Businessmirror april 11, 2015

MIAS 2015 Motoring enthusiasts troop to the 11th Manila International Auto Show (MIAS) at the World Trade Center in Pasay City. MIAS 2015 is bent on upping its A-game each year, as it seeks to break previous records as evidence of its game-changing flair. Photo at far right shows the Qin (pronounced “Chin”), a BYD’s (Build Your Dreams) plug-in hybrid compact sedan with an all-electric range of 70 kilometers and a hybrid electric powertrain that can extend the car’s total range to a distance similar to that of a conventional gasoline-powered vehicle. NONIE REYES

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

U.N. Media Award 2008

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business

Tuesday, November 2014 10 No. Saturday, April 11,18, 2015 Vol.Vol. 10 No. 18440

n n

P25.00 nationwide | 6 sections 28 pages | 7 days a week

Ranks of ‘severely poor’ expanded amid decline in number of poor municipalities

Rich-poor gap widened in 2012–PSA DND vows no letup in drive W to boost PHL’s Air Force assets

By Cai U. Ordinario

hile the number of Philippine municipalities with their population classified as “poor” has diminished since 2006 as their financial standing improved, quite a few municipalities saw their economic circumstances worsen as the ranks of those classified as “severely poor” expanded from zero in the past to five at present, according to the Philippine Statistics Authority (PSA).

This development effectively widened the gap between Filipinos who are classified as “least poor” and those other poor Filipinos classified as “severely poor,” and underscored the need for the government to adopt so-called inclusion programs that should lift the less fortunate out of their impoverished surroundings. In between these income classifications sit the “mildly poor,” the “moderately poor” and the “highly poor.”

In an interview with the BusinessMirror at the sidelines of the National Dissemination Forum on the 2012 Small Area Estimates (SAE) of Poverty, national statistician Lisa Grace S. Bersales said this was the first time that municipalities and cities registered poverty incidence rates higher than 80 percent since 2006.

Continued on A2

T

Aboitiz Equity Ventures Inc., real-estate giants SM Prime Holdings, Ayala Land Inc. and Megaworld Corp. recently teamed up to bid for the P123.8-billion expressway and dike project.

Ayala, at the company’s stockholders’ meeting on Friday, said teaming up with the other firms also minimized the attendant risks involved, like when government regulations change with the

he Department of National Defense (DND) on Friday said it remains committed to acquiring the remaining UH-1 combat helicopters that have yet to be delivered by a joint venture of two companies based in North America.

DND Spokesman Peter Paul G. Galvez told the BusinessMirror that the Huey helicopters are needed by the Philippine Air Force (PAF) to boost its capability to combat terrorism and conduct rescue operations.

“Filipinos need those helicopters.

Do we have to wait for another terrible natural disaster before we purchase [the Hueys]?” Galvez asked.

Of its helicopter requirements, the Philippines only has about 25 percent. Galvez said the purchase of the 21 Huey helicopters and the additional eight combat utility helicopters would fill 65 percent of its requirements for air assets.

Not purchasing the helicopters, the DND official said, could result in the loss of lives.

Galvez issued his statement following reports that the DND is mulling over the possibility of terminating the contract of a joint venture involving American firm Rice Aircraft Services Inc. and Canadian company Eagle Copters Ltd. He said the DND’s Contract Termination Review Committee (CTRC) will disclose its decision on the “partial” termination of the joint venture’s contract.

Galvez said the department had to “partially” terminate the contract, because of the delay in the delivery of the remaining 14 Huey helicopters.

Under the country’s procurement rules, the government can charge 10 percent of the cost of the purchase as

Continued on A8

Continued on A2

SUMMER DOWN UNDER Tour guides lead the way, as summer spelunkers make their way through the Sumaguing Cave in Sagada, Mountain Province. Also known as the deepest cave in the Philippines, the multichambered cave features unusual stalagmite and stalactite formations. NORIEL DE GUZMAN

Ayala Corp. open to more partnerships with other conglomerates

By VG Cabuag

A

yala Corp., a company present in almost all segments of the economy, on Friday said that it is open to partnerships with other conglomerates, especially on projects that are either risky or too large for a single company to pursue.

Jaime Augusto Zobel de Ayala, company chairman, said the scale of engagement by domestic corporations in projects usually car-

PESO exchange rates n US 44.5590

ried out by the government has widened significantly compared to more than a decade ago. “If you look at the Philippines five, 10 or 15 years ago, all the big-ticket items were really being handled either by multinationals or by overseas companies,” the executive noted.

“As we get into these much larger items, you’re already talking about numbers that are significantly larger than one company can handle.

So, it makes sense for companies to

come together. Increasingly, we’ve seen ourselves working as a consortium. We’ve won some as consortiums. I don’t see that slowing down,” Ayala said.

The top conglomerates, owned by some of the country’s wealthiest families, have formed a consortium to bid for the multibillion-peso Laguna Lakeshore Expressway-Dike Project, touted as one of the Aquino administration’s biggest public-private partnership (PPP) projects to date.

n japan 0.3696 n UK 65.5775 n HK 5.7499 n CHINA 7.1800 n singapore 32.7881 n australia 34.3157 n EU 47.5133 n SAUDI arabia 11.8799 Source: BSP (10 April 2015)

News

BusinessMirror

Saturday, April 11, 2015

A2

IMF. . .

Rich-poor gap widened in 2012–PSA

Continued from A8

Last October the IMF chief warned of the risk of “new mediocre”: Low growth for a long time. “We must prevent the new mediocre from becoming the ‘new reality,’” said Lagarde on Thursday, adding that “all policy space and levers must be utilized.”

She said euro area and Japan will need to continue monetary accommodation and calibrate fiscal policy to support the recovery without losing sight of debt sustainability over the medium term.

For emerging and developing oil importers, Lagarde called on them to take the opportunity of low oil prices to reduce energy subsidies and save resources to boost growth-enhancing investments, such as infrastructure, education or health.

The IMF chief also warned of the rising financial risks amid the environment of low or even negative interest rates caused by the accommodative monetary policies.

“If the low interest environment persists, it can create solvency challenges for life insurers and defined benefit pension funds,” she said. PNA/Xinhua

China . .

Continued from A1

The provinces whose poverty situation were classified severely poor included Bacolod-Kalawi, Lanao del Sur, where the poverty incidence rate stood at 84.8 percent and the highest nationwide.

Other municipalities so classified were Datu Saudi-Ampatuan, Maguindanao with a poverty incidence rate of 83 percent; Lumbayanague, Lanao del Sur, 81.9 percent; Piagapo, Lanao del Sur, 81.4 percent; and Talayan, Maguindanao, 80.3 percent.

“There has been much improvement in the poverty status of municipalities because those that were arbitrarily classified as moderately poor moved up to the least poor and the mildly poor. But there are straddlers or municipalities that seem to have difficulty and have now become severely poor, based on our classification. So if you look at it, there is [severe] income inequality because some posted lower poverty incidence and others posted improving poverty incidence,”Bersales said on Friday.

Based on the PSA’s estimates, the leastpoor municipalities and cities had a poverty incidence rate of a maximum of 20 percent; the mildly poor, 21 percent to 40 percent; the moderately poor, 41 percent to 60 percent; highly poor, 61 percent to 80 percent; and the severely poor, greater than 80 percent.

In 2012 the number of least-poor municipalities increased to 545, from 419 in 2009, and 357 in 2006. However,

Continued from A8

China doesn’t mean that they can just be elbowed aside.”

Sand wall

“China is creating a great wall of sand, with dredges and bulldozers,” Adm. Harris said in a speech in Canberra late last month. “China is building artificial land by pumping sand onto live coral reefs—some of them submerged— and paving over them with concrete.”

The construction work is China’s sovereign right, the country’s foreign ministry said on Thursday in a statement on its web site, citing spokeswoman Hua Chunying.

“It does not impact or target any country, and is, thus, beyond reproach,” Hua said. “The relevant construction, which is reasonable, justified and lawful, is well within China’s sovereignty.”

An Office of Naval Intelligence report on the capabilities of the People’s Liberation Army Navy released on Thursday said that China has never published the coordinates of its nine-dash line, or declared what rights it purports to enjoy in the area.

“Despite repeated calls to clarify its claims in the ninedash line, China has yet to offer a clear, legal rationale of this expansive claim,” it said. PNA/Xinhua

there was an increase in mildly poor municipalities to 635 in 2012, from 628 in 2009, although this was still below the 717 posted in 2006.

In terms of the moderately poor, the number declaimed to 349 in 2012, from 524 in 2009, and 484 in 2006. The highly poor municipalities, on the other hand, increased to 99 in 2012, from 63 in 2009, and 70 in 2006.

Meanwhile, data show that 30 of the 40 poorest municipalities are located in the Autonomous Region in Muslim Mindanao, particularly in 15 municipalities and cities each in Lanao del Sur and Maguindanao.

Other municipalities classified as poor were in Davao del Sur; Lanao del Norte; Misamis Occidental; Zamboanga del Norte; Northern Samar; and Abra.

“It is worth noting that small area estimates can greatly improve the targeting of interventions. In designing poverty-alleviation projects and allocating scarce resources, it is imperative that the neediest groups are targeted in an optimal manner. This reduces the leakage of transfer of payments to nonpoor areas, and avoids the risk that poor areas will be missed by a program,” Bersales said in her opening remarks.

Metro Manila’s ‘poor’

In the National Capital Region (NCR), or Metro Manila, the highest poverty incidence rate was 10 percent recorded in the Port Area in Manila. It was also the only place in the NCR that

posted a double-digit poverty incidence rate.

The other places included in the five poorest places in Metro Manila were Navotas, with a poverty incidence rate of 6 percent; Malabon, 3.8 percent; Tondo, 3.1 percent; and San Nicolas, 3 percent.

PSA data also show that the least poor, or the most well off among the poor in Metro Manila, were in San Juan, with a poverty incidence rate of only 0.3 percent. This was also the lowest poverty incidence rate recorded in the Philippines since the government started using the SAE technique.

Data show that Binondo was classified the least-poor locale in the Philippines in 2000 with a poverty incidence rate of 2.7 percent; 2003, 1.1 percent; and 2009, 1 percent. In 2012 Binondo’s poverty incidence rate stood at 1.5 percent.

Baguio was named the least-poor place in the Philippines in 2006, with a poverty incidence rate of just 1.2 percent. In the 2012 Baguio’s poverty incidence rate was at 0.9 percent, making it the least poor in the Cordillera Administrative Region.

After San Juan, the next least poor was Makati City, which has a poverty incidence rate of 0.5 percent, followed by Sampaloc with 0.8 percent.

Ermita and Paco in Manila followed with a poverty incidence rate of 0.9 percent. Rounding up the five least-poor places in Metro Manila is Parañaque, with a poverty incidence rate of 1.1 percent.

The 2012 municipal- and city-level pov-

liquidated damages due to delays.

In the case of the UH-1s, Rice and Eagle Copters have already exceeded the 10-percent liquidated damages, prompting the DND to issue the partial termination.

Galvez said this does not mean that the

contract will be rescinded automatically.

This partial termination only mandates Rice and Eagle Copters to issue, within seven days, an explanation for the delay.

This explanation will be evaluated by the CTRC. The committee decision will be

APRIL 11, 2015 | SATURDAY

TODAY’S WEATHER

EASTERLIES AFFECTING THE EASTERN SECTION OF LUZON AND VISAYAS (AS OF APRIL 10, 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.

LAOAG CITY 23 – 33°C

SBMA/CLARK 24 – 33°C TAGAYTAY CITY 21 – 30°C

APR 13 MONDAY

APR 14 TUESDAY

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

CAGAYAN DE ORO CITY 23 – 32°C

ZAMBOANGA CITY 24 – 33°C

APR 14 TUESDAY

25 – 32°C

25 – 33°C

25 – 33°C

25 – 33°C

TUGUEGARAO

23 – 33°C

24 – 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

24 – 33°C

24 – 34°C

BAGUIO

15 – 23°C

16 – 23°C

16 – 24°C

METRO DAVAO

SBMA/ CLARK

24 – 33°C

25 – 33°C

25 – 34°C

ZAMBOANGA

LEGAZPI

METRO CEBU 25 – 32°C

APR 13 MONDAY

25 – 33°C

TAGAYTAY

TACLOBAN CITY 24 – 30°C

APR 12 SUNDAY

24 – 33°C

22 – 30°C

22 – 31°C

25 – 31°C

25 – 32°C

SUNRISE

SUNSET

MOONSET

MOONRISE

5:45 AM

6:09 PM

10:53 AM

---

22 – 31°C

LEGAZPI CITY 25 – 32°C

ILOILO/ BACOLOD 24 – 31°C

3-DAY EXTENDED FORECAST

chase of the helicopters.

The seven Huey helicopters that were delivered cost the government around P53 million each. The P1.26-billion supply contract was awarded to the joint venture in December 2013. Cai U. Ordinario

METRO CEBU

TUGUEGARAO CITY 23 – 33°C

BAGUIO CITY 15 – 22°C

APR 12 SUNDAY

rendered next week and will set the course of how to proceed on the matter.

While it has yet to issue its decision on the partial termination, Galvez said the DND is looking at alternatives on how best it could proceed with the pur-

Continued from A1

METRO MANILA

LAOAG

PUERTO PRINCESA CITY 25 – 32°C

erty estimates are a set of estimates forming part of the output of the Project on the Generation of the 2012 Municipal and City Level Poverty Estimates implemented by the PSA but funded by the government of the Philippines.

These poverty estimates are based on the PSA's Family Income and Expenditure Survey (FIES) that is conducted every three years. The next FIES will be conducted this July 2015.

It is a follow-up study to earlier projects of the former National Statistical Coordination Board (now PSA-Makati), which included poverty mapping in the Philippines, funded through the World Bank-Asia Europe Meeting Trust Fund.

It also includes the Intercensal Updating of Small Area Poverty Estimates, through the World Bank Trust Fund for Statistical Capacity Building and the Project on the Generation of 2006 and 2009 Small Area Estimates of Poverty, with funding assistance from the World Bank, the Australian government, through the Australia-World Bank Philippines Development Trust Fund; and the national government.

The PSA said these projects resulted in the release of 2000, 2003, 2006 and 2009 poverty estimates for municipalities and cities using the SAE technique.

The 2012 SAE Project produces estimates for 1,646 municipalities and cities of which 123 are cities, and 14 are the districts of the city of Manila.

DND vows no letup in drive to boost PHL’s Air Force assets. . .

3-DAY EXTENDED FORECAST

METRO MANILA 24 – 33°C

news@businessmirror.com.ph

25 – 32°C

FULL MOON HALF MOON

SOUTH HARBOR

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

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 CELEBES SEA

10:38 PM

-0.06 METER

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

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

METRO DAVAO 25 – 34°C

LOW TIDEMANILA HIGH TIDE

@PanahonTV

1:49 PM

0.96 METER

The Nation BusinessMirror

news@businessmirror.com.ph

Editor: Dionisio L. Pelayo • Saturday, April 11, 2015 A3

‘US involvement in Mamasapano operation not violative of Charter’

J

By Joel R. San Juan

USTICE Secretary Leila de Lima on Friday defended the legality of the involvement of US forces in the January 25 operation of the National Police’s Special Action Force in Mamasapano, Maguindanao, to capture an international terrorist that resulted in the killing of 44 police commandos.

In an interview, de Lima noted that the involvement of the US forces was limited to intelligence sharing and medical assistance, which she said were within the parameters of the Constitution.

“Under our Consitution, the parameters are the following: establishment of military bases without concurrence of the Senate is not allowed, there is also a ban on the presence of nukes on Philippine soil, and also there is the general principle of nonintervention in the affairs of the State as a sovereign State,” de Lima explained.

“I do not see any constitutional or legal transgression from the established facts and even if there is information that there was presence of several personnel in the command post, per se, I dont see

any transgression,” she said.

She hinted that the involvement of US forces in the operation was part of the ongoing cooperation among countries to combat terrorism.

De Lima stressed that cooperation between sovereign states is necessary to neutralize threats of terrorism.

“Now, for as long as the Philippine government retains absolute control as to a specific operation, as to the what, who, when, how of the operation, there’s no transgression. I don’t see any transgression of the constitutional legal boundaries nung foreign involvement in the Philippine military and law-enforcement operations,” she added.

It can be recalled that the Senate joint committee report on

De Lima: “I do not see any constitutional or legal transgression from the established facts and even if there is information that there was presence of several personnel in the command post, per se, I dont see any transgression.”

the Mamasapano operation confirmed that the US was involved in the mission.

The report said the US provided training equipment and intelligence support for the operation to arrest terrorist Zulkifli Bin Hir, alias Marwan, and local terrorist Basit Usman.

However, Party-list Rep. Terry L. Ridon of Kabataan slammed de Lima for “serving as a mouthpiece of the United States.”

Ridon criticized de Lima for justifying US involvement in the Mamasapano operation.

De Lima explained that the Philippines retained “absolute control” over the whole operation, despite the presence of US agents during the operation.

She claimed that Philippine sovereignty was “not transgressed.”

“Secretary de Lima is serving as Washington’s mouthpiece. She is saying that there are not enough established facts to say that the Americans were actually involved in combat operations, which the

Constitution prohibits. However, let me remind the good secretary that the reason we don’t have enough details about the actual role of the US in the whole operation is that the Philippine government is refusing to fully cooperate in all of the investigations; up to the extent that it is even covering up vital details that various investigators in the Senate and in the House are asking for,” Ridon said.

“Secretary de Lima, there are clear signs that the Americans not only participated, but also headed, this operation. You’re saying that the fact that the government can easily cancel the operation is proof that sovereignty is intact.

Yet, here we have Oplan Exodus, a flawed operation plan that was still greenlighted. Why did President Aquino push through with this operation? There are clues that point to US influence in this decision,” he added.

“Washington’s involvement and consequent transgression of Philippine sovereignty through Oplan Exodus is a probability that several facts now support. Yet, here we have the secretary of justice rationalizing America’s every move,” Ridon lamented.

“By rabidly defending foreign intervention that possibly led to the death of our countrymen, you are acting like a traitorous apologist for the US, madame secretary.

And that’s a lot to say for the head of our nation’s justice department,” Ridon added.

DOH distributing contraceptives not approved by FDA–Atienza

By Claudeth Mocon-Ciriaco Correspondent

A

PARTY-LIST legislator assailed the Department of Health (DOH) on Friday for implementing the reproductive health (RH) law by allegedly using contraceptives that are not approved by the Food and Drug Administration (FDA).

“The Supreme Court decision on the RH law is very clear—any contraceptive to be used in its implementation should be FDAapproved. But the DOH is already implementing the program using a contraceptive patch called Implanon, which is not approved by the FDA. What’s worse is that this is being done as a prerequisite to the distribution of the Conditional Cash Transfer [CCT] program of the DSWD [Department of Social Welfare and Development],” Party-list Rep. Lito Atienza of Buhay said.

A prospective beneficiary is forced to have Implanon imbedded in her skin before she is enlisted in the CCT Program, Atienza said.

Implanon is described as a birthcontrol patch that is implanted in the inner biceps of women, effectively rendering them sterile for three years.

“The DOH should immediately stop using Implanon, unless the FDA certifies it as genuinely nonabortifacient and safe. This illegal practice should be stopped immediately. In other countries where this is being used, women undergo rigid tests before Implanon is given. I don’t believe this is being done here.

This exposes prospective recipients

Congressman tells Comelec to prepare for manual polls

A

MINORITY congressman urged the Commission on Elections (Comelec) on Friday to prepare for manual 2016 elections, in the event that the Smartmatic-TIM contract and other automation plans that are now stymied by legal problems could not be implemented.

“The simplest option for the Comelec is to prepare for manual elections, which would even cost less than the controversial Smartmatic-TIM contract,” Rep. Rodolfo Albano III of Isabela said.

Albano, a senior member of the Minority Bloc in the House of Representatives, said the poll body should also consider using a hybrid manual-computerized option, like the Transparent and Credible Election System (TCrES) being by former Elections Commissioner Gus Lagman.

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

Albano 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 manualcomputerized election system is one of many proposals submitted to the poll body by election watchdog groups, Albano said.

He added that the Comelec is duty-bound to carry out the 2016 elections as mandated by the Constitution and rejected the “no election” scenario peddled by some sectors.

“The no-election scenario peddled by certain sectors, including some so-called election experts, was alarmist hogwash whose only basis was the possible failure in implementing the election

automation law,” Albano said.

Albano said fears created by a no-election scenario cropped up because the Comelec’s controversial P269-million contract with SmartmaticTIM to refurbish 81,000 votecounting machines contract had been stymied by a temporary restraining order issued by the Supreme Court.

Should the Court junk with finality the Comelec’s contract with Smartmatic-TIM, the Comelec has no recourse but to conduct manual elections, Albano said.

He also said that the Constitution provides for the conduct of regular national and local elections—whether by manual or automatic counting. This is the basis why the 2016 national elections must be held, as it involves the right to suffrage of the Filipino people, he added.

Albano said failure to implement the Election Automation Law is the basis for the “no-el” 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 of the right to suffrage of the Filipino people and the conduct of regular elections to elect leaders,” Albano said.

“How could the Filipino electorate be deprived of their right to suffrage and disenfranchised because Smartmartic-TIM did not get a contract and because the automation law could not be implemented at all?” Albano asked. He added that there is no law barring the Comelec to revert to the manual system in the 2016 elections. Jovee Marie N. dela Cruz

to possible harmful effects on their health,” Atienza said.

He led a rally together with the Kababaihan ng Maynila women’s organization and other groups, like Alliance for the Families and Prolife Phils., Soldiers of Christ and Our Lady of Victories Parish Church volunteers and priests at the FDA office in Alabang, Muntinlupa City, to deliver a strong message for the FDA to do its job and protect the health and well-being of Filipino mothers.

They demanded from the FDA to respond to their letters sent as early as August 2014 on the issue of the DOH using uncertified and unapproved birth-control methods.

“The FDA should do its job and immediately act on this matter. Is Implanon approved by the FDA or not? Prolife Philippines had written the FDA in August of 2014 to inquire about the list of approved contraceptive drugs, but their letter has remained unanswered until now. In the meantime, this is being used on women in depressed communities in exchange for the CCT. This is tantamount to forced sterilization of Filipinos contrary to the SC [Supreme Court] ruling on how the RH law should be implemented,” Lito David of Prolife Phils. said.

“We have been proven correct in going against the RH law, as it will not solve the economic problems of poor families but will only destroy the proper valuing of human life.

The government should concentrate on programs that would promote development, provide employment and improve the lives of every Filipino,” Atienza said.

Legislator to Aquino: Counter China’s aggressive acts

By Marvyn N. Benaning Correspondent

P

Hail to the fallen heroes

Officials of the Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation, Employers Confederation of the Philippines and Erehwon Artworld Corp. lead the unveiling of the Bantayog Tagaligtas: Heroic 44 monument, which will serve as a perpetual testament to the heroism of the 44 Special Action Force commandos who were killed in an encounter with Moro gunmen in Maguindanao on the Philippine National Police Academy campus in Silang, Cavite. ROY DOMINGO

briefs

‘Bayanihan’ exercise successful

SAN FERNANDO, La Union—Joint forces of the National Police and the Army successfully completed a bayanihan team-activity training with a simple graduation ceremony and culmination program at the grandstand of Camp Brig, Gen Oscar M. Florendo, in this city on Wednesday.

Of the 103 personnel, who completed the special training, 65 are members of the Regional Public Safety Battalion 1 and 38 are soldiers of the 81st Infantry Battalion.

As part of the peace development initiatives of the National Police and the Army, Chief Supt. Roman Felix, in his capacity as the police regional commander, said the joint training is in support of the Internal Peace and Security Plan of the Armed Forces, which is expected to sustain peace, security and stability in local communities.

In his message, Maj. Gen. Glorioso V. Miranda, 7th Infantry “Kaugnay” Division commander, who served as guest of honor and speaker, underscored the importance of collaboration of both the police and the Army to ensure proper response and successful operations. He also emphasized the significant participation of the local government units as prime movers of internal peace and security.

Pineda urged to run for higher post CLARK FREE PORT—The Central Luzon Federation of Senior Citizens Association wants Pampanga Gov. Lilia Pineda either to join the senatorial race or run for other higher post in the 2016 elections.

Ret. Judge Ricardo Agapito, president of the regional federation, told the officers senior citizens in Central Luzon during the first Regional Senior Citizens’ Congress at Oxford Hotel in this free port zone to unite and give their full support in rallying behind the lady governor whatever higher position she would want to run in 2016.

The retired judge is confident that Pineda and Zambales Gov. Hermogenes Ebdane are the ideal leaders, who could highly represent Central Luzon in the national elections.

Agapito said Pineda has a big heart not just for the less fortunate, but also for the elderlies not only in Pampanga, in Central Luzon, but in the entire country.

“Governor Pineda is a model governor who loves the marginalized and the elderlies and one good example is that she gives importance to senior citizens’ remaining years and days of their lives through giving health benefits and services for more than what they expect,” he said. Joel Mapiles

ARTY-LIST Rep. Neri J. Colmenares of Bayan Muna has denounced China’s reclamation of at least 62 hectares at the Mischief Reef, and asked President Aquino to be more forceful in countering such an aggressive act.

Colmenares issued the statement, as new satellite images revealed the extent of Chinese reclamation on the Panganiban Reef, also known as the Mischief Reef, which is within the exclusive economic zone of the Philippines.

It is also located in a disputed area of the West Philippine Sea. “All Filipinos should denounce this unjust and dangerous action to implement China’s expansionist policy based on its 9-dash line theory, which is without legal, historical and moral basis. We should defend our territory and exclusive economic zones, and President Aquino should fortify our positions in the area to counter China’s aggressive acts,” Colmenares said.

Bayan Muna has demanded that China stop insisting on its theory that the map prepared by the Kuomintang government in 1947 legitimizes its claim to 80 percent of the WPS. Activists also slammed China for using the much-maligned map as a historical basis for its claim, noting that it smacks of the Han chauvinism denounced by Chairman Mao Zedong of the Communist Party of China (CPC), who vowed never to allow China to stake claims in traditional fishing areas that it shared with the peoples of Southeast Asia.

Mao claimed in his speech entitled “Ten Major Relations” in 1956 that Han ethnocentrism should be opposed, saying, “Dan Hanzu zhuyi” was promoted by the Kuomintang to the detriment of 10 percent of the Chinese people who belong to minority groups.

“We are calling on the international community to help assert our sovereignty against foreign intervention.

Economy

A4 Saturday, April 11, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

Bacman geothermal plant Unit 3 now onstream after repair–EDC

T

By Lenie Lectura

he Lopez-led Energy Development Corp. (EDC) on Friday said the repair of Unit 3 of the Bacman geothermal power plant has been completed.

EDC unit Bacman Geothermal Inc., which owns and operates the Bacman power facility, is already operating Unit 3 at 20 megawatts (MW) gross as of Wednesday following the completion of repair works.

The Bacman geothermal power plants in Bacon, Sorsogon and Manito, Albay, run at 130 MW, consisting of Unit 1 (55 MW), Unit 2 (60 MW) and Unit 3 (20 MW).

Unit 1 is now operating at its 55-MW rated capacity after it has completed the installation of a brand-new steam turbine. Last December EDC has placed Unit 1 on a 45-day planned outage to give way for the installation of a so-called permanent fix. The need to install a new turbine was necessary after the facility was damaged in 2013.

EDC also earlier reported that Unit 2 has put in an additional 5 MW of generating capacity. Unit 2 now operates at 60 MW. The increased capacity was a direct result of an upgraded Toshiba turbine design.

EDC remains the country’s leading producer of geothermal energy accounting for 62 percent of the country’s total installed geothermal capacity.

It acquired Bacman from the government auction block in 2010 for P1.28 billion.

briefs

ANGARA EYES SOLAR PANELS FOR PUBLIC SCHOOLS IN FAR-FLUNG AREAS

Sen. Juan Edgardo “Sonny” Angara has filed a bill mandating the government to install solar panels in public elementary and high-school buildings in the country’s farflung areas.

Under his Senate Bill 2597, Angara proposed that the Department of Education (DepEd), in cooperation with the Department of Energy and the Department of Science and Technology, should ensure that solar panels with a capacity of at least 200 watts will be installed to publicschool buildings where electrical line installation is not available. ”There are still public schools in remote areas of the country that are without electricity. We still have public-school students who are not yet enjoying the convenience and benefits of having bright-lit classrooms and computers as tools for learning,” Angara said.

Angara said the government must address the gap in promoting better learning and comprehension skills of the schoolchildren especially in far-flung areas.

The proposed bill of Angara is a counterpart of House Bill 4715 filed

by A Teacher Party-list Rep. Julieta Cortuna at the House of Representatives. PNA

CEBU LOCAL TOURISM PROGRAM TO BRING TOURISTS TO CAMOTES from MAY 1 to 3 Albay Gov. Joey Salceda, chairman of the Bicol Regional Development Council and the Luzon Area Development Council, discusses the P107-billion South Railway project cost analysis in a meeting last September with representatives of the National Economic and Development Authority, the Department of Transportation and Communications and the Public-Private Partnership Center.

Albay gets boost from Ayala Corp.’s interest in Bicol railway project

L

EGAZPI CITY—Albay, together with the whole Bicol region, gets a big boost from Ayala Corp.’s expressed interest in the P170.7-billion Philippine Railways South Line project, which would cut travel time from Manila to this city by five to six hours, and pave the way for more investments into the area.

The proposed 653-kilometer South Railways project was approved by the National Economic and Development Authority (Neda) Board, chaired by President Aquino, on February 16 this year under the public-private partnership (PPP) scheme.

Albay Gov. Joey Salceda, who chairs the Bicol Regional Development Council, said the South Railways project is among the most monumental development projects of the Aquino administration and is seen to unlock the huge potential of Bicol, particularly that of Albay, the regional center and hub.

Philippine conglomerate Ayala Corp.’s infrastructure unit recently said it intends to bid for the P170.7-billion government railway project and has started talks with potential partners.

A report said AC Infrastructure Holdings Corp. has not identified its potential partners and the government has yet to set a specific date for the tender, which it said would likely be within the year.

Salceda, who also chairs the Luzon Area Development Coordinating Council, has been “working relentlessly with the PPP Center, Department of Transportation and Communications, the Neda and Philippine National Railways to ensure the South Railways Project will be prioritized.”

The South Railways line will compliment the Bicol International Airport (BIA) in Daraga town,

which is targeted to be completed and operationalized in two years’ time. The BIA and South Railways transport is a package that should attract a deluge of private investment into Albay, and the whole of the Bicol region, Salceda said.

“By this, our ‘Albay Boom’ economic battle cry will surely now be realized,” he added. The South Railways line is a component of the North-South Railway master plan; the North-South Commuter Railway project, estimated at P117.3 billion; and the P170-billion North-South Railway Project.

“To us, it is the most interesting one out of those big-ticket projects. If and when that is bidded out, it is something that we would like to take a serious look at,” AC Infrastructure President John Eric Francia said in a recent news conference.

The project involves rehabilitating the old railway line between Manila and Albay, and adding new lines in between and to other adjacent areas.

The Philippines, Asia’s second fastest-growing nation, has so far awarded nine projects worth P130 billion since it launched the PPP scheme in 2010.

Salceda said the construction of the South Railways line has long been awaited in Luzon, and is expected to further boost economic development of the Bicol region, Albay most particularly, which has a lot of potential to offer.

He said he had repeatedly “reiterated his position that the Manila-Bicol railway is critical to development as it promotes rural tourism, empowers Bicol labor to compete in the labor markets of Metro Manila and elsewhere in Luzon, and provides a multimodal transport means for bringing agricultural products and manufactured goods of Bicol to the rest of Luzon.” PNA

CEBU CITY—“Suroy-Suroy Sugbo” (Tour Cebu) 2015, the Cebu provincial government’s local tourism program, will bring local and foreign tourists a summer getaway in Cebu’s pristine beaches on Camotes Islands from May 1 to 3.

The Cebu provincial government has started accepting bookings and reservations for those interested to join the three-day caravan.

The province’s tourism junket will head to the major tourist spots on Camotes Islands.

The first day will kick off at Boho Rock, in Poro town, which is famous for cliff-jumping activity.

A white-themed party at Santiago Bay will cap the first day of the tour.

Other destinations of the caravan will be Bukilat Cave in Tudela, Lake Danao and Mangodlong Rock Resort in San Francisco. Participants will be billeted in different resorts on Camotes Island.

Grace Paulino, Cebu provincial tourism officer, said participants will be given more time to experience the fun in each destination.

The Suroy-Suroy Sugbo on Camotes Islands can only accommodate a maximum of 200 guests, while the package rates range from P5,600 to P11,000 each. PNA

DILG TURNS OVER GPS FISH FINDERS TO DAGUPAN FISHERFOLK Interior and Local Government Secretary Manuel “Mar” Roxas II handed over brand new fish nets and Global Positioning System (GPS)-powered Fish Finders to the fishermen of Dagupan City on Friday to increase their catch, cut costs and drive up their incomes.

The nets and GPS Fish Finders— electronic devices to detect the presence of fish in the bottom of the sea, were funded by the Bottom-Up-Budgeting (BUB) program of the government that empowers local communities to determine their own needs in terms of essential support services.

The BUB also enables grassroots communities to create their own sustainable development plans through a participatory and demand-driven budget process. Roxas joined 400 beneficiaries of the BUB funded GPS Fish Finders and nets.

Roxas, in partnership with the Department of Agriculture – Bureau of Fisheries and Aquatic Resources (DABFAR) also awarded a motorized boat to another BUB beneficiary, in addition to the previous 19 motorized boats. PNA

Economy BusinessMirror

news@businessmirror.com.ph

briefs PHL BIZMEN PUSHES FOR STRONGER TRADE WITH HO CHI MINH CITY HO CHI MIHN CITY—A group of Filipino businessmen are on the hunt for trade deals and opportunities with Vietnamese partners in the field of food processing, cosmetics, hotels and construction industries.

Sanchez Dannilo, vice president of the Philippine Chamber of Commerce and Industry-National Capital Region, said a Filipino business delegation recently held a meeting with Vietnamese firms in Ho Chi Minh City on Thursday.

Nguyen The Hung, deputy director of the Vietnam Chamber of Commerce and Industry Ho Chi Minh City branch, briefed the Philippine delegation on the city’s policies for attracting foreign investment and enlarging importexport activities. He also highlighted that two sides have opportunities to bolster their cooperation in food, farm produce, fertilizer and education.

Vietnam has enjoyed a trade surplus with the Philippines since 2008. Major exports include rice, consumer goods, food products and seafood. Fertilizers and electronic equipment are the primary imports from the Philippines.

Trade in 2014 was $2.8 billion, which they are working to lift to $3 billion this year. PNA/VNS

DOTC opens prequalification bidding for P17-B Sasa Wharf project in Davao

T

By Lorenz S. Marasigan

he modernization of the Davao Sasa Wharf, the busiest seaport in Mindanao, is now a step closer to implementation.

This development surfaced after the Department of Transportation and Communications (DOTC) published the initial terms of the P17billion deal to design, redevelop, operate and maintain the said port on Friday.

Based on the contract’s invitation to prequalify to bid, the deal involves the “modernization of the existing port and the establishment of dedicated container-handling facilities with an initial design capacity of 1,900 container ground slots to a minimum of 2,7000 container ground slots, comprising of the

construction of a new apron, development of a linear quay, expansion of the backup area, provision of container yards, warehouses and the installation of appropriate container-handling equipment throughout a 30-year concession period.”

It will be implemented under a two-stage bidding, which essentially calls for the prequalification of interested parties before the actual auction takes place. The parties whose qualification documents passed the evaluation will be allowed submit their technical and financial

MMDA LAUNCHES TRAINING SCHOOL FOR TRAFFIC ENFORCERS ON MONDAY AS part of the agency’s “all-out effort” to enforce traffic rules and restore order on the road, the Metropolitan Manila Development Authority (MMDA) will launch on Monday the Institute of Traffic Management (ITM) which shall be “the premier educational institution for training and continuing education of all traffic-management personnel, traffic-law enforcers and trafficaccident investigators of both local and national government agencies.”

MMDA Chairman Francis N. Tolentino noted that the streets of Metro Manila have come to symbolize the horrors of congested roads, traffic moving at a snail’s pace or even stops at a long standstill, especially along Edsa and other major thoroughfares where there are undisciplined public-utility vehicles and private car drivers blatantly disregarding traffic signs and lights.

Some drivers are so brazen in violating traffic laws that traffic has become a social malaise affecting our people’s productivity and the efficient delivery of goods and services in the country, Tolentino said.

The ITM shall have the authority to grant degrees and issue certificates of training competency to government and non-government personnel involved in traffic management, traffic-law enforcement and traffic-accident investigations and have successfully completed training programs and courses.

It also intends, among other things, to exact compliance among motorists through the establishment of a more efficient and effective trafficenforcement systems and agencies link-up while improving the integrity of MMDA and local traffic enforcers.

Claudeth Mocon-Ciriaco

DTI’s diskwento caravan goes to nueva ecija town CABANATUAN CITY—The Department of Trade and Industry (DTI)-Nueva Ecija Provincial Office, in cooperation with the local government unit of Carranglan, will hold a Diskwento Caravan at Pag-asa Gym, Carranglan town on April 16 and 17.

Brigida Pili, DTI provincial director, on Friday said the two-day activity, a bazaar or flea-type market, aims to improve consumers’ access to basic and prime commodities through the mobilization of manufacturers/retailers selling basic food and nonfood consumer items at a considerable discount, usually at 10 percent to 50 percent.

Pili also said it provides manufacturers the opportunity to exercise their corporate social responsibility and return the goodwill to the consuming public.

She said that at least 17 companies are expected to participate and offer consumer products such as rice, sugar, cooking oil and dairy produced, processed foods like canned goods, hotdogs, chips and pastries can also be bought at cheaper prices. PNA

Saturday, April 11, 2015 A5

proposals and vie for the project.

Currently, the Davao Sasa Wharf has a total area of 18.1 hectares with a quay length of 1,093 meters and a berth dept of -11 meters. The 4.15-hectare container yard size houses 864 ground slots.

It has a reefer yard of 0.2 hectares and the largest vessel accommodated at the port has a capacity of 800 twenty-foot equivalent units (TEUs). It has an annual capacity of 550,000 TEUs. Davao City serves as the main trade, commerce and industry center of Mindanao and is known to be one of the fastest-growing cities in the Philippines.

Earlier, the International Container Terminal Services Inc. and Asian Terminals Inc. expressed their interest to bid for the multibillionpeso contract. Davao Integrated Port Stevedoring Service Corp., a unit of ICTSI, is the lone cargo handler at Davao port.

The government has awarded

nine contracts since the infrastructure program’s inception in 2010, namely: n the P1.96-billion Daang HariSouth Luzon Expressway project bagged by Ayala Corp. in 2011; n the P16.42-billion first phase of the Public-Private Partnership (PPP) School Infrastructure Program (PSIP), which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc., as well as the BF Corp.-Riverbanks Development Corp. consortium; n the P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013; n the P3.86-billion PSIP Phase II contract, partially awarded in 2013 to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construction consortium; n the P5.69-billion Modernization of the Philippine Orthopedic Center project that went to the

Megawide-World Citi Inc. consortium also in 2013; n the P1.72-billion Automatic Fare Collection System contract awarded to the AF Consortium of Ayala and Metro Pacific Investments Corp. (MPIC) in 2014; n the P17.5-billion Mactan Cebu International Airport New Passenger Terminal project bagged in 2014

by Megawide Construction Corp. and GMR Infrastructures Ltd.; n the P64.9-billion Light Rail Transit Line 1 Cavite Extension deal, awarded in 2014 to Light Rail Manila Consortium of Ayala and MPIC; and n the P2.5-billion Integrated Transport System Southwest Terminal, won by Megawide and partner Walter Mart Property Management Inc. of billionaire and retail magnate Henry Sy in January.

The state intends to plug the gap in the country’s transportation facility in the next decade by rolling out massive infrastructure projects that are seen to spur economic growth.

EU extends P13.9-million help to Maguindanao war evacuees

By Recto Mercene

T

he European Union (EU) has provided P13.9 million to fund emergency humanitarian assistance to Maguindanao residents who were displaced from their homes following a recent escalation of violence there.

The money will enable the provision of lifesaving relief items to the most vulnerable and support the management and provision of services at evacuation and displacement sites.

The two-month emergency project will specifically focus on the most vulnerable families. It will help ensure that they have access to safe and dignified shelters, water and sanitation facilities, as well as lifesaving nonfood items, such as blankets, sleeping mats and hygiene kits.

Psychosocial support will also be provided, allowing the displaced persons to exchange with others about their traumatic experience and receive information on potential further specialized support.

Moreover, the EU is continuing its assistance to the families displaced by the fighting that took place in

‘Halo-halo’ summer treat For P20 a glassful, passersby and pedestrians

can buy themselves a refreshingly delectable halo-halo treat in Tenejeros, Malabon. Halo-halo, translated literally in English as mix-mix, is a combination of fine-shaved ice, boiled and sweetened fruits of summer like beans, jackfruit, sweet potato, etc. served with a splash of evaporated milk.

Kevin De la Cruz

Philex lists 6 potential mining sites in Benguet

B

AGUIO CITY—Philex Mining Corp. has identified six more barangays in the municipality of Tuba in Benguet that may have additional minerals to mine.

In an interview on Friday, Philex Mines Geological Division head Engr.

Felix Cuyos identified the barangays as Tapsan, Santa Fe, Allapang, Camp 1, Ansagan and Camp 3.

Cuyos said residents of these areas have been consulted and drafts of the memorandum of agreement have already been distributed to the affected communities for review.

An additional 110.9 million tons of minerals were discovered between 800 meter levels (ML) and 600 ML which is about .473 million pounds of copper and 1.342 million ounces of gold, Cuyos said.

Cuyos, quoting Philex Mines

President Eulalio Austin Jr., said the company is looking forward to the next two years of exploration within Padcal which may include identification of additional resources which may result to the increase of the company’s mineral inventory.

Philex Mines Corp. announced a net income of P703 million in 2014 from P312 million in 2013 despite the lower ore grade recovery and the low selling price of metal in the market.

The mining firm also reported an increase in total revenues of P10.90 billion in 2014 compared to P9.8 billion in 2013.

Cuyos said the 23-percent increase in production is attributed to the full-year operation of Padcal Mines compared to the 10-month operation of the mines in 2013. PNA

Zamboanga in 2013, by providing a separate P13.7-million fund on top of the assistance provided in 2013.

A year-and-a-half after the displacement took place, some 20,000 residents remain in evacuation and transitional sites, living under very difficult conditions. The EU-funded aid will also focus on the most vulnerable individuals, providing them with food, protection, livelihood support and health services until the authorities can provide a more permanent solution for the displaced.

In both cases, the assistance is being made available through the European Commission’s Humanitarian Aid and Civil Protection Department (Echo) through its Small-Scale Response Mechanism.

The first project in Maguindanao will be implemented by a consortium composed of the International Organization for Migration and Plan International—two humanitarian actors which have a long-established presence in the Philippines.

The operation in Zamboanga will be implemented by another consortium comprising non-governmental

organization Action Contre la Faim and Plan International—both already operational in the area from previous Echo funding.

The armed conflict in Central Mindanao, southern Philippines, intensified in February 2015, when fighting erupted between the Moro Islamic Liberation Front and the Bangsamoro Islamic Freedom Fighters (BIFF) in the towns of Pagalungan and Pikit. The clashes further escalated when the Armed Forces of the Philippines launched an “all-out offensive” against the BIFF troops.

The fighting resulted in the displacement of over 120,000 people in the provinces of Maguindanao.

In September 2013 a faction of the Moro National Liberation Front seized hostages in Zamboanga, leading to an intervention by the military.

The ensuing clashes lasted for more than two weeks and left some 45 dead and over 100, 000 people displaced in Zamboanga City.

Echo’s Small-Scale Response fund is a global mechanism that allows for rapid funding of up to P13.9 million for humanitarian aid in countries affected by natural and manmade disasters.

Banks shy away from BSP’s PRF in Q1

By Bianca Cuaresma

L

ocal smaller banks continue to detach themselves from the Bangko Sentral ng Pilipinas’s (BSP) rediscounting facility in the end of the first quarter this year, the central bank reported on Friday.

The BSP said that under the Peso Rediscount Facility, the total availments of thrift and rural banks amounted to P75 million for the January to March period this year.

This is 81.8 percent lower than the P412 million total availments for the same period last year.

Meanwhile, there were no availments from universal and commercial banks during the period.

The peso-rediscounting window is facilitated by the BSP to assist banks in their liquidity needs.

This is done by allowing qualified banks to get loans or advances from the BSP using eligible papers of its borrowers as collaterals.

Lower volume of availments from banks usually show that banks do not need liquidity assistance as they have enough to spend for their operations.

Out of the aggregate availments for the period, 70.6 percent went to commercial credits, 5.2 percent to

production credits and 24.2 percent to other credits consisting 12.5 percent to housing, 7.6 percent to capital expenditures and 4.1 percent to permanent working capital.

Meanwhile, under the exporters dollar and yen rediscount facility, or EDYRF, the total availments in the first quarter of this year amounted

Ice-drop man

to $400,000 and benefited one exporter. This is a 78.9-percent decrease in availments compared to the $1.9-million grants in the same three-month period last year.

There was no yen-denominated availment under the EDYRF for the period this year, same in the threemonth period last year.

An itinerant vendor lugging a Styrofoam box loaded with homemade ice drop and a small bell peddles his refreshing merchandise along a sidewalk in Parañaque City amid the blistering summer heat. Alysa Salen

A6 Saturday, April 11, 2015

Opinion BusinessMirror

editorial

Breaking the cycle of poverty: Taking the next step

D

ESPITE the Philippines’s continued economic growth, the large gap between the “haves” and the “have-nots” still remains a great challenge to our leadership, and is usually the centerpiece of every aspiring political leader’s platform.

The Aquino administration’s main strategy in poverty reduction is the Pantawid Pamilyang Pilipino Program, or 4Ps. Patterned after the successful Bolsa Familia Program of Brazil, it is the Conditional CashTransfer (CCT) Program of the Department of Social Welfare and Development (DSWD).

The CCT program provides immediate cash assistance to extremely poor families for their daily needs.

However, the conditions are that these families send their children to school, bring them to health centers for regular checkups and attend family-development sessions. These are the goals to help uplift those families from perpetual poverty.

The program has been criticized for being used as a tool to garner support for political leaders and for being a dole-out program, where supposedly unproductive citizens leech benefits from taxpayers. But the program has some laudable accomplishments in achieving the goal of helping to reduce poverty. One such achievement is the graduation of the program’s student-beneficiaries from high school.

To celebrate this accomplishment, the DSWD held a postgraduation celebration for the first batch of high-school graduates from families enrolled under the 4Ps Program. The event, dubbed as Pagtatapos Nyo, Tagumpay ng Pilipino, was held at the Philippine International Convention Center.

The event is split into two celebration dates, as the first batch, which will be attended by 4,000 students from Metro Manila, was celebrated on April 9, while the second batch of around 14,000 students will celebrate on April 23 at the Araneta Coliseum.

A total of 333,673 student-beneficiaries from all over the country have graduated from high school this commencement year. Of the total number, 153,470 are from Luzon, while 74,182 are from the Visayas and the remaining 21, 844 are from Mindanao.

The main goal of celebrating the event is to recognize the efforts of the student-beneficiaries in achieving an important milestone in their lives. Exemplary graduates will share inspiring experiences to motivate fellow beneficiaries to value education.

Aside from celebrating an important milestone in the lives of the students, the events will also serve as a venue where students will be linked to better opportunities after high school through being provided access to higher education and technical courses.

Representatives of partner government agencies and the private and business sectors will be present during the programs to provide scholarships, internships and part-time jobs that will help the graduates to move up in life and increase their employment opportunities.

While providing short-term relief to the poorest of the poor is necessary to ensure they survive, we should also take the next step in the battle against poverty through breaking the cycle. That is best done initially through better educational opportunities. The 4Ps is proving its ability to do that.

Congratulations, graduates. More power, and keep up the good work. We are proud of you.

Is the majority going to be wrong again?

John Mangun

W

OUTSIDE THE BOX

E visited the City of Dreams resort and casino complex for the first time the other day. While not yet completed and fully occupied, it is a beautiful place and the noodle restaurant was superb and inexpensive. I played poker for a while, which is my only break from the markets, except for the occasional movie.

I must admit, though, I much prefer Resorts World Manila. The adjacent Newport Mall makes it, in my opinion, more “Filipino.” I like having McDonald’s fast food within walking distance of the gaming tables. Then again, Dream’s Robert DeNiro and Leonardo DiCaprio probably never eat there, so they would not understand.

Having been analyzing the financial markets and observing the global economy for most of the last 40 years, I actually hope reincarnation is true. Given a second chance, spending my life making weird artwork from driftwood found on the back side of Boracay Island sounds a lot better. The only attraction to this financial world is that every day seems stranger than the wall hangings I might have turned out.

Here is an example. Switzerland is the first country to issue 10-year

government bonds with a negative yield. You pay the Swiss government 0.055 percent each year to borrow your money. When the bond matures in 2025, you will have lost about $500 if you bought $10,000 of those bonds. If you would like better terms, you can loan your money to me for free.

You would only buy the Swiss bonds believing that there will be a 10-year period of deflation, where money will continue to become more valuable in relation to the price of goods and services. Of course, that would also mean that governments would stop borrowing and reduce their existing debt load in a way that would avoid a total collapse of the global banking system and economy.

Good luck with that assumption coming true.

Here is another example. Mexico has issued a first-ever 100-year

bond denominated in euros. It pays 4.2 percent. To buy this, Mexican government bond assumes that the deflation the Swiss bond buyers are hoping for is not going to happen. The 4.2-percent interest rate is reasonable, because that is slightly higher than historic inflation. But it also assumes there will be a euro currency in 100 years. If, for some reason, the euro is disbanded as a global currency, Mexico might pay you back in US dollars, or Mexican pesos, or maybe even seashells.

Perhaps, the most bizarre situation happening now is that, amid all the efforts of global governments and central banks to increase economic growth and avoid a potential disaster, it is impossible to find anyone that is optimistic.

Certainly, there are the paid hacks in the financial media that will say “Keep calm; all is well.” Self-serving analysts trying to protect their trading positions at the international banks will say that golden times are just around the corner. Governments, central banks and their apologists, like economist Paul Krugman, trying to save their political future, will do anything with data to show the economies are just fine.

But virtually everyone else in the field is forecasting financial Armageddon in the future. It does not matter what their economic “ideology” is, whether “bubblers,” hyperinflationists, or deflationists. The only difference actually comes down

The pizza-shop lesson about freedom

I

By Jay Ambrose | Tribune News Service

SN’T it interesting how, in today’s America, some of the most outspoken critics of bigotry turn out themselves to be manifestly intolerant and determined to visit cruelty on others because they harbor different opinions?

These inquisitors often parade their outrage as a morally superior defense of rights, and it’s sometimes surely the case that iniquities they themselves experienced or witnessed reside at the heart of their fury.

But that’s no excuse for some of what transpired during a fierce, bullying attack on a new Indiana law that aimed to protect crucial liberties. Particularly objectionable —and a notable object lesson—was the threat to the very existence of an Indiana business because of nothing more than an owner voicing her religious scruples.

The law in question, Indiana’s Religious Freedom Restoration Act, is basically the same as a federal law around since 1993 and 19 other state laws. It says that, when the government is faced with a conflict between freedom of religion and another pub-

lic value, it should dent that freedom to the least extent necessary and then only if the other value is of compelling state interest.

That was enough to send some into a frenzy of error-plagued screeching that the law fostered antigay apartheid. It didn’t. Guess whatever you want about the motives of the legislators, but nothing in this law permitted discrimination against someone because the person is gay. It is not even clear that the original law would have allowed the much-discussed possibility of a bakery refusing to cater a gay marriage.

A legislative rewrite enacted under media duress does make it clearer that the cake must be baked.

Is that OK? Does a baker or anyone else have no right to worry about the fundamental redefining of an ages-old institution, to believe

something sacred is being violated and that any means of abetting the change would be a violation of his deepest convictions?

True, something like that would be a minority view these days, and even many churchgoing Christians would disagree. A number of emotionally persuasive, reasonablesounding gay activists and others have clearly convinced a majority of Americans that gay marriage is fair marriage. It now seems likely to become a nationwide reality.

But, as some of those activists concur, it hardly follows that those still objecting as a matter of sincere moral belief should be compelled through the risk of onerous fines to participate in the institutional transformation. Should the owners of a bakery committed to gay marriage be compelled to supply a cake for a group of citizens rallying against gay marriage? No. That would be equally wrong.

Allowing choice in such cases is not the same as allowing oppression.

What would be mostly at stake for the cake-deprived gay couple is the inconvenience of having to find a

to where, when and how. I cannot find a good example of a clear-thinking observer, without a concealed financial purpose, that will say, “The situation will improve, and it will all work out well.”

This may be the first time since Adam and Eve walked out of the Garden of Eden that everyone appears to be on the same side of the forecast and opinion.

People are virtually never completely in agreement and, when it has happened, they have been wrong.

Concerns about the potential of the Great Depression of the 1930s were almost nonexistent. Certainly, there were a few, but the overwhelming consensus was that the good times would continue. Now it is the opposite— nearly universal gloom-and-doom.

Here is a safety tip. If all the passengers move to one side of the boat, you should go to the other side. The boat will always tip and capsize over to the side where all the passengers are standing.

The next 12 months are going to be even more interesting than the last year has been, as we discover if the majority thinking is going to be wrong or right.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

willing bakery from a vast majority hardly proclaiming their abhorrence of making money that way. Compare that to the mighty slam at Memories Pizza in Walkerton, Indiana.

A TV reporter doing a story on the Indiana law asked an owner if she would sell pizzas for a gay wedding and she said no, describing the establishment as Christian. Then came the terror hounds with their snarling threats of death, of arson, of destroying the business, all of it sufficient for the owners to figure the shop’s days were done and that theirs might be, too, if they did not stay out of sight.

Ah, but some worthy souls then quickly raised a Memories Pizza gift of more than $840,000 using an Internet web site appealing to contributors who clearly subscribe to something vital to our American future. It’s basically the idea that it is not permissible to try to ruin lives because of someone saying something you do not like, that hate is vile whichever direction it comes from, that argumentation is one thing and cowing others something else, that freedom and kindness matter.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Saturday, April 11, 2015

A7

Dealing with difficult people Message of his Holiness Pope Francis for Lent 2015 and difficult situations Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

Cecilio T. Arillo

database

Where is your brother?

Part 2

Governments are different

G

OVERNMENTS also enjoy sovereign immunity, which means that they cannot be sued in a court of law.

In a commercial deal, government departments or state corporations may also try to claim immunity from lawsuits. The laws of many countries take the position that a foreign government may not claim immunity for “commercial acts.”

To avoid any doubt on this question, a government or state agency should specifically agree in the contract to waive or give up its sovereign immunity should a dispute arise in connection with the agreement. Courts throughout the world recognize and enforce this explicit waiver.

Since government entities in business are usually subsidized by the state treasury, their principal goal may not be the maximization of profit, but social and economic ends.

For example, if a manufacturing joint venture between a US company and a foreign state-owned corporation were to face a decline in demand for its products, the reaction of the US partner might be to lay off workers. However, the state corporation, despite reduced profitability, might reject the solution to prevent an increase in unemployment in the country.

Legal jargons at the table

MUCH of the talk at the negotiating table involves legal words and ideas, even if no lawyers are present.

Words like “property,” “company,” “contract” and “debt,” to name just a few, are basic to a negotiator’s vocabulary. They are legal concepts that have meaning for a business executive by reference to a particular legal system. Different legal systems may define these words in different ways.

Bear in mind that the very notion of “law” may have different meanings in different countries beyond the question of vocabulary and techniques. In many parts of the world, unwritten tribal, religious or ethnic customs have the force of law. They, therefore, can have a direct impact on a deal you are trying to negotiate.

To penetrate what we call “black box” of foreign laws and politics, a negotiator should follow basic rules.

1. Never assume that the other side’s system work exactly the way your system does.

2. Do not take for granted that the words and concepts you use have exact equivalents for the other side, and do not assume that the words and concepts of the other side are compatible with yours.

3. To clarify legal meaning during discussion, seek to define terms and, above all, give examples of how they apply in practice.

4. For any sizable deal, obtain the help of an expert on local law.

How legal advice works

IN most cases, you will need help ordinarily in the person of a lawyer or a legal adviser in the country where you are trying to do business to penetrate the foreign laws.

The best source of guidance is a person who knows a foreign lawyer and has had an opportunity to observe that lawyer’s work. Local business persons, banks, foreign lawyers in neighboring countries and US law firms with foreign offices may also provide you with useful information.

In countries where relatively few lawyers handle virtually all foreign business, possibilities for conflicts of interest are rife, and local lawyers sometimes are not sufficiently sensitive to that issue.

Part 2

The challenge of foreign laws and politics The challenge of foreign laws and politics for a Philippine negotiator is not only to understand them but also to operate simultaneously within two or more legal and political systems. By engaging in international business, a company enters into an arena of intense legal and political pluralism.

The practice of global negotiation is always of complying with or avoiding a multiplicity of different countries’ laws, rules, policies and of weaving between over-lapping legislation and political decisions made by several governments. The problem of the legal and political squeeze is always on the minds of international negotiators.

Approaches to pluralism

NEGOTIATORS must use a variety of techniques to cope with legal pluralism. One technique is to agree on one set of laws to govern a deal.

In that light, virtually all international business contracts contain a clause stating that the law of a particular country, to the exclusion of all other laws, will apply to a transaction and to disputes that may arise between the parties.

Without any specific choice of law to govern a contract, a court would usually apply the law of the country judged to have the “most significant relationship” to the deal, a concept that may lead to a variety of results.

For a negotiator, the final and, perhaps, ultimate challenge posed by the law and politics of another country is that, at some point, their company may be unfairly treated because it is foreign. This is the problem of hometown justice. Negotiators may face hometown justice either before or after the deal is made.

When it’s over

NEGOTIATIONS are usually done with high hopes and champagne toast. Having signed a contract, the parties to the transactions look to the future with great expectations.

Yet, there is always the risk that sometimes after you sign the documents and given the project, the local government will intervene to change the deal, usually in its favor.

In making any deal, a negotiator must identify the political risks and then try to structure the transaction to minimize them. As part of a foreign investment project, an investor might obtain political risk insurance against nationalization, inconvertible to local currency or physical destruction resulting from war, revolution, coup or civil disturbance.

As one experienced negotiator advised: “Nationalize yourself before they nationalize you.” In a real sense, protection of a signed deal from political risks is a continuing process of negotiation between you and the foreign government concerned. What is needed is a neutral decision maker outside the control or influence of the foreign government concerned.

To be continued To reach the writer, e-mail cecilio. arillo@gmail.com

T

HE Church is the communio sanctorum not only because of her saints, but also because she is a communion in holy things: the love of God revealed to us in Christ and all his gifts.

Among these gifts there is also the response of those who let themselves be touched by this love. In this communion of saints, in this sharing in holy things, no one possesses anything alone, but shares everything with others. And since we are united in God, we can do something for those who are far distant, those whom we could never reach on our own, because with them and for them, we ask God that all of us may be open to his plan of salvation.

2. “Where is your brother?”

(Genesis 4:9)—Parishes and Communities ALL that we have been saying about the universal Church must now be

applied to the life of our parishes and communities. Do these ecclesial structures enable us to experience being part of one body? A body which receives and shares what God wishes to give? A body which acknowledges and cares for its weakest, poorest and most insignificant members?

Or do we take refuge in a universal love that would embrace the whole world, while failing to see the Lazarus sitting before our closed doors (Lukk 16:19-31)?

In order to receive what God gives us and to make it bear abundant fruit, we need to press beyond the boundaries of the visible Church in two ways.

In the first place, by uniting ourselves in prayer with the Church in

heaven. The prayers of the Church on Earth establish a communion of mutual service and goodness which reaches up into the sight of God. Together with the saints who have found their fulfillment in God, we form part of that communion, in which indifference is conquered by love. The Church in heaven is not triumphant because she has turned her back on the sufferings of the world and rejoices in splendid isolation.

Rather, the saints already joyfully contemplate the fact that, through Jesus’ death and resurrection, they have triumphed once and for all over indifference, hardness of heart and hatred. Until this victory of love penetrates the whole world, the saints continue to accompany us on our pilgrim way. Saint Therese of Lisieux, a Doctor of the Church, expressed her conviction that the joy in heaven for the victory of crucified love remains incomplete as long as there is still a single man or woman on Earth who suffers and cries out in pain: “I trust fully that I shall not remain idle in heaven; my desire is to continue to work for the Church and for souls” (Letter 254, July 14, 1897).

We share in the merits and joy of the saints, even as they share in our struggles and our longing for peace and reconciliation. Their joy in the victory of the risen Christ gives us

strength as we strive to overcome our indifference and hardness of heart.

In the second place, every Christian community is called to go out of itself and to be engaged in the life of the greater society of which it is a part, especially with the poor and those who are far away. The Church is missionary by her very nature; she is not self-enclosed but sent out to every nation and people.

Her mission is to bear patient witness to the One who desires to draw all creation and every man and woman to the Father. Her mission is to bring to all a love which cannot remain silent. The Church follows Jesus Christ along the paths that lead to every man and woman, to the very ends of the earth. In each of our neighbors, then, we must see a brother or sister for whom Christ died and rose again. What we ourselves have received, we have received for them, as well. Similarly, all that our brothers and sisters possess is a gift for the Church and for all humanity.

To be continued For comments, e-mail caritas_manila@yahoo.com. For donations to Caritas Manila, call 563-9311. For inquiries, call 563-9308 or 563-9298.

Fax: 563-9306.

Where’s the tolerance when the tables are turned?

O

By Dennis Byrne | Chicago Tribune/TNS

K, now it’s religion’s turn.

People of faith who assert their rights under the Religious Freedom Restoration Act enacted by Indiana have been pilloried as bigots, haters or worse.

Headlines blared that the act legalized homophobia. That Indiana passed a “hate law.” A television reporter traveled miles to sniff out someone, anyone, who would dare defend her faith and when she did at a small-town pizza shop, she was swamped with hate mail and death threats. Ridicule of sincerely held beliefs appears to be the order of the day. It’s been a storm of irresponsible, abhorrent stereotyping that should, but apparently doesn’t, shame the haters.

It makes as much sense as people of faith calling anyone who opposes the religious protection law bigoted and hateful anti-Christians, without recognizing that there’s a legitimate difference of opinion. This is not to say that people of faith don’t have their own share of people who can sling hatred. But I dare say that doesn’t describe most people who are seeking protections against government abuse of their religious rights.

Basically the Indiana law implements the first right listed in the

First Amendment, prohibiting government interference in religious practice. The act clarifies and elaborates on that prohibition by providing an exemption, allowing government to interfere with the practice of religion only when it has a “compelling” reason. And if the government determines that it has such a reason, it can do so only in the “least restrictive way.”

The law, as amended, also bars anyone from using his or her religion as an excuse to discriminate in housing, businesses, public accommodations and so forth on the basis of sexual orientation, gender identity, race and so forth.

The Indiana law and a similar one recently enacted in Arkansas are only the latest round in a long effort to balance two rights in conflict: equality and conscience. The history of that effort is too long and complicated to review here. That effort becomes especially difficult in a democracy, when two determined, muscular groups of Americans are

pressing for full implementation of their rights. Even more so when the opposing groups demand that their rights are near-absolute. Disputes, often passionate and ugly and sometimes destructive, are inevitable.

But if the history of that struggle demonstrates anything, it’s that few, if any, rights are absolute. Free speech isn’t. Nor is a right to carry arms. Nor is the right to property.

Putting aside the legal and political details of that struggle, too often questions of compromise, decency and respect are ignored. Noticeably so in the past few weeks.

Everything within our lives doesn’t have to be proscribed or prescribed by statute. The Religious Freedom Restoration Act, as some would have it, would force a photographer to take pictures at a same-sex wedding, in opposition to his religious beliefs. Or make a Christian baker create a wedding cake for gay nuptials. Or force a religious hospital to provide health insurance covering contraceptives and abortifacients for employees.

But who suffers the greater harm if such a law is enforced? Is it the same-sex couple who surely can find someone among the overwhelming number of bakers and photographers available who would be more than happy to provide the service? Would a gay couple have to forgo flowers at

their wedding because no other florist within sight would serve them?

Have we forgotten the historic American respect for diverse opinions? How sacred we hold divergent beliefs? That embedded in our founding documents are the principles of reverence for minority convictions?

Or would the greater harm fall on the photographer, baker or florist whom the government would compel by intimidation or threats to violate his conscience? The harm caused to one side is possible inconvenience and on the other is a police state that crushes freedom of conscience.

This is different from how people once used their religious beliefs to justify legally sanctioned racial discrimination. That despicable and widespread practice was required by law, enforced by police powers and backed up by fines and imprisonment. African-Americans had few integrated public facilities available.

The harm done was clearly one-sided.

With public acceptance of the LGBT (lesbian, gay, bisexual and transgender) agenda growing, the minority that has the right to request “just leave us alone” now belongs to segments of the religious community whose beliefs increasingly are disrespected and jeered.

The majority’s test of tolerance is just beginning.

Global Food Security Act a critical step forward in ending hunger

By Daniel Speckhard CQ-Roll Call/TNS

I

F Congress passes the Global Food Security Act of 2015, it will be taking a critical step toward ending global hunger and malnutrition in our lifetime.

Food security—and the underlying political, economic and environmental stability that make it possible—is a prerequisite for sustained development and stable societies. Yet, there are several countries, even entire regions, that face the triple threat of conflict, climate change and vulnerability to natural disasters that threaten the food security and income stability of millions.

As global economic shifts and other changes attack their livelihoods, smallscale farmers are at a crossroads. The next few years could spell the difference between chronic poverty and thriving small businesses able to feed both local communities and a hungry world. But if they are not addressed, these threats are also likely to create broader challenges for trade, international security and global economic growth.

That is why the Global Food Security Act of 2015, introduced by Reps. Christopher H. Smith (R-New Jersey), Betty McCollum (D-Minnesota) and nearly a

dozen others on both sides of the aisle could make such a significant impact.

With more than 800 million hungry people around the world, the US must have a smart approach for addressing global hunger. The act sets forth a comprehensive strategy for assistance to developing countries to increase sustainable and equitable agricultural development, reduce global hunger, improve nutrition and, ultimately, achieve food and nutrition security.

With this act, the US has a historic opportunity to help some of the world’s poorest communities get a hand up on developing sustainable solutions to poverty and food insecurity.

Potential crises may seem isolated but they have knock-on negative effects.

I saw it time and time again during my three decades in government service, and now as the president of an international development and relief organization. Local hunger or food shortages— sometimes caused by a natural disaster or other shock—leads to insecurity in local markets, which can lead to political instability and riots. For instance, recent research suggests that an earlier drought was a key spark that led to the uprising against the Assad regime in Syria. Food insecurity and political instability together can lead to exactly the

kinds of displacement and ungoverned spaces that US national security strategy hopes to prevent.

We need a more coherent global food security policy, which includes robust funding for locally owned programs benefiting small-scale producers. While less than 1 percent of the federal budget goes toward poverty-focused relief and development, fiscal constraints and politics may put at risk this small but critical contribution.

The Global Food Security Act recognizes lessons from past efforts, including the critical contribution of small-scale farming to global food and nutrition security and requires the US to ensure that agricultural assistance to other countries benefits and protects small-scale farmers—especially women—and increases their resilience to shocks and stresses that can destroy families’ development gains. It also promotes global standards of transparency and calls for strengthening programs around land tenure among small-scale farmers.

The US government’s flagship food security program, Feed the Future, has begun to focus on this commitment, with promising results, but will need to go further to achieve the goal of eradicating extreme poverty. Deepening our commitment to this issue also means

understanding the importance of climate adaptation and climate smart agriculture in these programs.

In order to help address and mitigate the worst effects of disaster, we must work collectively to inform and engage the international community about the danger of these “creeping” food and economic insecurity disasters, and also to share what works. This includes innovations for sound management of natural resources and rural communities’ physical assets in order to improve resilience and livelihoods.

By authorizing a US food security strategy that emphasizes coordination and integration of agriculture, nutrition and resilience-building programs across all US government agencies and also with civil society, the private sector, and other actors, the Global Food Security Act would promote strong and coherent US leadership on food and nutrition security around the world.

Lutheran World Relief, along with a broad coalition of nonprofits engaged in the fight to end hunger and promote international stability, urges Congress and the administration to support the Global Food Security Act as a critical step forward in sustainably tackling hunger and malnutrition in the most effective and efficient ways possible around the world.

2nd Front Page BusinessMirror

A8 Saturday, April 11, 2015

IMF chief warns of mediocre growth becoming ‘new reality’

W

ASHINGTON—Despite decreasing macroeconomic risks since last fall, the global economy continues to face a number of significant challenges, and the world should take measures to prevent the mediocre growth from becoming a “new reality,” International Monetary Fund (IMF) Managing Director Christine Lagarde said on Thursday.

While global growth is running at roughly the average of the last three decades, it is just not good enough to offset the lingering impact of the Great Recession, ranging from low growth and low inflation to high unemployment and high debt, Lagarde said in a speech delivered at the Atlantic Council ahead of the IMF/World Bank spring meetings next week.

In advance of the release of the IMF’s flagship World Economic Outlook report, the IMF chief expected the global growth this year to remain roughly the same as last year, when it grew at a moderate rate of 3.4 percent. The growth for advanced economies will run slightly better than last year, while the forecasts for most emerging and developing economies are slightly worse than last year.

See “IMF,” A2

www.businessmirror.com.ph

Manufacturing, power sectors drive growth of Q1 investment pledges

I

By Catherine N. Pillas & Bianca Cuaresma

nvestment pledges approved by the Board of Investments (BOI) rose by 16.7 percent to P54.62 billion in January to March this year, from P46.77 billion recorded a year ago, according to an official of the Department of Trade and Industry (DTI).

In a media briefing held on Friday, Trade Undersecretary and BOI Managing Head Adrian S. Cristobal said the government approved a total of 59 projects in the first quarter.

Cristobal said big-ticket projects in the manufacturing and power sectors propped up investment pledges during the period. For one, the electricity, gas, steam and air conditioning sector attracted P13.76 billion in investments in the first quarter, or 31 percent higher than the P10.5 billion recorded in the same period last year.

The biggest growth, however, was seen in the local manufacturing sector, which hauled

in P12.9 billion in investment commitments during the period, or a fivefold increase from P2.08 billion posted in the first quarter of 2014.

Other sectors that registered substantial investments were the transportation and storage sector, with P10.48 billion; and the real-estate activities sector, which garnered P9.09 billion in investment pledges.

Of the P54.62 billion in investment commitments, the bulk—or P52.25 billion—came from domestic sources, while foreign sources contributed the remaining P2.38 billion. Investment pledges from foreign investors were lower by almost half in the first quarter.

In January alone, figures from the Bangko Sentral ng Pilipinas (BSP) showed that actual foreign direct investments (FDI) fell by 71 percent to $263 million, from $905 million recorded in the same month last year.

FDI are investments placed by nonresidents into the country in search for long-term prospects, making them less volatile and more coveted than foreign portfolio investments.

The largest decline in inflows was seen in the equity placements of foreign investors to the country, which declined by 87.5 percent to $25 million this year from the $201 million seen in the previous year.

The BSP said equity-capital placements during the period originated mainly from the United States, Germany, Singapore, the Netherlands and Japan.

These were largely channeled to wholesale and retail trade; manufacturing; real estate; financial and insurance; and professional, scientific and technical activities, including those in landscape and architectural services.

The BOI said the 59 projects it approved

in the first quarter would create 18,174 jobs.

Meanwhile, Cristobal said the BOI has approved the general policies and specific guidelines of the 2014-2016 Investment Priorities Plan (IPP) and that the IPP is putting more emphasis on the impact of investments on the regional level.

He said the government has started to consider regional needs and that the government is considering a “geographical application” for the IPP. The eight preferred activities in 20142016 IPP are manufacturing, agribusiness and fishery, services, economic and low-cost housing, hospitals, energy, public infrastructure and logistics, and public-private partnership projects.

The new subsectors and sectors are aerospace parts and components, chemicals, virgin paper pulp, copper wires and copper wire rod, tool and dye, modernization of sugar mills, integrated circuit design, maintenance, repair and overhaul of aircraft, energy ancillary services, and energy-efficiency projects.

Chairman of the Board Jaime Augusto Zobel de Ayala (left) and President Fernando Zobel de Ayala lead the stockholders’ annual meeting of Ayala Corp. held at a hotel in Makati City on Friday. ALYSA SALEN

Ayala Corp. open to more partnerships with other conglomerates . . .

Continued from A1

turnover to a new administration.

“Yes, we will see more of that happening as we move on. Partnerships have been very much part of our culture for decades,” Ayala told reporters.

“In Ayala Land, most of the real estate we developed were done in partnership either with family groups or corporations. Not all Philippine corporates move that way. We would like to develop a culture where we can build trust with a variety of stakeholders, from small to large,” he said.

In all of the PPP projects won by Ayala, only the Daang Hari connector road was pursued solo by the property developer, while the rest were with partner-firms.

The construction of the P2.22-billion Daang Hari-South Luzon Expressway project, now known as the Muntinlupa-Cavite Expressway and the first PPP under Presi-

dent Aquino, however, is still ongoing since Ayala won the project in 2011.

Ayala said it will spend P185 billion in capital expenditures (capex) this year, most of which were earmarked for its property arm.

This was slightly lower than Ayala’s announcement of a record P187 billion in capital spending, as the business ventured into capital-intensive power and infrastructure projects.

The bulk of the planned capital spending was set aside for its property unit Ayala Land Inc., which already announced a record P100 billion in capex, as it pursued its so-called 2020 vision business plan.

The plan supports the property company’s 20-percent annual growth target and hitting the P40-billion net income target by 2020 that more than triples its 2013 profits of just P11.7 billion.

Photos show China’s ‘great wall of sand’ in South China Sea

T

he pace at which China is building islands in the South China Sea has been shown by satellite photos lending weight to claims by US Pacific Fleet Commander Harry Harris that China is building a “great wall of sand.”

The photos, published by an initiative of the Washington-based Center for Strategic and International Studies, focus on China’s reclamation in the Spratly Islands on Mischief Reef, a feature also claimed by Vietnam, the Philippines and Taiwan.

Artificial islands could help China anchor its territorial claims and potentially develop bases in waters that host some of the world’s busiest shipping lanes. Disputes over the South China Sea, of which China claims about four-fifths under a so-called nine-dash line

drawn on a 1940s map, have escalated as China expands the reach of its military.

Satellite photographs show construction on Mischief Reef that appears to have begun in recent months, according to the Asia Maritime Transparency Initiative.

Speaking on Thursday at a forum in Kingston, Jamaica, US President Barack Obama said, “Where we get concerned with China is where it is not necessarily abiding by international norms and rules, and is using its size and muscle to force countries into subordinate positions.”

“And that’s the concern we have around maritime issues,” Obama said. “We think this can be solved diplomatically, but just because the Philippines or Vietnam are not as large as See “China,” A2