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NEDA Board approves tycoons’ NAIA rehab proposal

By Beatrice M. Laforga

THE National Economic Development Authority (NEDA) Board on Friday approved an unsolicited proposal from the country’s top tycoons to rehabilitate the Ninoy Aquino International Airport (NAIA), as well as five other infrastructure projects and the revised list of infrastructure flagship projects.

Finance Secretary Carlos G. Dominguez III said on Friday that the P102-billion proposal to rehabilitate the NAIA has secured its final approval from the NEDA Board, which President Rodrigo R. Duterte chairs.

With the approval, the NAIA rehabilitation will be subjected to a Swiss challenge.

Under the Swiss challenge, companies are invited to submit counterproposals to the project, which the original proponent may then match.

A “super consortium” composed of seven conglomerates, had offered to rehabilitate and expand NAIA over 15-year period at a project cost of P102 billion. The conglomerates involved are Aboitiz InfraCapital, Inc.; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc.; and Metro Pacific Investments Corp., had

The NAIA rehabilitation is expected to increase its capacity to handle passengers to 47 million a year in the first two years and further expand this to 65 million after four years.

The international airport has been operating beyond its 30.5-million passenger capacity with 45.3 million passengers last year, 42 million in 2017 and 39.5 million in 2016.

FLAGSHIP PROJECTS
In a phone message on Friday, Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Vivencio B. Dizon said that the NEDA Board approval of the revised list of infrastructure flagship projects showed how serious the government is in implementing the Build, Build, Build program.

Among the approved projects that are included in the list, Mr. Dizon said, are the proposals for NAIA rehabilitation, the Bohol-Panglao International Airport, Samal Island-Davao City Connector (SIDC) project and the Davao public transport modernization project.

“All these are in the list of 100 flagship projects so this shows how serious the government is in swiftly moving towards the realization of the Build, Build, Build program and allow our people — to use the words of the President — to use use use them in order to live a more comfortable life,” said Mr. Dizon, who is also the presidential adviser for flagship infrastructure projects.

Midway through the administration’s term, the government reviewed and decided to revise its list of infrastructure flagship program to 100 from the previous 75 projects, scrapping those deemed no longer feasible while including “small but game-changing ones”.

OTHER PROJECTS
In a statement released Friday, the NEDA Board has approved a total of seven new projects on Friday with an estimated total project cost of P187.34 billion.

Socioeconomic Planning Secretary Ernesto M. Pernia was quoted in the statement, saying that five out of seven projects will be implemented outside the National Capital Region.

“This shows that the administration is committed to develop growth centers in the regions and maximize the economic benefits of connectivity of communities,” Mr. Pernia said.

Among the projects that secured NEDA Board’s nod are the unsolicited proposal for the new Bohol-Panglao International Airport and the P18.66-billion Davao public transport modernization project of the Department of Transportation (DoTr).

The Davao public transport modernization project will be financed through official development assistance (ODA) loans and is targetted for construction next year through 2023. The project “involves the delivery of a modern, high priority bus system (HPBS) for Davao City,” the statement read.

Three projects of the Department of Public Works and Highways (DPWH) were also approved, namely the P14.97 billion Pasacao-Balatan Coastal Tourism Highway, the P23.04-billion SIDC project and the P9.23 billion Camarines Sur High-Speed Highway.

The Pasacao-Balatan Coastal Tourism Highway is earmarked for implementation next year until 2023 and is expected to be opened by 2024.

The project plans to construct a “four-lane coastal tourism highway along the west coast of Camarines Sur, with a total length of 40.69 kilometers,” as well as the construction of 13 bridges.

The SIDC project aims to construct a permanent road linking Davao City and the Island Garden City of Samal by 2025.

“The Project involves the construction of a toll-free four-lane [two-lane each direction] bridge with an approximate length of 2.80 kilometers, a width of 24.2 meters, and a vertical clearance of 45 meters that can serve around 25,000 vehicles a day,” it said.

Meanwhile, the Camarines Sur High-Speed Highway, a 15.21-kilometer four-lane highway, will provide an alternative route from Legazpi to Caramoan to Manila, and vice versa.

Lastly, Department of Health’s P15.53 billion Development Objective Assistance agreement for improved health for undeserved Filipinos was also approved and is expected to be completed by Sept. 30, 2024.

“The program will respond to the issues on logistics and pharmaceutical management, shortages of qualified health professionals in underserved areas, and inadequate public sector capacity in policy development, financing and private sector engagement. The following are the planned activities under the program: tuberculosis; family planning; and health systems strengthening,” NEDA said.

Also during the same meeting, the NEDA Board said that Investment Coordination Committe-Cabinet Committee approved to increase the cost and change the scope of Mindanao Railway Project: Tagum-Davao-Digos Segment to PhP81.69 billion.

“The NEDA Board also noted the earlier confirmation ad referendum of 20 projects from August 22 to October 9 this year. These include projects from DPWH (9), DoTr (3), Department of Finance (3), Philippine Competition Commission (1), Department of Agriculture (1), Landbank of the Philippines (1), National Irrigation Administration (1), and Metropolitan Waterworks and Sewerage System (1),” the statement read further.

Fruitas rises in stock market debut

By Denise A. Valdez, Reporter

SHARES in Fruitas Holdings, Inc. soared as much as 46% in their market debut on Friday, but closed only 1.79% higher amid overall negative market sentiment.

The food and beverage kiosk operator’s shares opened at P1.82 each, up 8% from its initial public offering (IPO) priceof P1.68 each. It reached as high as P2.45 before ending the day at P1.71 apiece.

Appetite for Fruitas’ IPO was strong. The company offered 533,660,000 primary common shares with an over-allotment option of up to 68,340,000 outstanding common shares, which it said was more than 2.5 times oversubscribed.

Fruitas’ market capitalization upon listing was P3.58 billion.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said despite the overall increase in its share price, Fruitas was not able to meet market expectations that were driven by its oversubscription during the IPO.

“Definitely not after reports (that it was almost) 3x oversubscribed. Anyway, a negative market sentiment will always influence the investors,” he said in a text message, referring to the decline of the main index on Friday.

The PSE index fell 29.70 points or 0.38% to close at 7,738.96 on Friday as investors reacted to US President Donald Trump’s signing of a pro-Hong Kong bill, once again raising worries on the country’s trade talks with China.

“It corrected when price could not surpass P2.45/share as local market was down,” Mr. Pangan added, referring to Fruitas shares.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez shared the same sentiment, saying in an email: “Fruitas had a disappointing IPO after it took back majority of its gains as it closed at P1.71 (from IPO price of P1.68) after reaching as high as P2.45 intraday.”

After the listing ceremony at the PSE Tower in Bonifacio Global City on Friday morning, Fruitas Chief Financial Adviser Calvin F. Chua bared the company’s aggressive expansion plans through 2022.

“We have set aside about P600 million in the next three years… The P600 million covers network expansion as well as store improvement and all the necessary logistics that we’ll need to actually deliver our products to our stores,” he said.

He added the capital expenditure will be supported by an estimate of “around P820 million” coming from net proceeds of around P1 billion from the IPO, and the rest from internally-generated cash.

Fruitas is targeting to open 150 to 250 stores every year in the next three years and to acquire foodservice businesses, introduce new concepts and diversify its distribution channels.

Proceeds from the IPO will also be used for debt repayment, commissary expansion and food park business expansion.

“Ang pangarap namin na ang bawat Pilipino ay tatangkilikin ang isa sa aming mga produkto araw-araw. Yang pangarap na yan… yan ang tatrabahuin namin [Our goal is for every Filipino to patronize at least one of our products every day. That goal… that’s what we’ll work for,” Fruitas President and Chief Executive Officer Lester C. Yu said at the briefing.

Fruitas is the fourth and last company to conduct its IPO in 2019, the others being Kepwealth Property Phils, Inc. in August and Axelum Resources Corp. and AllHome Corp. last month.

BSP: Inflation likely picks up in November

THE overall rise in prices of widely used goods likely quickened in November, the central bank said on Monday, citing higher electricity and fuel costs.

In a statement, the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research pegged November inflation at between 0.9-1.7%.

The range is beyond the 0.8% print in October. However, it is slower than the 6% logged in November 2018.

“The increase in electricity rates as well as higher prices of gasoline, LPG (liquefied petroleum gas) and selected food items are seen as the primary sources of upward price pressures for the month,” the central bank said.

“Meanwhile, inflation could be tempered by lower domestic rice prices and the appreciation of the peso,” it added.

The BSP said will continue to watch evolving inflationary conditions “to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate”.

Year-to-date inflation is at 2.6%, well within the central bank’s 2-4% target range for 2019, but higher than the official 2.5% forecast full-year average.

The Philippine Statistics Authority (PSA) is set to report the official November inflation data on Tuesday, Dec. 3. — LWTN

Energy chief slams NGCP for refusing inspection of control center

By Victor V. Saulon, Sub-editor

ENERGY SECRETARY Alfonso G. Cusi on Friday issued a stronger statement against National Grid Corporation of the Philippines (NGCP), the operator of the country’s transmission system, and the privately owned company’s link to China and the foreign country’s alleged capability to remotely shut down the local power grid.

His statement comes after NGCP earlier this week dismissed talk that the State Grid Corporation of China (SGCC) could cripple the Philippines’ power transmission.

“I wouldn’t say it’s unfounded. It’s a concern that has been raised before. Potentially, I repeat potentially, they can do it (remotely shut down) considering its digital nature,” Mr. Cusi said in a text message to reporters.

“Unfortunately, NGCP has been uncooperative to open itself for an audit to once and for all answer the issue,” he added.

Mr. Cusi said NGCP had prevented and continues to deny state-led National Transmission Corp. (TransCo) from inspecting the power transmission’s control centers “and how they use the other infrastructure under their control.”

“It has always been our position that the Systems Operations should be recovered by the government for the reason that a private company or a private individual should not be given the control over the most critical infrastructure of the state — the transmission grid network — capable of transmitting power and digital data,” he said.

“Systems Operations comprises just about 6% of the whole transmission business. It is not critical to the business of NGCP. It should not have been included in the Concession Contract in the first place. However, it is critical for the existence of the State. It is critical too for making sure it aligns with the operations of WESM (Wholesale Electricity Spot Market),” he added.

Initially, the Energy chief said what he wants is a full independent audit with appropriate agencies of government properly represented. He added that he directed TransCo to write NGCP on the matter.

“After all, they already stated they are now willing to open their systems to the government,” he said.

TRANSCO LETTER
TransCo has written to NGCP President and Chief Executive Officer Anthony L. Almeda on Friday to propose a vulnerability assessment and penetration testing (VAPT) of the transmission network and system, including telecommunications, and its associated applications and software.

In his letter, TransCo President and Chief Executive Officer Melvin A. Matibag also criticized NGCP’s statement that it was an “open book” and was willing to be audited.

He invited the NGCP official to “a meeting at your most convenient time” to discuss national security protocols.

“Moreover, to remove fear of the public as to issue of national security, we also propose representations from the Department of National Defense (DND) and the Department of Information and Communications Technology (DICT). Corollary to the conduct of the VAPT is the conduct of physical inventory of all transmission projects,” Mr. Matibag said.

NGCP did not immediately respond when asked to comment on Mr. Cusi’s statement and Mr. Matibag’s letter.

The company on Wednesday said SGCC has a 40% stake in NGCP, but the controlling 60% belongs to Filipino companies Monte Oro Grid Resources Corp. and Calaca High Power Corp. with 30% shares each.

As such, SGCC has only three nominees who sit as members of the NGCP board of directors, representing the company and proportionate to its capital shares, it added.

“SGCC serves only as the technical adviser of the consortium, but the management and the control of NGCP, including its Systems Operation, are exclusively exercised by Filipinos,” Mr. Almeda said.

He added that Mr. Cusi had inspected the NGCP facilities in August 2017, and that the company had not entered into other businesses, other than those permitted under its concession agreement.

Telecommunication companies use NGCP facilities through co-location agreements, the company said. These deals allow a third-party to “piggy-back” on its right-of-way or existing facilities except tapping into or using the transmission service provider’s fiber optic cables, it said.

Smooth sailing seen for 2020 budget in bicam

By Charmaine A. Tadalan, Reporter

THE PROPOSED P4.1-trillion national budget for 2020 is seen to smooth-sail in the bicameral conference committee, according to a senator, citing less contention in the House leadership.

The bicameral panel on Friday set to work on the annual spending plan, beginning with the submission of proposed amendments by each chamber, which will be tackled in a one-on-one meeting between the leaders of the House and Senate contingent.

Both congressional chambers are working to prevent a repeat of the 2019 budget delay scenario, which forced the government to operate under a reenacted budget for four months.

The delay stemmed from an impasse between the House of Representatives and the Department of Budget and Management, and later with the Senate.

“I think that dispute was a product nung (of) leadership sa (in the) House, e. Ito, mukhang wala namang pagbabago (This, it looks like there are no changes,) so I think, smoother,” Senator Juan Edgardo M. Angara, who chairs the finance committee, told reporters on the sidelines of the bicameral conference committee meeting at the Manila Polo Club.

The first day of the bicameral deliberation saw the exchange of each chamber’s new proposed amendments, which Mr. Angara and Davao 3rd District Rep. Isidro T. Ungab, chair of the House appropriations committee, will discuss.

“What will happen is, I think, the House and the Senate will study the respective changes… each version of the budget, tapos (then) we’ll meet again next week, I think to reconcile,” Mr. Angara said.

“I think the final decision is one-on-one. But there’s always a consultation. What happens is usually, pag may (if there are) amendments they don’t agree with, we’ll have to discuss it with the senator or the congressman who made the amendment.”

AMENDMENTS
Senator Panfilo M. Lacson in a separate chance interview, said among the amendments proposed by the Senate was the reduction of the budget of the Department of Transportation and the Department of Public Works and Highways (DPWH), and an increase for the Defense and Health departments.

For the Department of Health, the increase would cover the higher pay for nurses as mandated by law.

On the other hand, Mr. Lacson said some P45 billion lump sum appropriation under the DPWH budget was deleted. This was later re-submitted by the DPWH as itemized projects, but was no longer accepted by the chamber.

“The DPWH, being an agency of the executive branch, cannot participate in amending the appropriations measure. Kami lang ang pwedeng mag-amend (We are the only ones who can make amendments),” he said.

BSP orders banks to be on alert for Ponzi, other illegal investment schemes

AMID THE recent spate of illegal investment schemes that victimize people mainly in cities and towns outside the capital, the Bangko Sentral ng Pilipinas (BSP) has issued a warning to the public against being lured by high returns on their money and asked banks to be on alert for unusual financial activities.

“These types of investment schemes include ‘Ponzi scheme’ wherein a fraudster lures investors with the promise of high returns that are to be generated through the investment or business efforts of the fraudster,” the central bank said in a memorandum published in its Website on Friday.

The memorandum, signed by Deputy Governor Chuchi S. Fonacier, called on BSP-supervised financial institutions (BSFIs) to be on alert for such schemes as they could be used to channel funds from such activities through deposit accounts of the lead perpetrators as well as their associates and related entities.

The central bank said it is “imperative” that BSFIs maintain a robust risk management system in place to help them protect their clients.

Some red flag indicators cited are frequent or significant deposits which do not match the customer’s financial profile, sudden spikes in account activities, ownership of several accounts where transaction movements deviate from the declared or known activities.

Other red flags include a newly-established business that has an unusually high volume of transactions, high volume of check issuances from a single customer not matching the client’s profile, and an unusual increase in bank branch transactions in areas that have been identified as sites for illegal investment schemes.

The central bank laid down guidelines for BFSIs to help their clients avoid becoming prey to such activities as well as monitoring suspected operators.

One of the guidelines is the use of preventive measures such as conducting strict customer due diligence, including verification of identity, background, financial profile, and sources of funds.

BFSIs are also urged to have a “surveillance mechanism to timely capture information, advisories, or news reports that identify personalities or entities involved in illegal investment schemes”.

“The SEC (Securities and Exchange Commission) regularly releases these advisories which should be considered as part of holistic assessment of the risk profile of a customer, including their relationship to those directly identified in the SEC advisories,” the BSP said.

BFSIs are also asked to ensure that branch personnel are duly informed of policies and procedures when coming across suspicious transactions. — Luz Wendy T. Noble

Free tickets to be distributed for SEA Games closing, some sports events

FREE TICKETS will be distributed by the Philippine SEA Games Organizing Committee (PHISGOC) for the event’s closing ceremony on Dec. 11 and for most of the competitions, except the popular sports basketball, volleyball, and football.

House Speaker Alan Peter S. Cayetano, who chairs PHISGOC, said those who are working as volunteers for the country’s hosting of the 30th South East Asian (SEA) Games will get priority, and “a few thousand tickets” will also be given to the local government units hosting the games.

For the volunteers, he said “it is traditional and it serves as a thank you gift.”

The announcement came after President Rodrigo R. Duterte, when asked by the media about providing the public free access to the games, said he would want to do so if the decision were up to him.

“So ang mangyayari siguro yung sa (So what will happen is, maybe the) closing ceremony, more or less 10,000 tickets (will be free),” Mr. Cayetano said in a chance interview Friday on the sidelines of the bicameral conference committee at the Manila Polo Club.

He said most of the tickets for basketball, volleyball, and football, particularly when the Philippine team is playing, are already sold.

The PHISGOC chairman asked people not to go straight to the venues and said announcements will be made as to where the free tickets will be distributed.

HALAL STALLS
Meanwhile, the Department of Trade and Industry (DTI) has installed a temporary facility at the East Commercial Center in New Clark City to offer halal food options as well as showcase other Philippine products.

There have been reports of limited halal food choices as contingents from the different ASEAN countries started arriving last week. — Genshen L. Espedido

Rep. Salceda says 2019 budget extension constitutional

ALBAY REPRESENTATIVE Jose Maria Clemente S. Salceda, chair of the ways and means committee, does not expect a veto on House Bill 5437, which seeks to extend the validity of the 2019 budget.

In a Viber message to reporters, Mr. Salceda said extending the validity of this year’s budget until December 31, 2020 “is well within the powers of Congress and not unconstitutional due to an Executive Order (EO)”.

Mr. Salceda also noted that the Department of Budget and Management (DBM) “supported the measure in the House and Senate hearings and posed no objections and committed to abide by wisdom of Congress”.

“While 93% has been released by DBM to implementing agencies, level of obligation by agencies to suppliers are lower at roughly P230 billion,” he said.

Last Thursday, Presidential Spokesperson Salvador S. Panelo told reporters that the President is ready to veto the measure if it proves to be “in violation of the Constitution”.

President Rodrigo R. Duterte signed EO 91 last September, which directs the government to adopt a cash-based budgeting system (CBS) wherein all funds shall be made available for disbursement only until the end of each fiscal year.

Mr. Salceda said the extension of the validity of this year’s budget is “good for the economy since it considers the five months delay” in passing the 2019 General Appropriations Act. — Genshen L. Espedido

Infrastructure spending drops in October

INFRASTRUCTURE SPENDING continued to decline in October as the delayed passage of this year’s budget took a toll on disbursements, officials said.

Citing preliminary data, Budget Undersecretary Laura B. Pascua said on Friday that spending on infrastructure and other capital outlays stood at P82.2 billion in October.

The October figure was 12.92% lower from the P94.4 billion posted in the same month last year, and a reversal from the 53.9% year-on-year surge in September to P100.3 billion.

However, Ms. Pascua said the department is still finalizing the disbursement report for October and will be up on their website soon.

In the 10 months to October, infrastructure spending still lagged as it was lower by 5.5% year-on-year at P628.5 billion, accounting for just 73% of the full-year disbursement program of P859.5 billion, Finance Secretary Carlos G. Dominguez III told reporters on Wednesday evening.

Mr. Dominguez, who also heads the administration’s economic team, said the contraction in infrastructure spending during the period was “mainly due to the delay of the passage of the 2019 national budget and election ban.”

However, he said officials of the two primary infrastructure agencies assured the economic team that they will reach the full-year target.

Mr. Dominguez said the Department of Public Works and Highways (DPWH) vowed to reach its P725-billion disbursement target for the year.

He said the DPWH has spent P503.4 billion as of end-October, which accounted for 69% of its full-year target worth P725 billion.

“Secretary Mark Villar assured that the remaining P221.6 billion target disbursements for the last two months of this year is attainable,” he said.

For the Department of Transportation (DoTr), Mr. Dominguez said the agency used 57% of its full-year disbursement program at P46.82 billion from January to Nov. 28. DoTr posted its “highest rate ever achieved” in terms of actual disbursement.

“The other big spending departments such as the Department of Education, Department of Social Welfare and Development, among others, also committed to accelerate their disbursements in the remaining two months of the year,” he added.

GDP TARGET ‘ON TRACK’
Meanwhile, the Finance chief remained positive that the country can hit the low end of its 6-7% full year target for gross domestic product growth (GDP) as the government continues its catch-up spending plan, and on the back of robust public consumption buoyed by easing inflation.

“I’ve always maintained that we believe that most likely hit the lower end of our 6-7% target and it looks like our continuous monitoring of projects and removal of the bottlenecks is paying off and that I think, especially the two big infrastructure departments are doing their utmost and quite achieving a good percentage of their target,” he said.

With only a month left before the year ends, he said the economic team “remains optimistic that the economy will expand at a higher clip” as government agencies accelerate on the implementation of infrastructure development program as well as the continued investment for human capital development.

“Overall, we remain on track to reach our GDP growth target of 6 to 7 percent in 2019,” he said.

The economy expanded at a faster-than-expected clip in the third quarter at 6.2%, picking up from the muted 5.5% average growth in the first half and also higher from the six percent GDP growth in the third quarter last year.

The muted growth in the first half was largely attributed to the delayed passage of the 2019 budget which left projects unfunded, coupled with the 45-day ban on public works ahead of the mid-term elections last May.

For next year, Mr. Dominguez said the swift passage of the P4.1-trillion budget will provide the economy more room for faster expansion and a higher chance to hit the 6.5-7.5% GDP growth target for the year.

Last Wednesday, the Senate approved on third and final reading its version of the 2020 budget while the House of Representatives approved the budget plan last Sept. 20.

“I trust this bicam to go quite quickly. So we’re very confident that by the end of the year, we’ll have our full year budget approved for next year,” he said.

The 18th Congress’s bicameral conference committee held its first meeting on the proposed budget on Friday.

“That will help greatly but you know, it’s not only the budget that’s important, it’s what happens outside the country and so far, although there are good reports about this trade war getting resolved, that’s good news. I’m just not sure if those reports are accurate,” Mr. Dominguez added. — Beatrice M. Laforga

Gov’t debt slips as of October

THE GOVERNMENT’S outstanding debt slipped in October amid a stronger peso, the Bureau of the Treasury (BTr) reported yesterday.

Data from the BTr released on Friday showed the national government’s total debt stock stood at P7.906 trillion as of end-October, lower by 0.02% from the previous month’s P7.907 trillion

Year-on-year, the October debt level was 10.31% higher compared to the P7.167 trillion logged as of the same month last year.

Of this total, 67.08% or P5.304 trillion was sourced locally while 32.89% or P2.601 trillion were from external creditors.

The government’s local debt stood at P5.304 trillion as of end-October, 14.82% higher year-on-year and also up by 0.89% from the end-September level of P5.257 trillion.

“The increase resulted from a P47.53 billion net issuance of government securities, which was partially offset by a P0.52 billion reduction in the local currency valuation of onshore dollar bonds caused by peso appreciation,” the BTr explained.

Since the start of 2019, the domestic debt grew by 11.05% to P527.92 billion.

Meanwhile, state borrowings from external sources totalled P2.601 trillion as of October, 1.83% lower from the previous month’s P2.649 trillion but still 2.14% higher compared to P2.546 trillion in end-October 2018.

The Treasury attributed the smaller external debt stock to the P630 million worth of net repayments made and the peso’s appreciation, which “trimmed the valuation of US dollar-denominated debt by P52.49 billion”.

Meanwhile, the national government’s total guaranteed obligations declined by 1.4% to P477.65 billion in October from the previous month’s record of P484.42 billion.

“For the month, the lower level of guarantees was due to the combined effect of local and third-currency fluctuations that reduced the value of external guarantees by P4.65 billion and P0.03 billion, respectively,” the statement read.

For this year, the government has capped the budget deficit at 3.2% of gross domestic product, and has set a 73-27 ratio for its borrowing plan, in favor of local sources. — B.M. Laforga

CONFED forwards proposals to address sugar industry challenges

THE CONFEDERATION of Sugar Producers Association, Inc. (CONFED) has sent proposals to government officials to address industry challenges and prevent threats from import liberalization.

CONFED said in a statement on Friday that after consultations and workshops, the group sent proposals to the offices of Senator Juan Miguel Zubiri, agriculture secretary William D. Dar, and to the Sugar Regulatory Administration board.

They recommended programs to improve productivity, review the Sugar Industry Development Act (SIDA), and enhance the institutional and political structure of the industry.

To increase productivity in the industry, CONFED said that the block farm program — or the consolidation of smaller farms to take advantage of economies of scale — must be expanded. They added that there should be mechanization through funds from SIDA or through access to affordable loans from the government’s financial institutions.

CONFED proposed upgrading and standardizing mills and mobilizing “progressive sugarcane farmers” to become farm consolidators, service providers, or peer mentors.

The confederation is also urging government to review the implementing rules and regulations of the SIDA law. They are pushing for streamlined application processes, quicker fund utilization, fast-tracked program implementation, and an adjusted fund allocation formula based on industry priorities.

SIDA, or Republic Act 10659, is intended to update industry competitiveness, maximize resources, and boost farmer and farm worker income through improved productivity, product diversification, increased jobs, and sugar mill efficiency.

CONFED is seeking the full restoration of its P2 billion budget.

CONFED Negros-Panay chapter head Nicholas Ledesma relayed farmer complaints on the “tedious” process to access programs offered by the SIDA law.

“The need to streamline processes must be addressed urgently as this has led to underutilization of the SIDA fund which in turn, hampers our plan to modernize and improve on our productivity,” he said.

The confederation also said that the industry must manage negative perceptions.

“The industry has always been at the receiving end when retail prices of sugar go up which is why one of our urgent recommendation(s) is to undertake direct sugar marketing to address this issue,” CONFED spokesperson Raymond V. Montinola said.

He also said that there is “imperative need for additional support on research and development, not only in developing and propagating new varieties that can withstand weather and soil challenges but on technology that can make farms more efficient.” — Jenina P. Ibañez

Mobile video experience in PHL fair but improving

By Denise A. Valdez, Reporter

MOBILE video experience in the Philippines for 2019 was tagged “fair” by a global wireless coverage mapping firm, improving from its “poor” ranking in 2018.

In its “The State of Mobile Video Experience” report for this year, United Kingdom-based Opensignal ranked the Philippines 88th in a survey of 100 countries for quality of mobile video experience.

The country was at the bottom of last year’s mobile video experience list of 69 countries.

The Philippines joins 28 other countries in the fair category for 2019, along with other large markets such as Indonesia, Russia and the United States.

Opensignal uses five categories in grouping video experience: poor (those with a video experience score of 0-40), fair (40-55), good (55-65), very good (65-75) and excellent (75-100).

The video experience score measures the quality of videos when using a third generation (3G) or fourth generation (4G) mobile network, where three factors are considered: picture quality, video loading time and stall rate.

The Philippines’ video experience score this year is 42.7, an increase from last year’s 34.98. This puts mobile video experience in the Philippines at the fourth to the last place in the fair category.

Opensignal said it generally observed improvements in mobile video experience in many countries in 2019.

“Across the globe, we see ongoing network deployments using newer 4G technologies, which means users’ smartphones connect to multiple frequency bands at once, with higher-grade encoding,” it said.

“Perhaps more significantly, as carriers in major developed countries look to wider 5G roll outs, they often prepare first by upgrading 4G sites with improved backhaul links to existing cell towers, which has the effect of boosting the 4G experience for current users,” it added.

But it said in countries like the Philippines where a large chunk of the population rely on mobile devices for video streaming, telecommunications operators are challenged by the high volume of mobile network traffic.

“In large emerging economies like Indonesia and the Philippines, the challenge for carriers is every bit as acute as it is in developed markets, because consumers routinely rely on their phone as their main, sometimes their only, digital device,” the report said.

“This means mobile video viewing may not only be a personal preference because a football game happens to be on at a slightly inconvenient time when someone happens to be away from home, but in these mobile-first countries the smartphone is often simply the only screen available at home to watch the game,” it added.

Topping Opensignal’s 2019 list for mobile video experience is Norway, with a video experience score of 78.5. Joining it in the excellent category are five other nations, namely Czech Republic (77.2), Austria (76.7), Denmark (76.0), Hungary (75.9) and Netherlands (75.7).

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