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House clears Manila Water, Maynilad franchise bills

Patrizhialreyes, CC BY-SA 4.0 , via Wikimedia Commons

The House of Representatives approved on Tuesday measures to grant the franchises of Manila Water Co., Inc. and Maynilad Water Services, Inc. on third and final reading.

Voting 206-7-0 for both bills, lawmakers approved on third and final reading House Bills 9422 and 9423, which grant separate 25-year congressional franchises to the two companies.

If enacted, these will extend the authority of the water concessionaires to establish, maintain waterworks and sewerage systems in Metro Manila and nearby provinces.

The approval comes after Manila Water and Maynilad signed their revised water concession contracts with the government through the Metropolitan Waterworks and Sewerage System (MWSS) on March 31, 2021 and May 18, 2021, respectively.

Bayan Muna Party-list Rep. Carlos Isagani T. Zarate criticized the approval of the bills, noting the speedy process by the the House Committee on Legislative Franchises without scrutinizing and debating on the provisions of the new concession agreements.

“In fact, even the MWSS-Corporate Office itself has expressed issues with the franchise proposals. Moreover, consumers were not consulted [on the proposals],” he said.

He expressed concern over the charges that have been imposed on consumers such as environmental charges, rate rebasing, and unrelated company expenses such as donations and flowers.

Cagayan de Oro City Rep. Rufus B. Rodriguez also urged the House leadership on Wednesday to recall the approval of the measures. He added that he would have debated on whether concessionaires are required to install sewerage system and plants along with the matter on “systems loss.”

“Why should we pay for water or electricity that is pilfered or stolen, that is lost due to leaks, negligence, inefficiency, and other causes beyond the control of the consumer? Like electricity, is wasted water subjected to the 12-percent value added tax,” Mr. Rodriguez said.

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

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Russell Louis C. Ku

Jobless Filipinos reach 3.76 million in June

PHILIPPINE STAR/ MICHAEL VARCAS
Preliminary results of Philippine Statistics Authority’s latest Labor Force Survey showed there were around 3.764 million unemployed Filipinos in June, inching up from 3.730 million in May. — PHILIPPINE STAR/ MICHAEL VARCAS

THE RANKS of jobless Filipinos and those employed but wanting more work increased in June, government data showed on Tuesday, reflecting the impact of ongoing quarantine restrictions amid the pandemic.

Preliminary results of Philippine Statistics Authority’s latest Labor Force Survey showed there were around 3.764 million unemployed Filipinos in June, inching up from 3.730 million in May.

Unemployment rate was steady at 7.7% in June, unchanged from the previous month. The rise in unemployment despite a steady jobless rate can be explained by the increase in the participation rate, which indicates more Filipinos have entered the labor force.

Philippine labor force situation (as of June 2021)

Meanwhile, the underemployment rate — the proportion of those already working but still looking for more work or longer working hours — worsened to 14.2% in June from 12.3% in May. This translated to 6.409 million underemployed Filipinos, up from 5.492 million in the preceding survey round.

The size of the labor force was approximately 48.840 million in June, up from 48.446 million in May. This brought the labor force participation rate to 65% of the country’s working-age population in June from 64.6% the previous month.

The employment rate remained unchanged at 92.3% in June. In absolute terms, however, the number of employed Filipinos went up to 45.075 million in June from 44.716 million previously.

The service sector made up 57.6% of total employment in June, slightly down from the 57.8% cited in May. The industry sector likewise saw its employment rate go down to 18.1% during the period from 18.4%.

Meanwhile, agriculture had an employment rate of 24.3%, up from 23.8%.

“The labor force survey results for June 2021 show the limits of job creation without major relaxations in quarantine restrictions, especially in the National Capital Region,” Socioeconomic Planning Secretary Karl Kendrick T. Chua, Department of Finance Secretary Carlos G. Dominguez III and Department of Budget and Management Officer-in-Charge Tina Rose Marie L. Canda said in a joint statement.

They noted there were around 400,000 jobs created on a net basis between May and June.

“Since January 2020, net job creation has totaled 2.5 million, indicating that the economy has exceeded the pre-pandemic employment level after losing 8.7 million jobs during the height of the quarantines in April 2020,” the economic managers said.

Despite the increase in underemployment rate from May, they noted that June was still “much lower” than the figures posted in the first four months of the year. These figures ranged from as low as 16% in January to as high as 18.2% in February.

“With the emergence of the COVID-19 (coronavirus disease 2019) Delta variant, the government has prioritized arresting the spread of this more contagious virus through more proactive quarantines in high-risk areas and an accelerated vaccination program. These actions are crucial in ensuring that economic gains in recent months will resume once we have addressed this current threat,” they added, referring to the more infectious variant of COVID-19.

Metro Manila and its nearby provinces will once again be placed under an enhanced community quarantine (ECQ) from Aug. 6-20 to help curb a possible Delta-driven surge in COVID-19 cases.

In an e-mail, University of the Philippines Professor Emeritus Rene E. Ofreneo said any concrete assessment of the changing labor market conditions is difficult due to the rolling lockdown and relaxation programs across the country.

Nevertheless, he pointed to the increase in the proportion of unpaid family workers to total employed at 8.8% in June versus the 5.9% in January, as well as the decline in those employed in private establishments to 46.9% from 49% during the same period. He attributed these results to “limited jobs in the flattened formal labor market [and the] limited income and livelihood opportunities in the large informal sector.”

MORE JOB LOSSES
Economists expect the job market to incur losses in the coming months given the spread of the Delta variant.

“We expect both unemployment and underemployment figures to trend higher in August with the ECQ, and uncertainties will still provide some degree of caution in terms of stability in the labor market,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mail.

“However, with the pace of vaccinations picking up, including those of workers in essential industries (A4 sector) in Metro Manila and eight other areas, there is a higher chance of a fast recovery in the labor figures. Compared with the start of the year, overall employment has gone up by 9.3% [in June],” he added. 

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said it might take a while for the economy’s job figures to return to pre-pandemic levels.

“The continued downtrend in the jobs market coincided with authorities moving hurriedly to relax conditions and trim restrictions with little impact on the numbers. This suggests that previous suggestions from NEDA (National Economic and Development Authority) that the unemployment rate will remain elevated at 7-9% for the next two years will likely hold true,” Mr. Mapa said in a statement to reporters.

“We’ve heard several times that the economy can fix itself by simply relaxing restrictions and we know now that this may not be the case,” he added.

Meanwhile, the economic managers said that although the reimposition of ECQ may temporarily impact employment outcomes in August, the government looks to maximize this period to accelerate inoculation in high-risk areas.

The country has administered 20.9 million doses of COVID-19 vaccines as of Aug. 1, with around 10 million of those carried out in July.

“With this rapid progress in the rate of inoculation and the expected arrival of 132.7 million doses in the next six months, we are confident that we can vaccinate 70 million Filipinos or the entire adult population by the end of 2021,” they said. — Bernadette Therese M. Gadon with inputs from Beatrice M. Laforga and Luz Wendy T. Noble

PHL recovery hopes lie in private investments

PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINE economy’s recovery will depend on how quickly business confidence is restored, which will in turn boost private sector investments, Moody’s Investors Service said.

The ratings agency warned that the more contagious Delta variant of the coronavirus disease 2019 (COVID-19), the reimposition of strict lockdowns and the run up to the May national elections could pose downside risks to growth this year through 2022.

Prior to the crisis, private investments backed by domestic conglomerates were crucial to the Philippines’ high growth rate story, said Christian de Guzman, Moody’s senior vice-president for the Sovereign Risk Group, in a roundtable discussion.

As the coronavirus pandemic continued, capital formation was still down by 18.2% in the first quarter.

“What you’re seeing in this current context is given the persistence of COVID-19 in the Philippines, we have yet to see a restoration of that business confidence that would turn the investment picture around. This [business confidence] is something that we are looking to in terms of further evidence on whether or not investment can come back in a big way,” Mr. De Guzman said.

The economy shrank by 4.2% in the first quarter following the record 9.6% contraction in 2020.

The Philippine Statistics Authority will report second-quarter gross domestic product (GDP) data on Aug. 10.

Moody’s in July slashed its GDP growth forecast for the Philippines this year to 5.8% from 7% previously, citing its continued struggle to recover from the pandemic. This is already lower than the 6-7% full-year target by the government.

Mr. De Guzman said they are already seeing downside risks to this forecast and will revisit their estimate after the release of the second-quarter GDP and will also include the impact of the return to the most stringent form of lockdown for two weeks.

Metro Manila and nearby provinces will be under an enhanced community quarantine (ECQ) from Aug. 6-20 to help stop a possible Delta-driven surge in COVID-19 cases.

With the national elections less than a year away, Mr. De Guzman noted an election ban on public works had dampened growth in previous election years. The ban on public works starts 45 days before any regular election, or in the case of the upcoming elections — the ban is from March 25 to May 8, 2022.

He said this could affect the implementation of the infrastructure program, which the government has been using as a form of fiscal support.

For now, Moody’s expects the economy to grow by 6.5% next year.

“Unless there’s a proper preparation by the Department of Budget and Management, we may see a similar curtailment of government spending,” he said.

Government spending was the sole component in the GDP which saw growth in the first quarter at 16.1%.

Despite the country’s economic recovery lagging behind its regional peers, Mr. De Guzman noted the Philippines’ “Baa2” rating remains “well-placed” relative to similarly rated sovereigns.

“Economic outlook actually looks consistent with those of other “Baa2”-rated peers. For most of these countries, we do not expect return to 2019 real GDP levels — with the possible exception of Indonesia — until 2022. This is something that’s common to all “Baa2” countries,” he added.

Moody’s last affirmed the Philippines’ “Baa2” rating with a “stable” outlook in July 2020 along with a stable outlook which means the rating could be kept for the next 12 to 18 months.

Meanwhile, Joyce Ong, analyst at the Financial Institutions Group of Moody’s, warned that the stricter lockdown in Metro Manila may again cause banks’ asset quality to weaken.

“We think that the retail and some of the SME (small- and medium-sized enterprise) loans will continue to weigh on the Philippine banks’ loan or asset quality because these borrowers tend to have limited cash and repayment capacity to withstand prolonged disruption to business activities,” she said. — Luz Wendy T. Noble

PEZA investment pledges up 8.5%

INVESTMENT PLEDGES approved by the Philippine Economic Zone Authority (PEZA) climbed by 8.5% in the first half after coming off a low base last year.

Total economic zone investments approved as of June 30 amounted to P32.057 billion, based on 119 new and expansion projects, the agency said in a statement on Tuesday.

The investment promotion agency set a 7% investment growth target this year as it anticipates more interest from foreign firms after the passage of the law cutting corporate income tax and reforming the tax incentives system.

PEZA last year registered just P95.03 billion in pledges, down by 19.15% from 2019 after lockdown restrictions declared to contain the coronavirus disease 2019 (COVID-19) pandemic dented investor confidence. The PEZA board failed to meet during initial lockdown that began in mid-March 2020.

For the first half of 2021, most new investments came from Japan, South Korea, India, Hong Kong, and China, along with investments from Germany, Austria, France, Canada, and the United States.

The key industrial region of Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) received the most investment pledges with P10 billion, followed by Central Visayas, the Davao Region, and the National Capital Region.

In June alone, PEZA approved 62 projects. Among them, 22 are information technology projects while 20 are export manufacturing enterprises. The rest are facilities and economic zone development projects.

“These projects are essential especially as we continue to go back to our vibrant and booming economy,” PEZA Director-General Charito B. Plaza said.

Exports reported by the agency from Jan. 1 to May 31 amounted to $24.781 billion, or 23.35% higher than the same period last year. Direct employment went up 8.58% to 1.6 million during the same period.

“As we all move forward towards herd immunity and reopening our economy, PEZA is positive that we can fulfill the last few months of 2021 with flying colors. The COVID-19 pandemic cannot stop us from performing at our best and ensuring that we continuously attract more investments, generate exports, and produce jobs for millions of Filipinos even post-pandemic,” Ms. Plaza said.

In the first quarter, PEZA-approved investment pledges went up 53.87% to P25.382 billion based on 57 newly approved projects.

The agency said that it continues to promote the creation of special economic zones, especially in the countryside. It had announced plans to restructure its services to create more regional presence. — Jenina P. Ibañez

China Lianhe maintains Philippines’ AAA rating

CHINA LIANHE Credit Rating Co. maintained its “AAA” credit rating for the Philippines with a “stable” outlook, as it expects economic recovery to begin this year.

The government’s Investor Relations Office (IRO) said the affirmed rating signals the “highest level of confidence” on the country’s ability to pay its debt obligations despite the impact of coronavirus pandemic.

A stable outlook means the country’s rating is likely to be kept within the next 12 to 18 months.

“This latest rating action from Lianhe bodes well for the Philippines’ ability to continue accessing financing from Chinese investors, such as via sale of government bonds, at low interest rates,” IRO said in a statement.

Based on Lianhe’s credit rating methodology, an “AAA” rating reflects that a sovereign has extremely strong capacity to pay its financial commitments; is highly unlikely to be affected by adverse economic conditions; and has the lowest expectation to default on its debt.

Lianhe in a July 28 Philippine report said it expects the country to grow by around 7% for 2021 and 2022. The government set a 6-7% and 7-9% gross domestic product (GDP) growth for this year and 2022, respectively.

The Philippines’ GDP shrank by a record 9.6% last year, and by 4.2% in the first quarter.

The ratings agency noted that while the Philippines also suffered a pandemic-induced recession like many countries, its finances remained manageable due to revenues sourced through tax reforms prior to the crisis.

“Although the fiscal deficit widened further, government debt remained within acceptable threshold….Looking forward, the Philippines’ economic and fiscal performances are expected to recover in 2021 and 2022 on the back of gradually easing pandemic and continuous tax reforms,” Lianhe said.

It believes the strength of the Philippine economy is reflected through external indicators such as the resilience of cash remittances from overseas Filipino workers and receipts from the business process outsourcing industry. It also cited the country’s low external debt level and its capacity to pay such foreign obligations seen through ample current account receipts and foreign reserves.

“The debt structure of the Philippines remains relatively stable in 2020. Ample domestic liquidity has allowed the country to source from domestic markets to fund the majority of its financing requirements while minimizing foreign exchange risks. Domestic debts accounted for 68.3% of the total at end-2020,” the rating agency said.

Lianhe expects the country will return to its pre-pandemic growth path and fiscal consolidation when the pandemic subsides.

Finance Secretary Carlos G. Dominguez III said that while China accounts for a relatively small portion of the country’s outstanding debt, the affirmed “AAA” rating is an assurance of warm reception from the Chinese market for potential bond issuances.

In 2018, the Philippines raised RMB 1.5 billion ($230 million) through its maiden sale of Panda bonds which were oversubscribed by 6.3 times. This was followed by another issuance in 2019 when the country raised RMB 2.5 billion ($363 billion) through Panda bonds that were oversubscribed 4.5 times.

“The importance of fiscal discipline cannot be overly emphasized. Because of it, the Philippines has enjoyed creditor and investor confidence, which has led to favorable terms like lower interest rates on government borrowings and, therefore, more space in the national budget for vital expenditures like infrastructure, social services, and COVID-19 response,” Mr. Dominguez said.

In July, Fitch Ratings downgraded its outlook for the Philippines to “negative” from “stable,” which means the country’s investment grade “BBB” rating could be lowered in the next 12 to 18 months. Fitch noted the country’s medium-term growth outlook has deteriorated due to the possible impact of the pandemic.

Meanwhile, S&P Global Ratings in May affirmed its “BBB+” rating with a “stable” outlook for the country in May, citing expectations of a healthy economic recovery that will support the improvement of its fiscal standing.

Moody’s Investors Service last affirmed the Philippines’ “Baa2” rating with a “stable” outlook in July 2020. — Luz Wendy T. Noble

Ayala Land profit climbs in ‘challenging’ times

AYALA Land, Inc. (ALI) on Tuesday said it generated P3.3 billion in the second quarter, over 16 times the P426-million income it logged year on year as revenues also grew by 90%.

In the April-to-June period, the company’s topline reached P24.3 billion from P12.55 billion.

“The pandemic continues to provide an extremely challenging environment for majority of our business lines,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in a statement.

The company registered a 34% growth in net income to P6 billion in the first six months, while consolidated revenues improved by 19% to P49 billion.

“Improvement in our performance in the first half of the year was driven primarily by our property development business, with residential demand showing resilience and construction progress driving revenue recognition,” Mr. Dy said.

Property development revenues grew by 37% to P34.1 billion due to progress in construction and higher sales bookings.

The company said its sales reservations in the second quarter grew by 45% to P19.7 billion year on year due to sustained local demand, prompting a 26% improvement in first-half sales reservations to P48.2 billion.

Meanwhile, the reimposition of community quarantines affected commercial leasing revenues, which declined by 26% to P9.5 billion from P12.9 billion year on year.

Shopping center revenues also went down by 43% to P3.4 billion from P5.8 billion due to limited operations and as the company granted discounts to tenants. Meanwhile, revenues from hotels and resorts dropped 42% to P1.2 billion from P2.1 billion.

“Office leasing revenues totaled P4.8 billion, a very slight improvement from last year as business process outsourcing and HQ operations cushioned the impact of POGO (Philippine offshore gaming operators) cancelations,” the company said.

ALI allotted P100 billion for residential launches this year. It has since launched 14 projects with a total value of P44.3 billion in the first six months.

Eight of the projects were launched in the second quarter, which are: Anvaya Cove S3 in Bataan, Bayview Heights in Misamis Oriental, Averdeen Estates Phase 1 and Southdale Settings in Nuvali, Laguna, Makati Southpoint Tower 2 and Astrea Tower 2, Amaia Steps The Junction Place, and Amaia Skies Cubao Tower 2 in Quezon City.

ALI said capital expenditures for the period totaled P32.1 billion, half of which was spent on the company’s residential projects. Meanwhile, 21% was used for estate development, and 12% was spent on land acquisition.

The company has a total land bank of 12,483 hectares nationwide, with five residential brands, 2.12 million square meters (sq.m.) of malls, 1.30 million sq.m. of offices, and 4,030 hotel and resort rooms.

AYALALAND LOGISTICS
Meanwhile, ALI subsidiary AyalaLand Logistics Holdings Corp. (ALLHC) said its net income for the quarter amounted to P82 million, while consolidated revenues totaled P663 million.

The company reported a 59% growth in the company’s net income for the first semester to P247 million from P155 million year on year.

“The business environment remains challenging, but we are steadfast in our recovery and growth plans in the industrial real estate place,” ALLHC President and Chief Executive Officer Maria Rowena M. Toweldan said in a statement on Tuesday.

For the six-month period, ALLHC’s consolidated revenues totaled P1.6 billion from last year’s P1.598 billion.

The company earned P611 million from the sale of industrial lots, 74% higher than the P351 million booked a year earlier due to increased earnings from its Pampanga, Cavite, and Laguindingan Technoparks.

Warehouse leasing revenues inched up by six percent to P204 million from P193 million.

ALLHC added 10,000 sq.m. in its GLA (gross leasable area) via ALogis Biñan, which boosted the company’s ALogis portfolio to a warehouse GLA with 224,000 sq.m. The company acquired a 4,000-pallet position cold storage facility in Laguna Technopark, which it now calls “ALogis Artico.”

The company also said it was affected by restrictions on mall operations and limited rental assistance. ALLHC’s commercial leasing revenues from its Tutuban Center and South Park Center declined by 16% to P219 million from P262 million.

ALLHC said Tutuban Center and South Park Center were given Safety Seals by respective city governments, which means that both comply with the required health safety protocols.

South Park Center is currently used as Muntinlupa’s mega vaccination site, Philippine Red Cross’s saliva RT-PCR testing site, and the Philippine Statistics Authority’s PhilSys National ID registration site.

The pause on mall operations was said to be offset by “sustained” office leasing operations in South Park Corporate Center, which logged a 100% lease-out rate.

On Tuesday, shares of Ayala Land at the local bourse declined by 0.59% or 20 centavos to close at P33.80 each, while ALLHC stocks rose by 4.56% or 18 centavos to P4.13 apiece. — Keren Concepcion G. Valmonte

Bloomberry Resorts generates ‘respectable’ results

SOLAIRE Resort & Casino operator Bloomberry Resorts Corp. finished the quarter with a “respectable” performance after trimming its consolidated net loss to P1.2 billion, 74% lower than the P4.7-billion loss incurred in the same period last year.

The company finished the quarter with a consolidated net revenue amounting to P4.7 billion, up by nearly four times from P940.9 million.

“Bloomberry generated respectable results during the quarter despite having virtually no gaming operations between April and mid-May,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said in a statement on Tuesday.

The company said Solaire “virtually had no gaming activity in the first 44 days of the quarter” and was closed to the public due to the reimposition of quarantine restrictions in Metro Manila and nearby provinces.

It reopened between mid-May and end-June through an “invite-only policy” while its casino operated according to the capacity allowed by the Philippine Amusement and Gaming Corp.

Bloomberry Resorts reversed its loss and generated consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) worth P1 billion in the second quarter, swinging from a P2-billion loss year on year.

“We benefited from high hold rates at Solaire and realized savings from our continuous group-wide cost optimization efforts,” Mr. Razon said.

Solaire posted a gross gaming revenue (GGR) of P5.7 billion in the second quarter, soaring by 725% from P687 million in the same period last year when Solaire only had 16 days of limited operations.

GGR for VIP tables amounted to P1.2 billion, while mass tables generated P2.8 billion, and electronic gaming machine GGR totaled P1.7 billion in the April-to-June period.

Meanwhile, its Jeju Sun Hotel & Casino in Korea reported nil gaming revenues as its operations have been suspended since March 21 last year.

The company’s consolidated net gaming revenue surged to P4.1 billion from P327.7 million last year. Meanwhile, Bloomberry Resorts booked a seven percent increase in consolidated non-gaming revenue to P657 million from P613.2 million.

In the first semester, Bloomberry Resorts incurred a net loss of P1.9 billion, down from the P3.3-billion loss logged year on year. The company’s net revenue inched down by one percent to P10.3 billion from P10.4 billion.

Consolidated GGR for the first half amounted to P12.6 billion, down by three percent from P13 billion.

Net gaming revenues improved by nine percent in the first six months to P8.7 billion, while non-gaming revenues dipped by 34% to P1.5 billion.

“As the pandemic continues to evolve, we hope to see more of our countrymen get vaccinated and build the much-needed immunity against the virus,” Mr. Razon said.

“I am pleased to report that all rostered team members at Solaire have received both doses of the vaccine and will be considered fully protected by mid-August,” he added.

On Tuesday, shares of Bloomberry Resorts at the stock market went up by 2.19% or 12 centavos to close at P5.60 each. — Keren Concepcion G. Valmonte

LoveYourself delivers HIV care amid pandemic

Image via US National Institute of Allergy and Infectious Diseases/CC BY 2.0/Flickr

By Brontë H. Lacsamana 

AS METRO MANILA enters another lockdown, nonprofit organization LoveYourself (LY) is ready to deliver life-saving care to people living with human immunodeficiency virus (HIV), armed with the lessons it learned in 2020. 

“We were able to create a formula of services,” said Dr. Ronivin G. Pagtakhan, LY founder and executive director, in an interview with BusinessWorld. “We just need to scale it up in a form that would reach everyone. We can’t just sustain the services we have right now.”  

To keep HIV testing going even during the pandemic, an ambulatory and mobile laboratory service called acXess by LoveYourself provides confirmatory testing, hematology, serology, and other lab services. When restrictions allow, LY opens slots for face-to-face check-ups, boosted by its staff getting fully vaccinated this March. 

A courier service, Xpress by LoveYourself, gives its drivers gender sensitivity and confidentiality training before sending them out to deliver antiretroviral medications to clients every three months.  

“We were able to make things a little bit easier for our clients,” said Dr. Pagtakhan. The pandemic pushed LY to offer telemedicine, and testing and treatment delivery via courier service after foot traffic in its community centers in Metro Manila, Bacoor, and Cebu City dropped to an alarming zero from more than 250 daily because of restrictions. 

LY tests 50,000 people for HIV every year and treats 7,300 HIV-positive clients regularly. In December 2020, the Department of Health released a study with the Philippine National AIDS Council showing an average of 21 new HIV cases being reported daily. Of the 735 confirmed cases in October 2020, 96% were male.  

“If you want to curb the epidemic, you have to target the most cases. The Philippines has always had a program for HIV; it’s just that it was too general,” said Dr. Pagtakhan, who founded LY a decade ago to address that HIV is a concentrated epidemic among MSMs (males having sex with males). 

He is also advocating for a prevention package for HIV and other sexually transmitted infections under the Philippine Health Insurance Corp., similar to the government’s tuberculosis program, which supports even those who are just at risk to develop the illness. “Now, the perception is just curative,” he said of the existing HIV package. 

Asked what he’s learned over the 10 years he’s been running LY, Dr. Pagtakhan replied: “The challenge is confronting yourself and looking really at self-awareness and self-worth. Some people just throw themselves because that’s the only way they feel accepted, loved, or liked, which is why they engage in risky sexual behaviors … If there’s a message I want people to hear, it’s that sex is not bad. Sex is in fact good, but you need to be always safer.”  

AboitizPower allots P190B to ramp up RE portfolio

ABOITIZ Power Corp. is looking at spending P190 billion to build 3,700 megawatts (MW) of new renewable projects (RE) in the next decade, the listed holdings firm said on Tuesday.

The investment will scale up the company’s “Cleanergy” portfolio, which is expected to make up a bigger share or 50% of its power generation portfolio by 2030.

Cleanergy is the firm’s brand of clean and renewable power.

By the end of 2020, its Cleanergy brand had a share of 21%, while its thermal capacity accounted for 79% of its portfolio. The company hopes to reach a 50-50 Cleanergy and thermal capacity mix by 2030.

AboitizPower hopes to reach a total attributable net sellable capacity target of 9,200 MW in the next 10 years, half of which or 4,600 MW will come from various RE sources.

“[The firm] needs to build around 3,700 MW of additional RE capacity to meet its 4,600-MW goal,” it told the local bourse in a regulatory filing.

At present, solar accounts for majority or 60% of the company’s pipeline projects which are all still in the development stage.

“We are committed to seeing through our 10-year strategy and this is only the beginning. There will be more beyond this pipeline in order for us to reach our target,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said.

He explained that the company wants to help the government achieve its target of ramping up the share of renewables in the energy mix to 35% in 10 years’ time.

On Tuesday, the Aboitiz-led firm said it was optimistic that it could reach its 2030 goal “without building any new coal-fired power plants.”

“As the largest owner and operator of RE in the Philippines in terms of installed capacity together with its partners, AboitizPower continues to invest in other renewable energy projects across the country,” it said.

“The company also aims to pursue its international aspirations with a focus on RE in high-growth geographic markets,” it added.

AboitizPower is the holding firm for the Aboitiz group’s investments in power generation, distribution, and retail electricity services.

Previously, it was recognized for the fourth time in a row as a constituent company by FTSE4Good Index series, a global index that identifies companies which show “strong” environmental, social and governance (ESG) practices.

The listed firm said its consolidated net income increased by 136% to P4 billion in the second quarter on the back of commissioning revenues from unit 1 of its new facility GNPower Dinginin located in Marveles, Bataan.

AboitizPower shares at the local bourse were unchanged at P23 apiece on Tuesday. — Angelica Y. Yang

Celebrating biodiversity through art

‘PARA SA KALIKASAN,’ a Philippines-Malaysia Joint Art Exhibition — PHOTO FROM PHILIPPINEFAUNAARTSOCIETY.CARGO.SITE

PORTRAITS of the Luzon hornbill, the Taal sea snake, the Visayan spotted deer, the Camiguin boobook (an owl), the Philippine eagle, the Malaya tiger, the Malayan sun bear, and the Borneo Pygmy elephant are just a few of the images hung on walls — now those of a zoo or conservation center, but of a fancy hotel.

The portraits are included in a physical and virtual art exhibition, “Of Art and Wine: Para sa Kalikasan,” mounted at the Conrad Manila’s Gallery C, organized by the Philippine Fauna Art Society (PhilFAS), and done in celebration of World Nature Conservation Day on July 28.

Artists from the PhilFAS collaborated with Malaysian artists from the Malaysian Art Society, Penang Art Society, and the Universiti Teknologi Mara Faculty of Arts and Design in an art exhibit which aims to raise awareness about their respective country’s native fauna and their protection and conservation.

The exhibit features 161 artworks featuring endemic species from both countries, created by 76 Filipino and 55 Malaysian artists. The works — mostly made with oil paint, watercolor, acrylic, gouache, pencil, Chinese ink, and soft pastel — are labeled with the animals’ scientific names.

“At a time when global warming is wreaking havoc around the world. It is a timely reminder that we, as human beings, must work together to protect Mother Earth,” said Norman Bin Muhamad, Ambassador of Malaysia to the Philippines, at the exhibition opening on July 28, streamed via Zoom.

“This exhibit is highly commendable for another very important reason: At the time when COVID-19 has disrupted our life as we knew it, organizers are willing and courageous enough to bring back colors and beauty to our life. More than ever, we need to be reminded that we need to fight on as the world is full of beautiful and meaningful things,” he added.

“The PhilFAS envisions a Filipino artists’ community that could help raise awareness about Philippine endemic and indigenous flora through visual arts. However, we realize that, as artists, we cannot represent only one percent of our biodiversity,” Willa Freah “Bing” Famoso Tac-an, exhibition curator and founder of PhilFAS, said.

The Philippines and Malaysia are two of the 17 megadiverse countries in the world. Both countries are home to more than 1,500 species of flora and fauna, more than half of which are endemic or not found anywhere else in the world. The term “megadiverse country” is used to refer to any of the 17 nations that have been identified as harboring the majority of Earth’s species and which have a high number of endemic species.

“Art is very powerful tool in advocating for conservation awareness. The artists are instruments in raising relevant issues. The energy, passion, creativity, and ideas they transfer in canvas affects the emotions of its viewers,” Ms. Famoso Tac-an said. “More often than not, the positive effects of art and people inspire them not only to think and to read, but moves them to actively participate in the conservation and protection of our rich biodiversity.”

“Of Art and Wine: Para Sa Kalikasan” is open to the public until Sept. 4.  For inquiries on the artworks, call 8833-9999 or e-mail conradmanila@conradhotels.com. Visit the PhilFAS website at https://philippinefaunaartsociety.cargo.site to view the 360-degree virtual art gallery. — Michelle Anne P. Soliman

Gov’t sells P35B in 10-year bonds amid strong demand

BW FILE PHOTO

By Beatrice M. Laforga, Reporter

THE TREASURY bureau raised P35 billion from reissued 10-year Treasury bonds at an auction on Tuesday, as rates moved sideways amid a strong demand for long-term debt.

The government fully awarded the bonds, which have a remaining life of nine years and 11 months.

The tenor attracted bids worth P70.733 billion, or twice as much as the initial offer, prompting the bureau to open the tap facility to raise another P7 billion.

The average yield on the 10-year bonds was 3.914%, 8.6 basis points lower than its coupon of 4% when the notes were first offered on July 21.

It was also a tad lower than the tenor’s secondary market rate of 3.9006% before the auction.

The sideways movement showed the market’s strong bias on long-tenor debt amid a steady inflation outlook, National Treasurer Rosalia V. de Leon told reporters in a Viber group message.

A bond trader said the rate had fallen within market expectations.

A BusinessWorld poll of 15 analysts last week yielded a median estimate of 4% for July inflation amid lower meat prices after the government eased import tariffs. This is expected to offset the higher costs of oil and other food items.

This could be the first time inflation would fall within the 2-4% target of the central bank since the 3.5% inflation in December. This would also be slower than 4.1% in June but still faster than 2.7% a year earlier.

The Philippine Statistics Authority will report July inflation data on Thursday.

“Lower yields versus firmer bids were attributed to growth outlook concerns as some parts of the country enter a lockdown,” the trader said in a Viber message.

Metro Manila will be under the strictest lockdown level on Aug. 6 to 20 to prevent the further spread of a more contagious Delta coronavirus variant.

The Octa Research Group from the University of the Philippines on Sunday flagged a fresh surge in coronavirus infections in the capital region, suggesting that the Delta variant was freely moving in the community.

The capital region reported 1,740 infections on July 31, the highest since May 10, it said. The weekly average of new coronavirus cases in the region rose by 40% to 1,279 from a week earlier, it added.

The increase could not be easily explained by Alpha or Beta variants that have been managed, OCTA Research fellow Fredegusto P. David said. There might be 300 new Delta variant infections daily in Metro Manila.

Iloilo, Cagayan de Oro City and Gingoog City in Misamis Oriental will also be under a hard lockdown until Aug. 7 due to rising coronavirus infections.

The Treasury bureau is looking at raising P200 billion from the local market this month — P60 billion via weekly offers of Treasury bills and P140 billion from weekly auctions of T-bonds.

The government seeks to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit that is expected to hit 9.3% of economic output.

Post-stroke, post-surgery rehab essential for full recovery — medical experts

UNSPLASH

THOUGH STROKE recovery starts in an in-patient setting, or once a patient is stable enough to undergo bedside rehabilitation, the first six months afterward — known as the maximal recovery phase — are crucial in regaining mobility, according to specialists from Cardinal Santos Medical Center (CSMC) at a webinar on movement-related pain in July.  

“Pain, weakness, and immobility are the foremost reasons a patient is referred to rehabilitation medicine,” said Dr. Eric Sherwin T. Basuil, Chairman of CSMC’s rehabilitation medicine department. “Often each of the three would lead into the other and together would form a vicious cycle that would prevent the patient from functioning optimally.”  

Last year, stroke was the second leading cause of death globally, accounting for 11% of deaths, according to a 2020 report by the World Health Organization. In the Philippines, cerebrovascular diseases, which include stroke, were the third leading cause of death in 2020, accounting for about 59,700 deaths or 10.4% of the total, based on a 2021 report by the Philippine Statistics Authority.  

ADDING LIFE TO YEARS
Rehabilitation is important for post-surgery recovery of any body part immobilized after a procedure. Therapeutic interventions that can help include medicines, exercises, physical modalities like temperature and electroshock, orthotics that protect or stabilize certain body parts, or prosthetics which replace limbs, explained Dr. Basuil.  

“There’s also what we call neuroplasticity. Our body is very adaptive, so even after months or years pass, we still expect recovery from the patient,” added Dr. Romil M. Martinez, an active consultant of the rehabilitation medicine department, on the importance of maintaining rehab after a stroke or surgery.  

Juan Rafael “Nico” C. Montaño, a 21-year-old patient, discovered he was unable to open his right hand after he had surgery to remove a tumor in his spine that caused unbearable neck and back pain. 

Taking Dr. Basuil’s advice, Mr. Montaño went to CSMC thrice a week for rehab sessions with physical therapists who guided him through exercises that would allow him to open his hand and get grip strength back. “With their help, I was able to [recover], and now I’m able to open my hand,” he said. 

Physical therapy is about keeping the patient moving, whether it’s through simple home exercises or with the help of equipment in a rehabilitation center. A specialist can give instructions and create a program so the joints regain range of motion, said Dr. Martinez.  

“[Physical therapists’] primary concern is with movements, making your muscles strong and stretching the limbs,” he added, emphasizing the need to work towards better mobility. “It’s really just movement, stretching, and a little bit of exercise.”  

For post-stroke patients, problems may include writing, eating alone, or grooming and clothing oneself, which occupational therapy can address with activities to develop independence. Meanwhile, those whose speech was affected can get speech therapy, which helps strengthen oral muscles with tongue exercises for better vocalization or swallowing.  

CSMC’s rehabilitation facilities include upper extremity robotics services that allow patients to receive contactless therapy during the pandemic. “Medicine may add years to your life, but rehabilitation medicine adds life to those years,” said Dr. Basuil. — Brontë H. Lacsamana