Sustainability Standards Board (ISSB) has introduced IFRS S1 General Requirements for Sustainability-related Financial Information and S2 Climate-related Disclosures, which provide crucial sustainability-related information alongside financial statements, catering to investor demands for transparency.

These standards offer businesses a chance to enhance corporate governance and investor protection through globally aligned regulations.

Following the adoption of IFRS S1 and S2, on Dec. 22, the Securities and Exchange Commission (SEC) issued Memorandum Circular No. 16, Series of 2025 requiring publicly-listed companies (PLCs) and large non-listed companies (LNLs) to adopt Philippine Financial Reporting Standards (PFRS) on Sustainability Disclosures starting in FY2026 with limited extensions of transition reliefs under a tiered approach.

Mandatory external limited assurance of Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions by an independent assurance practitioner will also be required two years after the initial implementation of these standards for each tier.

The standards focus on four core areas:

• Governance: governance processes, controls and procedures a reporting entity uses to monitor, manage and oversee sustainability- and climate-related risks and opportunities

• Strategy: approach the entity uses to manage sustainability- and climate-related risks and opportunities

• Risk Management: processes the entity uses to identify, assess, prioritize and monitor sustainability- and climate-related risks and opportunities

• Metrics and Targets: information used to manage and monitor the entity’s performance in relation to sustainability- and climate-related risks and opportunities over time

Adopting the standards allows companies to shift sustainability from a mere compliance requirement to a fundamental part of their corporate strategy, driving long-term value and resilience. These reporting obligations can serve as a catalyst for organizational improvement and bolster investor trust.

Organizations often struggle to integrate sustainability across all levels. According to EY’s 2023 Sustainable Value Study, only half of Chief Sustainability Officers (CSOs) feel empowered to hold C-suite peers accountable for sustainability initiatives. Furthermore, 41% of organizations aim to strengthen collaboration between the C-suite and the board to effectively implement climate strategies.

With the new reporting obligations, effective sustainability disclosures can influence corporate governance structures and strategic decision-making processes. In their disclosures following the PFRS on Sustainability Disclosures, companies need to set out their governance processes, controls and procedures that they use to monitor, manage and oversee sustainability-related and climate-related risks and opportunities. This includes considering trade-offs associated with sustainability risks and linking remuneration policies to performance metrics. In addition, companies need to identify responsible governance bodies and ensure they have the necessary competencies.

In addition, the standards ask the board to disclose how sustainability-related and climate-related risks and opportunities are considered when overseeing overall strategy, the company’s decisions on major transactions and its risk management processes and related policies. With these obligations, organizations that have not yet integrated environmental, social, and governance (ESG) factors into their strategies will need to reassess their approaches to meet these new expectations. By doing so, they can enhance governance, meet stakeholder expectations, and leverage sustainability for revenue growth.

Local adoption of the IFRS Sustainability Disclosure Standards paves the way for a consistent sustainability reporting framework applicable across companies, making it easier for companies to communicate their sustainability efforts. Standardized disclosures on climate-related risks can also enable investors to assess how well companies are managing these risks. Between companies who disclose their exposure to extreme weather events in a similar manner, investors can better evaluate which company has a more robust risk management strategy.

Mandatory and standardized disclosures help ensure comparability of company data, improving understanding of performance and potentially financial information that translates towards better capital access. When companies disclose the financial implications of their sustainability initiatives, stakeholders can better understand how these initiatives contribute to overall financial performance, improving investor confidence and potentially lowering capital costs.

Transparent sustainability practices have the potential to attract a broader range of investors, including those focused on ESG criteria. Companies that can outline sustainability goals, progress, and metrics consistently can foster trust and attract investors who prioritize ESG criteria. Reporting under the standards, in compliance with the SEC Memorandum Circular, provides covered entities the opportunity to inform senior-level decision-making while enabling them to hold themselves accountable over their sustainability targets — and be held accountable by others.

To truly realize the value of sustainability, boards must adopt a long-term perspective. Sustainability should not be treated as an isolated initiative; it needs to be seen as an essential pathway for successful businesses. By effectively integrating sustainability strategies into their operations, companies and boards can enhance performance. Sustainability and business must work hand in hand and should not treated as a separate endeavor.

Adopting PFRS on Sustainability Disclosures allows companies to shift sustainability from a mere compliance requirement to a fundamental part of their corporate strategy, ultimately driving long-term value and resilience in an increasingly unpredictable environment.

To prepare for the adoption of the new sustainability standards and related reporting developments, companies can consider the following actions:

Integrate sustainability into governance frameworks. Ensure a shared vision at the leadership level for integrating sustainability into business practices. Governance roles should oversee strategy, major transactions, and risk management, setting the tone for the organization.

Build capacity. Develop capabilities across different functions to meet the new standards. Every department should understand the importance of sustainability and its business benefits.

Adopt a mindset of continuous improvement. Embrace a culture of continuous improvement in sustainability practices and reporting. The company’s initial report does not need to be perfect; however, as capabilities, skills, and resources improve over time, so too should the quality of the report.

Regularly monitor and assess the evolving risk landscape through tailored board insights and discussion sessions. In addition, be prepared to revisit sustainability targets based on the latest scientific data, and leverage insights from peers to drive innovation. This proactive approach enables leadership teams to make informed decisions and implement strategies effectively.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Crystal Aleli Cornell, Joyce Anne Soriano And Zoe Aurora Romero are managers from the Sustainability Team of SGV & Co.

Analysts: Marcos veto curbs standby funds but deeper budget flaws persist

PHILIPPINE STAR/EDD GUMBAN

By Chloe Mari A. Hufana, Reporter

PRESIDENT Ferdinand R. Marcos, Jr.’s veto of P95.5 billion in unprogrammed funds from the 2026 General Appropriations Act has eased some concerns over discretionary spending, but analysts said the move only partly addresses deeper weaknesses in budget planning and oversight.

While the decision trimmed standby allocations, it left intact a system that allows large sums to be set aside without detailed projects or assured funding, an issue now before the Supreme Court (SC) and one that could shape future fiscal policy.

“The continued presence of large unprogrammed appropriations points to deeper issues in planning and coordination that need to be addressed more systematically,” Ederson DT. Tapia, a political science professor at the University of Makati, said in a Facebook Messenger chat.

He added that striking out items from the budget should not be treated as a substitute for broader reform.

Mr. Marcos signed the P6.793-trillion spending plan on Jan. 5, vetoing seven unprogrammed items worth P95.5 billion but retaining about P150.9 billion in standby funds.

He said this was the lowest level of unprogrammed appropriations since 2019. The retained amounts include P97.306 billion for support for foreign-assisted projects, P3.6 billion for a risk management program, and P50 billion for the Armed Forces of the Philippines’ modernization.

Unprogrammed funds are meant to be released only when excess revenues or foreign financing materialize. Critics, however, have long argued that they give the Executive branch wide discretion and weaken Congress’ power of the purse because projects are not fully specified at the time of approval.

Mr. Tapia said unprogrammed appropriations are not inherently flawed and are meant to provide flexibility in the face of uncertainty. The problem arises when they become a routine feature of the budget and discretion replaces careful planning.

The issue has taken on greater urgency after a multibillion-peso graft scandal involving flood control projects rattled public trust and investor confidence. Mr. Marcos has alleged that senior officials colluded with private contractors in kickback schemes linked to overvalued and underbuilt infrastructure.

Against this backdrop, minority lawmakers from the House of Representatives filed a petition before the Supreme Court last week questioning the constitutionality of unprogrammed appropriations.

The plaintiffs argued that authorizing spending without clearly defined projects or assured funding sources undermines legislative control over the budget.

Beyond the veto itself, analysts said attention is likely to turn to how such items entered the spending plan in the first place. Weak planning, political accommodation or forecasting gaps may all be contributing factors, Mr. Tapia said, adding that understanding these origins would be key as Congress and the Executive consider changes to future budget cycles.

Civil society groups said a court ruling could help settle longstanding issues. Judicial review of unprogrammed appropriations is important because questions persist over transparency, constitutionality and planning, Alce C. Quitalig, a senior budget specialist at Social Watch Philippines, said in a Viber message.

Mr. Quitalig said civil society had already scored a win after pork-linked allocations were stripped from the 2026 budget, pointing to the zero allocation for the Strengthening Assistance for Government Infrastructure and Social Programs.

He also raised concerns over the widening gap between unprogrammed amounts proposed by the Executive and those eventually approved by Congress. Between 2022 and 2024, the approved unprogrammed appropriations exceeded what was originally proposed, Mr. Quitalig said, echoing arguments raised in the SC petition filed by former congressman Edcel C. Lagman, Sr.

Such practices, he said, risk weakening fiscal discipline, especially as government spending continues to grow faster than revenues. Reliance on volatile nontax revenues to justify these allocations creates what the Supreme Court itself has called “artificial revenue surpluses,” Mr. Quitalig said, warning this could lead to higher deficits and borrowing.

Still, he acknowledged that the courts have recognized limited use of unprogrammed funds. They are not automatically unconstitutional, but reforms are needed to impose clearer limits on financing and releases, require itemized project listings and prevent Congress from shifting fully funded programs into unprogrammed items, he added.

“Ultimately, if certain programs are indeed a priority, these should be allocated under programmed appropriations,” Mr. Quitalig said. “Contingencies can and should be covered by programmed appropriations already available in agency budgets and special purpose funds.”

Marcos may face ouster raps over flood control scandal, says lawmaker

PILIPPINE STAR/MIGUEL DE GUZMAN

By Kenneth Christiane L. Basilio, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. may face an impeachment complaint as critics prepare a case against him, a lawmaker said, in a move that reflects growing discontent over his administration’s handling of a widening multibillion-peso corruption scandal.

House Senior Deputy Minority Leader Edgar R. Erice said a group approached him last week seeking his endorsement for an impeachment complaint against Mr. Marcos. He did not identify the group, describing them only as the President’s “usual critics.”

“Some people called me, inviting me to endorse it,” Mr. Erice said by telephone. He said he declined, adding that he prefers to remain impartial.

The potential complaint would center on allegations of betrayal of public trust, Mr. Erice said. Under the 1987 Constitution, grounds for impeachment include culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust.

Any Filipino may file an impeachment complaint at the House of Representatives. However, at least one-third of all lawmakers must endorse it before the case can be transmitted to the Senate, which convenes as an impeachment court.

Palace Press Officer Clarissa A. Castro said Mr. Marcos respects the constitutional process of impeachment but is confident lawmakers will be guided by facts rather than politicking.

“The President remains committed to leading and producing results for the Filipino people” she told BusinessWorld in a Viber message. “He respects the existing constitutional processes and believes that any actions taken by members of Congress will be driven by facts, the law and national interest.”

The impeachment talk comes as Mr. Marcos grapples with what analysts describe as the most serious political crisis of his six-year term. Several government officials, politicians and private contractors have been accused of diverting billions of pesos from funds meant for flood control projects in a country frequently hit by typhoons.

Mr. Erice said the corruption scandal is likely fueling ouster efforts against the President. He criticized the administration’s response, saying the probe lacks credibility and direction.

“The way it is being handled is really messy,” he said. “There is no direction and it is confusing.”

He added that the fact-finding commission has limited backing and that the appointed anti-graft official is seen as a close ally of the President, raising doubts about the investigation’s independence.

Public sentiment toward the President has also weakened. Mr. Marcos’ net trust rating turned negative in a December survey by Social Weather Stations, falling to -3 from +7 in September, as more Filipinos said they had little trust in his leadership amid the corruption controversy.

In November, Mr. Marcos said those involved in the kickback scheme would be jailed before the end of 2025. So far, authorities have arrested some contractors and lower-level officials from the Department of Public Works and Highways, while politicians linked to the issue remain free.

Mr. Erice said Vice-President Sara Duterte-Carpio could also face a fresh impeachment attempt once a Supreme Court ruling barring further ouster moves against her lapses on Feb. 6.

“There will also be groups who will file impeachment cases against the Vice-President,” he said.

The Office of the Vice-President did not immediately respond to a request for comment.

Possible impeachment bids against both the President and Vice-President could test a Supreme Court ruling issued in July that tightened rules on impeachment proceedings. The court said due process and fairness must apply at every stage of the process.

Ms. Duterte is the first Philippine Vice-President to be impeached. However, the high court halted further action after ruling that the process used by the House was unconstitutional. Lawmakers had sent the complaint directly to the Senate without a hearing after more than one-third of House members endorsed it.

The Supreme Court said officials facing impeachment must be given the chance to respond to allegations, and that the House must be given reasonable time to decide whether to elevate a case to the Senate.

“That’s better, that way both sides could be heard,” Mr. Erice said. Still, he warned that simultaneous impeachment efforts against the country’s top two officials could hurt political and economic stability.

House Assistant Majority Leader Ziaur-Rahman Alonto Adiong said any attempt to impeach Mr. Marcos must be backed by solid evidence.

“Anything less will not pass constitutional scrutiny,” he said in a statement. “Impeachment should never be used as a political tool. It exists for grave and provable offenses, not for creating noise.”

In a separate statement, Davao City Rep. Paolo Z. Duterte urged lawmakers to reject any impeachment move against the Vice-President, his sister, saying such efforts are politically driven.

“Some say impeachment is the voice of the people. But the question is — when did you last speak to your constituents?” he said in a Facebook post.

Ms. Duterte is widely seen as a frontrunner for the 2028 presidential election. A conviction in the Senate would permanently bar her from holding public office.

The tensions underscore the deepening rift between the Marcos and Duterte camps, once allies who won the 2022 elections by a landslide. Their political split last year over policy differences has since reshaped the country’s power dynamics and raised the stakes of the unfolding corruption scandal.

Resignations fuel skepticism over Marcos corruption fight

PRESIDENT FERDINAND R. MARCOS, JR. FACEBOOK PAGE

By Erika Mae P. Sinaking

THE recent resignations of key commissioners from the Independent Commission for Infrastructure (ICI) have cast doubt on the Marcos administration’s anti-corruption efforts, analysts said, raising questions about the body’s independence and effectiveness.

Household names among the exits include Rossana A. Fajardo and Rogelio L. Singson, whose departures come as the ICI works to investigate irregularities in flood control and other infrastructure projects. Reports of a potential dissolution of the commission have further fueled skepticism.

“It appears that most of the commissioners already recognize that their ability to act is limited, given the institution’s lack of independence and the capacity needed to carry out its role effectively,” Arjan P. Aguirre, a political science lecturer at the Ateneo de Manila University, said in a Facebook Messenger chat.

He added that some commissioners might have encountered the influence of powerful figures, further eroding credibility.

Anthony Lawrence A. Borja, an associate professor at De La Salle University, noted that the ICI “was already weak and limited to begin with.” He said the Marcos administration focused on a separate body for infrastructure to contain corruption within that sector rather than strengthen existing anti-corruption agencies.

As commissioners began leaving, whatever sense of seriousness the body once evoked quickly faded, he said, citing lack of support, occupational risks and diminished confidence in the commission’s effectiveness.

“From the public’s perspective, this is unsurprising — even if disappointing,” Mr. Borja said. “The probable collapse of the ICI will reinforce the perception that corruption is an irresolvable problem voters would rather excuse than condemn.”

The ICI’s remaining commissioner, Andres B. Reyes, Jr., described Ms. Fajardo’s resignation as occurring at a “natural point” and said the body would focus on finalizing remaining cases for the Ombudsman to pursue in court.

Carl Marc L. Ramota, a professor at the University of the Philippines Manila’s Department of Social Sciences, said the resignations have eroded the ICI’s credibility and, with it, public confidence in the administration’s ability to deliver on its promises.

“The timing reinforces the public’s negative perception and fuels discontent,” he said, noting that the declining net trust ratings of top government officials and reports of former Department of Public Works and Highways (DPWH) officials allegedly recanting only exacerbate the problem.

Under Executive Order No. 94, which created the ICI, the commission may be dissolved by the President or upon fulfilling its mandate. The commission “was never meant to last — it was a band-aid given the urgency, and it could also just have been political theater,” political analyst Jesus Nicardo M. Falcis III told BusinessWorld via Messenger.

Public confidence has been further shaken by reports that former DPWH official Henry C. Alcantara had recanted parts of his testimony on “ghost” flood control projects, though the Department of Justice said no formal recantation had been filed.

President Marcos’ net trust rating fell to -3 in November 2025 from +7 in September, reflecting broader concerns over governance, according to a Social Weather Stations survey commissioned by Stratbase Group.

Recent developments do little to bolster the administration’s anti-corruption credentials, Mr. Ramota said, highlighting the challenge the government faces in restoring public trust.

Revised military modernization plan sought

PHILIPPINE STAR/EDD GUMBAN

A PHILIPPINE congressman on Sunday urged Congress to approve a successor to the country’s military modernization law, set to expire in 2027, saying early action is needed to maintain defense readiness amid South China Sea tensions.

House Minority Leader and Party-list Rep. Marcelino C. Libanan said enacting a follow-up modernization framework now would ensure a smooth transition to the next phase of the armed forces’ buildup.

“Congress should enact a successor modernization framework ahead of the current program’s expiration,” Mr. Libanan said in a statement. “By acting early, we can ensure the military remains capable, credible and responsive while maintaining a stable and coherent modernization strategy.”

The Philippines’ military modernization program, known as Horizon, was launched in 2012 after a naval standoff with China at Scarborough Shoal. Manila has earmarked roughly $35 billion over the next decade to upgrade its forces, including advanced warships, aircraft and missile systems in a bid to counter China’s growing military presence in the region.

Manila and Beijing have overlapping claims in the South China Sea. While a 2016 United Nations-backed arbitral tribunal ruled that China’s expansive claims under the so-called “nine-dash line” are illegal, Beijing has rejected the decision.

The sea dispute has sparked repeated confrontations at sea, including reported ramming and water cannon incidents against Philippine vessels.

The modernization law was first enacted in 1995, initially funding the military for five years with P50 billion. A 2024 report by the Congressional Policy and Budget Research Department highlighted a P2.1-trillion shortfall in funding for the program, with about P348 billion spent on hardware upgrades since 2002.

Under the 2026 budget, the Marcos administration allocated P40 billion for defense modernization. Defense Secretary Gilberto C. Teodoro, Jr. has urged Congress to amend the law to better adapt the modernization framework to changing threats and modern warfare technology.

Mr. Libanan’s call underscores the administration’s challenge to balance upgrades with fiscal planning, as Manila faces regional security pressures and a pressing need to maintain a credible military posture. — Kenneth Christiane L. Basilio

PAGASA: LPA may form next week

DOST-PAGASA

THE Philippines may see a low-pressure area (LPA) form later this week, potentially adding to rainfall over the eastern parts of the country, according to the state weather bureau on Sunday.

According to a 5 a.m. weather forecast, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said a “potential” LPA could develop between Wednesday and Friday, bringing scattered rains over the eastern sections of the Visayas and Mindanao, including the Bicol Region.

As of Sunday, no LPAs were monitored inside or outside the Philippine area of responsibility, it added.

Ilocos and the rest of Central Luzon will see partly cloudy to cloudy skies with isolated light rains, also due to the amihan, or northeast monsoon.

The shear line will cause cloudy skies with scattered rains and isolated thunderstorms over Quezon, Cagayan, Isabela and Aurora.

Meanwhile, easterly winds will bring cloudy skies with scattered rains and thunderstorms over Bicol, Eastern Visayas, the Dinagat Islands, and parts of Surigao, while the rest of the country may experience isolated rain showers or thunderstorms. — Chloe Mari A. Hufana

Mayon still under Alert Level 3

MAYON Volcano spews ash and lava as seen from Legaspi City, Albay on June 11, 2023. — PHILIPPINE STAR/EDD GUMBAN

THE Mayon Volcano in Albay Province remains restless, with intensified rockfalls and lava emissions, the state seismology agency reported on Sunday.

In a bulletin, the Philippine Institute of Volcanology and Seismology (Phivolcs) said that the volcano has continued to emit lava, with a visible crater glow.

The agency has also logged 256 rockfall events and 41 pyroclastic density currents (PDCs) or “uson” in the past 24 hours.

It also warned of possible hazards, including landslides or avalanches, ballistic fragments, lava flows and lava fountaining, moderate-sized explosions, and potential lahar flow during heavy and prolonged rainfall.

The agency added that the volcano continues to emit moderate ash plumes seen reaching 200 meters high. The ash column was reportedly drifting in a northeast direction.

It also reported that the volcano has been emitting 777 metric tons of sulfur dioxide flux a day since Jan. 10.

Phivolcs said that Alert Level 3 remains in effect over the volcano, warning of potential increased lava flows, rockfalls, pyroclastic density currents, and ash emissions.

The seismology agency has warned the public not to enter the six-kilometer radius Permanent Danger Zone and the Extended Danger Zone without vigilance.

It had also prohibited flying of any aircraft close to the volcano. — Adrian H. Halili

World Bank withdraws BoC support

PHILSTAR FILE PHOTO

THE World Bank has withdrawn its support for the modernization of the Bureau of Customs (BoC), citing legal issues, institutional capacity constraints, and the program’s slow progress.

In a note dated Dec. 27, the multilateral lender said it has pulled out its $88.28-million or P4.3-billion financing for the Philippines Customs Modernization Project (PCMP).

In October 2020, the World Bank’s board of executive directors approved its loan for the project designed to improve the BoC’s efficiency and lower trade costs.

The program was intended to support traders, exporters, importers, port operators, shipping companies, and transport providers.

It took effect on Jan. 28, 2021, and was launched on March 26 of the same year. It was later restructured in June 2022 as the World Bank updated the results framework and its monitoring and evaluation plan for the project’s key indicators.

A temporary restraining order issued before the project’s implementation prevented the BoC from procuring its customs processing system (CPS) and eventually stalled the project’s progress.

“This legal dispute created uncertainty in the viability for the entire project, given the relative importance of the CPS, and halted progress on essential ICT (information and communications technology) investments at the core of the modernization of customs,” the World Bank said, adding that the BoC and the Department of Finance later canceled the project amid a negative outlook on the issue.

The World Bank also noted that the project was delayed as Customs encountered issues with its staff.

It likewise attributed the program’s cancellation to slow disbursement and low resource utilization, noting that only 5% of the fund had been released by the time of the cancellation.

“The cancellation of the PCMP reflects the complex interplay of procurement, institutional, and legal challenges in large-scale ICT modernization projects,” the World Bank said. “The lessons learned from this experience should inform future operations in the Philippines and similar contexts, emphasizing the need for robust risk management, capacity building, and adaptive project design.”

The Customs modernization program costs $104.38 million or P5.45 billion. — Katherine K. Chan

House to pass social welfare bills

PHILIPPINE STAR/EDD GUMBAN

HOUSE of Representatives plans to pass several social welfare and governance measures when Congress resumes in the last week of January, its majority leader said on Sunday, as he touted the chamber’s approval of priority bills by end-2025.

In a statement, House Majority Leader and Ilocos Rep. Ferdinand Alexander “Sandro” A. Marcos III said the chamber approved on final reading 12 priority bills, while five were cleared at the committee level. About 15 remain at committee level, with 17 more queued for hearings.

“Our target when we return from recess is to move as many of the social protection, health, education and good governance measures up the pipeline,” he said.

Congress went on a later‑than‑usual break on Dec. 29 after the annual budget process came under intense scrutiny amid a widening corruption scandal over flood control projects.

Lawmakers are set to reconvene on Jan. 26.

President Ferdinand R. Marcos, Jr.’s administration has set 44 priority measures for Congress, framed as a roadmap to attract investment and modernize state institutions.

Rep. Marcos said the House approved on final reading amendments to the Energy Regulatory Commission and waste‑to‑energy measures, along with a bill institutionalizing cash aid for indigent Filipinos. Lawmakers also passed changes to the decades‑old bank secrecy law. — Kenneth Christiane L. Basilio

Makati grants property tax relief

PHILIPPINE STAR/MICHAEL VARCAS

THE Makati local government unit (LGU) urged landowners in the city to pay their annual real property tax (RPT) dues on or before Jan. 20 to avail tax reliefs.

“I urge Makati residents and businesses to pay their annual RPT dues on time and enjoy substantial savings from the newly approved 15 percent relief on land taxes granted by City Ordinance No. 2025-A-040 for a period of three years,” Mayor Maria Lourdes Nancy S. Binay was quoted as saying in a statement on Sunday.

This means that a homeowner currently paying P100,000 in annual real property taxes could save up to P15,000 each year until 2027; while owners of commercial properties, paying P500,000 in real property taxes on land could save P75,000 annually.

The ordinance was enacted on Dec. 9 and approved by Ms. Binay on Dec. 11 last year. It supersedes City Ordinance No. 2025-047, which was repealed over technical defects.

“After careful review and comprehensive study, we recognized that our taxpayers need genuine, meaningful relief,” Mayor Binay said. “This 15% across-the-board reduction on land taxes demonstrates our commitment to easing the financial burden on Makati residents while maintaining fiscal responsibility and sustaining essential public services.”

Makati also noted that tax relief will be implemented retroactively, which means any payment made last year will be adjusted to reflect the 15% reduction.

When combined with the 10% early bird discount granted to non-delinquent taxpayers, or those paying full-year RPT by Jan. 20, the LGU said taxpayers could avail up to 25% in savings. A 5% relief will be granted to those who will make prompt quarterly payments. — CAT

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