Drilon questions seeming rush to release anti-communist agency’s funds

May 4, 2021 | 9:07 pm

SENATE Minority Leader Franklin M. Drilon questioned the government’s speedy release of the anti-communism agency’s 2021 budget, noting that over half of its fund had already been released. In a statement, Mr. Drilon said the fund released to the National Task Force to End Local Communism and Armed Conflict (NTF-ELCAC) has already reached P10.68 billion as of April out of its P19-billion budget for 2021, citing data from the Budget department. The opposition senator cited in comparison the slower pace of disbursements for the rehabilitation of Marawi City that was ravaged in 2017. “Why is there a seeming rush to release the budget? Why has the release of the Marawi rehabilitation fund been slow? Where will the P10.68 billion be used?” Mr. Drilon said in Filipino. The senator said P7.54 billion out of the P10.68 billion was released in April only and P3.14 billion was given out on March 24. Mr. Drilon said addressing the coronavirus and its effects such as employment and hunger should be prioritized. “Yet, the government is giving priority to NTF-ELCAC’s anti-insurgency program rather than use the funds to expand ayuda (cash aid), buy vaccines and feed the poor,” he said. He said the Senate should scrutinize the use of the funds and compel the task force to submit a report to Congress as part of its oversight function. Mr. Drilon previously proposed to realign the budget of the NTF-ELCAC for financial aid to Filipinos most affected by the pandemic. — Vann Marlo M. Villegas

Solon wants agencies to start preparing for aid distribution under 3rd COVID-19 measure

May 4, 2021 | 9:06 pm

A LAWMAKER is calling on two executive departments to begin drafting guidelines for the distribution of cash assistance by local government units to their constituents under the still pending third law on coronavirus response. In a statement on Tuesday, AKO Bicol Rep. Alfredo A. Garbin, Jr. said, “Noting the current sentiment and preference of the House of Representatives to download Bayanihan III funds direct to the barangays, the DBM (Department of Budget and Management) and DILG (Department of the Interior and Local Government) should, as early as now, figure out how the funds transfers can be made swift, reliable, verifiable, and the funds beneficiaries are supposed to receive must be completely intact and accounted for.” House Speaker Lord Allan Jay Q. Velasco, in a separate statement, said Congress will fast-track the approval of the proposed third Bayanihan fund once sessions resume on May 17. Three house committees recently approved House Bill 8628 or the proposed Bayanihan to Arise as One Act, which sets a P405.6-billion fund to revive the economy and assist affected sectors. — Gillian M. Cortez

Zamboanga City COVID-19 cases continue to spike due to community transmission

May 4, 2021 | 9:05 pm

ZamboangaCity-molecularlabCOVID19 — ZAMBOANGA City’s molecular testing center, 90% done as of May 2, will be the 5th coronavirus testing facility in the city. — ZAMBOANGA CIO

CORONAVIRUS cases in Zamboanga City continue to spike, hitting 1,622 active patients as of May 2 from only 216 on April 8, due mainly to community transmission. “1,541 or over 90% of the total active cases are due to community transmission,” the city government said in a statement. Zamboanga, a major port city in the southwestern part of Mindanao, last saw a coronavirus disease 2019 (COVID-19) surge in Oct. 2020. While it has been under the most relaxed quarantine level, checks on minimum health standards have been stringent as it is tied up with the regular security checkpoints and patrols. Last week, Mayor Maria Isabelle Climaco-Salazar ordered the closure of all beaches, inland resorts, and other establishments with swimming pool until May 15 to stop gatherings in these venues. The head of one of the city’s main hospitals, Hanna R. Turco of the Mindanao Central Sanitarium, appealed to the public last week for cooperation and support in curbing the transmissions. “We are appealing because our health system in Zamboanga is almost collapsing,” the doctor said, speaking for other medical frontliners. The local government has been setting up additional isolation facilities while its molecular testing center, which will be the 5^th COVID-19 testing laboratory in the city, is 90% complete. The mayor, in a press release, said the molecular testing facility “is part of the initiative of the CHO (City Health Office) as it boosts the test, trace and treatment strategy in a bid to prevent and control COVID transmission.” Zamboanga City has recorded a total of 6,627 coronavirus cases since the start of the pandemic, with 251 deaths and 4,754 recoveries based on data from the Department of Health as of May 2. — MSJ

Free fruit, vegetable seedlings at DENR’s QC compound

May 4, 2021 | 9:05 pm

A VARIETY of fruit and vegetable seedlings will again be given out for free at the Department of Environment and Natural Resources’ compound in Diliman, Quezon City on May 6 from 9 am to 12 noon. The project is dubbed the Community PanTREE, an initiative of the department’s National Capital Region office launched on April 22 to celebrate Earth Day. It was inspired by the community pantries, a give-and-take food bank concept, that have recently sprouted across the country. The PanTREE aims to promote urban gardening, food security, and mutual cooperation within the community. “Its objective is to provide seedlings of fruit-bearing trees and vegetables to Metro Manila residents and to inspire them to set up their own backyard or vertical planting area,” the DENR NCR Information Office said in a mobile message on Tuesday. “Each recipient is allowed to bring home a maximum of five fruit-bearing tree seedlings and 10 vegetable seedlings (courtesy of the Bureau of Plant Industry), subject to available stocks,” it said in a Facebook post. Recipients are encouraged to bring their own pots for the seedlings. — Angelica Y. Yang

Peso ends at 2-month high

May 4, 2021 | 9:00 pm

THE PESO strengthened against the greenback on Tuesday to reach a two-month high following weaker-than-expected US economic data.

The local unit closed at P48.038 per dollar, appreciating by 1.2 centavos from its P48.05 finish on Monday, based on data from the Bankers Association of the Philippines. Tuesday’s close was the peso’s best since Feb. 15, when it ended trading at P47.93 against the greenback.

The peso opened Tuesday’s session at P48.05 versus the dollar. It traded within a narrow range, as its weakest showing was at P48.07, while its intraday best was at P48.02 against the greenback.

Dollars exchanged declined to $730.7 million on Tuesday from $885.2 million on Monday.

A trader attributed the peso’s strength versus the dollar on Tuesday to market preference for the local unit following weaker-than-expected US manufacturing activity data for April.

US manufacturing activity grew at a slower pace in April, restrained by shortages of inputs as rising vaccinations against COVID-19 and massive fiscal stimulus unleashed pent-up demand, Reuters reported.

The survey from the Institute for Supply Management (ISM) on Monday showed record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products across industries.

The ISM’s index of national factory activity fell to a reading of 60.7 last month after surging to 64.7 in March, which was the highest level since December 1983. A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the US economy.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso strengthened after US Federal Reserve Chief Jerome Powell’s remarks stressing that the world’s largest economy is already seeing signs of recovery.

Mr. Powell on Monday said the economy is doing better but is “not out of the woods yet,” noting a Fed study showed the pandemic has disproportionately affected the less educated and working parents.

For today, the trader gave a forecast range of P48 to P48.20 per dollar while Mr. Ricafort said the local unit could move within the P47.98 to $48.08 levels. — with Reuters

PHL shares slip ahead of April inflation report

May 4, 2021 | 9:00 pm

PSE-3-011021 — COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

SHARES declined on Tuesday after a survey showed the country’s manufacturing activity went down last month and as investors stayed on the sidelines ahead of the release of April inflation data on Wednesday.

The Philippine Stock Exchange index (PSEi) lost 10.13 points or 0.15% to close at 6,359.15 on Tuesday, while the broader all shares index went down by 16.18 points or 0.41% to finish at 3,906.82.

“The bourse ended slightly lower as investors digested the recently released factory activity for the month of April,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.

“Also, some market participants may have chosen to remain on the sidelines ahead of the release of the inflation report scheduled [today],” Mr. Pangan added.

A survey by IHS Markit showed the Philippine Manufacturing Purchasing Managers’ Index went down to 49 in April from 52.2 in March, the first score below the 50-neutral mark after a three-month climb.

Meanwhile, the Philippine Statistics Authority is set to release the consumer price index data for April today, May 5.

COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said in a separate Viber message that the PSEi’s close on Tuesday was “a stone’s throw away from its next support of 6,325, this being its 1.5-month low.”

Most sectoral indices declined on Tuesday except for financials, which improved by 3.72 points or 0.26% to end at 1,401.48.

Meanwhile, mining and oil dropped by 221.69 points or 2.29% to close at 9,453.90; property went down by 24.83 points or 0.8% to 3,049.82; industrials fell by 33.35 points or 0.38% to finish at 8,599.49; services declined by 2.36 points or 0.16% to 1,438.92; and holding firms inched down by 5.23 points or 0.08% to 6,457.19.

Value turnover went up to P4.63 billion on Tuesday with 3.19 billion shares switching hands, from the P4.39 billion with 3.03 billion issues traded the previous trading day.

Decliners overwhelmed advancers, 149 to 57, while 43 names closed unchanged.

Net foreign selling declined to P371.78 million on Tuesday from P429.45 billion on Monday.

“With trading volume remaining lackluster, support may be placed at 6,200, while immediate resistance may be pegged at 6,650,” Timson Securities’ Mr. Pangan said.

Meanwhile, COL Financial’s Mr. Barredo said the index “is on the verge of a support retest,” which may lead the PSEi to finish between 6,100 and 6,200.

“It has been a sluggish period for the market which looks to extend into May, especially after seeing minuscule volumes and having to contend with the ongoing malaise of the pandemic,” he said. “Perhaps, the market may also be worried about upcoming events such as the hazards of another possible MSCI down weight, and the upcoming follow-on offerings and IPOs (initial public offerings), which could possibly be draining the market’s liquidity.” — Keren Concepcion G. Valmonte

Hanjin talks seen progressing as Austal deal looms

May 4, 2021 | 8:36 pm

PROGRESS on the takeover of the Hanjin shipyard in Subic is expected within the next two months, Australian Ambassador to the Philippines Steven J. Robinson said.

Australian shipbuilder Austal Ltd. and a US-based company plan to take over the site previously controlled by Hanjin Heavy Industries and Construction-Philippines, Inc. The South Korean firm declared bankruptcy in 2019.

“I’m hopeful that there will be some progress made in the next month or two that we’ll see a finalization of all those negotiations,” Mr. Robinson said in a briefing on Monday.

“Austal really wants to invest further and become a shipbuilder of choice for the Philippines and for the region and that Hanjin facility, if that comes to the fore, would be a marvelous way to enable that in conjunction with its facility that it has already invested significant funds in down in Cebu.”

Austal currently makes catamaran and trimaran ferries in the Philippines for the international market.

Dave Shiner, regional director of Austal, said that discussions are ongoing.

“Hopefully, we’ll have some further news over the coming weeks.”

Separately, Mr. Robinson said Australian mining companies are showing further interest in the Philippines after the nine-year freeze on new mining agreements was lifted.

President Rodrigo R. Duterte last month lifted the moratorium on new mineral agreements imposed in 2012. In an executive order, the government can enter new mining agreements and review current contracts to renegotiate terms.

“The miners that we already have here, Orica, OceanaGold… they’re already thinking about what the future holds for them as a result of that ban being lifted and they’ve started to reach out to us just in recent times to express interest (in projects) across the Philippines,” Mr. Robinson said.

BusinessWorld sought comment from Hanjin’s court-appointed receiver Rosario S. Bernaldo but was not able to reach her. Subic Bay Metropolitan Authority Chairperson Wilma T. Eisma said the authority is not a party to the discussions. — Jenina P. Ibañez

Maynilad agrees to terms similar to Manila Water deal

May 4, 2021 | 8:35 pm

Maynilad-Putatan — PHILIPPINE STAR/ GEREMY PINTOLO

MAYNILAD WATER Services, Inc., the supplier for Metro Manila’s west zone, has agreed to renegotiated concession terms similar to those accepted by Manila Water Co., Inc., Justice Secretary Menardo I. Guevarra said.

“The government review panel and Maynilad had a smooth and easy meeting yesterday (Monday). Except for a few matters pertaining to Maynilad’s business plan, JICA (Japan International Cooperation Agency) loans, and the public listing of shares, the parties are in agreement on the rest of the proposed new concession agreement with Maynilad, which takes off from a similar concession agreement with Manila Water,” Mr. Guevarra said in a mobile message Tuesday.

Maynilad Spokesperson Jennifer C. Rufo said she would not comment on the details of the deal until it is finalized.

“Once our talks have been concluded, details of the final agreement will be revealed. We hope you understand,” she said in a mobile message Tuesday.

Ms. Rufo said earlier that Maynilad is “eager to conclude the talks at the soonest possible time.”

Mr. Guevarra has pointed out that certain parts of the new Manila Water contract were considered non-negotiable in the Maynilad talks.

They include “the removal of the non-interference clause, the non-chargeability of corporate income tax to consumers’ water bills, no government guarantees for future debts, CoA (Commission on Audit) audit, and a more transparent governance mechanism,” Mr. Guevarra told reporters on April 19.

Ms. Rufo has said that Maynilad does not expect its deal to be identical to Manila Water’s “because Maynilad is differently situated compared to Manila Water.”

Maynilad is the water provider for 17 cities and municipalities in the West Zone of the Metropolitan Manila area, while Manila Water services 23 cities and municipalities in the East Zone.

Manila Water’s revised concession agreement with Metropolitan Waterworks and Sewerage System (MWSS), the government agency in charge of water privatization in Metro Manila, was finalized and signed on March 31.

A copy of the revised agreement with Manila Water was sent to Maynilad on April 18 to review.

Some of the notable changes in the revised agreement with Manila Water are the removal of the company’s ability to pass on corporate income tax to customers, the cancellation of foreign currency differential adjustments, the lowering of the inflation factor to two-thirds of the consumer price index adjustment, and caps on increases in standard rates for water and wastewater.

The original rate-rebasing mechanism of Manila Water under the original agreement was also retained, which means that the rates for the concessionaire’s water and sewerage services will be set at a level at which Manila Water can recover its expenditures plus a reasonable return.

Manila Water also agreed to a tariff freeze until Dec. 31, 2022 to assist poor customers and aid the country’s economic recovery after the coronavirus disease 2019 (COVID-19) pandemic.

In November, President Rodrigo R. Duterte tasked the Department of Justice (DoJ) to review the water deals, which he claimed contain “onerous” provisions.

Mr. Duterte’s directive was a response to an international arbitration court’s ruling that the Philippine government must pay Maynilad P3.4 billion and Manila Water P7.4 billion for losses incurred when the MWSS rejected their request for an increase in water rates.

The concession holders opted not to demand payment, and said they were open to review the terms of their contracts. — Bianca Angelica D. Añago

COVID disruptions showing up in property market — Maybank

May 4, 2021 | 8:34 pm

DISRUPTIONS to working arrangements are beginning to flow on to the Philippine property market, where guest workers in particular generate strong office and home sales, according to Maybank Kim Eng.

The report, written by analysts Chua Hak Bin, Lee Ju Ye, and Linda Liu, noted in particular that the exit of Chinese workers employed by Philippine Offshore Gaming Operators has had a huge impact on the residential property market.

“While there is no official data on foreign purchases, data by Ayala Land, Inc. the country’s largest land developer, showed a steep 60% plunge in sales reservations by foreigners, especially from China. The foreign share of total purchases fell to 10.9% in 2020 (vs. 15.2% in 2019) while purchases by local and overseas Filipinos increased,” the report said.

Among Filipinos, the pandemic also triggered a change in residential preference due to work from home arrangements adopted during the pandemic, Maybank said.

“The out-migration reallocated real estate demand — dubbed the ‘doughnut effect’ — towards the suburbs and away from the city center,” it said.

Metro Manila home prices contracted 4.8% year on year in the fourth quarter, according to the Bangko Sentral ng Pilipinas. Meanwhile, residential property prices in the provinces rose 5.9% in the three months to December.

Maybank cited a Lamudi report indicating an increase in viewings and inquiries for property in Laguna, particularly in Calamba and Santa Rosa; Cavite particularly in General Trias, and Lipa, Batangas.

“Provincial cities with close proximity to Metro Manila have been seeing a surge in interest among property seekers, fueled partly by lower population levels, fewer COVID-19 cases and relaxed lockdowns,” it said.

Meanwhile, Maybank also noted that the shock to the migration market is being seen most prominently in the repatriation of overseas Filipino workers (OFWs).

“The return of OFWs may have contributed to the increase in unemployment which spiked to the highest in ASEAN at 17.6% in the second quarter of 2020,” it said.

Labor Secretary Silvestre H. Bello III said in April that 19% or more than 647,000 of the 3.5 million documented OFWs have been repatriated due to the pandemic. There are 8.8 million OFWs, including 3.8 million migrants, according to June 2020 government data.

Despite the repatriations, cash remittances to the Philippines dropped by only 0.8% to $29.903 billion in 2020. This represented the lowest contraction in the ASEAN, though Thailand was the outlier with remittance growth of 0.3%, Maybank said, citing official data from ASEAN governments.

“This could be due to overseas workers sending more remittances home to their families when their countries of origin experience economic hardship, or sending back more of their savings ahead of their decision to move back home,” Maybank said.

The central bank expects cash remittances to grow 4% this year, driven by prospects of an economic recovery. — Luz Wendy T. Noble

Energy regulator freezes collection of interest on delayed FiT revenue

May 4, 2021 | 8:33 pm

THE ENERGY Regulatory Commission (ERC) has ordered a halt to the collection of interest on delayed feed-in tariff (FiT) revenue from the National Transmission Corp., citing the need to provide relief to power users.

In an advisory posted on its official Facebook page, the commission said Tuesday that it is suspending the “imposition of interest for partial or delayed payment” of actual FiT revenue to eligible renewable energy (RE) developers for six billing periods.

“During the period of the moratorium, eligible RE Plants shall not impose any interest or penalty for any partial or delayed payment of the actual FiT revenue to them by the National Transmission Corporation (TransCo),” the ERC said.

The FiT-Allowance (FiT-All) is a uniform charge billed to on-grid customers, calculated and set annually. It is collected from consumers and remitted to TransCo, which controls the FiT-All fund. TransCo is in charge of distributing FiT-All payments to RE developers.

In its advisory, the ERC said that it is currently relaxing the FiT Rules to provide relief to the public during the pandemic.

The moratorium will take effect during the February to July billing periods, the ERC told BusinessWorld in a Viber message Tuesday.

“No interest will be billed by RE developers and no interest payments will be made by TransCo. As a result, no additional cost from the interest will be shouldered by the consumers,” the ERC said.

Victorio Mario A. Dimagiba, the president of consumer group Laban Konsyumer, Inc., told BusinessWorld via Viber that the moratorium seems to be a “pure debt relief accommodation extended by RE developers to TransCo as sponsored by ERC.”

“There is no statement of any pkWh (per kilowatt-hour) benefit to the consumers if any at all,” Mr. Dimagiba said Tuesday, referring to the ERC’s public advisory.

TransCo does not stand to benefit from the moratorium, it told BusinessWorld Tuesday.

“It is the FiT-All Fund that will benefit from the temporary relief in terms of the interest charges for late payment,” it said.

Had the moratorium not been put in place, there would have been an initial interest of P6 million payable by the end of June, TransCo said.

Asked why payments are delayed, TransCo said the current FiT-All rate of P0.983 per kilowatt-hour is “not enough” to fully settle payables to RE developers.

“The prevailing FiT-All Rate… gives us an estimated monthly average cash inflow of P670 million, whereas our estimated monthly average FiT Differential payables (or) cash outflow is P1.52 billion,” it said.

TransCo said that its projected interest due by the end of this year, assuming that the FiT-All rate does not increase, will range from P262 million to P763 million.

Meanwhile, the ERC told BusinessWorld that the current interest rate per month on partial or delayed FiT payments is based on “a 91-day treasury bill rate plus 300 basis points until fully paid.”

Energy Development Corp. (EDC), which is entitled to the FiT scheme through its affiliate’s 150-megawatt Burgos Wind Power Project in Ilocos Norte, said that it will follow the ERC’s advisory.

“We understand and will abide by the ERC moratorium. These are trying times for almost all industries, including the power industry, particularly customers and end users,” EDC’s Business Development, Trading, and Marketing Head Marvin S. Bailon told BusinessWorld in an e-mail Tuesday after queries made to the EDC Public Relations Department.

Last week, Energy Secretary Alfonso G. Cusi called the FiT scheme unaffordable for the Philippines.

“With regard to the FiT, tinigil na po natin iyan dahil talaga pong mali iyan (we stopped it because it is wrong). That is robbing the consumers. As a developing country, we cannot afford to be giving FiT or subsidies para po dun sa mga bagong (for the new) technologies that are being introduced,” he said at a Joint Congressional Energy Commission hearing held on April 27.

Asked to comment on Mr. Cusi’s statements, DoE Renewable Energy Management Bureau Director Mylene C. Capongcol has said that he may have meant there will be no new round of FiT applications. — Angelica Y. Yang

PHL seeking to adopt international norms on profit shifting

May 4, 2021 | 8:31 pm

THE PHILIPPINES is inching towards joining the Inclusive Framework on Base Erosion and Profit Shifting, an international standard that deters transnational companies from exploiting differences in national rules to minimize their tax exposure, the Department of Finance said.

“The Philippines is currently making significant progress in our efforts to assess our readiness to join the Inclusive Framework on Base Erosion and Profit Shifting (BEPS),” Undersecretary Antonette C. Tionko said at an Asian Development Bank forum late Monday.

“We’ve become more aware of the benefits of joining the BEPS inclusive framework,” she said.

The BEPS was put forward by the Organisation for Economic Co-operation and Development (OECD) and the G20 in order to address the mismatches in tax policy across various jurisdictions.

The International Framework on BEPS, established in 2016, has been accepted by 135 countries committed to implementing 15 measures to deter tax avoidance.

Ms. Tionko said the Philippines has identified potential areas of reform from studying the framework, including the policy on countering harmful tax practices and the prevention of tax treaty abuse.

“Likewise, we’re currently studying the benefits of acceding to the multilateral instrument to implement reforms,” she said. “We believe that the self-assessment exercise will build the foundation to meet the minimum standards for the BEPS Inclusive Framework.”

Meanwhile she said the Philippines is also now on track to fully design and develop a framework and a model for agreements on double taxation. The government started updating its double taxation agreements in 2018 to comply with international standards.

“In the same manner, the Philippines is also on target to conclude tax treaties with other ASEAN member states in line with our commitment under the ASEAN Regional Integration Framework. We are working closely with our foreign counterparts to ensure that we complete them and improve our network of bilateral agreements in the soonest possible time,” she said.

Pascal Saint-Amans, director at the Center for Tax Policy and Administration of OECD, said at the forum that he welcomes the developments in the Philippines as reported by Ms. Tionko.

Aside from the ongoing policy action, Mr. Saint-Amans said the OECD is also trying to build a long-term multilateral solution for the international community as issues on the taxation of the digital economy emerge.

“If you want to adopt the international tax rules to a digitized economy and a globalized economy, where value creation has changed, where you rely more on intangible property, where you have a few winners from globalization, you need to have a multilateral solution, because countries on a unilateral basis cannot do much,” he said.

“We would introduce a new nexus to recognize that the company can be taxed in the territory even if it has no physical presence in that country,” he added. — Beatrice M. Laforga

Amendments to PNOC seen removing business restraints

May 4, 2021 | 8:30 pm

THE DEPARTMENT of Energy (DoE) said proposals to review the charter of the Philippine National Oil Company (PNOC) should expand the PNOC’s role in the country’s petroleum projects.

At a hearing conducted by the House Committee on Energy on Tuesday, DoE-Oil Industry Management Bureau Director Rino E. Abad said the department hopes to see in the proposal “a provision which will enhance the mandate of the PNOC to go into downstream natural gas projects.”

He said that also on the wish list are the establishment of the Philippine Strategic Oil Reserve. Mr. Abad said the DoE is currently drafting a circular in consultation with the PNOC on setting up a reserve, adding that he hopes the terms of the circular will make their way into the law.

Legislators on Tuesday began deliberations on House Bill 8762 which will revise the charter of the PNOC. The bill was written by the House energy committee chairman, Pampanga Rep. Juan Miguel Macapagal Arroyo.

The PNOC was created by Presidential Decree 334 in 1973.

PNOC President Reuben S. Lista said at the hearing that the bill, which will amend the decree, will allow more flexibility for PNOC in dealing with the potential for disruption posed by dwindling global oil reserves.

“Sadly the Philippine National Oil Company, shackled by stringent rules, remains dormant in its present state without an outlook of spirited expansion,” he said.

“The passage of this bill will allow the Philippine National Oil Company to meet the new and emerging energy challenges not merely as a passive government-owned and -controlled corporation but as a business entity making profits for the government and at the same time, an active, vigorous, and strong organization fully committed to nation-building,” he added.

The proposed amendments include exemption from submitting the PNOC budget for Congressional approval. The PNOC will also be exempt from government procurement law for certain items.

PNOC Vice-President Ronald C. Chua said since the PNOC became an operating company in 2018, the amendments will provide leeway for the organization to procure supplies for its operations.

“We are the only government-owned and -controlled corporation that has to submit our budget even if we do not have budget allocation from the government. Our budget is confined and limited to our own funds,” he said at the hearing. — Gillian M. Cortez