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Help frontliners and marginalized communities fight COVID-19 by donating your Globe Rewards points

As celebrations continue this September, dubbed as 917 month, Globe hopes to rally its customers to help in the fight against COVID-19 by encouraging them to donate their Globe Rewards points to provide support to frontliners, COVID-19 patients and indigent families.

Globe supports several initiatives that directly impact the ongoing battle against the dreaded disease. It also customized its digital solutions and platforms like GlobeOne app to provide customers a way to show malasakit and support for their chosen advocacies anytime and from the safety of their homes.

“As a company, we strive to do our part in contributing to the solution against this ongoing pandemic. Since the launch of the donation feature on Globe Rewards, the support from our customers has been nothing but overwhelming. Through our collective support for our partners in the healthcare sector, we hope to continue working together in alleviating the local health situation,” said Yoly Crisanto, Globe Chief Sustainability Officer and SVP for Corporate Communications.

Globe has spearheaded several donation drives that helped organizations at the forefront of the global health crisis. Company employees organized #OneGlobeVsCOVID and raised over P27.5 million in a fundraising initiative to provide much-need personal protective equipment, face shields, and face masks to healthcare workers in 60 hospitals.

In April 2020, a total of 491,821 Globe subscribers also raised more than P36 million in cash donations through their Globe Rewards points, benefiting health workers and frontliners in 10 medical institutions nationwide. The level of engagement witnessed from the subscribers was historic for Globe Rewards’ Donate program as it was the highest amount raised for a single campaign.

Globe Rewards is also a partner of the PGH Medical Foundation and staunchly supports the organization’s advocacy for caring for pediatric cancer patients and frontliners and patients affected by the pandemic. In the recent Brigadang Ayala initiative that supports hospital personnel, PGH medical director, Dr. Gerardo Legaspi, thanked Globe and Globe Rewards for their unwavering support.

“In the early days when resources were scarce, they were ready to lend a hand, making us equipped with ventilators, testing machines, PPEs all until we’ve been sufficiently supported by other groups for us to continue operating. Nagulat kami, even as we sleep, the Globe Rewards continue to pour in. Every time I check with the [PGH] foundation, may pera pa. We have the opportunity now to put the attention on the most important resource of our hospital, which is our human resource,” said Dr. Legaspi of the initiatives that raised more than P23 million for the PGH Medical Foundation.

Aside from healthcare support, Globe also extends assistance to families going hungry due to current mobility restrictions. Globe sought to address this by partnering with the Walang Iwanan Alliance (WIA), a citizen-led initiative to build a platform that unites all efforts to mitigate or end hunger in the most vulnerable communities across the country, especially those deeply affected by the pandemic.

Last year, the company donated more than P4 million to the cause. It was followed by another donation worth P1.2 million, which came from the fundraising drive initiated by our customers through Globe Rewards.

The impact of the pandemic has left thousands suffering while natural disasters only compounded their problems. This year, WIA was able to focus its initiatives on helping feed families at local food banks and provide community pantry services for those who needed it most.

Continue supporting COVID-19 related initiatives by donating via Globe Rewards. Download the new GlobeOne app now. Atin ang #GDayEveryday.

Globe strongly supports the United Nations Sustainable Development Goals, particularly UN SDG No. 9 for Industry, Innovation, and Infrastructure. Globe is committed to upholding the United Nations Global Compact principles and contributing to 10 UN SDGs.

Learn more by visiting www.globe.com.ph.

 

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National Artist Bienvenido Lumbera, 89

National Artist for Literature Bienvenido “Bien” Lumbera passed away on the morning on Sept. 28, 9 a.m., due to “complications of stroke,” said his family. He was 89 years old. 

A poet, librettist, dramatist, and critic, Lumbera was proclaimed a National Artist in 2006, with the citation pointing out that “as a poet, he introduced to Tagalog literature what is now known as Bagay poetry, a landmark aesthetic tendency that has helped to change the vernacular poetic tradition.” 

Among his best-known works were Likhang Dila, Likhang Diwa, a collection of poems in Filipino and English (1993); Balaybay, Mga Tulang Lunot at Manibalang (2002); and Sa Sariling Bayan, Apat na Dulang May Musika (2004). He also wrote the libretto for the rock opera ballets Tales of the Manuvu, and Rama Hari for Ballet Philippines.

He had taught literature, creative writing, and Philippien Studies in various universities in the Philippines including the Ateneo de Manila University, De La Salle University, the University of the Philippines Diliman, and the University of Santo Tomas. He was Professor Emeritus at the Department of Filipino and Philippine Literature in UP Diliman. 

Always a progressive, Lubera was arrested during Martial Law, and was detained from January to December 1974. 

Through the years he co-founded many organizations, including the Philippine Studies Association of the Philippines and Manunuri ng Pelikulang Pilipino. He was the founding chairperson of the media group Kodao Productions and a member of the Concerned Artists of the Philippines and the Bagong Alyansang Makabayan. 
 
As news of his passing spread, messages poured out on social media.  

Veteran Journalist Inday Varona-Espina wrote: “Paalam (goodbye) Bien Lumbera: Filipino poet, critic and dramatist. He is a National Artist of the Philippines and a recipient of the Ramon Magsaysay Award for Journalism, Literature and Creative Communications. He won numerous literary awards, including the National Book Awards from the National Book Foundation, and the Carlos Palanca Memorial Awards. A former political detainee, Mang Bien was a staunch member and supporter of many progressive groups.” 

The Director’s Guild of the Philippines noted Lumbera’s role in the Philippine film industry: “Dr. Lumbera also led the Concerned Artists of the Philippines, sat as a progressive Vice-Chairman of the 1998 Movie and Television Review and Classification Board, and counted among the fiercest advocates for free expression. Not only a man of the arts, he was truly a man of the people.”  

Writer and activist Lualhati Bautista wrote on Facebook: “Paalam, Bien, (Bienvenido Lumbera), Pambansang Alagad ng Sining. Isa ka sa mga taong mahal ko talaga. Pakikiramay sa iyo, Cynthia, sa pamilya, sa lahat ng manunulat, estudyante, at mga kaibigan. Dala mo ang aming taos-pusong pagpupugay.” (Goodbye, Bien, National Artist. You are a person that I truly love. I give my condolences to you, Cynthia, to the family, to all the writers, students, and friends. You carry with you are full-hearted honor).  

The UP Department of Speech Communication and Theater Arts pointed out that Lubera had written plays for the theater group Dulaang UP, including Hibik at Himagsik nina Victoria Laktaw. “He was an inspiration and mentor to many Filipino writers,” they wrote in a Facebook post. “Maraming salamat po sa lahat, Lolo Bien!” (Thank you for everything, Grandfather Bien!) 

Born on April 11,1932, Mr. Lumbera was a native of Lipa, Batangas. He finished his Bachelor of Literature degree and master’s degree at the University of Santo Tomas, and then earned his Ph.D. in Comparative Literature from Indiana University in 1968.   

Among his many accolades are the Ramon Magsaysay Award for Journalism, Literature, and Creative Communication Arts; the Pambansang Gawad Pambansang Alagad ni Balagtas, Unyon ng mga Manunulat ng Pilipinas; National Book Awards, and the Carlos Palanca Memorial Award for Literature.  

The Cultural Center of the Philippines announced that it will host an online novena and tribute on for the fallen National Artist on Oct. 6. It said that it would be releasing information on the Necrological Service traditionally held at the CCP Main Theater for National Artists after consulting with the family. — MAPS

China’s electricity crunch is world’s latest supply-chain threat 

REUTERS
A Chinese flag is seen on the top of a car near a coal-fired power plant in Harbin, Heilongjiang province, China Nov. 27, 2019. Picture taken November 27, 2019. — REUTERS/JASON LEE

China’s energy crisis is shaping up as the latest shock to global supply chains as factories in the world’s biggest exporter are forced to conserve energy by curbing production.

The disruption comes as producers and shippers race to meet demand for everything from clothing to toys for the year-end holiday shopping season, grappling with supply lines that have been upended by soaring raw material costs, long delays at ports and shortages of shipping containers.

Chinese manufacturers warn that strict measures to cut electricity use will slash output in economic powerhouses like Jiangsu, Zhejiang and Guangdong provinces — which together account for almost a third of the nation’s gross domestic product — and possibly drive up prices.

Local governments are ordering the power cuts as they try to avoid missing targets for reducing energy and emissions intensity, while some are facing an actual lack of electricity.

Clark Feng, whose Vita Leisure Co. buys tents and furniture from Chinese manufacturers to sell overseas, said electricity curbs in the eastern province of Zhejiang, where the company is based, have dealt another blow to businesses. Fabric makers in the province that are suffering production halts have started to hike prices and postpone taking new overseas orders, he said.

“We were already struggling to ship goods overseas, and now with the production capacity restriction, it’s definitely going to be a huge mess,” said Feng. “We already had to deal with so many uncertain factors, and now there’s one more. It will be harder to deliver orders, especially for the holiday season.”

Yiwu Huading Nylon Co. Ltd., a maker of synthetic fabric nylon in Zhejiang, suspended half of its production capacity since Sept. 25 in response to the local government’s order to cut electricity consumption, according to a stock exchange filing Monday. The company expects output to resume from Oct. 1 and said it will look to minimize the impact of the closure.

PORT DISRUPTIONS
The power problems come after recent port disruptions in China rippled across global supply chains. Part of Ningbo port, one of the world’s busiest, was idled for weeks last month following a Covid outbreak, while Yantian port in Shenzhen was shut in May.

The energy crunch will weigh on China’s economy at a time when it’s already slowing because of factors such as stringent virus control measures and tighter restrictions to rein in the property market.

Nomura Holdings Ltd., China International Capital Corp. and Morgan Stanley have also either downgraded GDP growth forecasts or have warned of lower growth because of the power disruptions.

“Global markets will feel the pinch of a shortage of supply from textiles, toys to machine parts,” said Lu Ting, chief China economist at Nomura Holdings Inc in Hong Kong. “The hottest topic about China will very soon shift from “Evergrande” to “Power Crunch.”

Apple iPhone assembly operations in China are beginning to reduce their energy consumption, Pegatron Corp., a key partner for Apple Inc. and one of the assemblers of its iPhone, said on Monday. The company said it’s taking energy-saving measures to comply with local government policies.

Yet the firms responsible for producing the Apple handset have avoided drastic cutbacks in production so far and appear to be getting preferential access to energy in order to keep operations going, according to people familiar with the situation.

Authorities are watching for disruption, with the People’s Daily, the official newspaper of the Chinese Communist Party, saying in an Sunday editorial that the shortages would force companies to raise the prices of goods for Chinese consumers. The government of northeast Liaoning province urged local regulators to prevent power curbs from impacting production and residential use, state broadcaster CCTV reported.

With the power crisis moving from the factory floor to people’s homes, electricity utility State Grid Corporation of China said Monday it will try its best to avoid power cuts to meet basic residential demand.

Analysts say the power shortages will inevitably impact both heavy industries such as aluminum and steel right through to downstream sectors. In the industrial hub of Guangdong, the provincial energy administration issued a notice Sunday that said large-scale cuts to factories have already been implemented.

“No one knows when the supply chain bottleneck will be overcome,” said Hao Hong, head of research and chief strategist at Bocom International. “But it is looking ominous for this winter.”

Chen Yubing, manager at Suzhou Berya Textile Technology Co. Ltd., an exporter of polyester and nylon fabric based in Zhejiang, said his company has suffered “huge losses” due to the suspension. The company’s production lines were only allowed to operate three days a week starting from early September and the latest order on Monday means it will be allowed to operate every other day. Half of the company’s sales come from overseas clients.

“We have problems delivering some orders already,” Chen said. “All we can do now is wait and negotiate with customers.” — Bloomberg

Failed TikTok deal ‘strangest thing I’ve worked on,’ Microsoft CEO says

MYRIAMMIRA-FREEPIK

Microsoft Corp’s near-acquisition of social media app TikTok last year was the “strangest thing I’ve ever worked on,” Chief Executive Officer Satya Nadella said on Monday.

TikTok had been ordered by then-U.S. President Donald Trump to separate its U.S. version from Chinese parent ByteDance because of national security concerns about the collection of U.S. users’ data. Microsoft in August 2020 began talks on the proposed acquisition but the deal collapsed by September.

Trump’s divestment push ended by the time he left office in January and no potential suitor ending up acquiring TikTok.

Speaking at the Code Conference in Beverly Hills, California, Nadella said he was looking forward to bringing Microsoft’s security, child safety and cloud expertise to TikTok.

“It’s unbelievable,” Nadella said of the experience during an on-stage interview. “I learned so many things about so much and so many people. First of all, TikTok came to us. We didn’t go to TikTok.”

“TikTok was caught in between a lot of things happening across two capitals,” Nadella continued. “President Trump had a particular point of view of what he was trying to get done there, and then it just dropped off. The [U.S. government] had a particular set of requirements and then it just disappeared.”

Nadella said what attracted ByteDance CEO Zhang Yiming to Microsoft was the U.S. company’s services related to content moderation and child safety, developed through products included in Xbox video gaming tools and on business social network LinkedIn.

ByteDance did not immediately respond to a request for comment.

Nadella said he has no idea whether the U.S. is still pushing for a deal under President Joe Biden. The Biden administration has said it is reviewing the national security concerns.

“At this point, I’m happy with what I have,” Nadella said.

He also expressed support for greater government regulation of cryptocurrency rules, which could stifle ransomware attacks since the ransoms often flow through opaque systems. — Reuters

Unregulated crypto markets will ‘not end well’ — SEC

Reuters

U.S. cryptocurrency markets and related platforms will “not end well” if they stay outside the purview of regulators, according to Securities and Exchange Commission Chairman Gary Gensler.

“There’s trading venues and lending venues where they coalesce around these, and they have not just dozens but hundreds and sometimes thousands of tokens on them,” Gensler said Monday at the Code Conference in Beverly Hills, California. “This is not going to end well if it stays outside the regulatory space.”

The regulator has previously labeled crypto as the “Wild West” and signaled that he wants more robust oversight of the markets. Last week, Republican Senator Pat Toomey called on Gensler to codify rules for the industry, rather than pursuing “regulation by enforcement.”

At Monday’s conference, Gensler declined to comment on remarks made earlier this month by Coinbase Global Inc. Chief Executive Officer Brian Armstrong that the SEC was regulating by litigation and engaging in “sketchy behavior.” — Bloomberg

Apple’s new iPhone to take longer to reach customers – analysts

Apple iPhone 13 / Apple website

Apple Inc’s customers will have to wait for a few more weeks to lay their hands on the new iPhone 13 as supply chain delays and strong demand lead to one of the longest waiting times for the phone in recent years, analysts said.

The delivery time for Apple’s iPhones after a new launch is watched by analysts as one of the measures to gauge demand for the flagship phone’s newest model. But this year, it is also shining a light on supply chain issues plaguing technology companies ahead of the holiday shopping season.

Analysts at J.P.Morgan and Credit Suisse said customers across the world who had pre-ordered the new models online would have to wait more than four weeks for the iPhone 13 Pro and Pro Max and about 2 weeks for the base iPhone 13.

In the United States, which accounts for over a third of iPhone shipments, the delivery time for the iPhone 13 series was 19 to 34 days in the second week, compared with 7 to 20 days in the first week, both greater than the lead times for the iPhone 12 Series.

Apple was not immediately available to comment on the delays in delivery times.

“While admittedly part of the expansion in the lead times is on account of the supply chain constraints, we still find the material increase in the lead time in Week 2 relative to Week 1 as an indicator of the robust demand for upgrades, likely exceeding low investor expectations into the launch,” J.P.Morgan analyst Samik Chatterjee said.

Apple’s partners Verizon, Vodafone UK and Best Buy cited high demand and product supply issues in replies to customers on Twitter. Many users on social media also flagged the delays.

“With a delay on the delivery for iPhone 13 pro max I might as well cancel! They talking (about until) October 30th,” one user said on Twitter.

On Sunday, several Apple and Tesla Inc suppliers suspended production at some Chinese factories for a number of days to comply with tighter energy consumption policies, putting supply chains at risk in the peak season for electronics goods.

The iPhone 13, priced between $699 and $1,599, comes with a sharper camera, a new bionic chip and improved connectivity. It has been available for pre-booking since Sept. 17. — Reuters

World Bank says Delta variant slowing economic growth in East Asia and Pacific

The East Asia and Pacific region’s recovery has been undermined by the spread of the COVID-19 Delta variant, which is likely slowing economic growth and increasing inequality in the region, the World Bank said on Monday.

Economic activity began to slow in the second quarter of 2021, and growth forecasts have been downgraded for most countries in the region, according to the World Bank’s East Asia and Pacific Fall 2021 Economic Update.

While China’s economy is projected to expand by 8.5%, the rest of the region is forecast to grow at 2.5%, nearly 2 percentage points less than forecast in April 2021, the World Bank said.

“The economic recovery of developing East Asia and Pacific faces a reversal of fortune,” said Manuela Ferro, World Bank Vice President for East Asia and Pacific.

“Whereas in 2020 the region contained COVID-19 while other regions of the world struggled, the rise in COVID-19 cases in 2021 has decreased growth prospects for 2021.”

The report estimates most countries in the region, including Indonesia and the Philippines, can vaccinate more than 60% of their populations by the first half of 2022. While that would not eliminate coronavirus infections, it would significantly reduce mortality, allowing a resumption of economic activity.

The damage done by the resurgence and persistence of COVID-19 is likely to hurt growth and increase inequality over the longer-term, the World Bank said.

“Accelerated vaccination and testing to control COVID-19 infections could revive economic activity in struggling countries as early as the first half of 2022, and double their growth rate next year,” said World Bank East Asia and Pacific Chief Economist Aaditya Mattoo.

“But in the longer term, only deeper reforms can prevent slower growth and increasing inequality, an impoverishing combination the region has not seen this century.”

The World Bank said the region will need to make a serious effort on four fronts to deal with the rise in coronavirus: addressing vaccine hesitancy and limitations to distribution capacity; enhancing testing and tracing; increasing regional production of vaccines; and strengthening local health systems. — Reuters

Lockdown likely hurt Q3 GDP growth

PHILIPPINE STAR/ MICHAEL VARCAS
Restaurants continue to operate in limited capacity amid the lockdown. — PHILIPPINE STAR/ MICHAEL VARCAS

By Beatrice M. Laforga, Reporter

THE PHILIPPINE economy likely grew at a much slower pace in the third quarter compared with the previous three months, after the Delta-driven surge in coronavirus cases prompted a stricter lockdown in the capital region.

Rajiv Biswas, chief economist for Asia and the Pacific at IHS Markit, told BusinessWorld that Philippine gross domestic product (GDP) was seen to have grown by 3.8% in the third quarter, sharply slower than the 11.8% expansion in the second quarter but better than the 11.6% contraction in the third quarter of 2020.

“The slowdown reflects the impact of stricter lockdown measures imposed in Metro Manila and some other areas due to escalating new COVID-19 cases during Q3 2021. This has disrupted consumption spending and also impacted adversely on many segments of industrial production,” he said via e-mail last week.

Sought for comment, Socioeconomic Planning Secretary Karl Kendrick T. Chua did not give his third-quarter GDP estimate but argued that the economy saw increased mobility this time compared with the more stringent lockdowns in 2020. He also indicated there was “some growth” in the third quarter, which ends on Sept. 30.

Local economists expected economic expansion to have slowed down in the July to September period, noting that the rise in COVID-19 cases driven by more infectious variants has hampered consumption and business activities.

Asian Institute of Management economist John Paolo R. Rivera said GDP may rise by 3% to 5% this quarter, while UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion gave a higher 5-8% forecast range.

“We have seen how damaging to the Philippine economy is the imposition of ECQ (enhanced community quarantine) like what happened from August to September. It is for this reason that I personally foresee that the Philippines is expected to see setbacks in economic growth figures for the third quarter due to the resurgence of COVID-19 infections driven by more infectious variants,” Mr. Rivera said via Viber on Sunday.

The government imposed a two-week ECQ in Metro Manila in August as it sought to contain its worst COVID-19 outbreak. This month, the government shifted to a new COVID-19 strategy, implementing granular lockdowns in areas where outbreaks are concentrated.

DELTA SHOCK
Economic shocks caused by the Delta outbreak were felt across the Association of Southeast Asian Nations economies in the third quarter, including Indonesia, Malaysia and Vietnam, according to IHS Markit’s Mr. Biswas.

He said the Philippines can only achieve a sustained economic recovery if vaccination ramps up and a bigger portion of the population is inoculated to allow the reopening of more businesses.

Around 17.7% of the Filipino population has been vaccinated as of Sept. 23. Mr. Biswas said the country’s vaccination rate remains low compared with advanced economies.

“The Philippines will continue to be vulnerable to new COVID-19 waves until the fully vaccinated share of the population reaches around 70% to 80% of the population,” he said.

“A key factor to achieving sustainable economic recovery will be ramping up the COVID-19 vaccination rate rapidly,” he added.

Mr. Rivera said outlook for the rest of the year remains highly uncertain and will depend on the country’s ability to contain new outbreaks, but the already-downgraded 4-5% growth target set by the economic team can still be achieved.

However, Mr. Biswas said IHS Markit is only expecting the Philippine economy to sustain its recovery next year, with GDP growing by 7.8% on expectations of a faster vaccine rollout by late-2021 or early 2022.

The National Economic and Development Authority estimated the long-run total economic cost of the pandemic and lockdowns could hit P41.4 trillion in 40 years.

Mr. Chua has said GDP may only go back to its pre-pandemic level by the end of 2022 or early 2023, while the growth path could only return to the pre-crisis trajectory in 10 years.

Gov’t asked to tweak WFH rules for BPOs

BW FILE PHOTO

THE PHILIPPINE Economic Zone Authority (PEZA) on Monday said it has asked the Finance and Trade departments to allow information technology-business process outsourcing (IT-BPO) companies to implement work-from-home (WFH) operations that are equivalent up to 90% of their total revenues.

This comes after the Fiscal Incentives Review Board (FIRB) released guidelines allowing registered IT-BPO firms in economic zones to extend WFH arrangements until March 2022, but required them to have at least 10% of their total employees onsite.

In a statement, PEZA said it has asked the FIRB, which is chaired by Finance Secretary Carlos G. Dominguez III, to reinstate the basis of the threshold of the WFH arrangement to gross revenue as a form of support for IT enterprises that have also been affected by the pandemic.

“This is to support their recovery and protect their employees from the risks of contracting COVID-19 (coronavirus disease 2019) in the workplace. The revenue-based computation of the threshold shall afford more protection to the employees and is more in keeping of the intent of the resolution,” the investment promotion agency said.

The statement quoted PEZA Director-General Charito B. Plaza’s letter to the Finance and Trade departments, wherein she endorsed the IT-BPO firms’ request to maintain the original WFH arrangement approved by PEZA since the start of the pandemic.

Under PEZA’s guidelines approved on March 5, 2020 and extended until Sept. 12, 2021, registered IT enterprises were allowed to engage in WFH operations to the extent of “up to 90% of their total revenues.”

Ms. Plaza said the FIRB’s new directive is a problem for IT-BPO companies because many employees are still not keen on reporting to the office amid the surge in COVID-19 cases around the country.

“While the enterprises are grateful for the extension of the WFH arrangement, the health and safety of their employees is still their primordial consideration,” she said.

“This will defeat the purpose of the extension of the WFH arrangement which is to limit the mobility of workers and lessen the pressure on public transport because they will contribute to the number of people outside even if it is possible for them to perform their jobs within the confines of their respective homes.”

The statement also quoted the IT and Business Process Association of the Philippines (IBPAP) as saying the clarification on the threshold for WFH arrangement is “a fair treatment considering that any breach that might happen would only be due to compelling circumstances such as putting the health and safety of employees as more paramount.”

IBPAP said the member companies are only following the government’s call to continue implementing WFH arrangements as the number of COVID-19 cases continue to rise.

“Our members are registered enterprises that aim to maintain their export revenue commitments and keep their people to ensure seamless delivery of services. However, there are factors affecting revenue and employee attrition that are beyond the control of the enterprise,” the organization said.

Outsourcing revenue rose just 1.4% to $26.7 billion last year from the 2019 figure, IBPAP earlier said. The industry employs around 1.3 million workers. — RMDO

Pandemic slows work on foreign-funded projects — NEDA

DPWH HANDOUT

DISRUPTIONS caused by the coronavirus disease 2019 (COVID-19) pandemic has slowed down the implementation of 59 ongoing programs and projects funded by official development assistance (ODA), the National Economic and Development Authority (NEDA) reported.

In its ODA Portfolio Review Report for 2020 released on Monday, the NEDA said the country’s outstanding ODA portfolio jumped 46.6% to $30.7 billion last year from $20.9 billion in 2019.

The increase was mainly due to the 25 ODA loans worth $9.08 billion the government obtained for its COVID-19 pandemic response last year.

The total number of ongoing projects aided by foreign loans and grants increased by nine to 357 in 2020.

Amid the ongoing crisis, NEDA identified 97 COVID-19-related issues that slowed down the implementation of 59 ongoing projects. More than half or 57 of the issues were left unresolved.

“The COVID-19 pandemic gave rise to new implementation issues, which required implementing and oversight agencies to adjust existing strategies/processes/policies and to ensure that ODA remains effective and adaptive to the new normal,” the NEDA said.

The implementation of 35 projects were either delayed or suspended when the enhanced community quarantine or the strictest form of lockdown was imposed in parts of the country. 

These projects were implemented by the departments of Transportation, Public Works and Highways, Agriculture, Agrarian Reform, Environment and Natural Resources, Health, Science and Technology, and Trade and Industry. Other projects involving the Metropolitan Waterworks and Sewerage System, Land Bank of the Philippines and National Irrigation Administration were also affected.

Other setbacks that hounded ODA-funded projects include 17 incidents of delayed delivery of materials and services; 15 instances where projects were affected since foreign and local staff were not able to travel; and 11 issues involving visas for foreign staff.

Five projects were affected by budget cuts or realignments, while another five faced procurement delays. There were three issues involving permits and clearances, while three projects faced COVID-19-related problems.

Due to these implementation issues, the NEDA said there are 21 projects that will likely be restructured this year.

“Project restructuring requests cover changes in cost and scope, extension of loan/grant and implementation duration period, and loan reallocation that are submitted by the agencies to approving bodies such as the ICC (Investment Coordination Committee) and the DBCC (Development Budget Coordination Committee),” it said.

Issues cited by implementing agencies in their restructuring requests include COVID-19 disruptions; site availability and right-of-way acquisitions; insufficient budget; procurement concerns; project uptake, processing of approvals; manpower issues; project design and other technical issues.

The government will consider this year the proposal to increase the cost of the Binondo-Intramuros and Estrella-Pantaleon Bridges project; Light Rail Transit (LRT) Line 1 South Extension project and LRT Line 2 East Extension project; and the Jalaur River water reservoir project.

Implementing agencies are asking for more time to implement the rehabilitation program of Marawi City, as well as the construction of the Central Luzon Link Expressway, Davao City Bypass, and the third phase of the Arterial Road Bypass project.

Adjustments are also being sought to extend the implementation period of the Metro Manila Interchange Construction project phase 4, the Water District Development Sector project, and the North-South Commuter Railway project.

Other key infrastructure projects that are up for restructuring this year include the proposed Metro Manila Subway, Metro Manila Bus Rapid Transit, Chico River Pump Irrigation and the planned Samar Pacific Coastal Road.

There were also expected changes to the planned rehabilitation of the national irrigation sector; the proposed project to improve flood-risk management in Cagayan de Oro River; the education program in Mindanao, among others.

Last year, NEDA received 33 restructuring requests from government agencies to reevaluate 26 foreign-funded projects, which mainly involved adjustments in infrastructure projects. — B.M.Laforga

Nearly all businesses provided aid for workers — survey

Free COVID-19 vaccines were the top support given by companies to regular employees. — COMPANY HANDOUT

NEARLY ALL businesses provided support for their workers despite the economic challenges brought by the coronavirus disease 2019 (COVID-19) pandemic, according to a survey among business groups.

The survey showed 99% of the 200 respondents said their companies extended some form of support for their regular employees, while 71% said they did the same for contractual employees. Only 65% said they gave support for workers hired through agencies.

“The survey results show that Philippine Business, in this pandemic, is a caring, nurturing and compassionate sector in our society. This reflects the true character of the good Filipino: caring, nurturing and compassionate,” Rex Drilon, chairman of the Shared Prosperity subcommittee of the Management Association of the Philippines (MAP), said in a statement.

Conducted from April 6 to May 16, the survey covered 200 respondents, mainly from the MAP, Makati Business Club (MBC) and Financial Executives Institute of the Philippines (FINEX).

The survey showed that while 61% of the respondents posted lower revenues due to the pandemic, but 55% said they maintained their workforce or even hired more.

“For employees, support was strongest for regular employees across different classes of companies. For agency and contractual employees, companies gave support especially if they were large, presumably because of more resources, or they managed to boost revenue,” the report said.

Free COVID-19 vaccines were the top support given by companies to regular employees. The survey was conducted at the time when the government’s vaccine rollout did not cover frontline personnel in essential sectors.

Less than half or 45% of the respondents said they continued to pay non-reporting regular employees, while 31% said they did the same for contractual employees and 30% for agency workers. The survey showed 43% of the respondents gave special financial assistance, cash advances and loans for employees, while only 27% extended the same to contractual employees and 25% for agency employees.

“Support provided for contractual and agency employees are almost the same, except less on flexible work arrangements,” the survey said.

For external stakeholders, the survey showed 34% of the respondents provided support for suppliers and contractors in the form of materials, logistics and advanced payments.

Also, 52% of the respondents gave assistance to clients and customers, such as extended payment terms, discounts, and waived rental payments.

The survey also showed that 73% of respondents extended support for healthcare workers, 69% released assistance to low-income communities, and 33% provided aid to other organizations. The support for healthcare workers were mostly donations of personal protective equipment (PPE) and meals, but others also provided medical, testing, and quarantine/isolation facilities as well as accommodations.

Majority or 85% of the respondents believe work-from-home and flexible work arrangements will continue, while 28% expect to continue providing financial and other aid to employees.

“The Philippine private sector always plays an outsize role in helping government respond to crises: this is already automatic,” Francisco Ed. Lim, former MAP president and current FINEX president, said. — Revin Mikhael D. Ochave

AEV to sell 25% AboitizPower stake to Japan firm

Deal with JERA for nearly $1.5B seen to boost energy projects, including LNG

ABOITIZ Equity Ventures, Inc. (AEV) is planning to sell a 25.01% stake in subsidiary Aboitiz Power Corp. to Japan-based JERA Co., Inc. for around $1.463 billion to help fund the listed holding firm’s growth plans and boost its energy arm’s initiatives.

“This transaction unlocks significant capital that will be used toward fueling the AEV Group’s growth initiatives,” AEV President and Chief Executive Officer Sabin M. Aboitiz said in a statement on Monday.

The planned sale covers 1,840,334,941 common shares in AboitizPower. AEV will still own 52% of the unit once the transaction is completed.

The transaction is subject to “necessary customary approvals,” including stockholders’ approval. A special stockholders meeting is set for Dec. 9.

Meanwhile, the Aboitiz family’s privately held parent firm will also sell to JERA an additional 1.99% stake in AboitizPower, which will bump up JERA’s stake in the listed power firm to 27%.

JERA, said to be Japan’s largest power generation company, will also be working with AboitizPower for its clean energy projects.

“We look forward to the new strategic partnership with JERA as we welcome their trust, expertise, and commitment to help the AEV Group drive change for a better world by accelerating Philippine economic growth and promoting the development of clean energy,” said Mr. Aboitiz.

The partnership includes the joint development of liquefied natural gas (LNG) for power projects as well as their fuel sourcing and management.

JERA and AboitizPower will also collaborate on the potential participation in the plant’s operations and management and in the “exploration of the use of new generation technologies.”

“We look forward to working collaboratively with JERA to achieve our 10-year vision of increasing our generation portfolio to 9,200 megawatts (MW), by adding 3,700 MW of RE (renewable energy) capacity resulting to a 50:50 balance between our Cleanergy and thermal portfolios,” said AboitizPower President and Chief Executive Officer Emmanuel V. Rubio.

Shares of AEV at the stock market went up by 2.12% or P1.10 on Monday, closing at P53.10 apiece. Meanwhile, AboitizPower shares rose 4.75% or P1.55 to finish at P34.20 each. — Keren Concepcion G. Valmonte

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