Businessmirror april 10, 2015

BusinessMirror

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

www.businessmirror.com.ph

Life

Thy word is true

THE BIBLE PROMISE AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

THE film adaptation of Nicholas Sparks’s best-selling ‘The Longest Ride’ becomes the vehicle for Scott Eastwood to step out of the shadow of his iconic father—and, yes, that would be Clint

PINOY BREAKFAST FAVORITES GET AN UPGRADE »D3

BusinessMirror

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

Friday, April 10, 2015

I

What attracted you to Luke and to the film?

I really dug that he is a bull rider. I have always thought the sport was pretty badass. I have respect for those guys, the bull riders. And I like Luke. He is a no bullshit kind of guy, a man of few words. He’s a hardworking, loyal, honest guy. That is the way my father raised me, to tell the truth and show up on time.

Also I had seen The Notebook (based on the Nicholas Sparks book of the same name) and I liked it a lot.

In your view, what are the interesting themes of The Longest Ride?

I think the biggest theme in the movie is sacrifice.

In life, we, as human beings, tend to be selfish. But that doesn’t work in relationships. When you find someone special in your life, you don’t want to screw it up and the only way not to do that is to sacrifice for the person you love, and try not to be selfish. We all have to make choices and the question is: How do you split the deck with somebody? Love can be romanticized in films and become like a fairy tale, but this film doesn’t do that.

The reality is that, in real life, love takes a lot of work, which we see in this movie. That resonated with me.

Can you talk about the relationship between Luke and Sophia?

They are total opposites, but opposites attract and they fall madly in love with each other even though they’re from different walks of life. I think that is realistic. You always fall in love when you’re not really expecting to. Sophia wants to be in the art world in New York and has dreams of being a curator in a gallery. Luke has a different set of dreams. So how do you make that work when you’re going two different ways? Where’s the compromise? That what the film looks at.

Both couples seem destined for each other. Do you believe in soul mates?

One hundred percent! What a sad world it would be not to believe in soul mates.

C  D

life

D1

duple grandeur Motoring BusinessMirror

Henry Ford Awards Best Motoring Section 2007, 2008, 2009, 2010 2011 Hall of Fame

Editor: Tet Andolong

Friday, April 10, 2015 E1

THe all-new 2015 Sorento and Grand Carnival

ColumbiAn Autocar Corp. President Ginia R. Domingo Story & photos by Randy Peregrino

D

OUBLE the introduction and you’ll get twice the pleasure of witnessing a duo derived from the passion to go beyond boundaries. Columbian Autocar Corp. (CAC), distributor of Kia automobiles in the Philippines, recently unveiled the allnew 2015 Grand Carnival and the allnew 2015 Sorento.

The grandness

ENTIRELY restyled, the all-new Grand Carnival projects an elegance that stems from its European-inspired design. Up front, the black with chrome bar radiator grille dominates with the projector-type headlamps. The rear tailgate is fully automated—essential when one’s hands are full. Also, power sliding doors in the second row can be operated with a touch of a switch.

Elegant wood accents with chrome intensify the detail of the elegant cockpit with controls and switches within easy grasp, 3.5" OLED-type multiinformation display and informative gauge panel with vivid display. The two-toned gray leather seats are appealing and comfortable at the same time.

The long wheelbase (3,060 millimeter) produces an expansive and luxurious cabin with outstanding leg room for a seven-seater. Folding

(AWD) system enhances the Grand Carnival’s surefootedness in extreme driving conditions.

Drivers can capitalize on the drive mode select system and steering assistance systems for normal or spirited driving. To promote fuel efficiency, an Eco mode is available that adjusts shifting points in advance.

The all-new Sorento comes in eight colors: Silky Silver, Imperial Bronze, Aurora Black, Metal Stream, Snow White Pearl, Sunset Red, Platinum Graphite and Clear White.

C

ARMUDI, the country’s No. 1dedicated online-vehicle platform, graces the 11th Manila International Auto Show (MIAS), which runs from April 9 to 12 which will be held at the World Trade Center in Pasay City. This is the second time that the online car portal is participating in the event that is dubbed as the “largest gathering of car enthusiasts in the country.”

“This year’s MIAS serves as a barometer on how well Filipinos have received the web site in terms

Continued on A2

sive 442 N-m of torque between 1,750 rpm and 2,750 rpm.

Targeted directions

Less size, more power

Similar to the Grand Carnival is the horizontal layout of the instrument panel but with different materials and trim accents. The wraparound dashboard is proof of the premium interior motif. Seats are draped with soft-touch genuine leather radiating an elegant,

yet, sporty expression with enough lateral support. This seven-seater SUV’s luggage capacity has been increased by 17.5 percent. The vehicle’s frame structure has been fortified and fitted with noise, vibration and harshness (NVH) insulation. In addition, the DYNAMAX all-wheel drive

BOTH the all-new Grand Carnival and Sorento employ the 2.2-liter in-line four-cylinder, 16-valve, turbocharged diesel engines with common rail direct injection (CRDi) coupled to a six-speed automatic transmission. Although it has a relatively smaller displacement, the engine cranks out a staggering 197 hp at 3,800 rpm and an impres-

THIS writer had the privilege to speak with CAC President Ginia R. Domingo, who shared her thoughts on sales targets and other plans.

“Well, as for the Grand Carnival, we’re looking at selling anywhere from 20 to 30 units in a month, so it’s not a big volume mover. As for the Sorento, we are looking at anywhere from 50 to 100 a month—a little more aggressive but probably not until we have the full lineup. We will have four variants of the Sorento and that should happen anytime between the second and third quarters of this year. As for the Grand Carnival, we’re looking at introducing a top variant 3.3-liter petrol-powered engine and the more utilitarian 11-seater with fabric seats as the base model,” Domingo said. Prices of both models have yet to be announced.

of helping them buy or sell their cars,” said Subir Lohani, managing director of Carmudi Philippines.

“This is an opportunity to measure our brand’s engagement and to reach out to more customers. Those who are curious can also get to see the people behind our web site and ask them questions on how to use our site and app to their fullest,” Lohani said.

The Carmudi exec further explained that in today’s growing ecommerce industry, engaging customers through industry-related

events is necessary to retain customers and get their feedback. “You need to go out there and interact with users as much as possible, even if your services or products are online,” he added.

The online site offers buyers, sellers and car dealers the ideal platform to find cars, motorcycles and commercial vehicles in the fastest possible way. The company was founded in January 2013, and in just under a year and a half, has rapidly spread to 20 countries across Asia, Africa, Middle East and Latin America.

In the Philippines the platform officially started in January 2014.

When it joined the 10th MIAS, fewer people knew about the startup company. Today Carmudi is considered the most-used vehicle marketplace for Filipinos with close to 25,000 cars, motorcycles and commercial vehicle listings; brand new or used.

“Our guiding principles are ease, trust and dedication. Nowhere else can you upload a car for sale in less than two minutes. We focus on making every part of the car buying and

selling experience as hassle free as possible,” Lohani shared.

“Trust is key at Carmudi. We work with a committed team of local experts that ensure regular quality checks on the cars on our platform and update our inventory regularly to avoid fraudulent listings,” Lohani stated.

Those who are interested to see Carmudi in MIAS can visit their booth at the East Wing B of the World Trade Center. Visitors will be treated to car-usable freebies and exciting giveaways. Kris C. Lim

The next level

FOR a midsized sport-utility vehicle (SUV), the all-new Sorento exudes a refinement thanks to Kia’s Namyang design studio in South Korea and significant inputs from the brand’s Frankfurt, Germany, and Irvine, California, design studios. The distinctive fascia formed by the dark metallic tiger-nose radiator grille and wrap-around projector headlamps conveys a solid configuration.

2.2-liter CRDi turbocharged diesel engine with less displacement but more power

MOTORING

E1

tiger watch and all Sports

C1

BusinessMirror

| Friday, april 10, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

G

Golf legend Nicklaus makes hole-in-one at Masters’ par-3 event

A

UGUSTA, Georgia—Jack Nicklaus thrilled the crowd on Wednesday at the annual Masters par-3 contest, making a hole-in-one on the fourth hole.

The six-time Masters champion, playing in the exhibition at age 75, spun an iron shot back into the hole for the ace. His ball bounced twice, then took a third hop before retreating into the hole. Nicklaus was congratulated by playing partners Ben Crenshaw and Gary Player.

Nicklaus acknowledged the ovation from the crowd, raising his arms in the air with a double fist-pump.

He says he may have called his own shot.

“It’s funny, I had an interview this morning and I said, ‘Well, all I’ve got to do is go out and win the par-3 and make a hole-in-one,’ and I make a hole-in-one,” Nicklaus said.

The 63-year-old Crenshaw seemed as excited as Nicklaus about the shot. Crenshaw will tee off for his 44th and final Masters on Thursday.

Nicklaus said he likes playing the par-3 because it’s not long.

“I actually hit two more shots that hit right around the edge of the hole, had a chance to go in,” he said. “I didn’t finish up very well, but we had a lot of fun.” AP

TIGER WATCH AND ALL

By Doug Ferguson The Associated Press

UGUSTA, Georgia—Tiger Woods was the exception. Ben Crenshaw was closer to the rule.

Woods joined up with Crenshaw to play the back nine on Wednesday on the final day of practice for a Masters that is shaping up as a mystery in many ways. They are Masters champions with multiple green jackets. What separates them is how soon they got them.

Crenshaw had to suffer a little before he could celebrate his first major. He was a runner-up four times in the majors, including a playoff loss to David Graham at the Professional Golfers’ Association (PGA) Championship, before he broke through in 1984 at Augusta National. He won another one in 1995.

Woods wasted no time. He won the first major he played as a pro by setting 20 records in his 1997 Masters victory, and that was only the start. He already had eight majors before he recorded his first runner-up finish. He had four green jackets before he turned 30.

More players have taken the Crenshaw route.

Tom Watson. Nick Price. Phil Mickelson. Adam Scott.

The group even includes Jack Nicklaus, who was a 20-year-old amateur when he finished second behind Arnold Palmer in the 1960 US Open. Nicklaus played that day with Ben Hogan, who also had a chance to win until he hit into the water on the 17th hole at Cherry Hills.

Hogan said after the round, “Don’t feel sorry for me. I played with a kid today who could have won this Open by 10 shots if he had known now.”

Nicklaus figured it out.

Also on that list is Rory McIlroy, who returns to the scene of his greatest lesson in a major.

He was a 21-year-old with a four-shot lead at the Masters in 2011, ready to be crowned the next big thing in golf, when he shot 80 in the final round.

He handled the collapse with remarkable poise, said he would learn from his mistakes. And then he posted scoring records at Congressional two months later in the US Open.

“A lot of that win has to do with what happened at Augusta,” McIlroy said.

The Masters is even more meaningful now.

It’s the only major keeping him from the career Grand Slam, and McIlroy will be the clear favorite when the Masters begins on Thursday.

“Everything I’ve done, all the work I’ve done gearing up for this week has been good,” McIlroy said. “I’m just ready for the gun to go off on Thursday.”

The expectations are higher than ever for McIlroy, and lower than ever for Woods, who is competing for the first time since February 5. That’s when he walked off the course at Torrey Pines to work on a game that had become so bad that hardly anyone recognized it.

Woods has shown much improvement in three days of practice, including the nine holes he played with Crenshaw and Jordan Spieth.

McIlroy and Woods, even at different ends of the spectrum, have dominated the talk so much this week that a large group of contenders have largely been ignored.

Bubba Watson is the defending champion and going for his third green jacket in four years. Adam Scott is back to the long putter he used to win in 2013. Spieth and Jimmy Walker might be the hottest players on the

PGA Tour—Walker is the only player with two wins this season, Spieth has won, finished second and lost in a playoff his last three starts.

The question for Spieth is whether he already paid his major dues.

A year ago, he was on the verge at age 20 of becoming the youngest Masters champion when he had a two-shot lead with 11 holes to play. Two bogeys put behind going into the back nine, and he never caught up to Watson.

“How much value do I take out of losing? A lot,” Spieth said. “But I’m not one of those people who believe it was better for me not to win. I don’t think I would have handled it the wrong way. I don’t think Rory would have if he had won. He was saying he didn’t feel ready to close that out and found out what he was doing wrong.

“I take a lot out of what happened, but I don’t necessarily think it was better for me.”

Padraig Harrington is another major champion who lost before he could win.

“The best preparation for winning is contending,” Harrington said.

The Irishman made bogey on the final hole at the 2002 British Open that cost him a spot in the playoff at Muirfield. He finished with three straight bogeys at Winged Foot in 2006 and finished two shots behind in the US Open. A year later, he won the first of his three majors, going back-to-back at the end of 2008.

“You do need to be in that situation a couple of times to be comfortable,” Harrington said. “That’s not true for everyone. But for most players, you have to lose a few before you can win a few.”

Maybe that explains why no Masters rookie has won a green jacket since Fuzzy Zoeller in 1979. Or why the Masters has the fewest number of first-time champions compared with the other three majors over the last 20 years.

McIlroy paid a steep price four years ago and found redemption in other majors right away. Still missing, however, is the green jacket.

VOnn sits with Tiger Woods »andLinDSEY his children, Sam and Charlie, during the par-3 contest on Wednesday. AP

ShuTTERbugS OuT in fORCE AT MASTERS A UGUSTA, Georgia—There are so many cameras at the Masters this week that practice rounds are beginning to resemble kids’ birthday parties back in the day.

Barred from bringing their cell phones on the course, fans adapted by going back to the future, dusting off pocket-sized digital cameras or their old 35mm bodies and lenses and relearning how to use them.

But a quick refresher course is all they’re allowed. When play begins on Thursday, fans will have to put them back on the shelves.

“Actually, the last time I had this out was Easter,” Wayne Watson said about the large black Nikon hanging around his neck.

And the time before that?

“No idea,” he said. “Probably the Easter before.”

More than a few of the fans lugging around similar equipment were, like Watson—who made the two-hour drive from Macon—experiencing Augusta National in person for the first time.

Most just planned to mosey around until something caught their fancy. Some had general targets in mind—a favorite player or two, the trio of back-nine holes reverentially dubbed “Amen Corner,” or the gigantic manual scoreboard alongside the first fairway.

Then there was the occasional experienced big-game hunter, decked out with camera bags and an array of lenses.

“I’m after Phil Mickelson,” said Kim McNeeley of nearby Aiken, South Carolina.

“I got a great shot of him the last time I was here—18 years ago.

“But there are plenty of guys more serious than I am,” she added. “I had to borrow this from a friend who just had a baby. A few minutes ago, I saw a guy actually loading film into his camera. Film. Now that’s old school.”

Stepping back in time produced more than a few comical moments.

Parked in lawn chairs behind the first tee, two pals leaned in close as one tried to figure out how to take a “selfie” with a point-and-shoot camera—never mind that the term hadn’t even been coined when the camera was originally manufactured. Behind the seventh tee, Kevin Davis of Gibson City, Illinois, recounted the preparations he went through to make sure his four-year-old digital camera was ready to roll.

First, he had to find it—”It took me awhile to remember where I left it,” he said, finally remembering it was in a desk drawer—and then make sure it was charged.

“I’ve got a big camera, but I didn’t want to lug that around,” Davis added. “That’s usually

SPECTATORS take photos of Phil Mickelson during a practice round, while Miguel Angel Jimenez takes a selfie. AP

for family events.”

But he might have had second thoughts when his twin 5-year-olds saw the camera and realized it wasn’t a phone.

“They were scratching their heads,” he recalled. “They said, ‘Daddy, why is it so big?’”

The fact that so many wound up

opting for the big camera likely had to do with the number of serious hobbyists. While many planned to share their photos with friends on social media, a few planned to commemorate the trip with a photo album—talk about old-school—and in the case of

Wes Rackley, make quality 8x10 framed prints and give them as presents.

Few people, though, seemed as comfortable carrying around all the serious gear as Brett Pavel of Atlanta. He was at Augusta National for the 20th time—”I think that’s right,” he said, “because I’ve got at least

18 shirts—and said he has a camera around his neck at least once a week.

“My wife calls it my ‘pacifier,’” he laughed, “because our youngest son plays competitive soccer and she says taking pictures is the only thing that keeps me from cussing and yelling at the refs and everybody else.” AP

sports

GERI’s income surged in 2014 on higher residential sales

By VG Cabuag

Six-TiME Masters champion Jack nicklaus, playing in the exhibition at age 75, thrills the crowd by making a hole-in-one on the fourth hole of the event Kevin Streelman won by beating Camilo Villegas on the third hole of a sudden-death playoff. AP

A

This was learned from Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo, who said there is an ongoing determination as to whether or not the forecast BOP surplus of some $1 billion this year should instead be recast higher, given that the BOP in February proved higher than the full-year goal at $1.12 billion.

“While the BOP for the first two months of 2015 looks promising because of good current-account and capitaland financial-account positions, we have to be very cautious of possible global growth risks and those that could trigger financial-market volatilities,” Guinigundo said.

The ongoing determination of where the balance ultimately lies is important in that the BOP tells whether or not the $272-billion economy has enough foreigncurrency savings and similar financial transactions to

THe Sorento’s commanding cockpit

the third row seats instantly creates a spacious cargo bay. In fact, media men in groups were invited to play a game that demonstrated the voluminous interior by stuffing bulky-sized ice chests into the rear of the vehicle.

The all-new Grand Carnival is offered in six colors: Clear White, Snow White Pearl, Bright Silver, Platinum Graphite, Aurora Black and Titanium Brown.

P25.00 nationwide | 8 sections 36 pages | 7 days a week

he monetary authorities vowed on Thursday to remain data-driven, as they seek to establish whether or not the country’s balance of payments (BOP) should remain in surplus this year as expected.

D1

B E L

T is a hot, humid summer’s day in rural North Carolina and the sun is beating down on the cornfields. Together with his crew, George Tillman Jr., whose directorial credits include Soul Food and Notorious, is filming in a small farmhouse surrounded by acres of farmland and flanked by dense woods. It is a key scene in the film adaptation of The Longest Ride, Nicholas Sparks’s bestselling novel that tells of two love stories ingeniously intertwined. The scene takes place on the family ranch in which Luke (Scott Eastwood) is introducing his new girlfriend, Sophia (Britt Robertson), to his mother (Lolita Davidovich).

Clearly in love: the pair sizzles with chemistry sizzles, but the odds appear to be stacked against them.

She is academic, he didn’t go to college. Luke is working hard, flirting with danger as a bull rider; he is one of the best and most courageous in the country. Also, he needs the money from winnings to save the ranch for his mother, who is a widow. Sophia wants to work in a New York art gallery.

One fateful day, they are driving along a country road in treacherous weather and notice a car in flames on an isolated embankment. Trapped inside the car is Ira (Alan Alda). The young couple rescues him and takes him to the nearby hospital. Sophia accompanies Ira to the hospital, bringing a box of letters that she had found in the wrecked car. They were written by Ira to Ruth, the love of his life, during the course of their long marriage.

As Ira recuperates, Sophia reads the letters aloud to him and learns about Ira and Ruth’s story: how Ira went off to fight in World War II, how he returned a changed man. She learns that Ruth, who died several years ago, was an art lover and the couple collected paintings over half a century.

With excellent acting and thrilling action, The Longest Ride explores the challenges and the magic of new and enduring relationships.

With film credits that include Invictus, Gran Torino, Flags of Our Fathers, An American Crime, Trouble with the Curve and Fury, Scott Eastwood brings Luke to life on screen with what George Tillman Jr. describes as “charisma and charm. The camera loves him,” the director says. “You believe he could be one of these blue-collar bull riders, who’s on the road 24/7 to make money. And he’s a fresh face. All those qualities really make him stand out.”

A fascinating aspect of the film is that it is multigenerational, spanning decades with the interweaving stories. What’s also interesting is that, coincidentally, four of the leading cast members are second-, third- and even fourth-generation actors and filmmakers, born into revered Hollywood families. Scott Eastwood is Clint Eastwood’s son. Oona Chaplin is Charlie Chaplin’s granddaughter, Jack Huston’s grandfather was John Huston, and Alan Alda’s father was the actor Robert Alda.

In Vanity Fair’s March 2013 Oscar edition, Eastwood was singled out as one of Hollywood’s “rising stars.”

THE SON ALSO RISES

TfridayNovember 18,2015 2014Vol.Vol.1010No.No.18340 n Friday, April 10,

BSP ‘highly wary’of global risks T

THE SON ALSO RISES EAR Lord, as we reflect on “thy word is true from the beginning and everyone of thy righteous judgments endureth forever,” (Psalms 119:160), we become so confident that our daily readings from the Bible, strengthen us in many ways: our belief becomes solid, our trust in You is encompassing and our inspiration grow and binding.

Rebuild into each one the faith that speaks of Your presence in our dealings with people around us. Amen.

n

Monetary officials cautiously optimistic as they review b.o.p. position

INSIDE

D

A broader look at today’s business

c1

lobal-Estate Resorts Inc., (Geri) a unit of businessman Andrew Tan’s Megaworld Corp., said its income more than doubled in 2014 partly as a result of nonrecurring gain, while sales on residential projects surged.

The company said its profit grew to P857 million last year, from P341 million in the previous year. The figure, however, include a P377-million nonrecurring gain.

Without nonrecurring gain, its net income was at P480 million, just a 41-percent increase year on year but double compared with the 2012 figure, when its net income was P264 million, the company said.

“Geri has again set the bar by achieving another banner year. This year will be another exciting year for Geri and we expect continuing growth in the company’s revenues as we launch

PESO exchange rates n US 44.4840

Continued on A8

President Aquino (third from left) leads the 73rd commemoration of the Araw ng Kagitingan (Day of Valor) at the Dambana ng Kagitingan, Mount Samat Shrine in Pilar, Bataan, on Thursday. This year’s theme is “Ipunla ang Kagitingan sa Kabataan, Ihanda ang Beterano ng Kinabukasan.” Also in photo are (from left) Foreign Secretary Albert F. del Rosario, US Ambassador to the Philippines Philip Goldberg and Japanese Ambassador to the Philippines Kazuhide Ishikawa. Malacañang Photo

Goldberg: US businesses perk up interest in PHL

Q

By Butch Fernandez

uite a number of American businesses, buoyed by the Philippines’s steady growth and market performance, are “very much interested” in investing in the Philippines, and are keenly eyeing the rollout of infrastructure projects under the Public-Private Partnership (PPP) Program, United States Ambassador to the Philippine Philip Goldberg said on Wednesday.

In an ambush interview with reporters

at Mount Samat in Bataan, where he joined President Aquino and Japanese Ambassador Kazuhide Ishikawa at the Araw ng Kagitingan rites, Goldberg said, “Everybody is very excited” about what’s going on in the Philippines, whose stock market posted a new record this week, its gross domestic product growth forecast upgraded by some experts, and prequalification conferences for some PPP projects now ongoing.

“I was in New York last Monday, and I met with a group of American businesses.

They’re all interested in the Philippines.

The 6-percent to 7-percent growth rate, the dynamism of what’s going on here, the macroeconomic management, creditworthy bond issuances and the budget and the way it’s handled…people are very much impressed and also at the business dynamism. So people are very interested,” he added.

A sked if he attr ibuted a ll these to the economic reforms pursued by the Aquino administration, Goldberg said the excitement was partly fueled See “Goldberg,” A8

n japan 0.3697 n UK 65.8986 n HK 5.7390 n CHINA 7.1768 n singapore 32.6992 n australia 33.9988 n EU 48.0828 n SAUDI arabia 11.8596 Source: BSP (8 April 2015)

News

BusinessMirror

Friday, April 10, 2015

A2

BSP ‘highly wary’of global risks

pay for such imported necessities as oil, for instance.

Where the BOP would be down the line is also important in that it tells whether the second-fastest economy in Asia is producing enough to underwrite an ambitious growth program as high as 7 percent this year in terms of the gross domestic product (GDP).

At first blush, the BSP is not keen on revising the assumed BoP surplus even though the actual BOP already breached the target surplu as early as February this year.

This is as the central bank keeps a keen eye on so-called volatilities in the global stage that could impact on market sentiment and send the balance way off the target area.

Guinigundo said the BSP is reviewing their BOP data and that the new assumptions—should revisions be made—will likely be announced in May.

Baguio RTC. . .

The BOP is a summary of the country’s transactions with the rest of the world. A surplus essentially means the foreign-currency earnings of the country are enough to cover its foreign-currency expenditures.

The country’s BOP stood as a surplus of $1.121 billion in February, or already past the assumend surplus of $1 billion.

However, the BSP remains wary of potential volatility down the line such as the weakness in countries comprising the European Union, Japan and even China, where the Philippines has substantial trade relations.

Last year the Philippines posted a multibillion-dollar deficit in the BOP due in large part to the US Federal Reserve and its anticipated interest-rate adjustments whose timing is one of the closely watched development not just by market players but by the monetary authorities around the world.

An interest-rate hike in the US could

Continued from A1

send rate-sensitive money managers tumbling out of emerging markets like the Philippines, where portfolio money flows help underwrite domestic expansion.

Guinigundo also said the BSP kept its inflation target low until 2017.

“Yes, the Development Budget Coordination Committee decided to keep the growth targets. In the case of the BSP, yes, we are also keeping our inflation targets of 2 [percent] to 4 percent from 2015 through 2017,” he said. The BSP adopted a lower inflation goal just this year from an earlier 3-percent to 5-percent target.

This was consistent with the central bank’s easing inflationary objective in light of sustained high economic growth.

Just this week the Philippine Statistics Authority reported that inflation in March hit 2.4 percent, bringing the three-month average to 2.4 percent, or significantly lower than the 4.1 percent average in 2014.

Continued from A8

The RTC also lifted the writ of preliminary injunction it issued on August 23, 2012, stopping the BCDA from forcible takeover of Camp John Hay. It also ordered that “an entry of judgment be made,” and the issuance of a writ of execution to implement the final award.

Alfredo Yniguez, CJHDevco’s COO, hailed the RTC in Baguio City’s decision, adding that significant to the decision of the RTC in Baguio is that the vested right holders—the existing locators, sublessees, unit owners, lot owners and golf-club members who acquired their interests in good faith—will be governed by the law on obligations and contracts.

“This statement of Judge Archog confirms our legal position that the arbitral award did not carry with it the order for our locators, sublessees, units owners, lot owners and golfclub members to vacate as well, but that their vested rights are to be protected by law,” Yniguez said in a statement.

With this ruling by the RTC in Baguio recognizing that there are vested right holders in the Camp, he said the BCDA cannot just evict the vested right holders nor order them to vacate without their due process afforded to them by the laws on obligations and contract.

On March 6 CJHDevco filed a petition be-

fore the RTC in Baguio seeking for confirmation against the BCDA of the P1.42-billion award to CJHDevco by the PDRCI. In a petition for confirmation of final award

by PDRCI, CJHDevco asked the court to confirm the final award, enter judgment in accordance with the award, issue the writ of execution for the P1.42-billion money award and appoint a commissioner to oversee the turnover of the leased property to the BCDA after it pays award to the developer of the former American recreational facility.

CJHDevco also submitted to the court a list of third parties with vested rights in the leased property.

3-DAY EXTENDED FORECAST APRIL 10, 2015 | FRIDAY

TODAY’S WEATHER

EASTERLIES AFFECTING THE EASTERN SECTION OF LUZON AND VISAYAS (AS OF APRIL 9, 5:00 PM)

Easterlies are winds coming from the East passing over the Pacific Ocean. These are warm and moist in nature; causing hot weather and generating thunderstorms.

SBMA/CLARK 24 – 32°C METRO MANILA 24 – 33°C

TAGAYTAY CITY 21 – 30°C

A

THENS, Greece—Greece’s government has given the order to repay a roughly €450 million ($485-million) loan installment to the International Monetary Fund (IMF) due on Thursday—a debt Athens had insisted it will honor despite being severely cash-strapped.

APR 11 SATURDAY

APR 12 SUNDAY

25 – 33°C

TUGUEGARAO

23 – 32°C

24 – 33°C

24 – 33°C

24 – 34°C

APR 13 MONDAY

25 – 33°C

25 – 33°C

24 – 34°C

TACLOBAN

24 – 31°C

24 – 32°C

24 – 33°C

24 – 34°C

CAGAYAN DE ORO

23 – 33°C

24 – 33°C

24 – 33°C

25 – 35°C

25 – 35°C

25 – 35°C

24 – 34°C

25 – 34°C

25 – 35°C

15 – 23°C

16 – 23°C

16 – 24°C

SBMA/ CLARK

24 – 33°C

25 – 33°C

25 – 34°C

ZAMBOANGA

22 – 31°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

LEGAZPI

PUERTO PRINCESA CITY 25 – 32°C

METRO CEBU 25 – 32°C

CAGAYAN DE ORO CITY 23 – 32°C

ZAMBOANGA CITY 24 – 33°C

25 – 31°C

25 – 32°C

SUNRISE

SUNSET

MOONSET

MOONRISE

5:46 AM

6:09 PM

9:59 AM

11:08 PM

22 – 31°C

25 – 32°C

FULL MOON HALF MOON

APR 4

PUERTO PRINCESA

25 – 33°C

25 – 33°C

24 – 33°C

ILOILO/ BACOLOD

24 – 32 °C

25 – 32°C

25 – 33°C

8:06 PM

APR 12

11:44 AM

CELEBES SEA

9:27 PM

-0.07 METER

Partly cloudy to at times cloudy with rainshowers and/or thunderstorms Partly cloudy skies

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

SABAH

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

METRO DAVAO 25 – 34°C

APR 13 MONDAY

25 – 32°C

BAGUIO

22 – 30°C

APR 12 SUNDAY

25 – 33°C

METRO DAVAO

TAGAYTAY

TACLOBAN CITY 24 – 30°C

APR 11 3-DAY SATURDAY EXTENDED FORECAST

METRO CEBU

LEGAZPI CITY 25 – 30°C

ILOILO/ BACOLOD 24 – 31°C

month extension to the main, European part of its bailout in February.

Under the extension agreement, Athens must present a series of fiscal measures to reform its economy that meet the approval of its creditors at the European Commission, European Central Bank and IMF. Authorities are hoping for a final agreement later this month, when finance ministers from euro-zone countries meet on April 24 in Latvia.

Meanwhile, in Moscow, Russian President Vladimir Putin offered on Wednesday to increase cooperation with Greece on energy and industry—but stopped short of extending direct financial aid that might complicate Greece’s talks with its European creditors.

After a meeting with Greek Prime Minister Alexis Tsipras, Putin dismissed allegations that Moscow is trying to woo Greece in order to split the European Union (EU) and weaken its resolve to punish Russia over its actions in Ukraine.

Ahead of the leaders’ meeting, there was also speculation that Tsipras might seek aid from Russia to gain a bargaining chip with its European creditors. Greece will run out of funds within weeks without more financial aid, and some observers alleged that Tsipras was trying to blackmail the EU by holding out a prospect of a deal with Russia. AP

The debt stems from Greece’s international bailout, under which the country was extended €240 billion in rescue loans from other euro-zone countries and the IMF to prevent bankruptcy.

Related story in B3-1.

“The order [for the repayment] has been given,” and the payment was being processed and carried out, a Finance Ministry official said on condition of anonymity, in line with ministry regulations.

Doubts about whether or not Athens could repay the loan had renewed fears the country might default and have to leave the euro zone.

Greece’s new left wing-led government has been locked in strained negotiations with creditors since winning elections in January on pledges to abolish the deeply resented budget austerity measures required by the rescue program.

The country has not received any funds from its rescue loans since last August, and is running short of cash. It hopes to persuade creditors to unfreeze the final €7.2-billion bailout installment, and is locked in negotiations over reforms it is proposing in return for the funds.

Greece is unable to tap the international bond market for funds due to sky-high borrowing rates that reflect a lack of confidence in the country being able to repay its debts. It has been surviving on its rescue loans since mid-2010, and the new government won a four-

24 – 33°C

TUGUEGARAO CITY 23 – 31°C

BAGUIO CITY 15 – 22°C

Greece repays $485-million IMF loan installment despite cash crunch

METRO MANILA

LAOAG

LAOAG CITY 23 – 33°C

news@businessmirror.com.ph

@PanahonTV

1:05 PM

0.95 METER

news@businessmirror.com.ph

The Nation BusinessMirror

PHL welcomes Iran nuke deal

P

HILIPPINE Foreign Affairs officials said the country welcomes the recently concluded framework on the nuclear program of the Islamic Republic of Iran.

“The Philippines supports diplomatic efforts to address concerns on Iran’s nuclear program with a view to achieving a peaceful and lasting resolution,” the Department of Foreign Affairs (DFA) said in a statement.

The nuclear deal foresees lifting US and international economic sanctions on Iran in exchange for compliance with restrictions on its nuclear program.

Iran holds the world’s fourthlargest proven crude-oil reserves and the world’s second-largest natural-gas reserves, according to the United States Energy Information Administration(USEIA).

Iran’s exports of crude oil and lease condensate dropped to their lowest level in 2012 since 1986, as the US and the European Union tightened sanctions targeting Iran’s oil sector, the USEIA reported.

The comprehensive agreement on the Iranian nuclear program is a topic of the final phase of the negotiations among Iran and the five nuclear armed countries, such as the US, Russia, China, France, the UK and Germany, plus the EU. The interim deal, agreed in Geneva in November 2013, is where Iran agreed to rollback parts of its nuclear program in exchange for relief from some sanctions, which went into effect on January 20 last year.

A second extension deadline set to July 1, according to the DFA. Based on the March-to-April negotiation on the Iran nucleardeal framework and which was completed on April 2, Iran tentatively agreed to accept significant restrictions on its nuclear program, all of which would last

for at least a decade, the DFA said.

The DFA added that Iran also agreed to submit to an increased intensity of international inspections under a framework deal. These details are to be negotiated by the end of June.

Thirty-one percent of US Republicans favor a new nuclear deal with Iran, creating a challenge for their party’s lawmakers, who largely oppose the framework accord sealed between Tehran and world powers, according to a Reuters poll on Wednesday.

Another 30 percent of Republicans oppose the pact, while 40 percent are not sure, the poll added.

The news report said the data reveals a sharp split in the party, as its leaders ramp up opposition to the deal championed by President Barack Obama, a Democrat. Recto Mercene

DepEd releases SHS permits to over 1,100 private schools

F

ACING fears on the K to 12 Program, the Department of Education (DepEd) announced that it issued provisional permits to 1,122 private schools that will offer senior high school (SHS).

Education Secretary Armin A. Luistro, FSC, said in an interview that the “DepEd is doing everything it can to make sure that all the anxieties and fears will be addressed in the next 11 or 12 months.”

Luistro added that the DepEd has identified and mapped more than

5,800 public schools and private schools set to offer SHS next year.

According to Luistro, who is also a Catholic priest, the identification and mapping was accomplished through his field-office staff.

The DepEd estimates that 1.2 million to 1.6 million public-school students will enroll in SHS in 2016.

The DepEd calculates more than 90 percent (800,000 to 1.1 million) of these students will proceed to SHS, while the remaining 400,000 to 5,000 in non-DepEd SHS. Pub-

lic-school students and Education Service Contracting grantees, who will enroll in a non-DepEd SHS of their choice, will receive a government subsidy covering school fees, Luistro said.

The former president of the De La Salle University was one of the businessmen, who lobbied successfully for putting an additional two years in the country’s education system.

Luistro emphasized that the DepEd has been preparing for this

reform since 2010. On the fifth year of the K to 12 rollout, DepEd continues to gear up for full implementation. “We are building close to 30,000 classrooms at the second quarter. We will be hiring around 30,000 teachers by 2016. For all of our textbooks, as early as now, we have done a call for 2016,” so that we won’t have an issue.

Luistro added that he needs “a little encouragement and support on this last leg and for them to say, ‘We can!’” With PNA

Editor: Dionisio L. Pelayo • Friday, April 10, 2015 A3

Govt trains health workers on mental-disorder case mgnt

C

ORON, Palawan—The last batch of health workers, those assigned in the island-provinces of Oriental and Occidental Mindoro, Marinduque, Romblon, Palawan (Mimaropa), have been trained in mental health in primary and secondary care, the Department of Health (DOH)-Mimaropa said on Thursday.

According to DOH-Mimaropa Regional Director Eduardo C. Janairo, the 223 health workers include heads of provincial and municipal DOH offices in the island provinces.

Janairo said the training was based on the evaluation of the needs of the region last year. However, he didn’t cite the number of mental-disorder cases in Mimaropa.

What Janario cited is a two-year-old report by the United Nations Children’s Fund that said the most prevalent mental health problem among adults in the country is post-traumatic stress disorder, followed by depression.

Anxiety, the 2013 report said, is the most prevalent among children.

“The training meant to equip health workers with the knowledge to fully assess and manage persons with mentalhealth problems, especially those in the provinces.”

Prior to the workshop, one of the serious problems that Mimaropa is facing is lack of psychiatrists, Janairo said.

Patients with mental disorders in the island provinces are usually referred to the National Center for Mental Health (NCMH) and require traveling

to Manila, he added. Likewise, the high cost of medicine is one reason some patients discontinue treatment, which sometimes can lead them to commit suicide. Janairo also didn’t say how many have committed suicide in Mimaropa. But he hopes to resolve that problem with the training as they can now apply for the government’s medicine access program.

Through this program, Janairo said they would be able to give medicines for free to “indigent” mental-health patients. Trainers from Manila-based NCMH taught health workers on diagnosis and care, psychosocial assistance and medication of persons with mentalhealth problems.

Janairo said health workers proficient in attending to a person with mental-health problems “will lead to beneficial effects and be cost-effective at the same time.”

“Once our health workers are proficient to handle cases, we could save a number of patients and we could immediately identify and treat cases of depression, schizophrenia and epilepsy even in areas where resources are limited. We can also help in reducing cases of suicide and help them [patients] begin to lead normal lives.”

The World Health Organization defines mental health as a state of well-being in which every individual realizes his or her own potential, can cope with the normal stresses of life, can work productively and fruitfully and is able to make a contribution to her or his community. PNA

Economy

A4 Friday, April 10, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

BCDA to bid out Clark rail system in June

T

he Bases Conversion and Development Authority (BCDA) said on Thursday that it will bid out the Clark Rail Transit System deal in June and that it is now in the process of finalizing the terms of reference.

BCDA President and CEO Arnel Paciano D. Casanova also said the government-owned and -controlled corporation has reached an agreement with the Department of Transportation and Communications (DOTC) to extend the project’s scope and connect the rail to Manila.

“The DOTC now wants us to do the Malolos to Tutuban portion of the railway. Initially, it was just Malolos to Clark, now it’s Tutuban to Clark, which means the section,” Casanova said. “We’re now finalizing the terms of reference, it’ll be out by May and we can start the bidding in June,” he added. Casanova said the Clark Rail Transit System will be undertaken via the public-private partnership scheme and will be a joint-venture (JV) project.

“Offhand, BCDA will provide the land needed including substantial areas for commercial development at every station. The private JV partner will plan, design, finance, build, operate and maintain the Clark Rail,” he said earlier. Casanova said the Clark Rail will be electric

powered. It will involve some 82 kilometers of double back track between Malolos and Tarlac City, and will have approximately 13 stations.

He said the alignment of Clark Rail is still being studied.

He added that the JV partner will conduct the final alignment study. The BCDA would set aside 100 hectares in Clark Green City for use as a transport hub that will include the Clark Rail depot. The Clark Rail Transit System will be connected with the North-South Commuter Railway (NSCR) in Malolos and will be part of the $6-billion integrated Luzon Railway Project. It is seen to provide more access from Metro Manila to the Clark Green City.

In February, the National Economic and Development Authority Board, chaired by President Aquino, approved two projects under the North-South Railway master plan.

The two projects are the Phase 1 of the NSCR Project and the NorthSouth Railway Project—South Line.

Both projects are under the DOTC.

BIR reminder: File returns electronically

T

NO HOLIDAY

April 9 is a public holiday in the Philippines but these construction workers did not go on a break and are seen putting together the structural foundation of a condominium building along Tomas Morato in Quezon City. NONOY LACZA

Catherine Pillas

No reason for food prices to go up, lawmaker says

T

he prices of fish and other food items should stay “fairly” low as long as fuel costs are down, House Deputy Minority Leader and LPG Marketers’ Association Rep. Arnel Ty said.

“Fuel is the single biggest expense in fishing operations, and since fuel costs are down, there’s no reason for fish prices to go up,” said Ty in a statement.

Depending on the size of their vessels and onboard refrigeration, he said commercial fishing operators spend around 30 percent of their income on fuel.

Citing figures from the Philippine Statistics Authority (PSA), Ty noted that galunggong, or round scad, was quoted at P140 per kilogram, while alumahan or mackerel was priced at P200 per kilo in Metro Manila’s public markets as of April 7.

“The deflationary impact of cheaper oil on consumer prices is widespread. It cuts across a broad range of food production,

processing and manufacturing industries that are driven by fuel.

So overall food prices ought to stay depressed,” Ty said.

Last Tuesday, oil firms rolled back their pump prices by P0.65 per liter for gasoline; P0.15 per liter for diesel; and P0.25 per liter for kerosene.

Citing Department of Energy figures, Ty said the P28.70-per-liter prevailing common price of diesel is down P11.55 per liter, or 28.7 percent, compared to six months ago.

The P41.95-per-liter current common price of gasoline is down P10.10 per liter, or 19.4 percent, he said. Ty also added LPG prices are now down by as much as 20 percent, to a range of P508 to P728 per 11kilogram cylinder.

According to PSA, inflation in March slowed to 2.4 percent from 2.5 percent recorded in February.

Among the commodities, the food alone index exhibited one of the highest growth rates at 4.9 percent.

Jovee Marie N. Dela Cruz

he Bureau of Internal Revenue (BIR) has reminded that all taxpayers newly mandated to file their returns electronically through the eBIRForms facility should still do so before April 15 even if they had already filed their returns manually.

Internal Revenue Commissioner Kim Jacinto-Henares issued Revenue Memorandum Circular 14-2015 to remind taxpayers newly mandated to use the eBIRForms facility to file electronically on or before April 15 to avoid fines and surcharges.

The following taxpayers are now mandatorily required by Revenue Regulations 5-2015 to file their returns electronically: accredited tax agents/practitioners and all its client-taxpayers; accredited printers of principal and supplementary receipts/invoices; one-time transaction taxpayers; those who shall file a “No Payment” Return; governmentowned or -controlled corporations; local government units, except barangays; and cooperatives registered with the National Electrification Administration and Local Water Utilities Administration.

“Taxpayers mandated to use eBIRForms and file electronically who had already filed manually are mandated to refile electronically on or before April 15. Those who refile electronically on or before April 15, shall not be subject to the P1,000 compromise penalty and 25-percent surcharge for wrong venue,” the new memorandum circular said.

The circular provided the guidelines for the filing of income-tax returns due on April 15 through the eBIRForms facility. Taxpayers who are required to file electronically either through eFPS (electronic filing and payment system) or the eBIRForms facility are advised to use the latest version of the “offline eBIRForms Package,” which can be accessed through the BIR web site at www.bir.gov.ph. The “offline eBIRForms Package” is a program that can directly encode data, validate the entries, do automatic computations, edit, save, delete, view, print and submit the returns of taxpayers.

The circular, also made available through the BIR’s web site, provides the steps for the electronic filing of returns through eFPS or eBIRForms facility using the said downloadable program. David Cagahastian

Comelec urged to prepare for manual elections in 2016, explore alternatives

A

lawmaker on Thursday asked the Commission on Elections (Comelec) to prepare for manual 2016 elections in the event that the SmartmaticTIM contract and other automation plans could not be implemented due to several legal problems. “ The simplest option for the Comelec is to prepare for manual elections which would even cost less than the controversial Smartmatic-TIM contract,” Nationalist People’s Coalition Rep. Rodolfo Albano III of Isabela, a senior member of the Minority Bloc, said.

Earlier, a “no election” scenario has cropped up after the Comelec’s P269-million contract with the Smartmatic-TIM to refurbish 81,000 vote counting machines contract had been stymied by a temporary restraining order issued by the Supreme Court.

“Should the high court junk with finality the Comelec’s contract with

Smartmatic-TIM, Comelec has no recourse but to conduct manual elections,” Albano said.

However, Albano said the poll body may consider using a hybrid manual-computerized option, like the Transparent and Credible Election System (TCrES) being pushed by former Comelec Commissioner Gus Lagman.

The TCrES is a system by which individuals vote manually but the result is transmitted electronically.

He said there is enough time for the Comelec to consider a hybrid system that will combine manual processes—voting and canvassing of votes and the computerized or automated transmission of election results.

“The combined manual-computerized election system is one of many proposals submitted to the poll body by election watchdog groups,” Albano said. Albano said the Constitution provides for the conduct of regular national and

loca l elections—whether by manual or automatic counting.

“The Constitution is supreme to any law, ordinance, executive order or decree. And in regard to elections, the Constitution mandates us to elect our leaders at a definite date,” he said.

The lawmaker added failure to implement the automation law is the basis for the “no election” scenario in 2016 by doomsayers is “faulty” and has no legal basis at all.

“The basis in the conduct of national and local elections—as propounded by many Constitutional and election experts—is enshrined in the Constitution, especially its provisions the right to suffrage of the Filipino people and the conduct of regular elections to elect leaders,” he said.

Albano also said there is no law barring Comelec to revert to the manual system 2016 elections.

Jovee Marie N. Dela Cruz

Economy BusinessMirror

Friday, April 10, 2015 A5

news@businessmirror.com.ph

Poorest Pinoys seen to enjoy lower food prices, inflation rate

T

By Estrella Torres

HE National Economic and Development Authority (Neda) said the impact of sustained growth is likely to be felt by the bottom 40 poorest of the poor population due to much lower food prices with easing in the inflation rate to 2.4 percent.

Neda Secretary Arsenio M. Balisacan said “with the inflation coming down, the impact of growth to employment and poverty will be favorable.”

He said the economic growth last year was eroded by the high inflation rate on food prices at 9.5 percent.

Balisacan said food prices are expected to be stable this year because of the government’s plan to import more rice. On poverty rate, the Neda chief said significant gains are expected. “We are more hopeful and optimistic on the impact of growth on poverty level,” he said.

The Development Budget Coordination Committee (DBCC) earlier maintained its macroeconomic growth forecast of 7 percent to 8 percent despite the expected weak tax revenues from petroleum products.

The forecast is based on the assumptions that there is no major shock compared with the economy’s performance during the first quarter of 2014, when the country was still hurting from the massive devastation brought by Supertyphoon Yolanda (international code name Haiyan) that struck the Visayas in November 2013.

Budget Secretary Florencio B. Abad, chairman of the DBCC, said foreign investments are expected to play hugely on economic growth, as well as increase in public spending in infrastructure.

He said the government is expected to utilize the P468-billion total carryover budget of 2014 for infrastructure, telecommunications and road projects of the Department of Public Works and Highways and the Department of Transportation and Communications. Most of the spending for the carryover budget will be for the capital outlays, he said.

Meanwhile, the DBCC maintained that its deficit ceiling will not exceed by 2 percent of gross domestic product, or P283.7 billion in nominal terms.

The DBCC said with the implementation of revised tax exemptions, the revenue targets are further reduced to P1.673 trillion from P1.72 trillion this year. At the same time, the staggering decline in world crude prices is expected to lower customs revenue targets to P436.5 billion from P465 billion.

D.A. sees bright prospects for hog industry in AEC

T

GRAND HARVEST A farmer harvests hybrid palay SL-8H inside the Casa Heneral Burgos farm in Sto. Domingo, Nueva Ecija. The seed grain is developed by SL Agritech Corp. which boosts rice harvest even during wet season. ROY DOMINGO

GenCos need to follow rules on power generating capacity nationwide this year

G

By Lenie Lectura

ENERATION companies (GenCos) are limited to own, develop and operate a total of 4,396.291 megawatts (MW) of generating capacity nationwide this year, the Energy Regulatory Commission (ERC) said.

The ERC is mandated under Section 45 (a) of Republic Act 9136, or the Electric Power Industry Reform Act of 2001 to set the market share limitation annually to prevent a person, company, related group or independent power producer administrator, singly or in combination, to own, operate, or control more than 30 percent of the installed generating capacity (IGC) of a grid, and/or 25 percent of the national IGC. In a resolution, the ERC has set a limit of 3,917.327 MW of IGC in Luzon; 709.107 MW in the Visayas; and 649.115 MW in Mindanao.

In 2014 the capacity ceiling that each GenCo could own or operate was placed at 3,612.425 MW in Luzon; 548.187 MW in the Visayas; and 589.091 MW in Mindanao. Last year’s limit on IGC per GenCo on a nationwide basis stood at 3,958.087 MW. “Pursuant to its mandate to promote free

and fair competition in the generation and supply of electricity to achieve greater operational and economic efficiency and to ensure consumer protection and enhance the competitive operation of the markets of generation and supply of electricity, the ERC resolved to set the 2015 IGC per grid and national grid and market share limitations,” the ERC said in its six-page resolution.

To date, the ERC said no GenCo has violated the market share limitations. The next adjustment will be implemented in March 2016. First Gen Corp. of the Lopez group, San Miguel Corp. and Aboitiz Power Corp. are three of the biggest power producers in the country to date.

“The ERC determines and adjusts the installed generating capacity and the market share limitation yearly to ensure a competitive generation sector in the electric power industry that promotes and protects consumer interests,” ERC Chairman Zenaida G. Cruz-Ducut said.

In another resolution, the ERC is requiring distribution utilities (DUs) and GenCos to jointly file their respective applications for approval of their power supply agreements (PSAs).

The regulator said that while the entire PSA

rules have yet to be completed, all DUs and GenCos should jointly file their PSA applications.

“Before, it was only optional for the GenCo to join as co-applicant. Now, ERC is requiring it to join,” ERC Executive Director Francis Juan said when sought for comment.

One of the salient provisions of the draft PSA rules requires the DU and GenCos to file with the commission a joint application for the approval of their PSA and for the determination of the reasonable costs that the DU can recover from its captive market as part of its retail rate.

“The commission reiterates its stand requiring the joint filing of PSA applications consistent with its authority to review the PSAs entered into by the DUs with GenCos whose markets have not reached household demand level, to regulate the retail rates charged by DUs for the supply of electricity in their captive market shall be subject to regulation by the ERC based on the principle of full recovery of prudent and reasonable economic costs incurred, or such other principles that will promote efficiency as may be determined by the ERC,” the commission said in a resolution issued in February but released only this week.

he Department of Agriculture (DA) on Thursday said the local swine industry would benefit in the forthcoming integration of the Asean Economic Community (AEC) as it holds several advantages over its counterparts in the region.

Agriculture Secretary Proceso J. Alcala said being free from foot-and-mouth disease (FMD) without vaccination remains as the country’s biggest advantage.

Alcala said the country’s FMD-free status, as declared by the World Organization for Animal Health or the OIE, has paved the way for export opportunities for local hog raisers.

“As such we were able to export hogs and carcass to Dubai, and soon to Singapore and Russia,” he said.

He said the country’s swine industry has also several “plus points,” which include large domestic and institutional market, high utilization of pork byproducts, strong organization of hog producers, access to good genetics and global technology supported by swine breeder farm accreditation programs as well as educated entrepreneurs and farm managers.

“The AEC would also serve as an opportunity for uniting all pork industry stakeholders in addressing production and marketing challenges to make the local livestock industry more competitive,” Alcala said. Citing data from the Philippine Statistics Authority, the agriculture chief said the livestock and poultry subsectors continue to be “bright spots” in the agriculture sector, posting a 1.02-percent growth in production.

The sector contributed 16.1 percent of the total agricultural output with a gross value of P247.1 billion (at current prices) in spite of the calamities that struck the Philippines in 2014.

“With this growth in the livestock sector, the swine industry has the biggest contribution. Overall it is the second-largest provider to the country’s

agriculture sector next to rice,” he said.

Hog production expanded by 1 percent in 2014.

The uptrend in production and prices boosted the gross output value of hog by 5.82 percent from the sustained demand from hotels and restaurants.

Meanwhile, Alcala said the DA is confident that it is on the right track on the implementation of programs and interventions for the hog industry as it seeks to make the sector more competitive in the AEC. “To further enhance competitiveness, the DA will remain vigilant in its surveillance and monitoring to ensure the country maintains its FMD and avianflu virus-free status,” Alcala said.

The DA also continues to establish diagnostic laboratories for more effective hog-cholera eradication program and is currently profiling swine disease in collaboration with University of the Philippines College of Veterinary Medicine.

Recognizing the need for more research and development initiatives, the DA has a joint project with the Department of Science and Technology and Swine Breeders Association of the Philippines on public-private partnership on the application of animal genomics to increase productivity and improve efficiency of the Philippine swine industry.

The said project aims to improve and spread the application of gene-marker technology in swine breeding and selection.

“We are also seriously addressing the problem of smuggling with the help of the Bureau of Customs, regional quarantine officers, and the National Meat Inspection Service,” Alcala said.

He said the DA is fully supporting the proposed bill of Sen. Cynthia Villar, the chairman of the Senate Committee on Agriculture and Food, which seeks to make smuggling as a nonbailable offense.

“This bill, once approved, will be a strong deterrent against smuggling in the country,” Alcala said. PNA

Media group hits arrest of ex-NPC prexy

T

By Jonathan L. Mayuga

HE National Union of Journalists of the Philippines (NUJP) condemned the arrest last Sunday of Hataw publisher and columnist Jerry Yap. A former president of the National Press Club (NPC), Yap was arrested as soon as he arrived from a vacation in Japan, at the Ninoy Aquino International Airport by virtue of a warrant issued by Regional Trial Court in Manila Branch 39 Judge Noli Diaz over a libel case filed against him by former Manila Police Department intelligence chief Senior Insp. Rizalino Ibay.

“Regardless of the merits or lack thereof of the

charges against Yap, his arrest not only violated a long-standing agreement between the Philippine National Police and major media groups to inform the organizations first before arresting a journalist, particularly one accused of libel,” the NUJP said.

The group believes the arrest was carried out on a weekend “to deprive Yap of the basic rights accorded arrested suspects, particularly the right to bail.” The group said the PNP should direct MPD director, Chief Supt. Rolando Asuncion, to immediately issue a public explanation on the actions of his subordinates.

The group, likewise, said an investigation into the incident, a violation of the standing agreement on the arrest of journalists, is in order.

A6 Friday, April 10, 2015

Opinion BusinessMirror

editorial

‘I love the Philippines.

I pay taxes.’

‘I

N this world nothing can be said to be certain, except death and taxes,” said American author, inventor and founding father Benjamin Franklin more than 250 years ago. Regardless of the inevitability, we spend a large amount of our time trying to avoid both.

While most people will acknowledge that taxes are the price we must pay for public services, when it comes to “me” paying taxes, it can be a different story with many excuses.

“Why should I pay taxes when the government wastes the money?” “Why am I forced to pay a bigger share of my income than the rich people?” “I pay taxes and fees on almost everything, so paying less income tax is only right.”

While there may be an element of truth to those statements, tax evasion is not the solution. If you don’t like the way the government uses tax revenues, then elect different people. If you think the tax code is unfair, then aggressively encourage and support those legislators that are trying to write better tax laws. In a collective society, an individual cannot pick and choose which laws to follow or not. The harsh reality is that there are two types of people— honest taxpayers and freeloaders. The freeloaders want the government services without paying for them while expecting everyone else to pay the check.

We complain about high tax rates in the Philippines and ignore the fact that one reason for high rates is because not everyone is paying their fair share.

According to the Bureau of Internal Revenue (BIR) estimates, there are about 20 million freeloaders across all economic groups from the high-priced lawyer to the sari-sari store owner who do not pay taxes. Estimates are that the government is losing at least P400 billion a year in potential revenues because of rampant tax evasion.

Internal Revenue Commissioner Kim S. Jacinto-Henares has provided leadership in trying to get Filipinos to pay their correct taxes. Not everyone is happy with her methods such as “tax shaming” but at least it got the public to start talking about tax evaders. But we think she needs to do more to improve the system and simplify filing rules.

Some may believe that Henares has horns and a pointed tail, but this woman is highly qualified for her position having degrees in accounting and law from De La Salle University and Ateneo de Manila University. Henares also served as a senior private sector development specialist for the International Finance Corp./World Bank. She is a dedicated public servant in the most thankless position in the government. We need to support her more.

One problem with tax cheating is that many are responsible for it as enablers. Henares is trying to clean up the BIR corruption. But a corporation’s accountant that “cooks the books” is just as liable and crooked. The Philippine Institute of Certified Public Accountants might want to take a more proactive role in helping the BIR drive to stop tax evasion and improper tax avoidance.

Paying taxes honestly is a function of active citizenship and corporate social responsibility for all of us.

Surveys and commissioners

essentially giving survey firms a free pass for not complying with the rule in 2013. nnn

James Jimenez

S

spox

URVEYS have become such a fixture in the Philippine political landscape that you’d think people would stop noticing. Except that we haven’t. Surveys continue to be a major influencer for many voters who still choose their candidates on the basis of perceived winnability.

I don’t have survey numbers to prove that assertion, of course, but after more than a decade of working in elections, I’ve heard it said often enough that voters would have voted for this or that candidate were it not for the fact that surveys showed him or her to be a cellar dweller.

“I don’t want to waste my one vote voting for someone who’s going to lose anyway.”

We do so love being on the winning team whether in beauty pageants or politics.

Because the numbers they release are so influential, survey firms need to be more transparent about the work they do. More specifically, these firms need to disclose who commissioned or paid for those election related surveys; or in cases where, as the survey firms are quick to point out, the political surveys are not commissioned but undertaken at their own instance, who their subscribers are.

Wait, you say. Why the subscribers?

According to the Commission on

Elections (Comelec), subscription fees are part of the income of survey firms, which are then used to fund election surveys that various individuals and groups subscribe to, thereby getting access not just to the survey results but also to privileged survey related data. Subscribers are, therefore, indirectly, but effectively, the “payors” of the surveys and, under the law–Section 5.2 of Republic Act 9006, also known as An Act to Enhance the Holding of Free, Orderly, Honest, Peaceful and Credible Elections Through Fair Election Practices, to be precise—such payors are supposed to be disclosed.

In the run-up to the 2013 elections, the Comelec reiterated this rule and clarified that the failure to abide by it would result in an election offense. Not surprisingly, a couple of major survey firms hauled the Comelec before the Supreme Court. Earlier this week, however, the Court upheld the Comelec while

AS of this writing, just who the President will appoint to the Comelec remains one of the most talked about issues. Names pop in and out of the ether almost daily, with each bearing varying amounts of buzz. The proliferation of these “appointables,” however, only serves to fuel speculation about who will eventually get the appointing authority’s nod.

Expectedly, everyone has his own list of must-have qualifications. Some, for instance, insist that the new appointees must be savvy in information technology (IT).

Well, sure. We live in a world where IT has been integrated into pretty much everything and, in any case, who wants a Luddite? However, it bears remembering that elections are the core business of the Comelec, not IT. Despite the undeniably key role being played by IT in modern elections, much of the Comelec’s work still revolves around deciding electoral cases that require both legal knowledge, experience in the political complexities of elections, and a good grasp of the organizational challenges inherent in mounting an electoral exercise.

Others would like to see a woman appointed to the commission again, as this would be great for the commission’s gender balance. Women Commissioners have always been outstanding. Commissioner Teresita Dy-Liacco Flores, for instance, was instrumental in the forma-

tion of the Association of Asian Election Authorities—a regional association of election management bodies from, well, Asia. And who can forget Commissioner Haydee Yorac? Interestingly, however, the Comelec has only had one female chairman, Justice Harriet Demetriou who, I might add, intimidated the heck out of me when I was her student.

There is also considerable support for the appointment of a commissioner hailing from the South, preferably a Muslim.

Again, this speaks to the balance of representation in the commission. In fact, one of the vacancies was created with the retirement of commissioner Elias Yusoph, whose insight was invaluable to the formation of election policies.

And of course, Comelec employees themselves hanker for one of their own.

The last two to have transitioned from field office to board room were Commissioner Gregorio Larrazabal and, before him, the formidable Commissioner Resurrecion Z. Borra. The practical experience in election management of both gentlemen proved critical to resolving many election day crises during their tenure.

At the end of the day, however, it doesn’t really matter too much where the new commissioners come from or what their backgrounds are. All that really matters is that they be men and women of integrity and determination.

The world of politics is, after all, known to be an acid test for both.

James Jimenez is the spokesman of the Commission on Elections.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Urbanization and economic growth

In brevity there is death Tito Genova Valiente

Leonardo A. Lanzona Jr.

EAGLE WATCH

A

manifestation of income inequality in the Philippines emanates from geography. From the period beginning the fourth quarter of 2013 to the third quarter of 2014, the average share of National Capital Region (NCR) was 36 percent of the country’s gross domestic product (GDP), while Region 4A or Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) and Central Luzon have 18 percent and 9 percent shares, respectively.

These regions make up more one-half of the country’s production, as less than half or 37 percent are distributed to the rest of the country. Mindanao, the whole island that is at the center of recent headlines, accounts only for 18 percent of the GDP, with the Autonomous Region of Muslim Mindanao posting the lowest contribution at 0.8 percent. In effect, the improved economic performance currently experienced in the country can be seen as fundamentally based in Luzon, particularly Metro Manila.

In any case, it is not surprising that the top 3 income-generating regions are both found in Luzon and are in fact located adjacent to one another. Urbanization—the concentration of population in cities and towns—is a key feature of economic growth. Given its long history as the country’s trade center, Manila developed at a faster rate than the other cities in the country. Nevertheless, cities need to be sustained if these are to survive.

With agricultural produce coming primarily from Central Luzon and manufacturing output from Calabarzon, Metro Manila continues to be the premier urban area in the country. Yet, clearly, without the development in its surrounding regions, the NCR would certainly not be able to maintain what others consider its “imperialistic” hold over the country. At the same time, without the necessary markets provided by the NCR, these nearby regions will not grow at a rate faster than other regions.

This tale of three regions clearly shows the close relationship between urbanization and economic growth. Metro Manila created greater non-agricultural activities which did not require land intensity and created agglomeration forces resulting in increased scale of production.

In effect, urbanization promoted a structural transformation from agricultural, involving more people in the production process and, in turn, generating increased demand for outputs originating in the two other regions. Each sector experienced greater productivity because of such trends, and in each location, various regionspecific interventions, including infrastructure, allowed economic units to respond effectively to these trends.

This close urbanization-growth linkage, however, does not happen automatically. Three interrelated factors are needed to be in place.

First, regions should exploit the benefits from the proximity provided by their geographic location. Even without too much infrastructure, the contiguity across regions must result in lower transaction costs and greater and easier interactions. The urbanization in Metro Manila, for instance, created clusters of growth which had improved production technologies in the adjacent regions. To some extent, geography determines the comparative advantage, or economic potential of combined regions.

Second, regions must develop integration or increased trade connections. Because it exploits the region’s comparative advantage, trade has been considered as engine of growth and has been a persistent

theme in the economic development literature. To some extent, this may be exaggerated. However, trade needs to be considered in terms of the capital infusion and technological innovations that are projected in each location. Externalities from technological changes and learning by doing effects then maximize the benefits of this integration process over a long period of time. These are functions that a first-tier urban area is expected to accomplish.

Third, institutions have to be established in order to make trade between these regions more mutually beneficial. This factor has received increasing attention in the growth literature as it has become evident that property rights, appropriate regulatory structures, environmental laws, the quality and independence of the judiciary, and bureaucratic capacity are significant in many settings and that they were of utmost importance to initiating and sustaining economic growth.

Previously seen as being dependent on incomes, institutions are now considered essential preconditions and determinants of growth.

In fact, macroeconomic policy and the so-called economic fundamentals depend on the institutional context.

The three regions in Luzon have undergone remarkable transformations during the last two decades in their economic performance, while many others have experienced sharp deteriorations. Manila for instance has a strong service sector with the advent of the businessprocess outsourcing and call-center industry. More recently, however, an upsurge in the manufacturing sector is noted, particularly in the outskirts of Metro Manila. This suggests that moderate changes in region-specific circumstances (policies and institutional reforms such as “matuwid na daan”), often interacting with the external environment, can produce significant discontinuous changes in economic performances.

The key lesson in this tale of Luzon regions is that the process of urbanization and growth can be replicated in other urban areas in the country in order to enhance current economic growth and minimize regional disparities. Surely, the products and the production process may differ in other regions.

Desirable institutional arrangements may also vary and may have a large element of context specificity, arising from differences in historical trajectories, geography, political economy or other initial conditions.

However, difficult though it may be, a comprehensive approach involving all three factors is all that is needed for this process to work. In the end, urbanization and the consequent structural transformation will require institutional changes that are cognizant of the limits imposed by geography and should incorporate integration as a necessary outcome to be sustainable.

Leonardo Lanzona Jr. is director of the Ateneo Center for Economic Research and Development and a senior fellow of Eagle Watch, the school’s macroeconomic research and forecasting unit.

annotations

T

HIS happened in a quiet city a few nights ago. As with all myths and stories, the details are sketchy and change from one observer to another. The narrators all claim to be observers or were there, or were there by way of a friend or a cousin.

The story mentions how a young man was confronted by a group of four (some say three); that the people busy with their beer suddenly heard a tussle but forgot about it. There were two cars on the sidewalk and they blocked the action. Those on the other side of the street (for the street was one of the busiest in the old city) saw a young man seemingly flicking back and forth a knife. A throat was slashed and a side was stabbed and two men fell down, dead.

The nights became very quiet on that part of the city. The lights dimmed for a while in that bar. When the lights were turned on again and music was played once more, the tables remained empty. Even when there were customers, the place looked barren. Before the incident, the place was jumping with life, with young men and woman as vital as the notion of life itself. The place was the one that stayed up till the wee hours of the morning. It was meant to last.

When people started avoiding the place, no group of three or five could bring life to it.

The altercation, if there ever was, was short and muffled. The death was quick and the life of the young man remained that, young.

Terror is the reason for its being.

When it strikes our heart, however, we search for reason, for logic. We want to know why terror comes upon good peope and good cities, I was back in that city and I knew the place that was the scene of violence and death. A friend who frequented the place and who wrote about life because he was always in that place summoned all the courage so he could go back to that place. He asked me to go with him.

We were not criminals but we reminded ourselves about the expression, criminals go back to the scene of the crime. Now, maybe we are also some kind of criminals because we allow that culture where young men look at other young men and the eyes become daggers. They stand and rage against each other.

The narrative is short and death comes easy and swift.

It is an old tale. We who survive daggers, guns, terrifying kicks and blows are left to contend with a long life, or a longer existence.

And so it was that we decided, morbidity aside, to face up to the fear of a once winsome place. We stopped by

Friday, April 10, 2015

a bar that was facing that watering hole. After a few bottles of beer for me and a scotch for this friend, we left the table. We crossed the street and without imagining boundaries and blood stains on the pavement we proceeded to the main entrance.

Something stopped us: a rope in the shape of a wide cobweb was propped up. The web served as a gate. The guard made a sign that we move to the right where there was an open space. We scanned the place and chose a small table. There was no one near us. Up near the wall that defined the perimeter of the place was a rectangular table with five people. They were having fun. Either they did not know the tragic incident that took place in that area or they had a good attitude to living. It must be the latter. Life goes on even when young men or women die. To borrow Sylvia Plath’s lines inversely, living is an art and some do it exceptionally well.

My friend knew the young man.

He was a former student. He validated to me the many things that people said of the young man. He was a gentleman.

We looked around and called the waiter we knew. He was somber. We

Women empowerment Asean style Chit U. Juan

Women Stepping UP

W

E recently gathered almost 50 women from the Association of Southeast Asian Nations (Asean) to agree on aligning under one brand for our products: Great Women. Ahead of everyone’s speculations, apprehensions and other anxieties about coming together under one Asean Economic Community, the women agreed to carry their sisters under this identifying mark.

We had powerful businesswomen: from Lao PDR, the great dame of DAO Coffee Madam Leauang; Thailand’s Sumivol founder Pre; Cambodia’s Queen of Organic Pepper Nanda Pok of Kampot Pepper Farm; owners and women directors of Raming Tea, Bonback Manufacturing; and Nancy of Facy Beauty Products, among many others who showcased their products to the other women in the crowd.

It was an exhilarating experience to hear of stories of empowerment from Mo Hom, a returning Burmese who now has tea farms and silk weaving in Myanmar. She now has Mo Hom Foundation to help women avoid the opium trade and avoid being trafficked into China through their shared borders. All these through her weaving and textile operations in Yangon.

We were regaled by Silk Avenue owners with stories about how they have helped many women find good jobs weaving silk and also contributing to green efforts of the company.

We also listened to Madame Pre, daughter of the founder of the largest crocodile farm in the world. Even as a single mother, she ventured into exotic handbags manufacturing

and selling of quality exotic skin to the world’s biggest fashion houses like Gucci and Hermes. She now has Sumivol, named after her mother, a luxury brand now on its third year in Thailand and soon to open in Bahrain.

These women were brought together to the conference by the Asean Connectivity through Trade and Investment office of the United States Agency for International Development in Jakarta with the efforts of Dana Stinson, Patty Alleman, the indefatigable Thitapha and the very able Putri Adamy.

The Acti has tapped “Great Women” brand owners ECHOsi Foundation of the Philippines President Jeannie Javelosa and yours truly to spread the word about branding quality products from Asean. Not just branding but collaborating among Asean woman-entrepreneurs and designers to come under one platform: “Great Women.”

The Philippines was ably represented by Business and Professional Women (BPW) Makati members Camille Escudero, Zarah Juan and famous jewelry designer Wynn Wynn Ong who also represented her native

Myanmar. Wynn lives in the Philippines and produces her works here but also has business connections in Myanmar.

The Filipinas took over the meeting, led by Jeannie, Great Women brand visionary and Asean lead. I provided the synthesis of the workshops and summarized the day’s proceedings at the end of each conference session. It was fun and interesting having to divide the groups not by country, but by specialty—truly one Asean with no country limits and no borders in cooperation. Just plain old productive girl talk and meaningful discussions of collaborations.

Malaysia immediately invited everyone to showcase the sampler products (for example, Jasmine tea with lemongrass from Philippines, Jasmine tea with ginger from Malaysia but all done under Raming Tea’s production line). Malaysia is mounting an small and medium enterprise show in late May which will be the maiden show of Great Women in the region.

The textile people were organized

by Zarah Juan and Camille Escudero where silks from Thailand and weaves from Myanmar or the Philippines may find themselves in one product. Interesting, challenging but doable.

We so look forward to the first product of this meeting: a platform where women help women up the value chain. We realized we were all helping the same kinds of people: women who needed to be empowered. Women who are weavers, skilled artisans and farmers.

We look forward to helping our other Asean sisters and learning from those who have advanced in their fields. The Philippine group simply shared what has already

A7

asked where all the persons involved in that violent incident were seated.

He pointed to Table Nos. 3 and 24.

We looked again and observed how the two tables were really set far apart from each other. Who would ever think on that night that those at that tables would counter all the good forces in the world so that they could destroy each other. We kept looking around. The appetizers that made place popular were plentiful.

We ordered and ordered them. They came to our table fast.

Something was not right with this night as with that night of death or maybe we exaggerate scenarios in our mind. Maybe we are able to sense more because we care about this world and the good things it offers.

For John Donne, any man’s death diminishes us. I always thought those lines were meant for persons dying away. That night, I felt the place had a life and it was being snuffed out each night people did not confront their fears about death by staying away. It remains difficult to consider our mortality when bloodshed is the color of that memory.

E-mail: titovaliente@yahoo.com.

worked in the country. The ECHOsi gathered women designers, taking them to indigenous peoples and artisan groups in different communities. For food like coffee and jams, I told them we had already done an Asean blend in coffee. We now can do it in pepper, tea and many more products like rice which abound in all Asean countries.

Next time you buy a gift, you may find a “Selection of Asean Rice” packaged by Bonback of Thailand but having Philippine, Vietnam and Thailand rice in it. Or pepper may be a selection of the Asean hot stuff: Kampot pepper; Philippine siling labuyo; Myanmar’s chili; and Malaysian sambal, but packaged by Nanda Pok of Cambodia.

The logistics may be challenging but the branding idea is welcomed by all. One Brand. One Asean. One Great Women. How wonderful that women have already forged ahead for regional cooperation doing what they love to do: Talking and meeting and, most of all, helping other women rise up to lead better lives.

Chit U. Juan is president of ECHOstore sustainable Lifestyle and the International Women’s Coffee Alliance-Philippines Chapter. She is also a member of Women Corporate Directors-Philippines Chapter. She is a social entrepreneur who has founded many start-ups.

For more information, get in touch with ECHOsi Foundation at echosi.foundation@gmail.com or www.echosi.org.

This article reflects the author’s opinion and is not the official stand of the Business and Professional Women (BPW) Makati. Women Stepping Up is a rotating column of members of BPW Makati and comes out twice a month.

For more information on BPW Makati, visit www.womensteppingup.org.

2nd Front Page BusinessMirror

A8 Friday, April 10, 2015

Baguio RTC orders BCDA to return P1.4 billion in rent paid by CJHDevco

By Joel R. San Juan

T

he Regional Trial Court (RTC) in Baguio City has granted the petition of Camp John Hay Developer, CJH Development Corp. (CJHDevco), for confirmation of the P1.42 billion that the Philippine Dispute Resolution Center Inc. (PDRCI) awarded to it in February against the Bases Conversion Development Authority.

In a seven-page decision promulgated on March 27, Judge Cecilia Corazon Dulay-Archog, presiding judge of Baguio City RTC Branch 6, rendered judgment confirming the “final award” by the PDRCI to CJHDevco, ordering the Bases Conversion and Development Authority (BCDA) to return to the latter the total amount of P1,421,096,052, representing rentals CJHDevco has paid to the agency. Archog also confirmed the PDRCI ruling that CJHDevco is not liable for any unpaid back rent, consistent with the ruling that rescission and mutual restitution is proper in the case.

The lower court ruled that the PDRCI’s final award is clear and needs no further interpretation by the court.

The RTC stressed that it “is not authorized to revise, interpret or, in any way, encroach upon the work of the arbitral tribunal, except to act on specific grounds to vacate an award, which does not exist in the instant case.”

“And finding that no ground exists to vacate or modify the same, this Court hereby confirms the final award dated February 11, 2015, in PDRCI Case 60-2012,” the order said.

“As to the list of sublessees and/or vested rights holders, they will be governed by the law on obligations and contracts,” the trial court added.

See “Baguio RTC,” A2

www.businessmirror.com.ph

Retail prices in National Capital Region up 2.2% in February–PSA

H

By Cai U. Ordinario

igher food prices caused average retail prices in the National Capital Region (NCR) to go up by 2.2 percent in February 2015, according to the Philippine Statistics Authority (PSA).

The General Retail Price Index (GRPI) in the NCR was higher in February 2015, compared to the 1.8-percent year-on-year growth posted in January 2015, and 1.9 percent posted in February 2014.

The PSA said food retail prices rose 6.2 percent in February 2015. This was the highest increase since September 2014, when the hike in food retail prices reached 6.7 percent.

Meanwhile, data from the PSA indicated that the slower growth in the prices of oil kept retail prices in NCR in check in February.

Data showed that mineral fuels,

lubricants and related materials posted a 21.1-percent contraction in February.

This is slightly lower than the 21.7-percent decline in oil’s retail prices recorded in January 2015.

Retail prices for oil have been decreasing since August 2014, when it posted a year-on-year decline of 1.3 percent. Double-digit contractions in retail oil prices started last December, with a decline of 16.1 percent.

On a monthly basis the GRPI in the NCR inched up 0.2 percent in February 2015, from the January level. This was the highest monthly increase since

August 2014, when the GRPI posted a monthly growth of 0.8 percent.

PSA data indicated that this may be due to the price hikes in gasoline, liquefied petroleum gas, diesel fuel and kerosene, which pulled up the index of mineral fuels, lubricants and related materials by 0.7 percent.

This is the first time the index of mineral fuels, lubricants and related materials posted an increase since the index

recorded a flat growth in May 2014.

The GRPI is a statistical measure of the changes in the prices at which retailers dispose of their goods to consumers or end-users relative to a base year. It is an indicator used to monitor the economic situation of the retail trade sector. GRPI is also used as a deflator of the National Accounts, especially on the retail trade sector and serve as a basis for forecasting business in the retail trade.

China’s deflation threat: What to look for beyond the headlines

D

eflation has been the buzzword since China’s central bank Governor Zhou Xiaochuan told the Boao Forum for Asia last month that the economy and prices were not expanding fast enough. Zhou’s comments came after the benchmark industrial price gauge fell in February by the most since 2009, as growth in the world’s secondbiggest economy decelerated with commodities, such as copper, iron ore and oil, continuing their plunge.

Producer-price deflation vs consumer-price inflation

The price spiral is being driven by commodities and industry, with the producer price index (PPI) plunging 4.8 percent in February from a year earlier, the biggest drop since the global recession of 2009. The consumer price index’s (CPI) 1.4-percent rise in February compares with the government’s full-year target of 3 percent.

March data is scheduled for release on Friday, with economists surveyed

by Bloomberg expecting the CPI to increase 1.3 percent and the PPI to match the 4.8-percent fall in February.

The fall in the PPI is due to a combination of commodities oversupply, “which is mostly good for China because they can get things cheaper, and too many steel mills and cement kilns, which isn’t good,” said Tom Orlik, chief Asia economist for Bloomberg. “On CPI low food prices are an indication that labor costs are low, and low labor costs are a sign that there is labor slack.”

Factory deflation in China is a global issue

Falling prices at the factory gate

are allowing China’s exporters to cut asking prices, feeding global deflation pressures. An export price index from China’s customs office dropped 3.7 points in February from the prior month, the most since January 2012.

China inflation rate surprises economists

Price levels have caught analysts off guard, with the Citi Inflation Surprise Index for China becoming more negative since October 2013, meaning analyst forecasts have been getting progressively more wrong.

The combination of volatile global and domestic factors have made it more difficult for economists to accurately project price changes, said Chen Xingdong, chief China economist at BNP Paribas SA in Beijing.

Price trends vary by region

Inflation isn’t equal in all parts of mainland China, which has 32 provinces, municipalities and autonomous zones. Consumer prices rose least in 2014 in Inner Mongolia, Zhejiang and Beijing, with the CPI growing less than 0.8 percent.

Prices increased most in Qinghai province, 3.5 percent, and 2.6 percent in Shanghai, Tibet and Guizhou, based on December-to-December comparisons.

“Expensive banquets in Beijing may have decreased sharply as a result of the government’s anticraft campaign, and this may result in lower inflation there, while in Shanghai, the impact may not be as obvious as in Beijing,” BNP’s Chen said.

Bloomberg News

Geri’s income surged in 2014 on higher residential sales Continued from A1

more projects in the coming years,” Geri’s Chief Finance Officer Lailatni Villanueva said in a statement.

Real-estate sales reached P2.04 billion, up 139 percent from P856 million in 2013, due to robust sales of residential projects in Southwoods City and Alabang West.

Last year the company has launched five projects. These were Pahara at Southwoods and Holland Park Tower 1 in Southwoods City, formerly known as Manila Southwoods; Alabang West Village; Vineyard Residences’ Shiraz Tower in Twin Lakes; and Santa Barbara Heights Phase 3 in Iloilo.

At the moment, Geri has five major developments across the country covering more

Goldberg. . .

than 2,200 hectares.

These include Boracay Newcoast on Boracay Island, 150 hectares; Twin Lakes in Laurel, Batangas, (near Tagaytay) 1,300 hectares; Southwoods City on the boundaries of Carmona, Cavite, and Biñan, Laguna, 561 hectares; Santa Barbara Heights in Santa Barbara, Iloilo, 170 hectares; and Alabang West, 62 hectares.

Megaworld in May last year purchased the 49.2-percent stake of parent firm Alliance Global Group Inc. in Geri for P10.43 billion.

“Today Megaworld owns 80 percent of Geri and it has taken an aggressive role in transforming Geri’s vast land bank into integrated urban townships, the concept that Megaworld pioneered in the Philippines,” the company said.

Continued from A1

by the accelerated pace of projects under the PPP. On Wednesday three major conglomerates expressed interest in the prequalification conference for the regional prisons project designed to transform sprawling prison sites to redevelopment sites whose

proceeds could fund the establishment of modern correctional facilities.

“And, also, the public-private partnerships are on offer. I think there are a lot of American businesses that are interested in those, too,” Goldberg said.