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Finance dep’t touts CREATE bill’s role in attracting investment for renewable energy

FINANCE SECRETARY Carlos G. Dominguez III said incentives offered in pending tax reform legislation could facilitate the attraction of investment in clean energy projects, which will go hand-in-hand with the government’s recent ban on new coal-fired power plants.

Mr. Dominguez expressed his support last week for the Energy department’s plan to reduce the Philippines’ reliance on coal as a source of energy and adopt more renewable sources.

“This, in conjunction with CREATE’s performance-based fiscal incentives, will steer private capital towards new investments in renewable energy,” Mr. Dominguez told reporters on Monday via Viber.

He was referring to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill, which aims to lower the corporate income tax rate to 25% this year from 30% currently, while reforming the incentives regime by making them more performance-based and time-bound.

The bill forms part of the government’s economic recovery program but is currently pending at the Senate.

Mr. Dominguez said the measure has several provisions that give “generous and performance-based” tax incentives to investments under the Strategic Investment Priorities Plan, which will soon include the renewable energy sector. The sector’s existing incentives will be retained even after the measure is approved.

He said companies involved in renewable energy would also benefit from the measure as it offers income tax deductions for research and development.

“The enhanced deduction is designed to boost innovation, such as efficient power generation and improved battery technology,” he said.

Deductions for training could also be employed to create green, high-skilled jobs, he said.

Finance Assistant Secretary Maria Teresa S. Habitan said in a Viber message that the bill offers double deductions against gross income for investment in research and development as well as in training.

The Philippines is among the most disaster-prone countries in the world, according to the 2020 World Risk Index.

Last week, the Energy department imposed a moratorium on new coal-fired power projects and allowed foreign investors to take 100% ownership in geothermal projects.

Energy Secretary Alfonso G. Cusi said the shift will facilitate more investment in sustainable power production and make the power mix flexible.

The department is currently reviewing the Philippine Energy Plan for the next two decades. — Beatrice M. Laforga

PHL, Indonesia seen as ASEAN’s COVID recovery laggards

THE ASEAN region is seeing some pockets of recovery but the overall picture is mixed with the Philippines and Indonesia the clear laggards in the region, according to Maybank Kim Eng.

The development of a vaccine will help close the gap with other countries that have more successfully contained the virus, it added.

“It was more of a struggle to uncover the ‘V’s in the Philippines and Indonesia, the two ASEAN countries which have yet to flatten the pandemic curve,” Maybank Kim Eng said in a report, referring to the phenomenon of V-shaped recoveries.

In the region, Singapore and Vietnam experienced V-shaped recoveries, it said, with Vietnam the region’s outlier in avoiding a recession this year, and its exports already above pre-pandemic levels.

The Philippine economy contracted by a record 16.5% in the second quarter, which included the weeks when the lockdown was strictest. The government is projecting a less drastic contraction in the third quarter and projects gross domestic product to contract between 4.5% and 6.6% in 2020.

“A vaccine will help improve domestic mobility and ease strict lockdowns and social distancing rules, a shift that will make a significant difference to the larger pandemic-hit domestic economies, particularly the Philippines and Indonesia,” Maybank Kim Eng said.

Maybank Kim Eng said power demand in the Philippines was among the “surprising sharp V rebounds” even with many offices still shut. In September, power demand grew 2.1% year on year coming from the 3.3% contraction seen in August.

The country was also experiencing a “weak V” recovery in remittance inflows as economies hosting overseas workers reopened, Maybank Kim Eng said.

Cash remittances from overseas Filipino workers (OFWs) rebounded to positive year-on-year growth in June and July after sharp declines between March and May. They declined 4.1% to $2.483 billion in August due to weak inflows from the Middle East and Japan.

“Our Chief Economist… thinks that the outlook for overseas workers remittances will likely stay challenging in the near term, especially with the recent new waves of infections that are triggering countries to re-impose restrictions and partial lockdowns,” Maybank Kim Eng said.

Cash remittances to the Philippines declined 2.6% to $19.285 billion in the first eight months. The central bank expects inflows to drop by 2% this year.

The US, which is the largest remittance source for the Philippines, is the world leader in COVID cases, while Europe is currently experiencing a second wave.

More than 231,000 OFWs have been repatriated as of Oct. 25, according to the Department of Foreign Affairs. The government expects about 300,000 OFWs to be brought home by the end of 2020. — Luz Wendy T. Noble

Climate projects offered as path to unlocking investment

CLIMATE CHANGE mitigation projects will help attract foreign investment, starting with government-backed attempts to upgrade facilities to international standards, experts said.

The main driver is the Philippines’ need to invest more in climate change and green growth strategies, International Monetary Fund Representative to the Philippines Yongzheng Yang said in a online business conference Friday.

“We all know the country is very vulnerable to climate change, natural disasters so investing more in this area is a good policy, is a good way forward,” he said.

Officials have proposed a climate emergency to expedite such measures, as did Environment Secretary Roy A. Cimatu last month, due to the loss of billions every year to typhoons and other disasters.

Environmental NGOs have been asking the government to make this declaration to prioritize climate measures in policymaking and to hold fossil fuel companies accountable.

Compliance with international environmental standards is a key draw for international investors and will help unlock financing, Organisation for Economic Co-operation and Development Policy Advisor Stephanie Venuti said at the same conference.

“These standards are backed by governments internationally so they’re understood by a number of trading partners. They’re understood by a number of international businesses. So in demonstrating implementation of these standards, that is an opportunity to attract investment and open up international market opportunities,” she said.

“They are embodied or embedded into international trade agreements.”

Governments can develop policy and businesses can start preparing, she said, ahead of international trends that could require responsible business conduct.

The European Commissioner for Justice, Didier Reynders, announced in April that the commission is developing rules for mandatory environmental and human rights due diligence for companies. The commission’s studies found gaps in the implementation of environmental and human rights standards despite the current practice of voluntary compliance.

“(Environmental compliance is) also a way to demonstrate resilience of your business operations and your supply chains, which as we know that’s the key,” Ms. Venuti said. — Jenina P. Ibañez

EU, PHL trade meetings to resume soon

ECONOMIC COOPERATION and trade meetings between the Philippines and the European Union (EU) are set to continue before year’s end, the EU delegation said.

“We are happy to announce that these subcommittees will take place before the end of the year, obviously in virtual, remote (setting),” First Counsellor of the EU Delegation to the Philippines Rafael de Bustamante said.

Under the EU-Philippines Partnership Cooperation Agreement, the two sides created three subcommittees: development cooperation, trade, investment and economic cooperation, and good governance, rule of law and human rights.

The two sides at the first meeting reviewed their cooperation arrangements, and explored opportunities in security, the economy, human rights, sustainable development goals, environment, natural resources, and climate change, the European Commission said.

Noting trade growth in recent years, Mr. Bustamante said bilateral trade is “far from its full potential.”

“It does not help too that the trade between the EU and the Philippines in the first nine months of 2020 has declined by more than 20%” he said. “There is indeed ample margin to do more and also to recover the ground lost during the pandemic.”

He added that in terms of investment, the EU continues to view the Philippines as a large and fast-growing market.

“However, the Philippines (has not succeeded) in mobilizing European traders and investors in line with the size and potentiality of the Philippine market.”

The Philippines only attracts around 4% of total EU foreign direct investment in ASEAN each year, he said, but added that the Philippines take advantage of some programs.

The Philippines, he noted, did not impose trade barriers during the crisis, creating a “favorable business climate” that can help attract investors.

The Philippines also has trade perks that give many of its products duty-free access to the EU market, he added. The European Parliament had recently voted to ask the European Commission to revoke the country’s Generalized Scheme of Preferences Plus (GSP+) due to human rights concerns.

“We look forward to continue a fruitful collaboration with the Philippines for the correct implementation of GSP+ in the years to come, especially in respect of human rights conventions subscribed to by the Philippines,” Mr. Bustamante said.

The European Commission is expected to increase its focus on Southeast Asia after Germany took over the commission’s top post, German Ambassador to the Philippines Anke Reiffenstuel said in February. She said that the commission is interested in the Philippines’ infrastructure program, as well as connectivity between Europe and Southeast Asia. — Jenina P. Ibañez

Building approvals flat in 2019

CONSTRUCTION starts as measured by building permit approvals declined slightly in 2019, the Philippine Statistics Authority reported in its final estimates for the indicator.

Building approvals declined 0.02% in 2019 to 173,162. The retreat in the number of approvals reverses the 13.9% rise posted in 2018.

Approved projects involved 41.6 million square meters (sq.m.) of floor space, up 1.2%, valued at P491.8 billion, up 3.3%.

Permits for residential projects, which made up 71.8% of the total approved building permits last year, declined by 1.7% to 124,275. These projects were valued at P225.8 billion with a floor area of 20.01 million sq.m.

Single-detached homes accounted for 105,595 permits, followed by apartments at 14,501, duplexes and quadruplexes 3,784, condominiums 177, and other residential projects 218.

Non-residential project approvals rose 9.3% to 26,649, worth P233.2 billion and involving a floor area of 20.9 million sq.m.

Within the category were permits for 16,251 commercial buildings, 5,887 institutional buildings, 2,649 industrial buildings, 1,179 agricultural buildings, and 683 “other non-residential” buildings.

Permits for additions to existing structures numbered 6,166 in 2019, while those for alterations and repairs of existing structures numbered 16,072.

Region IV-A (CALABARZON) topped the regions with 42,762 in approved construction permits. Region VII (Central Visayas) and Region III (Central Luzon) followed with 19,828 and 18,965 permits, respectively.

By value, Metro Manila had projects amounting to P158.1 billion, followed by CALABARZON with P77.4 billion and Central Visayas P52.3 billion. Together, these three regions accounted for 58.5% of construction value last year.

“It seems counterintuitive given that in 2019, ‘Build, Build, Build’ was ongoing, reinforcing private construction,” Asian Institute of Management Economist John Paolo R. Rivera said in an e-mail, referring to the government’s infrastructure program.

“This decline (may be attributed) to… delays in executing contracts, supply chain constraints in sourcing construction materials both locally and internationally, logistical challenges, business disruptions, and a sign of deteriorating business and consumer sentiment not just in the country, but also in our neighboring countries and across the world,” he added.

The construction sector’s gross value added grew by 7.8% in 2019, exceeding the Philippines’ gross domestic product growth of six percent that year. The sector’s growth last year, however, was lower than the 14.3% posted in 2018.

Mr. Rivera expects “slow to moderate” recovery in construction statistics this year, but that this would depend on how soon the pandemic is contained.

“I do not see a quick recovery for construction because given the financial constraints, funds may be reallocated from construction/infrastructure spending to more immediate or pertinent concerns such as consumption, bail-out subsidies, or recovery expenditures,” Mr. Rivera said.

“However, the construction sector will certainly bounce back in 2021, if the Philippines can contain the pandemic and fully bootstrap the economy’s other sectors.” — Michelle Anne P. Soliman

Relief for resilient taxpayers

Someone once said, “Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine.”

Never give up. Ever since COVID-19 broke out, no day has been easy. The lockdown and quarantine caused job losses and disrupted what we consider normal.

The pandemic has dominated headlines for the past 10 months.  Unfortunately, there are other challenges apart from this crisis. As I write this, super typhoon Goni (Philippine name: Rolly) is hammering southeastern Luzon with strong winds, high waves and floods. This is another blow to the already troubled economy.

With all these challenges, businesses are certainly adversely affected, and taxpayers are definitely asking about tax relief and measures to help them on the road to recovery. Currently, taxpayers can get some form of relief from the following: (1) Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II), (2) Voluntary Assessment and Payment Program (VAPP), and (3) Tax Amnesty Program on delinquencies.

BAYANIHAN II
There has been a lot of discussion on relief measures, including the extension of the net operating loss carryover over the next five years, tax exemptions for certain donations, tax exemptions for retirement benefits, COVID-19 special risk allowances, compensation and hazard pay, among others.

In relation to Bayanihan II tax relief, the Bureau of Internal Revenue has issued revenue regulations (RR) 24-2020, 25-2020, 26-2020, 27-2020, 28-2020, and 29-2020.  These BIR issuances provide the conditions and requirements needed in order for the taxpayers to avail of the exemptions from taxes, thereby aiding their recovery if only in part.

VAPP
Under this program, the impression is this was launched to maximize and promote the government’s revenue collections. Taxpayers are encouraged to make voluntary payment of additional tax due covering the taxable year ended Dec. 31, 2018 and fiscal year 2018 ending on the last day of the months of July 2018 to June 2019, including certain covered one-time transactions. The BIR issued Revenue Memorandum Circular 111-2020 to clarify certain issues relating to the VAPP application.

However, viewed in another way, taxpayers may want to have another look at the program to see whether the program actually benefits them. The main benefit of the program is the privilege of taxpayers availing of VAPP to be exempted from audit for the covered taxable period and for the tax types covered by the availment.  Consequently, the program would save taxpayers the bother of a full-blown tax assessment, which has the potential to reach the courts.

Comparing the benefits of the program with the costs of availing, some companies may find some form of relief to their advantage.  At least, if the tax assessment process is taken out, even for just one taxable year, a company focuses more on its business operations and recovery strategies.

It should also be noted that the deadline for availing of the VAPP is on Dec. 31, 2020 unless extended by the Secretary of Finance.

TAX AMNESTY PROGRAM ON DELINQUENCIES
This amnesty program was issued by the BIR last year, and its availment was extended until Dec. 31, 2020. It provides for the processing of the tax amnesty application on delinquent accounts as defined in Republic Act 11213, covering the taxable years ended 2017 and earlier.

As in the case of VAAP, the taxpayer may consider weighing the costs and benefits of availing of the tax amnesty program. The idea is for the taxpayers to get some things out of the way, in order to have more time to spend on the core business.

These programs remind taxpayers that there is always some form of relief available during these challenging times.

As COVID-19 cases continue to rise, aggravated by a recent calamity, it is good to know that the government is responding and that each of us is showing resilience. It is never easy, but we get stronger despite the crisis.

The taxpayer wish list, perhaps, includes asking the government to broaden the tax relief to ease their burden and to help them effect a speedy recovery. Congress is currently considering a general tax amnesty law to support the government’s finances.  Hopefully, this proposal and other tax measures happen very soon, as we need swift action in these difficult times. The government and each of us need to work together to recover. Resilience is an important part of growth and change.  This is our new reality and we can fight.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Maricel P. Katigbak is a senior manager of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

At least 16 people die as Goni pummels eastern Philippines

AT LEAST 16 people died and three more went missing after the world’s strongest typhoon this year battered the Bicol region in eastern Philippines and several other provinces on Luzon island, according to the Office of Civil Defense.

About 373,000 families or 1.5 million people were affected in five regions, while half-a-million people in eight regions were forced to flee to avoid the path of Goni, a super typhoon that weakened after making two landfalls in Bicol on Sunday morning, the local disaster agency said in a report on Monday.

Storm signals were lifted on Monday morning as Goni, locally named Rolly, continued to move away from the Philippines. The state weather bureau said the typhoon was expected to leave the country on Tuesday morning.

About 20 typhoons hit the Philippines from the Pacific Ocean each year. In November 2013, Typhoon Haiyan (Yolanda) struck central Philippines, killing more than 7,000 and forcing more than 5 million people to flee after wiping out entire villages.

Goni packed maximum sustained winds of 215 kilometers per hour (kph) near the center and gusts reaching 295 kph, the weather bureau said on Sunday.

It first made landfall in Bato, Catanduanes early Sunday morning before heading toward Tiwi, Albay. It made a third landfall in San Narciso, Quezon province at noon.

The typhoon damaged 19 road sections and four bridges in five regions after it caused heavy flooding and landslides uprooted trees and power utility posts. Fifteen of the roads and all bridges were still not passable, the Civil Defense office said.

It said 147 cities and municipalities in Bicol, Calabarzon, Mimaropa and Eastern Visayas had experienced power interruptions and failures.

Bacman geothermal power plant units 1 and 3 were put on emergency shutdown earlier as a preemptive measure, while unit 2 was put on house load, the disaster agency said.

Ilijan plant was shut down on Nov. 1 as a contingency measure  to avoid damage, while SLPGC 1 was put on emergency shutdown on Oct. 31 due to boiler tube lead, it added.

Before Goni hit land, the Public Works department placed 777 heavy equipment vehicles, 518 tools and 4,931 workers in areas that were likely to be hit. Public Works Secretary Mark A. Villar told an online news briefing on Monday.

The roads that were not passable in the Cordillera Administrative Region included the Claveria-Calanasan-Kabugao road and Apayao-Ilocos Norte road, after the soil collapsed.

In Central Luzon, the Sto. Tomas-Minalin-Macabebe Road and Nueva Ecija-Aurora road remained closed to traffic because of flooding and mudslides. The Catanauan-Buenavista road in Calabarzon remained closed after several trees fell.

Road sections in the Bicol region that were closed to traffic were the Legazpi-Sto. Domingo-Tabaco-Tiwi-Camariñes Sur boundary road; Tabaco Wharf road 1 and 2; Daang Maharlika in Polangui, Albay; Daang Maharlika in Sipocot, Camariñes Sur; and Naga City-Carolina-Panicuasson road.

Also closed were the Manguiring-Sibobo-Cagsao Cabanbanan road; Milaor-Minalabac-Pili road; Lagonoy-Caramoan road; Goa-Tinambak road; San Rafael-Mampirao road; Daang Maharlika Nabua-Poblacion section; Baao-Iriga City-Nabua road; and Iriga City proper and Donsol-Banuang Gurang road. — Norman P. Aquino and Kyle Aristophere T. Atienza

COVID-19 infections top 385,00 as death toll reaches 7,269

THE DEPARTMENT of Health (DoH) reported 2,298 coronavirus infections on Monday, bringing the total to 385,400.

The death toll rose by 32 to 7,269, while recoveries increased by 87 to 348,830, it said in a bulletin.

There were 29,301 active cases, 82.5% of which were mild, 9.6% did not show symptoms, 2.8% were severe and 5% were critical.

Benguet reported the highest number of new cases at 188, followed by Davao City at 166, Rizal at 119, Quezon City at 116 and Bulacan at 91.

DoH said 11 duplicates had been removed from the tally, while 13 cases tagged as recovered were reclassified as deaths. It said 14 laboratories had failed to submit their data on Nov. 1.

There were 1,900 available beds in intensive care units, 13,500 isolation beds, 5,900 ward beds and 2,000 ventilators, it added.

Meanwhile, Health Undersecretary Maria Rosario S. Vergeire said they have received the initial results of the pilot study for the SD Biosensor antigen testing for COVID-19  in Baguio City.

The results would be compared with tests done through reverse polymerase chain reaction (RT-PCR) to complete the study, she added.

Results from antigen tests come out faster at four to six hours compared with up to three days for the RT-PCR test.

Meanwhile, 155 coronavirus patients and 169 health personnel from five temporary treatment centers in Pasig City, Quezon City and Manila City were transferred to hotels before the typhoon, DoH said.

Makati, Pasay and Las Piñas also transferred patients to hotels and hospitals from their treatment centers, Health Director Gloria J. Balboa told an online news briefing.

Patients in quarantine facilities in Albay province were also transferred to public schools and evacuation centers, she said. — Charmaine A. Tadalan

Typhoon Goni boosts Metro Manila’s water supply until yearend

METRO Manila’s water supply will be enough for the rest of the year after rains brought by Typhoon Rolly, according to the state weather bureau.

The water level of Angat Dam, the capital region’s main water source, had risen by 1.11 meters to 201.78 meters as of Monday morning, it said.

The dam’s normal level is at 210 meters, while its minimum operating elevation is at 180 meters.

“We are seeing sufficient water supply for this year until next year particularly during the summer months,” Sevillo D. David, Jr., executive director of the National Water Resources Board, said in a mobile phone message.

“Rainfall projections of near normal to above normal could result in further improvement of the dams, particularly Angat Dam,” he added.

He said there was no need yet to increase the water allocation of Metro Manila to 48 cubic meters per second despite the recent improvements in Angat Dam’s elevation.

As of Monday morning, the water level of Ipo Dam rose by 14 centimeters to 100.62 meters, nearing its spilling level of 101 meters. On the other hand, the elevation of La Mesa Dam fell by 17 centimeters to 78.69 meters.

The water board in September cut Metro Manila’s allocation to 46 cms from 48 cms due to dropping water levels of Angat Dam. — Revin Mikhael D. Ochave

Nationwide round-up (11/02/20)

Duterte visits typhoon-hit area

PRESIDENT RODRIGO R. Duterte on Monday conducted an aerial inspection of areas devastated by typhoon Rolly (international name: Goni), and made a stop at one of the hardest hit towns, Guinobatan, in Albay province. He made the visit a day after drawing criticisms over his absence on Sunday’s meeting of the national disaster management council. In a briefing on Monday, Undersecretary Ricardo B. Jalad, director of the National Disaster Risk Reduction and Management Council, defended Mr. Duterte’s absence on Sunday saying the President has the “luxury” to be absent during these meetings as both the national and local government units are delivering the emergency response measures. Senator Christopher T. Go, a former aide of the President and accompanied him on the trip, said Mr. Duterte has instructed concerned agencies to conduct an investigation on alleged quarrying operations in the area that residents complained about. — Gillian M. Cortez

Galvez authorized to negotiate for COVID-19 vaccine

SECRETARY CARLITO G. Galvez, Jr., who has been functioning as chief implementer of the government’s coronavirus disease 2019 (COVID-19) response program, has been authorized by President Rodrigo R. Duterte to be the lead in the procurement and distribution of vaccines. The President made the announcement Monday afternoon during a televised meeting with Cabinet members on response measures for typhoon Rolly (international name: Goni). “Dito sa task force, ang pagbili ng bakuna, the negotiation, manufacture, production or distribution is binigay ko yan kay (Here in the task force, the buying of the vaccines, the negotiation, manufacture, production or distribution will be assigned to) Secretary Galvez. So only Secretary Galvez is authorized to negotiate,” Mr. Duterte said. The President said he has “great faith” in Mr. Galvez, a retired military general who is appointed secretary for the Office of the Presidential Adviser on the Peace Process, to “really come up with the solutions for the problem.” Palace Spokesperson Harry L. Roque confirmed to reporters in a message on Monday evening that Mr. Galvez was named “vaccine czar” earlier but an official announcement was withheld. Mr. Duterte said he wants one person responsible for the vaccine task because making a new “committee” will prolong the process. — Gillian M. Cortez 

Solon pushed for bill strengthening Justice department

REPRESENTATIVE NAEALLA  Bainto-Aguinaldo of the Bahay Party-list on Monday called on her House colleagues to pass the bill that will address the Justice department’s “undermanned” legal staff following President Rodrigo R. Duterte’s recent order for a government-wide anti-corruption drive. Ms. Aguinaldo said House Bill No. 7828 or the State Counsel Act will strengthen the Department of Justice (DoJ) and boost its capacity to perform its various functions. “The sad reality is that government lawyers in the DoJ are spread too thin; dumadami trabaho, pero di dumadami ang abogado (their tasks are increasing but not the lawyers),” Ms. Aguinaldo, a former DoJ official, said in a statement. HB7828 creates an Office of the Chief State Counsel and increases the number of DoJ’s lawyers to 110 from 60. Meanwhile, Justice Secretary Menardo I. Guevarra on Monday clarified that the DoJ will also investigate complaints about corrupt practices involving smaller amounts of money “but with high impact on the delivery of government service to the people.” In a statement, he explained that the “P1 billion threshold is just a guideline in our setting of priorities. Our secretariat/operations center, which we are presently organizing, will soon embark on identifying these corrupt transactions and practices based on available materials and information to be drawn from the public.” — Kyle Aristophere T. Atienza

Regional Updates (11/02/20)

Cagayan braces for storm Siony as some areas still flooded by recent typhoons

AUTHORITIES IN Cagayan are on high alert for tropical storm Siony, with international name Atsani, which is on a path that will cross the province where some areas remain flooded due to rains from other recent typhoons. Siony was located 620 kilometers (km) east of Aparri town as of Monday morning and moving west-northwest, according to weather bureau PAGASA. Ruel Rapsing, head of the Task Force Lingkod Cagayan-Quick Response Team, said they have been conducting close monitoring for the past four weeks since rains started. “Soils are near saturated or saturated, so there is a high threat of flooding,” he said over the local government’s tele-radio on Monday. Mr. Rapsing said they are in close coordination with the Provincial Disaster Risk Reduction and Management Office (PDRRMO) for preemptive evacuation operations. Among the towns with flooded areas and some roads impassable are Ballesteros, Allacapan, Rizal, and the capital Tuguegarao City. PDRRMO head Atanacio T. Macalan, Jr. said municipal disaster management offices are prepared for emergency response. “Since (typhoons) Pepito, Quinta, Rolly, local social welfare offices have prepositioned relief goods, we are in continuous coordination,” Mr. Macalan said. PAGASA, in its 11 a.m. Monday advisory, said Siony is expected to slow down “significantly” and become “almost stationary” by Tuesday to Wednesday morning with its center around 600 km east of Calayan. It is packing winds of 65 km per hour near the center and gustiness of up to 80 km/h.

Energy dep’t orders price freeze on LPG, kerosene in typhoon-hit Cavite

THE ENERGY department has ordered a 15-day price freeze on household liquified petroleum gas (LPG) and kerosene starting Nov. 1 in Cavite following the provincial government’s declaration of a state of calamity due to the impact of typhoon Rolly (international name: Goni). In an advisory sent via Viber on Sunday, the Department of Energy said price rollbacks will take effect but not increases. Energy Secretary Alfonso G. Cusi on Friday asked oil companies to secure proper fuel inventory levels, and reminded them to implement a price freeze on household LPG and kerosene products in areas placed under a state of calamity. Last week, diesel and kerosene prices decreased by P0.25 per liter and P0.15 per liter, respectively. — Angelica Y. Yang

Typhoon Goni leaves at least 16 dead, major infrastructure damage

AT LEAST 16 people have been confirmed to have died due to the onslaught of typhoon Goni, locally named Rolly, the strongest globally so far this year. In its update as of 11 a.m. Monday, the Office of Civil Defense in Bicol Region said 10 of the casualties are from Albay while six are from Catanduanes. Three more reported deaths were being verified while three others are missing. Governor Joseph C. Cua of Catanduanes, where the super typhoon made its first landfall on Sunday, reported on the island province’s devastation in a briefing on Monday. Public infrastructure, including roads and ports, were heavily damaged with an estimated cost of up to P1 billion and about 80% of powers posts were affected. In Albay, where Rolly made its second landfall, Governor Al Francis C. Bichara said one of its towns, Guinobatan, has become a “no man’s land” due to lahar flow from Mayon Volcano. Mr. Bichara said he is considering permanently relocating the affected residents. Meanwhile, the National Disaster Risk Reduction and Management Council said 1.5 million people across five regions were affected by the typhoon.

POWER SUPPLY, AIRPORTS
On power supply, the National Electrification Administration said electric cooperatives across the country were preparing on Monday to deploy crews to assist in restoration works in the affected regions of Luzon as well as in Eastern Visayas. The Department of Energy, in a separate advisory, said several power plants were still undergoing restoration works. The Civil Aviation Authority of the Philippines, meanwhile, reported that its airport in Naga, Camariñes Sur has resumed operations for commercial flights on Monday. In Virac, the airport sustained significant damage but an emergency team from the Philippine Coast Guard on board a small propeller plane was able to land to evaluate the situation in the province. Operations at the country’s main gateway in Manila, the Ninoy Aquino International Airport, has also resumed. — Gillian M. Cortez and Angelica Y. Yang

Blackwater Elite return to action, take on San Miguel

By Michael Angelo S. Murillo, Senior Reporter

THE Blackwater Elite return to PBA Philippine Cup action on Tuesday after a two-week break because of coronavirus concerns, taking on the defending champions San Miguel Beermen in the opener at 10 a.m. of a quadruple-header offering at the Angeles University Foundation Arena in Pampanga.

Last played on Oct. 22 before the league decided to ground the team after one of its players tested positive for the coronavirus, later ruled a “false positive” case following negative results from confirmatory tests, the Elite look to resume their bid in the ongoing Philippine Basketball Association (PBA) tournament where they are sporting a 2-3 record, good for eight place in the 12-team field.

Blackwater coach Nash Racela shared that their inactivity was “tough”, but that they tried to make do with what they were presented with to stay the course both physically and mentally, and now they are ready to do battle once again.

In their last game, the Elite lost to league-leading TNT Tropang Giga, 109-96.

They trailed TNT for much of the contest en route to slumping to their second straight defeat.

Don Trollano led the way for Blackwater in said game, finishing with 23 points, seven rebounds and four assists. Mac Belo had 16 points and eight rebounds while Mike Tolomia wound up with 12 points.

Days after the game, it was made known that one of the Elite’s players tested positive for the coronavirus.

He was immediately extracted from his room at the Quest Plus Hotel inside Mimosa, which is part of the PBA “bubble,” and taken to the quarantine facility in the Athlete’s Village in Capas, Tarlac, for observation.

The player then went through antigen and reverse transcription polymerase reaction (RT-PCR) testing to confirm the previous result.

While the results were being awaited, the Blackwater team, and TNT, were asked to isolate themselves as a precautionary measure, leading to some of their games being postponed.

The results of the confirmatory tests of the player later on yielded negative, ruling him false positive, or “when someone does not have the coronavirus, tests positive for it.”

But as part of the league protocols, he was still asked to stay in the quarantine facility.

Heading into Tuesday’s game, the Blackwater team, and the rest of the PBA squads, tested negative in the league’s latest cycle of swab tests.

In their return, waiting for the Elite are the streaking Beermen (4-2), winners of their last three games.

Despite not having key cogs June Mar Fajardo and Terrence Romeo because of injuries, San Miguel is now in the swing of things after a slow start, riding largely on the efforts of its champion core of Arwind Santos, Marcio Lassiter, Alex Cabagnot and Chris Ross as well as big man Mo Tautuaa.

The latest of the Beermen’s wins came on Oct. 28 at the expense of the Meralco Bolts, 89-82.

The Blackwater-San Miguel matchup sets the stage for a busy day for the PBA, where it will be staging the first of a series of quadruple-header offerings.

The league move was to make up for the lost play dates since Oct. 30, when it decided to postpone all matches as it fine-tuned its coronavirus protocols in collaboration with the government, and for PBA to stay on track of finishing the elimination round by Nov. 11. 

Also on tap today are the Phoenix Super LPG Fuel Masters (4-3) against Terrafirma Dyip (0-5) at 1 p.m., Northport Batang Pier (1-4) against TNT (5-1) at 4 p.m., and Barangay Ginebra San Miguel Kings (4-2) versus the Alaska Aces (5-3) at 6:45 p.m.

Quadruple-headers are also slated on Nov. 4, 6, 8, and 11 while triple-headers are set for Nov. 5 and 9.