New virus surge to delay PHL recovery

February 23, 2021 | 12:35 am

A new wave of coronavirus infections may derail the Philippine’s fragile recovery. — PHILIPPINE STAR/MICHAEL VARCAS

A FRESH SURGE in coronavirus disease 2019 (COVID-19) infections will likely further delay the Philippine economy’s recovery, S&P Global Ratings said on Monday.

If recovery is derailed, S&P said in a separate report the financial buffers of some Philippine banks may not be able to absorb a rapid deterioration in asset quality.

“The major emerging markets in this region — Indonesia, Malaysia, the Philippines, and Thailand — are living with the effects of new waves that only recently look to have peaked. S&P believes this could prolong their paths to recovery,” it said in a note “Delay Risk On The Rise For Southeast Asia’s Recovery.”

The debt watcher’s baseline forecast for the Philippines this year remains at 9.6%, much faster than the government’s 6.5% to 7.5%. Last year, the economy slumped by a record 9.5% as the government implemented one of the world’s strictest and longest lockdowns.

The baseline estimate assumes the Philippine output level will return to its pre-pandemic level by December 2021, although downside risks to this view have emerged due to possible surges in COVID-19 cases.

This is a slower recovery compared with Indonesia (April 2021), Malaysia (July 2021), and Thailand (August 2021), where output will likely recover to pre-pandemic levels earlier in the year.

“The biggest threat to timely economic recovery is individual consumer behavior, as people stay home more and spend less,” it said, defining recovery as quarter-on-quarter growth that is above trend.

Household consumption accounts for at least 70% of gross domestic product (GDP) in the Philippines, and nearly 60% in Indonesia and Malaysia.

Given the continued downside risks from the COVID-19 outbreaks, S&P trimmed the sequential growth outlook for the Philippines. If recovery is delayed by two months, S&P expects GDP growth at 7.7% this year. GDP is expected to grow by 7.4% if there is a four-month delay in recovery, and by 7.1%, if there is a six-month delay.

If recovery is delayed by six months, Philippine output will only return to pre-pandemic levels by May 2022.

“In a six-month delay scenario we factor in more economic scarring caused by a prolonged recession, which causes a greater amount of permanent economic damage,” S&P said.

“The longer an economy is stuck with unemployed resources, the larger the damage to balance sheets and workers. More businesses would close, and more workers would lose jobs, skills, and motivation,” it added.

Amid limited testing capacities compared with Western economies, S&P noted hospital capacity is a more important indicator of government policies compared with reported cases. The debt watcher’s baseline scenario is that the region will see widespread distribution of vaccines by the second half of the year which could then boost economic activities.

In the Philippines, infections rose 2,288 to reach 563,456 on Monday. Data from the Department of Health showed more than half of isolation beds (62%), intensive care unit (68%) beds, and ward beds (78%) remain available.

Vaccines are expected to arrive in the country within the month. The government is targeting to inoculate 70 million Filipinos by end-2021.

Government officials have been pushing to further ease restrictions to drive economic recovery.

‘LONG ROAD TO RECOVERY’
In a separate report, S&P said the Philippine banking industry is on a “long road to recovery” with asset quality seen to further deteriorate as banks recognize the extent of the pandemic’s impact on borrowers.

The debt watcher said the industry’s nonperforming loan (NPL) ratio may reach 6% in 2021, from 3.6% in 2020.

“High provisioning in 2020 and capital buffers can buy the sector time, assuming the economic revival stays on track. Our negative outlook on rated banks reflects our view that financial buffers could not absorb the rapid deterioration in asset quality likely to ensue if the recovery is derailed,” S&P analysts Nikita Anand and Ivan Tan said.

NPLs could spike in the first quarter, as loan moratoriums and fiscal support end.

“We believe NPLs could peak in the second half… A rebound in economic activity as well as ultra-low interest rates should support borrowers’ repayment ability in 2022,” they said.

Banks will likely see mild recovery in profits this year, and are not expected to return to pre-pandemic financial performance until 2023, S&P analysts said. — Luz Wendy T. Noble

Senate OK’s bill allowing President to suspend hike in SSS contributions

February 23, 2021 | 12:34 am

THE SENATE on Monday approved on third and final reading a measure allowing President Rodrigo R. Duterte to suspend the increase in contributions by Social Security System (SSS) members.

With 21 affirmative votes, the Senate approved Senate Bill No. 2027 which gives the President the power to suspend the scheduled increase in the contribution rate for six months and extend it for another six months during the state of national emergency or calamity.

Senator Richard J. Gordon, who sponsored the bill, said the mandated SSS contribution increase is “not timely because of the continuing hardship brought about by the COVID-19 (coronavirus disease 2019) to the people and to the business sector.”

“This bill seeks to provide the people with flexibility to adapt to the pandemic by empowering the President to temporarily suspend or defend the increase in contributions scheduled under Republic Act (RA) 11199, so that the people will be able to have financial breathing space to be able to adjust to the ongoing National Emergency,” Mr. Gordon said in a statement.

The bill allows the President to suspend the increase upon the recommendation of the Social Security Commission after consulting with stakeholders.

Under RA No. 11199, otherwise known as the Social Security Act of 2018, the SSS is scheduled to raise the contribution rate to 13% from the current 12% this year. A one percentage point increase in contributions is scheduled every other year starting 2019 until it hits 15%.

Mr. Duterte in September last year extended the state of calamity until Sept. 12, 2021 due to the coronavirus pandemic.

Senate President Pro Tempore Ralph G. Recto said the monthly contribution payment is not suspended and the increase will only be deferred for a short period.

“Kaya naman po hindi malaki ang tama sa SSS (The SSS will not take a big hit). It will not be placed in financial distress for helping those who are,” he said in explaining his affirmative vote.

The House of Representatives had approved on third and final reading a similar bill on Feb. 1. — Vann Marlo M. Villegas

Philippines tops 2021 Women in Business survey

February 23, 2021 | 12:33 am

THE PHILIPPINES has again topped a global survey on the role of women in senior management, with more women taking on top roles in mid-market businesses compared with 29 other economies. Read the full story.

PHL tops ‘Women in Business’ survey

February 23, 2021 | 12:33 am

THE PHILIPPINES has again topped a global survey on the role of women in senior management, with more women taking on top roles in mid-market businesses among 29 economies.

The Grant Thornton International’s 2021 Women in Business Report showed that Filipino women took on 48% of senior leadership roles, up five percentage points from the previous year, when 32 economies were surveyed.

Globally, 31% of positions in senior management teams were held by women, higher than the 2020 figure and surpassing the 30% representation threshold needed to change decision-making processes.

All the countries surveyed except for China, the United Arab Emirates, South Korea, and Japan have passed the threshold.

The Philippines was followed by South Africa (43%), Brazil, India and Vietnam (39%), and Germany and Indonesia (38%). In Southeast Asia, the Philippines was ahead of Malaysia (37%), Thailand (34%) and Singapore (33%).

The survey covered nearly 5,000 respondents in 29 economies, including 100 in the Philippines. Interviews were conducted from October to December 2020.

“Ranking first globally in terms of women in senior roles in the Philippines is an important milestone for businesses in the country, but not the end goal. Those businesses that want to reap the benefits of a better gender balance, must continue to take action to enable women to realize their ambitions,” P&A Grant Thornton Chairperson and Chief Executive Officer Ma. Victoria C. Españo said in a statement on Monday.

“Becoming the number one ranking country in terms of the proportion of women in senior management certainly does represent progress — having grown from 39% five years ago when we first started tracking this — but these gains can easily be lost,” she added.

The number of women in Philippine C-suite roles has been growing, with the proportion of female chief executive officers rising 16 percentage points to 38%. The proportion of female chief operating officers went up four percentage points to 27%.

However, the proportion of female chief financial officers fell three percentage points to 35%.

The Philippines also ranked 23^rd among the surveyed economies in terms of businesses that have no women in senior leadership positions, representing 3% of businesses.

Among those surveyed, 42% said that the new working practices like remote work developed in response to the pandemic will benefit women’s career trajectories in the long term. More than half of Philippine businesses surveyed said that they expect stakeholder pressure to maintain gender balance to increase as a result of the pandemic.

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd. — Jenina P. Ibañez

Fuel marking program yields P193 billion in taxes

February 23, 2021 | 12:32 am

The fuel-marking program aims to deter smuggling by injecting the products with a special dye to signify tax compliance. — PHILIPPINE STAR/MICHAEL VARCAS

THE government’s fuel marking program generated P192.756 billion from duties and taxes on fuel products since it was launched in September 2019, data from the Department of Finance (DoF) showed on Monday.

The Bureau of Customs (BoC) collected P166.176 billion of duties and taxes from September 2019 to Feb. 17 this year.

At the same time, the Bureau of Internal Revenue (BIR) generated P26.58 billion in excise taxes from December 2019 to Feb. 11 this year.

The two agencies processed 19.903 billion liters of fuel products as of Feb. 17, with 60% or 12.05 billion liters processed during the first year of implementation.

By region, 73.8% or 14.7 billion liters of fuel were marked in Luzon, 21% or 4.2 billion liters in Mindanao and 5% or over one billion liters in Visayas.

Diesel accounted for 61% or 12.2 billion liters of the total, followed by gasoline with 38% or 7.6 billion liters and kerosene with 105 million liters.

The fuel marking program aims to deter oil smuggling by injecting the products with a special dye to signify tax compliance. The absence of the dye is deemed prima facie evidence that the fuel was smuggled.

The government started collecting in September 2020 the fuel marking fee of P0.06884 per liter, inclusive of value-added tax, charged on all manufactured, refined or imported petroleum products.

The fee was imposed after the one-year program for subsidized fees ended that month. Oil companies will now have to shoulder the costs in the next four years.

Meanwhile, Albay Rep. and House Committee on Ways and Means Chair Jose Ma. Clemente S. Salceda said Customs should beef up efforts against fuel smuggling, which cost P357 billion in foregone revenues from 2010 to 2019.

“While fuel marking has helped lower smuggling, the bleeding on the revenue side is still growing because we raised taxes on fuel products in 2018,” he said in a statement.

Mr. Salceda called on the BoC and the DoF to form a task force against fuel smuggling.

“I am urging this task force to be created. Undertake programs and audits that will catch fuel smuggling. Expand the fuel-marking program. Help us with new policy proposals to close loopholes on fuel smuggling. If necessary, we are willing to expand the budget for surveillance and investigation,” he said.

Customs Commissioner Rey Leonardo B. Guerrero said the agency already has a task force in charge of monitoring the fuel marking program. The task force includes representatives from the BoC, National Bureau of Investigation, Philippine Coast Guard, Department of Energy, and the Bureau of Internal Revenue. — Beatrice M. Laforga and Gillian M.Cortez

Government to start work on 75 airport projects

February 23, 2021 | 12:31 am

THE Department of Transportation on Monday said it will soon begin work on 75 more airport projects.

“To date, the DoTr, in partnership with CAAP (Civil Aviation Authority of the Philippines)…, have already completed 121 airport projects, while 114 are well underway, and 75 more are set to begin work soonest,” the department said in a statement on Monday.

According to a document obtained by BusinessWorld, the 75 airport projects include the construction of the administrative building of Clark International Airport; strip grade correction of the runway of Kalibo Airport; improvement of the passenger terminal building of Bacolod Airport; and construction of apron and taxiway, among others, of Catbalogan Airport.

Among the completed airport projects so far are the upgrade of airports in Laoag, Vigan, Tuguegarao, Palanan, Cauayan, Mamburao, Lubang and Romblon.

Projects that are currently ongoing are the upgrade of airports in Vigan, Basco, Calayan, Virac and Antique.

The DoTr said this is part of its mandate to advance air connectivity and mobility in the country despite the pandemic crisis.

In January last year, the Tourism department and the DoTr signed a memorandum of agreement to intensify infrastructure development that will support the development and promotion of tourism circuits across the country. — Arjay L. Balinbin

NTC declares DITO compliant with speeds, coverage commitments

February 23, 2021 | 12:06 am

THE National Telecommunications Commission (NTC) declared DITO Telecommunity Corp. compliant with its requirement to cover 37.03% of the country’s population and provide a minimum average broadband speed of 27 megabits per second (Mbps) in its first year of service.

“DITO passed its commitments on its first year of technical audit,” the NTC said in a statement on Monday, citing the results of the technical audit conducted by R.G. Manabat & Co.

According to a copy of its report to the NTC, R.G. Manabat & Co. said DITO’s national population coverage reached 37.48% while its minimum average broadband speeds delivered reached 85.9 Mbps and 507.5 Mbps for all 4G and 5G sites, respectively.

The network covered more than 37 million people based on the 2015 national census of 100,983,124.

“The reach covered a total of 8,860 barangays,” the NTC said.

“The minimum Mbps per testing point for all sites are: near point – 102.0 Mbps for 4G and 769.1 Mbps for 5G; middle point – 91.2 Mbps for 4G and 437.1 Mbps for 5G; and far point – 64.4 Mbps for 4G and 316.5 Mbps for 5G,” R.G. Manabat & Co.’s report said.

However, DITO’s actual speeds may differ when its network is commercially live, the report added.

According to the NTC, R.G. Manabat & Co. used stratified random sampling to choose 12% of more than 1,600 cell sites for testing.

“For each location (near the base station, middle point and far from the base station), three (3) tests were conducted. The test software used is TEMS investigation software V22.00,” the commission said.

The telco startup is scheduled to launch commercial operations next month.

“A healthier competition within the industry fulfills President Duterte’s promise to the Filipino people of better telco service thru cheaper prices and improved internet speed,” the NTC said. — Arjay L. Balinbin

Century Properties co-managing director resigns to resolve issues in own company

February 23, 2021 | 12:05 am

JOSE ROBERTO R. ANTONIO has resigned as co-managing director of Century Properties Group, Inc. (CPG) as he resolves issues in his separate company, the listed holding firm said on Monday.

The company said its board accepted the resignation of Mr. Antonio, who also quits as a member of the board of directors, “effective immediately.”

“The Board noted that the reason for his resignation is to allow him to focus on addressing the pressing issues in his own company and its allied businesses,” it told the stock exchange.

Mr. Antonio’s private company Revolution Precrafted Philippines and its subsidiaries have reportedly been hit hard by the pandemic.

“I know I am making the correct decision to step down from my position in CPG as I will leave it under the very capable leadership of the Board and the professional expertise of its senior management team,” Mr. Antonio said in a statement.

In a separate statement released on Monday, Revolution Precrafted and its allied companies Resurgent Corp., Renegade Branding Concepts and Radiant Beauty clarified that they would settle all of their due obligations.

“The company is ready to settle legitimate obligations, which have fallen due and has no intention to renege on these legitimate contractual claims. The company is likewise in the process of collecting what is due, then from those that have also defaulted in their obligations to Revolution,” Revolution Precrafted said.

Revolution Precrafted explained that the coronavirus disease 2019 (COVID-19) crisis “activated force majeure stipulations” in its business dealings. Force majeure clauses free parties from liability when unforeseen events happen, which leads to them unable to fulfill obligations as stated in the contract.

The statement also said Revolution Precrafted CEO Mr. Antonio and his companies — Resurgent, Renegade and Radiant — remain viable.

“On this note, we caution people and individuals from making any malicious and false statements against Robbie Antonio and his companies. We hope that we be allowed to fix the current situation without threats or intimidation, or else the company will likewise be forced to institute legal charges, both criminal and civil,” Revolution Precrafted added.

Meanwhile, CPG said it was looking for a replacement to fill Mr. Antonio’s seat as member of the company’s board of directors.

Century Properties shares at the stock exchange went down by 2.41% on Monday to finish at P0.405 per share. — Keren Concepcion G. Valmonte

Citicore Power targets commercial run of Pampanga solar farm by end-2021

February 23, 2021 | 12:04 am

CITICORE Power, Inc. is aiming to complete its solar farm in Pampanga by yearend as construction is scheduled to start next month, its top official said on Monday.

“This will probably be one of the fastest construction timelines because we’re aiming to have it commissioned after nine months. We’re hopeful that we would be able to complete the plan by yearend,” Citicore Power President Oliver Y. Tan told BusinessWorld in a phone interview.

The solar facility, a joint venture with Ayala Corp.’s energy arm, is preparing for its scheduled ground breaking “in the second week of March,” he said.

He added that the group was in the process of finalizing the legal and engineering plans as well as the remaining permits for building its 50-megawatt of alternating current (MWac) facility in Arayat and Mexico, Pampanga.

Citicore Power is a wholly owned subsidiary of Citicore Holdings, Inc.

Citicore subsidiary Citicore Solar Energy Corp. earlier signed a shareholders’ agreement with Ayala-led AC Energy Corp. and the latter’s unit ACE Endevor, Inc. to build the solar facility.

In a disclosure on Feb. 5, AC Energy said that it would extend a loan of P2.675 billion to the project’s special purpose vehicle Greencore Power Solutions 3, Inc. to finance the facility’s design, engineering, construction, procurement and supply, operation and maintenance.

The project’s construction timeline was already pushed back to a later schedule due to the restrictions caused by the global health emergency, Mr. Tan said.

“We encountered some delays in rolling out. In fact, (we should have broken ground for the) Pampanga project last year but we encountered delays mainly because of the pandemic. We’re hopeful that we’ll be able to catch up this year, especially once the (coronavirus disease 2019) vaccine arrives and we have the immunization going on,” he said.

“We’re looking at things to regain momentum by the second half of the year,” he added.

Once completed, the solar facility would be the first project to contribute to Citicore Power’s goal of reaching a total capacity of 1.5 gigawatts by 2025, Mr. Tan said. This would be on top of the 168 MW that the company’s eight existing solar farms are producing.

On its website, Citicore Power says it is a renewable energy company committed to achieving a “healthy energy mix and lessening the country’s dependence on fossil fuels.” — Angelica Y. Yang

From GMA News TV to GTV

February 23, 2021 | 12:04 am

Rebranded station goes after younger audience by expanding beyond news

THE KAPUSO Network’s second free-to-air channel, GMA News TV, is rebranding as GTV beginning Feb. 22, offering “the news you trust and new shows to love.” Aside from a large number of news programs, it’s programming mix will now include basketball, rom-coms, public affairs and lifestyle shows, and anime.

“We’ve noticed that the audience now, especially during this time, they’re looking for more variety. So, while we’re retaining the love and trust that news programs of GMA News TV, we’ve started adding a lot of other shows,” Annette Gozon-Valdes, GMA Films, Inc.’s President and Programming Consultant to the GMA Chairman and CEO, said during an online press conference on Feb. 19. “[So,] the name GMA News [TV] wouldn’t really be any more because of the variety of shows.”

“The difference between GMA and GTV is that we want to really touch the hearts of the young and young at heart with this channel because we feel that the audience is looking for variety and we want to be able to fill that void,” Ms. Gozon-Valdes added.

GTV is not giving up on news — it will air a full roster of news programs from GMA News, GMA Regional TV, and DZBB, including the live telecast of Super Radyo DZBB’s reports and commentaries on Dobol B TV, as well as Connie Sison and Raffy Tima’s midday newscast Balitanghali. GTV will also simulcast GMA’s flagship news program 24 Oras, anchored by GMA News pillars Mel Tiangco, Mike Enriquez, and Vicky Morales.

Meanwhile, the channel’s primetime newscast State of the Nation (SONA), bannered by Atom Araullo and Maki Pulido, will give “depth and context to the headlines.”

Local news reports are accessible to more viewers via the GMA Regional TV Strip and GMA Regional TV Weekend News.

GTV will also be airing the upcoming 96^th season of the Philippines National Collegiate Athletic Association (NCAA) Season.

“We’ve been very busy coordinating now with the NCAA policy board to finalize Season 96. GTV will be allocating a big chunk of its airtime for the games,” First VP and Head of Regional TV and Synergy Oliver Amoroso said.

“We are also open in the future to other high quality sports content but for now we are concentrating on NCAA’s Season 96,” Mr. Amoroso added.

ROM-COMS AND ANIME
GTV will also showcase new programming options such as the fantasy-romance The Lost Recipe starring Mikee Quintos and Kelvin Miranda.

Airing on Saturdays will be an anthology of fantasy-infused romantic comedies titled My Fantastic Pag-ibig featuring today’s young loveteams; Game of the Gens, hosted by Sef Cadayona and Andre Paras, which fuses singing, dancing, and playing games; and a cooking show, Farm To Table, featuring chef JR Royol.

Upcoming shows include Heartful Café, starring singer Julie Anne San Jose and David Licauco; the romance-mystery mini-series Love You Stranger featuring real-life couple Gabbi Garcia and Khalil Ramos; and FLEX, starring Mavy Legaspi, Lexi Gonzales, Joaquin Domagoso, and Althea Ablan.

On GTV’s Happy Hour strip, Vicky Morales spreads positivity in news magazine show, Good News; documentarist Kara David explores Filipino food in Pinas Sarap; Susan Enriquez tackles financial management in Pera Paraan; Gabbi Garcia brings the latest trends in IRL; and Drew Arellano gets into more travel adventures in Biyahe ni Drew.

Public affairs and lifestyle shows will air throughout the week with Kara David’s Brigada, Susan Enriquez’ iJuander, Tonipet Gaba’ Pop Talk, and Solenn Heussaff and Gil Cuerva in Taste Buddies.

Ms. Gozon-Valdes noted that the channel will also be launching Japanese anime series such as Pokémon and Dragon Ball Z.

“We are focused now on the classics, but we are also on the lookout to acquire new titles,” she said.

GTV is available via free-to-air, cable, satellite, and on GMA Affordabox and GMA Now as well as other digital receivers. GTV’s programs also air abroad via the Network’s international channels GMA Pinoy TV, GMA Life TV, and GMA News TV International.

For more details, visit GTV’s official social media account @GTVPhilippines on Facebook, Twitter, Instagram, and Tiktok. — Michelle Anne P. Soliman

Gov’t fully awards T-bill offer despite higher rates

February 23, 2021 | 12:03 am

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday even as rates increased across the board after months of decline due to faster inflation and rising US bond yields.

The Bureau of the Treasury (BTr) raised P20 billion as planned via the T-bills on Monday as total bids reached P50.051 billion, making the offer over twice oversubscribed.

The BTr also opened its tap facility to raise another P5 billion via the one-year instruments.

Broken down, the Treasury raised P5 billion as planned from the 91-day debt papers, with total tenders reaching P12.613 billion. The three-month papers fetched an average rate of 0.875%, up by three basis points (bps) from the 0.845% seen at last week’s auction.

The BTr also borrowed the programmed P5 billion via the 182-day T-bills from P13.127 billion in bids. The average yield of the six-month instruments inched up by 2.1 bps to 1.067% from last week’s 1.046%.

Lastly, the government made a full P10-billion award of the 364-day securities on offer as demand for the tenor hit P24.311 billion. The one-year T-bills were quoted at 1.527%, jumping by 11.1 bps from the 1.416% fetched previously.

National Treasurer Rosalia V. de Leon said the sudden increase in T-bill rates reflected a correction after US bond yields continued to rise.

Bonds have been bruised by the prospect of a stronger economic recovery and yet greater borrowing as US President Joseph R. Biden’s $1.9-trillion stimulus package progresses, Reuters reported.

Yields on 10-year Treasury notes have already reached 1.38%, breaking the psychological 1.30% level and bringing the rise for the year so far to a steep 43 bps.

The yield on the benchmark 10-year Treasury note, which rises when bond prices fall, climbed to a one-year high of 1.36% last week, fueled by expectations that progress in the countrywide vaccination program and additional fiscal stimulus would further spur economic growth.

Meanwhile, back home, a bond trader said the higher T-bill rates fetched on Monday show investors are now becoming more cautious over the possible impact of accelerating inflation.

“[It’s] telling that CPI (consumer price index) worries are now affecting end-users’ demand. Liquidity is still there but rates are moving towards more rational levels,” the trader said via Viber, adding rates may rise further in the coming auctions.

Headline inflation quickened to a two-year high of 4.2% in January as food and transport prices continued to spike.

However, despite expectations of a further increase in inflation in the coming months, the Bangko Sentral ng Pilipinas’ (BSP) policy-setting Monetary Board on Feb. 11 kept its benchmark interest rates unchanged at their current record lows to support the economy’s recovery.

Still, it raised its average inflation forecast for the year to 4%, the upper end of its 2-4% target, from 3.2% previously. Meanwhile, the BSP lowered its forecast for next year to 2.7% from 2.9% previously.

The Treasury this month raised P127 billion from the local debt market, more than its P110-billion borrowing program for February, as the government opened its tap facility several times to take advantage of lower rates.

It was originally set to borrow P140 billion via T-bills and Treasury bonds (T-bonds) in February but it canceled a scheduled offering of P30 billion worth of three-year papers to give way to its retail Treasury bond (RTB) sale.

Of the total, P97 billion was raised via weekly T-bill auctions, breaching the P80-billion program. Meanwhile, it borrowed P30 billion as planned via T-bonds.

The government is selling three-year RTBs until March 4, unless the offer period is closed earlier. The bonds carry a coupon rate of 2.375% and are being sold for a minimum investment of P5,000.

The Treasury sold an initial P221.218 billion in RTBs at the rate-setting auction held on Feb. 9.

The government is looking to borrow P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — B.M. Laforga

Urban planning shouldn’t be led by politicians, says expert

February 23, 2021 | 12:03 am

THE PHILIPPINES should develop vertical cities to accommodate more people, lessen the traffic, and preserve open spaces, according to Felino A. Palafox, Jr., Palafox Associates principal architect-urban planner and founder. — REUTERS

By Arjay L. Balinbin, Senior Reporter

URBAN PLANNING in the Philippines is often dictated by the whims of politicians, who fail to take into account traffic, commerce, and the environment, an urban planning expert said.

“We have 1,600 local government units (LGUs) and not many of them have experts in planning, and planners are under engineering departments. Many of them are political appointees,” Felino A. Palafox, Jr., Palafox Associates principal architect-urban planner and founder, said during the Philippine Star Property Report PH’s online forum on Monday.

“I’ve spoken to someone, ‘Why did you approve this type of land use?’ You know what I was told? ‘Architect, that’s a political decision; it’s not an urban planning decision.’ Urban planners are superseded by political decisions. So urban planning in the Philippines is run mostly by politicians, if I may say,” he added.

Mr. Palafox said the government and the private sector should work towards creating cities where traffic and environment are given extra attention in the planning stage.

One of the solutions is to review the existing “obsolete laws,” including the National Building Code.

Mr. Palafox said the Philippines should develop vertical cities to accommodate more people, lessen the traffic, and preserve open spaces.

“One of the problems of the cities… is that they don’t consider the environment. They don’t consider the traffic. And here comes LGUs approving things and land use… We have to go towards vertical cities, so we will have more open spaces. It’s really about planning,” he said.

“It’s not enough that we have blueprints, blueprints, blueprints. We need a planning system, not just blueprints, blueprints, blueprints,” Mr. Palafox added.

On the government side, Department of Public Works and Highways (DPWH) Build, Build, Build Chairperson Anna Mae Y. Lamentillo said they believe in “design and masterplans.”

“For example, the Luzon Spine Expressway Network. We really did the masterplan first and looked at the numbers before undertaking which projects to prioritize and how much these will benefit the Filipino public,” she noted.

“I agree that there is a need for pedestrian infrastructure. We have been pushing for pedestrian infrastructure ourselves. In fact, the DPWH has issued several department orders related to that,” she added.

To recall, Public Works Secretary Mark A. Villar issued a department order last year prescribing the standard design of bicycle lanes along national highways.

Mr. Villar also mandated all DPWH operational units to include pedestrian facilities in all new road projects.

“We cannot do much on existing projects, but on new projects, they have to include pedestrian and bicycle components from the onset of the project,” Ms. Lamentillo added.

For the private sector, Buddy Tan, transport planning head of Ayala Land, Inc., said: “In Ayala, it’s always about creating value for your investment… in terms of facilities, utilities, and infrastructure.”

“We have always maintained that. We put the best efforts in doing what we can in whatever the private sector is asked to do when we get involved in a project,” he added.