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UN expert urges Congress to prioritize law protecting human rights defenders

UNITED Nations (UN) Special Rapporteur on the situation of human rights defenders Mary Lawlor called on the Philippine Congress on Thursday to prioritize the passage of a measure that will protect human rights defenders.

“Enacting legislation at the national level is an important means by which States can recognise the work of human rights defenders and create robust mechanisms for their protection, and I urge all members of the Congress to get behind this praiseworthy initiative,” Ms. Lawlor said in a statement published on the UN Office of the High Commissioner on Human Rights (OHCHR) website.

“By prioritising legislation to protect human rights defenders, the Philippines would… send a clear message about their willingness to uphold their human rights obligations,” Ms. Lawlor added.

House Bill No. 9199 or the Human Rights Defenders Act, sponsored by Albay 1st District Representative Edcel C. Lagman, was approved by the House of Representatives in June 2019.

The Senate version, however, under Senate Bill No. 179 filed by Senator Leila M. de Lima has been pending at the committee on justice and human rights since February 2018.

Under the House bill, a human rights defender is defined as “any person who, individually or in association with others, acts or seeks to act to protect, promote or strive for the protection and realization of human rights and fundamental freedoms and welfare of the people.”

It grants human rights defenders a total of 17 rights and freedoms. These include the right to promote and protect human rights and fundamental freedoms; right to solicit, receive, and utilize resources; right to seek, receive, and disseminate information; right to develop and advocate for human rights ideas; and right to access, communicate, and cooperate with international and regional human rights bodies and mechanisms.

The proposed law also requires the government to ensure human rights defenders are “able to undertake their activities and work in a safe and enabling environment free from restriction.” — Bianca Angelica D. Añago

DENR seeks extension of Boracay task force for another year

THE Environment department has asked President Rodrigo R. Duterte to extend the term of the Boracay Inter-Agency Task Force (BIATF) for one more year.

In a press release on Friday, the Department of Environment and Natural Resources said the BIATF submitted a signed resolution to the President asking for the extension.

Environment Secretary Roy A. Cimatu, who chairs the BIATF, said the term extension will “allow the task force to complete all its projects which were stalled due to the global health emergency.”

The BIATF was created on May 8, 2018, under Executive Order (EO) No. 53 to lead the rehabilitation of the popular tourist island that Mr. Duterte described to have turned into a “cesspool.” Boracay was closed to tourists for six months.

The term of the task force was originally set to end in 2020, but Mr. Duterte issued another order extending it to May 8, 2021.

“We have accomplished much since this body was created by our President… with the mission of ensuring the rehabilitation and ecological sustainability of Boracay Island after its degeneration into a cesspool as a result of a few decades of runaway and haphazard development,” Mr. Cimatu said.

The BIATF is currently co-chaired by the Department of Tourism and the Department of Interior and Local Government, with local officials and other stakeholders as members. — Angelica Y. Yang

Dennis Uy sells entire stake in 2GO to SM

Davao-based businessman Dennis A. Uy’s Chelsea Logistics and Infrastructure Holdings Corp. on Friday announced it is selling its entire stake in 2GO Group, Inc. to SM Investments Corp. (SMIC).

In a disclosure to the stock exchange, Chelsea said it has signed agreements to sell its entire effective stake of around 31.73% in affiliate 2GO Group at P8.50 per share.

SMIC, in a separate disclosure, said its board of directors approved the acquisition of Chelsea’s stake in 2GO.

“(This will) increase SMIC’s current shareholding in 2GO from 30.49% to at least a majority of the outstanding voting capital stock of 2GO, making 2GO a subsidiary of SMIC,” the Sy-led listed company said.

The SMIC board also authorized the conduct of a mandatory tender offer to all remaining stockholders of 2GO at an offer price of P8.50 per share.

Chelsea said proceeds from the sale will be used to repay the loan that it obtained to secure the majority stake in 2GO in 2017.

The sale will be done through Chelsea’s subsidiary KGLI-NM Holdings, Inc. The company aims to complete sale conditions within the next three months.

“With the divestment, Chelsea will not be impacted by 2GO losses, which will aid the company in recovering from the current [coronavirus disease 2019] pandemic. With our numerous group-wide initiatives currently being undertaken, we are confident that Chelsea will be best prepared and positioned to take advantage of the recovery of the industry as we move forward,” Chelsea President and Chief Executive Officer Chryss Alfonsus V. Damuy said in a statement.

Chelsea is the shipping and logistics subsidiary of Mr. Uy’s holding company, Udenna Group.

Chelsea shares at the stock exchange went up by 4.49% or P0.16 to close at P3.72 apiece on Friday, while 2GO shares dropped 2.9% to P9.37 per share.

Shares of SMIC slumped by 2.89% or P28.50, finishing at P958.50 apiece. — Keren Concepcion G. Valmonte

Tan’s LT Group income slides 9% in 2020

LT Group, Inc. (LTG) reported a 9% drop in its attributable net income to P21 billion in 2020, with its tobacco business contributing three-fourths of the total.

In a statement, Lucio C. Tan’s listed holding company said its tobacco business accounted for 80% or P16.83 billion of the total attributable income, nearly 8% up from the previous year.

“The higher income is attributed to the higher share of premium Malboro with customers shifting from mid priced Fortune, as well as the price increases to pass on higher excise taxes,” LTG said.

The tobacco business remained strong despite the industry’s volume declining by 12% due to the additional excise taxes and the strict lockdown measures.

Banking unit Philippine National Bank (PNB) contributed P1.55 billion or 7% to LTG’s net attributable income. This is 72% lower than its 2019 contribution of P5.57 billion.

Under the pooling method, PNB’s net income for the year amounted to P2.8 billion, plunging 72% from the P9.94 billion posted in 2019.

PNB set a P16.9-billion provision for credit losses booked in 2020, nearly six times higher than the P2.9 billion allotted for provisions in the previous year, because of the impact of the pandemic on the economy.

Tanduay Distillers, Inc. (TDI), meanwhile, accounted for P1.1 billion or 5% of LTG’s net attributable income for 2020, nearly 65% higher than its P667 million contribution seen in the previous year.

“Revenues from liquor were 33% higher with the higher volume and higher prices to pass on the additional excise taxes. Revenues from bioethanol were 24% lower with the lower volume and lower average selling price,” LTG said without providing specific figures.

TDI finished the year with a nationwide distilled spirits market share of 22.5%, higher than the 27.8% share in 2019.

Eton Properties Philippines, Inc. contributed P799 million or 4% to LTG’s net attributable income, down by 11% from the previous year. Eton’s net income slumped 11% to P802 million in 2020.

Asia Brewery, Inc. (ABI) accounted for P583 million or 3% of LTG’s net attributable income, up by 46% from the previous year.

Its net income amounted to P591 million, which the company said is “largely due to the absence of losses incurred for the joint venture with Heineken as it transitions to the engagement of ABI to brew and distribute Heineken and Tiger beers in the Philippines.”

“LTG’s balance sheet remains strong,” the company said. “Debt-to-equity ratio was at 4.30:1 with [PNB], and at 0.16:1 without [PNB].” — Keren Concepcion G. Valmonte

First Gen chooses two foreign firms for LNG carrier tender

A wholly-owned unit of First Gen Corp. on Friday said it has picked two foreign firms for the final stage of a tender for the supply of a floating storage regasification unit (FSRU) for its liquified natural gas (LNG) import terminal in Batangas.

In a disclosure to the stock exchange, First Gen said FGEN LNG Corp. is set to select BW Gas Limited or Hoegh LNG Asia Pte. Ltd. as its FSRU provider by the end of the month.

Norway-based BW Gas and Hoegh both specialize in the global market of transportation and LNG floating regasification services.

“The Project will allow FGEN LNG to accelerate its ability to introduce LNG to the Philippines as early as Q3 2022, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates,” the listed company said.

An FSRU, which typically has a storage capacity of between 125,000 and 170,000 cubic meters, has an onboard regasification plant which can turn LNG back into gas, and supply it directly into the gas network.

In October, FGEN LNG chose McConnell Dowell Philippines, Inc., the local unit of an Australian contractor, for the LNG terminal’s engineering, procurement and construction contract.

At present, First Gen and Japan’s Tokyo Gas Co., Ltd hold a joint cooperation agreement for the design, development, testing, commissioning, construction, ownership, and operations and maintenance of the interim offshore gas project.

Shares of First Gen slipped 4.38% or P1.35 to finish at P29.50 apiece on Friday. — Angelica Y. Yang

Alcantara’s ACR profit doubles in 2020

Alcantara-led Alsons Consolidated Resources Inc. (ACR) said on Friday that its net income attributable to the parent more than doubled to P325 million in 2020 from the previous year.

In a statement, ACR attributed the higher profits to the full operations of its power plants in Mindanao.

The listed company of the Alcantara group reported a consolidated net income of P1.87 billion last year, nearly twice the P974 million posted in 2019.

“Our power facilities have continued to dispatch power to our customers in order to ensure that the people of Mindanao have access to a reliable and steady supply of electricity in these difficult times,” ACR Executive Vice President Tirso G. Santillan said in a statement.

The firm’s consolidated revenues in 2020 surged to P9.47 billion from P6.8 billion in 2019.

“This year will see us continuing to pursue our new power projects in Sarangani Province, Zamboanga City, Zamboanga del Norte and Negros Occidental. This is our own contribution to the economic recovery of our country by helping create new jobs and stimulate the local economies in these areas,” Mr. Santillan said.

ACR is building a 14.5-megawatt (MW) run-of-river hydroelectric power plant in Maasim, Sarangani. The company said it is scheduled to begin its commercial run by early 2022. The hydro project will be ACR’s first venture into renewable energy.

The firm is planning to focus on renewables with at least seven other run-of-river hydro plants in various stages of development.

ACR also has two hydro facilities in the pipeline – the 22-MW Siayan (Sindangan) hydro plant in Zamboanga del Norte and the 42-MW Bago hydro plant in Negros Occidental.

Earlier this year, ACR announced that it has allotted around P6.54 billion as capital expenditures (capex) for four projects under development, including three hydro projects and one baseload thermal plant.

ACR shares in the local bourse improved 0.78% or 0.01 centavo to close at P1.29 apiece on Friday. — Angelica Y. Yang

3G usage drops as Globe customers shift to 4G LTE

Globe Telecom Inc. said that 3G (third generation) technology use for internet connection has dropped by almost half since May last year as more of its customers shifted to faster network technology.

The company in a press release on Friday said that the number of its customers using 3G dropped by 47.4% from May 2020 to January this year.

In that same period, the number of customers using LTE (Long Term Evolution) technology increased by 34%.

Globe Senior Vice President for Program Delivery, Network Technical Group Joel Agustin said that more of the company’s customers turned to 4G LTE to connect their devices for work and school during the lockdown.

“We have been anticipating the decline in 3G users as more customers are realizing the benefits of using 4G LTE for better data experience and faster internet speed,” he said.

The company expects 4G LTE use to increase further as it expands its network.

Globe Telecom shares closed at P1,870 apiece on Friday, down P70 or 3.61%. — Jenina P. Ibañez

Average spot market price up in March due to demand and generator outages — IEMOP

THE AVERAGE spot market price hit P4.23 per kilowatt hour (kWh) this month, nearly twice the February level, due to an increase in power demand and generator outages, the Independent Market Operator of the Wholesale Electricity Spot Market (IEMOP) said on Friday.

The IEMOP said in a press release that the rise was largely attributed to the “gradual surge in demand as the economy continues to recover from the restrictions brought about by the COVID-19 pandemic and as changes in the weather ensue due to the approaching dry season.”

It added that generator outages also contributed to this month’s increase in the spot market price. Based on IEMOP data, the operations of 13 generators were halted as of March 10.

In a media briefing on Friday, IEMOP Manager for Market Simulation and Analysis Division Trading Operations Department John Paul S. Grayda said that spot market prices were particularly high during the first week of March.

“Prices are projected to increase during the summer months relative to the WESM (wholesale electricity spot market rate) rate of P2 per kilowatt hour for the past five months,” Mr. Grayda said, noting that the P2 level might increase in the coming months.

The projected increase for the next few months will reach P 2.22 per kWh for April and P2.69 per kWh for May, subject emergency outages, government response to the pandemic, and occurrences of other force majeure, the IEMOP said, referring to its estimates based on the “base case supply and base week demand from April to June 2021.”

The market operator also announced that the commercial operations of its five-minute WESM is targeted to go live by June 26. — Angelica Y. Yang

PCC approves joint venture for Manila Waterfront City reclamation project

THE Philippine Competition Commission (PCC) has approved the joint venture between Waterfront Manila Premier Development, Inc. and the City Government of Manila that will build the Manila Waterfront City reclamation project.

The commission said in a decision signed on March 15 that the transaction does not substantially lessen competition, noting that it creates a new market.

“The transaction is a new area of investment formed for the creation of a residential and commercial real estate development project,” the decision said.

“This will expand the existing market and likely create an opportunity for the emergence of new markets for commercial and residential real estate within the City of Manila.”

The Manila Waterfront City reclamation project is a 318-hectare mixed-use development south of the Manila South Harbor.

Real estate developer Waterfront Manila will contribute capital and expertise, while the Manila government hands over rights over the municipal waters on which the project will be developed.

“The resulting unincorporated joint venture shall be governed by a sharing arrangement with 51% for Manila City Government and 49% for Waterfront Manila,” PCC said.

Noting that customers or commercial activity in the relevant geographic market will not be affected, the commission said it will take no further action. — Jenina P. Ibañez

Less than half of mining firms disclosed beneficial ownership information in 2020

MORE THAN HALF of mining firms in the country did not disclose their beneficial ownership as of end-2020, which is part of the country’s commitment to international standards, Finance Assistant Secretary Maria Teresa S. Habitan said on Thursday.

“As of Dec. 29, 2020, 29 extractive companies or about 44% of those that had been requested to disclose their beneficial ownership information complied with the requirement,” Ms Habitan said in an online forum.

“The other companies have either declined publication or have missed the deadline due to roadblocks in securing the necessary board resolution,” she added.

Ms. Habitan said beneficial ownership disclosure is part of the country’s commitment to the Extractive Industries Transparency Initiative (EITI), Open Government Partnership, and the Financial Action Task Force. It requires extractive industries to publish information related to beneficial ownership, including names of politically-exposed persons.

“To emphasize, beneficial ownership information publication was optional or voluntary. Those that declined publication faced no sanctions,” Ms. Habitan said.

Among local extractive companies, 37% did not participate while 18% complied partially.
Ms. Habitan said while some companies welcomed providing information related to beneficial ownership for the EITI report, they raised data privacy concerns.

“These companies gave PH-EITI a copy of their beneficial ownership declaration forms but refused to have this published,” she added.

EITI reports started in 2014 and have been used by policymakers to determine the payments the government can generate from the mining sector.

Heightened transparency in the industry is seen to increase payments made by extractive firms commensurate to their impact on the environment.

Ms. Habitan said authorities decided in February that policies related to reporting beneficial ownership will continue to be applicable for the 2021 and 2022 EITI reports in the absence of any regulation that would make it mandatory. — L.W.T. Noble

PCA Board creates transition committee to develop coconut industry

THE Philippine Coconut Authority (PCA) Board said on Friday that it has created a transition committee to be chaired by the Trade department, which aims to ensure a coordinated approach in developing the country’s coconut industry.

The Department of Agriculture (DA) said in a statement that the transition committee will later be absorbed into the PCA’s executive committee.

DA Secretary William D. Dar said the committee is tasked to help the ExeCom in “transitional matters, including governance and management arrangements, and initial program of work.”

“We are jumpstarting the process that will modernize and industrialize the country’s coconut sector, and greatly improve its export earnings with more value-added products,” Mr. Dar said.

“This is a huge game-changer, where all our efforts making use of the billion-peso coconut levy fund will lift our small coconut farmers and their families from abject poverty,” he added.

The creation of the committee was tackled by the PCA Board during a virtual meeting on Monday.

The board, which is currently made up of six government representatives, also approved on Monday the nomination and selection process of three coconut farmer leaders from Luzon, Visayas and Mindanao, PCA Administrator Benjamin R. Madrigal, Jr. said.

The PCA board is made up of the secretaries of Agriculture, Finance, Budget, Science and Technology, and Trade, as well as the PCA administrator.

During the meeting, Mr. Madrigal also presented other projects for approval, including the completion of the coconut farmers’ registry within 90 days and the crafting of the Coconut Farmers and Industry Development Plan, which will be submitted to President Rodrigo R. Duterte for approval within 120 days, among others.

Mr. Madrigal assured coconut farmers that the PCA is “committed to meeting the deadlines to ensure the timely delivery of the benefits they deserved.”

Mr. Duterte last month signed Republic Act 115421 or the Coconut Farmers and Industry Trust Fund Act which lets poor coconut farmers benefit from taxes collected from them decades ago, which now amount to around P76 billion.

The act also seeks to declare coconut levy assets as a trust fund. — Angelica Y. Yang

Central bank fully awards short-term bills

THE BANGKO SENTRAL ng Pilipinas (BSP) sold P70 billion in one-month securities on Friday despite the uptick in accepted yields as demand remained high.

Bids for the 28-day bills offered by the BSP on Friday reached P96.2 billion, higher than the P70 billion on the auction block as well as the P77.45 billion in tenders seen the previous week.

Accepted yields for the one-month debt papers ranged from 1.85% to 2.0499%, a narrower range compared to the 1.84% to 2.15% band seen a week ago. This caused the average rate of the papers to settle at 1.963%, higher by 1.86 basis points (bp) from the 1.944% seen at last week’s auction.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the rise in the yields of the BSP’s short-term bills reflected the trend seen in the US government bonds.

“The 28-day BSP securities auction yield continued to go up amid the latest rising trend in the benchmark 10-year US government bond to new 14-month highs after the Fed estimated higher inflation,” Mr. Ricafort said in a text message.

Yields on US Treasury bonds picked up on Thursday, with the 10-year note’s rate rising to 1.754% from 1.7099% previously.

At home, yields on other government papers have also been rising in the past weeks. The Bureau of the Treasury’s three-month, six-month, and one-year papers saw their average rates pick up by 9.3 bps, 21.1 bps, and 13.8 bps, respectively, at this week’s auction.

Meanwhile, the central bank’s seven- and 14-day term deposits logged average rates 13.07 bps and 2.95 bps higher than the previous auction. — LWTN with Reuters

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