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Bill filed removing non-teaching responsibilities from teachers, opening School Health and Safety Offices

A LAWMAKER has filed a bill which removes non-teaching responsibilities from the shoulders of teachers and faculty members in state-run schools. Among this non-administrative work is manning the school clinic and the guidance office, and the like.

Bohol 3rd district Representative Alexie B. Tutor has filed House Bill 4232, titled the “School Health and Safety Act,” which aims to establish School Health and Safety Offices (SHSO) in each public school to be manned by qualified and licensed personnel so that the teachers can focus on teaching.

Early this year, think tank Philippine Institute for Development Studies released a study urging the Department of Education to review the workload of public school teachers who also have administrative duties, which may affect their quality of teaching.

The SHSO is envisioned to be “a potent front line health care delivery center strategically placed within schools to serve students, their parents, and their teachers,” said Ms. Tutor in her explanatory note.

Under the measure, schools with populations of up to 1,000 should have one medical doctor, a nurse, a dentist, a nutritionist, a guidance counselor, and a psychiatrist.

Schools with a population of more than 3,000 are required to have two medical doctors, three nurses, two dentists, two nutritionists, two social workers, one guidance counselor, a psychologist, a psychiatrist, a psychometrician, and three emergency medical technicians.

“School health, security, and safety manpower in our public schools is grossly inadequate. At the DepEd, the school nurse-to-student ratio they are following is 1:5,000 and the allocation of the school nurse items is not by school, but by school division which means by province or by city,” said Ms. Tutor, who is also the vice-chairperson of the House health committee.

Aside from medical personnel, the bills also provides that schools should have plumbers, volunteer firefighters, electricians, and utility workers.

The measure also calls for enough security guards in public schools to prevent crimes and entry of illegal drugs in campuses.

“There is also the urgent need to keep illegal drugs from physically entering campuses and being used and sold to students and school personnel. Moreover, it has become necessary to strengthen preventive anti-drug abuse campaigns among students, their parents, and the teachers,” said Ms. Tutor. — Vince Angelo C. Ferreras

Duterte directs agencies to revert accounts payable to state coffers

PRESIDENT Rodrigo R. Duterte has issued an executive order directing all national government agencies to revert all accounts payable which “remain outstanding for at least two years and for which no actual claim has been filed” to the national coffers.

Executive Secretary Salvador C. Medialdea, by authority of Mr. Duterte, signed on Aug. 13 Executive Order (EO) No. 87 titled: “Directing that all accounts payable which remain outstanding for two years or more in the books of national government agencies be reverted to the accumulated surplus or deficit of the general fund, or the cumulative result of operations of the national government.”

The President’s EO noted that various agencies continue to accrue prior years’ accounts payable in their respective books of accounts.

“The existence of prior years’ accounts payable in the books of accounts of agencies unnecessarily immobilizes public funds, hampers efforts to determine the actual financial condition of the national government, and hinders effective resource planning and allocation,” the EO said.

Accounts payable from prior years need to be reexamined and kept at manageable levels to facilitate the preparation of transparent, accountable and realistic disbursement and annual expenditure programs, it noted.

The directive covers all documented accounts payable for fiscal year 2016 and years prior.

“All documented accounts payable which remain outstanding for at least two years, for which no actual administrative or judicial claim has been filed, shall be subject to automatic reversion,” it added.

As for the undocumented accounts payable, the EO said they shall automatically be reverted regardless of the year they were incurred.

“The recording of undocumented accounts payable in the books of accounts of agencies shall be strictly prohibited,” it added.

The order applies to all accounts payable of all national government agencies, except trust or fiduciary funds, for as long as the purposes for their creation have not been accomplished; and accounts payable corresponding to foreign-assisted projects.

Failure to comply with the EO, which takes effect immediately, shall be grounds for appropriate sanctions and/or administrative action, it said. — ALB

Faster spending, consumption to boost economic growth

FASTER state spending, slower inflation and robust overseas remittances are seen to boost economic growth this semester, according to the latest joint assessment by the First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P).

In their Market Call report published Friday, FMIC and UA&P said they expect manufacturing sector to improve in the coming months and spending on infrastructure and construction to “strongly bounce back” this semester.

“We believe that PH growth will improve significantly in the last two quarters of the year as we expect National Government (NG) spending to ramp up in H2-2019. Softer inflation and higher peso equivalent of the remittances should also drive further economic activity,” the report stated.

“We see huge spending on infrastructures and capital outlays during the 3rd and 4th quarters of 2019 (i.e., DPWH projects). Besides, NG still enjoys more than enough fiscal space remaining until the end of the year,” it added.

Overall, they said gross domestic product (GDP) growth might settle in the lower part of their 6-6.5% forecast range for the year.

Top government officials on Tuesday said they are seeing a pick up in August expenditures and positive growth for the rest of the year following big disbursements in July and the usual behavior of spending to “grow very fast” in the last quarter.

Latest available data showed government spending in July picked up by 3.43% to P339.4 billion from a year ago but the cumulative spending in the first seven months was still down by 0.11% at P1.93 trillion in the same comparative periods.

Economic managers and economists have blamed the first half’s slower-than-expected 5.5% GDP growth to the four-month 2019 budget delay and the National election ban in May which left projects unfunded, especially infrastructure ones.

FMIC and UA&P said consumer spending will likewise increase for the rest of the year following easing inflation and higher overseas remittances.

Meanwhile, the analysts expect August headline inflation to settle below the 2% mark due to “slower upticks” in goods, lower oil prices and electricity rates on a downward trend and even less than 1.5% by October.

Headline inflation eased to a 31-month low of 2.4% in July, also slower than the 2.7% in June. In the first seven months, inflation averaged 3.3%, past the midpoint of the central bank’s 2-4% target range and still above the downward-revised 2.6% full-year forecast.

The Bangko Sentral ng Pilipinas (BSP) is also expected to further slash its policy rate by 25 basis points (bp) and banks’ reserve requirement ratio (RRR) by 200 bps following dovish remarks from the central bank chief, they added.

Last Tuesday, BSP Governor Benjamin E. Diokno said the market can expect another 25-bp cut in benchmark rates within the year and a possible RRR cut before the Monetary Board’s Sept. 26 policy meeting. — Beatrice M. Laforga

PAFMIL asks for extension of Turkish flour anti-dumping duty

FLOUR MILLERS are seeking for a five-year extension of the anti-dumping duty on Turkish flour due to expire in 2020.

In a statement, the Philippine Association of Flour Millers (PAFMIL) said it has already sent a letter to the Department of Agriculture seeking for it to endorse its request to the Tariff Commission (TC) for the review of the expiration of the anti-dumping duty on wheat flour from Turkey.

The TC announced the initiation of a review of the levy’s expiry on Aug. 29, while a preliminary conference is set on Sept. 9.

Under Republic Act 8752, or the Anti-Dumping Act of 1999, a petition for extension should be filed six months before expiration.

The TC imposed an anti-dumping duty of up to 16.19% on Turkish flour on Jan. 8, 2015 after it considered to be a threat to local manufacturers. The levy is due to expire after five years or on Jan. 8, 2020. An expiry review will determine whether there is a need to extend the duration of the duty.

“PAFMIL claims that there exists a need to extend the dumping duty on Turkish flour due to the likelihood of recurrence of dumping and again becoming a threat to the local industry which is still recovering from losses caused by dumped Turkish flour in the past,” the group said in a statement.

Turkey is considered to be the world’s top flour exporter, processing 18 million tons of flour for both domestic and export markets, but still lacks in capacity. According to PAFMIL, the Philippines is the third biggest market of Turkish flour after Iraq and Syria.

“Turkey exported $68.5 million worth of wheat flour to the Philippines in 2012, representing eight percent of Turkish total wheat flour export. Iraq and Indonesia also imposed additional duties on Turkish flour,” PAFMIL said.

The PAFMIL is composed of seven flour milling companies, namely Universal Robina Corp., RFM Corp., Liberty Flour Mills (LFM), General Milling Corp., Wellington Flour Mills (WFM), Pilmico Foods Corp. (PFC) and Philippine Flour Mills (PFM). The group was joined by San Miguel Mills, Philippine Foremost Milling Corp., Atlantic Grains Inc., and Asian Grains and Morning Star Milling Corp. in its petition for the extension of the anti-dumping duty. — Vincent Mariel P. Galang

PhilRice targets to distribute seeds for next year’s dry season by October

THE PHILIPPINE Rice Research Institute (PhilRice) is targeting the distribution of seeds starting October for the next planting and harvesting season.

Iyong ibang mag-aani ng September, pag harvest nila, magstart na naman yung planting nila for the dry season, so ang tinatarget natin na distribution nung ating mga seeds ay from October to December para just in time for the planting next year (There are those who will start planting after harvesting this September in preparation for the dry season, so we are targeting to distribute seeds from October to December just in time for the planting season next year),” Flordeliza H. Bordey, deputy executive director for special concerns on the implementation of the Rice Competitiveness Enhancement Fund (RCEF), said in a chance interview.

Ms. Bordey said as of July 18, the agency has received a Special Allotment Release Order (SARO) from the Department of Budget and Management amounting to P2.09 billion of the P3 billion allotted for the seed program of the RCEF.

Asked for an update, she said in a text message that the notice of cash allotment is yet to be received by PhilRice.

Broken down, P1.99 billion will be used for buying of seeds, while the remaining P100 million will be used for extension services.

Despite not receiving the budget yet, she said the agency is doing all preparatory activities, which include securing the source of the seeds.

Yung pakikipag-usap namin sa mga seed grower cooperatives and associations na magiging sources noong ating binhi…. Naka-ready na sila…. Ipapa-certify sa National Seed Quality Control Services yung kanilang mga binhi, so ensured tayo na iyong supply ng binhi natin ay mayroon sa takdang panahon (We have reached out to seed grower cooperatives and associations who will be our sources of seeds…. They are ready…. Their seeds will be certified by the National Seed Quality Control Services so seed supply is ensured),” she explained.

Roughly one million farmers will benefit from the initial distribution of certified seeds of inbred rice varieties.

Initially, Department of Agriculture-accredited groups will be receiving the seeds and then “eventually yung mga (the) individual members ng mga (of these) organizations na ito, sila yung (are our) target natin sa (for) seeds,” Ms. Bordey said. — Vincent Mariel P. Galang

DoubleDragon unfazed by POGO crackdown

By Arra B. Francia, Senior Reporter

DoubleDragon Properties Corp. on Friday said its diversified portfolio will help shield the company from adverse effects of the crackdown on the offshore gaming industry.

DoubleDragon Chairman and Chief Executive Officer Edgar J. Sia II said the company’s total exposure to Philippine Offshore Gaming Operators (POGOs) is currently at 12%. For DoubleDragon Plaza in Pasay City, about 60% of the 130,000 square meters (sq.m.) in the area is leased out to POGOs.

Of this, 80% are Chinese, while the remaining are a mix of Korean and European firms.

“Just in case, we’re covered…the location where they are is very prime, we think one year is more than enough to replace,” Mr. Sia told reporters after the company’s annual shareholders’ meeting in Pasay City on Friday.

Mr. Sia noted that they require one-year’s worth of rental security deposits from tenants — on top of complete post-dated checks for the entire lease term, protecting them from sudden changes in their tenants’ leasing plans.

Investors have become cautious of property firms since the Chinese Foreign Ministry called on the Philippines to ban all forms of online gambling involving Chinese citizens. There are currently 60 POGOs licensed by the Philippine Amusement and Gaming Corp., 48 of which are operating.

The government estimates about 130,000 Chinese workers are employed by POGOs.

The Bangko Sentral ng Pilipinas and Anti-Money Laundering Council have since started studying the risks of having POGOs in the country.

Amid the tighter regulations against POGOs, Mr. Sia said they would like the sector to continue operations in the country.

“We would like that to continue because they have better yields and we think also it might continue,” Mr. Sia said.

He earlier explained that they are able to get 29% yields from POGO tenants, compared to a 14% yield from traditional offices or business process outsourcing (BPO) firms.

Office leasing is one of DoubleDragon’s four business segments, with the others being retail leasing, industrial leasing, and hotels.

“In just five years, DoubleDragon has built a portfolio of 603,000 sq.m of leasable space…As these properties contribute to DoubleDragon’s rental revenues, the underlying hard assets likewise continue to appreciate,” Mr. Sia said in a speech during the stockholders’ meeting.

DoubleDragon’s net income attributable to the parent more than doubled to P1.52 billion in the first half of 2019, compared to P744.69 million in the same period a year ago. This came amid a 54% jump in gross revenues to P5.59 billion.

Shares in DoubleDragon climbed 1.69% or 40 centavos to close at P24 each at the stock exchange on Friday.

CPG seeks to convert 3 billion common shares into preferred shares

COMPANY HANDOUT

CENTURY Properties Group, Inc. (CPG) is seeking approval from its shareholders to convert three billion common shares into preferred shares with a par value of 53 centavos each, for future fundraising activities.

In a disclosure to the stock exchange Friday, the Antonio-led property developer said its board of directors has approved the reclassification of the preferred shares.

“The company’s reclassification of the three billion common shares to preferred shares is a capital raising activity which the company views as more beneficial to the Company’s interests as there will be no increase in the Company’s debt-to-equity ratio,” CPG said.

The board also amended its previous decision to increase its authorized capital stock to P10.95 billion as part of the issuance of the preferred shares. Its authorized capital stock will now remain at P9.54 billion.

Once the company secures shareholder approval, the amendments will be filed with the Securities and Exchange Commission (SEC).

The company’s board will also determine the terms of the preferred shares once the transaction gets the SEC’s nod.

Preferred shares typically have no voting rights, but are prioritized in the distribution of cash dividends.

CPG has committed to spend P30 billion in capital expenditures over the next three years, as it looks to construct more projects across the country. This includes the expansion of its leasing assets and launch of more residential communities in Pampanga, Quezon City, and Makati.

It targets to book P2 billion in leasing revenues by next year on the back of its aggressive expansion.

Aside from its office and in-city residential projects, the company is also expanding its affordable housing project under the Phirst Park Homes brand.

CPG’s net income rose 63% to P704.56 million in the first half of 2019, on the back of a 24% uptick in gross revenues to P5.45 billion.

Shares in CPG ended flat at 58 centavos each at the stock exchange on Friday. — Arra B. Francia

Recto files bill seeking to renew ABS-CBN franchise

A BILL seeking to renew the franchise of ABS-CBN Corp. for another 25 years has been re-filed at the Senate.

Senate President Pro Tempore Ralph G. Recto filed Senate Bill No. 981, as the media giant’s franchise is set to expire by end-March 2020.

In the bill’s explanatory note, Mr. Recto described ABS-CBN as the country’s “largest entertainment and media conglomerate in terms of revenue, operating income, net income, assets, equity, market capitalization, and number of employees.”

“Despite the growing popularity of social media, television still remains as a preferred mass medium in our provinces and other far-flung areas,” he said.

“ABS-CBN has remained steadfast in its commitment to reach out to as many Filipinos as possible by delivering their quality core programs closer to our countrymen by taking advantage of emerging broadcast technologies,” he added.

Nueva Ecija Rep. Micaela S. Violago last month filed a similar bill at the House of Representatives.

To recall, President Rodrigo R. Duterte has repeatedly expressed his opposition to the renewal of ABS-CBN’s franchise.

But Presidential Spokesperson Salvador S. Panelo previously said it is up to Congress to decide on the fate of ABS-CBN, not Mr. Duterte.

ABS-CBN reported its attributable net income grew by 89.2% to P856.35 million in the first quarter of 2019, driven by a 24.4% increase in advertising revenues at P5.4 billion.

Meanwhile, a bill was also filed at the House renewing the franchise of ABS-CBN’s telecommunication unit ABS-CBN Convergence, Inc. for another 25 years.

The Lopez-led media giant is focusing on boosting its digital business this year, as it faces the possibility that its legislative franchise would not be renewed. — Vince Angelo C. Ferreras

BPI to issue Swiss franc-denominated green bonds

BANK of the Philippine Islands (BPI) will issue its first two-year, 100-million Swiss franc-denominated, negative-yielding green bond, proceeds of which will be used to fund environmental projects through its Green Finance Framework.

In a disclosure to the local bourse on Friday, the Ayala-led bank said it priced on Aug. 29 its ASEAN green bond amounting to 100 million Swiss francs bonds at 100.040% with a re-offer yield of -0.02%.

This is the first Swiss franc-dominated issue out of the Philippines carrying an annual coupon rate of 0.00%.

The bonds will be issued on Sept. 24 and are due on Sept. 24, 2021.

“The net proceeds from the bonds will be used for the financing and/or re-financing, in whole or in part, of “green” eligible projects, as further described in BPI’s Green Finance Framework,” the statement read.

This is the first ASEAN green bond for BPI and the first rated Philippine green bond in international capital markets.

This is another drawdown from its $2-billion medium term note (MTN) program, the bank said.

BPI Capital Corp., Credit Suisse and UBS are the lead managers for the transaction.

BPI’s Green Finance Framework was established in June, providing guidelines for any green bonds or loans issued by the bank including the evaluation and selection of eligible projects, management of proceeds, and reporting, among others.

The lender established its $2-billion medium-term note program in June last year.

In its maiden drawdown from the MTN, BPI raised $600 million in August last year via five-year senior unsecured fixed-rate bonds quoted at 4.25%.

The Ayala-led lender posted a net income of P7.01 billion in the second quarter, up 46.8% from a year ago.

BPI shares went up by 45 centavos or 0.51% to close at P89.95 apiece on Friday. — BML

Peso strengthens ahead of first round of US tariffs

THE PESO ended stronger on Friday ahead of the first tranche of the planned tariffs by the United States on some Chinese-made goods on Sept. 1.

The local unit closed at P52.05 against the dollar on Friday, 13 centavos higher than the P52.18-to-a-dollar finish on Thursday.

The peso opened the session at P52.17 against the dollar. Its highest point for the day was logged at P52.04, while its lowest showing was at P52.18 versus the greenback.

Dollars that changed hands on Friday amounted to $989.53 million, lower compared to Thursday’s $1.148 billion.

“The peso strengthened [on Friday] on easing trade tensions after the US said that it would proceed with the scheduled September trade talks and China pledged not to impose any interim retaliatory tariffs,” a trader said in an e-mail on Friday.

The local unit went up as “there’s a bit improvement in the rhetoric between the US and China. We’re mirroring this move,” another trader said in a phone interview.

The US and China signalled the resumption of trade talks as the two countries discussed the next round of negotiations next month.

This, as the US will start collecting 15% tariffs starting this Sunday on more than $125-billion worth of Chinese-made goods.

Another 15% levy will be imposed on some $250-billion Chinese imports starting Dec. 15.

Chinese commerce ministry spokesman Gao Feng was reported by Reuters as saying: “The most important thing at the moment is to create necessary conditions for both sides to continue negotiations,” he said during a weekly briefing, adding that China was lodging “solemn representation” with the United States.

A separate Reuters report on Friday said trade negotiating teams from Chinese and US sides are maintaining “effective communication,” according to China’s Foreign Ministry. — Mark T. Amoguis

PSEi bounces back on trade talk relief

By Arra B. Francia, Senior Reporter

THE main index bounced back to end the month at the 7,900 level, riding on the positive sentiment in Wall Street after China said it will not immediately retaliate against the United States’ tariff increase this Sunday.

The 30-member Philippine Stock Exchange index (PSEi) climbed 1.10% or 86.85 points to close at 7,979.66 on Friday. The broader all shares index likewise rose 0.92% or 43.71 points to 4,809.48.

“PSEi ended higher amid trade developments on US-China and month-end window dressing,” Philstocks Financial, Inc. said in a market note.

The stock barometer however ended 0.82% lower on a monthly basis due to volatility brought about by the trade war and fears of a US recession.

China’s commerce ministry reportedly said they would not immediately respond to the latest round of tariffs announced by US President Donald J. Trump concerning $300 billion worth of Chinese goods starting Sept. 1.

The same spokesperson said both sides are now discussing when their trade negotiators could meet next month.

“Equity markets gained confidence following the positive development in the U.S.-China trade negotiations, but concerns over the global economy kept prices near the multi-year peak,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

With this, the Dow Jones Industrial Average jumped 1.25% or 326.15 points to 26,362.25. The S&P 500 index rallied 1.27% or 36.64 points to 2,924.58, while the Nasdaq Composite index firmed up 1.48% or 116.51 points to 7,973.40.

Asian counters however ended mixed, with Japan’s Nikkei 225 up 1.19% or 243.44 points to 20,704.37. The Hang Seng index eked out gains of 0.01% or 1.36 points to 25,704.86, while the Shanghai Composite slippeed 0.16% or 4.68 points to 2,886.24.

Locally, mining and oil was the lone counter that ended in the red, slumping 0.19% or 16.01 points to 8,250.52. The rest moved to positive territory, led by services which rose 3.07% or 48.32 points to 1,623.75, as shares in telco rivals Globe Telecom, Inc. and PLDT, Inc. gained 5.51% and 4.8%, respectively.

Financials went up 1.29% or 23.39 points to 1,833.28; holding firms gained 1.02% or 80.01 points to 7,922.86; industrial firmed up 0.54% or 59.43 points to 11,126.30, while property added 0.18% or 7.14 points to 3,998.

Turnover rose to P9.74 billion after some 1.31 billion issues switched hands, higher than the previous session’s P8.44 billion.

Advancers trumped decliners, 126 to 72, while 35 names were unchanged.

Foreign investors snapped their seven-day net buying streak as net inflows reached P409.13 million, against P419.63 million in net outflows on Thursday.

Running your business the Alibaba Way, with Joshua Aragon

1. Retail isn’t an online or offline experience — it’s both. (3:06-3:40)
Since the advent of e-commerce, there’s been a lot of debate on whether retail should remain brick-and-mortar or fully migrate online. For several experts, it’s not an either-or situation. It can exist on both domains as a holistic and effective experience, creating what we call “new retail”.

“[It’s] about bridging the gap… and using user data [from] both online and offline to create an omnichannel that would meet customers’ expectations,” said Aragon.

“It basically lets the business understand what the customer behavior is, their buying patterns, their customer portraits, and making sure that when [they] arrive at that store, they already know what [they’re] going to buy.”

2. Keep track of the best kinds of toys… (4:24-4:43)
This ability to anticipate customers’ needs relies on relevant information from several key factors:

a. Consumer: Knowing your customers locations and habits can tell you a lot about what they need and want. ADD

b. Environment: It’s also important to know the different ways the environment can influence your customers. Knowledge in this area can also get you a step ahead in certain aspects of your business, such as logistics.

c. Business: “Business always keeps on changing, that’s why you always have to adapt [to] the patterns,” said Aragon. “In the US or in China, retail shops are closing. And that’s because the businesses weren’t able to translate what the people really want.”

d. Technology: Invest in technology that can help make your processes easier and more efficient. Also, keep track of the latest apps and tech that customers are using: it can be as simple as joining a platform marketplace to increase sales.

3. … and the marketplace can become your playground. (5:56-6:27, 9:21-9:38)
With both offline and online platforms and tons of information at your fingertips, the possibilities are truly endless. Get creative with the ways that you can integrate these aspects so that you can offer the best experience to your customers.

Consider Alibaba’s TMall. Aside from being able to purchase from its online platform, you can also go to their physical malls and purchase items through a vendo machine using QR codes.

TMall’s neighborhood convenience store is a great example of using data to lessen friction. Its LST system can recommend products to be stocked in a store based on demographics and purchasing behavior of customers around its area.

4. Invest in maximizing the customer journey… (10:28-10:38, 11:51-12:13)
A customer’s purchase journey can be a treasure trove of information, but only if you know where to look. Evaluate the process from start to finish, and you’ll identify key points from which you can unlock great insights.

For instance, Alibaba utilizes machine vision technology while customers consider products to analyze their facial expressions. They also use movement tracking and heat maps to identify which areas in their malls the customers are flocking to.

If these examples seem to advanced, try to revisit available services that you may be taking for granted. While utilizing chatbots and reading customer reviews may seem so simple in theory, they can effectively glean ways to improve your products.

5. … and challenge your network while you’re at it. (11:34-11:44)
Customer experience isn’t the only thing that you can help improve on during the purchase journey. Identify where your network gets involved in the process and think of ways that can help them exceed their current performance.

Part of the data that the Cainiao Network track is the delivery performance of their delivery providers. At the end of the year, they display their rankings to customers while assessing with the bottom-placers how they can improve.

“Business owners have egos; they will say, ‘Why am I ranked 10?’” said Aragon. “So they will try to work better and better everywhere to make sure that all deliveries are properly managed.”

Those interested in applying for the Alibaba eFounders Program can find more information at this link. The upcoming program class will take place from Dec 2 to 12. The deadline for applications is on Oct 7.