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Select NBA games to be aired over CNN Philippines

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By Michael Angelo S. Murillo
Senior Reporter

WHILE National Basketball Association games have yet to find a permanent venue to be aired on television locally, fans have to make do for now of weekend airings of the matches by way of national free-to-air channel CNN Philippines.

In an announcement made on Wednesday, the NBA said it has struck a deal with CNN Philippines to televise select games and feature highlights across its various news programs, including Sports Desk and News Night.

The airing of the games begins on Saturday, Nov. 16.

“Weekends just got better with the return of live NBA games on national television through CNN Philippines,” said NBA Philippines Managing Director Carlo Singson in a statement shared to members of media.

“Filipino fans now have a choice of watching our games across a variety of platforms including television, computers and mobile devices via social media and NBA League Pass,” the statement further read.

The NBA found itself sans a local TV partner after its long-standing partnership with Solar Entertainment Corp. ended and was not renewed in the lead-up to the start of the of the 2019-20 season.

Solar operated the Basketball TV and NBA Premium TV channels, widely acknowledged as the go-to sources on TV for comprehensive NBA coverage in the country.

Cignal, TV5 and Sky Cable presented a joint bid to air the games but negotiations reportedly are on stalemate as of the moment.

In place of television prior to the deal with CNN Philippines, NBA games were solely being aired on social media platforms of the league’s local office — Twitter and Facebook — and through NBA League Pass, the NBA’s premium subscription service.

First to be aired on Saturday is the game between the Boston Celtics and the Golden State Warriors at 11:30 a.m. to be followed on Sunday, Nov. 17, of the match pitting the Milwaukee Bucks against the Indiana Pacers at 8 a.m.

On Nov. 23 it will be the Houston Rockets versus the Los Angeles Clippers (11:30 a.m.), Nov. 24 is the New Orleans Peilcans against the Utah Jazz (10 a.m.), and Nov. 30 it will be the Dallas Mavericks vs. the Phoenix Suns (10 a.m.).

December schedules will be announced later.

CNN Philippines is available on free-to-air television on Channel 5 for Zamboanga, Channel 8 for Bacolod, Channel 9 for Manila, Cebu and Davao, and Channel 12 for Baguio, while cable subscribers can check with their local providers for more information on channel listing.

Dubov’s exhibition

22nd European Team Championship
Batumi, Georgia
Oct. 24 — Nov. 2, 2019

Final Top Standings
(in match points)

1. Russia, 15/18. bd01 GM (Grandmaster) Dmitry Andreikin 2741, 5.5/8, bd02 GM Nikita Vitiugov 2732, 4.5/7, bd03 GM Kirill Aleksenko 2674, 4.5/8, bd04 GM Maxim Matlakov 2716, 2.5/6, bd05 GM Daniil Dubov 2699, 5.5/7.

2. Ukraine, 14/18. bd01 Vassily Ivanchuk2686, 5.5/9, bd092 GM Yuriy Kuzubov 2636, 4/6, bd03 GM Andrei Volokitin 2627, 4.5/7, bd04 GM Alexander Moiseenko 2635, 2.5/6, bd05 GM Vladimir Onischuk 2616, 6/8.

3. England, 14/18. bd01 GM Michael Adams 2694, 5.5/9, bd092 GM Luke McShane 2682, 5/8, bd03 GM David Howell 2694, 5/9, bd04 GM Gawain Jones 2688, 5.5/8, bd05 GM Nicholas Pert 2557, 1.5/2.

4. Armenia, 13/18

5. Croatia, 12/18

6–10. Azerbaijan, Spain, Germany, France, Czech Republic, 11/18

Total of 40 participants: 140 GM, 41 IM (International Master), 14 FM

Time Control: 90 minutes for the first 40 moves, then 30 minutes play-to-finish with 30 seconds added to your clock after every move starting move 1.

Best Rating Performances:

GM Dmitry Andreikin RUS 2741, Rp (rating performance) 2817

GM Ferenc Berkes HUN 2667, Rp 2844

GM Daniil Dubov RUS 2699, Rp 2805

Flashback to the 1963–1964 USA Championship. Bobby Fischer won all of his games (11 out of 11, many of them in brilliant fashion) to win the title. The 2nd placer was Larry Evans, a full 3.5 points behind at 7.5/11

Bobby Fischer recounted in “My 60 Memorable Games:” “Motivated by my lopsided result (11-0!), Dr. Kmoch congratulated Evans (the runner up) on ‘winning’ the tournament … and then he congratulated me on ‘winning the exhibition.’

I feel the same way about the European Team Championship which just concluded two weeks ago. Russia dominated by winning both the men’s and women’s divisions, but it was their 23-year old reserve player GM Daniil Dubov (born April 18, 1996) who caught the imagination of the chess-loving public as he unleashed mayhem on the board every time he came to play. He finished with 5.5/7 and a performance rating of 2805, incidentally winning gold medal on board 4.

Let us see what everybody was so excited about.

Dubov, Daniil (2699) — Svane, Rasmus (2592) [D37]
22nd EU-chT Open 2019 Batumi (7.4), 31.10.2019

1.c4 e6 2.Nc3 d5 3.d4 Nf6 4.Nf3 Be7 5.Bf4 0–0 6.e3 b6 7.Qc2 Ba6 8.0–0–0!?

If you weren’t Dubov perhaps you’d play 8.Ne5 dxc4 9.Bxc4 Bxc4 10.Nxc4 Nd5 11.Nxd5 Qxd5 12.0–0 with a “normal” game. Inarkiev, E. (2693)-Kryvoruchko, Y. (2669) Mali Losinj 2019 1/2 36.

8…dxc4 9.Ng5

The idea is to play d4–d5 since the black knight on f6 cannot move because of mate on h7.

9…Nc6

In return Black threatens …Nb4.

10.a3! g6! 11.h4 Bd6

Not 11…h5? 12.Nxe6! fxe6 13.Qxg6+ Kh8 14.Qh6+ Kg8 15.d5! exd5 16.Nxd5 Nxd5 17.Qg6+ Kh8 18.Qxh5+ Kg8 19.Rh3 with the heavy artillery moving in Black cannot survive this.

12.g3! Qe7 13.h5! e5

[13…Nxh5 14.Rxh5 gxh5 15.Qxh7#]

14.hxg6 hxg6

[14…exf4 15.gxf7+ Rxf7 (15…Kg7 16.Rxh7+ Nxh7 17.Qxh7+ Kf6 18.Qh6+ Kf5 19.Bh3#) 16.Nxf7 Qxf7 17.gxf4 Black’s king is too exposed]

15.Bg2 exf4

[15…Bb7 16.Nd5 Nxd5 17.Bxd5]

16.Bxc6

Well, nothing wrong with restoring the material balance, but there was a brilliant move available here: 16.gxf4!! and now, with the center pawns stable, White can take his time to double or triple major pieces on the h-file. Here is how it could go: 16…Bb7 17.Nd5! Nxd5 18.Bxd5 (threatening Qxg6 mate) 18…Qf6 19.Nh7 Qg7 20.Rdg1 Qxh7 (there is nothing else) 21.Qxg6+! Qxg6 22.Rxg6#

16…fxg3 17.Kb1!

White needs his white-squared bishop for the attack. Exchanging it for the rook with 17.Bxa8 is not a good decision as after 17… Rxa8 18.Nge4 Nxe4 19.Nxe4 Bb7 white’s attack is ended and Black’s two bishops will come into their own.

17…Rad8 18.f4 Bc8!

Opening the possibility of a future …Bf5.

19.Rde1 Kg7 20.Nd5 Nxd5! 21.Rh7+! Kg8 22.Rxf7! Rxf7 23.Qxg6+ Kf8!

Now …Bf5+ is a real possibility. But not 23…Rg7? 24.Bxd5+ Kf8 (24…Kh8 25.Rh1+) 25.Nh7+ Rxh7 26.Qg8#

24.Qh6+ Rg7!

[24…Kg8 25.Bxd5]

25.Bxd5 Ke8 26.Qh5+ Kd7

One more move Black will play …c6 and his king is no longer in any danger.

27.Qh3+ Ke8 28.Qh5+ Kd7

Dubov had four minutes left on his clock so some onlookers thought that he would go for the draw by perpetual check, but no.

29.Be6+! Kc6? <D>

Position after 29…Kc6

It was either give up his queen or take his chances with the king out in the open. However, there is now a forced mate in 14. Hard to see, but it is there.

30.Qf3+ Kb5 31.Bxc4+! Ka5

[31…Kxc4 32.Qc6+ Kb3 (32…Bc5 33.Rc1+ Kb3 (33…Kd3 34.Rc3+ Ke2 35.Qg2+ Ke1 36.Rc1#) 34.Rc3#) 33.Qc2#]

32.Qd5+ Bc5

[32…c5 33.b4+ Ka4 34.Kb2 (idea is Qc6+ followed by mate 34…Bb7 35.Bb3+ Kb5 36.a4+ Kxb4 37.Qc4+ Ka5 38.Qb5#]

33.b4+ Ka4 34.Qg2! Bxb4

[34…Kxa3 35.Qb2+ Ka4 36.Qb3#]

35.Qc6+ Kxa3 36.Bb3!

An only move, everything else loses. Dubov found this with 10 seconds left on his clock. On the other hand if 36.Qg2? Bd2! 37.Qxd2 Qb4+ it is Black who wins.

36…Bd7

[36…Kxb3 37.Qc2+ Ka3 38.Qa2#; 36…Bf5+ 37.e4]

37.Qc1+ Kxb3 38.Qc2+ Ka3 39.Qa2# 1–0

Here is Dubov’s game from the 1st round, a portent of things to come.

Bjerre, Jonas Buhl (2506) — Dubov, Daniil (2699) [C88]
22nd EU-chT Open 2019 Batumi (1.4), 24.10.2019

1.e4 e5 2.Nf3 Nc6 3.Bb5 a6 4.Ba4 Nf6 5.0–0 Be7 6.Re1 b5 7.Bb3 0–0 8.a4

This is the most popular Anti-Marshall system. Our BW readers know that 8.c3 d5 9.exd5 Nxd5 10.Nxe5 Nxe5 11.Rxe5 is the Marshall Attack. It is generally agreed that Black gets good piece play which he can translate into promising long-term compensation.

8…d5!?

Wow! Despite White’s Anti-Marshall move Black still plays the Marshall. How come no one has ever thought of this before? Usually Black’s move here is 8…b4, 8…Rb8, or 8…Bb7.

9.exd5

I predict we will soon see White try 9.axb5 dxe4 10.bxc6 exf3 11.Qxf3 e4 12.Qe2 Bd6 13.h3 looks like Black has enough compensation for the pawn.

9…Na5 10.Nxe5 Nxb3 11.cxb3 Bb7 12.Nc6 Bxc6! 13.dxc6 Bc5 14.d3 Bxf2+! 15.Kxf2 Qd4+ 16.Be3?

[16.Kg3 seems to be the only move here, although after 16…Rae8 17.Rf1 Black can force a draw if he wants: 17…Qd6+ 18.Kf2 Qd4+]

16…Ng4+ 17.Kf3 Nxe3 18.Rxe3 Rae8 19.Re2 Qf6+ 20.Kg3 g5!

Threatening …Qf4+

21.Rf2 Qd6+ 22.Kh3 Qh6+ 23.Kg4 f5+ 0–1

With all this hullaballoo about Fischer Random chess and the avoidance of of opening theory it seems that GM Daniil Dubov is inspired to show us all that there is still a lot of scope in classical chess for original ideas, creative attacks and exciting battles. All that is required is a desire to fight.

So that’s that on the chess exhibition GM Dubov gave during the European Championship. On Tuesday we will see how the rest of the teams did.

 

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

Superior Clippers

Kawhi Leonard’s disposition in the aftermath of the Clippers’ match the other day wasn’t that of a proud competitor who just had his worst outing of the season. In fact, he was decidedly upbeat, clearly an offshoot of the outcome. For all his travails, he helped carve victory in his new digs at the expense of the Raptors, his immediate past teammates. They had, and still have, relationships outside the court that made, and make, results on it matter. And, even on a night where he made just two of 11 shots and could have had a tainted quadruple-double had he committed another turnover with an assist, the bragging rights were his.

Indeed, the Raptors were feisty from opening tip, making a go of the set-to despite missing vital cogs Kyle Lowry and Serge Ibaka. They were on the second of a back-to-back set, and yet remained spry and alert, no doubt buoyed by the still-fresh memory of their success against the Lakers and motivated to get the better of Leonard. They were determined to go two of two at the Staples Center, in the process showing up the star who led them to the championship last season, and who then still found cause to leave them as soon as he could.

In the end, however, there could be no overcoming the Clippers‘ superiority in talent — and not merely when compared to the Raptors. They’re better against just about all the others in the league, well coached and boasting of depth and confidence borne of proven mettle; they didn’t go deep in the loaded West last season for nothing. And if they’re bent on claiming the hardware this time around, it’s because they have Leonard, arguably the National Basketball Association’s best of the best.

Here’s the scary part: The Clippers still have higher gears on tap. All-Star Paul George is close to returning to action; once he does and gets his bearings back, look out. His partnership with Leonard has the potential to trump that of the Lakers’ LeBron James and Anthony Davis. The Raptors came up with a good formula to contain them the other day. Unfortunately, it didn’t work. And absent the element of surprise, it’s bound to fail the next time around. They’re that good, and they’ll be even better — make that much, much better.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

PSEi drops below 8,000 on US-China trade talks

By Denise A. Valdez
Reporter

THE PHILIPPINE Stock Exchange index (PSEi) failed to stay above the 8,000 level yesterday as investors were alarmed on seemingly dwindling trade negotiations between United States and China.

The local bellwether trimmed 64.87 points or 0.81% to close at 7,947.47 on Wednesday.

The broader all shares index likewise gave up 24.73 points or 0.51% to end the session at 4,763.89.

“Market drifted lower whilst Trump made fresh comments on trade deal hinting that existing tariffs will be raised if no deal is made (with China),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

Bloomberg reported Wednesday US President Donald Trump warned of increasing tariffs on Chinese products “very substantially” if the trade talks don’t lead to an agreement soon. He also said such move will be made for other countries that will “mistreat” the US as well.

The comments were made in a speech to the Economic Club of New York, where Mr. Trump also said he will only sign the trade deal with China if it will benefit American companies and workers.

Markets in the Asia Pacific ended negatively amid the developments. Japan’s Nikkei 225 and Topix indices fell 0.85% and 0.55%, respectively. Hong Kong’s Hang Seng Index, Australia’s S&P/ASX 200 and China’s Shanghai SE Composite index also dropped 1.82%, 0.81% and 0.33%, respectively.

At the PSE, mining and oil was the only sectoral index to advance on Wednesday’s close, increasing 41.35 points or 0.46% to 8,911.52.

All other counters declined. Industrials went down 109.42 points or 1.05% to 10,301.48; financials dropped 16.31 points or 0.84% to 1,907.06; holding firms lost 64.52 points or 0.81% to 7,832.75; property declined 17.06 points or 0.41% to 4,126.41; and services sank 5.26 points or 0.33% to 1,548.42.

Value turnover on Tuesday was reduced to P4.63 billion from P4.73 billion a day prior, with 1.17 billion issues changing hands.

Stocks that declined outnumbered those that gained, 105 against 73, while 59 others were ended flat.

Net foreign selling increased to P720.69 million on Wednesday from Tuesday’s P392.04 million.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail the bigger net selling was a factor for the main index’s decline. “A lack of any near-term catalysts has left the index trading sideways for the past few days,” he said.

“A close below the 8,000 mark puts the index’s next support at its 200-day MA (moving average) of 7,900, only a few points away. The recent MACD (moving average convergence/divergence) Bearish crossover is a red flag that this area could be broken in the near-term,” Mr. Perez added.

Peso drops on tensions

THE PESO weakened on Wednesday amid worsening political tensions in Hong Kong and negative developments in the US-China trade negotiations.

The local unit closed at P50.82 versus the greenback on Wednesday, depreciating by nine centavos from its P50.73 per dollar finish on Tuesday, according to data from the Bankers’ Association of the Philippines.

The peso opened at P50.86 against the dollar. Its weakest point for the day was at P50.93, while its intraday best was at P50.815 versus the greenback.

Dollars traded on Wednesday went down to $1.464 billion from $1.553 billion recorded on Tuesday.

UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion attributed the peso’s weakness to geopolitical tensions overseas.

“With the peso, it seems that the weakness came from both the disruptions from the escalating Hong Kong protests and the lack of positive insight from the US-China trade negotiations when [US President Donald J.] Trump warned of further tariff hikes if both economies do not come to an agreement,” he said in a text message.

Rizal Commercial Banking Corp. Economist Michael L. Ricafort echoed this sentiment.

“External factors that could have weighed on the peso include increased protests in Hong Kong and mixed signals from US President Trump with a threat to substantially raise tariffs if a phase one of a trade agreement is not reached with China while saying that the US and China are close to a phase one trade deal,” Mr. Ricafort said in a text message.

In Hong Kong, anti-government protesters paralyzed parts of the Asian financial hub for a third day, with some transport links, schools and many businesses closing after an escalation of violence.

For today, Mr. Asuncion sees a trading range of P50.80-P51.10, while Mr. Ricafort expects the local unit to play around the P50.70-P51.00 level. — L.W.T. Noble with Reuters

Drug suspects arrested in Quezon City

POLICE arrested eight drug suspects and seized P68,000 worth of crystal meth in separate raids in Quezon City in the past two days.

Police arrested three people in the village of Bagong Pag-asa and seized seven grams of crystal meth or shabu worth about P47,600 on Monday night.

Meanwhile, they seized three grams of shabu worth P24,400 from two drug dealers in the village of Gulod after midnight yesterday.

Police also arrested an elderly woman and two other people from Sto. Niño village yesterday and confiscated half a gram of shabu worth P4,000.

The suspects face charges of violating the Comprehensive Dangerous Drugs Act. — Emmanuel Tupas, Philippine Star

Former chief justice getting death threats

FORMER Chief Justice Lucas P. Bersamin has been receiving threats since he retired last month, according to police.

Mr. Bersamin had the threats documented in the police blotter of the Quezon City Police District’s Criminal Investigation and Detection Unit (CIDU) on Monday.

The latest threat on the former magistrate took place on Nov. 10, when two motorcycle-riding men tailed the former chief justice while he in his car vehicle along Quezon Avenue.

Mr. Bersamin, 70, said he was on his way home when his bodyguards noticed the two men were following them.

The suspects kept following his vehicle to a street heading to Commonwealth Avenue. One of his security escorts who was driving stepped on the gas when he noticed the back rider was pointing at them.

Mr. Bersamin said he had also received two phone calls from unidentified people who threatened him on separate occasions last month, days after he retired on Oct. 18. Police spokesman Brigadier General Bernard Banac said the former top judge could seek their help if he wants to beef up his security. Mr. Bersamin could avail himself of as many as two police escorts, he said. — Emmanuel Tupas, Philippine Star

Police agrees no need to extend martial law in Mindanao

THE PHILIPPINE National Police (PNP) sees no need for another extension of martial law in Mindanao, supporting an earlier statement by Defense Secretary Delfin N. Lorenzana. “Peace and order in Mindanao is under control and continues to show marked stability, a condition that may eventually pave the way for lifting of martial law,” PNP Spokesman Brig. Gen. Bernard M. Banac said in a statement on Tuesday. Mr. Lorenzana on Monday said he is not keen on endorsing a Mindanao martial law extension for another year. Martial law in Mindanao was first imposed at the start of the Marawi City siege on May 23, 2017, was extended twice, and is set to expire on Dec. 31. Mr. Banac told reporters extra security measures can just be maintained in areas considered as strongholds of local terrorist groups. The PNP will submit its formal recommendation to the National Security Council in December. — PHILSTAR/Emmanuel Tupas

Nation at a Glance — (11/13/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (11/13/19)

Outsourcing industry tempers goals

THE INFORMATION TECHNOLOGY and Business Process Association of the Philippines (IBPAP) has cut its revenue and employment targets up to 2022 after a slowdown in recent years prompted the group to reevaluate its road map.

During its 11th International Innovation Summit at Manila Marriott Hotel in Pasay City on Tuesday, IBPAP announced a 3.5-7.5% revenue compound annual growth rate (CAGR) projection to $29-32 billion for 2020-2022, compared to the nine percent set in 2016.

Employment CAGR for the same period has been tempered to 3-7% to 1.42-1.57 million full-time employees, compared to an eight percent projection previously.

In his remarks at the event, IBPAP President and Chief Executive Officer Ray E. Untal said: “… [W]e deemed it necessary to take a pause, revisit our industry projections and reassess how exactly we will move forward. And so, after several analyses, we commissioned the Everest Group to undertake our recalibration exercise.”

Hanumantha Karthik, Everest Group managing partner, in a presentation noted subdued global information technology and business process management (IT-BPM) revenue and job growth in 2017-2018, saying he expected the trend to continue. “The revenue growth is more than head count. This is because of the shift towards digital, shift towards automation. So this thing about doing more for less, that’s really the theme that’s going to be impacting the global industry,” he said.

According to his presentation, annual global revenue growth can be expected to reach 6-6.5% by 2022, while annual employment headcount growth is expected at 4.9-5.3%.

RECOVERY?
While the Philippines has also been experiencing slower growth, there are signs that pace could be picking up.

Revenue growth in 2019 is now projected at 5.2%, following six percent last year and two percent in 2017.

Employment growth in 2019, on the other hand, is estimated at 4.7%, following last year’s 5.1% and two percent in 2017.

Everest Group studied global and local factors to arrive at the new targets, including geopolitical and regulatory changes like the United Kingdom’s impending exit from the European Union, proliferation of protectionist policies, automation, sluggish macroeconomic growth and rapid transformation of business models.

Certain subsectors, including healthcare, animation and game development, are expected to grow faster compared to the overall IT-BPM industry.

DRIVER OF THE ECONOMY
“The study gave us a lot of insights and, from that, it is clear that we need to take both strategic and sustained actions in specific areas to achieve the maximum Philippine growth potential for the IT-BPM sector,” Mr. Untal said in yesterday’s event.

The IT-BPM sector is a key driver of real estate development and household consumption, which in turn fuels nearly 70% of gross national product.

Acknowledging IT-BPM’s role as a driver of economic activity, the central bank had conducted annual surveys from 2005 to 2013 in order to form a clearer profile of the sector.

The 2013 report noted that industry revenues increased 13.8% to $15.3 billion in 2013 from $13.5 billion the preceding year.

Total employment had increased by 10.6% to 851,782 in 2013, “maintaining a double-digit growth rate” from the preceding year. — Jenina P. Ibañez

PXP proposes integrated gas hub at Malampaya site

PXP Energy Corp. said on Tuesday that it had submitted an unsolicited proposal to the Department of Energy (DoE) for the “strategic development and utilization” of an integrated gas hub at the site of the Malampaya project when Service Contract (SC) No. 38 expires in 2024.

The upstream oil and gas company has also offered to acquire the 45% stake of Chevron Malampaya LLC in SC 38, which is located offshore northwest of Palawan.

“The project intends to ensure energy security to the country from indigenous natural gas resources for the next 25 years and beyond, while bringing in significant revenues to the Philippine government. The use of the Malampaya facilities as an integrated gas hub will also support the development of a robust indigenous gas industry,” PXP said in a statement to the Philippine Stock Exchange.

Under its proposal, the company envisions the Malampaya infrastructure and distribution network to support continued development of the oil discovery’s resources as well as the economic development of Sampaguita field and other nearby projects under SC 72, which is operated by PXP Energy through Forum (GSEC 101) Ltd.

PXP Energy said it submitted to the DoE on Nov. 11 its unsolicited proposal to take over the Malampaya facilities, which it described as strategically positioned in the West Philippine Sea.

The Malampaya deep water gas-to-power project is the first oil and gas platform designed and built in the Philippines. It fuels up to 30% of the country’s power needs and has contributed over $10 billion in government revenues. Shell Philippines Exploration B.V. (SPEx) operates the project on behalf of the SC 38 consortium.

The company said the benefits of the project are consistent with the DoE’s commitment to pursue national development through the twofold agenda of attaining energy independence and implementing power market reforms as contained in the Philippine Energy Plan. The project is also aligned with the department’s clean fuel strategy, including the reduction of dependence on coal, it added.

The company also sees the unsolicited proposal “to yield substantial foreign exchange savings resulting from the reduced importation of coal and other fuel supply.”

“In the meantime, PXP has expressed an interest to acquire the 45% ownership of Chevron Malampaya LLC in SC 38 through the right to match of the other SC 38 consortium members,” PXP Energy said.

SPEx also holds a 45% in SC 38, while state-led Philippine National Oil Co. Exploration Corp. has the remaining 10%.

PXP Energy’s unsolicited proposal came after SPEx said in September that it would again go to the DoE to discuss its plan to extend the SC 38 contract beyond 2024.

Kiril Caral, managing counsel of SPEx, had said that the existing service contract allows for a maximum of 15 years of extension. He said how much the DoE is willing to grant is a matter that has to be discussed with the agency.

He said the request letter was sent in late 2018 “informing the DoE that we expressed our interest in SC 38 to be extended.”

PXP interest in SC 38 came months after the deal calling for Dennis A. Uy to invest in the listed company fell through.

In April, PXP Energy said that the subscription agreement it had signed with the Davao City businessman’s Dennison Holdings Corp. had been terminated by the two parties effective on March 29, 2019. The deal was supposedly for P4.03 billion, or the issuance of 340 million shares for P11.85 each.

Mr. Uy’s Phoenix Petroleum Philippines, Inc. in October last year granted preferential rights to PXP to participate and acquire up to a 49% equity in the former’s liquefied natural gas project under subsidiary Tanglawan Philippine LNG Inc. That deal also fell through.

PXP directly and indirectly owns oil and gas exploration and production assets in the Philippines, and indirectly owns an exploration asset located in offshore Peru.

On Tuesday, its shares climbed 4.77% to close at P12.30 each. — Victor V. Saulon

Duterte presses Senate on higher alcohol, cigarette taxes

MALACAÑANG is pushing the Senate to approve a proposal to increase the excise tax on alcohol products, cigarettes, heated tobacco and vapor products by certifying “the necessity of the immediate enactment” of the measure concerned, Senate Bill No. 1074.

The certification was made through a Nov. 12 letter from President Rodrigo R. Duterte to Senate President Vicente C. Sotto III that was distributed to reporters on Tuesday.

The certification removes the three-day separation between second- and third-reading approval that is required by current rules on legislation, hence, such a bill can be approved in quick succession within a day.

In his letter, Mr. Duterte cited “the urgent need to generate additional revenue to support the effective implementation” of Republic Act No. 11223, or the Universal Health Care Act which he signed into law on Feb. 20, and which the Finance department estimates has a P63-billion funding gap in its first year of implementation.

The department projects that the Senate version will generate P47.9 billion in 2020 and a total of P356.9 billion over five years.

This is much higher than the revenue expected from the House version — House Bill No. 1026 that was approved on Aug. 20 — amounting to the P16.3 billion in 2020 and a total of P108.9 billion within five years.

SB 1074 proposes to increase the specific tax rate on distilled spirits to P90 per proof liter in 2020 from the current P23.40 and retain the ad valorem tax of 20% of the net retail price (NRP). The specific tax rate is set to increase by P10 until it reaches P120 in 2023.

Sparkling wines will be levied P600 per liter, while still wines and carbonated wines will be taxed at P43 per liter in 2020; with both increasing by 10% annually beginning 2021.

Tax imposed on wines currently vary by the net retail price (NRP) of a bottle or volume of alcohol content. At present, sparkling wines costing up to P500 and those costing more than P500 are levied P316.33 and P885.72, respectively.

Rates on still wines and carbonated wines are currently at P37.96 for bottles with up to 14% alcohol content and P75.92 for those with over 14% alcohol.

The Senate version also proposed to tax fermented liquor with P45 per liter in 2020; P55 in 2021; P65 in 2022; and P75 in 2023; from there, the rate will increase by 10% every year starting 2024.

The same rates will be imposed on alcopops, or “pre-mixed alcoholic beverages with alcohol content less than 10% alcohol by volume and which alcohol is from malt or wines or a distillation process.”

In comparison, HB 1026 proposed the following rates on distilled spirits: 22% ad valorem tax on NRP and a specific tax rate of P35 in 2020, which will increase by P5 every year until 2022; and by seven percent annually starting 2023.

An ad valorem tax of 15% on NRP and a P650 specific tax rate with a seven percent annual indexation will be imposed on sparkling wines.

Moreover, still and carbonated wines with up to 14% alcohol content will be charged P40 per liter, while those with more than 14% will be charged P80 per liter for those with more than 14% alcohol.

Rates for fermented liquors and alcopops will be increased to P32 per liter in 2020 from the current P25.42.

The same measure will also amend Republic Act No. 11346 — which was enacted last July 25 — by raising the excise tax on tobacco products to P60 per pack by 2023 from P35 currently, and introduce a P10 per pack rate on heated tobacco products in 2020.

It also introduced the following rates on vapor products: P10 for 10 milliliter vapor products, P20 for 20 ml, P30 for 30 ml, P40 for 40 ml, P50 for 50 ml and so on.

Both versions proposed to increase the rates on heated tobacco products to P45 per pack beginning 2020 to put them at par with regular tobacco products. This will increase by P5 annually until 2023.

The Senate version further proposed to increase rates on vapor products to P45 per 10 milliliter in January, whether they use nicotine salts or classic nicotine. The rate will increase by P5 per year until it reaches P60 in 2023.

This reform forms part of the administration’s comprehensive tax reform program, alongside measures that seek to reduce corporate income tax and streamline redundant fiscal incentives; centralize real property valuation and assessment; and simplify the tax structure for financial investments.

Aside from RA 11346, the government has so far passed Republic Act No. 10963, which slashed personal income tax rates and increased or added levies on several goods and services; and RA 11213, the Tax Amnesty Act, which grants estate tax amnesty and reprieve on delinquent accounts left unpaid even after being given final assessment. — G. M. Cortez

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