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AirAsia Philippines still keen on IPO this year

PHILIPPINES AirAsia, Inc. is hoping to pursue its plan to undergo public listing in the local bourse before the year ends.

AirAsia Group Chief Executive Officer Anthony Francis “Tony” Fernandes told reporters on the sidelines of Thursday’s Tourism Summit the company is preparing to raise “far greater” than $200 million for its initial public offering (IPO) in the Philippines soon.

“We’re moving in the right direction. Number one, the company is doing very well. We had a big board meeting today which tackled a lot of issues. And we had one more thing to solve with the board, and then I think we are ready to do an IPO,” he said.

“I’ve been saying it for a few years. But we are getting close. Hopefully we can do it this year,” he added.

The company first revealed its plans to launch its IPO in the country in 2016, but has been postponed several times.

Mr. Fernandes said AirAsia Philippines is “doing extremely well at the moment,” and once it conducts the IPO, the company is likely to prepare a float “far greater” than the numbers used in the past.

AirAsia has units in Malaysia, Indonesia and Thailand that are all listed in its respective bourses. The Philippines would be the last of its ASEAN units to conduct an IPO.

Mr. Fernandes earlier said once all AirAsia units are listed, he wants to swap all the shares of AirAsia Group in the respective companies into one company.

In the first quarter, AirAsia Philippines increased its capacity by 17% to 2.16 million passengers, and was able to carry 1.97 million passengers during the period, up 23% from in 2018. — Denise A. Valdez

US firms hire 275,000 workers in April, most in 9 months — ADP

US PRIVATE employers added 275,000 jobs in April, well above economists’ expectations and the most since last July, supporting the view of a solid domestic labor market, a report by a payrolls processor showed on Wednesday.

April’s robust figure might be overstating the strength of the jobs sector due to technical factors, said Mark Zandi, chief economist at Moody’s Analytics which jointly developed the employment report with ADP.

Job growth last month was likely in the 175,000 to 200,000 range, which is the current consensus range among economists, Zandi said on a conference call with reporters.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 180,000 jobs, with estimates ranging from 141,000 to 225,000.

Private payroll gains in the month earlier were revised up to 151,000 from an originally reported 129,000 increase.

While the overall labor market is “fine,” it is slowing, Zandi said.

The ADP figures come ahead of the US Labor Department’s more comprehensive non-farm payrolls report at 8:30 a.m. (1230 GMT) on Friday, which includes both public and private-sector employment.

Economists polled by Reuters are looking for US private payroll employment to have grown by 180,000 jobs in April, down from 182,000 the month before. Total non-farm employment is expected to have changed by 185,000. — Reuters

Breast cancer screening increases chances of survival for high-risk women

Dr Lim SiewKuan is a general surgeon at Mount Elizabeth Novena Hospital, Singapore where she specializes in breast surgery. She was in Manila recently to talkabout the rising incidence of breast cancer among Asian women.  In the Philippines, breast cancer is the leading cause of cancer deaths among women.  Majority of these cases are women diagnosed at the advanced stages of the disease where, despite the advances in treatment, survival is low.

There is also an alarming increase in breast cancer patients aged below 50. Medical professionals like Dr. Lim have been advocating breast cancer screening for all women aged 30 and up because at its early stages, breast cancer is highly treatable.

Here are the highlights of the interview with Dr Lim.

Q: Is there a particular type of woman or class of women who are prone to breast cancer?

Breast cancer risk is actually high across the female population. Among all the breast cancer patients, about 10 to 15 percent (of women) are with inherited genetic mutations, the most common of which is the BRCA gene.

A famous actress, Angeline Jolie, has this gene. For women like her, having this gene mutation will increase their risk or chances of having breast cancer by up to 70 to 80 percent. Not only that, the chances of them having ovarian cancer are about 40 percent.

Because this is a genetic mutation, it may be passed down to the future generations of a family. If an index patient is tested positive, we should then test the family members, because even the males in the family are prone to breast cancer and other types of cancer, like prostate cancer and other intra-abdominal cancers.

We will then advise patients with this gene about the risk and the available disease prevention strategies, which includes surgery (removal of the breasts with immediate reconstruction) and hormonal therapy.

Q: Men can also have breast cancer?

Yes. Actually one to two percent of all breast cancers happen in males.

Q: At what age should one have a test to determine the presence of the BRCA gene?

We do not recommend testing before a person reaches the legal age (18 or 21 years old depending on the country), as he or she should have the right to decide whether to or when to undergo testing. We want them to know exactly what they will be going through and fully understand the implications of genetic testing. For this reason, a pre-testing genetic counselling session is required. Besides, the cancers do not occur early in life. For a woman who is BRCA positive, we start tight surveillance at age 25, so genetic testing is best done between age 21 to 25. The test is very easy to do – a blood test or a saliva test.

Q: It is advisable for women to undergo screening for breast cancer at age 30?

In Singapore, screening for breast cancer for normal women without any symptoms, is advised when they reach age 40. In some countries, they advise screening at age 50.

However, because of many factors like unhealthy diet and changes in our lifestyle, we are seeing younger cases.  So we advise ladies after age 18 to do breast self- examination. If they find a lump or any other symptom like nipple discharge at any age, they need to have breast cancer screening immediately.

Q: Is surgery the best treatment for breast cancer?

Surgery is the main form of treatment for breast cancer unless the patient for a valid reason cannot undergo surgery. We have to remove the cancer cells, and also frequently use additional therapy (hormonal therapy, chemotherapy, radiotherapy, targeted therapy) to decrease the risk of recurrence.

Q: Why do women hesitate to undergo breast cancer screening?

I do know that many women are afraid to even go to a breast doctor or OB gynecologist. Cancer strikes fear in many women. We did a study of 1,000 women in Singapore about their perceptions of breast screening, and we asked why they do not go (for screening). Women in Singapore generally feel that if they do not have symptoms, they do not need breast screening. But the message we, in the medical community, want to get across, is breast screening is for all women, before symptoms are noted.

We highly recommend women to undergo breast cancer screening when they reach the age of 40 because breast cancer is very curable at the early stages. The 5-year relative survival rate of a person with stage 1 cancer is at 100 percent. However, if a patient is diagnosed with stage 3 or stage 4 cancer, the survival rate is significantly lower.

Q: Is there a correlation between breast implants and breast cancer?

Breast implants do not cause breast cancer that is commonly found in women. Implants have been linked to a very rare cancer that occurs in the capsule around the implant.  The cancer may develop several years (8-10 years) after the patient has the breast implant. The patient will initially feel breast swelling, tightening of the skin, and there may be a build-up of fluid around the implant.

This type of lymphoma is treated by removing the whole implant and the capsule. If detected early, it can be treated easily. However, if it has spread to other areas, chemotherapy will be recommended.

There are however, other problems (with implants) that may arise, and require further surgery in the future. For example, if the implant leaks or hardens with scar tissue, the body shape changes and the breasts are no longer symmetrical, or if the implant is displaced, we have to change or remove the implants. So we have to inform the patient of that.

Nowadays, younger patients tend to choose to use their own (body) tissue for breast reconstruction. This is a longer, more complex procedure because it involves taking tissue from the back, the tummy, or thigh. These would require surgery that would take an extra 8-10 hours.

We have to discuss all the pros and cons of each type of reconstruction with each patient. The decision for reconstruction is personal, and the final decision lies with the patient.

Q: When can a woman have breast reconstruction?

Most of the time, we do breast reconstruction immediately after mastectomy. If we plan a full breast reconstruction, we do not do the conventional mastectomy.

We would do a skin-sparing mastectomy:  we make a small incision, remove the underlying breast tissue while keeping the skin envelope (for the reconstructed breast). One of my patients describes it as ‘taking the pillow out of the pillow case and putting another one back in’. The best scenario is when the tumor is away from the nipple. In that case, we can actually keep the nipple and (the result) still looks very natural.

However, we do not advise patients who are frail, who are diabetic or who are smokers to have breast reconstruction because of the long hours needed for the procedure.

Q: For patients recovering from surgery, do you recommend any lifestyle changes?

I advise them to keep to a healthy diet, with more fruits and vegetables. Take adequate rest. And because we have a lot of data showing how exercise can decrease the morbidity of the treatment and the side effects of chemotherapy and hormone therapy, we advise them to continue to exercise throughout the treatment.

The treatment period is long, and patients may get depressed due to the physical and emotional stress they undergo. It is important to have a strong network of social support (family and friends) during this time. We also have a Breast Cancer Foundation with a hotline that patients can call for advice and trained volunteers, who are survivors themselves, are available to support them.

Q: What are the factors behind the increasing incidence of women with breast cancer?

Actually it is lifestyle changes. Singapore, for instance, has grown rapidly into a developed country over the last few decades and we have seen cases of breast cancer increase threefold. Interestingly, countries like the Philippines, China, India, have the same pattern. The rate of breast cancer in the cities is also much higher compared to the rural areas.

There are now significant changes in how women make reproductive decisions. In cities, women have children later in their life, and they have fewer children. Also, they don’t breastfeed for too long. Data shows that having a child before age 35, having more children or breastfeeding for more than a year, are factors that decrease the risk of having breast cancer.

The increased use of external estrogen or oral contraceptive pills to delay pregnancy also increases women’s risk of breast cancer occurrence.

We now know that exercise and healthy (low-fat and high-fiber) diets minimize the chances of having breast cancer.

Obesity is also a risk factor. After menopause, female hormones levels (which can cause cancer) are supposed to drop but the presence of fatty tissue keeps the hormonal levels higher than normal. This is why we see a higher breast cancer incidence among post-menopausal obese women.

Q:  As a female medical practitioner in Asia, have you ever felt at a disadvantage in your career?

No, I have been quite fortunate in Singapore, and I did not experience any discrimination because of my gender. When I decided to specialize in breast surgery, being a female doctor became a significant advantage instead, because female patients are more comfortable with women surgeons. I also feel that being a woman myself, I can empathize more with the psycho-social needs of my female patients and their families.

For more information about the Breast cancer and other condition, visit https://www.mountelizabeth.com.sg/healthplus

Health Plus is an online health and wellness resource developed by Mount Elizabeth Hospitals, Singapore.

To make an enquiry or appointment, contact our Central Patient Assistance Centre:
24-Hr Helpline: +65 6735 5000
Email: cpac@parkwaypantai.com
Online appointment: http://www.mountelizabeth.com.sg

Your Weekend Guide (May 3, 2019)

Pinoys to the World concert

THE Philippine Montessori Center Instrumental Ensemble (PMCIE) continues its journey as global Filipino musical ambassadors with Pinoys to the World: A Celebration of Filipino Musical Artistry, a concert series that began in the Philippines in February this year and will culminate in a string of performances in New York City, including a gala concert at the world-famous Carnegie Hall on May 31. The PMCIE will be accompanied by The Nightingales, a duo of former soprano soloists of the renowned Philippine Madrigal Singers. A send-off concert will be held at the Meralco Theater on May 3. For tickets, contact Preciouse Delicana at 911-4838 or 0917-657-6133.

The Dresser

REPERTORY Philippines presents The Dresser, a Ronald Harwood play set during the bombing of London in World War II as a a touring theater company prepares for production of King Lear. Sir, a tormented but brilliant thespian, arrives on set in a delusional state. Norman, his loyal dresser, does all he can to ensure that the show goes on. The play, directed by Loy Arcenas, stars Audie Gemora, Teroy Guzman, Jeremy Domingo, Tami Monsod, Robbie Guevara, and Justine Narciso. There are performances on weekends from May 3 to 26, with 3:30 and 8 p.m. performances at Onstage Theater, Greenbelt Mall 1, Paseo de Roxas St., Makati. Tickets are P1,200 and P1,500, are available through TicketWorld (891-9999, www.ticketworld.com.ph) and at the gate.

Wim Wenders films

THE Goethe-Institut presents the works of the acclaimed German filmmaker Wim Wenders who, along with Herzog and Fassbinder, was a principal member of the New German Cinema of the 1970s. Nine award-winning Wim Wenders feature films and a documentary will be screened for free every weekend at 4 p.m. until May 26 at the Cinematheque Centre Manila. To be screend this weekend are Alice in the Cities on May 4 and In the Course of Time on May 5. Admission is free on a first-come, first-served basis. There will also be subsequent screenings in the Cinematheque Centre in Davao from June 3 to June 30. Details will be announced soon. For more information about the Wim Wenders Retrospective, visit www.goethe.de/manila.

Summer at BGC

BONIFACIO High Street will transform into a giant fitness playground that offers a variety of free active lifestyle and wellness activities on May 3 to 5. Supplement this with a healthy diet from the organic fair.

Cinco de Mayhem

THE first-ever Cinco de Mayhem Music Festival — presented by ProMedia Productions — will be held on May 4 at the Vista Mall Daang Hari Open Grounds. Gates open at 1 p.m., program starts at 2 p.m. CDM will be headlined by local performers James Reid and Nadine Lustre, along with the Careless Music Manila crew: Astrokidd, Massiah, King WaW, and Curtismith, together with DJs from Quest, Kiana Valenciano, Divine Smith, DJ Euric, Deuce, Nix Damn P, and MC Marga Bermudez, along with special performances from event partner, RedBull’s award-winning performers. Adding a special touch to the proceedings are conceptual artists Leeroy New and Georghanno ABenoja. New will craft a large-scale installation from bamboom neon lights, mesh, rope lights and conduits. Tickets are still available at P3,500 (VVIP), P2,000 (VIP), and P950 (Gen. Ad). For more information and for ticket inquiries, visit Cinco de Mayhem’s official website, www.cincodemayhem.com. Like and follow Cinco de Mayhem’s official social media pages on Facebook and Instagram @cincodemayhemph for real-time updates and upcoming promos.

Party with Jose Cuervo

CELEBRATE Cinco de Mayo with Jose Cuervo which is holding three parties in Metro Manila on May 4. The parties will be at Poblacion, Makati City, with select partner bars in Don Pedro and Alfonso St.; at Pop-Up in Katipunan, Quezon City; and The Island in Bonifacio Global City, Taguig. Partygoers can enjoy five shots of Jose Cuervo tequila at partner bars for P300.

Blast from the past


STARS from the 1980s Raymond Lauchengco, Gino Padilla, Jett Pangan, Lou Bonnevie, and Jam Morales will perform in a concert called Into the ’80s on May 18, 8 p.m., at The Theatre at Solaire. Their repertoire includes hits from the decade, from Kenny Loggins and Prince to The Police, Sheena Easton to Spandau Ballet, Blondie to Kim Carnes, Bangles to Irene Cara, Whitney Houston to Wham, Billy Joel to Rick Astley, Kool and the Gang to Queen — and of course their own OPM hits. Tickets are availabel at Ticketworld (891-9999, www.ticketworld.com.ph).

Stimulating growth in the regions

MANDAUE CITY — With 10 days to go before the midterm national and local elections, there is growing concern about the power situation on May 13 following the series of rotational brownouts and “red alerts” triggered by recent earthquakes that rocked Zambales, Eastern Samar, and Surigao del Norte as well as the ongoing El Niño weather phenomenon.

The Department of Energy has reportedly pushed for the declaration of May 14 as an additional holiday to ensure brownout-free counting and tallying of ballots cast by an estimated 75% of the 62 million registered voters based on data from the Commission on Elections (Comelec).

This would ensure the easing of electricity demand while election results are still being finalized. Reliable power supply is crucial in upholding the integrity of ballots, since the voting and counting processes are done electronically. The Comelec has assured Filipinos that the 12 winning senatorial candidates will be proclaimed by May 27 while local election winners would be known within 24 to 72 hours.

An honest and credible election is necessary for the Philippine economy to continue growing and to maintain its high credit rating. Last month, S&P upgraded the country’s debt rating to an all-time high of BBB+ or two notches above the minimum investment grade, on the back of “consistent economic growth, solid fiscal accounts, and good position in the external environment.”

Meanwhile, political allies turned foes are contesting the top positions in this highly urbanized city, known as the industrial capital of Central Visayas with about 40% of Cebu’s export companies domiciled here. Mandaue City hosts more than 10,000 commercial enterprises, including the San Miguel Brewery, the Shemberg carrageenan manufacturing plant, and the Cebu International Convention Center.

It is also home to Arctura Petroterminal, a 4.3-hectare special economic zone with an offshore berthing facility strategically located along the Mactan Channel, a major shipping lane for international and domestic bulk carriers. Arctura’s bulk terminal and jetty facility caters to the storage and delivery needs of petroleum and liquid chemical industries in central and southern Philippines.

Independent oil and gas companies maintain their storage tanks in Arctura. The latest to operate there with its own dedicated jetty is South Pacific, Inc. (SPI), the country’s third biggest liquefied petroleum gas (LPG) firm whose main terminal is located at the Calaca Industrial Seaport in Batangas.

SPI’s two terminals have a combined capacity of 22,000 metric tons, equipping the LPG importer to have the largest storage facility in the Philippines. Bigger storage translates to economies of scale and enables the company to import products at a lower price.

“Our growth will come from the Visayas-Mindanao market. We plan to build six or seven more terminals in Iloilo, Bacolod, Tacloban, Cagayan de Oro, Davao or General Santos, and Zamboanga,” SPI President Inigo Golingay said.

At present, SPI’s LPG cylinders are loaded at the Arctura terminal-cum-jetty and delivered to smaller islands like Bohol and Romblon via its own shipping vessels using tank containers built to International Standards Organization specifications.

Mr. Golingay believes that LPG is a catalyst to stimulate growth in the country’s main islands because it is the more environment-friendly option and relatively cheaper per unit cost compared to firewood and charcoal. The Philippine LPG market has reached at total of 1.75 million metric tons annually, of which SPI had a market share of 14% in 2018 and is targeting 16-18% this year.

“Our cost is lower because we receive refrigerated products in bigger parcels, so the volume is bigger when it is cold inside. We are building terminals in the main islands to bring down costs. In other places, we will use ISO tanks as big as 20-footer container vans. We also invested in a marine loading arm to make operations safe and efficient,” according to Mr. Golingay.

Among Filipinos, LPG market penetration has remained at 30-40% due to issues of accessibility and purchasing power. Thus, the challenge for SPI is to penetrate the Visayas and Mindanao regions through competitive pricing and reliability of supply in its quest to capture the top two ranking in the LPG industry.

 

J. Albert Gamboa is CFO of the Asian Center for Legal Excellence and Chairman of the FINEX Golden Jubilee Book Project.

Four techniques to improve labor productivity

I saw a video you posted in your Facebook page about three Japanese professional footballers playing with 100 school kids in a friendly, entertaining soccer match. The game was won by the professional players. It appears in your post that you’re putting it forward as a good example on how we should focus on improving labor productivity. My question is this – how can we make it happen in our real work-life? — Just Asking.

How many people do you need to change a light bulb in Malacañang? The answer depends on your political views. If you’re pro-administration, you’ll proudly say — four persons: One to get a fresh bulb from the stock room. Another one to bring a stepladder into the Palace. The third to hold the ladder steady. And the fourth to actually replace the bulb.

If you’re with the opposition, the answer is: “None. People in Malacañang prefer to work in the dark.”

There are many variations of this light bulb joke on the Internet. This one is a local version that I use whenever I talk about labor productivity. Really, improving labor productivity is one of the difficult jobs that every people manager must face to constantly improve the overall efficiency of the workforce.

The trouble is that many managers, just like you, are at a loss on how to improve labor productivity. At times, you may even wonder why you’re stuck with every incompetent worker in the company. All things considered, there’s little question that improving productivity isn’t easy to do.

This includes the challenges of managing employee absenteeism and tardiness, scheduling overtime work, making do with available company resources, horse playing employees, and for some organizations, dealing with union-related problems. All of these issues must be dealt with before you can even attempt to make your department as productive as possible.

So, how are you going to do it? I will not give you the formula on how to compute labor productivity, but instead, I will talk about this oft-repeated mantra — “doing more with less.” To explain that in practical terms, let me give you the case of a hypothetical mobile phone manufacturer. Knowing that the demand for its popular new phone model is fast rising, its CEO demands that the management team improve its labor productivity by 20%.

The management team is weighing the pros and cons between the Western and Japanese styles of labor productivity improvement. How are you going to do it given that the phone manufacturer produces, let’s say, 100 units a month with 10 workers.

The Western approach is practical, simple, fast and easy to do. Terminate the employment of two workers and require the remaining eight workers to produce 100 units. On the other hand, the Japanese approach is a bit different. They will produce with as many as 120 units with the same number of workers — 10.

The Japanese approach can be a bit difficult to do but not if you know about Kaizen (continuous improvement). It is much better because it offers long-term benefits, not only for the organization, but for the employees, their families, and society in general.

To implement the Japanese approach of “doing more with less,” here are some basic and practical points that could help you improve labor productivity:

One, hire only people with the right attitude, not skills. All things being equal, hire only those who are willing to learn and be trained so they can fit into your organization. Be strict with the hiring and screening process. Announce the important qualities of people that you prefer to hire. And be serious about it.

Since it’s difficult to locate people with the right attitude, always be on the lookout for impressive individuals who are not actively seeking work. When they are not looking, observe them from afar and find out. If you’re convinced, invite them to join your organization.

Two, train people to have basic skills in quality and productivity. Don’t be afraid to invest in training and lose them over time. As long as you treat the workers well, they will stick to you for life. Pay them in accordance with their skills and their contribution to cost savings, among others. Create an army of problem-solvers out of ordinary workers.

Above all, make multi-skilling a norm. People with the most number of skills should be paid more. Instead of having one clerk and one secretary performing administrative support to the office, hire only one person who can perform the two jobs, and pay that person more than the industry average.

Three, outsource the non-core functions of your business. Allow a subcontractor with the right people, machinery, tools and expertise, among other things, to do it for you at the right price. Chances are, they can do it better and at a much lower cost. Monitor the performance of your subcontractors so they follow strictly your standards for quality, cost and delivery of products or services to customers.

Last, allow all workers to be active in your productivity quest. It’s easy to secure the cooperation of people when the idea comes from them. This is the principle of co-ownership. Management must be considerate when employees have a different view about certain policies and procedures. Be an active listener and give all suggestions a fair hearing. Don’t ignore ideas just because they are flimsy or trivial.

ELBONOMICS: If you start something today, you’ll get there in no time.

 

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

Prime Infra hopes to get go signal for Wawa project next week

PRIME Metroline Infrastructure Holdings, Inc. (Prime Infra) of tycoon Enrique K. Razon, Jr. is expecting the government’s green light for its plan to develop the Wawa Dam in Rizal.

“The project is calendared for Metropolitan Waterworks and Sewerage System (MWSS) board of trustees’ approval next week, May 9, 2019,” Prime Infra said in a statement Thursday.

The infrastructure company said it wants to bring in 80 million liters per day (MLD) of raw water supply by 2021, and more than 500 MLD by 2025.

“We look forward to the endorsement of MWSS to authorize its concessionaire, Manila Water [Co., Inc.], to move forward with this high priority project.“ Mr. Razon was quoted as saying in the statement, noting the Wawa water supply project had already been turned over by the MWSS to President Rodrigo R. Duterte.

He earlier said the company is investing around P20 billion to fund the plan to build a 500-MLD water supply facility at the Wawa catchment. This is the first venture of Mr. Razon, whose main business includes ports and casinos, into the water business.

Part of Prime Infra’s project is ensuring the water supply security of Manila Water with the new water source, and immediately delivering 80 MLD in two years.

“Wawa JVCo. will be responsible for the raw water supply source development, while MWSS concessionaire, Manila Water, will treat the water and distribute to east zone customers,” it said, referring to the joint venture of Prime Infra and San Lorenzo Ruiz Builders & Developers Group, Inc. — Denise A. Valdez

How PSEi member stocks performed — May 2, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, May 2, 2019.

 

Malacañang grants victory lap to economic team after S&P upgrade

MALACAÑANG said on Thursday that the sovereign credit rating upgrade issued by Standard & Poor’s (S&P) confirms the positive impact of policies implemented by the government’s economic managers.

S&P on Tuesday raised the Philippines’ long-term credit rating to “BBB+” from “BBB.”

In a statement, the President’s Spokesperson Salvador S. Panelo noted that a higher credit rating means a borrower country is a “creditworthy sovereign that can have access to a wider pool of funds.”

“This is the highest credit rating in the economic history of the Philippines,” he added.

Mr. Panelo attributed the rating to the performance of President Rodrigo R. Duterte’s economic managers.

He said “the economic team of the President has done a splendid job in putting the economic house in order and spearheading bold economic reforms, in cooperation with Congress, in bolstering the domestic economy, which is projected to become a top-25 economy.”

The reforms, he added, “include tax reform, liberalization of the rice sector, strengthening of the Bangko Sentral ng Pilipinas charter, ease of doing business, relaxing the foreign investment negative list and modernizing infrastructure, among others.”

Mr. Panelo said the President “understands that a thriving economy under an environment free from drugs, crime and corruption is essential to bring our people to a life which is comfortable and secure.”

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo was quoted as saying in a statement from the Investor Relations Office (IRO) Tuesday: “With such an upgrade, this would bring more interest among foreign investors to participate in the growth process and in the end, further establish and strengthen the upward trajectory of the Philippine economy.”

In the same statement, National Treasurer Rosalia V. De Leon said the upgrade is a “recognition of our sound policies on liability management.”

“We have kept our debt in check — even as we invest more on infrastructure and social services. We are committed to fiscal discipline, and this makes the Philippines a truly creditworthy sovereign in the eyes of the international financial community,” she added. — Arjay L. Balinbin

Power panel passes amendments to EPIRA IRR

THE Joint Congressional Power Commission (JCPC) on Thursday approved amendments to the implementing rules and regulations (IRR) of the Electric Power Industry Reform Act Law (EPIRA) to facilitate the granting of benefits to host communities.

“We want to empower and to give the benefits as quickly as possible to the LGUs (local government units),” Senator Sherwin T. Gatchalian, who co-chairs the JCPC, said in a hearing.

He said there are “P6 billion to be released to the LGUs and because of red tape and complication of the process. This P6 billion is not being utilized by the LGUs,” he said.

The Department of Energy, upon the issuance of Department Circular 2018-08-0021, proposed to directly remit the benefits to communities hosting power generation facilities, which was not addressed in the current IRR of Republic Act 9136, or the EPIRA Law.

The circular calls for all financial benefits which accrued from Oct. 26, 2018 to Dec. 25, 2018 to be directly remitted within 15 days. For the succeeding quarterly billing periods, the benefits are to be remitted also within 15 days following the end of each billing quarter.

The EPIRA Law requires generation companies to provide financial benefits equivalent to P0.01 per kilowatt-hour of total electricity sales to the host community.

Energy Secretary Alfonso G. Cusi said the proposed circular “would really help deliver the money faster to the host community and the host community will be able to make use of it.”

“There are something like P6 or P7 billion that has been stranded over time. This money should have been used much earlier, so we hope now with this circular, the host community would be able to implement their projects in a timely manner,” he told the panel.

The DoE, through the DC 2018-03-0005, also proposed to include indigenous peoples as beneficiaries, which was also approved by the JCPC in the same hearing. — Charmaine A. Tadalan

Dispute breaks out over RCEF funding as DA insists on P10B

THE Department of Agriculture (DA) has signaled that it will claim the full amount of P10 billion once tariffs start generating funding for the Rice Competitiveness Enhancement Fund (RCEF), arguing that a P5 billion advance provided in 2018 was meant for other rice projects.

“There was confusion on the initial P5 billion that was released to the DA on Dec. 28… it’s meant to support the rice program of the DA,” Agriculture Secretary Emmanuel F. Piñol said in a briefing Thursday.

“Definitely, the P5 billion is not part of RCEF,” he said, with the liberalization of rice imports only implemented this year, while the initial P5 billion was given last year.

The RCEF is meant to be funded by tariffs generated by rice imports, raising P10 billion each year to improve farmers’ access to financing, rice seed, machinery and know-how, among others.

He said that the DA has fully allocated the P5 billion released in December, with P4 billion going to the regions before the end of 2018, and P1 billion set aside for lending programs.

The Department of Budget and Management (DBM) has requested for the latter to be returned to help finance the acquisition of rice drying facilities and other equipment.

The financing will be provided by LANDBANK and the Development Bank of the Philippines, which will charge 2%.

National Economic and Development Authority (NEDA) Assistant Secretary Mercedita A. Sombilla has said that the P5 billion was meant to be used for projects that meet the RCEF mandate while the Rice Tariffication Law, which authorizes the RCEF, was still being implemented.

The Rice Tariffication Law aims to bring down the price of rice by liberalizing the imports of cheap foreign grain.

The need to support farmers while imports increase their footprint in the market is intended to help make them more competitive. The threat of more imports has already exerted pressure on domestic prices of palay, or unmilled rice, reducing farmer incomes and highlighting the need for them to be more cost-efficient.

“I talked to Secretary Mon (Ramon M.) Lopez and he agrees that that amount should not be part of the RCEF. Binalik lang naming ’yung P1 billion para lang makatulong na hindi na masyadong maghanap ng pera ang gobyerno [We returned the P1 billion to help ensure the government is not pressed for funding],” Mr. Piñol said.

He said the DA will initiate a dialogue on the matter.

For the deployment of the actual RCEF funds, he said, “We are still in the process of organizing the project steering committee… when organized, I will ask all the agencies involved in the RCEF to make a presentation of their programs. As the only accountable officer for the P10 billion, I will have to ask them to present their project proposals and I will have to make sure that money really goes to the rice farmers.” — Vincent Mariel P. Galang

Solar irrigation rollout targeted for early 2020

THE Department of Agriculture (DA) and various other agencies have agreed to fast-track the Solar-Powered Irrigation project so the network will be largely in place by the next El Niño.

“Today with NIA (National Irrigation Administration) and BSWM (Bureau of Soils and Water Management), we agreed to fast-track the project because this is the only way we can protect our farmers from next El Niño,” Agriculture Secretary Emmanuel F. Piñol said in a briefing Thursday.

“We have to fast-track it because if hindi namin mahabol [the system is not in place] by early 2020, 2021 [will be the next window for] implementation,” he said.

Currently, the dry spell has caused crop damage worth P7.96 billion with an estimated volume of 447,889 MT worth of output lost.

The interagency committee met today to draft the national irrigation map (NIM), a plan which hopes to identify more areas for food production along with the needed water resources.

An Israeli company, LR Group, has offered to fund the deployment of 6,200 solar-powered irrigation units for P44 billion. These units have the capacity to irrigate 500,000 hectares, out of the over two million hectares estimated to be in need of irrigation.

“(LR Group) agreed that as things stand now, they are not part of the project because it will be a government-to-government engagement. We are waiting for a document from the Israeli government for a Memorandum of Agreement (MoA) on the solar-powered irrigation system project cooperation,” he said.

The Philippines has a total of 3.9 million hectares of farmland, with only 1.2 million hectares effectively irrigated.

After the document is studied by the DA’s legal team, it will be signed by the DA and the Israeli government. Then, the department will submit a proposal to the National Economic and Development Authority -Investment Coordination Committee (NEDA-ICC), which will then approve the project, setting up a Swiss Challenge, where alternate providers can submit better bids while LR holds the option to match them.

The funding plan calls for repayment within 10 years and a grace period of two years. The total cost of the project is P50.5 billion, including counterpart funding of P6.6 billion.

Mr. Piñol said the DA hopes to submit the proposal to the NEDA-ICC by June.

Mr. Piñol added that the current dry spell struck at a time when many crops were being harvested or had reached maturity. As a result, the DA is maintaining its 20 million metric-ton (MT) target for rice this year and 8.64 million MT for corn. — Vincent Mariel P. Galang