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3 Cebu water board members ask court to nullify termination order

THREE OF the five members of the Metropolitan Cebu Water District (MCWD) board who were terminated in October by Cebu City Mayor Edgardo C. Labella have asked a local court to nullify the dismissal order. The petition — filed on Oct. 8 by Ralph Sevilla, Augustus Pe, and Cecilia Adlawan — also seeks a temporary restraining order on the termination and the designation of interim members of the MCWD board as well as P1 million in moral damages. Named respondents in the case are Mr. Labella, Local Water Utilities Authority (LWUA) acting administrator Jeci A. Lapus and LWUA board members Roberto San Andres, Eileen dela Vega, and Christina Marcelina. “The facts of the case clearly demonstrates respondents’ malicious, brazen, and wanton disregard and violation of the constitutional rights of due process of the plaintiffs most especially the plaintiff members of the MCWD board of directors,” the 33-page petition reads. It cites Section 8-12 of Presidential Decree 198 or the Provincial Water Utilities Act of 1973. The three petitioners said LWUA and Mr. Labella violated the MCWD Charter, contending that there is nothing in LWUA’s Charter that authorizes it to take over, either partially or fully, the operations of a local water district like MCWD.

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The mayor, meanwhile, said he already expected the filing of the case and is ready to answer the charges in court. “Filing a case is one thing and proving it is another,” Mr. Labella said. “I will just prepare the necessary controverting evidence as part of the due process required… We are ready to answer them in the proper time,” he added. City Legal Officer Rey M. Gealon said the mayor can terminate the members of the board of directors of a local water district for causes as provided by law, like failing to meet the fit and proper standard as prescribed in Republic Act 10149, the Government-owned and Controlled Corporation Governance Act of 2011, or for loss of trust and confidence as provided in jurisprudence. “The law is on our side and we have nothing to fear,” Mr. Gealon said. — The Freeman

DoJ orders travel ban for Generoso murder suspects

JUSTICE SECRETARY Menardo I. Guevarra on Tuesday said he has ordered the prosecutor’s office to apply for a precautionary travel ban against the suspects in the killing of a broadcaster in Dumaguete City. The suspects who are not yet in the custody of authorities will be included in the precautionary hold departure order (PHDO). “All of the suspects who are still at-large (will be placed in the PHDO). I gave instructions to the (Office of the City Prosecutor) regarding PHDO yesterday, but the BI (Bureau of Immigration) was alerted last week pa,” Mr. Guevarra told reporters in a text message. Radio broadcaster Dindo Generoso was gunned down on his way to work on Nov. 7. Two suspects, identified as Glenn Corsame and Teddy Salaw, were arrested last week. Mr. Guevarra also said an immigration lookout bulletin order was issued for businessman Tomasino Aledro. The other suspect identified as the gunman is Roger Rubio, an active police officer. — Vann Marlo M. Villegas

1 soldier killed, 2 wounded in clash with BIFF

A SOLDIER died while two others were wounded in a clash with Bangsamoro Islamic Freedom Fighters (BIFF) in Mamasapano, Maguindanao on Nov. 9, the military reported late Monday. Two BIFF members were also killed and three wounded, according to the Western Mindanao Command (WestMinCom). The encounter took place in Barangay Tukanalipao while a combined team of military troops and Police Special Action Force were conducting a security operation on Saturday morning. Government forces are still in pursuit of the BIFF group in retreat. “We are saddened by the death of one of our gallant soldiers who paid the ultimate sacrifice to prevent the lawless elements from executing their terroristic activity in the area,” said Maj. Gen. Diosdado C. Carreon, commander of the Joint Task Force Central under WestMinCom. The BIFF, which has pledged allegiance to the Islamic State, is a breakaway group from the Moro Islamic Liberation Front that signed a peace deal with the government in 2014. The peace agreement is the cornerstone of the establishment of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) earlier this year. The new BARMM government is currently in a three-year transition period.

Malaysian investors eye Mindanao business opportunities in Nov. 19 visit



A 57-MEMBER delegation from Malaysian is visiting Davao City on Nov. 19–21 to explore business linkages and potential investments, Malaysian Trade Commissioner Siti Azlina said. In a statement, the Manila-based Ms. Azlina said the Malaysian External Trade Development Corp. (Matrade), the Malaysian trade promotion agency, is organizing the visit that will include business matching between the delegation, representing 38 companies, and local firms. “Given Mindanao’s strength in the agricultural sector and its abundance of natural resources, Malaysia would be interested to explore collaboration in this area and see where we can complement our manufacturing base,” said Ms. Azlina. Other sectors that will be looked into are food and beverage, personal and health care products, construction and building materials, information and communication technology, and logistics services. Ms. Azlina said the visit is part of Malaysia’s campaign to strengthen its position as a trade partner of the Philippines, especially with the links within the Brunei-Indonesia-Malaysia-Philippines-East ASEAN Growth Area. Malaysia was the country’s fourth biggest trading partner within the 10-member Association of Southeast Asian Nations (ASEAN) in 2018, with a trade value of $6.18 billion. — Carmelito Q. Francisco

Nationwide round-up

MPBL files game-fixing complaint vs Soccsksargen team

THE SEMI-PROFESSIONAL Maharlika Pilipinas Basketball League (MPBL) has filed a complaint against 21 individuals allegedly involved in game-fixing and other related schemes affecting the competition. An agent from the National Bureau of Investigation (NBI) told reporters the complaint is against the management and players of the Soccsksargen team. The respondents are facing 17 counts of betting and multiple counts of game-fixing and points shaving under Presidential Decree No. 483. In the complaint filed before the Department of Justice through the NBI, MPBL said the acts were committed for from July to October 2019. A full copy of the complaint was not released to reporters. Senator and boxer Emmanuel D. Pacquiao, founder of the league, suspended the Soccsksargen Marlins Team earlier this month over their alleged involvement in game-fixing. Team players who were named respondents in the complaint are Jake Diwa, Exequiel A. Biteng, Jerome E. Juanico, Matthew M. Bernabe, Julio A. Magbanua Jr., Abraham P. Santos, John Patrick C. Rabe, Ryan T. Regalado, and Ricky Morillo, along with team owner and player Kevin Espinosa. Other respondents are Sonny Uy, Serafin Matias, EJ Avila, Niño Dionisio, Ferdinand C. Melocoton, Nice Ilagan, Janus Lozada, and Joshua Alcober, and Chinese nationals Mr. Sung, Kein, and Emma. Those found guilty face imprisonment of a maximum of six years and a fine of P2,000. — Vann Marlo M. Villegas

Foreign direct investments in the Philippines (August 2019)

FOREIGN direct investment (FDI) inflows dropped year-on-year for the sixth month in a row in August, according to data which the Bangko Sentral ng Pilipinas (BSP) released on Monday. Read the full story.

Foreign direct investments in the Philippines (August 2019)

FDI net inflows fall for 6th month in Aug.

By Luz Wendy T. Noble

FOREIGN direct investment (FDI) inflows dropped year-on-year for the sixth month in a row in August, according to data which the Bangko Sentral ng Pilipinas (BSP) released on Monday.

Economists blamed generally weak investor sentiment abroad and persistent uncertainty as the government continues to overhaul tax incentives.

Foreign direct investments in the Philippines (August 2019)

The central bank reported that FDI net inflow sank by 45.1% to $416 million in August from $758 million a year ago and by 23.39% from July’s $543 million.

These inflows have been on a general decline since August last year, save for a year-on-year increase recorded in February.

The eight months to August saw these net inflows similarly drop 39.7% to $4.535 billion from $7.526 a year ago.

“The decline in FDI validates the view that this segment will remain a source of weakness for the country due to external uncertainties stemming mostly from the protracted US-China trade war, and to some extent rising protectionism amongst nations,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mailed reply to querries.

He also cited “uncertainty over the passage of local tax reform programs that may have caused investors to go on a holding pattern until there is clarity on developments, prospects and enforcement of said programs.”

In a note sent to reporters, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said: “These consecutive declines are seen to be the impact of the weak external environment.”

“Global trade has continued to reel from the protracted US-China trade war and has dampened investor sentiment, particularly that of emerging markets,” Mr. Asuncion said.

“Further hurting the general investment perception is the uncertainty brought by how certain fiscal reforms such as the CITIRA bill, particularly the rationalization of the current fiscal incentives and how it will come out in final form,” he added, referring to the proposed Corporate Income Tax and Incentives Rationalization Act.

“New investors and fresh investments are seen to be on hold, waiting for the eventual outcome of the discussions on the pending law.”

For Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort, “[s]ome investors have been on a wait-and-see attitude… while waiting for greater certainty on the proposed rationalization of fiscal incentives, as some global/multinational companies with presence around ASEAN/Asia even have the option to choose and locate in other ASEAN/Asian countries where production costs are lower and more predictable.”

The House of Representatives last September approved CITIRA, which will reduce the corporate income tax gradually to 20% from 30% currently — the steepest among major Asian economies — as well as overhaul investors’ fiscal incentives by making them more time-bound and tied to specific indicators of economic benefits they bring. The reform is now being discussed in the Senate.

August alone saw equity other than reinvestment of earnings was more than halved (55.3%) to $77 million from $172 million, as gross placements plummeted by 53.9% to $86 million from $187 million and withdrawals fell by a smaller 38% to $10 million from $16 million.

According to the BSP, equity capital placements that month came mainly from Japan, the United States, Hong Kong, Cayman Islands and Singapore and went mainly to manufacturing, real estate, financial and insurance, information and communication, as well as wholesale and retail industries.

Meanwhile, foreign firms’ investments in debt instruments of their Philippine affiliates dropped 50.8% to $263 million from $534 million.

On the other hand, reinvested earnings increased by 46% to $77 million from $53 million.

Looking at the uptrend in reinvested earnings despite the fall in other FDI segments, ING-NV Manila Senior Economist Nicholas Antonio T. Mapa said that “[t]he companies that have set up shop here in the Philippines continue to believe in the long-term viability of the Philippines as a market, while prospective investors may not be jumping head long into the Philippines, perhaps as they remain guarded while the CITIRA bill — and its implications on fiscal incentives — remains unpassed.”

YEAR-TO-DATE FLOWS
The eight months to August saw equity other than reinvested earnings drop 73.4% to $536 million from $2.017 billion in 2018’s counterpart period, as gross placements were almost halved (49.6%) to $1.114 billion from $2.212 billion while withdrawals grew nearly threefold to $578 million from $196 million.

The central bank said equity capital placements during the period came largely from Japan, the United States, Singapore, China, and South Korea and went to financial and insurance, real estate, manufacturing, transportation and storage, as well as administrative and support service.

FDI in debt instruments fell 32.5% to $3.327 billion from $4.928 billion.

On the other hand, reinvested earnings picked up by 15.6% to $671 million from $581 million in the same comparative eight-month periods.

For Mr. Roces, FDI net inflows could pick up “once the policy stance of the government has been communicated clearly” when it comes to tax reforms.

Mr. Ricafort said “[f]aster economic growth, especially starting September 2019, could lead to some pick up/improvement in FDIs as well in the remaining months of 2019, including those that benefit from increased government spending especially on infrastructure.”

Gross domestic product growth picked up to 6.2% in the third quarter from 5.6% and 5.5% seen in the first and second quarters, against a 6-7% official target.

2020 budget on track in the Senate

By Charmaine A. Tadalan
Reporter

THE PROPOSED P4.1-trillion national budget for 2020 is on track to enactment next month as the Senate on Monday began plenary deliberation on the spending plan, even as realignments flagged by Senator Panfilo M. Lacson pose some risk of prolonged discussions.

“Out of this amount, 15.4% will be devoted to expenditures related to operating and improving our communications, roads and other forms of transportation; 17.3% for education, culture and manpower development,” Senate Committee Chairman Juan Edgardo M. Angara said in his sponsorship speech on Monday.

Social security and welfare will get nine percent of the budget, while 4.8% will go to domestic security and 7.4% to public order and safety.

The Senate will be opening plenary sessions in the morning beginning Nov. 12 and will hold sessions until Thursdays.

First to be tackled on the floor are budget allocations for the National Economic and Development and Authority, Department of Finance and the Department of Budget and Management.

In its last version, Committee Report No. 18 allocated around P593.19 billion to education. Of this amount, P525.88 billion will go to the Department of Education (DepEd), while the remaining P67.31 billion will fund state universities and colleges (SUCs).

Mr. Angara noted that the 1987 Constitution provided that education should have the “highest budgetary priority.”

The DepEd budget is also P6.2 billion bigger than the P519.65 billion allocation proposed by the House of Representatives under House Bill No. 4228. Mr. Angara said this is intended to increase beneficiaries of Private Senior High School vouchers and extend reach of the Last Miles Schools Program.

Naglaan din tayo ng pondo para magkaroon ng (We also allocated funds for) cash grants… bilang (as) tuition fee subsidy para sa mga (for) medical students ng mga (of) SUCs na may (that offer) Doctor of Medicine program,” Mr. Angara added.

Major appropriations will also go to the Department of Public Works and Highways (P529.77 billion); Department of Interior and Local Government (P237.99 billion) Department of National Defense (P191.34 billion), Department of Social Welfare and Development (P158.41 billion) and the Department of Transportation (P126.86 billion).

Senate Majority Leader Juan Miguel F. Zubiri estimates that plenary action on the proposed 2020 national budget in the chamber will take two weeks to complete.

Then, both chambers of Congress will convene a bicameral conference committee (BCC) by the end of the month in order to harmonize their versions.

TROUBLE IN BICAMERAL TALKS?
It is in the bicameral committee that discussions could take some time, after Mr. Lacson has said that the House plans to make some P100 billion worth of realignments from the version submitted by Malacañang.

Kami committed na hindi ma-delay. Ang problema makakapag-delay nito pag-insist nila en toto ang P100B. Magtatagalan kami sa BCC pag-insist nila (We in the Senate are committed that budget enactment will not be delayed. But the House’s insistence on the P100-billion realignments could delay approval. BCC talks could take long if congressmen insist on that),” Mr. Lacson said in a Nov. 9 interview with dwIZ.

Mr. Lacson also reiterated his call to publicize the meeting of the bicameral conference committee for transparency.

This is in response to statements made by Speaker Alan Peter S. Cayetano that around P50-100 billion will need to be realigned. The House on Sept. 20 approved its version, under House Bill No. 4228, on final reading.

The bill had been certified as urgent by the Mr. Duterte, allowing the House to skip the three-day interval between the second- and third-reading.

The enactment of the P3.662-trillion spending plan for 2019 was delayed by almost four-months due to an impasse between the House and the Department of Budget and Management, and later with the Senate over post-ratification realignment.

That delay, plus a public works ban 45 days ahead of the May 13 midterm elections, left much of last semester with muted infrastructure work.

That, in turn, slowed gross domestic product growth to 5.5% last semester from 6.3% in 2018’s first half. A pickup to 6.2% growth in the third quarter pulled the year-to-date clip to 5.8% against a 6-7% target for 2019.

Lucio Tan, Jr., president of PAL Holdings, passes away

LUCIO K. Tan, Jr., the newly appointed president and chief operating officer of Philippine Airlines operator PAL Holdings, Inc., passed away on Monday at the age of 53.

He was the eldest child of taipan Lucio C. Tan, founder and chief executive of conglomerate LT Group, Inc. whose interests also include beverages, tobacco, property development and banking.

The younger Tan’s sister, Vivienne K. Tan, who is also a member of the PAL board, confirmed his death in a statement on Monday, saying: “It is with deep sorrow that I announce the passing of my brother, Lucio ‘Bong’ Tan, Jr. this morning, November 11, 2019. He was 53.”

News reports last Saturday said Mr. Tan was taken to Cardinal Santos Medical Center in San Juan City after he collapsed during a basketball game in Mandaluyong City.

Ms. Tan said: “His untimely passing leaves a big void in our hearts and our group’s management team which would be very hard to fill.”

Mr. Tan is survived by his wife Julie as well as sons Hun hun (Lucio Tan III) and Kyle Tan.

“Our sincerest thanks to all who offered prayers and shared words of comfort during this hour of grief. Our family continues to request everyone to respect our wish for privacy as we go through this very difficult time. We ask for your prayers for the eternal repose of his soul. Wake details will be announced soon,” Mr. Tan’s sister said further.

Mr. Tan took over the flag carrier’s helm on Oct. 28, following the resignation of Gilbert Gabriel F. Santa Maria.

According to the official Web site of his family’s holding firm LT Group, Inc. where he served as director before his death, Mr. Tan earned his bachelor’s degree in civil engineering from the University of California, Davis in 1991. He also went to Kellogg School of Management Northwestern University for his master’s degree in business administration.

Besides his roles at PAL and LT Group, Mr. Tan had also served president and director at Tanduay Distillers, Inc. and Eton Properties Philippines, Inc, as well as executive vice-president and director at Fortune Tobacco Corp.

He had also been director at AlliedBankers Insurance Corp.; Philippine Airlines, Inc.; Philippine National Bank; PAL Holdings, Inc.; MacroAsia Corp.; PMFTC Inc.; Lucky Travel Corp., Air Philippines Corp., Tanduay Brands International, Inc, Asian Alcohol Corp.; Absolut Distillers, Inc.; Asia Brewery, Inc.; Foremost Farms, Inc.; Himmel Industries, Inc.; Progressive Farms, Inc.; The Charter House, Inc.; Eton City, Inc.; Belton Communities, Inc.; FirstHomes, Inc.; REM Development Corp.; Grandspan Development Corp.; Dominium Realty & Construction Corp.; Manufacturing Services & Trade Corp.; Fortune Tobacco International Corp. and Shareholdings, Inc.

The sudden death of the younger Tan casts doubt over the leadership of the airlines-to-banking group, especially as he was seen as a potential successor to his father, said Rens V. Cruz, an analyst at Regina Capital Development Corp. His passing “will definitely add a layer of uncertainty,” Mr. Cruz said.

PAL shares ended Monday flat at P8 apiece after surging by as much as 6.88% to peak at P8.55 each earlier in the day.

Mr. Tan, who was an avid fan and supporter of basketball, collapsed while playing for the Philippine Airlines team during the Pinoyliga Cup finals at the Gatorade Hoops Center in Mandaluyong on Saturday.

Prior to his death, Mr. Tan took over the University of the East men’s basketball team as head coach prior to the start of the ongoing season of the University Athletic Association of the Philippines in September.

Together with consultant Lawrence Chongson, Mr. Tan helped the rebuilding Red Warriors to a 4-10 record before bowing out in the competition.

Despite missing the playoffs, the record of UE was three victories better than last season.

The coaching move was a further testament of the love and passion of Mr. Tan for the sport of basketball, which he engaged himself in on various capacities throughout the years.

In the mid-1990s Mr. Tan spearheaded the return of the Tanduay brand in the local basketball scene, putting up a team that competed in the Philippine Basketball League.

Tanduay then made its leap back to the Philippine Basketball Association, where it stayed from 1999-2001.

Last year, Mr. Tan and Tanduay came in as sponsors of the Batangas team in the fledgling Maharlika Pilipinas Basketball League. — Arjay L. Balinbin and Michael Angelo S. Murillo with input from Bloomberg

US asserts place in Indo Pacific amid China’s gains in the region

By Cathy Rose A. Garcia
Associate Editor

BANGKOK, THAILAND — The United States is moving to reassert its economic influence in the Indo-Pacific region, amid a long-drawn out trade war with China and as some countries, including the Philippines, have increasingly turned to their northern neighbor for investments to fund infrastructure projects.

“The Trump administration is extremely engaged in and fully committed to this region. Two-way trade between the US and the Indo-Pacific increased by almost six percent last year to a record $2 trillion… It far surpasses US bilateral trade with Europe $1.5 trillion, and bilateral trade with South and Central America, $1.2 trillion,” US Commerce Secretary Wilbur Ross said during his keynote address at the Indo-Pacific Business Forum here on Nov. 4.

Despite trade tensions denting economic growth in the region, Mr. Ross noted that the United States is the largest source of foreign direct investments (FDI) in the region, which stood at $866 billion as of end-2018. To compare, he said China’s FDI into the region reached $504 billion, “of which $381 billion went to Hong Kong, $123 billion for the rest.”

“Now I have thrown a large amount of numbers at you today and there’s a reason for that. They prove our deep and continuing commitment to the region. As you gather again in future years, our numbers will only get bigger,” Mr. Ross added.

The Trump administration has been pursuing its Indo-Pacific strategy, which is widely seen as the United States’ effort to counter China’s growing influence and expanding investments in the region.

In the Free and Open Indo-Pacific: Advancing a Shared Vision report released on Nov. 4, the US State Department detailed the Trump administration’s efforts to strengthen its partnerships with countries such as India, Australia, Philippines and other members of the Association of Southeast Asian Nations (ASEAN).

“Under President Trump’s leadership, the United States is implementing a whole-of-government strategy to champion the values that have served the Indo-Pacific so well: (1) respect for sovereignty and independence of all nations; (2) peaceful resolution of disputes; (3) free, fair, and reciprocal trade based on open investment, transparent agreements, and connectivity; and (4) adherence to international law, including freedom of navigation and overflight,” the report read.

PRIVATE SECTOR TO LEAD THE WAY
At Indo-Pacific Business forum, US government officials made a pitch for “sustainable” private sector-led investments in the region, particularly in infrastructure that is “physically secure, financially viable and socially responsible.”

“(This) is a premiere event which is a whole-of-government effort to unlock private sector-led growth in the region, which is vital to our and the world’s economic health. Our goal is to highlight the benefits of partnering with a dynamic US private sector, and the critical role of market-based economic system, private sector finance and open investment environments in driving the region’s success,” Alice Wells, acting assistant secretary for South and Central Asia at the US Department of State, said at a press briefing on the sidelines of the forum.

Unlike China whose state-owned companies invest in infrastructure projects around the region, Ms. Wells said the US does business through the private sector.

“I don’t walk into the room with a pair of state-owned companies and a financing package. We introduce the leading, most modern, competitive, technologically-advanced firms in the region, and when they see an opportunity in a free market to make an investment that would provide returns, so the private sector model is going to deliver infrastructure that makes sense, makes dollars and sense for everyone involved,” she said.

The Indo-Pacific region requires significant investments for the development of infrastructure, which the World Bank estimated at up to $50 trillion by 2040. The International Energy Agency projected that the Indo-Pacific region will require more than $1 trillion in annual energy infrastructure investments.

“The Indo-Pacific region requires quality infrastructure to support and sustain its dynamic economic growth,” Thomas R. Hardy, acting director of the US Trade and Development Agency, said.

However, many countries, including the Philippines, have turned to China to help finance massive infrastructure projects such as ports, bridges and railways under the Belt and Road Initiative (BRI).

US PRESSES ALTERNATIVES TO CHINA
US Agency for International Development (USAID) Deputy Administrator Bonnie Glick expressed some concern about Indo-Pacific countries’ cooperation with China under BRI.

“It’s not that we’re saying don’t engage with China at all. What we’re saying is there are options out there. One of the things that happen when countries go down that One Belt, One Road is that they lose sight of the fact that there are other options out there,” Ms. Glick said in a separate press briefing.

“Transparency in all procurements is the best way to ensure the maintenance of a nation’s own sovereignty and that a nation maintains control of the development of its own projects… We’re not saying there is only one solution. We’re saying that there are always multiple solutions,” she added.

In the Free and Open Indo-Pacific report, the US Department of State said its “economic engagement seeks to equip states to resist coercive economic practices, unsustainable debt burdens and other dangers.”

On digital economy, the US State Department urged all countries to “take a risk-based approach to evaluating technology vendors, including those that night be subject to control by or the undue influence of foreign powers.”

And in an effort to distinguish infrastructure projects, the United States, Japan and Australia launched the Blue Dot Initiative, which will certify high-quality infrastructure. However, details on these “shared” standards of global infrastructure development were sparse.

‘GREAT ALLY’
Since the start of his term, President Rodrigo R. Duterte has sought to deepen ties with China, as he hopes to secure billions of dollars of investments and official development assistance for his P8-trillion Build, Build, Build infrastructure development program.

He touted his “separation” from Washington during his October 2016 visit to Beijing.

Amid the Philippines’ pivot towards to China, US Department of State Acting Undersecretary Keith Krach said the United States remains fully committed to its long-time ally in the region.

“The Philippines has always been a great ally and a friend… It hasn’t fallen off any priorities, and now more than ever, you can see that in our private sector… There’s so much opportunity there. You are rest assured the Philippines has not fallen down any priority list,” Mr. Krach said during a press briefing at the sidelines of the Indo-Pacific Business Forum.

However, the Philippines was noticeably not included in Mr. Ross’ itinerary, as he led a delegation of top executives from Boeing, Tesla, Honeywell International, Lockheed Martin and Qualcomm to Thailand, Vietnam and Indonesia.

In 2018, FDI net inflows to the Philippines fell 4.5% to $9.8 billion. Of the $2.3 billion in equity capital investment, placements from the US slumped 66% to $160 million from $472.9 million in 2017.

“When I speak to representatives of American companies in this region, what they’re looking for is transparency, predictability, understanding of government’s long-term plans in terms of infrastructure,” Ms. Wells said when asked what the Philippines can do to boost its attractiveness to US investors.

Ms. Wells noted US investors take note of a country’s ranking in the World Bank’s (WB) Ease of Doing Business (EODB) survey, Freedom House’s Freedom in the World, and other surveys.

In the WB Doing Business 2020 report, the Philippines’ ranking rose to 95th place out of 190 economies, from 124th last year. It ranked 11th among 25 countries in East Asia and the Pacific.

The Philippines fell eight notches to 64th out of 141 economies in the World Economic Forum’s Global Competitiveness Report 2019.

Freedom House gave the Philippines an aggregate freedom score of 61/100, or “partly free” for 2018, noting “rule of law and application of justice are haphazard and heavily favor ruling elites.”

“(Companies look at) the rule of law, regulatory environment, transparency, ease of doing business… Fundamentally, it’s about governance. For the United States, because our model is one led by the private sector, we don’t force companies to invest in countries… The company has to be attracted to the potential that exists. It doesn’t mean that companies won’t take risks, they do, companies are motivated by the opportunity to generate profits and ultimately, it’s that profit motive and bottom line that brings the most efficient and technologically advanced businesses to the Philippines and elsewhere,” US State Department’s Ms. Wells said.

American Chamber of Commerce of the Philippines, Inc. Senior Adviser John D. Forbes, said that while the Philippines “has been attracting more US investment in recent years”, improvements are needed.

“The things that can be improved in order to attract more FDI are public knowledge from the multiple global rankings made by GCI (Global Competitiveness Index), IMD (International Institute for Management Development), WB, and WEF (World Economic Forum). Aside from the excessive red tape, which we expect the EODB and ARTA (Anti-Red Tape Authority) will reduce, there is much-increased spending on needed infrastructure,” he said in a mobile phone message.

“We hope more power and water capacity can be built soon to avoid shortages and broadband greatly improved. President Duterte is asking to further open the economy to encourage more FDI with amendments to FIA (Foreign Investments Act), and Retail Trade laws and even foreign equity provisions of the Constitution. We are always optimistic about the future prospects for the hard-working and talented Filipino people.”

ALI’s pocket urban development to help transform Novaliches

IT may be difficult to imagine an Ayala Land, Inc. (ALI) estate in the middle of Novaliches, Quezon City.

But the property giant is developing The Junction Place, an 11-hectare property (formerly the site of RubberWorld factory), into a “pocket urban development” that is expected to have a transformative effect on the very dense area.

Stephen S. Comia, senior division manager for ALI’s strategic landbank management group, said the Novaliches area has a population of about 400,000 or roughly 15% of Quezon City’s total population.

“We see there’s an opportunity to be part of a highly urbanized development in the area. There’s a lot of business communities, large working middle-class communities, hospitals and schools in the area… The area is very congested in terms of traffic… At 11 hectares, it’s really not large, but for us it’s enough to create a big impact,” he said during a press briefing in Makati City on Oct. 30.

Manuel A. Blas II, ALI strategic landbank management group vice president, said they expect that the impact of The Junction in the very crowded neighborhood would be significant.

“It’s so dense, you couldn’t see what could be transformed here. But that’s what we will be able to do… We can gentrify the neighborhood, and they can feel something changed when The Junction came,” Mr. Blas said.

Mr. Comia noted that The Junction Place represents a new estate product for ALI, as it is a relatively smaller estate in a populated urban location.

“This is a pocket urban development showcasing all the experience and learnings of Ayala Land as the pioneer in estate development. We’re creating a comfortable, safe, organized and refreshing new neighborhood that will connect people to other hubs in Quezon City and beyond,” he said.

The Junction Place is located between two very busy thoroughfares — Tandang Sora Avenue and Quirino Highway. ALI officials said they are addressing the traffic congestion in the area by building a spine road through the property. The Junction Place Boulevard is expected to be opened by 2020.

Also, the estate will have its own transport terminal that will connect to other parts of Quezon City and Metro Manila. It is also located near two planned stations of the Metro Manila Subway System — Quirino and Tandang Sora Stations.

ALI is ramping up the development of Phase 1 of The Junction Place, which will include a Waltermart Mall, retail strip, a residential project by Amaia Land, roads, public open spaces and the transit hub.

“Waltermart will be located on the side of Quirino. They will be constructing a mall with 5,000 sq.m. of leasable space. We partnered with them because it fits the market of the area… Construction is to start in December,” Mr. Comia said.

“We are developing our own community center in the heart of the estate. It will have green public spaces, retail, dining and service options, activity nodes for community events,” he added.

The Amaia Land residential project is expected to be launched within the year while the Waltermart Mall is targeted to open by 2021 and the retail strip by 2022.

ALI also envisions The Junction Place as a platform for homegrown, small and medium enterprises. It sold out seven commercial lots covering 8,000 square meters for P500 million. — Cathy Rose A. Garcia

Maynilad breaks ground on P10-B sewage treatment plant

MAYNILAD Water Services, Inc. on Monday has broken ground on a P10.5-billion sewage treatment plant that is set to become the company’s largest in terms of capacity as it will be able to treat about 205 million liters of wastewater per day.

The plant, called the CAMANA (Caloocan-Malabon-Navotas) Water Reclamation Facility, is expected to help clean the waterways flowing to Manila Bay while improving the sanitation conditions in three cities.

“The completion of our CAMANA treatment facility will increase Maynilad’s sewerage coverage to 47%, up from only 6% in 2006 before Maynilad was reprivatized,” said Maynilad President and Chief Executive Officer Ramoncito S. Fernandez in a statement.

The facility will treat wastewater generated by some 1.2 million Maynilad customers in south Caloocan, Malabon, and Navotas. It will be built on a 16-hectare lot along Dagat-dagatan Ave. Ext. in Brgy. Maypajo, Caloocan City.

“As in previous implementations of our wastewater projects, we ask for the support of the local government units and communities so that we can facilitate completion and mitigate the impact on traffic of our activities,” Mr. Fernandez said.

To catch wastewater from households and establishments in the covered cities, Maynilad will also lay about 85 kilometers of accompanying sewer lines leading to the treatment facility.

Maynilad said the CAMANA facility will use advanced Modified Ludzack Ettinger (MLE)-Conventional Activated Sludge technology to remove pollutants from wastewater before its discharge to the Maypajo creek, then to Manila Bay.

The sewage treatment plant is designed to comply with the stringent standards mandated by the Department of Environment and Natural Resources under the water quality guidelines and general effluent standards of 2016.

The company said the facility is part of its P200-billion wastewater investment plan from 2019 to 2037 that will involve the construction of 26 new STPs and the installation of about 425 kilometers of new sewer lines.

Along with the facility, Maynilad is also building other sewage treatment plants in Valenzuela, Las Piñas City, and Tunasan and Cupang in Muntinlupa.

Maynilad, the largest private water concessionaire in the Philippines in terms of customer base, operates and maintains 22 wastewater facilities with a combined treatment capacity of about 663,000 cubic meters of wastewater per day.

Maynilad and Manila Water Company earlier filed a motion for consideration on the Supreme Court decision to impose a P921- million fine on the two companies for failing to connect all existing sewage lines to the available sewerage system within five years from the effectivity of the Clean Water Act, or from May 6, 2004.

Maynilad serves the cities of Manila, except portions of San Andres and Sta. Ana. It also covers Quezon City west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the districts of the Holy Spirit and Batasan Hills.

Down south, it serves Makati west of South Super Highway, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; and the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.

Metro Pacific Investments Corp. (MPIC) has a 52.8% stake in Maynilad. MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. — Victor V. Saulon