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Global impact of pandemic weighs more on markets than local situation, says AMRO

DEVELOPMENTS on the coronavirus disease 2019 (COVID-19) pandemic around the world have more impact on the stock markets of ASEAN-5 economies than their local situation, according to a new research.

In a note released on Tuesday, ASEAN+3 Macroeconomic Research Office (AMRO) said the stock indices of the five nations are affected by the global COVID-19 situation via the spillover from the US stock market.

ASEAN-5 covers the economies of Indonesia, Malaysia, Philippines, Thailand, and Vietnam.

“The results of the study reveal that the ASEAN-5 stock markets are influenced by the global COVID-19 situation more, partly representing the investors’ concern on the export performance of the ASEAN-5 economies,” said the regional macroeconomic surveillance organization.

“Both the local and the US stringency policies have significant adverse impacts on the stock market returns because the lockdown is directly hurting economic activities, in turn, the expected earnings of listed corporations,” it added.

AMRO said ASEAN-5 markets first had a rapid plunge from mid-February to late March, similar to the US markets. However, their subsequent recovery was weaker compared with markets in the US.

It added that some have attributed the weak recovery due to changes in the global risk appetite on emerging markets despite the efforts of ASEAN-5 countries to support their economies.

“It is natural that the international investors allocate the investment to ASEAN-5 when the global risk is higher. However, when there is low global risk, international investors reallocate their investment again due to the changes in risk appetite,” AMRO said.

Meanwhile, it said the policymakers of ASEAN-5 should be cautious on the reaction of their respective stock markets to their monetary policies introduced since the pandemic, as local monetary conditions and short-term local interest rate could affect investors’ expectation on economic outlook and financial stability.

It said another tool that policymakers can use in mitigating the effects of the pandemic is their exchange rate policies, aside from monetary and fiscal policies.

“The ASEAN-5 stock market volatility can be reduced by the easy monetary policy of the regional authorities during the pandemic. The exchange rate movements of the ASEAN-5 are having an effect on their stock market performance,” AMRO said. — Revin Mikhael D. Ochave

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How PSEi member stocks performed — January 12, 2021

Here’s a quick glance at how PSEi stocks fared on Tuesday, January 12, 2021.

PSEi ends three-day climb as mart turns cautious

PHILIPPINE SHARES closed in negative territory on Tuesday, ending its three-day rally, as investors opted to pocket gains following a global debt watcher’s comments on the country’s growth prospects.

The benchmark Philippine Stock Exchange index (PSEi) dropped 46.68 points or 0.63% to close at 7,258.11, while the broader all shares index fell 35.57 points or 0.81% to end at 4,337.76.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a mobile phone message that the local bourse fell as investors booked their profits after the market’s three-day rally.

“Technical-wise, PSEi is trading near the psychological resistance of 7,300, which triggers the profit taking after three consecutive days of gains. Also, I don’t see a fresh catalyst that could help the market to break out from its current resistance level,” Ms. Alviar said.

Ms. Alviar added that market sentiment was dampened as Fitch Ratings said a delay in the distribution of the coronavirus disease 2019 (COVID-19) vaccine may hurt the growth prospects of the Philippines.

Fitch on Monday kept the country’s investment grade rating at “BBB” with a stable outlook.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the local market ended lower as investor sentiment is becoming increasingly cautious.

“There was temporary optimism at the beginning of the year, but the uncertainty of what is going to happen with the global economy is spooking investors,” Mr. Mangun said in an e-mail.

All sectoral indices at the PSE closed in negative territory at the end of Tuesday’s session.

Financials retreated 22.03 points or 1.47% to 1,468.09; mining and oil declined 126.55 points or 1.28% to 9,746.88; industrials went down 117.6 points or 1.21% to 9,589.07; services decreased 15.63 points or 1% to 1,541.46; property shrank 24.98 points or 0.66% to 3,739.12; and holding firms lost 8.11 points or 0.1% to 7,424.88.

Decliners beat advancers, 144 versus 86, while 40 names ended unchanged.

Value turnover on Tuesday amounted to P9.74 billion with 41.52 billion issues switching hands, lower than the P11.52 billion with 19.98 billion issues during the previous trading day.

Net foreign selling reached P25.03 million yesterday, a turnaround from the net inflows worth P209.73 million logged on Monday.

“We may see the main index continue lower towards the 7,000 support level,” Mr. Mangun said.

Meanwhile, in the region, Malaysia led losses across Southeast Asian stock markets on Tuesday after a state of emergency was declared in the country to curb the spread of COVID-19, threatening its economic recovery and sending banking stocks sharply lower, Reuters reported.

Malaysia’s main stock index pared some of its 1.6% decline by noon, while other Asian stock markets tracked overnight losses on Wall Street. The prospects for further US fiscal stimulus had boosted several Asian markets on Monday. — Revin Mikhael D. Ochave with Reuters

Peso climbs on Fitch move

THE PESO strengthened against the greenback on Tuesday, fueled by positive market sentiment on the affirmation of the country’s credit rating as well as progress on some vaccine deals.

The local unit ended trading at P48.051 versus the dollar yesterday, gaining 4.90 centavos from its Monday close of P48.10, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s session stronger at P48.08 per dollar. Its weakest point was at P48.09 while its intraday best was logged at P48.045 against the greenback.

Dollars traded inched up to $476.25 million on Tuesday from the $451.2 million seen on Monday.

“The peso strengthened after Fitch Ratings maintained its sovereign credit rating and outlook for the Philippines despite the ongoing pandemic,” a trader said in an email.

Fitch on Monday affirmed the country’s investment grade “BBB” rating with a stable outlook as government debt levels remained moderate and growth prospects are likely to be sustained even amid the pandemic.

The stable outlook means the sovereign rating may be kept in the next 18 to 24 months.

Deals to secure vaccines versus the coronavirus disease 2019 (COVID-19) also supported sentiment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“Progress on various COVID-19 vaccine supply deals for the Philippines lately also supported market sentiment on the peso,” Mr. Ricafort said in a text message.

National Government officials said 50,000 doses from Sinovac will be delivered by February. On Sunday, vaccine czar Carlito G. Galvez, Jr. also inked a deal with the Serum Institute of India for 30 million doses of Covovax.

Local government units in the National Capital Region have also secured doses of vaccines.

For today, Mr. Ricafort gave a forecast range of P48.03 to P48.08 per dollar while the trader expects the local unit to move within a wider band of P48 to P48.20. — LWTN

Researchers predict another surge in COVID-19 infections

By Vann Marlo M. Villegas, Reporter

THE PHILIPPINES is likely to experience a fresh surge in coronavirus infections in the coming weeks after people violated social distancing rules during the holidays, according to researchers from the University of the Philippines (UP).

In a report, the OCTA Research Team also cited “super spreader events” such as the feast of the Black Nazarene, where people failed to practice minimum health standards.

The group urged the government to boost the capacity of the healthcare system, increase testing and contact tracing, continue building isolation facilities and bolster local governments’ ability to enforce community health programs and effective surveillance.

The state should also expedite orders for “safe and effective” coronavirus vaccines and ensure that these are rolled out efficiently. Medical and nonmedical frontliners should be prioritized for inoculation, they added.

“The government must also organize and urgently implement an education or information campaign to increase awareness and acceptance of the coronavirus disease 2019 (COVID-19)  vaccine,” the team said.

It said that the virus reproduction number in Metro Manila had increased past 1 to 1.17 as of Jan. 10, meaning an infected person can infect another person.

The last time it was above 1 was on Dec. 21 and had remained below that during the holiday season as testing was reduced by more than 40%.

OCTA Research also said a more contagious COVID-19 strain from the United Kingdom might already be in the country.

The number of new cases had increased to more than 400 as testing centers resumed normal operations, it said, citing data from the Health department. Cases in Metro Manila averaged 500 daily before the holidays.

“There is a clear upward trend now,” the researchers said. “If this upward trend continues, the local governments will need to implement measures to reverse this direction before the pandemic gets out of hand.”

The infection rate in the capital region was at 4% in the past week, below the 5% recommended by the World Health Organization (WHO).

In Metro manila, Quezon City reported the highest number of new cases per day in the past week, followed by Manila, Pasig, Parañaque and Marikina.

The Department of Health (DoH) reported 1,524 coronavirus infections on Tuesday, bringing the total to 491,258.

The death toll rose by 139 to 9,554, while recoveries increased by 44 to 458,172, it said in a bulletin. There were 23,532 active cases, 85.1% of which were mild, 5.5% did not show symptoms, 5.7% were critical, 3.2% were severe and 0.54% were moderate.

Davao City reported the highest number of new cases at 137, followed by Quezon City at 109, Rizal at 92, Davao del Norte at 53 and Cebu City at 51.

DoH said two duplicates had been removed from the tally and 78 recovered cases were reclassified as deaths. Six laboratories failed to submit their data on Jan. 11.

About 6.7 million people have been tested for COVID-19 in the Philippines as of Jan. 10, according to DoH’s tracker website.

The coronavirus has sickened about 91.4 million and killed about two million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

About 65.4 million people have recovered, it said.

Meanwhile, health authorities said new coronavirus strains had not been detected in the Philippines.

“The Department of Health (DoH) and Philippine Genome Center (PGC), to date, have not detected the UK variant, or any new variant of SARS-COV-2 in any of the positive samples tested,” it said in a statement. The agencies are “closely working together in order to intensify ongoing biosurveillance efforts.”

DoH on Friday said it was monitoring the entry of new coronavirus variants from South Africa and Malaysia aside from the United Kingdom variant that is more contagious.

A 30-year-old Filipina domestic helper from Cagayan Valley Region in northern Philippines who arrived in Hong Kong last Dec. 22 tested positive for the UK variant on Jan. 2. Authorities have traced people she had contact with.

Senator says gov’t likely to miss target for vaccine orders

THE GOVERNMENT would probably miss its target of ordering 148 million doses of coronavirus vaccines by the year-end, according to a senator.

“The arrival of the vaccines is not even definite,” Senator Franklin M. Drilon said in a statement on Tuesday.

“How can they say that they will be able to purchase 148 million doses by the end of 2021 when up to now, we haven’t given any emergency use authorization to any vaccine and we have not been able to raise, through loans, all the needed amount for the purchase of the vaccines?” he asked.

The government plans to buy more than 140 billion vaccine doses to inoculate at least 50 million Filipinos this year. The Philippine government is finalizing talks on coronavirus vaccine orders and might start the rollout next month, according to vaccine czar Carlito G. Galvez, Jr.

About 40 million doses will come from the COVID-19 Vaccines Global Access (COVAX) facility for 20 million to 30 million people, he told senators at a hearing on Monday.

COVAX, co-led by Gavi, the Vaccine Alliance, Coalition for Epidemic Preparedness Innovations and the World Health Organization (WHO), aims to ensure the availability of coronavirus disease 2019 (COVID-19) vaccines to all countries.

“The plan is good on paper,” Mr. Drilon said. “The plan is filled with uncertainties and it leaves too much to chance,” he added, noting that targets could be achieved without the restrictions on local government units and private companies to negotiate directly with drug companies.

Senators have also flagged Filipinos’ unwillingness to get inoculated. A Pulse Asia poll found that nearly 50% of Filipinos did not want to get vaccinated.

“Transparency is a key driver of public confidence in vaccines,” Mr. Drilon said. “The lack of access to information fuels doubts and confusion among the public.”

Senator Sherwin T. Gatchalian said in a separate statement this hesitancy could prolong the delays in the resumption of face-to-face classes.

Senator Risa N. Hontiveros-Baraquel said statements from the Palace saying Filipinos won’t be able to choose which vaccines they will get would add to the public doubt.

NO MONOPOLY
Local governments may order coronavirus vaccines through a multilateral agreement, presidential spokesman Harry L. Roque told an online news briefing on Tuesday, adding that the central government was not building a monopoly on procurement.

Several local government units (LGUs) have sealed tripartite agreements with the National Government for vaccines from British drug maker AstraZeneca Plc.

“Local governments can buy vaccines, but this is through entering a multilateral agreement for the advanced purchase — and this is for the AstraZeneca vaccine,” he said in mixed English and Filipino.

He said the multilateral deal would involve the National Government and Department of Health (DoH). Under the deal, local governments will shoulder the cost of the vaccines and plan their distribution, he added.

“All entities should have the freedom to bid and purchase volumes of vaccine supply based on prevailing market prices without interference from the National Government,” InfraWatchPH convenor Terry L. Ridon said in Facebook Messenger chat on Tuesday.

Meanwhile, the National Government might tap the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and World Bank for $1.3 billion worth of loans to plug the funding needs of its mass vaccination program against the coronavirus, Finance Secretary Carlos G. Dominguez III told an online forum on Tuesday.

The mass vaccination program targets to cover at least 60 million Filipinos this year with a budget of P72.5 billion. The P70 billion is under unprogrammed funds, while the rest is under the Health department’s budget.

PRIORITY
Meanwhile, Cabinet Secretary Karlo Alexei B. Nograles said health frontliners in the capital region would be prioritized for vaccines developed by China’s Sinovac Biotech Ltd.

Those on the government’s priority list such as health workers, senior citizens and indigents are free to reject the coronavirus shot, he said.

“We will have to have them sign some sort of waiver or an understanding that they understand the implications of them waiving their privilege to get vaccinated,” he added.

Filipinos living in certain provinces might miss out on the vaccine developed by British drug maker Pfizer, Inc. because of the lack of ultracold-storage facilities in some areas, presidential spokesman Harry L. Roque, Jr. said.

“The public can’t choose any vaccine because the Pfizer vaccine requires -70 degrees celsius,” he told an online news briefing. “This means it can only be for Manila, Cebu and Davao, which have cold-storage facilities.”

Reports showed that the Pfizer vaccine, which had been authorized by the World Health Organization (WHO) for emergency use, has the highest efficacy against the COVID-19 virus.

The Sinovac vaccine, known as CoronaVac, showed a general efficacy of less than 60% in its late-stage trial in Brazil. The Chinese vaccine does not require ultracold storage.

“All vaccines, as long as they pass the Food and Drug Administration (FDA), are proven safe and effective,” Mr. Roque said. The brand is not important, he added.

Rabindra Abeyasinghe, the World Health Organization representative in the Philippines, told a separate briefing the government should solve Filipinos’ vaccine hesitancy through “clear and transparent” data. — Charmaine A. Tadalan and Kyle Aristophere T. Atienza

Nationwide round-up (01/12/21)

PhilHealth, private healthcare officials slapped with charges

THE National Bureau of Investigation (NBI) on Monday filed new criminal and administrative complaints against officials of the Philippine Health Insurance Corp. (PhilHealth) over alleged irregularities in a financial assistance program for health care institutions hammered by “fortuitous” events like the coronavirus pandemic.

The NBI filed the complaints before the Office of the Ombudsman against resigned PhilHealth president and chief executive officer Ricardo C. Morales, among other former and current officials, for alleged violation of the Anti-Graft and Corrupt Practices Act.

The respondents also face raps for allegedly misappropriating funds in violation of the National Health Insurance Act of 2013. They also face administrative charges of grave misconduct, gross negligence, and conduct prejudicial to public interest.

Three officers of private firm B. Braun Avitum Philippines, Inc. were also named as respondents.

The NBI, in a statement, said the complaint is for the “irregular release and utilization” of the P33.8 million in Interim Reimbursement Mechanism (IRM) funds granted to B. Braun Avitum.

Investigators claimed that PhilHealth disregarded rules in approving and releasing the IRM fund. They said PhilHealth allotted an amount higher than the “correct allowable” IRM fund to health care institutions.

“Computation for the Php 27-billion IRM fund was also erroneously made by PhilHealth,” the bureau said.

Therapy Management Services Philippines, Inc., B. Braun’s wholly-owned subsidiary, also received irregular funding from PhilHealth amounting to P15.9 million, according to the NBI.

“It is also worth stressing that PhilHealth failed to organize a Validation Team” to assess the effects of the coronavirus pandemic and determine the percentage of allowable IRM fund to be granted to the requesting health care institution, the bureau said.

The Presidential Anti-Corruption Commission (PACC) has previously filed complaints against 25 officials of PhilHealth’s Regional Office No. 1 for alleged involvement in 27 anomalous transactions.

Justice Assistant Secretary Neal Vincent M. Bainto said the amount involved in the transactions is around P1.1 million.

“This alleged fake Pamela Del Rosario account has been discussed and deliberated upon several times by Task Force PhilHealth in its meetings. PACC was the one who did the investigation. The PACC’s Report was also validated by the DoJ (Department of Justice) and we found it sufficient to be filed before the Ombudsman,” he said in a statement. — Kyle Aristophere T. Atienza

Solons push for direct vaccine purchase by private sector, LGUs

MEMBERS of the House of Representatives are urging the national government to allow a “parallel purchase” of coronavirus disease 2019 (COVID-19) vaccines wherein local governments and the private sector can directly buy from manufacturers.

“(A)allowing LGUs (local government units) and private companies to buy their own vaccine will greatly help the national government in achieving its goal of herd immunity,” Deputy Speaker Rufus B. Rodriguez said in a statement on Tuesday.

Mr. Rodriguez filed Resolution No. 1460, which will allow local officials to import vaccines from pharmaceuticals.

BHW Party-list rep. Angelica Natasha Co, meanwhile, said the government’s task force against COVID-19 should allow the direct purchase arrangement to prevent potential delays in meeting its vaccination goals.

“There will be congestion in the purchasing pipeline and there will be long unnecessary delays up ahead,” she said.

Under the current policy, local governments can buy vaccines only with approval from the national government. — Gillian M. Cortez

Ombudsman drops graft charges vs Abaya in MRT case

THE Ombudsman has dropped the graft charges against former transportation secretary Joseph Emilio A. Abaya and 16 others over a deal relating to the government-run Metro Rail Transit Line 3 (MRT-3).

In its decision released to reporters on Tuesday, the Ombudsman said it reversed its earlier indictment given proof that the procurement process for a maintenance contract between MRT-3 and Busan Universal Rail, Inc. (BURI) was “above-board.”

“(T)his Office has no recourse except to reconsider its finding of probable cause against said respondents and dismiss the complaints against them,” states the decision.

“The problems hounding the MRT-3 operations appear to be in the implementation stage of the long term maintenance contract, involving issues that were not present during the screening, negotiation and bidding process thereof.”

The Ombudsman indicted Mr. Abaya and 16 others in 2018 for graft and plunder charges over the BURI deal worth over P3 billion. — Gillian M. Cortez

Gov’t warns internet providers of penalties relating to child pornography

THE government reminded internet service providers (ISPs) of their legal duty to block websites engaged in child exploitation as reported cases surge amid increased online activities during the pandemic.

Cabinet Secretary Karlo Alexei B. Nograles said President Rodrigo R. Duterte has already ordered the National Telecommunications Commission (NTC) to direct ISPs to immediately install available technology or software that will block online sites engaged in child exploitation.

“For the ISPs, you must be reminded of your obligation under Republic Act No. 9775 or the Anti-Child Pornography Act of 2009. Put up technology to block child porn sites,” Mr. Nograles said in a news briefing Tuesday.

He stressed that erring firms will be penalized.

“Online sexual exploitation has always been a major concern of the government. The pandemic has contributed to online sexual exploitation. The victims have a median age of only 11 years old,” he said.

The Justice department has also been ordered to conduct a probe on child pornography.

He said the President directed the Justice department to begin its investigation on child pornography. — Kyle Aristophere T. Atienza

Former justice secretary Aguirre appointed to NAPOLCOM

PRESIDENT Rodrigo R. Duterte has appointed former justice secretary Vitaliano N. Aguirre II to the agency in charge of disciplining the police force.

Presidential Spokesperson Harry L. Roque, Jr. on Monday night confirmed the appointment of Mr. Aguirre as commissioner of the National Police Commission (NAPOLCOM) “representing the private sector.”

“Mr. Aguirre served as Department of Justice Secretary (DoJ) during the early years of the Duterte Administration. This bodes well in his new position to make the police service competent, effective, credible and responsive to our people’s needs,” Mr. Roque said in a statement.

Mr. Aguirre, former classmate and fraternity brother of Mr. Duterte in law school, resigned from the DoJ post in 2018 after Malacañang announced that the President was enraged by the dismissal of charges against confessed drug dealer Rolando R. Espinosa, Jr. and alleged drug lord Peter G. Lim.

The NAPOLCOM, an agency attached to the Department of Interior and Local Government (DILG), has administrative authority and operational supervision over the Philippine National Police. — Kyle Aristophere T. Atienza

Regional Updates (01/12/21)

Sulu lockdown sets back arrest warrant issuance vs cops in Sulu shooting

JUSTICE Secretary Menardo I. Guevarra cited the coronavirus-related lockdown in Sulu for the delayed issuance of arrest warrants against the nine police officers charged for the killing of four soldiers in the province’s capital Jolo on June 29 last year. “The court was supposed to issue the warrants of arrest thereafter, but apparently failed to do so because of the current lockdown in Sulu,” he told reporters Tuesday via Viber. Mr. Guevarra said he instructed the prosecutors to file an urgent motion to the court for the issuance of a hold-departure order against the accused. “We hope that the nine accused will voluntarily turn themselves in when such warrants are eventually released by the court,” he said. “Otherwise, law enforcement agents will look for them and take them into custody,” he added. The Philippine National Police (PNP) released the nine cops last week after their dismissal from the service based on administrative charges. The military has expressed disappointment over the PNP’s move. The four soldiers were on an intelligence operation against suspected suicide bombers when they were shot and killed by the cops. — Vann Marlo M. Villegas

New MMDA chair to prioritize road, mass transport improvements

THE newly-appointed Metropolitan Manila Development Authority (MMDA) chair is prioritizing the improvement of roads and mass transport to ease traffic congestion in the capital. MMDA Chairperson Benhur S. Abalos, Jr., who was sworn into office Monday, said he will build up on existing programs as well as propose new solutions such as the construction of elevated bus ramps at the U-turn slot segments along the main thoroughfare EDSA. “There will be continuity here. I promise you that,” he said at a televised press briefing Tuesday. Mr. Abalos said the agency is now focused on improving the vehicular flow along bus lanes. The new MMDA head is also planning to move the lane for motorcycles to the right side of the road and designate bike lanes once the traffic flow improves. Mr. Abalos, a former mayor of one of the Metro Manila cities, said he also wants to see a greener metro by having more plants in public spaces. The latest report by global database Numbeo showed the Philippines among the countries with the worst traffic in the world. — Kyle Aristophere T. Atienza

New laboratory in Tuguegarao to help protect crops from diseases

A zoonotic disease diagnostic laboratory in Tuguegarao City has been completed, seen as a boost to crop protection in the Cagayan Valley Region. The project is a joint United States-Philippine project through the US Department of Defense Cooperative Threat Reduction program of the Defense Threat Reduction Agency and the Philippine Department of Agriculture (DA) and Bureau of Animal Industry (BAI). “Through the enhancement of testing capability and biosafety and biosecurity training, this laboratory will be on the frontline in efforts to protect farmers and their crops from the harmful effects of naturally occurring pathogens in the Cagayan Valley,” the US Embassy said in a statement on Tuesday. The facility, located at the Regional Animal Disease Diagnostic Laboratory, will help in detecting and diagnosing pathogens and zoonotic diseases that may potentially be dangerous to the agriculture industry. — Charmaine A. Tadalan

Transport dep’t invites bidders for Cebu port works to prequalify

THE Transportation department said it started inviting potential bidders for the civil works contract of the P10-billion New Cebu International Container Port project to join the prequalification process.

The department said Tuesday in an announcement that it intends to “prequalify” firms for the South Korea-funded project through the Special Bids and Award Committee.

“The works to be performed by the contractor under this contract comprise, but (are) not limited to, detailed engineering design and construction of berthing facilities, revetment for reclamation, dredging and reclamation, road, bridge, water supply and drainage, electric installation, architectural facilities, and electronic communication facilities,” it added.

Eligible firms may submit their expressions of intent to the Transportation department on or before Jan. 20 at 8 a.m.

The deadline for submitting prequalification documents to the department is Feb. 24, 8 a.m.

The bid is open to South Korean contractors.

Eligibility criteria include “at least three seaport including quay wall construction contracts… successfully or substantially completed within the last 15 years either in the Republic of Korea or in other countries, where the value of the applicant’s participation exceeds $60 million per contract. Of these three contracts, at least one contract shall have been executed on engineering, procurement and construction (EPC) basis.”

It added that the applicant should also have experience operating in tropical climates similar to that of Cebu.

The invitation for bids will be issued in March.

The department said the detailed design and construction phase of the project is scheduled to start in the third quarter of the year.

The project, according to the Finance department, has an estimated overall cost of P10.1 billion.

In 2018, Finance Secretary Carlos G. Dominguez III signed a $172.64-million loan agreement with the Export Import Bank of Korea for the construction of Cebu’s new container port.

The government will provide P1.4 billion or $26.09 million for the new Cebu port project, which “aims to free up the existing seaport in the province and provide a more efficient and reliable transport infrastructure for the unimpeded flow of goods and services in the Visayas,” the Finance department said in a statement on its website.

“It will include a berthing facility with a 500-meter quay wall length that can simultaneously accommodate two 2,000 TEU (Twenty-foot Equivalent Unit) vessels; operating facilities and structures for containers such as a freight station and inspection shed; an access road and bridge; and a dredged waterway and turning basin,” it said.

The loan carries a preferential interest rate of 0.15% per year for non-consulting services and 0% for consulting services. The maturity period is 40 years, inclusive of a 10-year grace period.

On March 9, 2020, the Transportation department signed a consulting services contract with the joint venture of South Korea’s Yooshin Engineering Corp., Sekwang Engineering Consultants Co. Ltd., and Korea Engineering Consultants Corp. in association with SVTI.

Under the contract, the consulting services will be financed out of the proceeds of the loan and should not exceed $5.44 million. — Arjay L. Balinbin

BoI sees cold chain industry revenue at P20 billion by 2023

THE cold chain industry is expected to become a P20 billion industry by 2023, led by its core market of food but with new impetus provided by vaccine distribution, the Board of Investments (BoI) said.

The BoI and industry groups last month launched the Cold Chain Industry Road Map, which includes a blueprint for industry expansion during the public health emergency. The BoI had not responded to requests for comparative revenue data at deadline time.

“Now that several vaccines have been given emergency approvals around the world, we are expecting that these vaccines would be made available in the country at the soonest possible time,” BoI Managing Head Ceferino S. Rodolfo said in a statement Tuesday.

“As such, we have to prep our industry for the nationwide distribution of the vaccines that require certain temperatures.”

The government is in talks with several vaccine manufacturers for 148 million COVID-19 vaccine doses to inoculate 50-70 million Filipinos this year.

Anthony Dizon, Cold Chain Association of the Philippines, Inc. president, said the industry plans to use a hub-and-spoke method to distribute vaccines, but is still waiting for information from the government on vaccine procurement.

“There needs to be an extensive study to make sure that the supply chain facilities are available to complete the vaccine distribution cycle,” he said.

The growth of the industry, Mr. Dizon added, will largely depend on the development of food production.

Agriculture Undersecretary Zamzamin L. Ampatuan said that the road map currently details the cold chain and logistics requirements of the agri-fisheries sector.

Real estate services firm JLL Philippines said that demand for logistics space is expected to grow 160,000 square meters per year over the next decade due to a spike in e-commerce demand. Dry storage accounts for two-thirds of the current supply, while cold storage accounts for 21%. — Jenina P. Ibañez

Modules, COVID added to eligible LGU projects

THE Department of Budget and Management said a P13.585-billion support fund for local government units (LGUs) may now also be tapped for priority use in online education and pandemic-related programs.

Budget Secretary Wendel E. Avisado’s Local Budget Circular No. 131 dated Jan. 8, detailing the rules for releasing the Local Government Support Fund-Financial Assistance (LGSF-FA).

The fund’s priority uses now include education, health and social protection programs in the wake of the pandemic. These include the distribution of learning modules, emergency health measures and livelihood and employment aid initiatives.

According to the circular, published Tuesday, other priority uses are the construction and rehabilitation of local roads, bridges, public markets, slaughterhouses, buildings, pavement, drainage canals, seawalls, water systems, evacuation centers, public parks, fish ports and post-harvest facilities.

The fund can also be tapped to buy ambulances, trucks, mini dump trucks, cars and multicabs. It can also fund street lighting or barangay electrification; and to buy medical equipment.

Other eligible uses are medical, burial, transportation, food, cash for work and educational assistance for low-income households.

LGUs have to meet a minimum standard obligation rate, which is based on their utilization rate of the funds received previously. The norm is 70% usage for LGSF-FA funds received last year, and 100% for funds received between 2016 and 2019.

LGUs have until June 30 to submit their applications and supporting documents. — Beatrice M. Laforga

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