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Skyway 3 to be toll-free for frontliners, SMC says

SAN MIGUEL Corp. (SMC) on Wednesday said medical frontliners are allowed to use the newly opened Skyway Stage 3 for free.

“This means that even when the expressway starts collecting toll fees after the current free use period for the public set by Skyway 3, medical frontliners will still continue to benefit from toll-free passage,” the company said in an e-mailed statement.

SMC President Ramon S. Ang said the company has waived a total of P156 million in toll fees as of Jan. 18, 2021.

The expressway’s operator has formally asked the Toll Regulatory Board to allow it to start collecting fees ranging from P110 to P274.

The SMC-funded expressway is toll-free until Feb. 1.

“In the first two weeks since it was soft-opened, Skyway 3 recorded an average of 71,000 vehicles per day. Fully operational, Skyway 3 can easily accommodate 200,000 vehicles or half of daily Edsa traffic,” Mr. Ang said.

The elevated expressway was seen to reduce travel time from the South Luzon Expressway in Alabang to the North Luzon Expressway to about 30 minutes from about three hours. — Arjay L. Balinbin

Filipino consumers among the most optimistic in Q4 2020

Filipino consumers among the most optimistic in Q4 2020

How PSEi member stocks performed — January 20, 2021

Here’s a quick glance at how PSEi stocks fared on Wednesday, January 20, 2021.

Peso climbs as focus turns to US leadership change

THE PESO strengthened against the greenback on Wednesday on investor optimism hours ahead of the formal transition to the presidency of Joseph R. Biden, Jr.

The local unit closed at P48.06 per dollar, gaining 1.8 centavos from its Tuesday finish of P48.078, data from the Bankers Association of the Philippines showed.

The peso opened Wednesday’s session at P48.03 a dollar, which was also its intraday best. Meanwhile, its weakest showing was at its close of P48.06 against the greenback.

Dollars traded reached $727.5 million, more than the $650.6 million see on Tuesday.

The peso appreciated versus the dollar ahead of the inauguration of Mr. Biden, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Mr. Biden’s was set to be inaugurated after local markets closed yesterday. The US government, under the leadership of the Democratic party, will push for a $1.9-trillion stimulus package to help the economy recover, Mr. Biden earlier said.

Meanwhile, a trader said the peso climbed “after [US] Treasury secretary nominee Janet Yellen called to “act big” on stimulus spending to support the US economic recovery”.

Ms. Yellen, Mr. Biden’s nominee for Treasury chief, said her incoming role will be to aid Americans while the population is being vaccinated and to help recovery for the world’s largest economy, Reuters reported.

For today, Mr. Ricafort said the peso could hover between the P48.02 to P48.08 per dollar while the trader expects a wider band of P48 to P48.20. — LWTN with Reuters

Stocks drop further ahead of Biden inauguration

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE shares closed lower for the fourth consecutive day on Wednesday ahead of the upcoming change of leadership in the United States.

The Philippine Stock Exchange index (PSEi) fell 55.15 points or 0.76% to end at 7,143.30 yesterday, while the broader all shares index declined 19.62 points or 0.45% to close at 4,300.12.

Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the local market ended lower ahead of the inauguration of Joe Biden as the US president and despite the strong performance of Asian markets.

Mr. Biden was set to be inaugurated as the 46th US president yesterday in Washington. He will be the oldest president in US history.

Mr. Trump plans to leave the White House ahead of the Biden inauguration, thus breaking the political tradition of US presidents meeting their successors that signals a peaceful transfer of power.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the local bourse declined as investors continued to book profits amid the lack of positive catalysts.

Mr. Tantiangco said market sentiment was also dampened by the continued spread of the coronavirus disease 2019 (COVID-19) across the country.

The Department of Health on Wednesday reported 1,862 new COVID-19 cases, bringing total infections to 505,939.

Zamboanga City posted the highest number of new cases at 206, followed by Davao City at 109, Kalinga at 102, Quezon City at 77, and Benguet at 74.

Majority of sectoral indices ended lower on Wednesday, with services being the sole gainer, rising 20.69 points or 1.34% to finish at 1,560.37.

Meanwhile, mining and oil dropped 210.41 points or 2.18% to 9,403.52; holding firms retreated 89.45 points or 1.2% to 7,325.74; industrials went down 99.54 points or 1.06% to 9,236.04; property decreased 29.29 points or 0.8% to 3,617.2; and financials lost 11.65 points or 0.78% to 1,465.18.

Decliners beat advancers, 137 against 91, while 40 names ended unchanged.

Value turnover on Wednesday amounted to P13.10 billion with 121.68 billion issues switching hands, lower than the P16.03 billion with 144.4 billion issues seen in the previous trading session.

Net foreign selling reached P688.39 million on Wednesday, lower than the P1.21 billion in net outflows recorded on Tuesday.

“Support remains at 7,000, while nearest resistance may be pegged at 7,300,” Timson Securities’ Mr. Pangan said.

“The PSEi is already below the 7,150 to 7,200 support range. If it is unable to regain its ground at the said range, the local market may trade with 6,900 as the new support and 7,150 to 7,200 as the resistance area,” Philstocks Financial’s Mr. Tantiangco said.

13 contacts of man with new COVID-19 strain test positive

THIRTEEN people who had contact with a 29-year-old Filipino who got infected with a more contagious coronavirus strain have tested positive for the coronavirus including his girlfriend, according to Health authorities.

The girlfriend of the man, who arrived this month after a trip to the United Arab Emirates (UAE), had tested negative during the first test, the Department of Health (DoH) said in a statement on Wednesday.

Also infected were two co-passengers who also tested negative upon arrival, a household member and a health worker from Quezon City who attended to the patient, the agency said.

DoH said samples from the five close contacts had been sent to the Philippine Genome Center (PGC) to test if these people had been infected with the coronavirus variant first detected in Britain.

“All close contacts are currently isolated and under strict monitoring,” it said in a statement.

The Health department also confirmed that eight Filipino passengers from the same Emirates flight had tested positive upon arrival in Manila. Their samples were also sent to the PGC.

Preliminary analysis of the virus samples showed low viral load and they needed to be retested, DoH said. They had been scheduled for swabbing on Jan. 21.

“All eight  co-passengers are in stable condition and will remain under strict monitoring while completing isolation and while waiting for the results of the re-swabbing,” DoH said.

Aside from the girlfriend, the mother of the patient was also among those who tested positive for the coronavirus disease 2019 (COVID-19) virus, Health Undersecretary Maria Rosario S. Vergeire told an online new briefing.

She also said another contact who had tested positive was a recovering patient who got infected in December. Remnants of the virus could linger up to eight weeks, Ms. Vergeire said.

Ms. Vergeire also said authorities had yet to reach six of 213 close contacts of the patient. They were among the 159 passengers on the same flight.

The Department of Health (DoH) reported 1,862 coronavirus infections on Wednesday, bringing the total to 505,939. The death toll rose by 64 to 10,042, while recoveries increased by 765 to 466,993, it said in a bulletin.

There were 28,904 active cases, 84.9% of which were mild, 7.5% did not show symptoms, 4.5% were critical, 2.6% were severe and 0.39% were moderate.

Zamboanga City reported the highest number of new cases at 206, followed by Davao City at 109, Kalinga at 102, Quezon City at 77 and Benguet at 74. 

DoH said seven duplicates had been removed from the tally, while 14 recovered cases were reclassified as deaths. Two laboratories failed to submit their data on Jan. 19. About 6.9 million Filipinos have been tested for the coronavirus as of Jan. 18, according to DoH’s tracker website.

The coronavirus has sickened about 96.7 million and killed 2.1 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

About 69.4 million people have recovered, it said. — Vann Marlo M. Villegas

State should let local governments import vaccines — senator

A SENATOR has filed a resolution asking the government to allow local governments and the private sector to order coronavirus vaccines.

“Allowing the local government units (LGUs) and the private sector to procure their own vaccines will prevent the spread of the disease and hasten the efforts to further open up the economy, which in effect will restore and create more jobs for the people,” Senator Ralph G. Recto said in the resolution.

One condition is for the vaccines to have been authorized by the local Food and Drug Administration (FDA) for emergency use.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and private transportation to contain the pandemic. The lockdown in most parts of the country had since been eased.

The Philippines last week approved the emergency use of Pfizer, Inc. and BioNTech’s coronavirus vaccine, which has a 95% efficacy rate.

China’s Sinovac Biotech Ltd., British drug maker AstraZeneca, and Russia’s Sputnik V vaccines also have pending applications.

Some local governments and the private sector have committed to fund and order vaccines as part of the state’s immunization program.

The government seeks to order 148 million doses this year and is targeting to inoculate at least 50 million Filipinos.

Allowing local governments and companies to import vaccines directly would quicken the order process and ease the burden on the National Government, Mr. Recto said. The government could also focus on priority and vulnerable sectors as well as the poor.

Also on Wednesday, the government said it would assess coronavirus infections during the holiday season before easing quarantine restrictions at the end of the month.

“When our medical advisers come to a point where they can comfortably say it will not cause a tremendous risk to the general population, then restrictions on age will be slowly eased as well,” Vivencio B. Dizon, deputy chief enforcer of the government’s anti-coronavirus efforts, told an online news briefing.

Trade Secretary Ramon M. Lopez on Tuesday said he might propose to allow Filipinos as young as 10 years to go to malls to boost consumer spending.

Mr. Dizon said the government is trying to balance public health and the effects of a stricter lockdown on the economy. “We always consider the effects of community quarantine restrictions on our economy.”

Under the rules, only those aged 15 to 65 years may stay outdoors. Scientists are investigating whether children are more susceptible to the new coronavirus strain spreading rapidly in Britain, according to BBC News. — Charmaine A. Tadalan and Kyle Aristophere T. Atienza

House lawmakers may start Charter change debates by February

CONGRESSMEN could start debates on proposed changes to the 1987 Constitution next month, according to the head of the House of Representatives committee on constitutional amendments.

“We still have one to two hearings in the committee and we will come up with the committee report, which will exclusively deal with the economic provisions,” Party-list Rep. Alfredo A. Garbin, Jr. told a news briefing on Wednesday.

Lawmakers could discuss the changes in plenary as early as the first week of February, he added. His committee will continue hearings on the matter on Tuesday.

Speaker Lord Allan Jay Q. Velasco wants to ease foreign ownership restrictions in the Charter to boost foreign direct investments.

Some lawmakers want to insert the clause “unless otherwise provided by law” in parts of the Constitution that limit foreign ownership in certain Philippine industries. This will allow Congress to pass a law later relaxing ownership limits.

Mr. Garbin said the Charter must be amended before general elections next year.

“It is the right time,” he said of Charter change, rejecting calls for the government to focus on its pandemic response instead. “We want to send a signal that we are now open and that the restrictive policies will be lifted.” — Gillian M. Cortez

Nationwide round-up (01/20/21)

Bill filed to institutionalize agreement limiting police, military presence inside UP campuses nationwide

A MEASURE that will institutionalize the 1989 agreement between the University of the Philippines (UP) and the Department of National Defense (DND) that limits military and police presence in UP campuses nationwide has been filed in the Senate.

Bill No. 2002 will amend Republic Act No. 9500, the University of the Philippines Charter of 2008, to prevent the entry of security forces in the facilities of the country’s biggest state-run academic institution without prior authorization from the school administration.

“The UP-DND accord is not a ‘Do not enter’ sign that bars law enforcement from entering the campus. It is not a wall which obstructs justice or deters the solution or prevention of crime,” the explanatory note of the bill read.

“The proposed measure ensures that the procedural due process of UP students, staff and faculty are protected.”

Members of the Armed Forces of the Philippines (AFP), Philippine National Police (PNP) and other law enforcers will also be banned from interfering in peaceful protests of individuals or groups within UP campuses.

Administration officials, meanwhile, defended the unilateral cancelation of the 1989 deal while the President’s spokesperson, a UP alumnus, offered to facilitate a dialogue between the parties.

Mr. Lorenzana, in a streamed press conference on Wednesday, insisted that the scrapping of the deal is intended to address the communist insurgency.

Presidential Spokesperson Harry L. Roque, Jr., in a separate interview, said mutuality is not a requirement to abrogate the over three-decade old pact because it is an “unusual contract” or  “extraordinary contract” between two parties.

Nonetheless, Mr. Roque said he is ready to mediate talks between the defense chief and UP officials.

The alumni of Sandigan para sa Mag-aaral at Sambayan (SAMASA) and Nagkaisang Tugon (Tugon), rival political parties in the university in the 1980s, have added their joint voices in condemning what they called as “curtailment” of academic freedom.

“DND’s unilateral termination of the 1989 Agreement which is not only a barefaced betrayal of its commitments to UP, but also an assault in broad daylight on the academic freedom and institutional autonomy that are guaranteed by Congress through its charter,” they said.

Among the signatories are Senator Francis N. Pangilinan, former UP University Student Council Chair, former Cong. Teddy B. Baguilat, Jr., former Cong. Ibarra Gutierrez III, and DLSU School of Law Dean

Virgilio R. de Los Reyes. — Charmaine A. Tadalan and Kyle Aristophere T. Atienza

Group files complaint vs BSP execs over national ID system

AN anti-corruption group on Wednesday filed a complaint before the Ombudsman against ranking officials of the Bangko Sentral ng Pilipinas (BSP) for alleged failure to undertake a bidding process for raw materials that will be used in the national ID system.

The Stop Corruption Organization of the Philippines, Inc., (SCOPI) said Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, BSP-Security Plant Complex (SPC) Bids and Awards Committee Chair Prudence Angelita A. Kasala, and other BSP officials did not undergo “competitive bidding” for the procurement of raw materials relating to the rollout of the Philippine Identification (Phil ID) system.

The complaint, a copy of which was sent to the media, was filed by SCOPI Chairman Ricardo D. Fulgencio IV on Wednesday.

The complaint also cited that BSP specified a brand in its Technical Specifications and Terms of Reference, which is prohibited under procurement laws.

“(R)espondents’ preference to Kinegram deprived other Phil ID suppliers of the opportunity to bid for the project and robbed the government of getting the most advantageous terms for the supply of such raw materials.  Clearly this is a corrupt practice of public officers,” the complaint read.

The BSP has yet to issue a statement on the complaint as of this writing. — Gillian M. Cortez

Comelec proposes inter-agency group to address cyber interference threats in 2022 national, local polls

THE Commission on Elections (Comelec) on Wednesday proposed the creation of an inter-agency task force (IATF) to help counter cyber-related interference during the national and local elections in 2022.

“It is recommended that some sort of inter-agency election integrity task force be established to assist and perhaps advise the Comelec in dealing with cyber-related interference in the electoral process,” Comelec Spokesperson James B. Jimenez said in a Senate hearing.

Mr. Jimenez is speaking before the committee on electoral reforms and people’s participation, which was tackling Senate Resolution No. 542.

The resolution proposed that Comelec and the Department of Information and Communications Technology (DICT) set up a tool to detect and repel potential foreign interference.

Mr. Jimenez said the commission has met with representatives of social media platforms to address disinformation on their sites.

He also proposed the passage of a measure requiring political advertisers to adhere to a set of integrity standards and to creating an archive for all advertisements that will be accessible to the public.

DICT Assistant Secretary Emmanuel Rey R. Caintic said the department has the tools to detect purveyors of fake news and manipulation of the election, but noted they have no investigative power.

“We have the necessary tools but we would need that proper mandate to do an investigation because the cybersecurity bureau does not have a law enforcement jurisdiction,” he told senators. — Charmaine A. Tadalan

Justice dep’t takes steps to address ‘rash killings’ of lawyers

THE Department of Justice (DoJ) said it will be closely monitoring the cases involving the killing of lawyers in the Philippines and will look into extending better protection to the legal community.

“The DoJ will come up with an inventory of cases under investigation by the NBI (National Bureau of Investigation), under preliminary investigation by the prosecution service, and undergoing trial in court, for the purpose of monitoring their progress very closely,” he told reporters in a Viber message.

“Other issues, such as providing greater protection to law practitioners, prosecutors, and judges, will be tackled in subsequent joint activities with the IBP,” he added.

The Integrated Bar of the Philippines (IBP) recently held a virtual meeting with government officials to discuss lawyer security and justice, the group said in a Facebook post.

Mr. Guevarra said the meeting tackled issues on the “rash killings of members of the legal community.”

The IBP last month sent a letter to President Rodrigo R. Duterte and Vice President Maria Leonor G. Robredo seeking for a “more coordinated, effective, and sustainable solution to the pressing problem.”

More than 50 lawyers have been killed under the Duterte administration, the group noted in their letter. — Vann Marlo M. Villegas

DSWD reports over 430K families benefit from Bayanihan II cash aid

MORE than 430,000 beneficiaries have received financial assistance through the emergency subsidy program (ESP), the Department of Social Welfare and Development (DSWD) reported on Wednesday.

The ESP is a cash aid program under Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II).

Citing the agency’s latest report as of January 19, Social Welfare Undersecretary Rene Glen O. Paje said they have distributed about P2.7 billion to 436,756 beneficiaries.

The beneficiaries included more than 71,000 Filipinos living under granular lockdown as well as 365,032 households that are not under the regular cash aid program called 4Ps, he said.

Mr. Paje also said the agency is currently distributing P15,000 each to displaced families through the Livelihood Assistance Grant (LAG) program.

“The grant can be used by beneficiaries who are looking for jobs or who want to establish small enterprises,” he said in Filipino.

Meanwhile, the Department of Interior and Local Government (DILG) has filed charges against more than 80 local officials allegedly involved in anomalies in the distribution of funds under the social amelioration program, another cash aid scheme in response to the coronavirus pandemic.

The Office of the Ombudsman has already ordered the preventive suspension of 89 barangay captains for six months. — Kyle Aristophere T. Atienza

Court orders arrest of Advincula for perjury in alleged ouster plot

A Manila court ordered the arrest of Peter Joemel Advincula, the man who appeared in videos linking the President’s family to illegal drugs, for perjury over his tagging of lawyers in the alleged plot to oust President Rodrigo R. Duterte.

In an order dated Jan. 18, the Metropolitan Trial Court Branch 17 issued the arrest warrant for Mr. Advincula and set the bail at P18,000.

In a resolution dated Feb. 17, 2020, the Department of Justice (DoJ) recommended charging Mr. Advincula for perjury based on a complaint filed by Free Legal Assistance Group lawyers Jose Manuel I. Diokno, Lorenzo R. Tañada III, and Theodore O. Te in September 2019.

The lawyers were also cleared by prosecutors from the complaint on conspiracy to commit sedition in February last year.

Mr. Advincula, who served both as a witness and respondent in the sedition complaint, was among the 11 indicted for conspiracy to commit sedition by the prosecutors.

The prosecutors said the allegation on participation in planning the ouster in a campus on March 4, 2019 “is an outright lie and perjurious,” noting that Mr. Diokno and Mr. Tañada were attending a forum for senatorial candidates that day.

Prosecutors also said the complaint of Mr. Te is valid as he only met Mr. Advincula after he received a request for his legal assistance.

The prosecutors also dismissed the perjury complaint against P/Col. Arnold Thomas C. Ibay, saying he was “clear and categorical” when he submitted records to the Department of Justice for investigation based on documentary evidence and claims of Mr. Advincula. — Vann Marlo M. Villegas

Regional Updates (01/20/21)

Tugade counts on new Bicol airport to help in economic recovery

TRANSPORTATION Secretary Arthur P. Tugade is counting on the new Bicol International Airport, which is now 72.2% complete, to help boost the economy battered by the coronavirus pandemic. “It can’t be denied that the aviation sector has been one of the hardest hit by the pandemic. That’s why it is important that we finish the airport at the soonest possible time, as this will absolutely give the economy a boost. Gusto ko matapos ‘yan (I want the project finished) within the year,” Mr. Tugade said in a statement on Wednesday. The department said the airport is expected to serve two million passengers annually. The project covers the construction of landside facilities, a passenger terminal building, the extension of the runway and taxiway, as well as drainage and other site development works. The Tourism department and the Transportation department signed a memorandum of agreement in January last year to intensify infrastructure projects that will support the development and promotion of tourism circuits across the country. Both departments identified airport development programs as priorities in support of tourism. — Arjay L. Balinbin

Cotabato Airport upgrade to benefit Bangsamoro image, economy — Transport minister

THE runway improvement project for the Cotabato Airport in Maguindanao, the main gateway to the Bangsamoro region, broke ground this week and is expected to be completed in 15 months. Transport and Communications Minister Dickson P. Hermoso of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) said it is crucial to improve the airport, also referred to as Awang Airport, as it serves as a key access point for both people and cargo.  “The airports and seaports are gateways, at dyan nagsisimula ang impression ng mga taong bumibisita sa (it gives the first impression on) BARMM. Apart from the impression, the airport itself serves as the platform for everyone — where you move people or transport goods,” Mr. Hermoso, a former military officer and assistant secretary of the peace office, said during Monday’s groundbreaking ceremony. The P124.4-million project funded under the national budget will be implemented by the Philippine Army’s Engineer Brigade. Lt. Gen. Corleto S. Vinluan, Jr., commander of the Western Mindanao Command that covers the BARMM, said the project will improve landing safety as well as boost economic activities. “I believe that once this airport is improved, it will create wider and speedy connections between provinces and cities, and will automatically stimulate vibrant economic activities… especially when the pandemic is over,” Mr. Vinluan said. — MSJ

Lanao del Norte rep proposes longer Bangsamoro transition period

A lawmaker on Wednesday proposed that next year’s scheduled elections in the Bangsamoro region be moved to 2028, longer than earlier proposals to postpone it to 2025. In a hearing on Wednesday, Lanao Del Norte 1st District Representative Mohamad Khalid Dimaporo said the longer transition period is needed to fully establish policies and programs in the new region. “I filed to move the elections not to 2025 but 2028,” he said in a joint hearing held by committees on electoral reforms, Muslim affairs, and peace.

Mr. Dimaporo noted that the transition period of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), which started two years ago, has been affected by the coronavirus pandemic. “We will be changing (the national) administration in the 2022 elections and there are components of the Comprehensive Agreement on Bangsamoro that may not be adapted and still need to be negotiated so we can fulfill the peace process. I would like to give the next administration some breathing room,” he said. — Gillian M. Cortez

New COVID wave seen putting construction-led revival at risk

A RESURGENCE of COVID-19 (coronavirus disease 2019) cases will pose risks to any construction-led economic revival because of the prospect of fund diversions away from the infrastructure program, Fitch Solutions Country Risk & Industry Research said.

Fitch Solutions raised its growth forecast for the construction industry to 13% this year from the earlier projection of 9.5%, it said in a note dated Jan. 19.

The government’s record budget of P4.5 trillion for 2021 and its focus on infrastructure projects are the main factors behind its view of double-digit construction growth, Fitch Solutions said.

It noted that the Department of Public Works and Highways (DPWH) received the highest year-on-year increase of any agency. Its budget rose 61.3% to P695.7 billion this year. The Transportation department’s allocation rose 4.4% to P88 billion.

“Given this budget allocation, we expect sectors such as roads & bridges, water infrastructure, and rail to contribute the most to the construction’s industry overall growth in 2021,” it said.

However, Fitch Solutions warned that the government could divert resources to pandemic containment if a new wave of COVID-19 should emerge, while new lockdowns are likely to disrupt construction works.

“We see some downside risk to these investment plans from further COVID-19 outbreaks in 2021, which could divert funding towards the pandemic response, as happened in 2020, and disrupt project developments due to lockdown measures. Given that the Philippines has experienced the second-highest fatality rate in Southeast Asia, after Indonesia, and the discovery of more contagious strains in the UK and South Africa, the Philippines remains vulnerable to another surge in COVID-19 cases,” the note read.

Projected increases in spending make public investment a key driver of the recovery, especially roads and railways, Fitch Solutions said.

Last year, the government reduced the budget of several government agencies, paring funding for projects and programs unlikely to be completed within 2020 because of the pandemic. The DPWH had its allocation reduced by 22% to P455 billion while the Transportation department’s funding was reduced by 17% to P82.912 billion.

Next year, Fitch Solutions flagged the risks posed by the national elections in May.

“On the one hand, it will mean that there will be a political willingness to complete projects under construction before the end of the current government’s term,” it said.

“On the other hand, since no (presidential) re-election is allowed in the Philippines, major projects currently at planning stage will be at risk of being reviewed under a new incoming administration, as has happened on repeated occasions with previous administrations,” it added. — Beatrice M. Laforga

Gov’t agencies’ cash usage falls to 95% in 2020

CASH UTILIZATION by government agencies fell to 95% in 2020 from 97% a year earlier, according to the Department of Budget and Management (DBM).

Utilization fell after government projects were disrupted by the pandemic, with the so-called “catch-up plan” implemented towards the end of the year not able to bring spending rates, as measured by the use of notices of cash allocation (NCAs), to 2019 levels.

The DBM said that the National Government’s NCA utilization was P3.648 trillion out of P3.853 trillion released in that period. In 2019, it used P3.234 trillion of P3.338 trillion.

An NCA is an authorization issued by the DBM to agencies informing them of the funds available for disbursement.

In the fourth quarter, government agencies used P1.093 trillion worth of NCAs for a 97% utilization rate. This utilization rate is identical to the performance in the fourth quarter of 2019, and higher than the 96% usage rate in the third quarter of 2020.

The fourth quarter NCA utilization rate means P204.789 billion worth of NCAs was not used by government agencies at the end of 2020.

Usage rates fell towards the second half of 2020 after lockdown restrictions hampered government projects and programs.

President Rodrigo R. Duterte signed Republic Act No. 11520 on Dec. 29 extending the validity of the 2020 budget for another year, allowing the government until Dec. 31, 2021 to use the funds that were not spent last year.

Separately, the DBM issued Local Budget Circular No. 133 on Jan. 18, a copy of which was published late Tuesday, allotting P350 million for the Local Government Support Fund – Assistance to Cities.

It ordered cities that plan to seek financial support from the fund to prioritize spending on construction and rehabilitation of green open spaces and infrastructure for active mobility, including parks, botanical gardens, bicycle lanes and walkways.

Local governments were instructed to submit their requests by June 30. — Beatrice M. Laforga

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