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Summer is officially here: PAGASA says El Niño may run until August

THE Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) declared the official start of the dry season on Friday, saying that the El Niño phenomenon may last until August.
“With this development, the day-to-day weather across the country will gradually become warmer, though isolated thunderstorms are also likely to occur,” said state weather bureau in a statement on Friday, March 22.
However, PAGASA said that extreme Northern Luzon may still experience the occasional northeasterly wind flow.
The weather bureau also noted that the ongoing weak El Niño, which is affecting large areas of the country, may result in prolonged dry spells and hotter air temperature in the coming months.
In a press briefing, PAGASA deputy administrator for research and development Flaviana D. Hilario said: “’Yung pong ating El Niño… ang forecast po as of now ay hanggang August. ’Yung dating June ay medyo tumaas yung probability, more than 50% [or] around 60% ay pwedeng hanggang Agosto ay meron tayong El Niño.” (We forecast that El Niño will last until August. After the previous report that it may last until June, the probability got higher, more than 50% or around 60% is the chance that we might experience El Niño until August.)
Meanwhile, PAGASA climate monitoring head Analiza S. Solis said during the press briefing that 55 cities and provinces have been officially experiencing dry spell as of March 19, with the provinces of Ilocos Norte, Zamboanga Del Sur, Zamboanga Sibugay, Maguindanao, and Sulu have been experiencing a drought since Feb. 28. Of the 55 areas, 28 are in Luzon, 12 in Visayas, and 15 in Mindanao.
“Ito po yung mino-monitor at tinitigan ng PAGASA kung itong mga areas under dry spell sa kasalukuyang panahon ay magpo-prolong pa o magtutuloy-tuloy pa in next coming months, April, May, and June,” said Ms. Solis. (We are monitoring if the dry spells in these areas will continue in the next coming months, from April, May, and June.) — Vince Angelo C. Ferreras

No more hearings on water situation — GMA

HOUSE Speaker Gloria Macapagal-Arroyo said on Friday that she is planning to cancel any further congressional meetings on the water situation and would rather focus on addressing Metro Manila’s water supply rather than discuss the idea that Manila Water Company, Inc.’s customers not be billed this month.
In an ambush interview with reporters on Friday, Ms. Macapagal Arroyo said she did not want to discuss reports that the Metropolitan Waterworks and Sewerage System (MWSS) plans to study not billing Manila Water’s customers for this March due to the water shortage.
“I don’t want to get into those proposals like that… I read from the papers that the regulator wants to do that (and) that’s their business. What we’d like to see is the water coming back to the tap,” she said.
The Speaker of the House said that she is planning to cancel hearings on the water shortage since they have already heard the the concerned stakeholders’ plans to address the problem.
“As far as the Congress Oversight [committee] is concerned, we want to see the solutions — immediate, short-term, and long-term — soon. So we already had our briefing and I think that’s it. I’m going to ask the Congress to terminate already the hearings because they’ve already heard what they have to hear for the immediate term,” Ms. Macapagal-Arroyo said.
Ms. Macapagal-Arroyo presided over a House meeting on the Metro Manila water supply problem this week. The water crisis first started when the La Mesa dam, the emergency water source for Manila Water, fell below the critical level of 68 meters above sea level (masl), leading to dry faucets in Manila Water’s concession area.
An immediate solution to the water crisis, she pointed out, is reopening the pipes between Manila Water and the other concessionaire, Maynilad Water Services, Inc., in order for the later to share its supply with Manila Water. Two pipes were opened last Thursday while 48 more are still being repaired in order to improve the flow of water from Maynilad to Manila Water.
Ms. Macapagal-Arroyo also noted that another immediate solution they are looking into is having more stationary water tanks to further address water interruptions in selected areas.
Manila Water also recently resumed its operation of the Cardona water treatment plant, which would have prevented the water shortage had it’s opening not been delayed for three months. Ms. Macapagal-Arroyo said that the resumption of operations is one immediate solution, adding “The Cardona plant is part of the solution of using the Laguna Lake as drinking water.”
Meanwhile, the China-funded Kaliwa Dam project is pegged by the House Speaker as the “longer term solution.” The dam, whose construction has not started, is planned to be operational in 2023. — Gillian M. Cortez

Duterte EO bans junkets

PRESIDENT Rodrigo R. Duterte has issued an executive order prohibiting “all forms” of junkets for government officials and employees, and the conduct of planning workshops and team building activities abroad.
Citing the need to update the “outdated” rates of expenses and allowances for official travels, Mr. Duterte signed Executive Order (EO) No. 77 on March 15 which “prescribes the rules and regulations, rates of expenses and allowances for official local and foreign travel by government personnel.”
Section 19 of the EO states: “All forms of travel junkets shall be strictly prohibited. The conduct of strategic planning workshops or team building activities abroad shall not be allowed.”
“If travel circumstances, such as the nature of activity, purpose and itinerary, indicate that the trip is mainly intended for personal purposes, no part thereof shall be considered as official.”
The EO further says that taking personal leave immediately before or after an official activity is “highly discouraged.”
Also not allowed are trips funded fully or partially by suppliers or contractors with “pending requests or application or future dealing with any branch, department, bureau or office of the National Government or LGUs concerned.” The prohibition covers “invitations to travel purportedly to undertake study or assessment of the proponents’ capabilities as such contractors or suppliers.”
Foreign travel authorized under this EO refers to international conferences or meetings to which the Philippine government has commitments; scholarships, fellowships, trainings, and studies abroad which are grant-funded or undertaken at minimal cost; and invitations for speaking engagements or receiving of awards from foreign governments or institutions whether fully or partially funded by the government, upon the endorsement of the Department of Foreign Affairs.
Officials traveling on the government’s dime must take economy class (but not premium economy class). But certain officials — department secretaries, undersecretaries, assistant secretaries and those with equivalent ranks — may take business class for long haul flights, which are defined as flights exceeding four hours without counting lay-overs.
The Office of the President will have to approve all foreign travel by government officials and employees “regardless of the length of travels abroad and the number of delegates.”
Those who travel abroad, according to the EO, will be granted a daily subsistence allowance (DSA) based on the daily rates established by the International Civil Service Commission (ICSC) of the United Nations.
Pre-departure expenses not exceeding P3,500 will be allowed to cover expenses like taxi fares, passport processing, immunization and medical laboratory fees, photographs, porterage, airport terminal fees, among others.
Government officials and employees who travel abroad are also entitled to a clothing allowance if the trip will last for more than one month. They will receive $200 to $400, depending on the number of months of their trip. — Arjay L. Balinbin

Angara calls for amendment of PHL water code

SENATOR Juan Edgardo M. Angara is proposing to amend the 43-year-old Water Code of the Philippines to ensure that there is enough water “across the country at all times.”
Mr. Angara, in a statement released on Friday, said the water problem in Metro Manila and Rizal “brings to light the urgent need to put in place an integrated water resource master plan for water security.”
”With the dry spell getting severe each year, climate change and increasing population, it is imperative that we secure all available and accessible water resources,” he added.
“Every year our water dams drop to critical levels. Unless we address these and come up with long-term and integrated solutions, we are all in trouble,” he said.
Hence, the lawmaker is proposing to amend the 43-year-old Water Code of the Philippines, or Presidential Decree No. 1067. “We have to make the law more responsive to the needs of the times,” he said.
This should include an “audit of all government agencies and institutions dealing with water resource and its management whose functions seem to be teeming with duplication.”
Over 30 agencies manage and oversee the country’s water resources notes a 2018 study by Arangkada Philippines.
“This is a very complicated environment, and rather than come out with a timely response to water problems, it may be impeding our government agencies,” Mr. Angara said.
He also said that the government should appoint an “anti-El Niño czar” who will “orchestrate a multiagency response to the dry spell, which is already causing farm harvest to dip.”
For her part, Senator Loren B. Legarda released a statement on Friday saying “The La Mesa Dam breaching critical level, the lowest in years, and the dry climate outlook for most of our provinces in light of the weak El Niño and climate change should serve as a reminder for all of us to use our water resources more sustainably, also as a means to protect public health, food security, and ecosystems.”
Citing the “confirmation” by the Philippine Atmospheric, Geophysical and Astronomical Services Administration that 2019 “is set to be the warmest year on record” due to El Niño, she said: “We must treat this issue as a climate change concern and not just a water supply issue. The El Niño phenomenon is a natural process, but its varying effects are compounded by climate change.” — Arjay L. Balinbin

Duterte’s ending peace talks is nothing new — Sison

COMMUNIST Party of the Philippines (CPP) founder Jose Maria C. Sison said that the latest call of President Rodrigo R. Duterte to permanently end the peace talks with the communist party is nothing new.
“Duterte is like an old broken record repeating ad nauseam his termination of the GRP-NDFP [Government of the Republic of the Philippines-National Democratic Front of the Philippines] peace negotiations. As far as the NDFP is concerned, Duterte formally killed the peace negotiations on Nov. 23, 2017 with his Proclamation 360 terminating them,” said Mr. Sison in a statement released late Thursday evening, March 21.
The President said on Thursday that he is ending the peace negotiations and told the communist rebels just to talk to the next administration.
“I am officially announcing the permanent termination of our talks between the government panel and the Communist Party of the Philippines,” said Mr. Duterte during the 122nd Philippine Army Founding Anniversary at Fort Andres Bonifacio in Taguig City.
He added, “My sense is that maybe you can talk to the next President of this republic one day.”
The exiled communist leader said that Mr. Duterte is just “merely driving more nails into the coffin of the peace negotiations under his regime” as he continue to use armed conflict as an excuse to impose on the people a de facto martial law nationwide.
“Instead of peace negotiations at the national level by the duly-authorized panels of the GRP and the NDFP, what Duterte wants is fake localized peace negotiations staged and controlled by the military and military-occupied Office of the Presidential Adviser for the Peace Negotiations,” said Mr. Sison.
Mr. Sison said that he is still hoping for the resumption of peace talks under the next administration.
“The GRP-NDFP peace negotiations can be resurrected in the future by a new GRP administration. The Duterte regime is not eternal. It can be finished with the success of the oust movement, with the end of his term in 2022, or with his certain overthrow as he forces his way to a fascist dictatorship,” he said.
Meanwhile, the Armed Forces of the Philippines (AFP) said that cancelling the peace talks was the right move.
“Dapat lang (It should be). Thirty-one years of deceptive ploys using peace talks, across five administrations, only resulted to more terrorist NPAs being released, an opportunity for the CTG [communist terrorist groups] to recruit and recover lost areas of influence, publicity for Joma [Sison] in the international arena as a ‘dove,’ wasted government funds spent for negotiations and junkets, opportunity losses for investments and development because of prolonged and intermittent fighting,” said AFP deputy chief of staff for civil-military operations Brig. Gen. Antonio Parlade, Jr. in a message to reporters on Friday.
Mr. Parlade added, “They had their best chance when peace was offered again to them by PRRD [President Rodrigo R. Duterte], offering cabinet posts in good faith for them to help in good governance but they blew it by attacking projects, killing society forces, and even innocent civilians.”
Malacañang announced on Thursday that a new panel will be created to pursue localized peace talks with members of the communist movement, particularly those fighting on the ground, in line with the government’s new whole-of-nation approach to end the 50-year armed struggle. — Vince Angelo C. Ferreras

18 Chinese arrested for access device fraud, illegal online gambling

EIGHTEEN Chinese nationals were arrested for access device fraud and illegal online gambling, the National Bureau of Investigation (NBI) reported on Friday.
Not only did the NBI find evidence of access device fraud — crime that involve credit or debit cards, ATM cards, bank cards, etc. in electronic monetary transactions — but they said that the Chinese nationals also operated illegal online casino websites.
The NBI said in a statement that the Chinese nationals were arrested after the Regional Trial Court Branch 66 of Capas, Tarlaca issued a search warrant for Royal Genghis International Development Inc., located at Savers Mall, McArthur Highway, Balibago, Angeles City.
“Sufficient information warranting the application of the Search Warrant was based on the verification process and surveillance operations conducted by the NBI operatives,” NBI said.
During the search, the NBI seized evidence such as “mobile phones, desktop computers, laptops, blank java cards, skimming devices, debit cards, unused sim cards, flash drives, routers, and network hubs” in the premises.
The Chinese nationals will undergo an inquest before the Department of Justice (DoJ) for violating the Access Devices Regulation Act and the Illegal Gambling Law. — Gillian M. Cortez

ADB sees PPPs aiding universal health care implementation

By Denise A. Valdez, Reporter
AN international consultant at the Asian Development Bank (ADB) said public-private partnerships (PPPs) are instrumental in the implementation of the recently signed Universal Health Care Act.
ADB International Consultant Prakash Rao said the limitations of government budget are a common hindrance among developing economies to fully realizing a universal health care policy.
“The lack or the limitation of the financial ability of governments to be able to continually finance in a sustainable manner health infrastructure and health services is one of the key reasons why governments started looking at private sector involvement, not only for capital but also for service delivery,” he said at the Universal Health Care forum organized by the PPP Center of the Philippines on Friday.
Mr. Rao said the partnership between the public and private sectors is beneficial to both parties as it allows the government to bridge gaps in resources and the private sector to minimize risks in expansion.
He noted health PPPs may range from simple interventions such as allowing the private sector to provide non-medical services such as security, parking, laundry and canteen, to more comprehensive and complex approaches such as full hospital operations.
“Health PPP fundamentally consists of partnership agreements between the public and private entities, where in the Department of Health engages a private healthcare provider…with the aim to achieve overall policy objectives,” the ADB consultant said.
The Universal Health Care Act, which President Rodrigo R. Duterte signed into law last month, aims to extend the benefits of the Philippine Health Insurance Corp. to all Filipinos.
While the government works on the law’s implementing rules and regulations (IRR), Health Secretary Francisco T. Duque III earlier said adequate funding is necessary for the policy’s success.
For Mr. Rao, the government must note the important role that the private sector could play in augmenting this funding, while ensuring that the responsibility of providing healthcare services to communities still lies on the government’s shoulders.
“The engagement of the private sector does not mean giving away the outcomes of the overall healthcare delivery process. It continues to be with the government… The involvement of private sector is to ensure that they are actually being delivered as per the policy. The government can control, have the oversight and see that the requirements are being met on a sustainable basis,” he said.
“Healthcare infrastructure represents a signifiant cost for countries, and therefore PPPs do play a very important role in ensuring that you are able to build the infrastructure and provide services as per the requirement (of the policy),” he added.
On the side of the private sector, Mr. Rao said engaging in projects geared to implement the Universal Health Care Act is also attractive because “revenue risks are predominantly taken by the government.”
“The fact is the growth of the market in many of these developing countries…is growing at a very fast pace, especially in the context of Southeast Asia. As a result, even the private sector is willing to engage in PPPs and are looking at opportunities to actually provide the spectrum of services that is possible within the PPP context,” he said.
“From a private sector perspective…you would see that many of these companies are actually looking at expanding beyond borders and are actually working to set up hospitals, set up healthcare services in regions outside of their boundaries,” Mr. Rao added.
He said while the IRR is still being crafted, it is important for the government to consider and consult the private sector for the ways they could take part in the Universal Health Care policy.
“By leveraging private sector expertise, financing capacity and efficiency, public health systems have been able to take advantage of new technologies that clinical support practices…in many of the projects around the world,” Mr. Rao said.

ERC seeks comments for new draft of rules on power supply agreements

THE ENERGY Regulatory Commission (ERC) is asking for the industry’s comments on the third draft of the proposed rules governing the procurement, execution, and evaluation of power supply agreements (PSAs) entered into by distribution utilities for the supply of electricity to their captive market.
The proposed rules will prescribe the guidelines on default contractual provisions and minimum standard format in order to make the process of power supply contracting clear and efficient.
The rules will also streamline the review and approval process of PSAs for transparency in the selection and contracting of distribution utilities, while promoting competition among generation companies.
In a statement, ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said the third draft of the proposed rules contains some new features or provisions meant to protect the consumers’ interests.
These features include the inclusion of a fixed bid price in the terms of reference (ToR) and a new section detailing the prohibited acts, fines and penalties, which include blacklisting.
She said another section was added on unsolicited proposals, which pertain to project proposals submitted by power generation companies or other entities authorized by the ERC to supply electricity to the captive market that are not in response to a formal solicitation or request issued by a distribution utility. — Victor V. Saulon

DA suspends bulb onion importations

THE Department of Agriculture (DA) ordered the suspension of imports of bulb onions until the investigation on cartel operations that allegedly manipulate the prices of locally-produced onions concludes.
In a social media post on Friday, Agriculture Secretary Emmanuel F. Piñol said the new directive is expected to “prevent the cartel from benefitting from their operations where they forced the drop in the buying price of local onions by leasing and closing cold storage facilities to onion farmers.”
The order came after the DA asked the Philippine Competition Commission (PCC) and the National Bureau of Investigation (NBI) last Wednesday to look into the closure of four major cold storage facilities used by farmers to store their produce. Mr. Pinol said this is an “apparent attempt” to push farmers to cut the prices of their goods.
“With the farmers’ produce bought at very low prices cornered and consolidated, traders could control the pricing of onion in the market and generate huge profits,” he wrote.
“The moratorium on the issuance of SPS (sanitary and pytho-sanitary) permits will be extended until such time the PCC and NBI have terminated their investigation,” the agriculture chief added.
SPS permits are issued by the Bureau of Plant Industry, which Mr. Piñol ordered to schedule only at the end of the harvest season for local farmers.
He also noted that farmer groups and importers have agreed to allow the resumption of onion importation only after the harvest season.
“The traders are expected to consolidate the local production as they await for the time when they will be allowed to import,” Mr. Piñol said. — Denise A. Valdez

Pilipinas Shell hikes capital spending by 46%

By Arra B. Francia, Reporter
PILIPINAS Shell Petroleum Corp. is ramping up spending to P6 billion in 2019, even as earnings fell due to the higher inflation and the weaker peso last year.
The listed firm said in a statement Friday that it plans to hike its capital expenditure by 46% this year, from the P4.1 billion spent in 2018.
“Pilipinas Shell plans to increase its investment to around P6.0 billion to support expansion plans of the retail business and optimization projects in the manufacturing and supply segment in 2019,” the company said.
The higher spending comes amid a drop in earnings last year, as Pilipinas Shell booked a net income of P5.1 billion. The company did not provide a comparative figure in its statement, but its 2017 filing shows that net income stood at P10.39 billion then, indicating a 51% plunge.
“We acknowledge the achievements of our people in delivering on our priorities, despite the challenging year… Strong corporate governance, consistent strategy, and commitment to our core values give us the confidence to compete in a challenging business environment,” Pilipinas Shell President and Chief Executive Officer Cesar G. Romero said in a statement.
Pilipinas Shell said its retail business remained to be the key driver of earnings in 2018, despite heightened competition, higher pump prices, and the nine-year high inflation during the third quarter.
The company ended 2018 with 1,084 locations following the opening of 50 new sites. It plans to add 50 to 70 more this year.
Its non-fuel retailing business, which includes its convenience store chain, posted a double-digit growth last year. The company opened 75 new Shell Helix Oil Change+ and Helix Service Centers, beyond its initial plan to open 30 to 50 sites. It likewise opened 33 Select stores and 17 deli2go stores, also way beyond its store expansion target of 15 to 20 locations.
Pilipinas Shell said it plans to implement projects that will enhance its Tabangao Refinery in the mid-term, in order to address the low refining margin environment in the region. It also noted that its North Mindanao Import Facility helped it post logistics savings better than initially expected.
Shares in Pilipinas went up 0.3% or 15 centavos to close at P50 each at the stock exchange on Friday.

Century Properties Group’s retail bonds get SEC go-ahead

CENTURY Properties Group, Inc. (CPG) has secured approval from the Securities and Exchange Commission (SEC) to issue up to P3 billion in fixed-rate retail bonds.
In a disclosure to the stock exchange on Friday, the Antonio-led property developer said the country’s corporate regulator has given the green light for its plan to issue P2 billion worth of bonds, with an oversubscription option of up to P1 billion.
The listed firm plans to use proceeds of the issuance to finance five affordable housing projects worth a total of P4.15 billion, as per the prospectus posted on its website.
The projects will be developed by Phirst Park Homes, Inc. (PPHI), its joint venture firm with Japan’s Mitsubishi Corp. that specializes in affordable housing projects.
The prospectus states that the projects are located in San Pablo, Laguna; Pandi, Bulacan; Calamba, Laguna; General Trias, Cavite; and San Fernando, Pampanga. These will be launched throughout the year, and are seen to be completed in 2022.
CPG said the five projects will deliver a total of 7,026 housing units across a total of 76.5 hectares.
The company said the remaining capex requirements will be funded by sales from these projects.
“Additionally, for the planned affordable housing developments of PPHI, equity capital calls from Mitsubishi Corporation as 40% shareholder shall be procured. To the extent more funding is needed, the project will procure project financing construction and contract to sell credit facilities,” the company said.
CPG tapped China Bank Capital Corp as issue manager, lead underwriter, and bookrunner for the offering.
The company will be spending P8-10 billion for its capital expenditures this year, to be used for residential and office projects as well as land acquisitions.
CPG reported a 72% increase in net income to P1.1 billion in 2018, against P650 million in the year before. Revenues also climbed 60% to P10.7 billion. The company previously focused on high-rise residential projects, but has diversified to more affordable housing and commercial leasing projects since 2017.
Aside from the affordable residential projects to be launched this year, CPG will also unveil four office buildings in line with its target to have 32 office and commercial buildings by 2021.
Shares in CPG dropped 1.79% or a centavo to close at 55 centavos each at the stock exchange on Friday. — Arra B. Francia

Philex delays copper-gold mine start by 4 years

MANILA — Philippine copper and gold producer Philex Mining Corp. on Friday said the start of output at its Silangan mine in the south of the country would be delayed by four years until 2022, hit by a national ban on new open-pit mining.
The Silangan copper and gold mine could be Philex’s biggest source of revenue after its 61-year-old Padcal mine in the north is expected to close in 2022.
Silangan was originally slated to begin production by 2018, but that has been set back by a ban on new open-pit mining introduced in 2017 as the government in one of the world’s top copper, gold and nickel producers tries to step up environmental protection.
Open-pit extraction has been used by many miners in the Philippines, but is blamed for massive environmental destruction in some areas.
Philex said in a statement on Friday that it was now looking at an infrastructure design that would allow it to use underground mining to extract ores.
“We are currently working on securing all requisite permits and approvals to operate Silangan,” said Philex Mining Chief Executive Officer Eulalio B. Austin. “We look forward to realizing the massive potential of a project of this magnitude.”
Philippine President Rodrigo R. Duterte has warned he might declare a total ban on open-pit mining as he ordered mining companies to reforest denuded sites. The existing ban also covers the $5.9 billion Tampakan copper-gold project in southern Mindanao island.
Silangan consists of three deposit areas — Boyongan, Bayugo and Kalayaan — with the latter a joint venture with Manila Mining Corp. Boyongan is expected to be the first to operate, by 2022.
Silangan’s development was previously estimated to cost $1.2 billion, based on open-pit extraction. Philex did not give any new estimate for the cost of the project.
Padcal accounted for 9 percent of gold output in the Philippines last year at 29,782 kilograms, and 20 percent of its copper concentrate production at 282,391 tonnes.
PROFIT DECLINE
Meanwhile, Philex Mining reported its net income stood at P608 million in 2018, down 63% from the P1.65 billion it recorded in the year prior.
Core net income likewise dropped 64% to P600 million last year, which the company attributed to “various headwinds particularly rising inflation, regulatory hurdles and depleting ore grades.”
“As it moves closer towards the end of mine life, Philex Mining will be focused on maximizing the remaining cash generation capabilities of Padcal,” the listed miner said in a statement.
Last year’s revenues declined by 16% to P7.6 billion from P9.1 billion in 2017, “primarily weighed down by lower tonnage across all products.”
Philex Mining milled a total of 8.517 million tonnes in 2018, 1.8% lower than the previous year’s output.
“Marginal ore grades, which are inherent within the fringes of the mineral body, contributed to weaker metal output… Mining operations were also hampered by the impact of typhoons causing power disruptions and manpower safety concerns leading to lesser operating days,” it added.
Philex Mining is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Reuters with D.A.Valdez

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