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Dengue outbreak declared in Iloilo City following all 5 provinces in Western Visayas

A WEEK after all the five provinces in Western Visayas declared a dengue outbreak, Iloilo City Mayor Jerry P. Treñas followed suit on Monday as he expressed alarm over the increasing number of cases in the region’s center. “There has been a 416.7% increase in dengue cases here from January 1, 2018 up to the present. The alarming dengue cases are continuing to rise every day,” Mr. Treñas said. The City Health Office has recorded six deaths and 869 dengue cases as of July 13. The City Disaster Risk Reduction Management Council (CDRRMC) is set to meet on Wednesday to discuss the possible endorsement of placing the city under a state of calamity due to dengue. — Emme Rose S. Santiagudo

Lanao del Sur signs deals for coffee, abaca development

THE LANAO del Sur government has identified coffee and abaca among its priority products for development through partnerships with various groups. The provincial government signed two agreements during the Marawi-Lanao Agribusiness Forum and Market Matching on July 17-18 in Marawi City for the developments of the two crops, according to a press statement released by the Strengthening Urban Resilience for Growth with Equity (SURGE) project yesterday. One of the agreements is with the Philippine Coffee Board, and the other with the Philippine Fiber Industry Development Authority and NewTech Pulp, a private company, “to initiate action plans to expand abaca production and village-level processing in the province.” SURGE, a project funded by the United States Agency for International Development, supported the event organized by the Bangon Marawi Chamber of Commerce and Industry. It was intended to help farmers gain “market information on viable agricultural crops and the opportunity to forge partnerships with key private companies.” About 500 displaced farmers from Marawi joined the event, along with representatives from SL Agritech Production, East West Seed Corp., Pilmico Food Corp., UGP Group and Matling Corp. Aside from coffee and abaca, it was also discussed during the forum possible “partnership schemes for agricultural products that are highly suitable in Lanao area” such as cassava, poultry, rice, banana and native scallion. — Carmelito Q. Francisco

Japanese grant for Metro Cebu septage project

Japanese Ambassador Koji Haneda (right) and Foreign Affairs Secretary Teodoro L. Locsin sign and exchange notes on July 23 for the grant of up to ¥2 billion (P946 million) for the Project for the Septage Management of Metro Cebu Water District. The grant will be used to construct a septic tank sludge treatment facility and provide sludge collection vehicles as well as improve the operation system for sludge processing.

2 BPO companies awaiting approval to operate in Bohol

TWO BUSINESS process outsourcing (BPO) companies are just awaiting approval from the Office of the President to launch operations in Tagbilaran City, Bohol. Department of Trade and Industry-Central Visayas (DTI-7) Regional Director Asteria C. Caberte said the two firms’ applications to be declared as cyberzones have been endorsed by the Philippine Economic Zone Authority (PEZA). Ms. Caberte said these BPOs, the first outsourcing companies to locate in Bohol, is expected to hire over 1,000 workers for their call center operations. In an earlier interview, PEZA Director General Charito B. Plaza called on the Department of Information and Communications Technology (DICT) to help the island province improve its ICT infrastructure to attract more BPO locators. Ms. Plaza said PEZA has already identified possible IT Parks in Bohol, but property developers are still hesitant to put up office buildings because of concerns on internet data connectivity. Ms. Caberte, on the other hand, said Bohol already has a fiber optic network and is ready to host outsourcing firms. — The Freeman

SSS-Davao warns over 3,200 delinquent employers

THE SOCIAL Security System’s (SSS) Davao Region office has called on delinquent employers to settle accounts or face charges. “These are employers who are not compliant… and they are not that concerned (that their remittances are delayed),” Office-in-charge Southern 1 Department head Rizalito Alberto C. De Leon told media during the Kapihan sa Davao. He cited that as of June 28, there were 3,283 delinquent employers in the region. Mr. De Leon said these employers have been notified through an electronic statement of account and some have been visited by SSS account officers. SSS Communications Officer Greta Queyle said 78 cases for non-remittance have been filed before the prosecutors office as of June 30. Ms. Queyle noted that convicted employers face a fine of up to P20,000 imprisonment of one day to 12 years. “This will send a strong message to the delinquent employers that SSS is here. It is true to its mandate that our premiums should be paid,” she said, adding that employees are the ones who suffer the consequences of having delinquent employers. — Maya M. Padillo

Nation at a Glance — (07/24/19)

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

Nation at a Glance — (07/24/19)

Ride-sharing restrictions lifted on small cars

REGULATORS will clear hatchback and subcompact cars to operate legally as part of the ride-sharing fleet.

The Department of Transportation (DoTr) issued Department Order No. 2019-013 yesterday, which ruled that these types of car can register for the transport network vehicle service (TNVS) category.

TNVS-registered vehicles make up the fleet accredited by ride-sharing platforms such as Grab Philippines (MyTaxi.PH, Inc.).

The DoTr said the policy aims to “further promote mobility and recognize new forms of transport vehicles that can help address the large demand for transport services.”

The Land Transportation Franchising and Regulatory Board (LTFRB) initially set restrictions on hatchbacks in ride-sharing due to safety concerns.

The restrictions are that hatchbacks may only operate as TNVS within a transition period of three years, may serve Metro Manila destinations and must charge a lower fare.

With the new policy from DoTr, hatchbacks and subcompacts are allowed to charge fares as authorized by the LTFRB for other TNVS units such as sedans, wagons, sport utility vehicles (SUVs), and vans.

The order will be effective as soon as it is published at the University of the Philippines Law Center. Transportation Assistant Secretary for Communications Goddes Hope O. Libiran said this is scheduled to be done within the week.

The LTFRB is also required to come up with a memorandum circular indicating further details of the policy within 30 days from its issuance. — Denise A. Valdez

BSP backs amendment to help banks comply with Agri-Agra Law

THE Bangko Sentral ng Pilipinas (BSP) said it is looking forward to passing an amendment to the Agri-Agra Reform Credit Act this year which would expand the projects that banks can fund to comply with their agricultural lending obligations.

Ginagawa pa ng House ngayon. Kasi ibro-broaden lang namin ’yung eligible projects sa agri agra. (The House is working on it. It will broaden the eligible projects under Agri Agra.) We will consolidate it. Kasi ngayon 10% sa agrarian reform, 15% sa agriculture (under current rules, banks are required to lend 10% of their portfolio to agrarian reform projects, and 15% to agriculture). We will broaden the projects,” BSP Governor Benjamin E. Diokno told BusinessWorld in a chance interview in Makati.

“For example, you are funding a solar power project for agriculture, pwede na iyon (it might qualify)… (or) if you issue a bond to support a particular agricultural region,” Mr. Diokno said.

Asked for a timeline to pass the law, Mr. Diokno said, “Before the end of December. I’m optimistic.”

Mr. Diokno said at a forum in Makati that banks are having difficulty in complying with the law and would rather pay the penalty than lend to farmers.

“The banks are complaining that the Agri Agra (rules) are too onerous to comply. Other banks would rather pay the penalty than lend,” Mr. Diokno said.

Republic Act 10000 or the Agri-Agra Reform Credit Act requires banks to allot at least 10% of its total lending portfolio to agrarian reform beneficiaries and 15% to farmers and fisherfolk.

As of end-2018, banks have only extended P707.4 billion worth of loans to the agriculture sector, or 56.97% of the P1.241 trillion they should have lent out to beneficiaries, according to central bank data. At the end of 2017. such loans totaled P573.69 billion, or roughly half of the total of P1.034 trillion if all banks were fully compliant.

“We are filing a bill, we call it Agriculture Modernization Financing, no longer Agri-Agra. We will combine the two — 10% plus 15%, total 25%. Combine the two and then we will broaden the kind of projects that will be compliant. We’re very sensitive to this. I keep saying this: Agriculture is the weakest link. We need a new Agriculture Secretary. Agriculture in Erap’s term used to grow by 6.5%. Now it is only growing at 0.5%. We really need to focus on agriculture,” Mr. Diokno said.

Banks said the law should be revised to be more realistic.

“We support agriculture but the [Agri-Agra] law has to be more realistic in terms of compliance, in terms of lending by banks to the agri sector,” Suzanne I. Felix, executive director of Chamber of Thrift Banks (CTB) told BusinessWorld.

“Well, we support what the governor said, including agri-agra. It’s something that the banking industry is studying.”

Ms. Felix also said that the banking industry will be studying the bill Mr. Diokno hopes to file.

“We’d like to form a common position perhaps within the banking industry with regard to Agri-Agra,” she said.

The CTB released a position paper to Congress in 2017 proposing certain amendments to the law.

The position paper stated that “lending to the agra sector is difficult” and that “forcing banks to lend to a market that is not ready will just create another Financial Crisis because it will create a bubble of bad loans which the Philippines cannot afford.”

In an e-mail, Ms. Felix said, “Given the share of agriculture in GDP (gross domestic product), there is no absorptive capacity for the sector and allocation will just result in excess supply, therefore enhancing the non-compliance of the mandated amount.”

President Rodrigo R. Duterte, in his State of the Nation Address (SONA), threatened to shut down Land Bank of the Philippines (LANDBANK) for not providing sufficient credit assistance to farmers.

“I’m asking now Congress, if there is no viable plan for (lending to) farmers and (all the loans are) commercial transactions, might as well abolish (LANDBANK) and give the money to the congressmen for their development funds,” Mr. Duterte said.

Meanwhile, Finance Secretary Carlos G. Dominguez III said that LANDBANK is doing its part to finance projects for the agriculture sector.

“I’m in regular contact with the executives of LANDBANK and have been assured that they are making every effort to finance projects in the agriculture sector. The size of the resources of the Bank as the main depository accounts makes it necessary for them to deploy their funds to commercial and industrial projects as agriculture projects,” Mr. Dominguez told reporters in a Viber message.

“They are also working closely with the Department of Agrarian Reform to hasten the distribution of individual land titles to the beneficiaries as a means of improving their bankability. For your information, LANDBANK also performs critical functions such as distributing funds to Pantawid Pamilya and Pantawid Pasada beneficiaries,” Mr. Dominguez added. — Reicelene Joy N. Ignacio

DPWH pushing to open entire length of C5 link by end-2021

THE Department of Public Works and Highways (DPWH) said it wants to expedite the opening of the entire length of the 7.7-kilometer C5 Link project, in order to connect Taguig to the Manila-Cavite Expressway (CAVITEx) by the end of 2021.

Public Works Secretary Mark A. Villar said at the opening of the 2.2-kilometer section of the expressway Tuesday he is targeting to complete the remainder of the toll road earlier than its 2022 timeline.

“I’m looking forward to the full opening by 2021… We set high goals but we hit those goals,” he said.

The concessionaire for the project’s construction, Cavitex Infrastructure Corp. (CIC), said this new timeline is possible if right of way is delivered immediately.

CIC President and General Manager Roberto V. Bontia told reporters after the opening ceremony for the road segment: “A lot of it really depends on the right of way… If DPWH can actually deliver on the right of way, the end of 2021 is doable.”

He noted that construction is “exact science,” and as soon as the rights are obtained are cleared, manpower and resources can be deployed to complete the project.

The P12.65 billion C5 Link project is composed of four sections, the first one being the 2.2-kilometer segment from Merville, a subdivision in Parañaque, to C5 Road, which was opened yesterday.

Next to be constructed is the 2.1-kilometer segment from Merville to RSG Subdivision, the right of way for which has been delivered 100% to the concessionaire.

However, the right of way for the segment from Sucat to RSG Subdivision is still less than 30% delivered; for the segment between R-1 and Sucat the equivalent proportion is about 69%. All these processes have been factored into CIC’s estimate that the entire 7.7-kilometer C5 Link project will be completed by early 2022.

The C5 Link project, once fully operational, is expected to help cut travel time to Taguig from Parañaque, Las Piñas and Cavite to around 30 minutes.

CIC is controlled by Metro Pacific Tollways Corp., the tollway unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three Philippine units of Hong Kong-based 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., has an interest in BusinessWorld through the Philippine Star Group. — Denise A. Valdez

Sugar production output in late June marginally lower amid falling prices

SUGAR PRODUCTION as of the fifth week of June declined 0.12% year on year, the Sugar Regulatory Administration (SRA) said.

The agency reported that in the fifth week of June, sugar production was 2.072 million metric tons (MMT), down from 2.074 MMT a year earlier, but higher than the 2.071-MMT target. This is equivalent to 41.447 million 50-kilo bags, compared with 41.498 million a year earlier.

The crop year for sugar starts every September and ends in August.

Demand for raw sugar declined 17.78% to 1.745 MMT.

Total sugarcane milled decreased 8.43% year-on-year to 21.74 MMT.

Refined sugar output fell 10.55% year-on-year to 796,164.05 MT.

The millgate price fell 22.60% to P1,512.50 per 50-kilo bag. The retail price was stable at P45 to P50 per kilo, but was lower from P52.50 to P64, year on year.

Government economic managers have expressed their intention to liberalize sugar imports to help lower high domestic prices and improve the competitiveness of the food industry.

Finance Secretary Carlo G. Dominguez III has estimated that sugar costs are about double the world market price.

The sugar industry has countered that liberalizing imports along the lines of the Rice Tariffication Law puts at risk about 5 million jobs. — Vincent Mariel P. Galang

Cabinet details post-SONA water management plans, road clearing

THE Cabinet presented on Tuesday its plans to execute President Rodrigo R. Duterte’s instructions delivered during the State of the Nation Address (SONA), which included the reclaiming and clearing of public roads in Metro Manila to ease congestion, the coordination of water supply and conservation efforts, and the more rapid issuance of permits.

In a post-SONA news conference in Quezon City Tuesday morning, Interior and Local Government Secretary Eduardo M. Año said he was scheduled to meet with local officials on how to implement the Ease of Doing Business Law and how to address road congestion in Metro Manila.

Nakita natin dito sa Metro Manila, may mga roads na ginagawang tyanggihan, ginawang tindahan ng vendors, at ginawang parking areas. So we will change that katulad sa ginagawa sa Manila ni Mayor Isko Moreno” (We can see in Metro Manila roads that have been taken over by vendors and by people parking their cars. So we will change that, following the lead of Manila Mayor Francisco Moreno Domagoso),” he said.

He added, “Gusto rin natin magkaroon ng kasunduan sa mga gated subdivisions na during rush hours na may kalsada d’yan na pwedeng bigyan ng access ang public para naman makatulong, gawin nating secondary or alternate roads. (We also want to reach agreements with gated subdivisions to allow access to their roads during rush hour, so they can help by providing alternate roads).”

Transportation Undersecretary for Administration and Finance Garry V. De Guzman said: “Unang una ang ginagawa po naming intervention is ’yong rehabilitation ng MRT-3 para po mapagaan natin ’yong traffic sa EDSA… ’Yong mga rail replacements dumating na po galing sa Japan, kumpleto na po ’yan 100%. (Our leading intervention is the rehabilitation of the MRT-3 commuter rail line to ease congestion on EDSA. The replacement rails from Japan are all here.”

Kukumpletuhin pa po namin ay ’yong mga various infrastructure projects lalo na ‘yong mga rail projects, namely ’yong Tutuban to Clark, MRT-7 na almost 50% complete na, ’yong subway natin magsisimula po ang actual excavation n’yan fourth quarter of this year, and we are targeting partial operability of three stations from Mindanao Avenue, North Avenue, at Tandang Sora by fourth quarter of 2021.” (We will complete various infrastructure projects especially rail, namely Tutuban to Clark. The MRT-7 is also almost 50% complete. Excavation for the subway will start in the fourth quarter and we are targeting partial operability of three stations from Mindanao Avenue, North Avenue and Tandang Sora by the fourth quarter of 2021), he said.

Cabinet Secretary Karlo Alexei B. Nograles said an executive order integrating all government efforts pertaining to the management of water resources “will be issued soon” in preparation for the creation of the Department of Water Resources and Water Regulatory Commission.

“This is in preparation for our Department of Water and the Water Regulatory Body that will be, hopefully, passed by Congress,” he said.

Mr. Nograles said the government will “soon” be convening the Legislative Executive Development Advisory Council (LEDAC) for the 18th Congress “para pag-usapan lahat ng direktiba ni Pangulo (to discuss all the President’s directives) with regard to his legislative agenda.”

Socioeconomic Planning Secretary Ernesto M. Pernia said his agency is currently completing the Socioeconomic Report which compares the administration’s performance in 2018 relative to the 2017-2022 Development Plan.

“This Socioeconomic Report looks at the accomplishments, the hits and the misses of the administration vis-a-vis the targets in the development plan in 2018. On the basis of this analysis, we are going to update the Philippine Development Plan, midterm update,” he said.

He added that the report will be coming out “at the end of the month or early next month.”

He said the update of the development plan is due by November. “So that we will have a fresh start in terms of the second half of the administration… So that we will be able to do better in terms of the misses and do better still in terms of the hits that were made in the 2018 for the second half of the President’s term. These accomplishments will pertain to investments in human capital, education, health, and nutrition, in terms of the employment matrix and in terms of the poverty matrix. These will be the bases (for evaluating) to what extent our efforts will be exerted so that the targets for 2022 can be achieved. Besides that, we are also going to look at the infrastructure projects that need to be pushed harder, to be accelerated, so that as many as possible of the infrastructure projects will be accomplished… at the end of the term of the President…” Mr. Pernia explained.

National Security Adviser Hermogenes C. Esperon, Jr. said the government will “strengthen” the country’s position in the West Philippine Sea.

“We will conduct more marine scientific research, put up lighthouses and use technology to take care of our maritime domain. We will use unmanned aerial vehicles and satellite imaging to take care of our maritime domain. That will therefore involve and strengthen our fisheries or fishing activities,” he added.

Social Welfare and Development Secretary Rolando Joselito D. Bautista said his department, along with other agencies, will start drafting the implementing rules and regulations of the Magna Carta of the Poor, the institutionalization of the Pantawid Pamilyang Pilipino Program, a cash transfer program for the poor, and the designation of Social Welfare Attachés for overseas Filipino workers.

He said he hopes to “ensure that by next year, we can conduct the necessary interventions with regards to the enactment of these laws.”

Separately, the Department of Labor and Employment (DoLE) said it submitted last week a draft of the bill that will establish the Department of Overseas Filipino Workers (OFWs).

Labor Secretary Silvestre H. Bello III told reporters Tuesday that the Palace has directed to prepare a bill establishing the OFW department.

“We have been (assigned) by the Cabinet to come up with a bill on the creation of the proposed OFW department and we have done that,” he said, adding that DoLE submitted the draft on Friday.

He declined to discuss further details on the draft bill, but Mr. Bello said that all current agencies dealing with OFWs will be absorbed by the proposed OFW Department.

“We’re going to put them under one department: POEA (Philippine Overseas Employment Administration), OWWA (Overseas Workers Welfare Adminsitration), NRCO (National Reintegration Center for OFWs), ILAB (International Labor Affairs Bureau), CFO (Commission on Filipinos Overseas) of the Office of the President, and OMWA (Office of Migrant Workers Affairs) of the DFA (Department of Foreign Affairs). ’Yun ang kukunin (Those will be put) under one department,” he said.

On Monday, Mr. Duterte said that he will create the proposed department. He called on his former aide, Senator Christopher Lawrence T. Go, to file a bill in the Senate.

Mr. Bello said that he and Mr. Go plan to discuss the establishment of the department. — Arjay L. Balinbin and Gillian M. Cortez

IFC, Singapore back PPP projects to support UHC

THE International Finance Corp. (IFC) and two arms of the Singapore government said they are backing projects to help ensure the efficient rollout of the Universal Health Care (UHC) Law via the design of Public-Private Partnerships (PPPs).

At the launch of Department of Health’s (DoH) first PPP program for UHC, IFC Country Manager in the Philippines Yuan Xu said: “Expanding access to health is a central element for any strategy to alleviate and reduce poverty. Health care is a basic human need and it is crucial to (nurturing) human capital.”

She added, “Access to affordable, quality health care is critical to economic growth and development. Poor health hinders economic growth. Every year, 100 million people (all over the world) fall below the poverty line as a result of health care costs.”

On Tuesday, the DoH launched the PPP program alongside the IFC, Singapore Cooperation Enterprise (SCE), and Temasek Foundation (TF), and the University of the Philippines (UP).

The program covers PPPs that will help meet the objectives of UHC and provide an avenue for the Philippines and Singapore to discuss PPPs especially for the health sector.

TF, a unit of the Singapore government investment fund Temasek Holdings, will be supporting the program via the donation of 582,282 Singapore dollars — around P21 million — while IFC and the DoH will be co-funding the program.

SCE assists foreign governments in achieving their development objectives, tapping the city-state’s public sector expertise.

Health Undersecretary Lilibeth C. David said partnerships will create opportunities to establish strategies for UHC that are cost-effective, competitive, and innovative.

“DoH recognizes the creativity of the private sector in providing innovative solutions to health care challenges and also their efficiency to address people’s health care needs,” she said at the launch. — Gillian M. Cortez