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Congressmen call for lifting of jeepney ban amid coronavirus

MORE than a hundred congressmen have signed a resolution asking the government to lift the ban on public utility jeepneys amid a coronavirus pandemic.

The lawmakers signed House Resolution 1254, which cited the “need to address the worsening economic plight of jeepney drivers and operators who have been grounded since the start of the community quarantine.”

The document was authored by Manila Rep. Bienvenido A. Abante, Jr., Quezon City Rep. Jose Christopher Y. Belmonte and members of the six-member Makabayan bloc at the House of Representatives.

The lawmakers said 75,000 traditional jeepneys on 900 routes all over Metro Manila have been affected since the government restricted mass transportation to contain the pandemic.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to control the coronavirus. People should stay home except to buy food and other basic goods, he said.

The lockdown in many parts of the country including the capital region where infections are mostly concentrated has since been relaxed, but the wildly painted jeepney that has become a Philippine cultural icon remained mostly banned.

The ban on jeepneys, where passengers closely sit next to and in front of each other, was in keeping with state efforts to enforce social distancing.

The presidential palace in June said jeepneys might soon be allowed under a relaxed lockdown as long as they are roadworthy, pursuant to the government’s modernization plan for these vehicles.

In their resolution, the congressmen cited an international research from the University of Amsterdam and the United States Centers for Disease Control and Prevention that showed there was a reduced risk of viral spread in well-ventilated open-air vehicles.

As of Sept. 18, 206 traditional public utility jeepney routes have been opened, or about 23% of the more than 900 existing routes.

This allowed 17,372 traditional jeepney units in Metro Manila to resume operations or almost a quarter of the 75,000 total.

“Even with the phased reopening of routes, the gradual increase in the number of operating jeepney units and the introduction of modern jeepneys, the number of available public transportation units remain lacking and has thus caused hardships among commuters,” according to a copy of the resolution.

Mar S. Valbuena, president of the Samahang Manibela Mananakay at Nagkaisang Terminal ng Transportasyon, earlier said the government must address the plight of the country’s half-a-million jeepney drivers, 140,000 of whom are in the capital region. 

On June 2, police arrested six jeepney drivers in Caloocan City after they protested their continued ban under a relaxed lockdown. One of them was a 72-year-old man named Elmer Cordero. The Commission on Human Rights has expressed “deep concern” about the arrests.

Mr. Valbuena earlier said the government might be using the pandemic to push its agenda of phasing out old jeepneys.

Under the modernization program launched in June 2017, operators must stop using 15-year-old units and older, and replace these with new ones in three years.

To date, only 4% of about 370,000 old jeepneys nationwide have been replaced. — Kyle Aristophere T. Atienza

Coronavirus cases top 314,000; death toll rises to 5,562

THE DEPARTMENT of Health (DoH) reported 2,415 coronavirus infections on Thursday, bringing the total to 314,079.

The death toll rose by 59 to 5,562, while recoveries increased by 771 to 254,223, it said in a bulletin.

There were 54,294 active cases, 86.6% of which were mild, 9% did not show symptoms, 1.4% were severe and 3.1% were critical.

Of the new cases, 930 came from Metro Manila, 238 from Cavite, 128 from Rizal, 123 from Laguna and 103 from Negros Occidental, the agency said.

Metro Manila had the highest number of new deaths with 26, followed by Central Visayas with seven, Western Visayas with six, the Ilocos region with five and Zamboanga Peninsula with four.

Northern Mindanao and the Calabarzon region reported three deaths each, the Bicol and Caraga regions had two each, while Central Luzon reported one death.

More than 3.5 million people have been tested for the COVID-19 (coronavirus disease 2019), DoH said.

Meanwhile, dine-in restaurants in areas under general lockdown may fully reopen and extend business hours, depending on local government rules, according to the Trade department. The agency said it would allow higher operating capacity for other businesses that have been allowed to partially run.

Local governments have the final say on how much capacity restaurants can operate, says Trade secretary Ramon M. Lopez an online news briefing on Thursday.

Restaurants had been allowed to operate at up to 50% capacity in places under a general community quarantine.

The Trade department will issue an advisory about the policy, Mr. Lopez said. Barber shops and salons may increase their capacity to as much as 75%, he told One News.

The government would try to allow more sectors to reopen and increase the capacity of those that are still operating partially, he said.

These include legal services, accounting, engineering, architectural services, management consultancy, programming and IT, and retail, he said. — Vann Marlo M. Villegas and Jenina P. Ibañez

Duterte tells House not to lose focus on 2021 budget amid squabble

PRESIDENT Rodrigo R. Duterte urged congressmen to prioritize the 2021 national budget amid a squabble over a term-sharing deal for the speakership.

The President, who brokered the term-sharing between Speaker Alan Peter S. Cayetano and Marinduque Representative Lord Alan Q. Velasco last year, met with the two on Tuesday.

Deputy Speaker Luis Raymund F. Villafuerte, Jr. told the ABS-CBN News Channel on Wednesday a deal was reached to honor the gentleman’s agreement.

“His request was for the budget to be passed as soon as possible,” presidential spokesman Harry L. Roque told an online news briefing in Filipino on Thursday.

An early passage would allow the government to maximize its anti-coronavirus efforts, he said.

Mr. Cayetano on Wednesday offered to quit as speaker, which majority of congressmen rejected in a vote. He said Mr. Velasco was “too excited” to take over the speakership amid legislative priorities.

Before his privilege speech, Mr. Cayetano said allies of Mr. Velasco led a text message brigade asking colleagues not to listen to him.

He said they were meddling in the speakership because they were aiming for key committee positions.

Mr. Cayetano, who was Mr. Duterte’s vice-presidential running mate in 2016, said Mr. Velasco would either lose the numbers game or face a coup for being unpopular and seeking to pass the national budget without any changes.

Mr. Roque said the President would respect lawmakers’ decision on the leadership because it is an “internal decision.” — Gillian M. Cortez

Regional Updates (10/01/20)

Transport chief wants private firms to give contactless cards for free to commuters

TRANSPORTATION SECRETARY Arthur P. Tugade wants the reloadable card for fare payments at Metro Manila’s busway and railway systems be given for free to commuters in consideration of the coronavirus-prompted crisis, a department official said. Transportation Assistant Secretary Goddes Hope O. Libiran said in a phone message that Mr. Tugade had directed the concerned officials in the agency’s road and rail sectors to negotiate with the consortium behind the beep smart card, AF Payments, Inc., which is composed of Metro Pacific Investments Corp. (MPIC) and Ayala Corp. “Dapat libre lang ang card (The card should be for free). We are still under quarantine measures.  Workers who have just returned to work are the main users of the rail system and the EDSA Busway,” Mr. Tugade was quoted as saying in a statement. AF Payments, however, said it is selling the cards at cost. “Starting October 1, beepTM cards are being sold at cost,” the company said in a statement. “We would like to assure the commuters that we will continue working together with government agencies and transport stakeholders to find ways on how to serve the public that’s truly beneficial to all,” it added. MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Arjay L. Balinbin 

Gov’t targets 42,000 beds for medical, isolation facilities

SECRETARY CARLITO G. Galvez Jr., chief implementer of the coronavirus response program, said at least 42,000 hospital beds are needed to further boost the country’s health and isolation facilities. “Kailangan magkaroon tayo ng karagdagang (We need to have additional) hospital beds at (and) quarantine isolation facilities… 42,000 beds  (in total),” he said in a briefing on Thursday. Mr. Galvez said P4.5 billion has been allocated by the government for the construction of more coronavirus disease 2019 (COVID-19) quarantine centers. Another P4.5 billion is budgeted for the use of existing hotels in Metro Manila and other urbanized areas as quarantine and isolation facilities. Metro Manila remains as the country’s COVID-19 epicenter, accounting for more than half of total patients, but Mr. Galvez said the daily reported cases are going down. He added that if the downtrend continues, he agrees with Metro Manila mayors that the economy can reopen further by November, but still with strict health protocols. Mr. Galvez said the inter-agency task force is discussing possible adjustments in the guidelines for the different quarantine levels. — Gillian M. Cortez 

Duterte calls for consultations on Bataan nuclear plant revival

THE PRESIDENT has ordered the Energy secretary to hold community consultations before moving forward with plans to revive the Bataan Nuclear Power Plant (BNPP). Palace Spokesperson Harry L. Roque said President Rodrigo R. Duterte gave this directive during a recent meeting with Energy Secretary Alfonso G. Cusi and Mark O. Cojuangco, a former Pangasinan representative and nuclear energy advocate. “What the President said was start from the ground… and I take that to mean that us here in Bataan should be consulted first,” Mr. Roque said in a briefing held in Bataan on Thursday. Mr. Duterte issued an executive order in July directing an inter-agency body headed by the Department of Energy (DoE) to study the feasibility of using nuclear energy locally. The order also called for a feasibility study on reviving the mothballed BNPP. Mr. Cojuangco, during his term in the 14th Congress, filed a bill for the commercial operation of the plant. — Gillian M. Cortez

Nationwide round-up

Solon dares colleagues to declare Speaker’s seat vacant

A LAWMAKER supporting Speaker Alan Peter S. Cayetano dared his colleagues to declare the House of Representatives’ top post vacant and hold an election. Anakalusugan Partylist Rep. Michael T. Defensor made the call following Wednesday’s vote rejecting Mr. Cayetano’s announcement of his resignation — or intent to resign — in a privilege speech. “Basically, whatever it was, whether it was resignation or offer for resignation, the vote is a manifestation of the continued support of the overwhelming majority of the House,” Mr. Defensor said in an interview over ANC. “And if in the end, they do not get the numbers then I think we should just continue our work and respect each other,” he added. Meanwhile, members of a party-list bloc warned that the leadership tussle should be closely watched as it relates to strategically re-aligning some “lump sum” appropriations supposedly allocated to the congressional districts of several lawmakers. “Let’s be keen on future developments (in the leadership crisis) to further unveil the interests of lawmakers for pork,” ACT Teachers Party-list Rep. France L. Castro said in Filipino during a press conference on Thursday. — Kyle Aristophere T. Atienza

Justice dep’t spokesperson quits

JUSTICE UNDERSECRETARY Mark L. Perete resigned from his post effective immediately, citing “serious reasons” that are “very personal.” Mr. Perete, also the department’s spokesperson, said in a Viber message to reporters early Thursday morning, “After much thought, I have decided to submit my resignation from the DOJ effective today due to serious reasons.” He also said, “I would have liked to continue under Secretary (Menardo I.) Guevarra’s leadership but it would be a disservice to do so at this time. Mr. Perete was appointed in July 2018 under the term of Mr. Guevarra. He previously served as technical assistant with the position of assistant secretary for legal affairs at the Office of the President. Mr. Perete had also been a legal counsel for a private company and a law professor. — Vann Marlo M. Villegas

Challenge looms to San Miguel airport tax perks legislation

A GROUP of economists and former public officials said they will support a veto of legislation granting tax breaks for San Miguel Aerocity, Inc.’s P740-billion Bulacan airport project if Congress passes the measure.

Action for Economic Reforms (AER) said in a statement Thursday that legislators reject Senate Bill 1823, which grants 10 years’ worth of tax exemptions over the airport’s construction period. The bill also gives San Miguel Aerocity a 50-year franchise.

“This bill, if passed, will supplant existing laws or future laws and that is very, very dangerous… not only for the economic rules but even for democracy. Imagine that, we are suppressing laws just to accommodate certain interests and in that context, we will indeed ask for a veto in the event that Congress approves this bill,” AER Cofounder and Coordinator Filomeno S. Sta. Ana III said in an online briefing Thursday.

Mr. Sta Ana said the group hopes the executive will seriously consider a veto but in case the measure is signed into law, “It will set a very bad precedent because even if this veto does not materialize, expect organizations like the AER to push for the rejection of this bill, or in the event that it becomes a law, a rejection of this law,” he said.

He said the measure, if passed, will undermine the government’s plan to reform the tax incentive system and may encourage other companies to ask Congress for tax incentives as well.

Deliberations on the bill in the Senate started early this week. A counterpart measure, House Bill No. 7241 has been approved by that chamber.

The President has 30 days from receipt of a bill passed by Congress to either sign it into law or veto it.

In absence of a signature or veto notice within the given period, the bill will lapse into law.

“What (incentives) you give to one private proponent, you have to give to everybody. It is better for all investors if they can follow a general law like CREATE and get their incentives in the general manner,” Rene Santiago, a transport expert and a former consultant for the Japan International Cooperation Agency (JICA), said in the same briefing.

In a statement last week, AER first warned that the proposal to provide tax perks “runs contrary to the core objectives” of the tax reform plan, currently embodied in the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) bill.

The group also said the tax perks should be made available only in the event of market failure. In 2016, a study by JICA indicated that service improvements at Ninoy Aquino International Airport and Clark International Airport can accommodate future demand for air travel in the area surrounding the capital region.

The Department of Finance also opposed the proposed tax incentives for the Bulacan airport because it is an unsolicited bid, which according to Finance Assistant Secretary Maria Teresa S. Habitan should not be given fiscal perks.

Mr. Sta Ana said the measure’s revenue impact is still difficult to assess at the moment.

Asked to comment, San Miguel Aerocity had not responded at deadline time. — Beatrice M. Laforga

PHL budget deficit seen averaging 7.7% of GDP through 2023; fiscal position still intact

FITCH SOLUTIONS Country Risk & Industry Research projected the national government’s budget deficit to average 7.7% of gross domestic product (GDP) as the economy slows down due to the pandemic, but noted that its fiscal position will remain intact.

In a note Thursday, Fitch Solutions said it revised its outlook for the deficit-to-GDP ratio for 2020 to 9.3% from 8% previously. It also forecast 8.3% and 7.1% of GDP in 2021 and 2022, against the previous estimates of 3.5% and 3%, respectively.

Its previous estimate for the deficit-to-GDP ratio until 2023 was 4.3%.

“Our revision reflects provisional spending plans announced for the 2021 budget and a belief that the government will maintain a loose fiscal stance in the coming years due to the sharp economic downturn in 2020,” according to the note, “Philippines’ Fiscal Policy To Focus On Medium-Term Growth Over Near-Term Boost.”

It also cited the increased budget for next year of P4.5 trillion which features more support for the health system and higher allotments for infrastructure. However, Fitch warned of political maneuvering in Congress that could delay the passage of the budget.

“In addition, we expect the government to take further fiscal stimulus steps over the course of the coming quarters as uncertainty surrounding the pandemic recedes and investor appetite for risk assets picks up. Furthermore, with elections due in 2022, we expect legislators to speed-up support packages and spending in an effort to tackle unemployment, boost incomes and confidence ahead of voting,” it said.

The government’s official estimates are for a deficit equivalent to 9.6%, 8.5% and 7.2% of GDP in 2020, 2021, and 2022, respectively.

Despite the deficit, Fitch said the government’s overall fiscal position will remain manageable.

“While we forecast a wider deficit, overall risks to the fiscal position remain relatively contained. As noted, risk premia attached to the Philippines have declined, reducing government borrowing costs, despite the pandemic,” it said.

It forecast the national debt stock rising to 51.2% of GDP by years’ end, continuing to climb until 2022, before steadily declining and remaining “broadly flat at 51.4% by 2029.”

“Public debt levels will remain relatively contained after an initial surge in 2020, on the back of strong economic growth and productive investments,” Fitch Solutions said.

The deficit rose 515% to P740.7 billion in the eight months to August on the back of higher spending on pandemic containment measures alongside reduced tax collection.

Overall spending rose 21% to P2.671 trillion during the period while revenue fell 8% to P1.931 trillion, mainly due to the 12% year-on-year decline in taxes collected.

The government’s gross borrowings was P2.47 trillion in the eight months to August, up 170% year on year. It plans to borrow P3 trillion this year. — Beatrice M. Laforga

Import, export agencies targeted to join TradeNet by yearend

THE Anti-Red Tape Authority (ARTA) is pushing for the mandatory inclusion of government agencies regulating trade to a platform run by the Department of Finance (DoF) by the end of the year.

“By the end of 2020, ARTA seeks the mandatory on-boarding of trade regulatory government agencies involved in the issuance of licenses, permits, clearances and certifications for movement (import-export-transit) of cargo to the Department of Finance’s TradeNet System,” ARTA said in a statement Thursday.

TradeNet — connected through the TRADENET.gov.ph platform — is the customs and trade online platform linking the Philippines to the ASEAN Single Window. This online platform allows trade-related transactions and document exchange within Southeast Asia.

The Philippines joined the ASEAN Single Window in December. The DoF has said the window is expected to reduce communications costs and encourage small enterprises to make use of preferential tariffs under an ASEAN trade agreement.

The government plans to connect 76 regulatory agencies across 18 departments to TradeNet.

The platform is designed to simplify trade processes for around 7,400 regulated products. — Jenina P. Ibañez

NEDA’s Chua tells gov’t statisticians to accelerate digitization process

ACTING Socioeconomic Planning Secretary Karl Kendrick T. Chua has ordered an accelerated process of digitization to ensure faster delivery of economic data to the public.

“In the services sector, effective ICT (information and communications technology) applications accelerate productivity by trimming down lengthy manual processes, which results in cost effectiveness, faster delivery time, better service, and ultimately, better customer satisfaction. This, I think, should be the guiding advice or principle that the (Philippine Statistical System) should adopt,” Mr. Chua said in a speech marking the start of National Statistics Month Thursday.

He said statistics delivery “is not exempted” from the rapid digitization across many sectors taking place during the pandemic and reminded government statisticians to “do more” as their output is crucial in determining the direction of programs and policies.

“In our effort to produce relevant, timely, and quality statistics, let us try to take a lesson from the fast-growing and high-skilled services sector of the country when we produce statistics,” he said.

The PSS consists of the Philippine Statistics Authority (PSA) and other data producing-agencies at the administrative levels.

Mr. Chua cited PSA’s recent move to conduct the labor force survey (LFS) digitally.

“I think we should proceed with utmost urgency and haste to complete or to transition fully from manual processing and collection of data to full automation beginning with the work that we’re doing in the LFS, part of the census, the National ID, and so on,” he added.

He said the integration of ICT and digital tools in the statistical system of the country will spur economic activity and promote more efficient implementation of programs and social services.

“What this crisis has made apparent is the need for us to evolve and improve our systems if we hope not just to outlast, but also build resilience against adversities such as the COVID-19 pandemic. The task ahead of us requires innovative and creative solutions that can effectively mitigate the consequences brought about by the COVID-19 (coronavirus disease 2019) pandemic and allow us to recover faster and better,” he said. — Beatrice M. Laforga

Senate presses Labor dep’t for clear strategy to tackle worker, OFW displacement

SENATORS said Thursday that the Department of Labor and Employment (DoLE) needs a “real, concrete” strategy to deal with workers displaced by the coronavirus disease 2019 (COVID-19) pandemic.

Senator Emmanuel Joel J. Villanueva and Imelda Josefa R. Marcos said DoLE should draft a plan that goes beyond its emergency response measures, such as the COVID-19 Adjustment Measures Program and AKAP para sa OFW (overseas Filipino worker).

“At the end of the day, we need a real, concrete employment recovery plan that relies on employment facilitation, support to MSMEs (micro, small, and medium enterprises), real sustainable livelihood programs,” Mr. Villanueva, the Finance Committee Vice-Chairman, said during DoLE’s budget hearing.

The panel was tackling the department’s P27.53-billion budget for 2021, which is up 53.7%. The budget’s components include P3.53 billion for the Office of the Secretary and P5.81 billion for the Overseas Workers Welfare Administration.

Labor Secretary Silvestre H. Bello III said the department continues to implement long-term employment programs such as the Special Program for Employment of Students (SPES). The 2021 spending plan will allocate P605.7 million to the program.

The department also cited the Integrated Livelihood Program with P809 million in funding and the Government Internship Program among other short-term livelihood programs, which have P9.938 billion in funding overall.

Ms. Marcos, however, said the department needs to come up with a plan designed specifically for the pandemic job losses. 

“I am familiar with SPES and all other programs you have, but it’s very much business as usual,” she said.

“The unemployment crisis that has come out of the pandemic is not business as usual. We need to have new plans, new programs.”

Unemployment and underemployment are respectively at 10.4% and 17.3%, according to the Philippine Statistics Authority. On top of this, the labor department reported some 224,700 overseas Filipino workers have been repatriated over the course of the pandemic.

In response, DoLE’s Bureau of Local Employment (BLE) said it is seeking to develop with the National Economic and Development Authority an employment recovery program.

“Our contribution is the updating of the labor market information,” BLE Director Dominique Rubia-Tutay said.

“Kailangan ma-identify ‘yung mga (We need to identify the) key employment generating sectors… in the new normal, and given the challenges we have.”

She noted the information gathered has been sent to the Technical Education and Skills Development Authority, Commission on Higher Education, and the Department of Education. — Charmaine A. Tadalan

PHL power sector risk increasing amid weak consumption, construction halts

RISKS in the Philippine power sector are increasing as the pandemic pressures both demand and new-build plant construction, Fitch Solutions Group said in a research note.

It said the assessment is based on the industry’s declining performance on its risk-reward index over two consecutive quarters.

With disease containment efforts stretching into a seventh month, the power and renewables sectors will face heightened risk over the near term, it said.

Earlier in September, Fitch Solutions trimmed its power consumption outlook for the Philippines to a decline of 5.9% this year “with further downside risks.” Before the pandemic, its estimate was for growth of 5%.

“We also expect continued headwinds to power capacity growth over the near to medium term,” it said.

Still, electricity usage may rebound “strongly” over the long term, which will require over 40 gigawatts of additional power capacity by 2040, as the Department of Energy projects.

The prolonged pandemic also exposes the Philippines to “increasingly tighter” financial constraints, with more funds expected to be diverted away from infrastructure and towards the labor market and social subsidies.

“An inability to contain the virus could also dampen foreign direct investment and momentum around structural reforms to attract such investment over the longer term,” it added.

Delays are also likely for plant construction due to labor and supply chain disruptions caused by the quarantine.

According to Fitch, the Asian power market remains a “global outperformer” in terms of investment attractiveness because of “strong underlying demand for power and ambitious government expansion plans for their respective power sectors, which create opportunities for the development of power capacity, particularly in emerging markets.”

However, risks vary across countries, depending on their respective “ability to successfully contain their domestic outbreaks, energy intensity of their economic growth, capacity to implement fiscal stimulus measures to support their economies and priorities in place for the power sector.”

“We stress that risks are still skewed to the downside, particularly as the risk of a second wave of infections becomes more apparent,” it added. — Adam J. Ang

NEA resorts to online inspection of rural solar projects

THE National Electrification Administration (NEA) said it has had to resort to online inspections of electrification projects in remote communities as travel remains restricted due to the pandemic.

Recently, the agency conducted a virtual Factory Acceptance Test (FAT) for the solar photovoltaic mainstreaming project of Iloilo III Electric Cooperative, Inc. (ILECO III) for off-grid communities.

“Due to the pandemic, the NEA is forced to look for other means of conducting the FAT without compromising the safety and health of its employees and partner ECs (electric cooperatives), while also ensuring the quality of equipment being procured,” NEA Manager Ernesto O. Silvano, Jr. said.

Mr. Silvano, who heads the agency’s total electrification and renewable energy development department, said the online inspection maintains the “same criteria and standards” observed during physical checks.

In April, NEA said the rollout of its P153-million off-grid solar power program experienced delays due to pandemic. It hopes to provide power to 5,000 rural households over the next five years.

Apart from ILECO III, other beneficiaries of the solar project are Busuanga Island Electric Cooperative, Inc. (BISELCO), Camarines Sur IV Electric Cooperative, Inc. (CASURECO IV), Cotabato Electric Cooperative, Inc. (COTELCO), and Zamboanga del Norte Electric Cooperative, Inc. (ZANECO). — Adam J. Ang

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