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Stuff to do at home (07/10/20)

Behind: An Online series on Movie making

The Film Development Council of the Philippines, in partnership with the Film and Media Arts International Academy, is conducting a series of Facebook live sessions every Friday and Saturday of July with lectures about movie making: from sound design to scriptwriting. On July 10, the session will talk about Production Management, helmed by Ronald Arguelles, channel head of Creative Programs Inc. at ABS-CBN (which includes CinemaOne) at 6:30 p.m. and Editing by editor and documentary filmmaker Cha Escala at 7:30 p.m. On July 11, the session will be about Production Design with Tracy Tang, the creative director of Film and Media Arts International Academy, and Cinematography with cinematographer Pantit Pablo. Both talks will be held at 7:30 p.m. The sessions will be livestreamed on the FDCP Facebook page.

Pantawid ng Tanghalan on its final week

Six productions from Tanghalang Pilipino’s repertoire are still available for free streaming on iWant and The Filipino Channel. The shows will be online until July 12 and are meant not only to entertain the theater group’s patrons while live shows are still prohibited under existing quarantine guidelines, but also to raise funds for the resident theater group of the Cultural Center of the Philippines. The six productions available online are Der Kauffman, Mabining Mandirigma, Sandosenang Sapatos, Pangarap sa Isang Gabi ng Gitnang Tag-Araw, Coriolano, and Lam-Ang: An Ethno-Epic Musical. The productions can be viewed on iWant and The Filipino Channel while those who want to donate to the group can do so via https://bit.ly/KTXPantawidNgTanghalan or via the theater group’s corporate account: Account Name: Tanghalang Pilipino Foundation Inc.; Savings Account Number: 3131-0387-46; Bank Branch: BPI — Harrison Plaza.

Virgin Labfest 2020: Kapit extended until July 15

Due to public demand, the Cultural Center of the Philippines’ Virgin Labfest 2020: Kapit is extending its run until July 15 on Vimeo. The festival of first-run one-act stage plays will continue showing its 15 main features alongside staged readings and revisited plays. Each play having English subtitles. To access the plays online, visit vimeo.com/ondemand/vlf2020kapit to subscribe and avail of the series packages. For more information, visit the official Facebook pages of the Cultural Center and Virgin Labfest.

Instituto Cervantes de Manila presents Los Santos Inocentes

Next in its ongoing “Classics With You” program, the Instituto Cervantes de Manila will be showing Spanish auteur Mario Camus’ film Los Santos Inocentes (1984), a story about a poverty-stricken family that grapples with the complications brought by the arrival of an aging brother-in-law who just lost his job. The film’s stars, Alfredo Landa and Francisco Rabal, won the Best Actor Award at the Cannes Film Festival in the same year. The film will only be available from July 11 to 12 at the Instituto Cervantes’ Vimeo page. To access the film, visit cultura.cervantes.es/manila/es/los-santos-inocentes/134433. The film will have English subtitles. The other movies to be shown over the next few weekends are The South (1983) by Víctor Erice; La vaquilla (1985) by Luis García Berlanga; and The Good Star (1987) by Ricardo Franco. Along with this film cycle, Instituto Cervantes and the Embassy of Spain in the Philippines present Cineclub Pelikula, an online cinema club. Video discussions conducted by writer and cultural activist Jessica Zafra will take place every Sunday, 5 p.m., on the Zoom platform. For further information and updates on this film series, check out http://manila.cervantes.es or Instituto Cervantes’ Facebook page: www.facebook.com/InstitutoCervantesManila

Lisa Macuja Elizalde in Romeo and Juliet

BALLET Manila present’s Lisa Macuja-Elizalde’s favorite roles from her Swan Song Series for streaming at its official social media pages (www.facebook.com/balletmanilaofficial) and (www.youtube.com/c/balletmanilaofficial). This week’s feature is Romeo and Juliet until July 10 (10 p.m.).

French films online

THE French embassy presents IFCinema a la carte, a festival of films from France and Africa, this month. While in normal years the films are shown in theaters across the country, this year the films will be shown online. Ten full features and 11 short films are being screened online at https://ifcinema.institutfrancaise.com/en/alacarte. All 21 films are subtitled in English and are available online until July 13.

New show at BenCab Museum

JOHN Frank Sabado’s solo show, Distinction, which is up at BenCab Museum’s Gallery Indigo until Aug. 2, can be viewed online at the museum’s exhibit Facebook page (https://web.facebook.com/pg/bencabmuseum/photos/?tab=album&album_id=3113556848702650). The exhibit features Mr. Sabado’s new series of intricate pen and ink drawings that take a deeper look into the distinct ethnic markers of the peoples of the Philippine Cordillera.

New beginnings

At the Threshold of New Beginnings is the title of a coffee-table book launched by the Rotary Club of Makati West (RCMW) last month. The book traces the history of RCMW starting from the tumultuous year of 1969 up to the last ‘old normal’ year of 2019 and even beyond, touching on the early months of the current global crisis.

This 200-page volume is a compilation of colorful stories about one of the Philippines’ premier Rotary clubs and its towering achievements. Produced during the term of 2019-2020 RCMW President Eric Tensuan, it was spearheaded by past president Dennis Decena as chairman of the book project.

Chief chronicler Santi Dumlao wrote a sweeping review of the club’s first half-century culminating in its 50th anniversary celebration chaired by past president Eric Angeles. RCMW’s luminaries such as Rotary International (RI) Director Guiller Tumangan and District Governor Tony Rufino contributed sidebar articles interspersed with Mr. Dumlao’s historical notes on events that shaped the nation and the world over the past five decades.

The golden jubilee year of RCMW coincided with the Rotary Club of Manila’s centennial as the first RI chapter in the Philippines and in Asia. Founded 115 years ago in Chicago by lawyer Paul Harris and his business associates, Rotary was the world’s first service organization. It has since grown to some 33,000 clubs in 200 countries with 1.2 million members today.

More than 500 Rotarians who joined this Makati Central Business District-based club are featured in the commemorative book, highlighting their involvement across the decades in the five avenues of Rotary service: community, vocational, youth, club, and international.

Among the signature projects distinctively identified with RCMW in Rotary circles are the Gift of Life program that provides free surgery to poor children with congenital heart disease; Alay Sining, an exhibit and sale of art pieces; Likhang Sining, a themed painting competition among public school students; and the Artificial Limbs project for amputee patients. This year, many club members participated in disaster relief efforts for victims of the Taal Volcano eruption as well as several COVID-19 initiatives.

Producing a book during the pandemic posed challenges to the project team, of which I took part as managing editor together with art director Elias Guerrero, photo editor Fides Tensuan, and print production director Edsa delos Santos. Our timeline was severely affected by the inability to meet face-to-face amid the lockdown. Through the use of Zoom technology and the valued assistance from RCMW’s secretariat, we were able to hurdle the obstacles and complete what Mr. Decena calls “a love creation with multiple parenthood.”

Mr. Tensuan aptly described the ‘new normal’ in the book’s afterword: “Rotary Clubs worldwide remain unbowed. While restricted in their physical movements, their desire to aid against this viral shroud draped over the planet remains undeterred. Members have seamlessly transitioned from analog techniques to digital means of enabling beneficial change.”

Life as we know it has changed drastically due to the raging coronavirus. But the “Service Above Self” motto of Rotarians should inspire us to survive this crisis and emerge stronger in the post-pandemic world.

 

J. Albert Gamboa is the CFO of Asian Center for Legal Excellence and chairman of FINEX Publications.

House to decide on ABS-CBN’s franchise on July 10

Lawmakers are expected to vote on the application of ABS-CBN Corp. for a franchise extension as they wrap up the scrutiny of the Lopez-led media network that had been ordered shut since early May.

Franz E. Alvarez, chairman of the House legislative franchises committee, said a technical working group would be formed to study and draft recommendations on ABS-CBN’s application to be presented to lawmakers on Friday afternoon.

During Thursday’s joint hearing of the House committees on legislative franchises, and good government and public accountability, a summary of points from the past 12 hearings was presented.

Deputy Minority Leader and Bayan Muna Rep. Carlos Isagani T. Zarate urged the members of the joint committees to grant ABS-CBN’s franchise application.

“Bigyan po natin ng isa pang pagkakataon na makapaglingkod ang ABS[-CBN] sa ating mamamayan at sa ating bayan. I-renew po natin ang kanilang prangkisa,” he said during the joint meeting.

(Let’s give ABS-CBN another chance to serve our people and our country. Let’s renew their franchise.)

He also pointed out various government agencies that cleared ABS-CBN of alleged violations in the past hearings.

On the issue of the citizenship of ABS-CBN Chairman Emeritus Eugenio “Gabby”L. Lopez III, Mr. Zarate quoted Department of Justice (DoJ) Assistant Secretary Nicholas Felix L. Ty who said: “From a legal perspective, it appears that there’s no distinction made between pure Filipino and dual citizens when it comes to participation on these activities.”

Mr. Zarate also cited Ephyro Luis B. Amatong, commissioner at the Securities and Exchange Commission (SEC), who said: “Our interpretation of the dual citizenship law has been similar to that of the Department of Justice, a dual citizen is 100% Filipino.”

On the issue of ABS-CBN’s alleged tax evasion, Mr. Zarate quoted Manuel V. Mapoy, Bureau of Internal Revenue commissioner for large taxpayers service, who said that ABS-CBN regularly paid taxes for the past years.

“Ang total payment po ng ABS-CBN from 2016 to 2019 ay inabot ng P15,382,423,364.16 (ABS-CBN’s total payment from 2016 to 2019 reached P15,382,423,364.16).”

Mr. Zarate also mentioned that the Department of Labor and Employment had affirmed that ABS-CBN cooperates in the process of clearing labor cases and that it abides by the law.

He said the Presidential Commission on Good Government, the Regional Trial Court and the Supreme Court had said that ABS-CBN should rightfully be given back to the Lopez family after Martial Law.

Moreover, Mr. Zarate said the Commission on Elections cleared ABS-CBN of any violation of election laws.

On the other hand, Sagip Rep. Rodante D. Marcoleta presented arguments opposing the grant of ABS-CBN’s franchise application.

“It must be emphasized that contrary to ABS-CBN’s submission, it is not the view of the SEC that matters here. It is not the opinion of the DoJ that will prevail, not even the BI (Bureau of Immigration) or other agencies. It is the will of Congress that should be accorded due respect.” he said.

On the issue of Mr. Lopez’s citizenship, the deputy speaker showed an immigration bureau notation that stated: “There is no proof of Filipino citizenship of his mother at the time of his (applicant’s) birth on 13 Aug. 1952. Allegedly his mother is also deceased.”

Mr. Marcoleta reiterated Section 11, Article 16 of the 1987 Constitution, which provides that: “The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.”

He insisted that the sale of Philippine Depository Receipts (PDRs) opened foreign ownership to the network.

Mr. Marcoleta also said that the National Telecommunications Commission (NTC) had confirmed that “ABS-CBN had no authority to encrypt or lock from the non-paying public its TV Plus Box channels, which are clearly only ‘free-to-air’ under its legislative franchise.”

He also raised ABS-CBN’s arrangement with Amcara Broadcasting Network. “Amcara has no shows of its own. It has no other client except ABS-CBN. This is usufruct, not block-timing,” he said.

He claimed that the network had doubtful title to its properties and reiterated the network’s supposed tax avoidance schemes through Big Dipper Digital Content and Design, Inc.

Mr. Marcoleta brought up the labor cases filed against ABS-CBN, and its alleged biased reporting. “It has been established and has become public knowledge that ABS-CBN aired the anti-Duterte ad paid for by ex-senator Antonio Trillianes IV,” he said.

Meanwhile, House Speaker Alan Peter S. Cayetano said the company’s franchise issue comes with a bigger picture beyond merely giving a franchise to a private company.

“Whatever the outcome of these hearings, I am satisfied [that] what we have heard can be the basis of a legal and morally sound decision.” — Patricia S. Gajitos

Are customer e-mails more important than messages from colleagues?

Our department head often tells us to give priority to our customers. This was tested last week, when my boss informed me of the complaints of my co-workers who claim that I don’t pay much attention to their e-mails. Incidentally, 90% of our workforce is working from home, including myself. I told my boss that I’m swamped daily with an average of 140 e-mails from customers and colleagues and I need to spend about 10 hours a day to manage them all. My boss told me rather philosophically that I need to be smart in dealing with all inquiries from both employees and customers without explaining how I can do it. Please give me your advice. — Tony’s Thunder.

A Japanese painter drew a small picture on a large canvas. In one corner of the painting was a small tree and on the limbs of a tree were birds and the image covered only one-eighth of the canvas. All the rest of the canvas was bare. When he was asked if the painting was complete. The painter said yes, adding:

“I have to leave room for the birds so they can fly.”

Many times, we fill up our daily schedule with so many things in work and in personal life that there is not enough room for our “birds to fly.” Because of our busy schedules, we miss out on what to do in an “open space,” even if we know that our customers should be given first priority according to Doug Conant, CEO of Campbell Soup, who clings to an important principle in people management:

“To win in the marketplace, we must first win in the workplace.”

Even if you pay attention to customers and prioritize their needs and wants, you will meet with little success without the cooperation of your colleagues. In fact, some of them could take revenge against you by withholding support, making your interaction with customers difficult. This brings us to an important principle in management that is corollary with Conant:

To win our customers’ hearts and minds, we must first win our colleagues’ hearts and minds.

You should not take your boss’s instructions literally. Surely, there’s always a better way of doing things in a digital workplace where practically everyone works from home. If we’ll look at it closely, I’m sure your colleagues’ e-mails will not account for more than half of your working time.

Assuming you got only around 20 e-mails a day from your colleagues, then that’s only 14% compared to 86% of e-mails from customers. It’s not much if you seriously think about it. But imagine the adverse implications for your working relationship with colleagues if you delay replying.

FIVE SMART SOLUTIONS
To give you some practical ideas on how to manage your daily e-mails, treat everyone as an important customer whose every inquiry must be managed as fast they pop up in your inbox. Regardless of whether you classify them as “external” or “internal” customers, you can do a lot with the following ideas:

One, spend only about three minutes or less answering every e-mail. That is, if you’re dealing with your colleagues. Otherwise, spend as much time as necessary when dealing with external customers. That’s because you have to project differently as you try to represent the organization. In any case, get to the point quickly and use simple words and phrases.

You can stall a bit by clarifying some issues by asking well-meaning questions: “Pardon me Eric, what kind of information do you want from me?” Or, you can ask: “Am I correct to assume that you want more information about ABC account?”

Two, keep your replies short and simple. The KISS (keep it short and simple) principle is a timeless approach for communicating effectively. Get to the point without leaving out important details. Use numerical markers like 1), 2) and 3) instead of “word” markers like “one, two or three” to separate one idea from another, unless you’re a newspaper columnist like me who follows the publisher’s style.

Another option is to use alphabet markers like a), b) and c) to separate one idea from another. This way, you can readily focus on each and every item.

Three, use the “touch move” rule from chess when replying to e-mails. Employ the “move your touched piece” rule as soon as you open an e-mail. Do something as soon as an e-mail pops-up in your inbox. You can ask clarifying questions or give a brief but professional one or two-liner reply.

Never open an e-mail and then procrastinate on the reply. Opening and then closing e-mails is counterproductive. You also avoid situations like forgetting about e-mails as you tackle other tasks.

Four, avoid CC-ing your internal and external customers. The era of typewriters and carbon copies is long gone. Times have changed. The real meaning of “CC” should be crowd control. That means giving only a copy of your e-mail to people who matter the most, not even your boss or department head, unless they are micromanagers.

Don’t commit the same mistake with BCC (“blind crowd control”) to avoid giving unnecessary, superfluous or confidential information which anyone can accidentally disseminate by hitting the “reply all” button.

Last, establish a 24-hour reply rule with your internal customers. If there’s an inquiry that requires a comprehensive or detailed answer, agree with your boss and work colleagues that everything will be answered within the day, at least during the lockdown. This rule should not be set in stone, allowing for exceptions to cover emergency situations.

When you return to your physical office and going eyeball-to-eyeball with colleagues, an e-mail reply can be dispensed with in favor of a short visit to your colleagues’ work stations. This is beneficial for your physical health as well, allowing time for your posture and eyes to recharge after all that time seated before a computer monitor.

GIVE ‘THANKS’ ALWAYS
“The art of effective e-mailing begins with how you end,” says Betsy Mikel in Inc.com. Citing a recent study of 350,000 e-mails by productivity software developer Boomerang, Mikel says “that certain e-mail closings deliver higher response rate.” From a list of familiar sign-offs like “sincerely,” “cheers,” “warmly,” “thanks,” “regards,” “best,” “take care,” “ciao,” “talk soon,” and many others, Boomerang discovers the best approach is when you “express gratitude” to people’s e-mails.

Since you spend so much time working even if you’re working from home, you need to practice simple and basic protocols with all people. You may be in deep with the work you need to get done, but there is no reason for you to simply ignore colleague e-mails in favor of those of your customers. Whatever you’re doing, take a deep breath to clear your head and write an e-mail in a calm, focused, and professional tone.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

How PSEi member stocks performed — July 9, 2020

Here’s a quick glance at how PSEi stocks fared on Thursday, July 9, 2020.


Peso strengthens as US stocks post record gains

THE PESO strengthened against the greenback on Thursday after gains in the US stock market.

The local unit finished trading at P49.41 per dollar on Thursday, gaining six centavos from its P49.47 close on Wednesday, data from the Bankers Association of the Philippines showed.

The peso opened Thursday’s session at P49.455 a dollar. Its weakest showing for the day was at P49.50 while its intraday best was at P49.39 against the greenback.

Dollars traded declined to $641.7 million from the $760.73 million seen the previous day.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso climbed on the back of less safe-haven demand amid gains in the US stock market.

“The peso exchange rate closed stronger partly on improved global market risk appetite amid new record highs in the US Nasdaq led by technology shares,” Mr. Ricafort said in a text message.

US stocks rose on Wednesday and the Nasdaq hit a record closing high, supported by technology shares as early signs of an economic rebound offset concern about further lockdowns due to a jump in coronavirus cases across the country, Reuters reported.

The Dow Jones Industrial Average rose 177.1 points or 0.68% to 26,067.28; the S&P 500 gained 24.62 points or 0.78% to 3,169.94; and the Nasdaq Composite added 148.61 points or 1.44% to 10,492.50.

Meanwhile, a trader attributed the stronger peso to grim job market conditions in the US.

“The peso appreciated from the weaker greenback as the US initial jobless claims report might remain elevated,” the trader said. New weekly data will be reported overnight.

Initial jobless claims slipped to 1.43 million in the seven days ended June 27 from the 1.48 million logged the previous week, data from the US Labor department showed, according to a Reuters report.

For today, Mr. Ricafort gave a forecast range of P49.30 to P49.50 per dollar while the trader said the local unit will move within the P49.35 to P49.55 levels.

PESO STRONGEST IN THE REGION
Meanwhile, the peso has remained to be one of the most stable Asian currencies as it maintains its strength against the greenback despite the ongoing coronavirus-induced crisis, the Department of Finance (DoF) said in its latest economic bulletin.

The DoF said on Thursday the peso was ranked first among four currencies in Asia that kept their value against the greenback, based on year-to-date changes as of July 8.

Citing data from Bloomberg, the Finance department said the local unit strengthened by 2.21% against the US dollar from Dec. 31’s P50.66 finish to Wednesday’s close of P49.53 per dollar.

This was the strongest in the group versus the Hong Kong dollar’s 2.07% appreciation during the same period, the Taiwan dollar’s 1.68% and the Japanese yen’s 0.87%, based on the data.

The four units were the only ones that strengthened against the greenback in that period out of 12 Asian currencies.

The 12 countries studied were China, Japan, India, the Philippines, Singapore, Korea, Thailand, Vietnam, Malaysia, Indonesia, Hong Kong and Taiwan.

The Thai baht posted the largest depreciation against the dollar with a 5.1% year-to-date change, followed by the Indian rupee which weakened by 4.97% from the start of the year, Malaysian ringgit’s 4.6% and Singapore dollar’s 3.66% change.

“The peso-dollar exchange rate also remains stable in 2020, its coefficient of variation at 0.73%, ranking third among 12 regional currencies and lower than the 1.86% Asian average,” the statement read.

The DoF attributed the Philippine peso’s strength and stability to the country’s strong balance of payments (BoP) position and increasing gross international reserves (GIR).

“These in turn boosted the confidence in the Philippine peso,” the DoF said

In the first five months of the year, the country’s BoP surplus hit $4.3 billion, narrower than $5.19-billion surfeit a year ago due to slower imports and outward payments given the dampened external demand.

Meanwhile, GIR increased 9.3% from a year ago to $93.3 billion at end-May, already exceeding the central bank’s projection of $90 billion for the year.

“Despite the pandemic and global economic contraction, strong macroeconomic fundamentals support the country’s favorable financial footing,” the DoF said.

“Manageable budget deficits and prompt adjustment of monetary settings in response to current developments help maintain investor confidence,” it added. — LWTN and BML with Reuters

Stocks drop as PHL virus cases exceed 50,000

LOCAL SHARES declined anew on Thursday on dampened investor sentiment as the Philippines’ coronavirus disease 2019 (COVID-19) cases breached the 50,000 mark.

The bellwether Philippine Stock Exchange index (PSEi) dropped 92.92 points or 1.47% to close at 6,192.58. The broader all shares index shed 38.23 points or 1.03% to end at 3,645.52.

“The PSEi ended in the red as the Philippines had a new highest reported COVID-19 cases in a single day (on Wednesday), putting worries on investors,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message.

The Department of Health reported 2,539 new COVID-19 cases on Wednesday, pushing the country’s total tally to 50,359, making the Philippines the second largest COVID-19 hotspot in the ASEAN region.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said this fueled investor worries that stricter quarantine measures might have to be put in place again, dashing hopes of an economic rebound.

“We may see the main index move lower and test support at 6,040 (on Friday),” Mr. Mangun said in an e-mail.

Across the world, COVID-19 infections hit 12 million cases, with the United States reporting a record 60,021 new cases in a single day. Global deaths as of Thursday have reached 549,508, according to data from Johns Hopkins University.

Despite the global scope of the crisis, overseas markets were still gaining on Thursday. Most Asian stocks were in green territory when the PSE closed. US markets also closed higher on Wednesday: the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices picked up 0.68%, 0.78% and 1.44%, respectively.

Ms. Alviar said one of the concerns of investors is the higher gross non-performing loans of banks as an effect of the pandemic. Preliminary data from the central bank showed non-performing loans increased in the past five months, which weighed on investor sentiment on Thursday, she said, as evidenced by declines in the financials and property indices.

The property index gave up 93.65 points or 3.07% to 2,953.95, while the financials index lost 10.69 points or 0.86% to 1,226.31. Other sectoral indices that ended in red territory were industrials, which fell 135.21 points or 1.73% to 7,644.66; holding firms, which slid 58.43 points or 0.88% to 6,538.39; and services, which dipped 2.26 points or 0.15% to 1,439.68.

The sole gainer was mining and oil, which rose 71.79 points or 1.33% to 5,481.08 at the end of Thursday’s session.

Value turnover stood at P5.09 billion with 1.42 billion issues switching hands, down from the previous day’s P8.72 billion with 2.39 billion issues.

Decliners beat advancers, 104 against 87, while 39 names ended unchanged.

Net foreign selling on Thursday grew to P649.66 million from Wednesday’s P376.29 million. — Denise A. Valdez

Amendments to AMLA needed to avoid gray list, council says

LEGISLATORS should expedite the passage of amendments to the Anti-Money Laundering Act of 2001 (AMLA) to ensure the Philippines avoids the “gray list” of jurisdictions deemed lax on dirty money, the Anti-Money Laundering Council (AMLC) said.

Noting the signing into law of the Anti-Terrorism Act of 2020 or Republic Act 11479 (RA 11479), “the same attention and commitment must be given to amendments to AMLA,” AMLC said in a statement on Wednesday evening.

“Failure to pass and to implement the amendments to the AMLA, as amended, before February 2021 will have similar effects, that is, the Philippines’ inclusion in the FATF (Financial Action Task Force) ICRG (International Co-operation Review Group) gray list,” it added.

Key revisions sought for AMLA are more subpoena power for the AMLC, and bringing tax evasion and terrorism financing charges withn the regulator’s purview.

Both chambers of Congress have yet to proceed beyond committee level on the AMLA amendments. RA 11479 was signed by President Rodrigo R. Duterte on July 3.

The Philippines is currently under a 12-month observation period that was extended to February 2021 from the initial deadline of the end of October. The period is intended to address the gaps in its anti-money laundering and counter-terrorism financing rules.

“It must be remembered that it is not enough to pass (RA 11479) because the Philippines is being assessed both on technical and effectiveness compliance,” the AMLC said.

“The country must also demonstrate effective implementation of (RA 11479) before the observation period ends in February 2021,” it added.

The AMLC said among the possible consequences of gray-listing include enhanced due diligence on transactions with the European Union. This could then translate to additional paperwork and costs charged to individuals and businesses.

Correspondent banking relationships could also be put under greater scrutiny, it added.

“Gray-listing would have an effect on international trade, remittances, and humanitarian financial flows that support economic growth and development,” the AMLC said. — Luz Wendy T. Noble

World Bank to act on $300-M loan for Agus-Pulangi rehab next year

THE World Bank said the estimated approval date of the $300-million (around P15 billion) loan to support the Agus-Pulangi Hydropower Complex Rehabilitation Project is Sept. 29, 2021.

The rehabilitation is expected to restore Agus-Pulangi’s deteriorating generating capacity, thereby raising the share of clean energy in Mindanao.

According to a document posted on its website Wednesday, the World Bank will appraise the project in July 2021.

It said rehabilitation of the Agus-Pulangi Hydropower Complex was proposed as the seven run-of-river hydropower plants (HPPs) are nearing the end of their operational life and have become “highly inefficient,” while the deteriorating infrastructure poses “significant safety risks.”

The project will be implemented in two parts, the rehabilitation of the power units and infrastructure of the Agus-Pulangi Hydropower Complex, and extension of capacity building and implementation support to the implementing agencies: the National Power Corp. (NPC) and the Power Sector Assets and Liabilities Management Corp.

“The rehabilitation will include generating and auxiliary equipment, control systems, civil structures and hydro-mechanical equipment and penstocks. Works will also be included to address key safety issues for the HPPs to meet international safety standards,” the document read.

The scope of rehabilitation will pursue three options depending on the condition of the facilities: restoring capacity and extending the operational lives of the power units; increasing the capacity and energy production on top of the first option; or additional rehabilitation in the event of potential flooding of the midstream Balo-i floodplains.

For the second component, the World Bank said the loan will also fund technical consultancy for the implementing agencies in project management and implementation.

The document also laid out the bank’s assessment on the environmental and social impact of the project. The Agus-Pulangi Hydropower Complex has six plants on the Agus River and one on the Pulangi River.

In the assessment, the bank said the project entails social risks largely due to the complex social context, including disputes on land and access to resources; armed conflict and violence; the presence of indigenous people opposing dam construction due to the impact on the Pulangi River.

“The CSO (civil society organizations) that sits on the Agus Hydropower Complex Multipartite Monitoring Board — Save Lake Lanao Movement — has disagreed with the NPC over the implementation of these conditions, particularly on reforestation and irrigation. Potential legacy issues will be assessed as part of the ESIA (environmental and social impact assessment),” it said.

The World Bank said it has no engagement with NPC so far and the implementing agency will have to strengthen its environmental unit to meet the requirements of the bank’s Environmental and Social Framework (ESF) standards. It said local governments and officials will also be trained to improve their awareness and capacity to comply with the ESF norms.

The World Bank gave the NPC a moderate rating on its capacity and commitment to manage the project’s risks and its familiarity with the Agus-Pulangi area.

It said external risks are also expected to be moderate for environmental concerns but are “substantial” on the social aspects due to ongoing conflicts.

“While the expected project investments are expected to be relatively minor, mainly through rehabilitation or replacement of equipment, the project site is beset with complex social issues that may affect the outcomes of the project,” it said.

“It is expected that all environmental and social (E&S) risk management plans will be prepared prior to Bank appraisal, and that the ESCP (Environmental and Social Commitment Plan) will focus on providing commitment around the implementation of these, including adequate resources and capacity building for managing E&S risks,” the bank said. — Beatrice M. Laforga

Philippine geothermal industry seen becoming world’s fourth largest

THE Philippines is expected to become the fourth-largest global producer of geothermal energy over the next decade, according to a report by Fitch Solutions Country Risk and Industry Research.

Fitch said the Philippines is one of the world’s geothermal “outperformers,” with high levels of installed geothermal capacity.

“By 2029, we expect that the Philippines will have the fourth largest installed geothermal capacity in the world, behind only Indonesia, the USA, and Turkey,” it said.

“This will come mostly from the country’s strong existing geothermal capacity and forecast limited growth in the renewables sector,” it added.

The Philippines is expected to increase its geothermal capacity to 2,098 megawatts (MW) over the next decade, adding 170 MW to present capacity.

Fitch based its growth outlook on its current 12% share of clean energy in the generation mix, not counting hydropower.

“However, a high level of existing geothermal capacity means that geothermal power will supply just over 70.0% of the total renewable electricity generation during this time,” it added.

The Department of Energy (DoE) has said it is preparing an order to bolster geothermal development.

Eto, proven na natin itong geothermal (We have already proven the capability of geothermal energy). Let’s go for it and regain our previous global standing as one of the top countries in geothermal development,” Energy Secretary Alfonso G. Cusi said.

According to the National Geothermal Association of the Philippines, private companies find it difficult to pursue “numerous” underdeveloped geothermal energy sources because of the “high risk and capital-intensive nature of exploring and developing these areas and the absence of a guaranteed rate under the Feed-in-Tariff (FIT) system.”

Lopez-controlled Energy Development Corp. (EDC), the leading geothermal energy developer, expressed its support for the DoE’s initiative, saying that prioritizing renewables will “help the economy attract more companies and investors who are making the pivot toward sustainable and ‘green’ practices in their business operations.”

There has been an uptick in retail electricity market customers subscribing to geothermal energy observed in the past years, said Marvin S. Bailon, EDC’s head of business development, trading, and marketing.

The total share of renewable energy in the generation mix was 21% last year from 23.38% in 2018. — Adam J. Ang

Dar lobbies for more resources allocated to agriculture

THE agriculture sector’s budget allocations were “measly” over the last 10 years, and out of all proportion to the industry’s contribution to the economy, Agriculture Secretary William D. Dar said.

“While the agriculture sector contributes about 10% to the country’s gross domestic product (GDP), it gets a measly share of total national appropriations, at 3% to 5% over the last 10 years,” Mr. Dar said at a hearing before the House Committee on Agriculture and Food Wednesday.

On Wednesday, Mr. Dar asked the national government for a P284.4-billion budget in 2021, more than three times its 2020 budget.

Under the proposal, Mr Dar said P61.8 billion will fund current DA programs in 2021 and P222.6 billion will go to new projects.

“The stakes are high. If we were to ensure that agriculture contributes its full potential in the country’s economic recovery in the ‘new normal,’ we need to augment the budget of the Department of Agriculture (DA),” Mr. Dar said.

If the proposal is approved, the DA said the rice industry will receive P56 billion; fisheries P22.5 billion; high-value crops P13.7 billion; livestock and poultry P11.2 billion; and corn P6.6 billion, with the aim of boosting output.

The DA plans to allocate P130 billion to support locally-funded projects, build farm-to-market roads, implement a soil health program, and help entice young farmer P7.15 billion for foreign-assisted projects such as the Philippine Rural Development Project; P3 billion for market development services; and P960.4 million for organic agriculture.

“In all, the budget is intended to sustain, reboot, and grow Philippine agriculture and fisheries sector, amid the challenges brought by the pandemic and into the ‘new normal,’” Mr. Dar said.

Quezon Province First District Rep. Wilfrido Mark M. Enverga said at the hearing that the budget request is just a wish list at the moment, due to the large jump in funding being contemplated. — Revin Mikhael D. Ochave

New Clark City being evaluated as agri-industrial site

NEW CLARK City in Tarlac is being positioned as a possible center for agri-industrial companies, following a partnership to pursue such initiatives between the Department of Agriculture (DA) and the Bases Conversion and Development Authority (BCDA).

The industrial processing sites are expected to provide facilities, capital and production know-how to small farmers, while generating more jobs, Agriculture Secretary William D. Dar said in a statement Thursday.

“New Clark City has the potential to jumpstart and sustain economic growth in the ‘new normal’ because of its vast agricultural resources and strategic location that grants access to markets in both northern and southern Luzon, including Metro Manila,” Mr. Dar said.

The lack of processing and transport are key issues in keeping farm incomes low. Surpluses cannot be tapped for use in preserved products, while middlemen step in to transport produce to markets and take a cut for this service.

Last week, Agriculture Undersecretary Cheryl Marie Natividad-Caballero and BCDA Vice-President Arrey A. Perez inspected a 30-hectare site in New Clark City for agri-industrial businesses. Some of the facilities being considered are modern multipurpose facilities and a national seed technology park.

The business corridor will complement the planned Clark Fresh Market to be constructed at the Clark Civil Aviation Complex. The market complex will feature an integrated post-harvest facility, catering to niche markets for organic produce, and halal-certified products and premium-quality food products.

BCDA President and Chief Executive Officer Vivencio B. Dizon said the planned agri-business corridor and the fresh market complex will generate thousands of jobs and boost the development of Tarlac, Central Luzon and Northern Luzon.

Mr. Dizon said the improved connectivity and other planned developments in New Clark City make it the best location for the project.

“This agri-industrial business corridor will not only enhance the productivity of our farmers, but will also boost economic activity in the region,” Mr. Dizon said.

According to Mr. Dizon, construction is expected to start by 2021.

Mr. Dar said the DA is evaluating agri-industrial business corridors at 12 new economic zones identified by the Philippine Economic Zone Authority. — Revin Mikhael D. Ochave