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A.B.A.C. SEEKS BETTER FINANCING TOOLS FOR MSMEs i

loilo City—The 21 member-economies of the Asia-Pacific Economic Cooperation (Apec) are urged to provide diversified financial instruments for the changing needs of micro, small and medium enterprises (msmes) in the region.

Apec Business Advisory Council (Abac) Chairman Doris Magsaysay-Ho said broadening the range of financing instruments available to msmes is a key factor to achieve financial inclusion and will help the sector grow their businesses.

Magsaysay-Ho, also the president and ceo of A. Magsaysay Inc., made the statement during the Apec sme Finance Forum at the Iloilo Convention Center on Tuesday.

“We have seen the fruits of our work in the form of economies benefiting from higher levels of trade and investments, lower tariffs, ease of doing business, and our

people having wider and cheaper sources of goods and services,” she said.

“Unfortunately, many msmes are unable to access financing, thus, stifling their ability to grow their business, pursue innovation, or comply with minimum standards to enable their participation in local supply chains, much less global value chains,” MagsaysayHo added.

The abac chairman said one of the new financing services needed in the market is for start-ups to promote innovation in the Asia-Pacific region.

“We need financing instruments that will provide financing for start-ups, as well as financial innovation that responds to the changing business models,”Magsaysay-Ho said. She also said that the Asia-Pacific region is prone to natural disasters, which hurt business operations.

“We have to equip msmes with responsive financial instrument that will allow them to mitigate disaster risks for them to recover quickly,” Magsaysay-Ho said.

“We see the great need for financial instruments, such as microinsurance for business continuity and catastrophe bonds to help communities in their reconstruction,” she said. The Abac chairman also called for digital-financing solutions in the region to allow deeper penetration of financialservice providers in the market.

“The business models of digital finance are changing the environment for lending, savings, insurance and payments in a way that warrants more attention by policymakers. The economic evolution brought about by the digital revolution affords us options that we have never had before,” Magsaysay-Ho noted. pna

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U.N. Media Award 2008

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Thursday 18, 2014 Vol. 1023, No.2015 40 Wednesday, September Vol. 10 No. 349

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ADB cuts 2015 PHL growth forecast to 6% D T

HSBC CITES REASONS FOR BSP TO KEEP RATES

By Cai U. Ordinario

INSIDE

a.l.i. expands in alabang BusinessMirror E1 | Wednesday, September 23, 2015 • Editor: Tet Andolong

Avida expanding ALI’s footprint in Alabang

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B R R R

HERE is no doubt that the development of Ayala Alabang by Ayala Land Inc. (ALI) is one of the factors that has transformed the once sleepy town of Muntinlupa into a bustling city.

ALI is not resting on its laurels as far as developing Alabang is concerned. Avida, a subsidiary of the property titan, is partnering with Ayala Land Commercial Business Group and Ayala Land Offices in developing South Park District, a 6.6-hectare mixed-use estate in Alabang.

Aside from the well-known Ayala quality of development in the project, there is

the humongous central park with a size of 8,000 square meters that will benefit the residents of Avida Towers Altura.

Avida said the two-tower residences will be its prime residential offering in the district, which also include Ayala Malls South Park and the South Park Corporate Center. The property used to be a factory of Nestlé Philippines,

which was acquired by ALI in 2011.

“The park is the heart of the development. It is envisioned to give the city a new dynamic and vibrant place of convergence for people of all ages, amid wide spaces and greenery. It shall be a place for one to refresh, rejuvenate, and reinvigorate amid wide and lush, open spaces and tree-lined promenades and pathways,” said Jojo Fabricante, head of Innovation and Design Group of Avida Land.

“Focal points of the park include a contemporary design plaza, which features a large water fountain inside an elegant palm court. The grand lawn area adjacent to it, accentuated by iconic sculptures, shall be an ideal venue for rest and recreation. And last, a special residential park for Altura residents more suitable for quieter and passive activities,” Fabricante added.

Development of the artistic and aesthetic consciousness of the residents is also an important element of the proj-

ect. Avida has tapped world-renowned sculptor Reginald Yuson to put the art installations in Altura’s landmarks. Yuson, whose works include art installations and fountains in Greenbelt 3, Bonifacio High Street and Marquee Mall, designed two sculptures.

For the grand lawn area, a large steel composition of interconnected conical forms will be installed. He said the second piece is a sprawling composition of free-flowing, three-dimensional tubes reminiscent of doodles. The sculptures inspire vibrancy, movement and playfulness, while keeping a sense of peacefulness and tranquility.

Yuson said his works will emphasize energetic while keeping a sense of peacefulness and tranquility. He added the sculptures are large and sprawling to enable the viewer to experience the various senses rather than just visually.

Fabricante said the iconic sculptures will provide the city fresh touch of a new dynamic and vibrant place of conver-

gence for people of all ages, amid wide spaces and greenery.

Racquel Cruz, corporate planning group head of Avida Land, said the central park and plaza are set to open within the year, while the turnover of Altura Tower 1 and the opening of Ayala Mall South Park will happen next year.

Cruz noted that uptake has been great with the majority of the units in Tower 1. Cruz also pointed out that Tower Altura features community amenities for family bonding, such as an adult and kiddie pool, clubhouse with function hall, outdoor gym and children’s play area.

Similar to Avida condo residences, Altura is structured to provide free-flowing sunlight and air, emergency power in the units and sensible amenities. There are also lesser units per floor.

Unit types are studio, one- and twobedroom units with area sizes ranging from 22 to 61 sq m. Prices start at P1.9 million to P5.9 million.

Cruz said Altura Towers has been de-

signed to reduce the carbon footprint of the residents by making the important landmarks quite accessible.

“On top of its amenities and the retail units below Tower 1, Avida Towers Altura is within close proximity to the residential park and grand lawn of South Park District.

It is also just walking distance from the mall, where they can shop and dine,” Cruz said.

Avida also included sustainable features in South Park. It will have an underground detention tank to hold rainwater and avoid flooding the vicinity. Further, Cruz said each development within South Park District will have its own sewage-treatment plant.

To give a nice touch of green, mango trees on the district grounds, which have been there since the 1960s, have been left to flourish and blend with the mall’s design.

Avida has built a transport terminal for shuttle services. It will also have designated areas for taxis and lay-bys for tricycles and PUVs to avoid traffic congestion in front of South Park District.

property

E1

bluetooth speakers The best of people

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EAR Lord, knowing that You have given us eyes that see the best in people is something we are grateful for forever. May we never be faultfinders, instead, let the good surface when we try to see the works of others. Feeling that You gave us hearts that easily forgive is something we treasure deeply. Having the mind that forgets the bad done to us is something that we value highly. Living the soul that never lose faith in God is the worthiest state of life we wish to possess, until You call us to Your Kingdom. Amen.

EJ M. LOYOLA AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Life BusinessMirror

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THE KurbisBT from German audio manufacturer Thonet & Vander.

B J R The Dallas Morning News

and rising remittances. Private investment also rose, but government spending was sluggish early in the year before rebounding,” the ADB said. However, the growth estimates of the ADB still depend on the impact of several threats to the Philippine economy.

These threats, or risks, include a severe El Niño, which would hurt rural incomes and also impact food, water and electricity prices. The dry spell is expected to reduce harvests and hydropower output.

Continued on A2

special report

Marrying a rapist, the 301-day rule for widows and other obsolete laws

ALDUB CRAZE RULES WEEKEND PRIME TIME, TOO »D3

Wednesday, September 23, 2015

D1

BLUETOOTH SPEAKERS LOOK GOOD, SOUND EVEN BETTER

ISTENING to music is a very personal experience. From the music genre to the listening method, there are an infinite number of choices.

Add in the different tastes in everyone’s favorite artists and individual level of hearing, and it’s easy to say what sounds good to me may not sound good to you at all.

This makes reviewing speakers a difficult proposition. I may like guitar-driven rock ’n’ roll, while you like opera. The choice of how we enjoy music can also change with where we are when we listen.

In the car, most of us stick with the included sound system, but if we are listening through headphones or speakers, there’s more room for choice.

he Asian Development Bank (ADB) has downgraded its growth forecast for the Philippines this year, mainly due to the failure of the government to deliver on its promise to ramp up infrastructure spending at the start of 2015.

In its Asian Development Outlook (ADO) Update, the ADB said the Philippine economy will likely post a growth of 6 percent this year, slower than its earlier 2015 forecast of 6.4 percent.

For 2016, however, the ADB maintained its full-year growth forecast of 6.3 percent. This will be largely fueled by election spending for the presidential polls slated in May next year.

“Household consumption accelerated in the first half, driven by higher employment, low inflation

If there’s one thing I’ve learned about music as a gadget reviewer, it’s there are always more speakers to try. The KurbisBT from German audio manufacturer Thonet & Vander ($199, www.amazon.com) is a set of bookshelf speakers designed to be used with almost any music source you have.

The Thonet & Vander web site says the KurbisBT is “the reflection of the search for purity in all aspects of life.” That’s a pretty lofty goal for a set of speakers.

The KurbisBT speakers are made of wood and have removable mesh covers that pop off to expose a 5.25inch woofer and 1-inch tweeter in each box.

The woofer is made of aramid fiber, which, according to Thonet & Vander, “is a synthetic, firm and light fiber.

It is an organic material of high performance due to its outstanding thermal and mechanical resistance. It

C  D

Jovee Marie N. dela Cruz

life

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Conclusion

epublic Act (RA) 8353, or the Anti-Rape Law of 1997—already considered then as a big step against rapists—should now be amended, according to the Makabayan bloc in the House of Representatives.

Under Article 266, Section C of the law: “Subsequent valid marriage between the offended party shall extinguish the criminal action or the penalty imposed. In case it is the legal husband who is the offender, the subsequent forgiveness by the wife as the offended party shall extinguish the criminal action or the penalty: Provided, that the crime shall not be extinguished or the penalty shall not be abated if the marriage is void ab initio.”

The offender escaping criminal liability after marrying the victim is tied to a Spanish-era provision in the Revised Penal Code (RPC), specifically Article 344, which states: “In cases of seduction, abduction, acts of lasciviousness and rape, the marriage of the offender with the offended party shall extinguish the criminal action or remit the penalty already imposed upon him.”

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PESO exchange rates n US 46.5160

Continued on A2

espite its slower growth in the first half of the year, the Philippines is still deemed as a “bright star in a dim sky,” as economies of its peers struggle with growth and monetary issues caused by global headwinds, international banking giant Hongkong and Shanghai Banking Corp. (HSBC) said.

HSBC said the developments in the recent months showed the resilience of the Philippine economy and its ability to absorb and adapt to global events that caused drastic effects on other nations’ economies, particularly in the trade sector.

The Philippine economy is now said to be “firing on several cylinders,” as export deterioration was “easily” offset by robust household consumption, private investment and government spending.

“Contrary to the soft patch the rest of Asia is going through, the Philippines finds itself in a different position. It is less sensitive to the deterioration in external demand compared to North Asian economies, while, at the same time, not as dependent to commodity prices as many of its Asean partners,” HSBC said.

With this, HSBC expects the Bangko Sentral ng Pilipinas (BSP) to hold its rates steady in its upcoming monetarypolicy meeting on Thursday, despite the policy space for a rate cut due to low inflation. “We don’t expect any changes from the BSP in the near future. The Philippine economy is still a bright star in a dim sky,” HSBC said.

Among other factors that will make the BSP opt to keep rates steady include the possible surprise uptick in the inflation rate due to El Niño threats, as well as the need to remain vigilant of potential outflows arising from the Federal Reserve liftoff, which is expected to take place in December.

“Unlike last year, this time around the El Niño is not a false alarm. Accordingly, dry weather and drought conditions are expected to persist over the next few months.

Apart from the inflationary impact, there is also a risk that drought conditions suppress rural incomes,” HSBC said. Bianca Cuaresma

n japan 0.3860 n UK 72.1417 n HK 6.0021 n CHINA 7.3034 n singapore 32.9831 n australia 33.1618 n EU 52.0840 n SAUDI arabia 12.4082 Source: BSP (22 September 2015)

A2

BMReports

Wednesday, September 23 , 2015

BusinessMirror

Marrying a rapist, the 301-day rule for widows and other obsolete laws continued from A1

The members of the Makabayan bloc— Reps. Antonio Tinio of ACT Teachers; Rep. Fernando Hicap of Anakpawis; Neri Colmenares and Carlos Isagani Zarate of Bayan Muna; Luzviminda Ilagan and Emmi de Jesus of Gabriela; and Terry Ridon of Kabataan said House Bill (HB) 818, which seeks to cure the inadequacies of RA 8353, has been pending at the House Committee on Revision of Laws since July 2013.

Vague on resistance, consent

ADB cuts 2015 PHL growth forecast to 6% Continued from A1

This can cause prices of select food items and energy to increase.

Despite this, the ADB revised its inflation forecast for the country downward to 2 percent this year and 3 percent next year. The initial inflation forecast of the ADB was at 2.8 percent in 2015 and 3.3 percent in 2016.

Apart from prices, the ADB

said there are external risks that could cut the country’s economic growth this year and next year.

China impact

These external risks include the slower-than-expected economic growth in the major industrial economies and in China. The ADB said the anemic growth in China and the slower recovery in the Continued on A8

“Rape is, no doubt, the most horrendous of all forms of sexual violence, and is one of the most heinous crimes that can be committed against a person. Rape causes immeasurable anguish to the victim and his or her family. Simply put, rape ruins the life of the victim and that of his or her family,” the lawmakers said.

While the antirape law—which reclassified rape from a crime against chastity to that of a crime against persons—also did away with the requirement of tenacious resistance, courts still have differing interpretations as to what resistance is.

The lawmakers said the apparent failure of the law in defining consent from the perspective of the victim had paved the way for some judges to rule that the victims have consented to sexual intrusion when they were not able to put up any amount of resistance. With this, they said that there is a need for the law to zero in on the absence of consent as the central element in the crime of rape.

HB 812 seeks to address the inadequacies of the law regarding consent through the following: 1. It provides for specific and clearer

instances of a form of rape called sexual violation, which is premised on lack of consent; 2. It provides for instances when lack of consent is presumed; and 3. It addresses the special situation of those who, by reason of their mental or physical state, are unable to give consent.

To be consistent with the proposed definition of consent, Article 266-D, which provides that “any physical overt act manifesting resistance or that the victim is so situated that he or she is incapable of giving consent, may be accepted as evidence in the prosecution of the crime,”is proposed to be repealed.

The bill also seeks to recognize other forms of unwanted sexual conduct against males, young boys, in particular, as rape.

Also, the lawmakers want to stress that hate crimes may be perpetuated against members of the LGBT (lesbians, gays, bisexual, transgender) community.

To further highlight the seriousness of the crime of rape, the bill also seeks to repeal Article 266-C, which pardons the rapist if he subsequently marries the victim, or if the rapist-husband is pardoned by the wife.

‘Please be quiet; I’m praying’

While the 1987 Constitution guarantees the practice of freedom of speech and freedom of expression, in the Philippines, a person still faces imprisonment for offending religious feelings.

Article 133 of the RPC said that “the penalty of arresto mayor in its maximum period to prision correccional in its minimum period shall be imposed upon anyone who, in a place devoted to religious worship or during the celebration of any religious ceremony, shall perform acts notoriously offensive to the feelings of the faithful.”

In January a “guilty” decision was issued against Carlos Celdran for “offending religious feelings.”

The court decision against Celdran provides that he will serve a prison term of not less than two months and 21 days and not more than one year, one month and 11 days.

In 2010 Celdran was charged after he interrupted a service at the Manila Cathedral by holding up a placard with the word “Damaso” on it.

Damaso is the character of a bad priest in Jose Rizal’s Noli Me Tangere novel. Partylist Reps. Ibarra Gutierrez and Walden Bello of Akbayan have filed HB 3389, repealing Article 133 of the RPC. HB 3389 also mandates that all pending criminal cases and accompanying civil cases, if any, for violation of Article 133 shall be dismissed upon the effectivity of this act.

According to the lawmakers, the separation of Church and State (Section 6, Article II of the Constitution) and the nonestablishment clause (Section 5, Article III of the Constitution) prevent the enactment of laws that would favor any or all religions, saying that these constitutional principles should be reconciled with, and should be used to support, the rights of citizens, such as the right to free speech and expression.

They said Article 133 curtails a right protected by the Constitution: The right to free speech.

The solons also cited the International Covenant on Civil and Political Rights adopted by the United Nations General Assembly in 1966. As a state-party, they said the Philippines is bound to uphold the freedom of expression of its citizens and ensure that laws do not enforce unnecessary limitations to this right.

news@businessmirror.com.ph

DTI preparing guidelines on use of TRF

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he Department of Trade and Industry (DTI) is now finalizing the guidelines on the availment of domestic industries of the newly created Trade Remedy Fund (TRF). “We’re finalizing the guidelines but it’s up to the Department of Budget and Management to set the deadline, “ Bureau of Import Services Director Luis M. Catibayan said in a text message.

“Based on our monitoring of trade remedy duty collections, the first half of 2015 reflected around P10 million. We need to check with Treasury whether the duties collected were deposited in the fund code created for the purpose.”

According to the Safeguard Measures Act (Republic Act 8800), the Department of Agriculture, the DTI and Tariff Commission are empowered to collect fees, charges and safeguard duties on imports of commodities deemed by the government as injurious to the competitiveness of their local counterparts. RA 8800 dictates that the collected amount be deposited to the TRF. According to the law, 50 percent of the revenue collected from such fees, charges and safeguard duties shall be set aside in a Remedies Fund, which shall be earmarked for the use of the government agencies in implementing the trade remedies.

The remaining half shall be deposited under a special account to be created in the National Treasury and should be given to the private sector to increase their competitiveness. Collected antidumping duties will also be directed to this fund, as provided for in the Anti-Dumping Act of 1999. The fund code under the National Treasury was only created in June 2014.

The Steel Angles, Shapes and Sections Manufacturers Association of the Philippines Inc. earlier raised the issue on the use of the TRF. Catibayan said the duties collected before the creation of the TRF have already gone to the General Fund, and, as such, can no longer be availed of by the industry. Catherine N. Pillas

news@businessmirror.com.ph

The Nation BusinessMirror

Deportation of Reyeses set Thursday

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USTICE Secretary Leila M. de Lima said former Palawan Gov. Mario Joel Reyes and his brother, former Coron Mayor Mario Reyes are tentatively scheduled to be deported to the country from Phuket, Thailand, on Thursday.

At a media briefing, de Lima said immigration officials in Thailand are still processing the deportation of the Reyes brothers who are wanted in the country for the ambush-killing of Palawan broadcast journalist Gerry Ortega on January 24, 2011. A warrant of arrest was issued by the Regional Trial Court in Puerto Princesa on March 27, 2012, against the Reyes brothers who went into hiding for three years.

The two were arrested by Thai authorities on Sunday for overstaying.

De Lima said the National Police will take custody of the Reyes brothers upon their arrival in the country.

“I understand pino-process na ngayon ng Thai immigration authorities ang deportation papers nila and, syempre, may susundo sa kanila from our end. It’s probably police,” de Lima said.

Patty Ortega, the wife of the slain journalist, earlier asked de Lima to immediately resolved their pending petition for review seeking the reversal of the resolution issued by the first panel of prosecutors in 2011 that junked the murder charges against the Reyes brothers motion for reconsideration remained unacted upon by de Lima. Joel R. San Juan

Poe maintains she’s natural-born Pinoy

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HE camp of Sen. Grace Poe on Tuesday maintained that the lawmaker, being a foundling, is a Filipino citizen from birth and does not have to go through a naturalization process to become a citizen.

Lawyer George Garcia, one of Poe’s legal counsels in the disqualification case filed against her before the Senate Electoral Tribunal (SET), said the longstanding presumption and principle of customary international law is that a foundling is considered to have been born in the state where he or she was found and from parents of that country’s nationality.

Poe’s camp issued the statement apparently in reaction to Supreme Court Senior Associate Justice Antonio Carpio, chairman of the SET, statement that Poe, being a foundling, cannot be considered a

natural-born Filipino citizen unless an evidence is presented that her biolagical parents are Filipinos as required under the Constitution.

Carpio cited the principle of jus sanguinis (right of blood), explaining that the Constitution requires either of the parents of Poe to be a Filipino citizen for her to be a natural-born citizen. “To be natural-born, you must show blood relation,” Carpio stressed during interpellation.

He senior justice said that while international conventions signed by the Philippines allowed foundlings in the country to be Filipino citizens, such process should be considered as a naturalization of citizenship.

“That’s when you grant passport to foundling. That gives a foundling citizenship, which Poe, a foundling from Jaro, Iloilo, in 1968, migrated to the US to pursue a college degree.

Joel R. San Juan

Editor: Dionisio L. Pelayo • Wednesday, September 23, 2015 A3

DOJ starts probe vs gunmen in Mamasapano Massacre

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HE Joint National Bureau of Investigation-National Prosecution Service (NBINPS) Special Investigation Team on Tuesday filed direct assault with murder complaint before the Department of Justice (DOJ) against 90 individuals, including 13 commanders of the Moro Islamic Liberation Front (MILF), allegedly involved in the killing of 35 Special Action Force (SAF) commandos in Mamasapano, Maguindanao, on January 25.

Justice Secretary Leila M. de Lima did not disclose the identities of the 90 respondents pending issuance of subpoenas against them for the conduct of a preliminary investigation to determine whether there is a probable cause to bring before the trial court.

Each of the respondents is individually charged with 35 counts of direct assault with murder.

The NBI-NPS team explained that the assault on the SAF commandos became complexed with murder when they were killed by the respondents with qualifying circumstances of treachery and abuse of superior strength under Article 14 of the Revised Penal Code (RPC). The respondents came from the MILF, Bangsamoro Islamic Freedom Fighters, private armed groups and other unaffiliated individuals.

The 35 police commandos were part

of the 55th Special Action Company (SAC) who were killed at Barangay Tukanalipao, Mamasapano, under Articles 148 (direct assault) and 248 (murder), in relation to Article 48 (penalty for complex crimes) of the RPC. The team also recommended the prosecution of the respondents for theft of government property under Article 308 of the RPC for their unlawful taking of government-issued firearms, ammunition, communications and navigational equipment, personal protective gear, uniforms, combat boots and even personal effects of the 55th SAC commandos.

The complaint does not cover the deaths of nine other SAF commandos of the 84th Seaborne Company who attempted to arrest but later neutralized international terrorist Zulkifli Bin Hir, alias Marwan, at his hut in Barangay Pidsandawan, Mamasapano. Joel San Juan

Aquino allays generals’ fears on ‘Republic’s dismemberment

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RESIDENT Aquino, in a meeting with leaders of the Association of Generals and Flag Officers (Agfo), allayed their fears that the administration-backed Bangsamoro basic law (BBL), now undergoing scrutiny in Congress, will be “an express trip to dismemberment of the Republic.”

Communications Secretary Herminio B. Coloma Jr. confirmed that Aquino met on Monday with the group of generals who recently warned the President in a full-page advertisement against pushing a f lawed BBL. Coloma added that Aquino, in turn, assured the gener-

als that the bill as crafted adheres to the Constitution and was based on provisions of existing laws, such as the Organic Act creating the Autonomous Region in Muslim Mindanao.

According to Coloma, Aquino told the Agfo members that the fears they raised have no basis.

In a rare news conference to clarify the Mamasapano “alternative truth” controversy, Aquino voiced his disappointment at Agfo leaders, saying there was no need for them to put out the ads, as he could have easily made himself available to them to answer their questions. Butch Fernandez

Economy

A4 Wednesday, September 23, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

Manufacturers to DOE: Do not delay approval, rollout of coal-fired plants

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By Catherine N. Pillas

he Department of Energy (DOE) should ensure that there will be no delays in the approval and rollout of coal-fired power plants, as fossilfuel power-generating facilities remain the most stable and viable source for energy, the Federation of Philippine Industries (FPI) said on Tuesday.

FPI Chairman Jesus Lim Arranza, in an interview with repor ters, said that, while the Philippines remains committed to climate-change commitments, renewable-energy (RE) should be considered as a second option.

“We are encouraging RE, but the issue is its reliablity. It’s not as stable as coal,” Arranza said.

The sentiment was aired amid the increasing trend to “green energ y,” on account of which environmental groups are denouncing further operations of

coal-fired plants.

Redondo Peninsula Energy was issued a writ of kalikasan by the Court of Appeals in 2013, effectively invalidating the Environmental Compliance Certificate (ECC) issued by the Department of Environment and Natural Resources.

The Supreme Court reversed the ruling a year later.

An Aboitiz Power plant in Davao City similarly met resistance from environmental group Greenpeace.

“Power plants which are ready for implementation and already

endorsed by the DOE, and whose application for the ECC has been processed, should not, in any way, be delayed,” Arranza said. “ The fear has always been there, whether we might have a power interruption because of the 600-megawatt coal-fired power plant [of Redondo] for three years.

If that was up and running, there would have been no hesitance for firms to put up manufacturing facilities, because they know they have that supply of power,” Arranza said.

Aquino need not OK P1.2-B DOT ad contracts questioned by COA–Palace

By Butch Fernandez

M

alacañang maintained on Tuesday that the Department of Tourism’s (DOT) P1.2-billion advertising contracts being questioned by the Commmission on Audit (COA) for alleged irregularities did not require President Aquino’s approval.

“No need for Palace approval for programs included in and funded by the General Appropriations Act,” Communications Secretary Herminio B. Coloma Jr. said on Tuesday.

Asked if President Aquino had sought an explanation from the DOT about the questioned contracts involving the government’s billion-peso tourism-promotion drive, Coloma said the Palace expects DOT officials to clarify the matter. “The DOT will respond appropriately to audit findings,” Coloma told the BusinessMirror.

COA auditors reported that no public biddings were conducted by the DOT in awarding and extending ad contracts amounting to P1.2 billion for the Aquino administration’s “It’s More Fun in the Philippines” tourism-promotion campaign.

A COA report in 2014 said that state auditors also found that the renewed ad contracts were “extended in an amount more than what was stated in the original contract” in violation of the Procurement Law, also known as Republic Act 9184.

It was also reported that the COA was disallowing P999.78 million in advertising expenses, unless the DOT and its Tourism Promotion Board (TPB) can “justify their failure” to comply with procurement rules.

“Unless fully justified by management, the renewal of advertising services contract with the advertising consultant and the extension of advertising services may not be allowed in audit,” the COA auditors said.

They pointed out that the procurement of advertising services was “not even included in the Annual Procurement Plan” of the department’s TPB constituting, the COA said, a violation of the provisions of the Procurement Law.

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envoy: canada keen on fta deal with phl

Canada remains keen on forging a bilateral free-trade agreement (FTA) with the Philippines, as it is set to continue holding exploratory talks in the following months.

This was the sentiment of Canadian Ambassador to the Philippines Neil Reeder in an interview last week.

“We had round one of the exploratory talks a month ago, and we’ll have the second one in the next few months,” Reeder said, pointing out that the exploratory discussions will determine if formal negotiations will push through.

The Philippines has aggressively been pursuing bilateral FTAs with member-countries of the TransPacific Partnership (TPP), such as Mexico,Canada, Peru and Chile.

Trade Undersecretary Adrian S. Cristobal Jr. said earlier the bilateral engagements are “building blocks” toward the TPP, should the country decide to join the megatrade deal.

Trade Minister of Canada Ed Fast also mentioned earlier that the economies of the two countries are complementary, and an FTA will accelerate exchange of trade, which in 2014 amounted to a modest $1.8 billion.

Aside from being a preparation for the TPP, bilateral free-trade agreement with Canada is seen as an option for the Philippines to access the markets of Mexico and the United States. Catherine N. Pillas

city of san fernando identifies development priorities for 2016

D.O.T. Countdown to Christmas 2015

Tourism officials cut the ceremonial ribbon marking the start of the Department of Tourism’s (DOT) “Countdown to Christmas: Celebrating the Regions (September 21 to December 18),” held at the Makati Tourism Office on Gil Puyat Avenue in Makati City on Monday. In the photograph are National Capital Region Officer in Charge Catherine Agustin (from left); Tourism Undersecretary for Regulation, Coordination and Resource Generation Ma. Victoria Jasmin; Oscar Feliciano of the Makati Tourism Office; and Tourism Assistant Secretary Art Boncato. PNA

Energy dept opts for negotiated deal for 3K e-trikes

By Lenie Lectura

T

HE Department of Energy (DOE) will start negotiating with the lone bidder for the supply and delivery of 3,000 electric-powered tricycles (e-trikes) for a lower cost.

“We will start negotiations with the winning bidder on Monday, because we want to lower the costs,” Energy Undersecretary Donato Marcos said.

This developed after Marcos said the agency received a No

Objection Letter (NOL) from the Asian Development Bank (ADB) last week. With the NOL, the DOE can proceed to award the contract to Uzushio Electric Co. Ltd. of Japan and its local partner BEMAC Electric Transportation Philippines Inc. The lone bidder submitted a bid of P364.17 million. The agency wants to negotiate to possibly lower the cost for the e-trike project, a joint undertaking of the DOE and the ADB; the objective of which is to replace some 100,000 gasoline-

fed tricycles by 2017.

The ADB will provide financing of $300 million for the $504-million project. The government will fund $99 million, and Clean Technology Fund, $105 million.

The e-trike project aims to promote sustainable transport; address the increasing carbon emissions in major cities; and reduce oil dependence of the local transport sector. The project also aims in transforming the public tricycle sector and jump-starting a new industry in the transport sector.

The DOE was earlier looking at another round of bidding for 17,000 e-trikes within the year.

However, there is a possibility that the agency may scrap the planned second batch of e-trike auction, and possibly replace them with other types of electric vehicles.

“We are looking at it if we will still pursue. It may no longer be e-trikes,” said DOE Officer in Charge Zenaida Monsada who added that the next batch could include jeepneys.

Subic eyes pioneering role in renewable-energy development UBIC BAY FREEPORT—This premier free port is expecting to be at the forefront of sustainable development, as it eyes the installation here of a $200-million combined solar and wind farm that would generate a total of 150 megawatts of renewable energy (RE).

“This is another pioneering role on the part of the Subic Bay Freeport, which is the first former military base to be successfully converted into a free-port zone,” Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia said in a media briefing on Monday.

“This will be one of the first

briefs

major clean-energy projects in the country and the biggest solar installation in the whole Southeast Asia, and it is a big honor for Subic to be the project site,” Garcia said. “ This is ver y significant, since the whole world is looking at RE nowadays,” he added.

The $200-million alternativeenergy project will be undertaken

by Emerging Power Inc. (EPI), an RE firm that has put up a 40MW geothermal power plant in Mindoro last year.

EPI is controlled by Nickel Asia Corp., one of the country’s biggest mining firms.

The SBMA had recently

GARCIA: “This is another pioneering role on the part of the Subic Bay Freeport, which is the first former military base to be successfully converted into a free-port zone.”

allowed EPI to acquire 90 percent of Jobin-SQM Inc., a Subic Freeport-registered company that signed a memorandum of agreement last year with the SBMA and the indigenous Ayta tribe of Pastolan for the

implementation of the cleanenergy project on Mount Santa Rita here.

The Pastolan Ayta tribe’s ancestral domain covers the proposed 800-hectare project site.

Garcia said the company hopes to have the Subic solarand wind-power project on stream by next year.

He said the project is in line with Republic Act 9513, or the Renewable Energy Act of 2008, which aims to accelerate the exploration and development of RE resources, increase utilization of such and promote their efficient and cost-effective commercial application.

The law was also designed

to effectively prevent or reduce harmful emissions to protect public health and the environment.

The development and promotion of RE has been set as among the priority projects of the national government under the Investment Priorities Plan of 2012, Garcia added.

He said the Jobin-EPI project will be a pioneering venture for the establishment of RE facilities in the Subic Bay Freeport Zone.

“This is a big stride toward sustainable development,” Garcia said.

“It will help us keep Subic green, and it will help us make the free port grow further,” he added.

PNA

CITY OF SAN FERNANDO, Pampanga—The city government has identified the priority programs for the utilization of the city’s 20-percent local development fund for 2016.

The local development council, chaired by Mayor Edwin Santiago, has bared the proposed projects for environmental management, social and economic development programs.

For 2016 the city’s estimated total 20-percent development fund amounts to P118 million, wherein 47.56 percent, or more than P56 million, will be used under economic development for the construction and rehabilitation of roads and bridges, farm mechanization, provision of irrigation facilities and aid to barangays.

The allotment for environmentalmanagement programs, on the other hand, is about 37.02 percent, or P44 million, to be utilized for urban greening developments; solid-waste management assistance program for barangays and communities; improvement of the city transfers station; rehabilitation of former city disposal facility; development of an ecopark; procurement of air-quality detector; and flood-control measures.

For social services, the appropriated amount is 15.42 percent, or more than P18 million, for the construction and rehabilitation of health centers and birthing stations, purchase of medical equipment and many more. PNA

ilocanos get 7 units of ambulance from pcso

LAOAG CITY—Ilocanos in this northern part of Luzon are the latest recipient of at least seven brand-new units of ambulance courtesy of the Philippine Charity Sweepstakes Office (PCSO).

Of the 18 ambulances the PCSO turned over to local government units (LGUs) in Ilocos Norte, Ilocos Sur and La Union, at least seven units were given to Piddig, Pagudpud, Vintar, Marcos, Solsona, San Nicolas and Batac City.

After a simple turnover ceremony held in Vigan recently, recipients expressed gratitude for another blessing meant to improve the delivery of health services in their local communities.

In Piddig town, Mayor Eduardo Guillen said on Monday that the provision of another unit of ambulance here will boost the operation of the Quick Response Office, popularly known as “Piddig Cares” in this town. PNA

Effective August 18, 2015.

Article 1 - Definitions Article 2 - Applicability Article 3 - Tickets Article 4 - Stopovers Article 5 - Fares and Charges Article 6 - Reservations Article 7 - Check-in Article 8 - Refusal and Limitation on Carriage Article 9 - Baggage Article 10 - Schedules, Cancellation And Change of Flights Article 11 - Refunds Article 12 - International Passenger Service Article 13 - Conducts Aboard the Aircraft Article 14 - Administrative Formalities Article 15 - Liability for Damage Article 16 - Time Limits for Complaints Article 17 - Effectiveness and Modifications ARTICLE 1 DEFINITIONS In Xiamen Airlines General Conditions of Carriage for International Passengers and Baggage (hereinafter referred to as Conditions), except where the context otherwise requires or where it is otherwise expressly provided, the following expressions have the meanings respectively assigned to them, that is to say: 1.1 “CONVENTION” means the following instruments that are applicable to air transportation according to the contract: Convention for the Unification of Certain Rules Relating to International Carriage by Air signed on 12 October 1929 at Warsaw (hereinafter referred to as “Warsaw Convention”), the Protocol to Amend the Convention for the Unification of Certain Rules Relating to International Carriage by Air signed at Warsaw on 12 October 1929,done at the Hague on 28 September 1955 (hereinafter referred to as “Hague Protocol”) and the Convention for the Unification of Certain Rules for International Carriage by Air signed at Montreal on 28 May 1999 (hereinafter referred to as “Montreal Convention”).

1.2 “INTERNATIONAL CARRIAGE” means carriage in which, according to a contract of carriage, one or more places of departure, destination and agreed stopping place is/are situated outside the People’s Republic of China.

1.3 “CARRIER” includes the air carrier issuing the ticket and all air carriers that carry or undertake to carry the passenger and/or his baggage there under.

1.4 “MF” is the abbreviation of Xiamen Airlines. (English name: XIAMEN AIRLINES, IATA membership code: MF, ICAO specified code: CXA, IATA Settlement Code: 731, Address: No. 22, Dailiao Road, Xiamen City, Website: www.xiamenair.com.cn; www.xiamenair.cn).

1.5 “XIAMEN AIRLINES REGULATIONS” means rules, other than these Conditions, published by the carrier and in effect on the date of ticket issue, governing carriage of passengers and/or baggage and shall include applicable tariffs and conditions of use.

1.6 “XIAMEN AIRLINES AUTHORIZED AGENT” means an agent authorized

by Xiamen Airlines to provide sales support for Xiamen Airlines flights.

1.7 “PASSENGER” means any person, except members of the crew, carried or to be carried in an aircraft with the consent of the carrier.

1.8 “TICKET” means the document entitled ‘Passenger Ticket and Baggage Check’ issued by or on behalf of a carrier and includes the Conditions of Contract and Notices and the flight and passenger coupons contained therein.

An E-ticket is an electronic image of a ticket, and is considered a form of ticket.

1.9 “CONJUNCTION TICKET” means a ticket issued to a passenger in conjunction with another ticket which together constitutes a single contract of carriage.

1.10 “FLIGHT COUPON” means that portion of the ticket that bears the notation “good for passage” and indicates particular places between which passengers are entitled to be carried.

1.11 “PASSENGER COUPON” or “PASSENGER RECEIPT” means that portion of the ticket marked with “Passenger Coupon” which ultimately is to be retained by the passenger.

1.12 “DAYS” means calendar days, including all seven days of the week; provided that, for the purpose of notification, the day upon which a notice is dispatched shall not be counted; and that for purposes of determining duration of validity, the day upon which the ticket is issued, or the flight commenced, shall not be counted.

1.13 “NORMAL FARE” means the highest fare approved for carriage in a given class of carriage during the applicable period of fares.

1.14 “SPECIAL FARE” means a fare other than the normal fare.

1.15 “BAGGAGE” means such articles, effects and other personal property of a passenger as are necessary or appropriate for wear, use, comfort or convenience in connection with the trip. Unless otherwise specified, it includes both checked and unchecked baggage of the passenger.

1.16 “CHECKED BAGGAGE” means baggage of which the carrier takes custody and for which the carrier has issued a baggage check.

1.17 “UNCHECKED BAGGAGE” means any baggage of the passenger other than checked baggage and under custody of the passenger.

1.18 “BAGGAGE CHECK” means those portions of the ticket which relate to the carriage of the passenger’s checked baggage.

1.19 “BAGGAGE IDENTIFICATION TAG” means a document issued by the carrier solely for identification of checked baggage.

1.20 “AGREED STOPPING PLACES” means those places, except the place of departure and the place of destination, set forth in the ticket or shown in the carrier’s timetables as scheduled stopping places on the passenger’s route.

1.21 “STOPOVER” means a deliberate interruption of a journey by the passenger, at a point between the place of departure and the place of destination, which has been agreed to in advance by the carrier.

1.22 “DAMAGE” includes: a) In the case of passenger bodily injury or death, damage sustained and caused by an accident occurring on board the aircraft or in the course of any of the operations of embarking or disembarking; b) In the case of loss, damage to or destruction of checked baggage, damage sustained while the checked baggage is on board the aircraft or at any time that the checked baggage is in charge of the carrier; c) In the case of unchecked baggage of which the Passenger takes charge, damage caused by the fault of the carrier or the employees/agents of the carrier.

1.23 “CODE-SHARE FLIGHT” means a carrier or several carriers use their airline designator code respectively on a flight operated by another carrier in accordance with agreements.

ARTICLE 2 APPLICABILITY 2.1 General 2.1.1 Except as provided in Para 2.2, 2.3, 2.4 and 2.5, these Conditions apply to all international carriage by air of passengers and baggage, performed

by Xiamen Airlines for remuneration; regarding code-share segments and flights, these Conditions also apply to carriage in which Xiamen Airlines is the operating carrier.

2.1.2 These Conditions also apply to gratuitous and discounted fare carriage except to the extent that Xiamen Airlines has provided otherwise in its Regulations or in the relevant contracts, passes or tickets.

2.2 These Conditions apply to the segments operated by Xiamen Airlines for the international carriage jointly performed by several successive carriers.

2.3 If carriage is performed pursuant to a charter agreement, these Conditions apply only to the extent they are incorporated by reference in the terms of the charter agreement and the charter ticket.

2.4 To the extent that any provision contained or referred to herein is contrary to anything contained in the Convention where applicable and in any applicable laws, government regulations, orders or requirements, such provision shall not apply. The invalidity of any provision shall not affect the validity of any other provision of these Conditions.

2.5 Except as provided herein, in the event of inconsistency between these Conditions and Xiamen Airlines Regulations, these Conditions shall prevail.

2.6 Carriage on routes between the Chinese Mainland and Hong Kong, Macao and Taiwan shall comply with these Conditions.

ARTICLE 3 TICKETS 3.1 General 3.1.1 The ticket constitutes prima facie evidence of the contract of carriage between the carrier and the passenger named on the ticket. Xiamen Airlines will provide carriage only to the passenger holding a ticket issued by Xiamen Airlines or its authorized agent. Xiamen Airlines ticket remains the property of Xiamen Airlines. The Contract Conditions listed on the ticket are a summary of some of the provisions of these Conditions of Carriage.

3.1.2 A passenger shall not be entitled to be carried on a flight unless that passenger presents a valid ticket issued pursuant to Xiamen Airlines Regulations containing the flight coupon for that flight and all other unused flight coupons and the passenger coupon. In addition, a passenger shall not be entitled to be carried if the ticket presented is mutilated or if it has been altered other than by Xiamen Airlines or its authorized agent.

3.1.3 Tickets are not transferable. If a ticket is presented by someone other than the person to whom it was issued for transport or for a refund, Xiamen Airlines shall not be liable to the original ticket holder if in good faith it provides carriage or makes a refund to the person presenting the ticket.

3.1.4 A ticket is invalid if it has been tempered with.

3.2 Period of validity 3.2.1 A ticket issued at normal fare is valid for carriage for one year from the date of commencement of travel or if no portion of the ticket is used, from the date of issue thereof.

3.2.2 A ticket issued at special fare is valid for carriage only for the period subject to the conditions prescribed in Xiamen Airlines Regulations.

3.2.3 The validity period of a ticket starts from the commencement of travel or midnight of the second day after the ticket is issued and ends at midnight of the second day after the period expires.

3.3 Extension of validity

3.3.1 If a passenger is prevented from traveling within the period of validity of the ticket because Xiamen Airlines: a) cancels the flight on which the passenger holds a reservation; or b) omits a scheduled stop, being the passenger’s place of departure, place of destination or a stopover; or c) fails to operate a flight reasonably according to schedule; or d) causes the passenger to miss a connection; or e) substitutes a different class of service; or f) is unable to provide previously confirmed space.

The validity of such passenger’s ticket will be extended until Xiamen Airlines first flight on which space is available in the class of service for which the fare has been paid.

3.3.2 If a passenger holding a valid ticket is prevented from traveling within the valid period of the ticket because Xiamen Airlines fails to provide a seat on the flight in accordance with the passenger’s reservation, the validity of such passenger’s ticket will be extended until Xiamen Airlines first flight on which space is available in the class of service for which the fare has been paid.

3.3.3 If a passenger after having commenced his or her journey is prevented from traveling within the period of validity of the ticket by reason of illness, unless precluded by Xiamen Airlines’ regulations applicable to the fare paid by the passenger, Xiamen Airlines will extend the period of validity of such passenger’s ticket until the date when the passenger becomes fit to travel according to a medical certificate, or until Xiamen Airlines first flight after such date from the point where the journey is resumed on which space is available in the class of service for which the fare has been paid. When the flight coupons remaining in the ticket involve one or more stopovers, the validity of such ticket will be extended for not more than three months from the date shown on such a certificate. In such circumstances, Xiamen Airlines will extend similarly the period of validity of tickets of other members accompanying the incapacitated passenger.

3.3.4 In the event of death of a passenger en route, the tickets of the persons accompanying the passenger may be modified by waiving the minimum stay or extending the validity. In the event of a death in the immediate family of a passenger who has commenced travel, the validity of the passenger’s ticket and those of his or her immediate family accompanying the passenger may be likewise modified. Any such modification shall be made upon receipt of a valid death certificate and any such extension of validity shall not be for a period longer than forty-five (45) days from the date of death.

3.4 Flight coupon sequence (applies to paper tickets only) 3.4.1 Xiamen Airlines will honor flight coupons only in sequence from the place of departure as shown on the ticket.

3.4.2 The ticket may not be valid and Xiamen Airlines may not honor the passenger’s ticket if the first flight coupon for international travel has not been used and the passenger commences his or her journey at any stopover or agreed stopping place.

3.4.3 Each flight coupon will be accepted for carriage in the class of service specified therein on the date and flight for which space has been reserved.

When flight coupons are issued without a reservation being specified thereon, space will be reserved subject to the applicable tariff conditions and the availability of space on the flight requested.

3.5 Loss of ticket (applies to paper tickets only) 3.5.1 In case of loss of an unused ticket or its flight coupon, a MCO or its exchange coupon, and other traffic documents, the passenger must take sole responsibility. Xiamen Airlines shall not be obliged to make a refund or issue a new one for the lost document. Xiamen Airlines may refuse a passenger’s request for the refund and reissue, or make a refund or reissue according to conditions specified in Xiamen Airlines Regulations.

3.5.2 In case of loss or mutilation of a ticket or its passenger coupon and all unused flight coupons, or part thereof, Xiamen Airlines may refund such ticket or replace such ticket or part thereof by issuing a new ticket upon receipt of passenger’s loss report made either to Xiamen Airlines or its authorized agent in the form prescribed in Xiamen Airlines Regulations, of satisfactory proof that a ticket valid for the flight in question was duly issued, and of a certificate issued by local public security authority.

3.5.3 The lost ticket becomes void after it is replaced. The ticket replaced cannot be refunded.

3.5.4 Refund of the lost ticket can only be made within 30 days after the expiration of the ticket. The lost ticket that has been fraudulently refunded or used will not be refundable.

3.5.5 In case of the loss of a MCO, the passenger can not apply for a reissue but refund only.

3.6 The carrier’s name may be abbreviated. The carrier’s address shall be deemed to be the airport of departure shown opposite the first abbreviation of the carrier’s name in the “Carrier” box in the ticket.

ARTICLE 4 STOPOVERS Stopovers may be permitted at agreed stopping places subject to government requirements and Xiamen Airlines relevant tariff conditions.

ARTICLE 5 FARES AND CHARGES 5.1 Fares apply only for carriage from the airport at the place of departure to the airport at the place of destination. Fares do not include ground transport service between airports and between airports and town areas.

5.2 Applicable fares are those published by or on behalf of Xiamen Airlines or, if not so published, constructed in accordance with Xiamen Airlines Regulations. The applicable fare is the fare for the flight or flights in effect on the date of commencement of the carriage covered by the first flight coupon of the ticket. When the amount that has been collected is not the applicable fare, the difference shall be paid by the passenger, or, as the case may be, refunded by Xiamen Airlines.

5.3 Unless otherwise provided in Xiamen Airlines Regulations, fares apply only to routings published in connection therewith. If there is more than one routing at the same fare, the passenger may specify the routing prior to issue of the ticket. If no routing is specified, Xiamen Airlines or its authorized agent may determine the routing.

5.4 Any tax or charge imposed by government or other authority, or by the operator of an airport, in respect of a passenger or the use by a passenger of any services or facilities will not be included in the published ticket fare and shall be payable by the passenger.

5.5 Fares and charges are payable in any currency acceptable to Xiamen Airlines. When payment is made in a currency other than the currency in which the fare is published, such payment will be made at the rate of exchange published by a bank on the day such payment is made.

ARTICLE 6 RESERVATIONS 6.1 Reservation requirements 6.1.1 Reservations are not confirmed until recorded as accepted by Xiamen Airlines or its authorized agent. Reservations will not be valid until the fare has been paid in accordance with the procedures and time limits set forth by Xiamen Airlines and a ticket has been issued with the reservations listed on the corresponding flight coupon by Xiamen Airlines or its authorized agent.

6.1.2 As provided in Xiamen Airlines Regulations, certain fares may have conditions which limit or exclude the passenger’s right to change or cancel reservations.

6.2 If a passenger has not paid for the ticket prior to the specified ticketing time limit, Xiamen Airlines may cancel the reservation.

6.3 The passenger recognizes that personal data has been given to Xiamen Airlines for the purposes of making a reservation for carriage and for obtaining ancillary services. For these purposes, the passenger authorizes Xiamen Airlines to retain such data and to transmit it to its own offices, other carriers or the providers of such services.

6.4 Xiamen Airlines does not guarantee to provide any particular seat in the aircraft and the passenger agrees to accept any seat that may be allotted on the flight in the class of service for which the ticket has been issued.

6.5 If a passenger fails to occupy space that has been reserved for him on a flight and without any notice, Xiamen Airlines shall be entitled to cancel any onward or return reservations that Xiamen Airlines has made or procured for the passenger. A service charge may be payable by such passenger who fails to use space for which a reservation has been made.

6.6 If a passenger holding an onward or return ticket stays at the onward or returning point for a period longer than 72 hours, he must reconfirm his onward or return reservation at least 72 hours before flight departure, otherwise the reservation may be cancelled. If a passenger arrives at the onward or return point within 72 hours before flight departure, no reconfirmation is needed.

6.7 If a passenger purchases a ticket for a code-share flight, Xiamen Airlines and its sales agent shall inform the passenger about the nature, marketing carrier and operating carrier of the flight in reservation and ticket purchase.

ARTICLE 7 CHECK-IN 7.1 The passenger shall arrive at Xiamen Airlines check-in location and boarding gate sufficiently in advance of flight departure to permit completion of any government formalities and departure procedures.

If the passenger fails to arrive in time at Xiamen Airlines check-in location or boarding gate or appears improperly documented and not ready to travel, Xiamen Airlines may cancel the space reserved for the passenger and will not delay the flight. Xiamen Airlines is not liable to the passenger for loss or expense due to the passenger’s failure to comply with the provisions of this paragraph.

ARTICLE 8 REFUSAL AND LIMITATION ON CARRIAGE 8.1 Xiamen Airlines may refuse carriage of any passenger or passenger’s baggage, without liability to the passenger for any loss resulting there from, for reasons of safety or if, in the exercise of its reasonable discretion, Xiamen Airlines determines that: a) such action is necessary in order to comply with any applicable laws, regulations or orders of any state to be flown from, to or over; or b) the conduct, age, mental or physical state of the passenger is unfit for air transportation and is such as to cause discomfort to other passengers or present a hazard or risk to himself or herself or to other persons or to property; or c) such action is necessary because the passenger has failed to observe the instructions of Xiamen Airlines; or d) the passenger has refused to submit to a security check; or e) the passenger has not paid the applicable fare or any charges or taxes payable; or f) the passenger does not appear to have valid travel documents, or the passenger may seek to enter a country through which he or she may be in

transit or the passenger may destroy his or her documents during flight or refuse to surrender his or her travel documents to the flight crew, against receipt, when requested; or g) the ticket presented by the passenger has been acquired unlawfully or has been purchased from an entity other than Xiamen Airlines or its authorized agent or has been reported as being lost or stolen or is a counterfeit ticket, or the flight coupon has been altered by anyone other than Xiamen Airlines or its authorized agent or has been mutilated; or h) the person presenting the ticket cannot prove that he or she is the person named in the “Name of Passenger” box of the ticket.

8.2 Arrangements for passengers who are refused for carriage: a) As for the passenger who is refused for carriage due to reasons described in item a) of Para 8.1, Xiamen Airlines will make a refund in accordance with regulations specified in Para 11.4 “Involuntary refund”; b) As for the passenger who is refused for carriage due to reasons described in item b), c), d), f) of Para 8.1, Xiamen Airlines will make a refund in accordance with regulations specified in Para 11.5 “Voluntary refund”; c) As for the passenger who is refused for carriage due to reasons described in item e) of Para 8.1, Xiamen Airlines will accept for carriage after the passenger paid up the fare and charge difference, or make a refund in accordance with regulations specified in Para 11.4 “Involuntary refund”; d) As for the passenger who is refused for carriage due to reasons described in item g), h) of Para 8.1, Xiamen Airlines reserves the right to retain his/her ticket.

8.3 Acceptance for carriage of special passengers, such as unaccompanied children, incapacitated persons, pregnant women or persons with illness is subject to prior consent and arrangement with Xiamen Airlines in accordance with Xiamen Airlines Regulations.

ARTICLE 9 BAGGAGE 9.1 Items unacceptable as baggage a) The passenger shall not include in his or her baggage: 1) Items which do not constitute baggage as defined in Para 1 hereof; 2) Items such as those specified in the International Civil Aviation Organization (ICAO) Technical Instructions for the Safe Transport of Dangerous Goods

by Air, the International Air Transport Association (IATA) Dangerous Goods Regulations and Xiamen Airlines Regulations, which are likely to endanger the aircraft or persons or property on board the aircraft and prohibited from air transport; 3) Items the carriage of which is prohibited by the applicable laws, regulations or orders of any state to be flown from, to or over; 4) Items which in the opinion of Xiamen Airlines are unsuitable for carriage by reason of their weight, size or character, such as fragile or perishable items; 5) Other than special dog breeds such as seeing eye dog, hearing dog and search and rescue dog, Xiamen Airlines does not accept live pet animals to be transported as baggage. b) Firearms and ammunition, other than for hunting and sporting purposes, are prohibited from carriage as baggage. Firearms and ammunition for hunting and sporting purposes may be accepted as checked baggage, which are subject to valid Firearms Transport Permit. Firearms must be unloaded with the safety catch on and suitably packed. Carriage of ammunition is subject to ICAO and IATA regulations as specified in sub-item a) 2) above; c) The passenger shall not include in his/her checked baggage, fragile or perishable items, money, jewelry, precious metals, silverware, negotiable papers, securities or other valuables, business documents, passports and other identification documents or samples; d) Weapons such as antique firearms, swords, knives and similar items may be accepted as checked baggage, in accordance with Xiamen Airlines Regulations, but will not be permitted in the cabin; e) If any items referred to in item a) or b) of Para 9.1 are carried, whether or not they are prohibited from carriage as baggage, the carriage thereof shall be subject to the charges, limitations of liability and other provisions of these Conditions applicable to the carriage of baggage. f) Special dog breeds such as seeing eye dog, hearing dog and search and rescue dog, together with containers, will be carried free of charge in addition to the normal free baggage allowance, and subject to Xiamen Airlines Regulations.

9.2 Right to refuse carriage 9.2.1 Xiamen Airlines may refuse carriage as baggage of such items described in Para 9.1 above which are prohibited from carriage as baggage and may refuse further carriage of any such items on discovery thereof.

9.2.2 Xiamen Airlines may refuse to carry as checked baggage such items as their package, weight, volume or character is not suitable for carriage.

9.2.3 Unless advance arrangements for its carriage have been made with Xiamen Airlines, Xiamen Airlines may carry on later flights baggage which is in excess of the applicable free allowance.

9.2.4 Xiamen Airlines may refuse to accept baggage as checked baggage unless it is properly packed in suitcases or other suitable containers to ensure safe carriage with ordinary care in handling.

9.3 Right to search For reasons of safety and security, Xiamen Airlines or other security authorities may request the passenger to permit a search to be made of his or her person and his or her baggage, and may search or have searched the passenger’s baggage in his or her absence if the passenger is not available, for the purpose of determining whether he or she is in possession of or whether his or her baggage contains any items described in item a) of Para 9.1 or any arms or ammunitions which have not been presented to Xiamen Airlines in accordance with item b) of Para 9.1. If the passenger is unwilling to comply with such request, Xiamen Airlines may refuse to carry the passenger or baggage.

9.4 Checked baggage 9.4.1 The passenger shall mark his/her name and destination to the baggage prior to acceptance.

9.4.2 Upon delivery to Xiamen Airlines of baggage to be checked, Xiamen Airlines shall take custody thereof and issue a baggage identification tag for each piece of checked baggage.

9.4.3 Xiamen Airlines shall enter the pieces and weight of any checked baggage in the proper column on the Passenger Ticket and Baggage Check.

9.4.4 Checked baggage will be carried on the same aircraft as the passenger unless Xiamen Airlines decides that this is impracticable, in which case Xiamen Airlines will carry the checked baggage on Xiamen Airlines next flight on which space is available.

9.4.5 Each piece of checked baggage shall not exceed 32 kilograms in weight and 40cm×60cm×100cm in three dimensions, Acceptance of any piece of baggage exceeding 32 kilograms in weight or 40cm×60cm×100cm in three dimensions is subject to prior approval of Xiamen Airlines.

9.5 Free baggage allowance 9.5.1 In respect of international carriage performed by Xiamen Airlines, the free baggage allowance will be determined on the basis of weight concept and piece concept respectively. The piece concept applies to carriage to and from United States, Canada and Europe. The weight concept applies to carriage to and from other states.

9.5.2 Weight concept Except as otherwise provided in Xiamen Airlines Regulations, the free baggage allowance for each passenger will be limited as follows: a) Free allowance for adults A passenger paying applicable first class fare is entitled to a free baggage allowance of 40 kilograms. A passenger paying applicable business class fare is entitled to a free baggage allowance of 30 kilograms. A passenger paying applicable economy class fare is entitled to a free baggage allowance of 20 kilograms; b) Free allowance for children/infants Children are entitled to the same free baggage allowance as adult passengers. Infants are not entitled to a free baggage allowance, and only one fully collapsible stroller or pushchair shall be allowed. Infants paying the children’s fare are entitled to the same free baggage allowance as adult passengers.

9.5.3 Piece concept Except as otherwise provided in Xiamen Airlines Regulations, the free baggage allowance for each passenger will be limited as follows: a) Free allowance for adults A passenger paying applicable first class fare is entitled to a free baggage allowance of 3 pieces, of which the weight shall not exceed 32 kilograms for each piece. A passenger paying applicable business class fare is entitled to a free baggage allowance of 2 pieces, of which the weight shall not exceed 32 kilograms for each piece. A passenger paying applicable economy class fare is entitled to a free baggage allowance of 1 piece, of which the weight shall not exceed 23 kilograms. The maximum sum of three dimensions (length, width and height) of any piece in the above free baggage allowance shall not be more than 158cm; b) Free allowance for children/infants Children and infants paying the children’s fare are entitled to the same free baggage allowance as adult passengers.

Infants paying 10% of the applicable fare are entitled to 1 piece, of which the weight shall not exceed 10 kilograms and the sum of three dimensions shall not exceed 115cm, plus one fully collapsible stroller or pushchair.

9.5.4 For through journeys where the passenger travels on combined class service, the free baggage allowance on each portion of travel shall be that applicable to the service for which the fare is paid.

9.5.5 Where two or more passengers, traveling as one party to a common destination or point of stopover by the same flight, present themselves and their baggage for travel at the same time and place, pooling of baggage will be permitted under either the weight or piece concept.

9.5.6 Where voluntary reroutings are made, a passenger shall be entitled to the free baggage allowance appropriate to the class of service for the rerouted portion. Where involuntary reroutings are made, a passenger shall be entitled to the free baggage allowance applicable to the fare originally paid.

9.6 Excess baggage 9.6.1 Excess baggage means the baggage to be carried in excess of the free baggage allowance for checked and unchecked baggage.

9.6.2 Xiamen Airlines will provide carriage of excess baggage only to the passenger who has paid the excess baggage charge and for which the excess baggage ticket has been issued.

9.6.3 A passenger shall pay the excess baggage charge at the rate and in the manner provided in Xiamen Airlines Regulations.

9.7 Excess value declaration and charge 9.7.1 A passenger may declare a value for checked baggage in excess of USD 20 (or its equivalent) per kilogram.

9.7.2 When such a declaration is made, the excess value charge shall be at the rate of 5‰ of such excess value as described in Para 9.7.1.

9.7.3 No baggage of each passenger will be accepted for carriage by Xiamen Airlines if the declared value is in excess of USD 2,500 (or its equivalent).

9.7.4 Xiamen Airlines will refuse to accept an excess value declaration on checked baggage when a portion of the carriage is to be provided by another carrier which does not offer the facility.

9.8 Unchecked baggage 9.8.1 Unchecked baggage must fit under the seat in front of the passenger or in an enclosed storage compartment in the cabin with maximum dimensions not exceeding 20cmx40cmx55cm.

9.8.2 Unchecked baggage comprises free carry-on items and cabin baggage.

9.8.3 Free carry-on items 9.8.3.1 According to Xiamen Airlines Regulations, each passenger may carry items no heavier than 5 kilograms for use during the trip without additional charge.

9.8.3.2 No baggage tag shall be attached to the free carry-on items.

9.8.4 Cabin baggage 9.8.4.1 Objects not suitable for carriage in the cargo compartment will only be accepted as cabin baggage, if prior permission has been granted by Xiamen Airlines.

9.8.4.2 Cabin baggage shall be weighed and counted towards the free baggage allowance.

9.8.4.3 A baggage tag shall be issued for each piece of cabin baggage.

9.8.4.4 The carriage of cabin baggage may be charged separately.

9.9 Collection and delivery of baggage 9.9.1 The passenger shall collect his or her baggage as soon as it is available for collection at places of destination or stopover.

9.9.2 Only the bearer of the baggage check and identification tag, delivered to the passenger at the time the baggage was checked, is entitled to delivery of baggage. Failure to exhibit the baggage identification tag shall not prevent delivery provided the baggage check is produced and the baggage is identified by other means.

9.9.3 If a person claiming the baggage is unable to produce the baggage check and identify the baggage by means of a baggage identification tag, Xiamen Airlines will deliver the baggage to such person only on condition that he or she establishes to Xiamen Airlines satisfaction his or her right thereto, and if required by Xiamen Airlines, such person shall fill in such application form as prescribed by Xiamen Airlines, furnishing adequate security to indemnify Xiamen Airlines for any damage or expense which may be incurred

by Xiamen Airlines as a result of such delivery.

ARTICLE 10 SCHEDULES, CANCELLATIONS AND CHANGES OF FLIGHTS 10.1 Xiamen Airlines undertakes to use its best efforts to carry the passenger and his baggage with reasonable dispatch and to adhere to the schedule in effect on the date of travel.

10.2 Cancellation and change of flights 10.2.1 When circumstances so require, Xiamen Airlines may, without prior notice, change aircraft type, divert, cancel, terminate, postpone, or delay any flight: a) in order to comply with any applicable laws, regulations or orders of any state to be flown from, to or over; or b) in order to assure safe operation of a flight; or c) circumstances beyond the control and prediction of Xiamen Airlines.

10.2.2 If due to circumstances listed in Para 10.2.1, Xiamen Airlines cancels a flight, fails/delays to operate reasonably according to schedules, is unable to provide previously confirmed space, causes a passenger to miss a connecting flight on which the passenger holds a reservation, Xiamen Airlines, with due consideration to the passenger’s reasonable requirement, shall either: a) carry the passenger on another of its scheduled passenger services on which space is available; or b) reroute the passenger to the destination indicated on the ticket or applicable portion thereof by its own scheduled services or the scheduled services of another carrier, or by means of surface transportation. If the sum of the fare, excess baggage charge and applicable service charge for the revised routing is higher than the refund value of the ticket or applicable portion thereof, Xiamen Airlines shall require no additional fare or charge from the passenger and shall refund the difference if the fare and charges for the revised routing are lower; or. c) make a refund subject to regulations specified in Para 11.4 “Involuntary refund”; d) help passengers arrange accommodations, surface transportation and other service.

10.3 If due to circumstances on the fault of Xiamen Airlines, Xiamen Airlines cancels or delays any flight, is unable to provide previously confirmed space, causes a passenger to miss a connecting flight on which the passenger holds a reservation, fails to stop at the point of destination or stopover point, Xiamen Airlines shall make arrangements in accordance with regulations specified in item a), b), c) of Para 10.2.2 and provide resting place, beverages, foods, accommodations and other appropriate services free of charge.

10.4 Except in the case of its acts or omissions done with intent to cause damage or recklessly and with knowledge that damage would probably result, Xiamen Airlines shall not be liable for errors or omissions in timetables or other published schedules, or for representations made by employees, agents or representatives of Xiamen Airlines as to the dates or times of departure or arrival or as to the operation of any flight.

ARTICLE 11 REFUNDS 11.1 On failure by Xiamen Airlines to provide carriage in accordance with the contract of carriage, or where a passenger requests a voluntary change of his or her arrangements, refund for an unused ticket or portion thereof shall be made by Xiamen Airlines in accordance with this paragraph and Xiamen Airlines Regulations.

11.2 Passenger requesting refund shall fill in “REFUND APPLICATION LETTER” as prescribed by Xiamen Airlines.

11.3 Person to whom refund will be made 11.3.1 Except as hereinafter provided in this paragraph, Xiamen Airlines shall be entitled to make a refund either to the person named in the ticket, or to the person who has paid for the ticket upon presentation of satisfactory proof.

11.3.2 If a ticket has been paid for by a person other than the passenger named in the ticket, and Xiamen Airlines has indicated on the ticket that there is a restriction on refund, Xiamen Airlines shall make a refund only to the person paying for the ticket or to that person’s order.

11.3.3 Except in the case of lost tickets, refunds will only be made on surrender to Xiamen Airlines of the passenger coupon or passenger receipt and surrender of all unused flight coupons.

11.3.4 A refund made to anyone presenting the passenger coupon or passenger receipt and all unused flight coupons and holding himself or herself out as a person to whom refund may be made in terms of Para 11.3.1 or Para 11.3.2 shall be deemed a proper refund to such person and shall discharge Xiamen Airlines from liability and any further claim for refund.

11.4 Involuntary refund may be made if Xiamen Airlines cancels a flight, fails to operate a flight reasonably according to schedule, fails to stop at a point to which the passenger is destined or ticketed to stopover, is unable to provide confirmed space or causes the passenger to miss a connection flight on which the passenger holds a reservation. The amount of the refund shall be: 11.4.1 If no portion of the ticket has been used, an amount equal to the fare paid; 11.4.2 If a portion of the ticket has been used, the refund will be the higher of the one way fare (less applicable discounts and charges) from point of interruption to destination or point of next stopover and the difference between the fare paid and the fare for the transportation used.

11.5 Voluntary refund may be made if the passenger wishes a refund of his or her ticket for reasons other than those set out in Para 11.4. The amount of the refund shall be: 11.5.1 If no portion of the ticket has been used, an amount equal to the fare paid, less any applicable service charges or cancellation fees; 11.5.2 If a portion of the ticket has been used, any refund will be an amount equal to the difference between the fare paid and the applicable fare for travel between the points for which the ticket has been used, less any applicable service charges or cancellation fees.

11.6 Refund on lost ticket 11.6.1 If a ticket or portion thereof is lost, refund will be made within thirty (30) days after the expiration of the ticket on proof of loss satisfactory to Xiamen Airlines and upon payment of any applicable service charge, on condition that the person to whom the refund is made undertakes, in such form as may be prescribed by Xiamen Airlines, to repay to Xiamen Airlines the amount refunded in the event and to the extent that the lost ticket or portion thereof is used by any person or that refund thereof is made to any person in possession of the ticket.

11.6.2 Refund on lost ticket shall be made in accordance with regulations specified in Para 11.5 “Voluntary refund”.

11.7 Right to refuse refund 11.7.1 Xiamen Airlines may refuse refund when application therefore is made later than thirty (30) days after the expiry of the validity of the ticket.

11.7.2 Xiamen Airlines may refuse refund on a ticket which has been presented to Xiamen Airlines or to government official of a country as evidence of intention to depart there from, unless the passenger establishes to Xiamen Airlines satisfaction that he or she will depart there from by another carrier or another means of transport.

11.8 All refunds will be made subject to government laws, rules and regulations or orders of the country on which the ticket was originally purchased and of the country in which the refund is being made. Subject to the foregoing provision, refunds will normally be made in the currency in which the ticket was paid for, or, at the option of Xiamen Airlines, in the currency specified by Xiamen Airlines.

11.9 Refund will be made only by Xiamen Airlines or its authorized agent at the original issue place or at the place agreed by Xiamen Airlines.

ARTICLE 12 INTERNATIONAL PASSENGER SERVICE 12.1 Except as otherwise provided in Xiamen Airlines regulations, the meal served in the aircraft shall be provided by Xiamen Airlines, but Xiamen Airlines cannot guarantee the types and quantities other than those specified in its regulations.

12.2 If in the course of concluding the contract of carriage by air, Xiamen Airlines also agrees to make arrangements for the provision of additional services. Xiamen Airlines shall have no liability to the passenger except for negligence on its part in making such an arrangement.

ARTICLE 13 CONDUCTS ABOARD THE AIRCRAFT 13.1 If a passenger conducts himself or herself aboard the aircraft in a manner that endangers the aircraft or any person or property on board, or obstructs the crew in the performance of their duties, or fails to comply with any instruction of the crew, or behaves in a manner to which other passengers may reasonably object, Xiamen Airlines may take such measures as it deems necessary to prevent continuation of such conduct, including restraint of the passenger.

13.2 The passengers may not operate aboard the aircraft portable radios, recorders, mobile phones, electronic games or transmitting devices including radio controlled toys and walkie-talkies. The passengers shall not operate any other electronic devices on board without Xiamen Airlines permission, except that hearing aids and heart pacemakers may be used.

ARTICLE 14 ADMINISTRATIVE FORMALITIES 14.1 The passenger shall be solely responsible for complying with all laws, regulations, orders, demands and travel requirements of countries to be flown from, to or over, and with Xiamen Airlines regulations and instructions. Xiamen Airlines shall not be liable for any aid or information given by any agent or employee of Xiamen Airlines to any passenger in connection with obtaining necessary documents or visas or complying with such laws, regulations, orders, demands and requirements, whether given in writing or otherwise; or for the consequences to any passenger resulting from his failure to obtain such documents or visas or to comply with such laws, regulation, orders, demands, requirements, rules or instructions.

14.2 The passenger shall present all exit, entry, health and other documents required by laws, regulations, orders, demands or requirements of the countries concerned. Xiamen Airlines reserves the right to refuse carriage of any passenger who has not complied with applicable laws, regulation, orders, demands or requirements or whose documents do not appear to be in order.

14.3 Subject to applicable laws and regulations, the passenger agrees to pay the applicable fare whenever Xiamen Airlines, on government order, is required to return a passenger to his point of origin or elsewhere, owing to the passenger’s inadmissibility into a country, whether of transit or of destination.

Xiamen Airlines may apply to the payment of such fare any funds paid to Xiamen Airlines for unused carriage, or any funds of the passenger in the possession of Xiamen Airlines. The fare collected for carriage to the point of refusal of entry or deportation will not be refunded by Xiamen Airlines.

14.4 If Xiamen Airlines is required to pay or deposit any fine or penalty or to incur any expenditure by reason of the passenger’s failure to comply with laws, regulations, orders, demands and travel requirements of the countries concerned or to produce the required documents, the passenger shall on demand reimburse to Xiamen Airlines any amount so paid or deposited and any expenditure so incurred. Xiamen Airlines may use towards such expenditure any funds paid to Xiamen Airlines for unused carriage, or any fund of the passenger in his possession of Xiamen Airlines.

14.5 If required, the passenger shall attend inspection of his baggage, checked or unchecked, by customs or other government officials. Xiamen Airlines is not liable to the passenger for any loss or damage suffered by the passenger through failure to comply with these requirements.

14.6 The passenger shall observe all provisions of laws, regulations, orders, demands and travel requirements of the countries concerned during the carriage, and submit to any security checks by government or airport official or by Xiamen Airlines.

ARTICLE 15 LIABILITY FOR DAMAGE 15.1 Carriage to be performed by several successive air carriers under one ticket, or under a ticket and any conjunction ticket issued in connection therewith, is regarded as a single operation.

15.2 International carriage herein conducted by Xiamen Airlines is subject to the rules and limitations relating to liability established by the Convention unless such carriage is international carriage to which the Convention does not apply.

15.3 In carriage which is not international carriage to which the Convention applies: 15.3.1 Xiamen Airlines shall be liable for damage to a passenger or his checked baggage only if such damage has been caused by the negligence of Xiamen Airlines. If there has been contributory negligence on the part of the passenger, Xiamen Airlines liability shall be subject to the applicable law relating to contributory negligence. 15.3.2 Except in the case of acts or omissions done with intent to cause damage or recklessly and with knowledge that the damage would probably result, the liability of Xiamen Airlines in respect to each passenger for death, wounding or other bodily injury shall be limited to the sum of 250,000 Gold Francs (about USD 20,000).

15.4 To the extent not in conflict with the foregoing and whether or not the Convention applies: 15.4.1 Xiamen Airlines is liable only for damage occurring on its own flights.

If Xiamen Airlines, as an agent, issues a ticket or checks baggage for carriage (including code-share flights) of another carrier, the passengers only have right to bring an action against the first or last carrier. If change, delay, cancellation, overbooking of the flight, damage or loss of the baggage, personal injury and other situations occur on the flight that is not conducted

by Xiamen Airlines (including code-share flight), the operating carrier shall be liable for the compensation and Xiamen Airlines may assist in contacting the operating carrier.

15.4.2 Xiamen Airlines is not liable for damage to unchecked baggage unless such damage is caused by the negligence of Xiamen Airlines.

15.4.3 Xiamen Airlines is not liable for any damage arising from its compliance with any laws or government regulations, orders or requirements, or from failure of the passenger to comply with the same.

15.4.4 Except in the case of acts or omissions done with intent to cause damage or recklessly and with knowledge that the damage would probably result, the liability of Xiamen Airlines in the case of damage to checked baggage shall be limited to 250 Gold Francs (equal to USD 20) per kilogram and in the case of damage to unchecked baggage shall be limited to 5000 Gold Francs (equal to USD 400) per passenger. If the weight of the baggage is not recorded on the baggage check, it is presumed that the total weight of the checked baggage does not exceed the applicable free baggage allowance for the class of service concerned. If a higher value is declared for the checked baggage, the liability of Xiamen Airlines shall be limited to such higher declared value.

15.4.5 Xiamen Airlines liability shall not exceed the amount of proven damages. Xiamen Airlines shall furthermore not be liable for indirect or consequential damages.

15.4.6 Xiamen Airlines is not liable for injury to a passenger or for damage to a passenger’s baggage caused by property contained in the passenger’s baggage. Any passenger whose property causes injury to another person or damage to another person’s property or to the property of Xiamen Airlines shall indemnify Xiamen Airlines for all losses and expenses incurred by Xiamen Airlines as a result thereof.

15.4.7 Xiamen Airlines is not liable for damage to fragile or perishable articles, money, jewelry, silverware, negotiable papers, securities, or other valuables, business documents, passports and other identification documents, or samples, which are included in the passenger’s checked baggage. Xiamen Airlines liability for the aforementioned will be the same as ordinary checked baggage.

15.4.8 If a passenger is carried whose age or mental or physical condition is such as to involve any hazard or risk to himself or herself, Xiamen Airlines shall not be liable for any illness, injury or disability, including death, attributable to such condition or for the aggravation of such condition.

15.4.9 Any exclusion or limitation of liability of Xiamen Airlines shall apply to and be for the benefit of agents, employees and representatives of Xiamen Airlines and any person whose aircraft is used by Xiamen Airlines and such person’s agent, employees and representatives. The aggregate amount recoverable from Xiamen Airlines and from such agents, employees, representatives and person shall not exceed the amount of Xiamen Airlines limit of liability.

15.4.10 Unless so expressly provided nothing herein contained shall waive any exclusion or limitation of liability of Xiamen Airlines under the Convention or applicable laws.

ARTICLE 16 TIME LIMITS FOR COMPLAINTS 16.1 Acceptance of baggage by the bearer of the baggage check without complaint at the time of delivery is prima facie evidence that the baggage has been delivered in good condition and in accordance with the contract of carriage, unless the passenger proves otherwise.

16.2 In the case of damage, the person entitled to delivery must complain in writing to Xiamen Airlines forthwith after the discovery of the damage, and, at the latest, within seven days from the date of receipt of the checked baggage.

In the case of delay, the complaint must be made in writing at the latest within twenty-one days from the date on which the baggage has been placed at his/ her disposal.

16.3 If Xiamen Airlines admits the loss of the checked baggage, or if the checked baggage has not arrived at the expiration of twenty-one days after the date on which it ought to have arrived, the passenger is entitled to enforce against the carrier the rights which flow from the contract of carriage.

16.4 The right to damages shall be extinguished if an action is not brought within a period of two years, reckoned from the date on which the aircraft ought to have arrived, or from the date of arrival at the destination, or from the date on which the carriage stopped.

ARTICLE 17 MISCELLANEOUS CONDITIONS 17.1 These Conditions of Carriage apply to transportation between Mainland China and Hong Kong/Macao SAR and Taiwan region.

17.2 These Conditions of Carriage are written in the Chinese and English languages. If there is any disparity between two versions, the Chinese version shall prevail.

ARTICLE 18 EFFECTIVENESS AND MODIFICATIONS 17.1 These Conditions of Carriage shall become effective as of the date on Aug. 18th, 2015.

17.2 Xiamen Airlines has the right to modify its Conditions of Carriage, regulations, fares, and charges in accordance with the procedures of the Civil Aviation Administration of China without notice. The conditions modified do not apply for the carriage undertaken before the modification.

17.3 No agent, employee or representative of the carrier has authority to alter, modify or waive any provision of these Conditions of Carriage. www.xiamenair.com/cn/en

A6 Wednesday, September 23, 2015

Opinion BusinessMirror

editorial

Yes to the Asean ‘open skies’ agreement

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T is reassuring to read about Cebu Pacific Air welcoming an “open skies” policy for the Philippines, a policy that will most certainly be beneficial to our country. As reported, Lance Y. Gokongwei, president of Cebu Pacific, said that the flag carrier “fully supports the ratification of the Asean Open Skies Multilateral Agreement, which allows designated Asean carriers to operate unlimited flights between capital airports.”

Earlier, it was reported that local airlines, presumably Philippine Airlines and Cebu Pacific, were skeptical about the benefits of the agreement to them and wanted the government to defer action on it. Gokongwei’s statement is a welcome denial of that report.

We have gone a long way from the one-airline “plane always late” bad old days. We have now two “generally punctual” airlines. Under ownership of private-sector financial tycoons, our airlines are today competitive with larger foreign airlines. Perhaps, they are not as dominant but they are surely arriving at that status. From what experts tell us, what these airlines need to do is to keep up with technological developments in the industry, as well as observe simple administrative procedures that guarantee on-time arrivals and departures of flights to expand their business. Growth will continue as they respond to competitive challenges from domestic and global sources.

The agreement gives carriers of Association of Southeast Asian Nations (Asean) member-countries, among other things, unlimited freedom to operate between capital cities, as well as to fly from their home country to a foreign country without that foreign country’s approval. Further, it allows any carrier to fly between two foreign countries during flights originating or ending in the airline’s home country. The benefits to the country that can flow out of the arrangement will include increases in tourist arrivals and expanded services to our overseas countrymen and countrywomen, both enriching our external earnings. To our airlines themselves, the impact will consist of palpable improvements to their bottom line.

As of the moment, the Philippines has not ratified the agreement, because it wants to introduce modifications necessitated by Philippine circumstances.

It is said that the Philippines wants “to make clear that the protocols are subject to the availability of slots in Manila.” If the authorities are worried that Manila’s Ninoy Aquino International Airport, because of its smallness, will not serve the purpose, so be it. Let us make the agreement the stimulus to speed up work on the Ninoy Aquino International Airport, enlarge and further modernize it, so that we don’t make an excuse that is clearly an insult to ourselves, a confession of lack of resources and wholesale underdevelopment, but instead respond to the opportunities of the larger regional community of nations to which we belong.

By its timetable, the multilateral agreement’s implementation should have begun this year in preparation for the integration of Asean into one economic community. The rest of Asean is awaiting our action. Let’s speed up the insertion of modifications appropriate to us and acceptable to our neighbors. Any delay in this action can only be injurious to our national interest.

SSS at 58: Inclusive growth, expansive reach Susie G. Bugante

All About Social Security

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ot every worker is entitled to a regular payday. For informal-sector workers, such as farmers, fishermen and even your friendly neighborhood tricycle driver, income can be erratic, leaving them and their dependents helpless amid the whims of nature and circumstances that hinder them from earning their keep for the day.

The Social Security System (SSS) is one with the national government in the pursuit for inclusive growth so that workers from all walks of life enjoy access to social protection. Within the past five years, it initiated service innovations that bring workers from the most vulnerable sectors of society within the SSS’s mantle of protection.

At the forefront of these initiatives are the AlkanSSSya program and partneragent arrangements with cooperatives and microfinance institutions that cater to informal-sector workers.

The SSS’s pursuit for inclusive growth requires an expansive reach.

While the SSS continues to widen its network of offices in the Philippines and overseas, the institution cannot achieve its objectives on its own. It needs the help of its partner-institutions and -organizations to carry out its mandate.

In recognition of the invaluable service of its partners, the SSS instituted the Balikat ng Bayan Awards in 1995 to honor and acknowledge them. The awarding ceremonies have become a yearly tradition of the SSS’s anniversary celebration in the month of September.

During the 2015 Balikat ng Bayan Awards at the SSS main office in Quezon City on September 18, special citations were conferred on the International Labor Organization as social-security partner for workers affected by Supertyphoon Yolanda (international code name Haiyan); Simbag sa Pag-Asenso Inc. (SEDP) as accredited servicing and collecting partner-agent; and the Quezon City Government-Office of the Vice Mayor and the Villa Cristina Verdan Rey Villeco Camella Manuela Tricycle Operators and Drivers Association as AlkanSSSya program partners.

The annual SSS awards also laud topperforming employers for the year. By design, employers are key partners of the SSS in the implementation of social-security programs for private-sector workers.

Under the Social Security Law, employers are obligated to report their workers for SSS coverage within 30 days from start of employment and facilitate the regular and timely remittance of their employees’ monthly contributions. For 2015 the national winners of the Top Employer awards were National Book Store and the Federation of Filipino-Chinese Chambers of Commerce and Industry for the large, and small and medium accounts, respectively.

The Balikat ng Bayan Awards also honors the SSS’s best collecting and paying partners. As a pension fund managing billions of pesos, the SSS needs safe, accessible and reliable channels for collecting contributions, and paying pensions and benefits to members and beneficiaries.

This year’s winners for best collection partners are Bank of the Philippine Islands (BPI) (BPI, commercial bank); Rizal Commercial Banking Corp. Savings Bank (thrift bank); One Network Bank Inc. (ONB, rural bank); CIS Bayad Center Inc. (nonoverseas Filipino workers (OFW) collecting partner); and Ventaja International Corp. (OFW collecting partner). Elevated to the Hall of Fame is RCBC Savings Bank for topping its category for five straight years. As for best paying partners, the winners were BPI (commercial bank)

Japan dumbs down its universities

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By Noah Smith | Bloomberg View

ost people who follow news from Japan will be paying attention to the economy, or possibly to the fistfight that broke out in the Diet over security policy. But there was a huge and very worrying change in Japanese education policy that somehow hasn’t received much public notice.

Essentially, Japan’s government just ordered all of the country’s public universities to end education in the social sciences, the humanities and law.

The order, issued in the form of a letter from Hakubun Shimomura, minister of education, culture, sports, science and technology, is nonbinding. The country’s two top public universities have refused to comply. But dozens of public schools are doing as the government has urged.

At these universities, there will be no more economics majors, no more law students, no more literature or sociology or political-science students. It’s a stunning, dramatic shift, and it deserves more attention than it’s receiving.

It is also a very bad sign for Japan, for a number of reasons.

First of all, eliminating social science could signal a return to a failing and outdated industrial policy. Many observers interpret the change as an economic policy, intended to move the Japanese populace toward engineering and other technical skills and away from fuzzy disciplines. But if this is, indeed, the aim, it’s a terrible direction for Japan to be going.

Japan’s rapid catch-up growth in the 1960s and 1970s was based on manufacturing industries. This is common for developing countries. But when countries get rich, they typically shift toward service industries. Finance, consulting, insurance, marketing and other service industries don’t produce material goods, but they help organize the patterns of production more efficiently—something Japan desperately needs. Since it’s a country with a shrinking population, it can only grow by increasing productivity.

But Japanese productivity has grown very slowly since the early 1990s, and has fallen far behind that of the US. If Japan is going to turn this situation around, it will need more than a work force of skilled engineers. It will need managers who can communicate with those engineers and with each other. It will need conceptual thinkers who can formulate business plans and strategic vision. It will need marketers who can establish and increase Japanese brand recognition. It will need financiers who can channel savings away from old, fading industries and

toward productive new ones. It will need lawyers to sort out intellectual property cases and help businesses navigate international legal systems.

It will need consultants to evaluate the operations of unprofitable, stagnant companies, and help those companies become profitable again.

In other words, it will need a bunch of social-science and humanities students.

So the education change is a big step backward economically. But what it signals about Japanese politics and the policy-making process might be even more worrying.

There may or may not be political reasons for the change. Japan’s humanities departments, like those in the US, lean heavily to the political left, and Japan’s conservative administration is in the process of reorienting security policy.

More darkly, the change might be part of a wider attempt by social conservatives— Abe’s main power bloc—to move the country in a more illiberal direction by stifling dissent and discussion.

But the main takeaway is that Japan’s policy-making process is arbitrary and dysfunctional. According to Takuya Nakaizumi, an economics professor at Kanto Gakuin University, the changes were probably written not by Minister Shimomura himself, but by more junior members of the Ministry of Education, Culture, Sports, Science and Technology. If that is true, it means that sweeping policy changes, which will affect the entire economic and social structure of the nation, are being made

Philippine Savings Bank (thrift bank), and ONB (rural bank). The Philippine National Bank also earned a special citation as paying commercial bank.

Disseminating information to more than 32 million individuals is a daunting task for any institution, even for the SSS. This is why the SSS draws support from its media partners in promoting the value of SSS programs and spreading news about its programs and policies.

The Balikat ng Bayan Best Media Partners for 2015 are “Jet Connects: Inyong SSS” by SKYcable Davao for broadcast; and the “Dangpanan” column by Rhona Goc-ong-Villariasa from Sun.Star Davao Superbalita for print. This publication, BusinessMirror, also received a special citation for its support in SSS information campaigns.

This year’s anniversary does not only commemorate the 58 years of the SSS. It is also a celebration of the dynamic partnerships the institution has nurtured over the years, bringing the SSS closer toward the vision of inclusive growth and universal social protection for Filipino workers.

For more information about the SSS and its programs, call the 24-hour call center at (632) 920-6446 to 55, Monday to Friday, or send an e-mail to member_relations@sss.gov.ph.

Susie G. Bugante is the vice president for public affairs and special events of the Social Security System. Send comments about this column to susiebugante.bmirror@gmail.com.

by junior officials via an unaccountable and opaque process.

Nakaizumi also suggested to me that the changes might have been made by the Ministry of Education, Culture, Sports, Science and Technology, without consulting the Ministry of Finance (MOF) or the Ministry of Economy, Trade and Industry (METI). If so, that is even more worrying.

The METI and the MOF understand the need for Japan to build a robust servicesector economy. But if they didn’t sign off on the education debacle, it means that policy that undermines their goals is being made right under their noses.

That would be ver y bad news for Japan, since it indicates a confused and disorganized policy-making apparatus. The sudden, sweeping nature of the reform, and the fact that it came from the ministries rather than the legislature, also highlights the woeful lack of checks and balances in the Japanese system. It takes large, expensive popular movements to undo the bad policies made by unaccountable officials in back rooms. Such a movement is already coalescing to fight the educationpolicy changes. But even if that effort succeeds, the policy changes will have created great risk, cost and disruption.

Japan needs to keep educating students in the social sciences and humanities. It needs to avoid a doomed attempt to return to a developing-country model of growth. It needs a more robust, less arbitrary, more transparent policy-making regime. Shimomura’s diktat bodes ill for all of these things.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Wednesday, September 23, 2015

A7

Silicon Valley’s vision for news

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By Alan D. Mutter | TNS

ith nearly three quarters of the population spending an average of three hours a day checking their smartphones for the latest buzz, the Silicon Valley behemoths are zeroing in on news as a valuable consumer service—and revenue source.

Leveraging their enormous audiences, vast troves of user data and state-of-the-art targeting algorithms, they’re creating master applications to deliver carefully tailored feeds to serve everyone’s individual information and entertainment needs. These powerful and personalized headlinedelivery platforms may be great for consumers, but they suggest that the best days may be in the rearview mirror for the dedicated news apps produced by media companies and a host of independent players. Here’s what the technorati have on offer: The granddaddy of aggregators is Google News. Founded in 2002, the site automatically culls, categorizes and personalizes articles from thousands of global publishers. Recognizing the considerable time people spend with their mobile phones, the company has supercharged its Google app so it can serve as both your primary news source and the road map to your life by tracking your calendar, your takeout orders and much more. Seeking to capitalize on the popularity of mobile video, Google’s YouTube subsidiary recently launched a news-aggregation site called NewsWire.

Facebook ventured into news delivery in a serious way a year ago when it introduced its well-regarded Paper app. In the spring, the social network upped its game with Instant Articles, a system for delivering entire stories, videos and visualizations at speeds up to 10 times faster than previously possible. Publishers from BuzzFeed to The New York Times are contributing their content to Instant Articles to get in front of the network’s 1.5 billion global users.

Facebook has been doing such a good job of steering consumers to news that it actually surpassed Google for the first time over the summer as the chief source of in-bound referrals to media sites.

Apple made news itself this month when it debuted a freshly minted News app, which promises to consolidate and personalize content drawn from far and wide. The app, which is installed by default in the latest version of the company’s mobile operating system, will go beyond acquiring and organizing content from the usual namebrand publishers. It also will carry the RSS feed of any independent content creator—so long as the creator is willing to permit Apple to use her content without payment and to indemnify the world’s most valuable company in the event someone files a libel or copyright complaint against something she wrote.

The big three are not alone in focusing on news delivery. Snapchat this year launched a feature called Discover, which contains news and infotainment blurbs provided by a dozen partners including ESPN and

Das bummer

V

olkswagen has been cheating on its US government emissions tests for years.

And it was a small, independent research institution, not the Environmental Protection Agency (EPA), that caught VW in the act.

Which of these facts you find more offensive depends in part on your view of which is worse: corporate malfeasance or government incompetence. There’s no right answer. In this case, however, the facts argue for a criminal investigation of Volkswagen—which the Justice Department has already begun.

The EPA lays out a breathtaking pattern of duplicity on VW’s part. When the EPA and the California Air Resources Board were alerted in May 2014 to the results of a study commissioned by the International Council on Clean Transportation, which showed the problems with VW’s vehicles, the company blamed technical issues and “unexpected in-use conditions.” In December 2014 it recalled 500,000 vehicles to address the problem. But follow-up testing by California and the EPA revealed not only that higher emissions persisted, but that the vehicles’ diagnostic systems weren’t picking them up.

Only when the two agencies threatened to withhold environmental certification from VW’s 2016 models did the company come clean:

Vice News. Twitter and Instagram reportedly are crafting better ways to aggregate and organize news too.

The news-delivery frenzy in Silicon Valley poses profound questions for the incumbent players in the media.

Legacy publishers and broadcasters are being forced to decide whether to contribute their expensively produced content to the master apps—or risk being marginalized as consumers forsake their carefully tended digital brands for the convenient and compelling aggregation platforms fielded by the tech giants.

The argument, in favor of sharing legacy content, is that media companies can expand their audiences at the same time they share in the fresh revenue generated by the superior reach and marketing power of their technology partners. As discussed above, several major media shops have already signed on to such arrangements. But industry sentiment has not been unanimous. William Lewis, chief executive of Dow Jones, recently asked if publishers should “run, headless chicken-like, toward offers from companies like Apple and Facebook to put our content in their walled gardens.”

Tech behemoths could well squeeze the life out of many of the independent news-aggregation sites that have emerged over the years. Those indie efforts range from Flipboard, the most prominent and innovative of the ilk, to the Circa news app, which succumbed over the summer for want of audience, ideas and cash. The increasing competition from Silicon Valley probably contributed to Circa’s demise.

Even legacy publishers may not be safe. The ongoing tech-tonic shifts emanating from Silicon Valley are likely to throw a wrench into the professed plans of traditional publishers and broadcasters to pivot to pixel-based delivery platforms such as smartphones, smart watches, smart cars and even smart refrigerators. If techies take control of the front page with increasingly intuitive interfaces, how much audience and business will be left for the traditional providers of the news?

Not everyone is nostalgic for the bygone publishing era, but here’s why this shift matters: One of three newsroom jobs has been eliminated at America’s newspapers as the collective revenues of the publishing industry dived more than 40 percent in the last 10 years. Even at today’s diminished staffing levels, newspapers put the most journalistic feet on the street in the typical community. If their readership and revenues continue contracting, newsrooms are bound to shrink too.

Algorithms may be great at finding and organizing stories, but what will Silicon Valley do if the news supply runs dry?

Beginning in 2009 it had installed software that would fully switch on a vehicle’s emissions controls only when it was being tested. Under normal driving conditions, VW’s diesels would spew 10 to 40 times the amount of nitrogen oxides they emitted during the tests.

A brief emissions primer: Nitrogen oxides react with other compounds to form small particles that, as the EPA helpfully notes, “penetrate deeply into sensitive parts of the lungs and can cause or worsen respiratory disease, such as emphysema and bronchitis, and can aggravate existing heart disease, leading to increased hospital admissions and premature death.”

Volkswagen has halted sales of the affected cars, both new and used. CEO Martin Winterkorn has said he’s “deeply sorry” and that the company will do “everything necessary in order to reverse the damage this has caused.” VW’s shares have cratered on the news. The EPA has the authority to impose civil penalties of up to $37,500 for each violation—or about $18 billion. The consumer class-action suits are just beginning.

And if the EPA’s allegations about VW’s fraud prove correct, those responsible will find themselves defending far more serious claims than VW’s shiny marketing campaign for its “TDI clean diesel” technology. Bloomberg View

The Rizal Monument: The spirit of the nation at its best

By Pablo S. Trillana III Philippine Historical Association

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he Rizal Monument in the 58-hectare Rizal Park holds a special meaning to Filipinos.

Essentially, the monument is a tribute to the martyrdom of a great man, who, though wrongly accused, accepted his fate as a glorious opportunity to offer his life for his sad, beloved country, though the privilege was not his alone. The blood of many men like him had been spilled on this killing field, once called Bagumbayan, of our colonial past—a clearing blind to justice, deaf to the sound of gunfire, its tongue forcibly cut to silence it from howling at the horrors of inequity.

There is the monument and there is the park. Although separate landmarks, they are one in being part of a patriotic landscape—a piece of earth, a spot on the planet that gives every Filipino a sense of place, ours and ours alone. In large measure, that sense of place is embedded in its history and in our soul.

How did that monument and the park where it stands come into existence and give rise to national communion? Rizal was executed at exactly 7:03 in the morning of December 30, 1896. Shortly after, his body was carted off from the Bagumbayan upon government orders.

The night before, the mayor of Manila, Manuel Luengo, had promised the family they could take the body after the execution. Staying home in silence until it was over, they now arrived to claim the body. It was gone.

And no one was willing or able to say where it had been taken.

The family frantically checked suburban graveyards for burials that day. There were none. Narcisa, Rizal’s sister, had better luck. Late that afternoon, she went to the walled and unused Paco Cemetery. From a distance, without being seen, she saw Luengo and several army officers inspecting a grave. She knew instantly it contained her brother’s remains.

After the authorities had left, Narcisa approached and saw the freshly dug and unmarked grave. Getting permission from the cemetery guard, she placed on the grave a small, simple slab of marble. On it was inscribed Rizal’s initials in reverse.

In that instant, the family had given their beloved Jose a decent and honorable burial. The rite acceded essentially to Rizal’s wishes.

Found later was an undated letter written by Rizal. It said: “Dear parents, brother, sisters: Give thanks to God who has kept me tranquil before my death.... Bury me in the earth, put a stone on top and a cross. My name, the date of my birth and that of my death. Nothing more. If later you wish to surround my grave with a fence, you can do it. No anniversary

celebrations. I prefer Paang Bundok.”

Paang Bundok meant the cemetery north of Manila, now known as the North Cemetery.

There were no indications, either before or after the execution, that the Rizal family received or read the letter containing Jose’s burial instructions.

Wrote Jerome Aning of the Philippine Daily Inquirer: “The Rizal family, as well as the entire country, for that matter, would not know until half a century later that Rizal had left specific instructions about his mortal remains.... The Philippine government was able to get hold of this letter and other Rizal documents after these were presented in 1953 by then-Spanish Foreign Minister Alberto MartinArtajo y Alvarez. (“Vatican City Can Fit In Rizal Park,” January 1, 2012).

But even if the family had known about Rizal’s instructions, a public burial in Paang Bundok would have been disallowed by Church and State. The revolution was spreading, Rizal remained a popular name behind the cause, possibly more dangerous in death, as pilgrimages to his grave might further inflame passions of dissent.

For close to two years, the remains of the martyr stayed in the relative seclusion of the Paco Cemetery. But on August 13, 1898, Spain lost the mock battle for Manila Bay and Commo.

George Dewey of the United States took command of the city.

The Rizal family lost no time. Four days later, Narcisa had the grave dug and found that her brother had been buried un-coffined. His clothes were still recognizable, but his shoes had already disintegrated. Whatever letter he said was inside them was lost forever. The remains of the hero were cleaned, placed on an ivory urn and kept by the family in Narcisa’s Binondo house.

Losing no time either, the US swiftly joined the big powers for “the trade of every country and the commerce of every sea.” It annexed the Philippines by paying $20 million to Spain through the December 10, 1898 Treaty of Paris. Having fought

the bitter Filipino-Spanish War, the Filipinos now fought the bitterer Filipino-American War. By 1899 US President William McKinley ordered the military occupation of the Philippines. By 1902 more than 70,000 American soldiers had been shipped for conquest. The “little insurrection” ballooned into a war with a $300 million greenback burden.

In March 23, 1901 Gen. Emilio Aguinaldo was captured in Palanan, Isabela. By mid-year, the ranks of Filipino generals thinned either by surrender or capture: Geronimo in Morong; Tinio in northern Luzon; Mascardo in Bataan and Zambales; Cailles in Laguna; Torres in Bulacan; Alejandrino in Pampanga; Belarmino in Albay; and Capistrano in Bukidnon.

By September 6, 1901 McKinley was assassinated and succeeded by Theodore Roosevelt. It was time to show the benevolent face of conquest.

The Americans turned to the memory of Rizal, not because they revered him, but because they needed to ingratiate themselves to Filipinos.

They needed public sympathy. By September 28, 1901 the US Philippine Commission enacted Act 243. Its purpose was to build a memorial in honor of Rizal at the Luneta. It created a commission to undertake and raise funds for the project through popular subscription. The estimated budget was P100,000.

Prominent Filipinos, including Paciano, Rizal’s elder brother, and Ariston Bautista Lin and Maximo Paterno, friends of Rizal, were enlisted as commission members. The insular government kick-started the drive by donating P30,000.

The people, tired and spent by war, showed how truly they loved Rizal.

Their feeble weapons could not match the firepower of the usurpers in battle. And so, in an “in your face” dissent, they rose to the occasion. They would raise the funds and honor the hero themselves. Paciano would later call his dog “Wood” in reference to the unpopular American governor general (1921-1927) who had earlier served as commander (1902-1906) during the Filipino-American War. Patriotism still rose even when its patriots were down.

By 1905 the people achieved their goal. The public subscription closed in August 1912 with P135,195.61 total funds. The Filipinos had indeed funded the memorial.

The international competition, conducted by the commission from 1905 to 1907, awarded the officially compliant design to the Motto Stella (Guiding Star) of the Swiss sculptor Richard Kisling. Crafted in Europe,

the bronze and granite monument was shipped in pieces and assembled in the Philippines.

The remains of Rizal were entombed in the base of the monument in December 30, 1912. The memorial itself was completed and inaugurated in December 30, 1913. By that time, Francisco Mercado and Teodora Alonso, parents of Rizal, were dead.

The memorial now stands and radiates as the iconic Rizal Monument in and from Rizal Park. It has been in existence for more than a hundred years with memories, antecedent and unfolding, as fragments of space and time.

A fragment of those memories goes back to the cold, grey skies of November 1970. Manila was ravaged

by Yoling, a 250-kilometer-per-hour typhoon. The late journalist Teodoro Valencia spoke of its aftermath: “All the trees in Rizal Park were down, the flowers were blown away and the shrubs in shambles. The only structures left standing were the monument of Rizal and the two Marine Guards.”

What kept the Marine Guards standing, through whipping rains, at the foot of the monument? Valencia spoke of their spirit and discipline.

That spirit seems to be the connecting thread that weaves the fragments of memories into an unbroken whole that makes up the story that is the Rizal Monument in Rizal Park.

It is a story of transcendence and inclusion—of subplots in the master narrative of wholeness, of trees in the forest. The killing fields of Bagumbayan, the deaths of patriots, including Rizal himself, the footfalls of revolutionaries during the great Filipino freedom wars, the building of the Motto Stella itself, the passage through the Commonwealth and the 1935 Constitution, the Japanese Occupation that Rizal himself predicted, the restoration of independence, the political experiments of the past seven decades, the inauguration of Philippine presidents, visits from foreign dignitaries, including three papal encounters, countless public observances, quiet moments with family and friends—all are embraced and find niches in the story.

The Rizal Monument in Rizal Park, symbol and phenomenon, endures because its stories add meaning to lives and enrich the nation. People come, singly or in multitudes, drawn by the sense of place seared in our race memory not only by Rizal’s incomparable death, but by his powerful legacy to the nation and our places in it.

Simple, dignified. The memorial to Rizal expresses the spirit of the nation at its singular best.

2nd Front Page BusinessMirror

A8 Wednesday, September 23, 2015

PSA reports 48.9% drop in H1 investment pledges

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By Cai U. Ordinario

pproved investment pledges of Filipino and foreign nationals contracted 48.9 percent in the first semester of 2015.

Data released by the Philippine Statistics Authority (PSA) showed total approved investments reached P186.44 billion in the January-toJune period, from P365.16 billion in the same period in 2014.

The country’s primary investment-promotion agencies (IPAs)— the Board of Investments (BOI) and the Philippine Economic Zone Authority (Peza)—both recorded lower investment pledges in the first six months of the year. Investments approved by the BOI, which accounted for 49.4 percent of the total, or 92.02 billion, dropped by 38.4 percent, from P149.45 billion in 2014.

Those approved by the Peza,

which accounted for 42.3 percent, or P78.88 billion, in the first semester posted a decline of 26.3 percent, from P106.98 billion in the same period last year. The largest decline was recorded in the investment pledges at the Authority of the Freeport Area of Bataan (Afab), which posted a 99.1-percent drop. Investments approved by Afab reached P764.6 million, or 0.4 percent of the total.

In the second quarter, approved investments of foreign and Filipino nationals reached P90 billion. It fell 65.1 percent, from last year’s P257.8 billion. Filipino nationals dominated the tally anew, with a share of 59.8 percent in the approved

investments for the period.

“Total projects of foreign and Filipino investors approved by the seven IPAs for the second quarter of 2015 are expected to generate 36,196 jobs, lower by 69.5 percent from last year’s projected employment of 118,835 in the same period,” the PSA said.

“Out of these anticipated jobs, 71.5 percent would come from projects with foreign interest,” it added.

The top 3 countries with approved investment commitments for the second quarter of 2015 are the Netherlands, Singapore and Japan.

The Netherlands pledged P17 billion, or 46.8 percent of the total, during the quarter, while Singapore and Japan committed P8.4 billion and P4 billion, or 23.2 percent and 11.1 percent of the total approved foreign investments, respectively.

In terms of location, the bulk of the approved foreign investments is intended for new projects in Region 4A—Cavite, Laguna, Batangas, Rizal and Quezon—amounting to P22.3 billion, or 61.5 percent.

The next highest investments are in Region 7—Central Visayas—at P3.9 billion, or 10.8 percent, followed by the National Capital Region, at P2.4 billion, or 6.6 percent.

Manufacturing remained to be the industry with the largest amount of committed foreign investments in the second quarter of 2015, at P21.8 billion, or 60.2 percent of the total.

Agriculture, forestry and fishing came in second, with investment pledges valued at P5.1 billion for a share of 14.2 percent, followed by construction at P2.6 billion.

Foreign investments approved and registered by the IPAs are termed “approved foreign investments,” replacing the term “approved foreign direct investments” used in the previous reports. This is to distinguish clearly the approved foreign investments, which are only commitments and pledges, from the foreign direct investments, which are actual investments being released in the balance of payments by the Bangko Sentral ng Pilipinas.

PHL lacks real-estate market transparency

By Catherine N. Pillas

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he Philippines needs to improve transparency in the real-estate market to draw in investments from sovereign wealth funds, according to Jones Lang LaSalle (JLL).

“Countries in the Asean [Association of Southeast Asian Nations] region, especially the Philippines, have moved from low transparency to semitransparency in 2014. Why is transparency important? In real estate, if we will go to holders of sovereign funds around the world, they are looking for markets with the highest degree of transparency. Most have been going to the Western part of the world,” Chris Fossick, managing director for Southeast Asia of JLL, said at the Asia CEO Forum. Sovereign funds, being state-owned

funds, are capitalized from states’ pension investments, among other sources, and, thus, tend to be directed toward more transparent markets.

The JLL tracks the transparency of commercial real-estate markets of 102 economies in its Global Transparency Index (GTI), released every two years.

According to the GTI 2014, the Philippines belongs to the “semitransparent” group, having notched a ranking of 38 among 102 markets.

“Transparency relates to risk, from our view. There are risks of the country, and the risks around the real-estate sector. Part of the risks have to do with the legal system, the pricing of the real-estate market and the availability of information…the higher the transparency, the lower the risk assess-

ment is from the investors,” Fossick said in a news conference. The GTI ranks real-estate markets on the transaction process and regulatory and legal processes, among other factors. The GTI 2014 states that realestate transparency not only hinders inward investment but also has deep impacts on the quality of life of its citizens and their relationship with local government.

Lindsay Orr, CEO of JLL, noted that the perceived corruption in the Philippines has affected the country’s transparency rating.

This is compounded by the concerns over the availability of market data.

On corruption, Orr noted the marked improvement of the Philippines over the years. Sovereign wealth funds are currently being direc ted to more transparent nations, such as Australia,

Japan and most Western nations.

Despite this setback, the global consultancy firm still sees a robust growth in the real-estate market in the coming years, credited to the predicted population boom in the Asean region “One of the opportunities we see in the Asean region is the population growth.

The growth is expected to rise from 624 million now to 665 million in the next five years,” Fossick said in his speech at the Asia CEO Forum.

The 40 million increase in the region’s populaiton is expected to accelerate urbanization and increase household formation in the country. Moreover, this will be accompanied by a widening of the middleincome population, estimated at 19 million in Asean, to 30 million. Catherine N. Pillas

www.businessmirror.com.ph

ADB cuts 2015 PHL growth forecast to 6% . . .

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major industrial economies will slowdown growth in developing Asia for 2015 and 2016.

China’s growth is expected to slow to 6.8 percent in 2015, from the 7.2 percent projected earlier, and below the 7.3 percent posted in 2014.

Southeast Asia, which includes the Philippines, will be severely affected by the slowdown in China’s growth. The region is expected to post a growth of 4.4 percent in 2015 and 4.9 percent in 2016.

Bright spots

Nonetheless, the ADB said the pickup in government spending that began in the second quarter of 2015 is expected to buoy the Philippine economy.

“After a slow start to the year, we are now seeing a pickup in fiscal spending, which, combined with spending linked to the May 2016 elections, will help lift the domestic economy,” ADB Country Director for the Philippines Richard Bolt said.

“Recently enacted reforms to improve competitiveness and to attract investment will play a key role in future growth, as will continued reforms and investments in infrastructure and other public goods,” Bolt added.

The ADB also cited the better budget execution and progress in the pipeline of public-private partnership projects. Election spending ahead of May 2016 and an expanded government budget next year will also underpin growth.

P r iv ate i nvest ment a nd household consumption are also expected to grow on the back of better employment and remittance inflow. The ADB added services will be the economy’s main growth driver due to robust businessprocess outsourcing, tourism and retailing industries. Further, exports are likely to improve in 2016 in line with better-performing industrial economies.

Regional growth

The ADB also cut its growth forecast for the region’s developing

economies, citing a softer outlook for China and India, and a delayed recovery in the world’s advanced industrialized nations.

The Manila-based lender said in a report on Tuesday that it now predicts the region’s economies will expand 5.8 percent this year and 6 percent next year. That’s dow n from the 6.3-percent growth that it forecast in March for both years.

The report, which covers 45 economies, cut forecasts for some of the region’s biggest countries, including China, India, South Korea and Indonesia.

“Developing Asia is expected to continue to be the largest contributing region to global growth despite the moderation, but there are a number of headwinds in play, such as currency pressures, and worries about capital outflows,” ADB chief economist Shang-jin Wei said.

The Chinese economy, which grew a revised 7.3 percent last year, is now tipped to slow to 6.8percent growth in 2015 and 6.7 percent in 2016. That’s down from 7.2 percent and 7.0 percent forecast previously.

“Despite robust consumption demand, economic activity fell short of expectations in the first eight months of the year, as investments and exports underperformed” in China, the report said. The ADB said it expects the pressure to ease once the recovery in the world’s advanced economies picks up, strengthening global demand.

Much of the slowdown in China, the world’s second-biggest economy, is self-imposed as part of the ruling Communist Party’s effort to replace a wornout model based on trade and investment with more self-sustaining growth driven by domestic consumption.

India is forecast to grow 7.4 percent in 2015 and 7.8 percent in 2016. The bank trimmed both forecasts by 0.4 percentage points, citing slower progress on major reforms, which has hindered investment and sagging exports.

With AP