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Stocks fall on virus worries as Europe cases rise

LOCAL SHARES declined on Tuesday as investors started worrying about the rise in coronavirus disease 2019 (COVID-19) cases overseas.

The bellwether Philippine Stock Exchange index (PSEi) slid 15.04 points or 0.25% to close at 5,894.28. The broader all shares index trimmed 4.84 points or 0.13% to end at 3,543.93.

“Philippine shares weakened amid concerns about the COVID-19 trajectory in Europe…,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

Several European countries have again imposed restrictions as COVID-19 cases there surged to 4.49 million as of Tuesday. A total of 42,965 new cases have been recorded across the region in just the last two days.

This prompted Britain to consider a national lockdown. Prime Minister Boris Johnson was expected to announce new restrictions yesterday.

“The PSEi continued sideways again and ended with a slight loss… A spike in new COVID-19 cases abroad may have negatively affected the sentiment,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

After nearly nine months since the virus broke out in Wuhan, China, COVID-19 has infected 31.32 million individuals and killed 964,765 worldwide, based on data from Johns Hopkins University.

The dampened sentiment put most sectoral indices at the PSE in red territory at the market’s close. Financials shed 8.69 points or 0.75% to 1,142.55; property lost 17.77 points or 0.64% to 2,744.43; industrials dropped 15.82 points or 0.20% to 7,803.99; and mining and oil slipped 6.82 points or 0.11% to 6,007.89.

On the other hand, services gained 1.56 point or 0.10% to 1,455.41, and holding firms climbed 4.06 points or 0.06% to 6,146.71 at the end of Tuesday’s session.

Some 4.4 billion issues valued at P4.63 billion switched hands on Tuesday against Monday’s 2.13 billion issues worth P4.27 billion.

Decliners outpaced advancers, 105 against 86, while 46 names ended unchanged.

Net foreign selling increased to P655.13 million on Tuesday from P551.85 million a day ago.

Asian shares were broadly weaker Tuesday as possible delays in expanded US stimulus and concerns about fresh pandemic lockdowns in Europe dented the recent positive sentiment towards global equity markets, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.68%.

A burst of positive sentiment emerged briefly in China as the blue-chip index traded higher, but the market then again slipped into negative territory.

Japanese markets were closed for a public holiday.

Overnight on Wall Street, the Dow Jones Industrial Average fell 1.84%, the S&P 500 lost 1.16%, and the Nasdaq Composite dropped 0.13%. — Denise A. Valdez with Reuters

Virus deaths top 5,000 as cases near 300,000

THE PHILIPPINE death toll from the coronavirus pandemic exceeded 5,000 on Tuesday, as infections rose to 291,789, according to the Department of Health (DoH).

Deaths rose to 5,049 after 50 more patients died, while recoveries increased by 450 to 230,643, it said in a bulletin. The agency reported 1,635 new coronavirus disease 2019 (COVID-19) infections.

There were 56,097 active cases, 86.4% of which were mild, 9.2% did not show symptoms, 1.3% were severe and 3.1% were critical.

Of the new cases, 583 came from Metro Manila, 102 from Cavite, 97 from Iloilo, 67 from Rizal and 57 from Cebu, the agency said.

Metro Manila had the highest number of new deaths with 20, followed by Western Visayas with 10, the Calabarzon region with eight and Central Luzon with four, it said.

Zamboanga Peninsula reported three, Cordillera Administrative Region had two, the Bicol region, Central Visayas and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) reported one each, DoH said.

More than 3.2 million individuals have been tested for COVID-19, the agency said.

Meanwhile, 13 hospitals will participate in the World Health Organization’s (WHO) so-called solidarity coronavirus vaccine trials, according to the Department of Science and Technology.

An inter-agency task force against the virus approved the agency’s zoning plan for the trials, Science and Technology Secretary Fortunato T. de la Peña said in a statement on Monday.

The 13 hospitals are located in eight zones where the vaccines will be tested, he said.

Nine of them are in Metro Manila — Philippine General Hospital, Manila Doctors Hospital, San Lazaro Hospital, Lung Center of the Philippines, St. Luke’s Medical Center-Quezon City, Research Institute for Tropical Medicine, Makati Medical Center, The Medical City and St. Luke’s Medical Center–BGC are.

Also included are Vicente Sotto Memorial Medical Center, Chong Hua Hospital in Cebu City, De La Salle Health Sciences Institute in Cavite, and Southern Philippines Medical Center in Davao City.

The Science and Technology department earlier said the areas had been picked based on their transmission rates.

The solidarity trials will start in October and is expected to be completed by the second quarter of next year, Mr. de la Peña said.

The Philippines has a deal with five vaccine developers to enable clinical data sharing, he added.

Ventilators developed by local groups are being tested at the agency, with three groups developing ventilators, it said.

Meanwhile, Vice President Maria Leonor G. Robredo said there is more to fighting the coronavirus pandemic than waiting for a vaccine and “spraying pesticides.”

“I think it’s not enough that just because we have a hospital, bed and funeral parlor, we only need to wait for a vaccine,” she said in a Facebook post late Monday.

This comes after President Rodrigo R. Duterte lashed out at the opposition including Ms. Robredo for criticizing the government’s response to the pandemic.

“They say we are not doing enough, what can we do with the virus that is flying around?” Mr. Duterte said in a recorded speech.

He said only a vaccine could solve the pandemic, adding that critics should instead ride a plane and spray pesticides all over the country, especially Manila.

Ms. Robredo said there the government must address “main challenges” amid the pandemic. The government should control the pandemic through “medical and non-medical interventions,” she added.

She also said the country could overcome humanitarian emergencies, including poverty, hunger, unemployment and mental distress by restructuring public and private finances and the whole economy “in an inclusive, resilient and sustainable way.”

Mr. Duterte has been faulted for his  militaristic approach in containing the virus, instead of dealing with the health and economic aspects of the pandemic.

Defense Secretary Delfin Lorenzana, the head of the national task force had said the Philippines was seeking to flatten the curve by the end of September.

In epidemiology, the idea of slowing a virus spread so that fewer people need to seek treatment at a time is known as flattening the curve.

The curve researchers are talking about refers to the projected number of people who will get infected over time.

The coronavirus has sickened 31.5 million and killed about 970,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

More than 23,000 people have recovered from the virus, it said.

It added that active cases stood at 7.4 million, less than 1% of which or 61,880 were either serious or critical, according to the website.

The United States had the most infections at more than seven million, followed by India with 5.6 million and Brazil with 4.6 million. The US also had the most deaths at 204,506, Brazil had 137,350 and India had 88,965.

Local coronavirus infections have slowed, while the country’s healthcare system has improved, the government said earlier this month, citing a study by researchers from the University of the Philippines.

Metro Manila, Batangas, Bulacan, Tacloban, and Bacolod are under a general community quarantine, while the rest of the country is under a more lax modified general community quarantine. Iligan City is the sole area in the country that is under a modified enhanced community quarantine. — Vann Marlo M. Villegas and Kyle Aristophere T. Atienza

Local units have final say on travel limits, Tourism agency says

Local governments will have the final say on whether to allow the entry of travelers from Metro Manila even after lockdown measures are eased by the National Government, according to the Tourism department.

Local governments in areas that are reopening for tourists have agreed that only locals are allowed to travel within their region, Tourism Secretary Bernadette Romulo-Puyat told an online news briefing on Tuesday.

“Tourism is now allowed but again, with the concurrence of the local government unit,” she said in mixed English and Filipino.

Trade Secretary Ramon M. Lopez on Monday said Metro Manila should shift to a modified general community quarantine by October so more sectors could reopen.

The Tourism department launched a program for Northern Luzon where as many as 200 tourists may enter Baguio City daily starting Oct. 1. Other areas in the region may accept up to 50 travelers daily.

Baguio City Mayor Benjamin B. Magalong said the won’t accept tourists yet from Metro Manila, considered as the local center of the pandemic.

Of the new COVID-19 cases on Tuesday, 583 came from Metro Manila, 102 from Cavite, 97 from Iloilo, 67 from Rizal and 57 from Cebu, the agency said.

Meanwhile, P400 million of funds originally meant to rehabilitate Burnham Park in Baguio City had been channeled into the government’s anti-coronavirus efforts, Ms. Puyat said. The project will resume once funds become available, Mr. Magalong said. — Jenina P. Ibañez

House supermajority wants speakership term-sharing junked

THE HOUSE of Representatives supermajority wants Speaker Alan Peter S. Cayetano to keep his post instead of letting Marinduque Rep. Lord Allan Q. Velasco take over under an original term-sharing deal.

The speaker enjoyed the trust of most congressmen amid a threat to unseat him over the inequitable share of lawmakers’ districts in next year’s national budget, Deputy Speaker Luis Raymund F. Villafuerte told the ABS-CBN News Channel on Tuesday.

“The supermajority of congressmen would like Speaker Alan Cayetano to continue,” the congressman from Camarines Sur said. He added that the House performance has improved under Mr. Cayetano’s leadership during the pandemic.

“Even during a break, it still works,” Mr. Villafuerte said. “Its rating increased, the highest rating ever for the House of Representatives.”

Mr. Cayetano will resolve the complaints from one or two lawmakers, he added.

Mr. Villafuerte said Mr. Velasco does not stand a chance without the intervention of President Rodrigo R. Duterte in the speakership. Mr. Velasco did not answer a phone call seeking comments.

The President brokered the term-sharing pact between Mr. Cayetano and Mr. Velasco in 2018. Mr. Cayetano will serve as speaker for 18 months up to October, while Mr. Velasco will get to keep the post for 21 months.

Presidential spokesman Harry L. Roque told an online news briefing on Monday that while Mr. Duterte hopes that both would honor the deal, he could do anything if Mr. Velasco does not have the support.

Some congressmen have complained of an inequitable share in the P4.5-trillion national budget for next year, threatening to delay the passage of the bill.

Presidential Son and House Deputy Speaker Paolo Z. Duterte at the weekend threatened to stage a coup against Speaker Alan Peter Cayetano after some lawmakers complained of inequitable shares for their districts in the 2021 national budget.

Mr. Duterte on Sunday said he had sent a message to a group of lawmakers on Viber that he would ask the Mindanao bloc of congressmen on Monday to declare the positions of speaker and deputy speakers vacant. That threat did not materialize.

Mr. Cayetano and his wife Lani represent the two legislative districts of Taguig City, while Mr. Villafuerte represents the second district of Camariñes Sur, a province ruled by the Villafuerte clan.

Mr. Villafuerte said they were not fighting for their own personal interests, adding that congressional districts’ needs vary. — Kyle Aristophere T. Atienza

Regional Updates (09/22/20)

President gives thumbs up to Manila Bay ‘white sand’

PRESIDENT RODRIGO R. Duterte defended the artificial white sand project along Manila Bay and praised Environment Secretary Roy A. Cimatu for the rehabilitation program. “Now, people now are really enjoying the reclaimed area with the white sand,” Mr. Duterte said in a televised talk late Monday. People flocked to Manila Bay on Sunday when the area with the controversial project was opened to the public. The laying of  crushed dolomite for a “white sand” effect is part of the Manila Bay rehabilitation program that started January 2019. The Supreme Court mandamus that directed the rehabilitation was issued in 2008. The use of dolomite has been criticized over health risks and environmental impact. — Gillian M. Cortez

Tacloban mayor seeks amnesty on local tax penalties to boost collection

TACLOBAN CITY Mayor Alfred S. Romualdez has asked the local council to pass two ordinances that will condone the payment of penalties, surcharges, and interests on unpaid local taxes “for 2019 and prior years.” The amnesty covers those who failed to pay real property taxes and other tariffs collected by the local government. The mayor endorsed draft copies of the two ordinances to the council on Sept. 21. In a statement, the city government said the mayor “hopes to encourage the public to pay their obligations to the City without the penalties, surcharges, and interests, to mitigate the adverse economic impact of the pandemic to the landowners, proprietors, and all other Taclobanons.”

SMC starts nutribun food relief project in 4 areas

SAN MIGUEL Corp. (SMC) kicked off its free nutribun project for poor communities on Tuesday, with four baking sites set up in Petron gas stations starting operations. The four areas are Caloocan, Tondo, and Payatas in Metro Manila and Malolos in Bulacan. “About a month ago, we announced a new initiative to make nutribuns available to the poor, to help keep them from hunger as our country continues to deal with the health crisis. I’m happy to report that the first four Petron nutribun baking stations are now operational,” SMC President and Chief Operating Officer Ramon S. Ang said in a statement. The distribution of nutribuns are handled by partner non-government organizations and the local government units. Mr. Ang said more sites will be added as soon as special baking ovens are built and installed at other Petron stations.

Liquor ban: Mayors wrestle with business welfare vs irresponsible drinkers

THE IMPOSITION and lifting of liquor ban amid the coronavirus crisis, a function mainly relegated to mayors, is proving to be a tough balancing act between the welfare of businesses and managing social gatherings that could be venues of virus transmissions. Baguio Mayor Benjamin B. Magalong yesterday recalled his directive made just a day before to reimpose the liquor ban as the city prepares to reopen to tourists starting with residents of provinces in Region 1. He ordered the ban after findings that “unbridled drinking sprees caused the two recent clustering of coronavirus disease 2019 (COVID-19) cases in the city,” according to a statement from the city government. Mr. Magalong said the reconsideration to lift the ban was made alongside a strengthened policy to monitor residents for the observance of health protocols. “What happened at Slaughterhouse and Ferdinand barangays must not be disregarded but we also have to consider the economic repercussions of implementing another liquor ban at this time when businesses are struggling to recoup their losses,” he said. The mayor also appealed to the public “to do their share.” He said, “Let us continue to espouse discipline wherever we are and whatever we do.  It is our only hope in surviving the virus and moving on with our lives.  When we drink, please make sure that we don’t overdo it.  Drink moderately and be virus-free,” he said.

DAVAO CITY
In Davao City, where the liquor ban was in effect for more than six months and lifted only on Sept. 21, Mayor Sara Duterte-Carpio stressed that the decision was mainly “for the businesses and for the people who are working in the liquor business.” Warning residents of unrestrained drinking, she said, “We did not lift the liquor ban for you.” Dining places are restricted to serving just two portions of alcoholic beverage per customer while pubs and other similar establishments are still prohibited from operating. Serving as well as retail sales of liquor is also subject to the city’s ordinance imposing a prohibition from 1 to 8 a.m. — Maya M. Padillo

Telecom permit approvals top 900 in past month

THE Anti-Red Tape Authority (ARTA) said over 900 telecommunications permits have been approved over the past month, after it ordered local governments to release pending applications.

In a statement Monday, ARTA said that 933 telecommunications permits have been approved. PLDT, Inc. and Smart Communications, Inc. reported that 661 documents have been released, including permits and barangay resolutions. Globe Telecom, Inc. said that 272 of its permits have been approved.

ARTA last month ordered local governments to release their list of pending permits for telecommunications towers, applying the rules of the Ease of Doing Business law to eliminate delays.

In the order, ARTA said that permit applications that have exceeded seven days from completion will be deemed approved.

The seven-day deadline complies with the law’s time limit for “complex transactions.” The law requires government agencies to observe three types of deadline: Three working days for simple transactions, seven working days for complex transactions, and 20 working days for highly technical applications.

ARTA sent 57 compliance orders to 49 cities and municipalities.

ARTA Director-General Jeremiah B. Belgica said that he is happy that local governments and national government agencies are promptly responding to the orders.

“This shows that with a concentrated push, our government agencies are able and are willing to fast-track the construction of telecommunication towers to improve interconnectivity by Christmas this year,” he said.

Nine government agencies in July signed a memorandum circular fast-tracking permit approval for the building of shared telecommunications towers by reducing the required number of permits. — Jenina P. Ibañez

PHL GDP contraction seen at 6.5% in 2020

GROSS DOMESTIC PRODUCT (GDP) is expected to contract 6.5% this year, with the Philippines struggling to contain the coronavirus, raising the risk of further lockdowns that will pose a drag on business activity, according to Maybank Kim Eng.

“The Philippines and Indonesia are struggling to contain the virus outbreak and may relapse into periodic targeted or localized lockdowns,” it said in a report.

Maybank’s 2020 forecast compares with its minus 6.7% outlook for Thailand. Other economies expected to contract are Singapore (-6%), Malaysia (-5.4%), and Indonesia (-0.5%). Vietnam’s economy is projected to grow 3.6%.

In 2021 the Philippines is expected to post a gain of 4.5%, it added.

Maybank’s outlook for the Philippines in 2020 and 2021 is more pessimistic than the government’s official projections of between minus 4.5% and minus 6.6% this year and growth of 6.5-7.5% in 2021.

“The Philippines and Indonesia are especially dependent on a vaccine to save their economies, as lockdowns and social distancing rules have not been successful in containing the spread. Lockdown fatigue is setting in and governments are turning their focus to vaccine strategies,” it said.

It has been six months since the country was initially locked down. Although restrictions have been tempered in recent months, business activity has been reviving slowly.

GDP contracted by a record 16.5% in the three months to June, reflecting the months when the lockdown was strictest.

“The worst is however probably over as the economies slowly reopen after the severe lockdowns during the second quarter. But the growth trajectory will likely be more U-shaped than V, with GDP of most ASEAN economies returning to pre-pandemic levels only in early 2022,” Maybank said.

It added the crisis has been a “regressive shock” that has disproportionately hit lower-wage workers, specifically in the Philippines where unemployment was greater for elementary and high school graduates compared to university graduates.

“Income inequality will likely worsen as a result, as higher-wage workers are less impacted. The worst hit sectors — including hospitality, retail, F&B, recreation, airlines, construction — employ a higher proportion of lower-wage workers,” it said.

Philippine unemployment was 10% in July, tapering off from the high of 17.7% in April but still nearly double the year-earlier level of 5.4%, according to the Philippine Statistics Authority. The July rate is equivalent to around 4.571 million jobless. — Luz Wendy T. Noble

PHL detects 72 new ASF outbreaks; more than 33,000 hogs culled

THE PHILIPPINES reported 72 new outbreaks of the African Swine Fever (ASF), according to the Bureau of Animal Industry (BAI).

In its 11th follow-up report to the World Organization for Animal Health, BAI Director Ronnie D. Domingo said that an additional 33,406 hogs were culled due to the new outbreaks.

Libmanan, Camarines Sur accounted for 3,024 of the culled pigs, followed by Sariaya, Quezon with 1,878 animals, and Liliw, Laguna with 1,869.

At the bottom of the table were Echague, Isabela with one culled pig; Aurora, Isabela had two, and Calauan, Laguna had three.

Other areas where ASF was detected include San Antonio, Llanera, Carranglan, San Jose City, Talavera, Science City of Muñoz, General Mamerto Natividad, Rizal, Guimba, Peñaranda, General Tinio, Laur, Talugtug, and Lupao, Nueva Ecija; Asipulo, Ifugao; Bani, Alaminos City, Bugallon, Natividad, Bolinao, Dasol, and Infanta, Pangasinan; Pangil, Nagcarlan, Calamba, and Sta. Cruz, Laguna; and Binangonan, Baras, and Cardona, Rizal; Malvar, Sto. Tomas, Talisay, Laurel, and San Juan, Batangas; Tabuk City in Kalinga; Alfonso and Magallanes, Cavite; Tagudin, Ilocos Sur; Pugo, Agoo, Aringay, and Sudipen, La Union; Sta. Cruz and Masinloc, Zambales; San Mateo, Ramon, Luna, Quezon, Roxas, and Mallig, Isabela; Candelaria, Lopez, Tiaong, Pitogo, Catanauan, Gumaca, Macalelon, General Luna, and San Francisco, Quezon; and Naga City, Pamplona, Milaor, Nabua, Minalabac, Pili, and Bulas, Camarines Sur.

In a virtual briefing Tuesday, Department of Agriculture spokesperson Noel O. Reyes said the current ASF animal death tally was 316,637 hogs since the outbreak started in August 2019.

According to BAI’s report, the outbreaks were caused mainly by the illegal movement of animals and swill feeding.

ASF is a severe and highly contagious hemorrhagic viral disease in pigs that poses no health risks to humans. — Revin Mikhael D. Ochave

GSP+ withdrawal could worsen unemployment — MAP

THE removal of tariff perks enjoyed by Philippine exports to Europe will hurt various industries and worsen unemployment, the Management Association of the Philippines (MAP) said.

The European Parliament last week called on the European Commission to start the procedure for suspending the Generalized Scheme of Preferences Plus (GSP+) privilege enjoyed by the Philippines after the government failed to improve the country’s human rights situation.

“We fervently hope that the removal of the GSP preferences by the EU countries will not go ahead. It will make our products less competitive and will seriously impact several industries,” MAP President Francisco E. Lim said in a statement Tuesday.

“It will increase the number of the unemployed among our countrymen at a time when they most need jobs.”

He asked that the Philippine government and the European Commission discuss the issue “in a mutually satisfactory manner,” urging the government to take the matter seriously.

Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said last week that the Philippines does not have much to lose, as it does not fully utilize GSP+.

GSP+ is an incentive agreement in which 6,274 Philippine products enjoy zero-tariff entry to the European Union provided the country adheres to 27 core international conventions that include human and labor rights.

European legislators in the resolution cited Philippine human rights issues, including President Rodrigo R. Duterte’s war on drugs.

Goods exported under GSP+ preferences usually account for around a quarter of total exports to the EU each year, significantly lower than the leading beneficiary countries such as Bangladesh and Cambodia, whose utilization rates top 90%.

Palace Spokesman Herminio L. Roque has said that the European Parliament does not have the authority to revoke the trade perks.

“Ang European Commission lang ang may kapangyarihan na mag-withdraw ng GSP+ preference (Only the EC has the power to withdraw GSP+),” he said in a briefing Tuesday, adding that no individual government has expressed support for revoking the trade preferences.

Central Bank Governor Benjamin E. Diokno in an ANC interview on Monday said that he believes trade is “welfare enhancing” and benefits both parties.

“The EU is a 27 member (organization) and so I don’t know whether that will be imminent. We have good relations with Germany and France. And so I think it will take time,” he said. — Jenina P. Ibañez

Gov’t seeking to automate port ticketing

THE Philippine Ports Authority (PPA) and the Department of Transportation (DoTr) said Tuesday that they are planning to implement an automated ticketing system at all ports by 2021, to cut out fixers and scalpers while improving maritime security.

An auction for modern ticketing machines has been scheduled “before the end of the year,” the PPA and the DoTr said in a joint statement.

“The Unified Electronic Ticketing System which is equipped with an electronic reservation and ticketing assistant, aims to reduce human-to-human transactions to comply with the ‘new normal’ protocols to stop the spread of the coronavirus disease (COVID-19),” they added.

They said the new ticketing system will also support an integrated vessel booking and payment system for roll-on, roll-off ports.

“Using desktop computers or mobile phones, passengers using the system can reserve, book, and pay for tickets online,” the two agencies said.

Passengers unable to access the online system can also buy tickets using vending machines.

The online booking system will be managed by the PPA.

PPA Administrative Order (AO) No. 12 series of 2019 lists the objectives of the centralized e-ticketing system as “to institute port process improvement for maritime safety and security since this will provide a useful instrument for preventing ship overloading and overcrowding.”

The AO also positions the project as a measure to comply with ease of doing business rules while generating administrative cost savings for shipping lines.

The new system will also provide automatic preparation of passenger manifests for submission to government agencies.

The PPA will provide the system software, office space and hardware to implement the online booking system at the ports under its jurisdiction.

Shipping lines will be responsible for the office space and equipment not provided by the PPA.

The PPA is responsible for the collection of the integrated shipping fare, passenger terminal building fee, and the added administrative fee. — Arjay L. Balinbin

Pag-IBIG Fund to miss 2020 housing loan target

THE Home Development Mutual Fund, better known by its Pag-IBIG Fund branding, said it does not expect to achieve its loan target this year due to the coronavirus disease 2019 (COVID-19) pandemic.

In a Laging Handa briefing, Pag-IBIG CEO Acmad Rizaldy P. Moti said the P100-billion housing loan target is at risk due to disruptions in lending activity due to the outbreak.

“Ang Pag-IBIG Fund, unfortunately dahil sa pandemya ay hindi natin maabot ang gusto sana nating pautang sa pabahay ay umabot ng P100 billion this year. Pero dahil sa pandemya, mukhang aabot ito sa P60-70 billion (Pag-IBIG Fund, unfortunately because of the pandemic, will not hit its desired level of housing loans of up to P100 billion this year but because of this pandemic, we will hit P60 billion to P70 billion),” he said.

Mr. Moti said the P100-billion target represents a pledge made to President Rodrigo R. Duterte to issue that much in housing loans every year until 2022.

Mr. Moti said the pandemic may also delay a planned increase in member contribution rates. The state-owned housing fund announced last year that it will increase member contribution rates by P50 starting June 2021. Mr. Moti said after consultations with labor and employers’ groups, the delay will push back the collection of the increase.

“January 2022 magiging effective ‘yung pagtaas na yan (This hike will be effective in January 2022),” he said.

“In terms of financial projections and financial strength, kayang-kaya naman po ng Pag-IBIG Fund na i-delay po ito nang up to 12 months (Pag-IBIG Fund can afford a delay of up to 12 months),” he added.

The Pag-IBIG Fund’s net assets grew at the end of August to P640 billion, against P603 billion at the end of 2019. — Gillian M. Cortez

NGCP reports delays in transmission projects due to quarantine

CRITICAL TRANSMISSION line projects will be further delayed due to the variable enforcement of quarantine and coronavirus disease testing protocols by local government units, the National Grid Corp. of the Philippines (NGCP) said.

“NGCP is eager to finish its critical projects as close to the original timelines as possible,” it said in a statement on Tuesday.

Among priority projects that were stalled include the Mindanao-Visayas Interconnection Project (MVIP), the Western Luzon Backbone project, and the San Jose-Quezon 230 kilo-volt Line 3 project, which are all certified as energy projects of national significance by the Department of Energy (DoE).

“Project schedules are continually reassessed as varying degrees of community quarantine remain in effect,” it said.

The company said it takes between two and four months under quarantine rules to complete a project that typically takes a month.

“This means that if a project was set to be completed within four months… the new estimated time of completion (will be) eight to 16 months,” it said.

“These targets continue to move as we remain bound by health and safety considerations,” it added.

In August, the DoE said it ordered the company to fast-track the implementation of the P52-billion MVIP. It was initially expected to be completed this year but it is now projected to be complete by 2021.

NGCP said it needs to comply with rules requiring mandatory swab testing of project personnel, securing coronavirus disease 2019 (COVID-19) test results from contractors, and facilitate permits to bring its workers to areas with high levels of infection.

The company is asking the government for assistance to allow the entry of its foreign consultants and to rationalize lockdown protocols to minimize project delays. — Adam J. Ang

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