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Walking a tightrope

I am pleased to share with readers the Executive Summary of the latest quarterly report Christine Tang and I wrote for GlobalSource Partners, a New York-based network of independent analysts, mostly former finance and central bank officials (globalsourcepartners.com).

“When we flagged a looming recession back in April and projected a deep 7% GDP contraction in May, the most pessimistic at the time, we had expected that after one of the most stringent lockdowns in the world, the economy would slowly transition by year-end into a “new normal.” Although the government, using blunt rules to regulate activity, is trying to walk the tightrope of keeping infections down and economic activity up, the 3Q restart has been restrained by rising infections and continuing critical constraints in public transport, with fiscal conservatism and weak public health institutions and leadership unable to lift confidence. We think that not only is a larger 8.5% GDP contraction in 2020 more likely now, but also that the government’s projected V-shaped recovery in 2021 is unachievable. Reviving animal spirits will be very difficult considering, a.) the simultaneous shock to demand and supply that has led to massive unemployment, b.) the new ways of thinking and doing things in response to the pandemic that have been disruptive to businesses, and, c.) the increased regulatory and political uncertainty as the administration tries to come to grips with the crisis and its fallout on people’s lives.”

The rest of the report discussed: a.) monetary authorities’ success in instilling confidence in the financial system, although as far as encouraging more lending, they seem to be pushing on a string; b.) fiscal authorities’ constrained policy space due to the sharp fall in tax revenues; and c.) the hefty increase in external account balances resulting from the pandemic. Our forecast summary is in Table 1.


And excerpts from the political section:

“Some analysts, trying to put the pieces together, surmise that: a.) the President is not well — not incapacitated but certainly weaker than he says; b.) his best laid plans for a successful 2022 exit have gone awry due to COVID-19 which he seems to think is a scourge that is out of his hands; and, c.) his staunchest supporters, unwilling to risk a constitutionally mandated succession in the event something happens to the President, staged the Rev Gov (revolutionary government) movement as a trial balloon to test the response of state security officials whose support is critical for the movement to succeed. Others simply dismiss all the talk as noise and especially in the case of Rev Gov, merely a ploy to distract public attention from government’s missteps in handling the pandemic.

“Yesterday, the President emerged from his quarantine looking in the pink of health. That should momentarily dispel talks of his poor physical condition. The same cannot be said of the country which yesterday saw COVID-19 cases exceed 220,000 from over 93,000 a month ago. Although there has been some lengthening of the case doubling time after two weeks of tighter quarantine restrictions in August, moving in and out of strict shelter-at-home policies is a high-cost, unsustainable approach to managing the pandemic.

“In its fight against COVID-19, the Philippines is handicapped by weak public health institutions and what appears to be a leadership vacuum. In the same way that the President has been able to delegate management of the economy to his able economic managers headed by the finance secretary, perhaps the President ought now to find an equally competent alter ego to manage the health crisis.”


MANDATED DEBT MORATORIUM, A SLIPPERY SLOPE
Bayanihan I and it’s IRR directed all lenders to grant a 30-day grace period or extension for the payment of all loans, including credit card payments and pawnshop loans, falling due within the enhanced community quarantine (ECQ, the strictest quarantine level) period, without incurring interest or any additional charges and fees on borrowers.

The House version of the Bayanihan II would extend this by a full year. This prompted Central Bank Governor Ben Diokno to observe that “while we recognize the noble intentions behind the 365 day moratorium on loan payments, the said policy may result in unintended consequences that will severely affect the banking industry, the financial system, and the economy.” He added that this could pose a funding crunch on banks and could put “significant strain” on the liquidity and capital positions of lending institutions, which rely on cash flows to keep lending activities going. He feared this could even trigger a bank run and undermine confidence in the banking system. With limited cash, banks may also be forced to become more stingy in granting credit to new and repeat borrowers, including struggling MSMEs which are considered risky clients. Thankfully, after lengthy discussions in the bicameral committee, the final version whittled down the moratorium  to a more manageable 60 days.

My concern is that once these 60 days pass, and considering a possible slower recovery, there will be much pressure for a further extension. For all the good reasons cited by the Governor, this would be the wrong thing to do, and will end up hurting not just the borrowers themselves, but also depositors, the entire financial system and the economy. The most vulnerable poorest end up being the most severely impacted in such an event.

 

Romeo L. Bernardo was finance undersecretary during the Cory Aquino and Fidel Ramos administrations.

romeo.lopez.bernardo@gmail.com

The economic impact of the pandemic, in numbers

All around us, businesses are closing, millions are losing their jobs, and for the first time in decades, swaths of our population are entering poverty, not escaping it. The Wuhan virus has caused havoc to our economy and around the world. But how bad is the situation exactly? Through numbers, this piece describes the severity of the situation here and abroad.

Let’s look at the global situation first. Out of 195 countries, 170 have reported declines in their gross domestic product (GDP). The number of countries affected by the pandemic is significantly more than those affected by the Spanish Flu and World Wars 1 and 2. Its scope and scale is unmatched with an estimated loss of US$7.2 trillion in global output so far. In fact, 90 countries have already approached the International Monetary Fund for precautionary and/or emergency loans.

The impact of the Wuhan virus is two times worse, in depth and scope, than the Global Financial Crisis of 1997 and the Asian Financial Crisis of 2008. In the second quarter of 2020 alone, the world’s leading economies declined by unprecedented rates. Economic contraction was at 21.7% for the United Kingdom; 19% for France; 12.4% for Italy; 11.5% for Canada; 10.1% for Germany; 9.5% for the United States, and 7.8% for Japan.

Within ASEAN 6, Malaysia’s economy declined by 17.1%; Singapore by 13.2%; Thailand by 12.2%; and Indonesia by 5.3%. Only Vietnam bucked the trend by growing at .4%. Lamentably, the Philippines reported the second most severe decline among its peers with a 16.5% contraction.

Which sectors of our economy were affected the most? On the supply side, industrial output plunged by 11.9% while services fell by 15.8%. Agriculture grew by a token rate of 1.6%. On the demand side, household consumption sank by 15.5% while capital formation spiraled down by a massive 53.5%. Government consumption increased by 22.1% due to additional spending from Bayanihan I.

Our leaders clearly underestimated the effects of its militaristic quarantine. I was told by a cabinet member, no less, that even our economic managers were shocked by the 16.5% economic contraction in the second quarter. They expected a drop in the vicinity of 10%. This only means that they never had a firm grasp of the damage they were causing when they imposed the ECQ (enhanced community quarantine, the strictest level of quarantine).

The Asian Development Bank recently published a study that quantified the level of lockdown stringency of countries around the world. Within ASEAN, the stringency quotient of the Philippines was the highest at 83.33 points. Malaysia was a far second at 59.93, Thailand was at 59.26, Indonesia was at 54.17, Singapore was at 53.7, and Vietnam was at 51.85. These scores exemplifies how severe the lockdown measures of the IATF (Inter-Agency Task Force on Emerging Infectious Diseases) were. It was overkill.

What stings bitterly is that despite the government’s militaristic quarantine that destroyed many parts of the economy, the IATF failed to curb infection rates.

Which industries were the hardest hit? According to the National Economic and Development Authority (NEDA) statistics, the aviation and air transport industry were the most affected in that revenues plunged by a 93.8%. This was followed by sea and water transport at 72.8%; hotels and accommodation services at 73.4%; land transport at 65.6%; restaurants and food service at 64.9%; sports, entertainment and recreation at 63.2%; construction at 33.5%; and real estate by 20.1%.

As for unemployment rates, the level of joblessness varies depending on who you talk to. The government, through the national statistics office, claims that unemployment stood at 17.5% as of last April. The Department of Labor and Employment (DoLE) said that they expect 10 million adult Filipinos to be jobless this year, representing 16.5% of the workforce. However, a recent survey by pollster the Social Weather Station revealed that 45.5% of the population are presently without jobs. Last December, the number of jobless Filipinos stood at only 7.9 million. This means that 19.4 million have lost their jobs since the onset of the pandemic.

The pandemic has caused a bloodbath among micro-, small- and medium-sized enterprises (MSMEs). While there are no official numbers as to how many businesses have fallen into insolvency, a mathematical estimate suggests that 72% of all MSMEs have either closed permanently or significantly downsized. Between 250,000 to 300,000 MSMEs have already gone belly-up. This explains the run-away unemployment rate. OFW remittances contribute some $33.5 billion to the economy annually, representing about 9% of GDP. It comprises 20% of all household income and is what fuels our consumer-lead economy. About 12% of all Filipino households depend on remittances for their existence. OFW remittances is one of the four major dollar earners of the country (the others are foreign direct investments, IT BPO’s and the tourism industry). As of Aug. 16, 604,403 OFWs have been repatriated. DoLE expects a 30% to 40% drop in remittances in the next few years.

As far the tourism industry goes, in 2019, tourism accounted for 12.7% of gross domestic product or roughly $45 billion worth of goods and services. Of this amount, 10.8% or $38.5 billion was attributed to domestic tourism. There were 120 million domestic travelers in 2019, compared to 8.2 million foreign visitors.

The tourism industry is the source of 11 million jobs, a large chunk of our workforce. From posting double digit growth in the past years, visitor arrivals plunged by 73% from January to July. Revenues derived from tourism dropped proportionately at 71%.

Economists estimate that it would take a stimulus package of no less than 15% of GDP to rebuild the economy.

So far, the government has only committed to a stimulus package of $23.87 billion, or 6.7% of GDP, through Bayanihan I and II and the stimulus measures of the central bank.

Our stimulus package is too small to make a significant impact. The absence of a decent stimulus package will prolong the hunger and suffering of our people and retard our recovery. In contrast, the Singapore’s stimulus package is at 26% of GDP, it is 22% for Malaysia, 18% for Indonesia, 16% for Thailand, and 10% for Vietnam.

Different institutions have different growth forecasts for the Philippines for 2020. Of course, the Philippine government is the most optimistic. It forecast a GDP contraction of only 5.5% this year. Financial institutions are more pragmatic. The Bank of the Philippine Islands sees the contraction to go as deep as 8% while HSBC puts it at 9.6%.

For next year, the Philippine government projects a growth rate of 6.5% to 7.5% while HSBC sees growth at 7%.

Considering low base effect, these numbers suggest a U-shaped recovery.

Our recovery prospects are not written in stone. It can still improve if congress passes the P1.3-trillion ARISE bill or the P1.5-trillion CURES bill. For as long as the stimulus funds are spent where they were intended and not diverted by congress to their pork barrel fund, the speed of our recovery can be hastened

 

Andrew J. Masigan is an economist

Trust in COVID-19 vaccines could turn on a knife edge

By Lionel Laurent

FINDING A VACCINE against COVID-19 (coronavirus disease 2019) that works and can be distributed widely enough to help stop the pandemic is a global priority. Given the urgency, governments are doing all they can to fund research and incentivize firms to ramp up trials — pre-ordering doses, lowering regulatory barriers to market and granting manufacturers immunity from costly future injury-related lawsuits.

But when does the scramble for supply start to look like corner-cutting?

Even in a pandemic as deadly as this one, public trust in a vaccine is vulnerable. A July-August Ipsos worldwide poll for the World Economic Forum found that while three in four adults were interested in getting a COVID-19 vaccine if it was available, only 37% had a “strong” interest in doing so. That’s a far cry from the estimated herd immunity threshold of 55% to 82%. The top two reasons cited for not wanting to take a COVID-19 vaccine are a fear of side effects and doubts it will actually work — not extreme “anti-vaxx” sentiment.

While an effective vaccine would be an unquestionable public good, you can see how fears of a rush job might take hold. Vladimir Putin’s shock approval last month of a vaccine before large-scale patient trials had been completed is a gamble that could actually set back Russia’s response to COVID-19, as my colleague Max Nisen has argued. In the US, Donald Trump wants a vaccine rolled out before Election Day, sparking worries that an eventual green light will be seen as a political decision rather than one based on comprehensive data.

On top of that comes the practice of offering legal immunity to makers of vaccines and emergency treatments. While helpful in keeping companies from getting bogged down in court battles, it isn’t exactly conducive to building public trust.

For example, the US’ existing “PREP” pandemic legislation shields firms from almost all injury-related lawsuits unless the cause is deemed willful misconduct (a high bar). That’s an “extraordinarily broad” view, explains Wendy Parmet, professor of law at Northeastern University. While financial compensation is available, it is covered entirely by the taxpayer, capped at a lifetime maximum of $311,810 regardless of the injury and decided by a special panel with no opportunity for judicial review. It has served to pour fuel on anti-vaxxers’ outrage, rather than silence them.

No wonder some patient advocates have been spooked by lobbying pressure in Europe — where the burden of liability is seen as less favorable for drugmakers — to adopt a system closer to the US one, as reported by the Financial Times. While the European Commission insists it won’t compromise on safety, or change liability rules, it has suggested governments could take on “certain” legal claims.

This has led to public anger in the past. During the 2009 H1N1 pandemic, many European governments took on liability risk in exchange for fast-tracked vaccines, some of which ended up being recalled over links to narcolepsy. A withering Council of Europe report at the time warned such deals privatized vaccine profits and socialized the risk of injuries, calling for more balance in future.

The race for a COVID-19 vaccine could therefore do with a few speed bumps in the name of trust. The need for large-scale patient trials hasn’t gone away, and more data and disclosure on the road to approvals for public use might help win over an important priority group — healthcare workers. They aren’t immune to vaccine skepticism: In France, the birthplace of Louis Pasteur, a 2014 survey found one-quarter of doctors thought some recommended vaccines were useless, and one-fifth thought children were being given too many shots. Given they have the ear of their patients, this is an issue.

It should also be possible to preserve an effective supply of vaccine doses without tipping the scales of liability completely away from manufacturers.

One idea floated by a British Institute of International & Comparative Law research project is for a new COVID-19 compensation fund designed to deal both sympathetically and efficiently with injury claims without having to go through the courts. Instead of being funded entirely by the taxpayer, it could be part-financed by the private sector, thereby ensuring pharma firms have some skin in the game. This won’t cure vaccine hesitancy overnight, but it might allay some fears.

There are limits to engaging with vaccine critics, of course, and no quarter should be given to hardened anti-vaxxers — vaccination has a 200-year history and played a critical role in eradicating the likes of smallpox and polio. But there’s still time to extend a hand to the hesitant.

BLOOMBERG OPINION

Manila aims to flatten curve this month as infections top 237,000

THE PHILIPPINES seeks to flatten its coronavirus infection curve by the end of September as local governments use targeted lockdowns, according to the chief of the national task force against the pandemic.

Local government officials are critical to the goal because they are the ones who enforce anti-coronavirus measures, Defense Secretary Delfin Lorenzana, who heads the task force, told an online news briefing on Sunday.

Researchers from the University of the Philippines (UP) earlier said the country could flatten the curve by September as the virus’s reproduction rate continues to decline.

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.

Countries worldwide including the Philippines have imposed lockdowns and asked people to observe social distancing to slow the virus spread.

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

“Our goal this month is to flatten the curve,” Mr. Lorenzana said, adding that once this happens, Metro Manila could go back to a modified general community quarantine.”

“Village officials are our frontliners who enforce quarantine protocols including the wearing of face masks, social distancing and sanitation,” he said in Filipino.

The Department of Health (DoH) reported  2,839 coronavirus infections on Sunday, bringing the total to 237,365.

The death toll rose to 3,875 after 85 more patients died, while recoveries increased by 23,074 to184,687, it said in a bulletin.

There were 48,803 active cases, 88.6% of which were mild, 8% did not show symptoms, 1.4% were severe and 2% were critical.

Metro Manila had the highest the number of new infections with 1,170, followed by Negros Occidental with 195, Laguna with 190, Cavite with 182 and Rizal with 154, the agency said.

Of the new deaths, 41 came from Metro Manila, 15 from Central Visayas, nine from the Calabarzon region, four each from Eastern Visayas and Northern Mindanao, and two each from Central Luzon and the Bicol region, DoH said.

One death was reported each in Cagayan Valley, Western Visayas, Zamboanga Peninsula, Soccsksargen, Mimaropa, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), Caraga region, and a repatriate.

More than 2.6 million individuals have been tested for the virus, the agency said.

UP researchers earlier projected more than half-a-million coronavirus cases by year-end.

They said cases could hit 402,821 to  767,611, or an average of 585,216 cases by Dec. 31 as lockdowns are eased.

The coronavirus has sickened more than 27 million and killed about 884,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

About 19.2 million have recovered from the disease, it added. — Vann Marlo M. Villegas

DFA says more than 42,500 OFWs came home last month

MORE than 42,500 migrant Filipino workers came home last month amid a coronavirus pandemic that has sickened 27.1 million and killed about 884,000 people worldwide, according to the Department of Foreign Affairs (DFA).

Of the total, 32,389 Filipinos came from the Middle East, 4,423 from the Asia-Pacific region, 4,109 from the Americas, 1,571 from Europe and 91 from Africa, it said in a statement on Sunday.

Nine flights were chartered in August to bring home migrants from Malaysia, Qatar, United Arab Emirates, Saudi Arabia and Lebanon.

The agency also helped overseas Filipino workers in Uzbekistan, where there is no embassy or consulate office.

“As the month of September begins, the DFA stands ready to bring home our fellow Filipinos from anywhere in the world,” it said.

It brought home this month 277 migrant workers from Oman, 351 from Amsterdam and 163 others from New Zealand, it said.

Last week, about 360 Filipinos from Beirut arrived home through a DFA-chartered flight. It was the second batch of repatriates from there since an explosion rocked the Lebanese capital on Aug. 4.

The first batch arrived on Aug. 17, while the third batch will arrive on Sept. 24, DFA said. The agency has brought home 164,368 overseas Filipinos as of Sept. 5, it said.

DFA said more than 10,100 migrant Filipinos have been infected with the coronavirus, 3,070 of whom were being treated, 6,280 have recovered and 758 have died. — Charmaine A. Tadalan

First-half Immigration collections drop amid coronavirus pandemic

BUREAU of Immigration (BI) collections fell by 39% in the first half from a year earlier due to travel restrictions amid a global coronavirus pandemic.

Collections in the six months through June reached P3.14 billion, Immigration Commissioner Jaime H. Morente said in a statement at the weekend.

“We still consider this as a significant accomplishment considering that even amidst the pandemic we were just 50% short of attaining our target of P6.18 billion for 2020,” he said.

Foreign and local traveler arrivals dropped by 95% during the period, he added.

Mr. Morente said the bureau would probably still meet its income target as lockdowns are relaxed.

“We are seeing a resurgence in the number of people transacting in our offices and as the economy slowly reopens and travel restrictions are eased, we anticipate a steady rise in our revenues in the next few months,” he said.

Judith F. Ferrara, Financial Management Division chief, said the bureau was poised to post record collections this year before the pandemic.

Collections in the first two months reached almost P1.8 billion but these dropped to P481 million in March when Luzon was locked down to contain the pandemic.

President Rodrigo R. Duterte kept Metro Manila under a general community quarantine until the end of the month, along with the provinces of Bulacan and Batangas and the cities of Tacloban and Bacolod.

Iligan City is still under a modified enhanced community quarantine, while the rest of the country will be under a more relaxed modified general quarantine. — Vann Marlo M. Villegas

Regional Updates (09/06/20)

Still no qualifiers for Davao City bus system

TWO OF the biggest Mindanao-based bus companies, Bachelor Express, Inc., and Davao Metro Shuttle Corporation, again failed to qualify in the second round of franchise application for the Davao City High Priority Bus System (HPBS). The Davao regional office of the Land Transportation Franchising and Regulatory Board (LTFRB) said the second selection process concluded August 20 without a winning bidder. Bachelor and Metro Shuttle were disqualified in the first round of the selection held last July 17. “We are again disqualifying them for lacking some requirements like availability of the units,” said LTFRB Regional Director Armand B. Dioso in a phone interview last week. A third round of bidding is set Sept. 11, and Mr. Dioso said they are hoping that there would be more interested companies, including those operating outside Mindanao. The franchises cover three initial routes for the HPBS, a project that aims to replace jeepneys in the city’s major roads. The full HPBS program will deploy around 1,000 bus units in 29 routes. Meanwhile, an initial batch of jeepney drivers and operators have completed a business management training program conducted by the Department of Trade and Industry. A social and livelihood assistance project is being rolled out for those who will be affected by the HPBS. Some of them are eyed to become part of the HPBS operations. — Maya M. Padillo

Matarinao Bay is latest red tide area

THE BUREAU OF Fisheries and Aquatic Resources (BFAR) has warned consumers against eating shellfish collected from Matarinao Bay in Eastern Samar after it tested positive for red ride contamination. In its latest shellfish bulletin, BFAR said Matarinao Bay joins other red tide positive areas such as Puerto Princesa City in Palawan; the coastal waters of Dauis and Tagbilaran City in Bohol; Tambobo Bay and Siit Bay in Siaton, and Bais Bay in Negros Oriental; Cancabato Bay, Tacloban City in Leyte; Balite Bay, Mati City in Davao Oriental; and Lianga Bay and the coastal waters of Hinatuan in Surigao del Sur. BFAR said all types of shellfish and Acetes sp. or alamang harvested from these areas are not safe for human consumption. However, other types of marine species such as fish, squid, shrimp, and crab are safe to eat provided they are fresh and washed thoroughly, and internal organs such as gills and intestines are removed before cooking, BFAR said. — Revin Mikhael D. Ochave

Nationwide round-up

DoF assures PhilHealth getting support to fund universal health care

THE DEPARTMENT of Finance (DoF) and its attached agencies have been meeting with officials of Philippine Health Insurance Corp. (PhilHealth) to help the agency with its financials and ensure sufficient funding for the Universal Health Care program.

In a budget hearing Friday, Finance Secretary Carlos G. Dominguez III told the House of Representatives that it has met with the new PhilHealth chief to discuss the agency’s current cash position.

President Rodrigo R. Duterte last week appointed former National Bureau of Investigation Director Dante A. Gierran to head the agency after the resignation of Ricardo C. Morales.

State-run PhilHealth has warned it will run on a budget deficit starting this year up to 2024 as premiums slump and claims rise because of the coronavirus pandemic.

Investigations are also ongoing to hold officials liable for the agency’s lost funds due to alleged corruption.

Mr. Dominguez said the DoF  along with the National Treasury and the Insurance Commission have been closely coordinating with PhilHealth since October 2019 to ensure the implementation of the Universal Health Care program, which is estimated to require P257 billion in 2020, the initial year.

“While funding is a key component, improvements in their financial planning and control as well as actuarial systems are fundamental to the achievement of this goal. These will help plug all leakages so as to allow the funds from members’ premiums and the taxpayers to be utilized properly,” Mr. Dominguez said in a Viber message over the weekend. — Beatrice M. Laforga

Sotto anticipates task force findings on PhilHealth will align with Senate report

SENATE PRESIDENT Vicente C. Sotto III is convinced the findings of the task force led by the Department of Justice (DoJ) on anomalies in Philippine Health Insurance Corp. (PhilHealth) will be consistent with that of the Senate’s committee of the whole.

“Tingin ko lahat ng mga rekomendasyon namin na kasuhan nila ay mafa-filan nila talaga, both criminal charges at administrative cases (I think most of our recommendations with regards to the cases, both criminal and administrative, will be filed),” Mr. Sotto said over DzBB on Sunday.

The committee’s recommendations include the replacement of Health Secretary Francisco T. Duque III, who sits as PhilHealth chair, and the filing of charges against him and other high-ranking officials of the state insurer.

Mr. Sotto also said President Rodrigo R. Duterte’s trust on Mr. Duque may finally change with the conclusions of the different investigations.

“Maaaring nagtitiwala pa rin siya pero merong mga bagay na dapat mong harapin na labag sa batas, ganoon yun (He may still trust him, but there are things that violate the law that must be faced),” the senate leader said.

Justice Secretary Menardo I. Guevarra, meanwhile, said on Saturday that their hearings on PhilHealth will wind up next week and the task force will start drafting its recommendations to Mr. Duterte by Sept. 14.

Mr. Duque and PhilHealth were also the subject of another Senate inquiry last year in relation to the alleged ghost dialysis scam.

Senator Richard J. Gordon, blue ribbon committee chairman, had disclosed that his recommendations include the abolition of PhilHealth and the filing of cases against the agency’s regional vice presidents.

The committee’s report, however, has yet to be endorsed in the plenary. — Charmaine A. Tadalan

DPWH completes 56% of planned 602 COVID-19 facilities

ONE of the most recent projects completed by the DPWH team tasked to augment national and local health facilities was the 151-bed capacity healthcare facility in Carmona, Cavite. — DPWH

THE DEPARTMENT of Public Works and Highways (DPWH) has completed 340 projects for use as coronavirus facilities, representing 56% of the 602 total projects lined up nationwide. DPWH Undersecretary Emil K. Sadain, head of the team tasked to augment national and local health facilities, said the remaining projects are expected to be completed by end-October.

“There are 602 COVID-19 (coronavirus disease 2019) facilities with 23,000 bed capacity nationwide, of which 340 are already completed and 262 will be finished towards the end of September and October,” Mr. Sadain said in a statement on Sunday.

The team is primarily in charge of supporting the national and local governments in converting available spaces into makeshift hospitals or setting up a modular healthcare facility.

Among the pending projects is the conversion of the Quezon Institute along E. Rodriguez Avenue in Quezon City into the first offsite modular hospital with a 110-bed capacity for moderate and severe COVID-19 cases.

Mr. Sadain said the engineering plans and procurement have been completed and “we are just waiting for the necessary permit from the Philippine Tuberculosis Society Board that will allow DPWH to start and ramp up the construction activities.”

Reusable Chinese spacecraft lands successfully — state media

BEIJING — An experimental reusable spacecraft launched into orbit two days ago by China has successfully returned to a designated site on Sunday, marking a breakthrough that could lead to cheaper round-trips to space, the official Xinhua News Agency reported.

The mission had been kept low-key, and state media had yet to publish photographs or video footage of both the launch and landing of the spacecraft. No details were given on the techologies that had been tested.

Chinese social media has been rife with speculation over the spacecraft, which some commentators compared to the U.S. Air Force’s X-37B, an autonomous spaceplane made by Boeing that can remain in orbit for long periods of time before flying back to Earth on its own.

Three years ago, China said it would launch a spacecraft in 2020 that can fly like an aircraft and would be reusable, increasing the frequency of launches and lowering mission costs.

It is not known if the experimental spacecraft launched by China was a fixed-wing craft like the U.S. Space Shuttle. If it was similar to the X-37B, it would be about a fifth of the Space Shuttle in size.

The Chinese spacecraft was deployed into orbit on Friday by the Long March 2F, a family of rockets that have transported Shenzhou spacecraft into orbit on both crewed and uncrewed missions over the years.

A Chinese national independently travelled to space for the first time in 2003 onboard the Shenzhou. — Reuters

Nuggets even series vs Clippers

Raptors knot up series with Celtics to 2-2

JAMAL MURRAY scored 27 points and Nikola Jokic had 26 points and 18 rebounds, leading the Denver Nuggets to a 110-101 victory over the Los Angeles Clippers in Game 2 of their Western Conference semifinal on Saturday in the bubble near Orlando.

Paul Millsap and Gary Harris added 13 points each for the Nuggets, who evened the series at a game apiece. Michael Porter Jr. chipped in 11 points and seven rebounds.

Paul George had 22 points and eight rebounds and Ivica Zubac had 15 points and nine boards for Los Angeles. Kawhi Leonard had a sub-par performance with 13 points on 4-of-17 shooting, his lowest output of the playoffs. Lou Williams also scored 13, while JaMychal Green contributed 10 points and 11 boards for the Clippers.

After trailing by double digits for much of the contest, Los Angeles closed within 91-86 after a 3-pointer by George with 8:36 left. However, a basket by Jokic, consecutive 3-pointers by Harris and two foul shots by Jerami Grant increased the lead to 101-86 more than three minutes later.

A layup by Williams cut the margin to 104-96 but Harris nailed a 3-pointer with 1:37 remaining to boost the lead to 11. The Clippers pulled within eight again, but two technicals on Patrick Beverley, who was ejected, allowed the Nuggets to clinch the win with free throws.

The Nuggets roared to a 44-25 lead after one quarter behind 15 points from Jokic. They shot 70.8% from the floor and converted seven of 11 3-pointers. Jokic hit all three of his 3-point attempts.

Although Denver, which led by as much as 23 in the first half, cooled off in the second quarter, it managed to take a 72-56 advantage at the break. Jokic had 24 points in the first half as the Nuggets outshot the Clippers 56% to 47.7%.

For the game, the Nuggets made 45.1% of their shots to 40.9% for the Clippers.

RAPTORS KNOT UP SERIES
Pascal Siakam scored a series-best 23 points, Kyle Lowry added 22 and the Toronto Raptors evened their best-of-seven Eastern Conference semifinal series with a 100-93 win over the Boston Celtics on Saturday night near Orlando.

Serge Ibaka scored 18 points and Fred VanVleet by 17 as the Raptors knotted the series after falling behind 2-0. Siakam and Lowry each had double-doubles with 11 rebounds apiece.

Jayson Tatum had 24 points and Kemba Walker 15 for the Celtics, who lost their second straight after six consecutive wins to begin the playoffs.

Siakam, Lowry and VanVleet each played north of 40 minutes for Toronto, while Tatum, Walker and Marcus Smart did the same for Boston.

Shooting 28.3% from 3-point range through the first three games, the Raptors went 17-of-44 (38.6%) from deep in the win. Conversely, the Celtics only hit seven of their 35 such chances (20.0%).

A Lowry 3-pointer gave Toronto an 85-75 lead with 10:53 remaining in the fourth quarter. Boston got within five, 91-86, on a Jaylen Brown three, his first hit from deep in 10 chances.

Lowry responded with a three, and the Raptors led 94-86 with 4:44 to go. Toronto went up 98-87 on two Lowry free throws with 2:20 left and held on.

Tied at halftime, the Raptors began the third with a 14-7 run for a 63-56 lead. The Celtics were within four, 70-66, with 2:40 left before VanVleet hit a pair of threes around an Ibaka trey during a 9-2 spurt for the game’s first double-digit lead, 79-68.

The Raptors led from 6:48 of the first quarter until the Celtics equalized at 40 on a Smart three-point play with 4:13 to go in the half. Boston grabbed its first lead of the game, 46-44, on a pair of Semi Ojeleye free throws with 2:11 left. — Reuters

Inquiry on possible quarantine violations of UST team expands

By Michael Angelo S. Murillo, Senior Reporter

THE ongoing investigation on possible violations of the University of Santo Tomas (UST) of health and safety protocols, amid the coronavirus pandemic, is set to be expanded with the Department of Justice (DoJ) getting involved, a member of the government-formed panel tasked to look into the issue told reporters on Friday.

Following its online meeting, the panel, composed of the Philippine Sports Commission (PSC), Games and Amusements Board (GAB) and the Department of Health (DoH), along with the Commission on Higher Education, said it had made the decision to forward its findings on the so-called Sorsogon bubble of the UST men’s basketball team to the Justice department on Monday for further evaluation.

The UST Growling Tigers are being investigated for allegedly violating government health and safety protocols when they held training wherein it is still prohibited at this point of the pandemic, as per regulations put out.

It has been reported that the Tigers were holed up as a team in Capuy, Sorsogon, hometown of coach Aldin Ayo, beginning in June as part of their preparation for UAAP Season 83, targeted to begin early next year, and other tournaments.

Also being probed is National University after its women’s volleyball team allegedly broke protocols when it gathered to train in a sports facility in Laguna.

The investigating panel had been conducting a series of meetings in the past few weeks with the University Athletic Association of the Philippines to discuss the matter and reiterated the seriousness of the issue at hand and the need for it to be addressed accordingly.

“We are looking at possible violations [of UST] and we’ll forward our findings to the DoJ on Monday,” said GAB Chairman Baham Mitra, whose organization, along with the PSC and DoH, is tasked to help in overseeing the safe return of sports activities in the country.

The three government agencies, acting on a directive from the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID), have come up with a Joint Administrative Order which contains the implementing guidelines governing the conduct of professional and nonprofessional sports training while the country is under community quarantine brought about by the pandemic.

To date, only professional leagues like the Philippine Basketball Association, Philippines Football League and Chooks-to-Go 3×3 Pilipinas are allowed to do training albeit under strict health and safety monitoring.

It is, however, being studied to allow collegiate training in light of the ongoing issue, guided by the steps done by the local professional leagues.

Mr. Mitra said they want to see the matter thoroughly investigated and decided upon notwithstanding the internal investigation done by UST and recent developments, particularly the resignation of Mr. Ayo and the school’s athletic director Fr. Jannel Abogado.

“The DoJ will continue the investigation,” said Mr. Mitra.

National team members set to get discount IDs  and booklets

THE long-awaited issuance of discount identification cards and booklets for national team members is being targeted to be completed by the Philippine Sports Commission (PSC) within the month.

In compliance with Revenue Regulations (R.R) No. 13-2020, which spur further implementation of Republic Act (R.A.) 10699, or the “National Athletes and Coaches Benefits and Incentives Act,” the PSC has been busy releasing the IDs and booklets despite the challenges presented by lockdown conditions brought about by the coronavirus pandemic.

“We are doing our best to deliver everything within this month even though there are lockdowns due to the pandemic and the limited work force. We are doing our best to comply with it … [by the] third week of September we should have sent the last batch,” said Manuel Bitog, Chief of Assistance and Coordination Division and head of the PSC frontline personnel, in a statement.

“Most of the athletes wrote as address the RMSC (Rizal Memorial Sports Complex) dormitory and the PhilSports dormitory. That’s why we had to get their updated addresses first,” added Mr. Bitog, noting that the PSC decided to send the athletes home as a precautionary measure against the spread of the coronavirus.

Under R.R. 13-2020, signed by Finance Secretary Carlos Dominguez III early this year on the recommendation of Internal Revenue Commissioner Caesar Dulay, qualified beneficiaries will be entitled to a 20% discount on goods and services, similar to those given to senior citizens and persons with disabilities.

Qualified beneficiaries are those who compete in international sports competitions which do not grant prize money and must be duly recognized and accredited by the Philippine Sports Commission (PSC), the Philippine Olympic Committee (POC), the Philippine Paralympic Committee and the National Sports Associations.

The law provides discounts to national team members in the purchase of goods and services like food, medicine and sports equipment. It also grants deduction on transportation fares, room accommodations, restaurants, recreation centers, cinemas, and other amusement areas.

In turn, “business establishments granting sales discounts to national athletes and coaches on their sale of goods and/or services shall be entitled to deduct the said sales discount from their gross income,” the regulation reads.

Benefits and privileges may be availed of by those who are qualified upon presentation of their Philippine National Sports Team Identification Card and Booklet to privately owned establishments.

“We have always been supportive of our athletes and coaches and we hope this privilege helps in easing their burdens caused by COVID-19,” said PSC Chairman William Ramirez of the discount privilege given to national team members.

For bemedalled triathlete and Philippine Olympic Committee Athletes’ Commission officer Nikko Huelgas, the release of the regulation was a step in the right direction.

“I’m very happy to see the regulation being acknowledged more and more by people from the top where they can greatly influence the [business] establishments in acknowledging this (privilege) more,” said the two-time Southeast Asian Games gold medallist in an earlier interview. — Michael Angelo S. Murillo

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