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Philippines to continue AstraZeneca rollout

The Philippine government would continue to roll out AstraZeneca vaccines even after some European countries suspended its use due to some supposed health risks, according to the Department of Health (DoH).

In a joint statement, DoH and the Food and Drug Administration (FDA) said it was aware of the decision, which it said was a precautionary measure pending investigation.

“The DOH and FDA emphasize that there is no indication for the Philippines to stop the rollout of AstraZeneca vaccines,” they said.

Health authorities were closely coordinating on the matter, they said. “The public is assured they will closely monitor all deployed vaccines.”

They also said the vaccine’s benefits continue to outweigh the risks. The vaccine could still be given while investigation is ongoing, the agencies said, citing the European Medicine Authority.

The European agency said there was no indication that the vaccination had caused blood clots, which are not among its listed side effects.

Denmark, Norway and Iceland on Thursday suspended the use AstraZeneca vaccines due to blood clots in some people who got the vaccines, Reuters reported.

The Philippines got 525,600 doses of AstraZeneca vaccines this month under a global initiative for equal access.

WHO Country Representative Rabindra Abeyasinghe last week said the Philippines would get 4.58 million AstraZeneca vaccines by May under the facility.

Health Undersecretary Maria Rosario S. Vergeire on Friday said 114,615 people had been vaccinated as of Mar. 10. Of total, 101,827 were inoculated with CoronaVac from China and 12,788 were vaccinated with AstraZeneca, she told an online news briefing.

TALLY

DoH reported 4,578 coronavirus infections on Friday, bringing the total to 611,618. It was the biggest daily tally since Sept. 14 when the agency reported 4,699 cases, according to past health bulletins.

The death toll rose by 87 to 12,694 while recoveries increased by 272 to 546,912, it said in a bulletin.

There were 52,012 active cases, 92.2% of which were mild, 4.1% did not show symptoms, 1.5% were critical, 1.5% were severe and 0.71% were moderate.

The Health department said eight duplicates had been removed from tally, while 26 recoveries were reclassified as deaths. Five laboratories failed to submit data on March 11.

About 8.6 million Filipinos have been tested for the coronavirus as of Mar. 10, according to DoH’s tracker website.

Meanwhile, presidential spokesperson Harry L. Roque, Jr. told a separate online briefing an inter-agency task force had approved a DoH recommendation to strengthen the enforcement of health protocols.

The task force approved Resolution 102, which also urged local governments to look for all suspected cases and have them tested and isolated within 24 hours.

They were also told to monitor workplaces and closed settings and ensure the proper handover of returning overseas Filipinos to them.

Party statement on Duterte for VP unauthorized — Pacquiao

President Rodrigo R. Duterte’s political party Partido Demokratiko Pilipino-Lakas ng Bayan on Friday said it did not authorize a resolution urging him to run for vice president next year.

“I did not sanction it,” Senator Emmanuel D. Pacquiao, acting national president of the party, said at an online new briefing in Filipino.

He added that the party would prioritize helping the poor now over politics.

A PDP-Laban resolution signed by some members urged Mr. Duterte to run for vice president in the 2022 elections.

Mr. Pacquiao said the party’s lineup for the 2022 national elections had not been discussed. He urged the members of the party to “focus more on the opportunity to serve.” — Vann Marlo M. Villegas

SC upholds dismissal of Arroyo’s 2016 graft case

The Supreme Court has upheld a 2016 decision by the Sandiganbayan to dismiss graft charges against former President Gloria Macapagal Arroyo in connection with a $329-million national broadband network project with Chinese company ZTE Corp.

In a resolution issued on Oct. 14 and made public on Thursday, the high court rejected the petition filed by state prosecutors to overturn the anti-graft court’s ruling for lack of merit.

The court said the petition violated Ms. Arroyo’s “constitutional right against double jeopardy” or a person’s right not to be tried twice for the same crime.

The Sandiganbayan In 2016 ruled the prosecution had failed to prove any direct or indirect interest for personal gain on Ms. Arroyo’s part during deliberations on the national broadband deal.

The high tribunal said prosecutors failed to prove that the anti-graft court had gravely abused its discretion in dismissing the corruption case. — Bianca Angelica D. Añago

AMLC clarifies rules on terrorist delisting

People whose request for delisting from the Anti-Terrorism Council (ATC) got rejected can’t file another request within six months, according to the Anti-Money Laundering Council (AMLC).

Republic Act 11479 or the Anti-Terrorism Act of 2020 requires the listing of people and entities designated as terrorists by the council. They can request for delisting on certain grounds.

“A request for delisting may be filed as often as the grounds therefore exist,” AMLC said in a posting on Friday, citing its own rule. “However, no request for delisting may be filed within six months from the time of denial of a prior request for delisting.”

The grounds for delisting include mistaken identity, change of facts or circumstances, newly discovered evidence and death of a designated person and dissolution of designated group.

Targeted financial sanctions prevent people or groups designated as terrorists from accessing their funds and assets. — Beatrice M. Laforga

Solane seizes P113,000 of illegal LPG tanks

Liquid petroleum gas (LPG) supplier Solane seized P113,480 worth of illegally refilled tanks and other items in two Albay municipalities last month, the brand said through its public relations agency on Friday.

It confiscated 48 LPG tanks in Libon and Polangui, Albay in two operations, it said in a statement issued by Rebel Marketing, the PR agency for Solane LPG under Isla LPG Corp.

Forty-four illegally refilled tanks worth P110,000, a marked P1,000 bill and a transaction receipt worth P860 were seized in Libon on Feb. 5. On the same day.

Solane also seized four illegally refilled Solane cylinders, a P1000 marked bill, a transaction receipt of P870 and other pieces of evidence worth P3,480 in the village of. Magurang in Polangui.

Solane asked consumers to report counterfeit LPGs to protect their lives and homes. Illegally sourced tanks may leak that could lead to fires and explosions, it added.

The LPG supplier said the public should only buy verified Solane tanks from authorized dealers. A verified Solane tank has the exact amount of pure LPG, with about 11.5 to to 15 kilos depending on the valve used.

Each verified Solane tank is protected against leakages and is thoroughly inspected from production to distribution, it added. — Angelica Y. Yang

January exports shrink as recession bites

Philippine exports shrank in January after rising in the previous two months, while imports continued to decline for the 21st month, the Philippine Statistics Authority (PSA) said on Friday.

Merchandise exports shrank by 5.2% to $5.49 billion in January from 9.4% growth a year earlier, according to preliminary data. Exports grew by 1.7% in December.

Imports also fell by 14.9% to $7.911 billion in January, worse than the declines of 8.2% and 2.8% in December and January 2020, respectively.

These figures were below the Development Budget Coordination Committee’s growth targets of 5% and 8% for exports and imports this year.

The latest trade figures brought the trade balance to a $2.421-billion deficit in January, wider than the $2.149-billion gap in December, but narrower than the $3.504-billion shortfall in January last year.

Total external trade in goods for the year — the sum of exports and imports — shrank by 11.1% to $13.401 billion.

Export sales growth for manufactured goods, which made up 85.7% of the total in January, was flat at 0.02% to P4.704 billion.

Exports of electronic products, which accounted for 59.1% of the total, inched up by 0.3% to $3.244 billion. This was despite a 4.4% drop in semiconductors, which made up almost three-quarters of electronic products,
Agriculture-based exports slumped by 22.7% to $332.56 million versus $430.12 million a year earlier.

Meanwhile, imported raw materials and intermediate goods declined by 9.2% to $3.197 billion. These made up 40.4% of total imports.

Capital goods, which accounted for a third of January imports, fell by 14.8% to $2.590 billion from a year earlier. Imports of mineral fuels, lubricant and related materials dropped by a third to$681.74 million.

Nicholas Antonio T. Mapa, senior economist at ING Bank NV Manila Branch, described the country’s trade performance as “more of the same,” with the economy stuck in a recession.

“The poor showing of exports related to food manufactures is tied to recent storm damage that hurt crop production” that weighed on economic growth in the fourth quarter, he said in an e-mailed note.

The Philippine economy shrank by 9.5% last year amid a coronavirus pandemic, the worst since World War II.
“The ongoing slump in imports suggests that growth pains for the Philippines will be around for some time,” Mr. Mapa said.

A potential pickup in consumer goods might signal a rebound in domestic activity, Milo Gunasinghe, a research analyst at JPMorgan, said in a separate note.

”The January print suggests such a trend has yet to materialize and supports our narrative of a fragile economic recovery ahead,” he said.

A “substantive widening” of the trade deficit is expected up too the second half given the country’s fragile recovery, he added.

Trade could still turn around as more people get vaccinated against the coronavirus. Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said by telephone.

December state infra spending falls

Government spending on infrastructure fell for the sixth straight month in December due to budget cuts and construction delays amid a coronavirus pandemic, according to the Budget department.

State infrastructure spending and other capital outlays fell by a quarter to P132.3 billion from a year earlier, based on preliminary data from the agency.

The agency said the sector was on a “gradual recovery” after the December slump softened from steep contractions in November (50.2%) and October (30.6%).

This brought infrastructure spending in the last quarter to P229.6 billion, a third lower year on year but 28.7% higher than the P178.3-billion target for the period.

Infrastructure spending plunged by 23% for the whole year from a year earlier to P681 billion. This was 11.8% higher than the P881.7-billion target.

Construction spending by the Department of Public Works and Highways (DPWH) helped exceed the goal, the Budget department said in a statement.

“The 2021 national budget will help the nation address the pandemic, boost infrastructure development and generate job opportunities, and assist communities in adapting to the post-pandemic life,” it said.

Cid Terosa, a senior economist at University of Asia and the Pacific, traced the lower December spending to a high base.

“Infrastructure spending was within expectations given that the government was cash-strapped and revenue-generating activities were constrained, he said in an e-mail. “Despite the wobbly economic state of affairs last year, the government managed to accelerate infrastructure spending in the last quarter of 2020.”

Mr. Terosa expects infrastructure spending to recover this year as coronavirus restrictions are eased.

“The 2022 presidential elections can stimulate greater infrastructure spending, but magnified and well-managed infrastructure spending is one of the critical economic revival strategies that have to be pursued with or without the elections,” he added.

Philippine banks’ property exposure a rating risk — S&P

Bank ratings across the world will likely stay resilient amid a coronavirus-induced economic crisis, according to S&P Global Ratings.

But risks remain elevated for financial institutions including Philippine banks’ growing exposure to the local property sector, it said in a report on Friday.

S&P said the credit profiles of most rated banks would likely stay resilient with just 30% of the banks globally bearing a negative outlook, including those in the Philippines.

The credit rater said the robust capital and liquidity position of banks before the pandemic hit and improved regulations would help them remain resilient.

Relief measures for the sector during the global health crisis, state support to households and the private sector that helped them cope with income losses and the projected 5% rebound in global economic output this year should also help, it added.

“Should the spillover effects on banks from the pandemic be worse or longer lasting than we forecast, we may revise the central scenario that currently underpins our ratings, which could lead to downgrades,” S&P said.

In the Philippines, banks’ high exposure to the real estate sector was a risk to their negative outlook, it said.

“The real estate sector is another potential source of risk for emerging market banks, as in developed markets,” it said.

“Pre-COVID-19 oversupply in China, Thailand and Malaysia exacerbate the risks, while significant exposures in the Philippines and South Africa — and growing exposure in Turkey as retail clients turn to durable goods in the context of a depreciating lira — similarly worsen the situation,” it added. — Beatrice M. Laforga

Philippines gets P44-B loan for vaccines

The World Bank and Asian Development Bank (ADB) on Friday approved two loans worth $900 million (P43.65 billion) that the Philippine government will use to buy vaccines against the coronavirus.

The World Bank would lend $500 million, while the ADB would lend $409 million, the multilateral banks said in separate statements.

The ADB loan will be co-financed by a $300-million loan from China-led multilateral lender AIIB.

The government expects $1.2 billion of financing from the three multilateral lenders to plug the funding gap for its P72.5-billion vaccination program to cover at least 60 million Filipinos this year.

The ADB said the Philippine loan was the first to be approved from its $9-billion Asia Pacific Vaccine Access (APVAX) facility.

The bank will pay vaccine suppliers directly and help deliver the drugs to the country, ADB senior social sector specialist for Southeast Asia Sakiko Tanaka told in a news briefing on Friday.

The vaccines must either be part of the COVAX facility, pre-qualified by the World Health Organization or approves by a stringent regulatory authority where these were produced.

The bank will provide technical assistance in the vaccine rollout, monitoring, medical waste management, vaccine information management and in expanding its coverage to include the elderly and people with disabilities.

“ADB’s support will boost the Philippine government’s urgent efforts to secure and deploy COVID-19 vaccines for all Filipinos, especially those who are vulnerable, such as frontline workers, the elderly, and poor and marginalized populations, as well as those at increased risk of severe illness,” ADB President Masatsugu Asakawa said in the statement.

He said the vaccine rollout is crucial to economic recovery this year.

Meanwhile, the World Bank said the government could use online platforms to get feedback on its program and ensure a smooth rollout.

The $500-million loan was a drawdown from the bank’s $12-billion lending facility to help low- and middle-income economies buy their own vaccines.

“Procuring and administering vaccines provides the country an added layer of defense against COVID-19 on top of public health measures or interventions like social distancing, wearing of masks and washing hands,” Ndiamé Diop, World Bank country director for Brunei, Malaysia, the Philippines and Thailand said in the statement.

“Inclusive deployment of vaccines in line with the World Health Organization Fair Allocation Framework is critical for preventing grave illness and deaths from COVID-19, opening the economy in earnest, ensuring a resilient recovery, and restoring jobs and incomes,” he added. — Beatrice M. Laforga

PSE seeks tighter rules on backdoor listing

The Philippine Stock Exchange (PSE) plans to add new requirements on its backdoor listing rules in an effort to protect and ensure that minority shareholders and potential investors are timely apprised.

“The exchange seeks to strengthen the regulation of reverse takeovers or transactions leading to the backdoor listing of unlisted companies or businesses, given that these companies or businesses do not go through the initial listing process and are not subject to the same level of scrutiny applied to companies conducting an initial public offering (IPO),” the local bourse said in a memorandum on Thursday.

The proposed amendments include changes in triggers for backdoor listing. The listing will occur if the transaction will result in changes in control of the listed company, changes in the board of directors, or if it will lead to changes in the business of the listed company.

If a listed company attributes over 50% of its revenues and/or assets to its new business as reflected on its latest financial statements, then it would be considered a substantial change in business.

“The proposed amendments were benchmarked against the rules of Bursa Malaysia, Stock Exchange of Thailand, Singapore Exchange, and Stock Exchange of Hong Kong, where an acquisition of assets by the listed company resulting in change in control of the listed company or certain percentage ratios being breached is deemed to be a backdoor listing,” the PSE said.

The transaction must be detailed through a “comprehensive corporate disclosure” submitted to the PSE within five trading days from the exchange’s directive.

Otherwise, the listed company must pay penalty fees.

The penalty fee for the first offense is P50,000 and the second offense will be P75,000.

Third and succeeding offenses have a penalty of P100,000 and the company might be suspended from trading. The exchange might also consider holding delisting proceedings depending on the violation.

The PSE also proposed that if a backdoor listing would involve the issuance of the listed company’s primary shares or if it would result in the company acquiring assets, a go-signal will be needed from at least two-thirds of its board of directors and from stockholders owning at least two-thirds of the listed company.

If the company fails to submit the required corporate approvals, penalty fees may also be charged.

The exchange also wants a written notice from the Securities and Exchange Commission (SEC) if the new controlling stockholder is not mandated to issue a tender offer based on Rule 19.3 of the Implementing Rules and Regulations of the Securities Regulation Code. If the transaction does not result in a change in the listed company’s registration statement, then a notice from the SEC should also be submitted to the exchange.

The backdoor-listed company may also be required to conduct a public offering within a year since the listing was triggered, otherwise listed shares will be suspended from trading.

“A backdoor-listed company shall conduct a public offering of at least 10% of its issued and outstanding shares within one year from closing or completion of the transaction giving rise to backdoor listing. A stock rights offering shall not be deemed a public offering for purposes of this rule,” the local bourse said.

The proposal also includes provisions on locking the shares with the investors.

Those who bought shares which resulted in the backdoor listing will be locked in until six months after the public offering. Shareholders owning some 10% of issued and outstanding shares meanwhile will be locked in for one year from the transaction leading to the backdoor listing.

If the lock-up provision is violated, the company will be charged with penalty fees. A backdoor listing fee of P5 million is included in the proposal, which may be settled upon closing or completion of the transaction.

The PSE is seeking parties to comment on the proposed amendments. — Keren Concepcion G. Valmonte

Aboitiz InfraCapital to spend over P13B on projects this year

Aboitiz InfraCapital, Inc. said Friday it targets to spend more than P13 billion on its projects, including common towers for mobile network operators, this year.

“Aboitiz InfraCapital… is earmarking over P13 billion in total consolidated capital expenditures (capex) with its partners this year for the rollout of various projects,” the company said in an e-mailed statement.

The capex budget for 2021 is more than 250% higher than the P3.7 billion the company spent last year, when the coronavirus pandemic started to ravage businesses.

Sabin M . Aboitiz, Aboitiz Group president and chief executive officer, noted the public health crisis had apparently affected the company’s short-term plans.

“But we remain committed to our businesses, and to the same growth pathway and trajectory,” he added.

The company targets to invest approximately P2.5 billion in digital infrastructure as the Philippine government and the private sector continue to work on improving the country’s connectivity to address increasing demand for digital services.

It said it recently secured a government certification, through a subsidiary, as an independent tower company allowed to build common towers for mobile network operators.

Half of the capex budget or P6.5 billion has been set aside for water projects. Such projects include the construction of Apo Agua Infrastructura, Inc.’s bulk water supply project with Davao City Water District, Aboitiz InfraCapital said.

“Once operational, Apo Agua can provide at least 300 million litres of treated water daily to over one million residents,” it added.

A budget of 2.8 billion would be used for land acquisition and redevelopment efforts while the remaining P1.2 billion would be invested in other projects in the pipeline. — Arjay L. Balinbin

Construction of Makati subway main site may happen after 2 years

The actual construction of Makati City subway’s Station 5, the project’s main construction site where the tunnel boring machines will be assembled and lowered, may happen after two years or in 2023, Philippine Infradev Holdings, Inc. said.

Philippine Infradev Holdings recently announced that its wholly-owned subsidiary Makati City Subway, Inc., which takes charge of the subway project, executed a legally binding term sheet with Richer Today, Inc. on March 9 “for, among others, the financing and acquisition of lots in and around Station 5.”

They would form an unincorporated joint venture for the “financing, design, construction, development, marketing, and sale of the lots” for the project’s Station 5 “with an area of 5.5 hectares,” it added.

The two firms would finalize and execute the joint venture agreement (JVA) within 90 days from the execution of the term sheet.

“In case the JVA is not signed within the period set herein, this term sheet shall continue to bind and govern the parties until the JVA is executed,” it said.

Richer Today, according to Philippine Infradev, will start the “actual construction” of Station 5 “after two years from the execution of the term sheet, unless during the two-year period, the construction of a specific development in the project site, which shall not have any material adverse engineering effect on the construction and/or existing structures of the subway, is otherwise allowed under the PPP (Public-Private Partnership) Joint Venture Agreement dated 30 July 2019 for the Makati City Subway Project.”

In a phone message to BusinessWorld, Antonio L. Tiu, Philippine Infradev president and chief executive officer, said when asked to clarify: “Yes, because the target is that underground civil works in the area will be completed within the two-year period.”

They intend to complete the Makati City Subway Project within seven years “from the execution of the term sheet or within such time as provided in the PPP Joint Venture Agreement,” according to the disclosure.

Richer Today, which is engaged in the business of fund transfer, remittance services, and foreign exchange transactions, among others, is expected to release at least P775.89 million within 120 days from the signing of the term sheet, with at least P234.73 million to be released within 10 business days from the execution of the term sheet, Philippine Infradev said.

Real estate and gaming businessman Kevin Kristopher K. Wong is the majority owner of Richer Today.

Philippine Infradev previously announced the termination of the investment transaction between its subsidiary and Hong Kong Binjiang Industrial Ltd. “It has been almost one year since the transactions contemplated in the greement were submitted to the Philippine Competition Commission (PCC) for approval, and to date, the same are still pending review,” it said.

For its part, PCC said the parties decided not to pursue the transaction and to terminate their share purchase agreement “due to circumstances arising from the COVID-19 pandemic.” — Arjay L. Balinbin

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