BusinessMirror February 21, 2015

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

U.N. Media Award 2008

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Tuesday, 18, 2015 2014 Vol. Vol.10 10No. No.135 40 Saturday,November February 21,

project to extend LRT 1 service is‘most one-sided contract of all time’

Lawyer to SC: Freeze LRT 1 extension deal A

By Joel R. San Juan

PETITION has been filed before the Supreme Court (SC) seeking to stop the implementation of the P64.9-billion Light Railway Transit (LRT) Line 1 Cavite Extension Project signed between the government and the Light Rail Manila Corp. (LRMC) in October last year for being “the most one-sided contract of all time.”

In his 21-page petition, lawyer Salvador Belaro Jr. asked the Court to issue a temporary restraining order (TRO) enjoining the respondents Department of Transportation and Communications (DOTC), Light Rail Transit Authority (LRTA) and LRMC from continuing the implementation of the concession agreement on the project.

Belaro is currently the dean of Saint Dominic Savio College of Law

in Caloocan City. He is a graduate of the University of the Philippines College of Law. The LRT 1 Cavite Extension Project refers to the construction and operation of the existing LRT Line 1 to Cavite by providing trains commencing from the Baclaran end of the existing track south of Metro Manila, traversing the municipalities of Parañaque and Las Piñas, and ending in Bacoor, Cavite, including Continued on A2

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Wholesale prices up 2.7 percent in 2014 despite oil-price slump–PSA

By Cai U. Ordinario

D

espite the continuous decline in oil prices, wholesale prices in the country grew by an average of 2.7 percent in 2014, according to the latest report from the Philippine Statistics Authority (PSA).

PSA data showed that the average increase in the General Wholesale Price Index (GWPI) in 2014 was higher than the average of 1.6 percent posted in 2013.

Wholesale prices went up, despite a 4.1-percent decline in the GWPI for December 2014, due to the double-digit drop in the wholesale prices of oil.

“The [December 2014 GWPI decline] was effected by the continuous decline in the mineral fuels, lu-

bricants and related materials index at 27.4 percent, its largest decline over the year. The crude materials, inedible except fuels index also recorded a negative annual rate of 0.7 percent,” the PSA said.

The PSA data showed that, while wholesale prices of oil declined both on a year-on-year and month-onmonth basis, the heavily weighted food index posted increases.

The GWPI of the food index posted a year-on-year growth of 5.2 percent in 2014 and a monthon-month growth of 0.5 percent in December 2014.

Half of Filipinos’expenditures go to food, which is why any price increment, however small, could have a major impact on inflation.

Continued on A8

China expandsislands on disputed reefs in South China Sea

This July 20, 2011, file aerial photo shows Pag-asa Island, part of the disputed Spratly group of islands, in the South China Sea located off the coast of western Philippines. The Philippines, locked in disputes with China over several islands, proclaimed in 2012 that part of the South China Sea would be henceforth called the West Philippine Sea. AP/Rolex Dela Peña

T

he government is targeting to legitimize colorum vehicles via the rollout of a carpooling service from Uber to increase the availability of transportation in Metro Manila, the Department of Transportation and Communications (DOTC) said on Friday.

Transportation Secretary Joseph Emilio A. Abaya said legiti-

mizing colorum vehicles may be done by enrolling them in UberPool, the carpooling unit of onlineenabled transportation-services provider Uber.

“What we’re looking at is UberPool, another system they are operating, which is currently done in just a few countries. If we ever launch this, this could be an avenue for colorum utility vehicles to come in and be

PESO exchange rates n US 44.2360

CHINA

TAIWAN

Continued on A8

DOTC eyes rollout of UberPool to legitimize colorum vehicles

By Lorenz S. Marasigan

N

ew satellite images show China has rapidly expanded 400 miles Senkaku several artificial islands it is Islands Hainan building atop disputed reefs in the Scarborough Shoal Paracel South China Sea, raising fresh conIslands cerns across the region and in WashTHE ington about Beijing’s intentions.

VIETNAM PHILIPPINES Spratly Dredging and sand reclamation South Islands China over the last year at the Hughes Reef, Sea a shoal on the Spratly Islands, which CHINA are claimed by five nations, has creSingapore ated a 90,000-square-yard island THE PHILIPPINES with two piers, a helicopter pad and © 2013 MCT Source: ESRI what appears to be an anti-aircraft Graphic: Los Angeles Times tower or radar facility, according to HIS Jane’s, a defense research company.

A satellite photo taken in March showed only a small concrete platform jutting above the reef at high tide. Another photo of the same area, taken in late January, shows an inhabited island bustling with construction projects.

As the Los Angeles Times reported last month, US officials worry that the buildup indicates a Chinese push to establish de facto control over resource-rich waters and islets also claimed by the Philippines, Malaysia, Taiwan, Brunei and Vietnam.

400 km

See “DOTC,” A2

Govt condones unpaid taxes of IPPs–BIR

By David Cagahastian

T

he Bureau of Internal Revenue (BIR) reminded local governments units (LGUs) that President Aquino has earlier allowed the condonation of real-property taxes assessed against independent power producers (IPPs) to help stabilize power prices.

Internal Revenue Commissioner Kim Jacinto-Henares issued Revenue Memorandum Circular 6-2015

to remindLGUs of the reduction and condonation of real-property taxes assessed against the power-generation facilities of IPPs for all the years up to 2014.

President Aquino earlier reduced the real-property taxes on IPPs for all the years up to 2014 to an amount equivalent to the tax due if computed based on an assessment level of 15 percent of the fair market value of the real properties, at a depreciated rate

of 2 percent per annum.

The President also condoned all fines, penalties and interests on such deficiency real-property tax liabilities.

Using the power granted to him by the Local Government Code, the President issued the condonation of real-property taxes to ensure the stability of energy prices, saying that the forcible collection of real-property taxes by LGUs “may increase the cost of electricity and

may trigger further cross-defaults and significant economic losses across all sectors.”

The current interpretation by the courts is that IPPs under buildoperate-transfer contracts with the National Power Corp. do not enjoy its tax exemption. Based on this, the real properties, machines and equipment used by IPPs in their power-generation operations are also not exempt from real-property taxes imposed by LGUs.

n japan 0.3719 n UK 68.1809 n HK 5.7018 n CHINA 7.0794 n singapore 32.5696 n australia 34.4517 n EU 50.2831 n SAUDI arabia 11.7925 Source: BSP (19 February 2015)

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A2

DOTC. . .

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Lawyer to SC: Freeze LRT 1 extension deal

Continued from A1

legitimized,” Abaya said in an interview. “Hopefully, this is a channel for them to upgrade their service and be legitimized,” he added.

He said there is a need to legitimize illegal vehicle operators due to the growing demand for transportation in some growth areas in Metro Manila.

“They are on the road, but they are also harassed by all sorts of monkeys.

So it’s my obligation to legitimize them,” Abaya said.

UberPool executives, he said, will come to the Philippines to present the new service.

“They are ready to come here on February 26 and 27 to present UberPool. The purpose is not to pose a competition to but to legitimize all colorum UV vehicles,” Abaya said.

On its corporate web site, Uber said the carpooling service allows a rider to share a ride with another person and split the cost. This is similar to the concept of carpooling application Tripda, which debuted in the Philippines last year.

“The beauty, though, is that you still get Uber-style on-demand convenience and reliability: just push the button ‘Like’ before and get a car in five minutes. When we find a match, we notify you of your co-rider’s first name,” the company said.

Meanwhile, Abaya said the DOTC is currently working to complete a memorandum to regulate companies such as Uber. “I think we’re finishing up the order or memo. I requested the Land Transportation Franchising and Regulatory Board to go back [to the drawing board] and include current taxi operators,” Abaya said. “We are looking at what would be a good policy in fare regulation, which becomes very flexible in meaning,” he added.

enjoy, upon the effective date of the project, the daily income of LRT Line 1 from rail services which is pegged at LRT’s daily income of more or less P7 million per day or P210 million a month or P2.53 billion a year.

Considering that the concession agreement has a lifespan of 32 years, the petitioners noted that would translate to an estimated P8 billion for the LRMC. It noted that the amount does not yet include the income from nonrail services and income from commercial revenue of the existing LRT 1, as well as the future income, both from rail and nonrail services of the extended rail services to Cavite when completed.

The petitioner pointed out that the amount needed by LRMC to put up for the said project is the total concession payment amounting to P9.4 billion only aside from the P2.1

Continued from A1

the Satellite Depot at the southern end of the Cavite extension, as well as the continuation of the operation of the existing LRT 1.

The petitioner noted that under the agreement, the LRTA and the DOTC, as grantors, gave the concessionaire LRMC the exclusive right for a period of 32 years, extendible up to 50 years, to, among others, operate the existing LRT 1, the common station to be constructed at the North Edsa end of the existing Metro Railway Transit (MRT) Line 3, and be entitled to all their income, including commercial revenue from non-rail services, and the income from future development of the land covered by the project in exchange for the construction of the infrastructure and facilities for extending rail services to Cavite.

Meanwhile, the LRMC stands to

billion for the required securities.

The petitioner also noted that the project is overpriced as compared to the recently finished North Extension Project, which spanned a distance of 5.71 kilometers from Monumento to North Edsa, which only cost P6.3 billion.

Belaro stressed that in the case of the Cavite Extension Project, which spans 11.71 kms or around double the distance covered by the said North Extension Project, would cost P70 billion, or an overprice of more than 300 percent of actual cost.

Belaro, likewise, claimed that the saidP1.6 billion yearly net income for the concessionaire stands to balloon to another billion, or a yearly net income of P3 billion for the concessionaire because of the numerous provisions in the concession agreement which provide for grantors’ compensation in various instances.

“The foregoing paints a picture of a self-liquidating project for the concessionaire, whereby the existing LRT Line 1 with its income stream plus the income stream from the completed Cavite extension [project] pays for any advances made by the concessionaire. In effect, there is basis in saying that in the final analysis, the concessionaire did not pay anything for this project,” the petitioner said.

“On the other hand, the government, pursuant to the financial package under the concession agreement stands to derive no income, in the final analysis, for the entire duration of the concession period of 32 years, extendible to 50 years. In effect, the government stands to shoulder all the burden just to make the project a reality, making it the most one-sided contract of all time,” he added.

The project, according to the petitioner, violates the build-operate-

Car bomb hits insurgency-plagued southern Thailand; 13 hurt

H

AT YAI, Thailand—Suspected Muslim insurgents in southern Thailand on Friday detonated a car bomb that wounded 13 people and damaged buildings, police said.

Two other bombs were defused.

The bomb was hidden in a pickup truck that was parked in front of a karaoke bar in a commercial district in Narathiwat province, police Col. Manit Yimsaai said. He said the explosion wounded two soldiers and 11 civilians, one of them seriously.

Manit said the blast just after the lunch break also damaged rows of restaurants and shops in the predominantly Buddhist neighborhood.

He said the pickup was reported to have been stolen on Thailand’s southern border with Malaysia and had been used in a

previous rebel attack.

Suspected militants also threw a pipe bomb at a restaurant 50 meters (yards) from the first explosion, but the improvised device did not go off and was defused, police said.

Manit said an explosive ordnance disposal unit used water canon to successfully destroy another explosive device hidden in a motorcycle in front of a nearby grocery store.

Narathiwat is one of the three Muslim-majority southern provinces in Buddhist-dominated Thailand.

More than 5,000 people have been killed in the region since an Islamic insurgency erupted in 2004.

Meanwhile, Thai junta leader Prayuth ChanOcha reminded local reporters that he has the

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power to shut down media outlets and even execute people—though he pointed out he hasn’t done so yet.

The reporters were asking Prayuth on Thursday whether former Prime Minister Yingluck Shinawatra will be allowed to travel abroad, while she waits to hear if a court will accept criminal charges filed against her. The reporters pointed out that ultimately the decision would be his alone as he has broad power under the junta-drafted interim constitution.

“Should I use all power in all the articles?”

Prayuth asked. “Closing all the media? I have that much power. I can even arrest people to be executed. But I haven’t done anything like that.”

Prayuth, who as army chief toppled Yingluck’s elected government in a coup last May,

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has become famous for his angry outbursts, off-the-cuff remarks and sometimes unconventional actions. He’s previously made headlines for comments suggesting foreign tourists wearing bikinis risked their own safety, throwing a banana peel at a journalist, and petting the head and rubbing the ear of a reporter during a group interview.

Prayuth’s comments are often seen by his supporters as sarcastic or even playful, while critics say they are disrespectful and unbecoming of a leader.

Thailand remains under martial law, which the junta has used to temporarily detain hundreds of politicians, activists, academics, journalists and others it believes need what it terms an “attitude adjustment.” AP, Bloomberg News

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Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rain showers.

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transfer law that limits the government financial exposure to only 50 percent of project cost. ​In addition, Belaro questioned the process by which the said project was awarded, stating that both the DOTC and the LRTA were devoid of power to award a franchise to LRMC as it is only Congress which can grant such a franchise granted to the former, and that the “closed door” negotiations on the project is violative of the people’s constitutional right to information.

Belaro noted that no public hearing was conducted before the concession agreement was finalized.

“Neither is there any congressional inquiry that transpired either in aid of legislation or not so that the public will be duly apprised of the significance of this agreement of far-reaching significance,” the petition stated.

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Editor: Dionisio L. Pelayo • Saturday, February 21, 2015 A3

New passport printer assures: No delay

T

By Recto Mercene

HERE will be no delay in the delivery of new passports to the Department of Foreign Affairs (DFA), the APO Production Unit announced on Friday.

“We have to make this announcement owing to false reports that have come out in the media that there will be delays in the implementation of the ePassport system,” APO Chairman Mila Alora said.

APO Production Unit is a government-owned and -controlled corporation (GOCC) that prints highly sensitive forms for various government agencies.

At the start of this year, the

DFA passed on to APO the task of printing Philippine passports i n pl ace of Frenc h compa ny Oberthur Technologies.

“Yes, there were the usual problems during the transition from Oberthur to APO,” Alora added.

“But these issues have been settled.

We are confident of meeting our delivery deadlines as agreed with the DFA.” Previously, the Bangko Sentral ng Pilipinas handled the printing of passports for the DFA. In turn, the BSP appointed Oberthur Technologies to handle all aspects of printing Philippine passports. That

arrangement expired on January 15 this year.

Alora belied the claims of Oberthur that APO had been remiss in setting the timetable for a proper turnover.

The French company, she said, “insists that they should still handle a portion of the manufacturing of passports.”

This was not necessary because APO has the manpower and the expertise to handle the delicate job, Alora said.

Aside from the previous contract with the DFA through the BSP to produce passports, Oberthur continues to handle the printing of Philippine

currency for the central bank.

The country may not have the capability to print its own currency at this time, but “we are more than capable of printing our own passports,” Alora said. For the French company to imply, otherwise, is an insult to Filipino knowhow, she added.

APO’s ePassport contract with the DFA is for the current year, subject to renewal. With or without the cooperation of the former supplier, the GOCC established in 1974 is committed to deliver the new passports to the DFA “no matter what,” Alora added.

Mindanao children to suffer again if peace process is scuttled–group

By Marvyn N. Benaning

Correspondent

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HE Philippine Legislators’Committee on Population and Development (PLPCD) believes that scuttling the peace process in Mindanao will lead to extreme suffering for millions of children in the conflict-ridden island region.

PLCPD Vice Chairman and Liberal Party Rep. Teddy Baguilat of Ifugao fears that ending the process peremptorily will not only instigate fighting in the Autonomous Region in Muslim Mindanao (ARMM) but elsewhere.

Twelve of the 44 members of the Special Action Force (SAF) who died in the Mamasapano, Maguindanao, clash came from the Cordillera Administrative Region (CAR), the homeland of Baguilat.

Liberal Party Rep. Malou Acosta-Alba of Bukidnon echoed Baguilat’s sentiments, decrying the death of a 5-year-old girl caught in the firefight in Mamasapano and warned of the negative effects of armed conflict among children.

“While recognizing the need to find the truth and seek justice for those who died in Mamasapano, this should not dampen our resolve to seek lasting peace in Mindanao. Many lives have been lost throughout this long-standing conflict and many will continue to be lost if nothing is done. We owe it to them and to our children to continue our quest for peace through peaceful means,” Baguilat said.

“It is our moral obligation, and our duty as State Party to the UN Convention on the Rights of a Child, to uphold the best interests of the child and protect children’s rights in the Bangsamoro region. We have to do our share to ensure that no more children will have to suffer due to armed conflict,”Acosta-Alba said.

Romeo C. Dongeto, PLCPD executive director, emphasized the importance of ensuring the welfare of children, saying they are “most vulnerable both in peace and war time. They are the hope of our nation, the strength of our future. It is our duty that they will grow to their full potential to best serve our country and humanity.”

Baguilat pointed out the need for “a transitory provision in the Bangsamoro basic law that states that national laws [on child protection] are applied in the Bangsamoro until the regional assembly has enacted a law of the same spirit.”

A

➜Pinay nurse tests negative for MERS-Cov

ACTING Health Secretary Janette Garin on Friday announced that the Filipino female nurse who was confined on suspicion of having contracted the Middle East Respiratory Syndrome Corona Virus (MERS-Cov) has been discharged from the Research Institute for Tropical Medicine (RITM) after three series of laboratory tests yielded negative results.

“Late last night [February 19] or very early this morning [February 20] she was discharged from RITM,” Garin said during the Gawad Kalusugan Awarding Ceremonies held at SMX Convention Center in Pasay City.

But Garin is not keen to declare that the Philippines is already “MERS-Cov-free” but she said it is safe to say that “As of this time there is no active case of MERS-Cov in the Philippines”.

However, Garin said that the nurse will still undergo a “10-day home quarantine period” as part of the “routine protocol” and that the agency will still continue to do the documentation for “she will be an index case for the whole world.”

Claudeth Mocon-Ciriaco

➜Regional specialty hospitals

To the rescue The Emergency Response Unit (ERU) of the Philippine Red Cross responds to a motorcycle-bicycle collision at the corner of General Antonio Luna Street near the Manila Cathedral in Intramuros, Manila, at about 9 am on Friday. The motorcycle rider suffered a fractured right leg, while the bicyclist had a minor injury in the leg. The two were taken to the Philippine General Hospital.

Patient in photo was identified as Reynaldo Morillo, 50, of Coloong, Valenzuela City, the motorcycle rider.

PEA, private firm’s execs face ₧41-B plunder raps

By Joel R. San Juan

C

ONSUMER-ACTIVIST groups have filed plunder and graft charges before the Ombudsman against incumbent and former officials of the Public Estates Authority (PEA) and several officers of a private developer for allegedly defrauding the government in an allegedly anomalous sale of a 4-hectare reclamation property along Roxas Boulevard in Parañaque City in 1988, which is now valued at over P41 billion.

In the 14-page complaint-affidavit filed with the Ombudsman, United Filipino Consumers and Commuters and the Water For All Refund Movement (WARM) through its convener Rodolfo Javellana Jr. accused PEA officers and officials of the Ma-

nila Bay Development Copr. (MBDC) of failing to develop the seaside estate beside the Cavite Expressway (Cavitex) nearly 30 years after the two camps signed an agreement to convert the same into a Greenhillstype commercial center.

Javellana specifically accused PEA and MBDC officers of violating the antiplunder and antigraft laws.

He said the respondents conspired to defraud the government and the Filipino people of expected accumulated earnings from what is probably the country’s “biggest scam of asset disposition.”

He noted in the affidavit-complaint that this Deed of Absolute Sale has proven to be “grossly disadvantageous” to the government and the people because the MBDC has failed to fulfill its commitment under both

parties’ 1998 agreement to acquire the lot for a relatively small amount, on condition that the company would fully develop it into a business-commercial complex in five years’ time.

He added that past and incumbent PEA managements and its Board of Directors have surprisingly done nothing to take punitive steps against MBDC such as canceling the contract for this serious breach.

Among the respondents in the case are PEA Chairman Roberto Muldong and its General Manager Peter Anthony Abaya; PEA Board directors Virgilio Ambion, Manuel Medina, Edilberto de Jesus, Reynaldo Robles and Rene Enrique Silos; and former PEA General Manager Eduardo Zialcita, who executed the deed of sale in 1988.

Also named as respondents in the plunder-graft charge are MBDC

President George Chua, who signed the contract with Zialcita in 1988, and the unnamed board directors of this erring private developer.

Although the allegedly anomalous deal happened almost three decades ago, Javellana pointed out in his affidavit-complaint that it is not covered by the mandatory 10year prescription period for the filing of plunder charges against guilty parties and the 20-year prescription period covering graft complaints, since he only became aware of the Deed of Sale just recently when the issue became public.

“Hence, the filing of these cases against the former and present officials of PEA, as well as against the owners and officers of MBDC is within the period allowed under the rules,” he said.

Shell Eco-marathon at center of effort to boost Philippine ecotourism–Jimenez LL roads will lead to the Rizal Park in Manila from February 26 to March 1 as it will again be the venue for Shell Eco-marathon Asia to be held in the Philippines for the second consecutive year.

Tourism Secretary Ramon J. Jimenez is very enthusiastic about the event because this provides a different but meaningful definition of another variety of tourism that the country can offer— ecotourism.

“In fact, it is very important. I’m glad people from Shell are here [to support us]. People tend to think that country tourism is a generalist and amorphous plan. There is a plan for Manila, which accounts for over 70 percent of overall

briefs

tourist arrivals in the Philippines, that would make it the center of cutting edge ideas for a technological future in this part of the world,” Jimenez said.

Jimenez added that Shell Eco-marathon Asia is at the very center of this effort, because the event will represent things that will become present in the future in areas, like transportation, education, fuel consumption and propulsion. At the same time, it will build Manila’s reputation as a premier eco-center in the world.

Some of the countries expected to join the ecological competition are China, Japan, Singapore, the United Arab Emirates and many other Asian countries.

The Shell Eco-marathon is a renowned global contest that brings

together youth engineers from all over the region in developing fuel-efficient cars of the future—utilizing an energy mix that includes biofuels such as ethanol, to technologies, such as compressed natural gas and gasto-liquids (GTL) apart from conventional fuels like gasoline and diesel.

Jimenez said holding the event in the Philippine capital enables Manila to develop a certain sophistication that is important in the digital age.

He also said that Shell Eco-marathon Asia helps Manila to develop that objective that will be appealing to the young people all over the world. “Along with ideas this year, such as Madrid Fusion considered as the modern and cutting

edge of modern gastronomy, Shell Ecomarathon Asia also performs that role although on a larger scale covering more countries and more young people than most festivals around the world.”

Jimenez said that the eco-marathon gives local and foreign tourists alike an opportunity to witness a paradigm shift in racing. Instead of burning fuel, people can witness cutting-edge technologies that aim to make the future cleaner for the succeeding generations.

On the tourism side, Jimenez said Shell Eco-marathon Asia contributes a lot to inbound travel as 17 countries with more than 129 teams will join the event.

“I have to underscore this. Just imagine 129 teams composed of young

people who are in fact recognized in various institutions of learning that they represent coming to the country.

These are the people whose careers we will follow in the future. In other words, the engineers and the inventors of the future will probably come from this event,” he said.

Jimenez said the event is also an opportunity for the country to boost its reputation to attract quality tourists stressing that the quality tourists “are the influencers we need.”

“When they go back to their respective countries, they will remember their stay in Manila. If they had a pleasant experience, they’ll say we don’t mind going back if there will be another race.”

A LEGISLATOR on Friday sought the establishment of regional specialty hospitals across the country to bring closer to the people the government’s health-care program.

Sen. Aquilino “Koko” Pimentel III said the establishment of specialty hospitals, like the Lung Center or the National Kidney Institute in Visayas and Mindanao would translate to better and equitable access to health services.

He noted the huge disparities that Metro Manila enjoys when it comes to access and availability of better health services and facilities compared to the Visayas and Mindanao and other parts of Luzon.

Because these hospitals are located only in Metro Manila where there are better facilities, Pimentel said the people from the Visayas and Mindanao need to spend more for their medication.

“The hard reality is that majority of rural Filipinos lack access to affordable and easily available health care. Health services remain grossly inequitable,” he said. Recto L. Mercene

➜Parliamentarians’ meet

THE Philippines will host an assembly of more than 100 parliamentarians, representatives of human-rights institutes, and members of civil-society groups from all over the Asia-Pacific region next week to discuss ways to increase regional involvement to the protection and promotion of human rights.

The Senate and the InterParliamentary Union (IPU), in collaboration with the Office of the United Nations High Commissioner for Human Rights, will host the twoday regional seminar for Asia-Pacific parliaments, titled “Translating international human-rights commitments into national realities: The contributions of parliaments to the work of United Nations Human Rights Council.”

Senate President Franklin M. Drilon said 89 representatives from at least 20 countries have confirmed attendance in the two-day seminar which consists of seven sessions, to be held on February 26 and 27 at the Diamond Hotel in Manila.

Drilon, who once served as president of the IPU Committee on the Human Rights of Parliamentarians, will serve as the lead convenor of the international conference, while Pimentel, chairman of the Senate Committee on Justice and Human Rights, is the conference chairman.

Sen. Loren Legarda and Justice Secretary Leila de Lima are expected to attend the conference as resource persons. Recto L. Mercene

Economy

A4 Saturday, February 21, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

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Belmonte: Much remains to be done to sustain PHL growth

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hile the Philippines has emerged as one of the bestperforming economies in Asia and the world in recent years, House Speaker Feliciano Belmonte Jr. on Friday said much remains to be done to continue and accelerate economic growth.

“We need to sustain our economic growth, or grow faster, to create more and better jobs for our people,” Belmonte said, adding that unemployment and underemployment needs to be addressed by the government annually.

He said the government should craft a common agenda for policy reforms to maximize the inflow of foreign direct investments (FDI)to propel inclusive and sustained growth.

Citing statistics, Belmonte noted that the country’s gross domestic product (GDP) grew by 6.8 percent in 2012, and 7.2 percent in 2013, notwithstanding the weak global economy and the havoc wrought by the series of calamities that hit the country.

In terms of wealth and income levels, however, he said the country continues to lag behind, noting that, as of 2013, Philippine GDP per capita was only $2,587, compared to Indonesia’s $3,475; Thailand’s $5,779; and Malaysia’s $10,514.

“Clearly, we need more [direct] investments and business activities to absorb our growing labor force,” he stressed.

Because of the “improved macroeconomic fundamentals,” Belmonte said that, “for the first time, the Philippines got an investment-grade credit rating from all major rating agencies,” which translates to lower cost of credit and capital that augurs well for investments.

To further ensure sound monetary and fiscal management and policies adopted by the government, the speaker enumerated priority legislation agreed upon with their Senate counterparts during regular monthly dialogue.

These measures include, Amendments of the Bangko Sentral ng Pilipinas Charter, Rationalization

of Fiscal Incentives, Tax Incentives Management and Transparency Act, Customs Modernization and Tariff Act, and the Rationalization of Mining Revenues.

To promote competition and the growth of FDI, Belmonte underscored the need to pass Resolution of Both Houses 1 that vest on Congress the power to set (or adjust) restrictions on foreign ownership in key economic sectors, including public utilities, property, mass media and advertising, educational institutions and development of natural resources.

Likewise, on the long list are: Amendments to the Foreign Investment Act, Amendments to the Retail Trade Act, An Anti-trust and competition law, Amendments to the Build-Operate-Transfer law, Amendments to the Electric Power Industry Reform Act, Amendments to the Cabotage law that would allow foreign vessel to pick up, transport and deliver shipments to and from local ports.

“Competition is good for our economy and our people,” Belmonte stressed, adding that a competitive marketplace for the exchange of goods and services benefits the consumers through lower prices, quality service and better-quality consumer information.

Reminding everyone that peace and order is indispensable to development, Belmonte stressed the need to pass the Freedom of Information Act, the proposed Bangsamoro basic law, the Sandiganbayan Act, the Witness Protection Act and the Whistleblowers’ Act. During the meeting, Belmonte noted that the business leaders’ legislative ‘wish-list’ were almost the same with that of Congress as he predicted a “busy but fruitful first quarter of 2015.” PNA

Bacman Unit 1 now operating at 55 MW

By Lenie Lectura

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HE Lopez-led Energy Development Corp. (EDC) on Friday said Unit 1 of the Bacman geothermal power plant is now operating at its 55-megawatt (MW) rated capacity, after it had completed the installation of a brand-new steam turbine.

“We advised that Bac-Man Geothermal Inc., a wholly owned subsidiary of EDC that owns and operates the Bacman power plants, had completed the installation of the brandnew Toshiba steam turbine rotor unit and diaphragms for its Unit 1,” it said in a disclosure to the stock exchange.

As such, Unit 1 is currently operating at its rated load of 55 MW, after conducting all commissioning works and tests on completion. “With the completion of a three-day capability run at 60 MW, the unit has now started its 30-day reliability run,” it added.

In December last year 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.

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

Earlier EDC reported that Unit 2 has put in an additional 5 MW of generating capacity. It is now operating at 60 MW. The increased capacity was a direct result of an upgraded Toshiba turbine design. “Recall, that the installation of the brandnew Toshiba steam turbine rotor unit and diaphragms was completed in September 2014,” EDC added.

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

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

briefs

phl enforces mandatory repatriation of filipinos in strife-torn yemen

The Philippine government on Thursday said it will enforce the mandatory evacuation of some 700 Filipino workers in Yemen due to heightened political tensions in the troubled Middle East state.

Yemen was placed under Alert Level 4 by the Department of Foreign Affairs (DFA) due to the continued occupation of the capital city Sana’a by Houthi rebels, as well as the recent suspension of operations of numerous embassies in the capital.

The DFA also cited the collapse of United Nations-brokered negotiations after two parties walked out in protest of the Houthis.

“Alert Level 4 is raised where there is large-scale internal conflict of full-blown external attack. Under this alert level, the government undertakes mandatory evacuation procedures,” the DFA said in a news statement.

Manila has no diplomatic post in Yemen, but a crisis management team, deployed by the Philippine Embassy in Saudi Arabia, is currently on the ground in Sana’a and stands ready to assist Filipinos who wish to be repatriated home to the Philippines, the DFA said. PNA

manila water to invest p742m in subsidiaries

Delightful street snack

Photo shows an enterprising woman selling suman sa ebus (glutinous rice wrapped in palm leaves) at P50 per bundle to augment her family’s income. Kevin de la Cruz

JFC presses for speedy amendment of BOT law

By Catherine N. Pillas

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he Joint Foreign Chambers (JFC) is calling for the swift amendment of the buildoperate-transfer (BOT) law to speed up the country’s infrastructure development.

In a letter addressed to the chairman of the House Committee on Public Works and Highways, the JFC expressed its support on the move of the Public-Private Partnership (PPP) Center and private stakeholders to enact changes to Republic Act 7718, or the BOT law.

“We write to express support on the swift enactment of amendments to the BOT law in order to sustain investor confidence by institutionalizing the processes that have improved the PPP program over the past four years,” the JFC statement read.

The PPP Center, in an earlier

report, tagged the changes as a priority of the government and is eyeing for amendments to the BOT law to be passed in the first quarter of 2015.

According to the agency, technical working group discussions in the Lower House has begun.

The amendments being pushed by the PPP Center includes extending the Swiss challenge period for an unsolicited proposal to a maximum of six months from two months.

The Swiss Challenge will allow other interested parties to outbid the initial project proponent. Projects that have undergone Swiss Challenge include the Metro Rail Transit 7 project.

Other proposed amendments include the institutionalization of the Project Development and Monitoring Facility, the PPP Governing Board and the contingent liability fund.

The proposed PPP Act has already been forwarded to the House of

Representatives and the Senate, and both chambers.

“The private sector is cognizant of the great need for massive infrastructure investments to support and boost the growth of the Philippine economy. We recognize that the government’s PPP Program provides the framework by which infrastructure development can be accelerated and properly tendered to interested and capable parties,” JFC said.

The JFC is a coalition of the American, Australian, New Zealand, Canadian, European, Japanese and Korean Chambers in the Philippines and the Philippine Association of Multinational Companies Headquarters Inc. The group represents over 3,000 member companies engaged in over $230 billion worth of trade and some $ 30 billion worth of investments in the Philippines.

10K women retailers take entrepreneurship course

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ari-sari store and karinderya (eatery) owners may have already grasped the practical day-to-day operation of their business, but a little more training will certainly help.

Moving forward its Sari-Sari Store Training and Access to Resources (Star) program, the Technical Education and Skills Development Authority (Tesda) and Coca-Cola Far East Ltd. aimed to have 10,000 more women scholars for the first semester of the year.

The target-beneficiaries being eyed are from Metro Manila, Rizal, Bulacan and Cavite. Out of these 10,000 women, 500 will come from the Sixth District of Quezon City.

To formalize the partnership, Tesda, Coca-Cola and the Sixth District of Quezon City inked a memorandum of agreement for the intervention for small sari-sari store owners, focused mainly on providing formal basic entrepreneurship training and facilitation of access to business resources, such as product and merchandising support.

“Women entrepreneurs continue to rise in the economy as a force to be reckoned [with], and lasting success hinges on the ongoing training to equip them with the skills in better running their business,” Tesda Secretary-General Joel Villanueva said.

He expressed gratitude to Coca-Cola

Technical Education and Skills Development Authority (Tesda) Secretary Joel Villanueva (center), Quezon City Sixth District Congressman Jose Christopher Belmonte (right); and lawyer Adel Tamano, vice president for public affairs and communications of Coca-Cola Far East Ltd., sign the memorandum of agreement to train at least 10,000 women retailers on entrepreneurship on Friday at the Tesda Complex in Taguig City. Since 2012 Tesda and Coca-Cola have been forging partnerships with local government units in implementing the Sari-Sari Store Training and Access to Resources (Star) Program to provide women beneficiaries with formal basic entrepreneurship training and facilitation of access to business resources, such as product and merchandising support. The Star program is under CocaCola’s 5by20 Program, a global initiative to empower 5 million women worldwide by 2020. PNA

and the local government of Quezon City for their concerted and focused effort in entrepreneurship education.

The Star program was designed to economically empower the target women beneficiaries by providing them with the necessary knowledge, skills and attitude to transform them into successful entrepreneurs.

Since the program started in 2012

up to December 2014, about 30,000 women scholars have graduated.

In implementing it, Tesda and CocaCola have been forging partnerships with local government units that select the women beneficiaries.

Tesda nominates qualified trainers for the program based on qualifications outlined on the mechanics for implementation. PNA

The Ayala-led Manila Water Co. Inc. will invest P742 million in two wholly owned subsidiaries in a bid to further improve its services and meet working capital needs.

In a disclosure to the Philippine Stock Exchange, Manila Water said its Board approved the additional capital infusion of P492 million to Manila Water Total Solutions Corp.

“The investment shall be effected at such time and frequency as may be necessary for the full commercialization of the after-the-meter products and services of Total Solutions,” it said.

The company said the Board, likewise, approved an investment of P250 million in Manila Water Philippine Ventures Inc. to fund additional working capital needs.

It said the amount shall be used to fund the operations of Philippine Ventures, which is the vehicle intended by the company to hold its investments in its domestic operating subsidiaries. PNA

uv express operators launch own pink project A group of UV Express operators has taken the challenge raised by the Land Transportation Franchising and Regulatory Board (LTFRB) earlier this month to follow an initiative launched by a group of public-utility jeepneys (PUJs) in providing convenient commute to several sectors of the society.

Sixteen UV Express vehicles plying the TriNoma-Tandang Sora route have volunteered to transport and pick up only women, children, senior citizens and persons with disabilities (PWDs) during rush hours.

The initiative is similar to the “Pink Jeepney” project rolled out by the Guadalupe-Pateros Jeepney and Operators’ Association earlier this month, where 14 PUJs painted in pink and drivers wearing pink shirts agreed to offer public-transport service from 6 to 9 a.m., and from 4 to 7 p.m.

Instead of painting their UV Express units in pink color, they will be carrying pink flags and pink stickers on the lower part of their windshield.

Their drivers will also wear pink shirts in order for women, senior citizens, children and PWDs easily recognize them.

“We’re glad that a group of UV Express operators are joining the initiative started by PUJ operators in easing the burden of travelling for women, children, senior citizens and PWDs, especially during rush hours,” LTFRB Chairman Winston Ginez said.

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Jica donates P2.3 million for Laguna’s K to 12 program

By Cai U. Ordinario

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he Japan International Cooperation Agency (Jica) has donated P2.3 million worth of materials and equipment to support the K to 12 Program among select schools in Laguna.

Jica said the assistance package is part of the ongoing collaboration between Jica and the Department of Education (DepEd), dubbed as Supporting Senior High School Modeling in Selected Technical Vocational High Schools, launched in 2014.

The project provides technical support to the DepEd in its efforts to fine-tune the activities in technicalvocational high schools developed during the modeling program now on its implementation stage.

“The cooperation project is focused on developing a strategic mechanism that will link tech-voc schools with industries, and help Filipino graduates find permanent jobs,” Jica Philippines Senior Representative Takahiro Morita said.

The project aims to address and identify the gaps and mismatches in industry needs and skills developed in schools. The assistance also provides opportunity for pilot schools to collaborate with local and Japanese industries.

The equipment and materials were turned over to the DepEd at the San Pedro Relocation Center High School. The school is among the 14 public technical-vocational high schools of the 56 schools nationwide identified by the DepEd to model the senior high school program in preparation for full implementation of K to 12 in June 2016.

The project has partnered with four schools, namely, Don Alejandro Roces Sr. Science and Technology High School in Quezon City; Rizal Experimental Station and Pilot School of Cottage Industries in Pasig City; and Subangdaku Technical Vocational High School in Mandaue City.

These schools will share their strategies and best practices with select model-schools in implementing senior high-school curriculum.

Under the Enhanced Basic Education Act enacted in May 2013, two years will be added to the current four-year high-school curriculum.

The two years will be Grades 11 and 12 or senior high school.

The country’s K to 12 initiative expands the educational cycle from 10 years to 12 years and reintroduces technical-vocational skills training and education to better link schools with industry and for the graduates to have a better opportunity to participate in the labor force.

Saturday, February 21, 2015 A5

Mindanao power cooperatives seek to defer repair of 2 Steag coal plants

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By Manuel T. Cayon Mindanao Bureau Chief

AVAO CITY—The Association of Mindanao Rural Electric Cooperatives (Amreco) is asking the Department of Energy (DOE) to defer the simultaneous repair this month of the two units of the coal plant in Misamis Oriental operated by the Steag State Power Inc., which could send the entire island into another episode of long hours of brownouts.

Sergio Dagooc Sr., president of the Amreco, told the BusinessMirror on Friday that the association has yet to assess the impact on the franchise areas of member-cooperatives on the repair on the two units at the Steag plant in Villanueva, Misamis Oriental.

He said the Amreco would ask the Mindanao Development Authority to include in the agenda of the meeting next week of the Mindanao Power Monitoring Committee its petition to Energy Secretary Carlos Jericho L. Petilla to defer the total shutdown of the Steag coal-fired power plant “until the time that the Therma South Inc. coal plant would start streaming its first batch of load to the Mindanao grid.”

He said the scheduled loading of the Aboitiz-owned coal plant in Davao City would be anytime soon.

“We would ask the secretary to consider the scheduled shutdown of Steag for repair,” he said.

He said the Dinagat Island off Surigao del Norte has not been adversely affected yet, but areas with no power-supply contracts with private and independent producers, such as Surigao del Norte, have been reeling with rotational brownouts for several years already.

For the franchise of the Aboitizowned Davao Light and Power Co., it already announced early this week that the curtailment on power would be huge due to the combined 200 megawatts (MW) of the repaired units.

If the impact on the Davao Light franchise would be any indication, then the impact of the loss of the 200 MW would have more telling effect in the rest of Mindanao. It is because the Davao Light franchise would be considered more fortunate due to the available alternate sources of electricity that has shielded the cities of Davao and Panabo of Davao del Norte, the towns of Santo Tomas

Enactment of tax-reform measures seen this year

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Fresh catch in Chinatown

Varieties of fresh fish catch are on sale at relatively low prices in Binondo, Manila, where this woman puts her seafood stall every Friday morning of the month. NONIE REYES

he Tax Management Association of the Philippines Inc. (TMAP) is confident that Congress will pass within the year the proposed reforms in the country’s personal income-tax system.

In a briefing on Friday, TMAP President Terence Conrad H. Bello said lawmakers are now working hard to study possible enhancements in the law in a bid to increase compliance, which is more beneficial to both the government and the public. ”I think Congress will pass bills on personal income tax [reforms] within the year,” he said.

TMAP has been proposing changes in the country’s tax system to address loopholes and make it more competitive vis-à-vis the looming regional integration.

In its proposal to Congress, the group suggested for a “simplified yet progressive income-tax table” and an adjusted tax base to address “bracket creep” phenomenon. It suggested that working individuals with an annual tax base of P300,000 and below will not be taxed.

For those with tax base of over P300,000 up to P500,000, tax rate should be 10 percent; for those with tax base of not over P1 million, 20 percent; 25 percent for those with tax base of P1 million to P2.5 million; and 30 percent for those with tax base of P2.5 million. TMAP also proposed for the reduction in the individual income-tax ceiling from 32 percent to 30 percent, same as the corporate tax.

Similarly, the group has also proposed for the enhancement in the country’s corporate income tax, but Bello admitted that this will take a longer process compared to the individual income tax.

Also, TMAP has submitted a proposal for the amendment of the Tax Code and Bello said Party-list Rep. Neri Colmenares of Bayan Muna has authored a proposed bill, House Bill 5401, supporting this move.

Bello said any enhancement in the country’s tax system is beneficial not only to the government, the people and corporations, but the country as a whole. PNA

Chinese lions, dragons family business for Filipino siblings

By Aaron Favila The Associated Press

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mid the deafening drumbeats and firecracker blasts, the dragon snakes into a building in downtown Manila while three lion heads bob to the crowd’s delight.

The Chinese New Year performance is by the Pink Panther Dragon and Lion Dance Group, a business operated by eight Filipino siblings who live in a creekside slum in Manila’s Chinatown area. They are hired by businesses that believe the show will drive misfortunes away and bring good luck.

Manager Joseph Sicat says they started the business 10 years ago with only two Chinese lion heads. Now they have 25 lion heads, nine dragons and a team of 100 workers.

“We got the name Pink Panther because when we started we were the first ones who had a pink lion,” Sicat said. “We added

and Braullio Dujali, from brownouts.

This week Rossano Luga, chief of Davao Light’s Reputation Enhancement Department, said the rotational brownout would start on Saturday, when the Steag coal-fired power plant would repair both turbine units.

He said the period covering February 21 up to March 2 would be crucial when the two units would be out of the grid, although the repair on one unit was started on Februay 16 and the entire repair duration would last until March 16.

Mindanao was expected to experience stable power beginning this year as the coal plant here would begin supplying power to the grid. It has a capacity of 300 MW. Two other coal plants would be streamed to the grid within the next two years. These are the 200-MW plant in Sarangani province operated by the Alson’s Conal Holdings, and the 300-MW plant in Davao del Sur.

‘Panther’ because we think it sounds fierce.”

The busiest season is now, while ethnic Chinese celebrate the Lunar New Year. Two lions and drums cost P10,000 and a complete package with dragon dancers costs P35,000.

A big show could take nearly three hours, such as one the company recently did at a large post office building. A crew of about 25 went office to office and up and down stairs with their drums and costumes to perform and take selfies with workers.

“We pay our regular dancers P400 per day during the off-season. During the Chinese New Year week they usually get as much as P1,000 per day,” Sicat said.

He added that while it’s hard work to transport the performers, costumes and equipment from show to show, “When you see the happy crowd, our exhaustion goes away.”

IN this photo taken on Wednesday, Thristan Rain Sicat, 7, performs as his father Therry (right) holds the drums during their lion and dragon dance performance in Manila. The dance group is hired by businesses that believe the show will drive misfortunes away and bring good luck. AP

Opinion BusinessMirror

A6 Saturday, February 21, 2015

editorial

2015: Sheep, goat, or ram?

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VERY 12 years–counting from 2015–there is a discussion about what animal is actually represented for the year. There is an identity crisis since the Chinese character “yang” broadly describes any of the ruminating mammals, with or without horns. This year is variously known as the “Year of the Sheep, Goat, or Ram.”

There is a leaning to the Year of the Goat since the goat was a popular farm animal among Han Chinese who started the zodiac tradition. Fortunately, for example, the year of the horse means horse and not zebra or unicorn. Unfortunately, the jury is still out on the year of the dragon.

Many Chinese prefer to translate the character as ‘sheep’ probably because sheeps are seen as cute, soft, and friendlier–at least the female ‘ewe’. This past week in Hong Kong, large figures of sheep have appeared around the city.

The Chief Executive of Hong Kong, Leung Chun–ying, expressed his preference and created a controversy at the same time asking the people to “act more like sheep.” Leung said, “In the coming year, I hope that all people in Hong Kong will take inspiration from the sheep’s character and pull together in an accommodating manner to work for Hong Kong’s future. “Sheep are widely seen to be mild and gentle animals living peacefully in groups,” Those that prefer the sheep as the symbol for the year note that the sheep is a herd animal with each member protecting the others. Sheep also are a productive source of both wool and food and is a major part of the staple diet in the Middle East. Australia makes a fortune from its exports of live sheep to that region.

Others might prefer we call this the year of the goat. Goat meat and goat milk is regularly eaten in many areas of the Philippines. While goats can be cranky animals, very stubborn with a strong free–will, they are also self–sufficient. Goats are content to go their own way, living off the land. In Scandinavian mythology, the god of thunder Thor has a chariot pulled by two goats.

The recent “Thor” movies omitted that fact.

The ram on the other hand is also a sheep; the male of the species. But when we think of ‘sheep’, we usually picture the female ewe not the ram. Often illustrations of the year of the sheep in China show an animal with large curving horns more similar to the mountain sheep of North America and not the docile animal CY Leung was speaking about.

Given a choice we would prefer the ram as the mascot for 2015. Strong, independent, and yet very much a part of the herd, the ram is not as cooperative if you try to take his wool.

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OUTSIDE THE BOX

HERE are two kinds of people in the world. Those that live in the real world and those that do not.

People in the real world create, build and adjust to the events that are happening around them which are for the most part completely out of their control. Then there is the other group that tries to do everything it can to ignore the ‘real world’ and creates their own world. Traders, and to a lesser extent investors, in the financial and asset markets belong to the second group.

Don’t misunderstand me. Financial people and traders belong to an honorable profession, generally the same way that actors and daytime television variety and talk show hosts do. They all perform a necessary function and offer something to society, something that society wants to have.

But let’s be honest. Most of it is illusion and therefore not connected to the ‘real world’. The skills necessary to be a daytime television host or an actor for that matter would be fairly useless in a factory or even a call-center. The same applies to traders.

For the last six months, we have witnessed a massive drop in the price of oil. To hear some commentators speak of it, you would think that it is

biblical in nature. The price fall has been sharp and dramatic, down 60 percent from high to low. But is not that sharp or dramatic.

From June to December 2008 (also six months), the price of crude oil fell 70 percent from about $133 per barrel to about $40.00. Our recent decline is from $105 to the recent low of about $40.00 or 60 percent. This is not a replay of Noah’s flood. Here is another one. In 1985, the price of oil dropped 60 percent in six months and did the exact same thing in October 1990 over six months.

But for traders, every time is absolutely different just like the television host is convinced there has never been anything like it on TV before

Pope Francis and women

Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan

BusinessMirror is published daily by the Philippine Business Daily Mirror

HOM

Oil prices will continue to fall

Boots Geotina-Garcia

Women Stepping UP

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HILE preparing to leave for the airport on Sunday, January 18, I kept my television tuned in to the visit of Pope Francis at UST, the Pontifical University. As I would be airborne while the final mass at the Luneta would be aired, I thought I would at least listen to what he would say to the youth for whom the mass was to be celebrated. Halfway through his homily, I was happily surprised to hear him speak about women and his views on how they think and their sphere of influence on society.

As he spoke in Spanish (though translated for the most part), it was also a good time for me to practice my knowledge of Spanish as his messages were better articulated in his native tongue.

To quote Pope Francis’s words in Spanish: “En la pequeña representación de las mujeres. Demasiado poco. Las mujeres tienen mucho que decirnos en la sociedad de hoy.

A veces somos demasiado machistas y no dejamos lugar a la mujer. Pero la mujer es capaz de ver las cosas con ojos distintos de los hombres. La mujer es capaz de hacer preguntas que los hombres no terminamos de entender. Presten ustedes atención, ella hoy hizo la única pregunta que no tiene respuesta. Y no le alcanzaron las palabras, necesitó decirlo con lágrimas. Así que cuando venga el próximo Papa que haya más mujeres.”

Translated in English: “There’s only a very small representation of girls among you. Too little.

Women have much to tell us in today’s society. Sometimes we are too ‘machistas’ and we don’t allow enough space to women. But women can see things from a different angle to us, with a different eye. Women are able to pose questions we men are unable to understand. Look out for this fact: she is the only one who has put a question for which there is no answer. She couldn’t put it into words but expressed it with tears. So when the next pope comes to Manila, please let there be more girls.”

While reflecting on the words of Pope Francis, I became more aware that indeed women possess certain qualities which can be of benefit to society.

If you notice, almost everything you have heard or read about the fall in oil and gasoline prices has come from someone outside of the oil or gasoline business. Most are from ‘financial experts’ and traders.

There may be some geo-political aspects to oil prices right now but there always are. In fact, the first oil ‘crisis’ was because the Middle Eastern oil exporting countries stop the flow of oil in 1973 when the US supplied arms to Israel after its being attacked by Syria and Egypt during the Yom Kippur War. However, the oil market is too large with too many players to be manipulated. As I wrote before, demand for oil started falling well below supply in early 2014. Market forces have taken the price lower.

But now all the financial people are weighing in on where prices go next.

Prices are supposed to go higher in the next few months because oil producers in the US are shutting down production as evidenced by the falling number of oil rigs being leased and used. Supply should drop and prices should rise.

Devon Energy Corp., a mid-sized US oil company and a large shale-oil producer, posted revenues of $6 billion for the last quarter. Devon will spend $1 billion this year to increase production even as Devon is using significantly fewer oil rigs. Because of better efficiencies, new innovations in the industry, design improvements

and by focusing on the most productive oil fields, they have produced 47 percent more oil over the last three years.

In 2015, even with a reduction in capital expenditure by 20 percent, their oil production will be 20 to 25 percent higher than in 2014.

The alternative is to go out of business and that is not going to be allowed to happen. They may actually lose some money this year but they will stay alive.

That is what people in the real world do to adjust to conditions outside of their control.

Traders and some investors are looking at their current trading position like actors looking at their current show. Business people do what they need to do to still be in business five years down the road.

The financial experts are saying oil production will fall in the next few months because oil companies will lower production and then prices will rise. Devon’s CEO John Richels says his company will pump as much oil as they possibly can to stay in business regardless of the price.

My money is on the man that operates in the real world.

In problem solving situations, we can think globally, perhaps borne out by our multitasking roles as, wife, mother, daughter, worker, citizen, among others. When faced with problems, we are capable of viewing all aspects of the problem and their interrelationships and interconnectedness, and adopt a broader perspective towards finding a solution. On the other hand, they say that men are “linear thinkers”. They dissect a problem into its parts and solve each one at a time.

Women are more sensitive because we are more in touch with our feelings and better able to express ourselves. We can empathize easily and have a more caring attitude, which make us good caregivers.

Thus, in human relationships, women tend to communicate better using nonverbal cues such as tone, emotion, touch, etc. Men are more task-oriented and talk less. They are less emotional and may not easily understand emotions and nonverbal language.

In stressful situations, women tend to take care of themselves and their loved ones, and look to groups or bonds for support. Men either fight stress or just disregard stress completely. Our threshold for pain is higher, so much so that we can endure childbirth, while men tend not to vocalize their pain and perceive pain less intensely as women do.

There are many more situations I can write about but the challenge is to harness these good qualities and strengths of the female gender. We

need more initiatives towards improving women’s economic inclusion and participation in society. It is a fact that in today’s modern world, women still face challenges that limit their ability to advance socially and economically.

After all the euphoria generated by the Papal visit, let us heed the call of Pope Francis to “allow enough space for women”. Let us adopt policies and programs that will tap the productivity of women and mainstream them in all sectors of society. Pope Francis himself was quoted on the unique role of women in the Church, as he said: “A woman has a different make up than a man. But what I hear about the role of women is often the ideology of machismo. The church cannot be herself without the woman and her role.

The woman is essential for the church. “ “We must therefore investigate further the role of women in the church.

We have to work harder to develop a profound theology of the woman. The feminine genius is needed whenever we make important decisions.”

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.

Boots Geotina-Garcia is Chairperson of Women’s Business Council Philippines Inc. (WomenBizPh) and also founding member of Business and Professional Women, Makati (BPW Makati) and Samahan ng Pilipina para sa Reporma at Kaunlaran (Spark). A CPA by profession, she provides consulting and financial advisory services to public and private sector clients, both local and international.

opinion@businessmirror.com.ph

Opinion

Gong Hei Fat Choy

Evangelii Gaudium

BusinessMirror

Teddy Locsin Jr.

Rev. Fr. Antonio Cecilio T. Pascual

Free fire

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VERY New Year we make a resolution to lose weight so as to be attractive to the opposite sex and we start a diet too hard to keep. Of course nothing happens.

Yesterday, Chinese celebrated Chinese New Year without making any resolution and yet they get richer and that always gets the girls. Just because Chinese like to party, Cardinal Tagle gave them dispensation from fast and abstinence on Ash Wednesday so they can join the gluttony of other Filipinos on the same day.

Just to be safe Chinese celebrate both New Years. What do you think this means? For one, they hedge.

For another, it means Chinese are smarter than others. They always get their wishes because they wish only for things it is possible to get; like (1) more money if they work harder and (2) the Spratlys.

Instead of talking, Mainland Chinese are carrying out reclamation projects in disputed waters. They are doing this to prove the authenticity of ancient title deeds covering lands

that did not exist when the documents were written. This is not unlike issuing a postdated check and being good for it.

The other day a US naval intelligence officer stood up and told us that China is preparing for war and then sat down and that was that. If a Chinese naval intelligence officer told us the same thing about another country, you can bet he wouldn’t just sit down right after. He would go down to the docks to greet the battleship that China would be giving us to do something about the war he had talked about.

One day we shall celebrate just one New Year and it won’t be on January 1st. Gong Hei Fat Choy and Tung Fang Hung, which is to say The East is Red, an anthem repeatedly played everywhere when I was in China during the Cultural Revolution.

SERVANT LEADER 52nd part

Relations with Judaism

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E hold the Jewish people in special regard because their covenant with God has never been revoked, for “the gifts and the call of God are irrevocable” (Romans 11:29). The Church, which shares with Jews an important part of the sacred Scriptures, looks upon the people of the covenant and their faith as one of the sacred roots of her own Christian identity (cf. Romans 11:16-18). As Christians, we cannot consider Judaism as a foreign religion; nor do we include the Jews among those called to turn from idols and to serve the true God (cf. 1 Thessalonians 1:9). With them, we believe in the one God who acts in history, and with them we accept his revealed word.

Dialogue and friendship with the children of Israel are part of the life of Jesus’ disciples. The friendship which has grown between us makes us bitterly and sincerely regret the terrible persecutions which they have endured, and continue to endure, especially those that have involved Christians.

God continues to work among the people of the Old Covenant and to bring forth treasures of wisdom which flow from their encounter with his word. For this reason, the Church also is enriched when she receives the values of Judaism. While it is true that certain Christian beliefs are unacceptable to Judaism, and that the Church cannot refrain from proclaiming Jesus as Lord and Messiah, there exists as well a rich complementarity which allows us to read the texts of the Hebrew Scriptures together and to help one another to mine the riches of God’s word. We can also share many ethical convictions and a common concern for justice and the development of peoples.

Interreligious dialogue

AN attitude of openness in truth and in love must characterize the

dialogue with the followers of nonChristian religions, in spite of various obstacles and difficulties, especially forms of fundamentalism on both sides. Interreligious dialogue is a necessary condition for peace in the world, and so it is a duty for Christians as well as other religious communities. This dialogue is in first place a conversation about human existence or simply, as the bishops of India have put it, a matter of “being open to them, sharing their joys and sorrows.”

In this way we learn to accept others and their different ways of living, thinking and speaking. We can then join one another in taking up the duty of serving justice and peace, which should become a basic principle of all our exchanges. A dialogue which seeks social peace and justice is in itself, beyond all merely practical considerations, an ethical commitment which brings about a new social situation. Efforts made in dealing with a specific theme can become a process in which, by mutual listening, both parts can be purified and enriched. These efforts, therefore, can also express love for truth.

In this dialogue, ever friendly

Saturday, February 21, 2015

and sincere, attention must always be paid to the essential bond between dialogue and proclamation, which leads the Church to maintain and intensify her relationship with non-Christians. A facile syncretism would ultimately be a totalitarian gesture on the part of those who would ignore greater values of which they are not the masters. True openness involves remaining steadfast in one’s deepest convictions, clear and joyful in one’s own identity, while at the same time being “open to understanding those of the other party” and “knowing that dialogue can enrich each side.” What is not helpful is a diplomatic openness which says “yes” to everything in order to avoid problems, for this would be a way of deceiving others and denying them the good which we have been given to share generously with others. Evangelization and interreligious dialogue, far from being opposed, mutually support and nourish one another.

Our relationship with the followers of Islam has taken on great importance, since they are now significantly present in many traditionally Christian countries, where they can freely worship and become fully a part of society. We must never forget that they “profess to hold the faith of Abraham, and together with us they adore the one, merciful God, who will judge humanity on the last day.” The sacred writings of Islam have retained some Christian teachings; Jesus and Mary receive profound veneration and it is admirable to see how Muslims both young and old, men and women, make time for daily prayer and faithfully take part in religious services. Many of them also have a deep conviction that their life, in its entirety, is from God and for God. They also acknowledge the need to respond to God with an ethical commitment and with mercy towards those most in need.

In order to sustain dialogue with Islam, suitable training is essential for all involved, not only so that they can be solidly and joyfully

grounded in their own identity, but so that they can also acknowledge the values of others, appreciate the concerns underlying their demands and shed light on shared beliefs. We Christians should embrace with affection and respect Muslim immigrants to our countries in the same way that we hope and ask to be received and respected in countries of Islamic tradition. I ask and I humbly entreat those countries to grant Christians freedom to worship and to practice their faith, in light of the freedom which followers of Islam enjoy in Western countries!

Faced with disconcerting episodes of violent fundamentalism, our respect for true followers of Islam should lead us to avoid hateful generalizations, for authentic Islam and the proper reading of the Koran are opposed to every form of violence.

Non-Christians, by God’s gracious initiative, when they are faithful to their own consciences, can live “justified by the grace of God,” and thus be “associated to the paschal mystery of Jesus Christ.”

But due to the sacramental dimension of sanctifying grace, God’s working in them tends to produce signs and rites, sacred expressions which in turn bring others to a communitarian experience of journeying towards God. While these lack the meaning and efficacy of the sacraments instituted by Christ, they can be channels which the Holy Spirit raises up in order to liberate non-Christians from atheistic immanentism or from purely individual religious experiences.

The same Spirit everywhere brings forth various forms of practical wisdom which help people to bear suffering and to live in greater peace and harmony. As Christians, we can also benefit from these treasures built up over many centuries, which can help us better to live our own beliefs.

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.

The Mindanao problem: Complex problems; experimental solutions Cecilio T. Arillo

database Part 3 of 4

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HE problems in Mindanao are complex and the solutions applied by the government for the past five decades, with the exception of President Estrada who launched an all-out-war, from President Marcos, to President Corazon Aquino, to President Fidel V. Ramos, to President Arroyo and now President Benigno Aquino III, were mostly experimental and fraught with danger.

In his time, President Marcos adopted a war and peace policy, killing thousands of Moro rebels, wounding many of them, and forced the Moro National Liberation Front (MNLF) leadership to surrender while a handful fled to the Middle East, Pakistan and North Africa. When he was deposed in 1986, the rebels, leaderless, were already on the run and many of them have returned to the fold of the law.

His successor Corazon C. Aquino, the housewife, who was swift to the presidency by the 1986 military-led Edsa Revolution that saw the end of the Marcos regime, inherited the Mindanao conflict but applied the wrong solution and merely compounded the problem.

Upon assumption in office, Mrs. Aquino allowed the return of Misuari and other members of the MNLF Central Committee from Libya, arbitrarily abolished the 1973 Philippine Constitution, under which the MNLF agreed to discuss and resolve the Mindanao issue as mandated in the Tripoli Agreement, dismantled the unicameral Legislative Assembly, hand-picked 48 men and women,

including communists and prelates, formed her own Constitution (1987), organized a bicameral Congress, called a national election to elect the 24 members of the Senate and the 200 members of the Lower House and, among others, created the provinces of Sulu, Tawi-Tawi, Maguindanao, an Lanao del Sur into an Autonomous Region of Muslim Mindanao (Armm) without proper consultation with the key political leaders in Mindanao.

40,000 more lives lost

THE creation triggered a similar demand from the Christians to create their own autonomous region as the MNLF demanded that their territory be expanded. Before she left office, many parts of Mindanao were again raging in battle between government forces and MNLF rebels whose armed strength increased to 25,000 combatants. The death toll in Mindanao in President Aquino’s regime was estimated at more than 40,000, mostly innocent civilians.

In President Ramos’s time

PRESSURED by Libya, Saudi Arabia and some other OIC members, Presi-

dent Ramos, after taking over the Presidency from Mrs. Aquino, forged a truce with the MNLF and acceded to its demands to create the Southern Philippines Council for Peace and Development to expand Armm’s territory, and to integrate more than 7,000 MNLF fighters into the armed services. Ramos also allowed MNLF Chairman Nur Misuari to run for governor of the Armm in what appeared to be a one-sided election.

On September 22, 1992, Ramos apparently unmindful of its consequences, repealed Republic Act 1700, otherwise known as the antisubversion law, the country’s only national security law that criminalizes communist and separatist organizations and membership thereof, as part of his reconciliation and accommodation policy, hoping that in time all subversive elements, including the 25,000-strong communist New People’s Army, would come down from the hills, give up their arms, settle in peace, and give him a chance to win the most coveted Nobel Peace Prize The repeal actually created a national security vacuum and soon two terrorists organizations in Mindanao, the Moro Islamic Liberation Front (MILF) headed by Hashim Salamat, Misuari’s rival, and the Abu Sayyaf, surfaced with the latter sowing terror, attacking Christian villages, killing and beheading innocent civilians, and staging kidnapping and armed robberies in Basilan, Sulu, Tawitawi, Palawan, and the Zamboanga Peninsula.

For its part, the MILF with more than 10,000 fighters, including veterans of the Afghan conflict, declared war against the Ramos government, occupied more than 500,000 hectares in Central Mindanao, established 47 military camps, and declared them as their own Bangsa Moro Repub-

lic. But because of the repeal of the anti-subversion law by the Ramos government, the police could not do anything, forcing the government to employ its armed forces to check the expansion of the MILF.

Another 20,000 people died

AS fighting erupted in many areas of Central Mindanao between soldiers and MILF rebels, the Ramos government declared a unilateral ceasefire, asked the MILF to talk peace, and as a gesture of sincerity, turned over some of the government irrigation projects in Maguindanao and Cotabato provinces to the MILF to improve their farming capability.

But instead of doing that, the MILF converted the irrigation canals into a network of underground tunnels and bunkers, using them to interdict government forces. Then they set up road blocks and taxed commuters from Marawi City passing through the Narciso Ramos Highway, a long stretch of national road built by the government and named after President Ramos’ father.

Between 1992 and 2000, close to 20,000 more people died in Central Mindanao, Zamboanga Peninsula, Basilan, Sulu and Tawii-Tawi.

The Ramos administration spent more than P29 billion in Mindanao but most of this could not be accounted and leaders from both houses of Congress demanded the investigation of Misuari and other key MNLF leaders.

In reaction, Misuari and his MNLF fighters met in Jolo, denounced the government for persecuting him, and soon fighting erupted again between the MNLF and government forces, who at the end of the Ramos regime in 1998, were fighting five fronts: against the MNLF, MILF, Abu Sayyaf and Jemaah Islamiyah in Southwestern and Central Mindanao, and

the communist rebels in the Davao provinces and Northern Mindanao.

Misuari was subsequently arrested and detained.

President Estrada, upon assumption in office, ordered the MILF fighters to surrender their arms if they really want peace, but instead of heeding his call, the MILF attacked two Christians towns, Kolambugan and Kauswagan, in Lanao derl Norte, killing scores of military men and innocent civilians.

As a result, Estrada adopted a total war policy despite restraint applied on him by some misguided American officials in Washington and exacted a heavy toll on the rebels, recovered the 47 camps they occupied and before he was deposed from power by a conspiracy, the rebels appeared to have capitulated.

With his camps in ruins and the military in hot pursuit, Hashim Salamat, the MILF head, then 68 years old, was constantly on the run, thus taking a toll on his failing health. In July 2003, he died of a heart attack.

Ibrahim Murad succeeded Salamat as chairman of the MILF.

In Arroyo’s time

FOR her part, President Arroyo naively revived the policy of reconciliation and accommodation and returned most of the recovered camps to the rebels as a pre-condition to another peace process with the intervention of the US and Malaysia. In short, she was back to square one with no concrete end in sight to stifle the Mindanao conflict.

Shortly thereafter, MILF terrorists attacked the mining and fishing town of Siocon, killing 34 soldiers, poliecmen and civilians, including two priests, Marino Acedo and Rhuby Mar Buagas, both assigned to the Holy Cross Parish, in an apparent act of treachery and complete disregard

A7

to the scheduled peace talks.

In reaction, President Gloria Macapagal-Arroyo called the Siocon attack “an act of terrorism” and has sworn to pursue the perpetrators.

Aside from the attack on the Siocon town in Zamboanga del Norte Province, the MILF was also linked to a similar raid in the town of Maigo in Lanao del Norte Province in which 13 civilians died.

Jesus Dureza, presidential assistant for Mindanao affairs, said the government has decided to take “punitive action” and will give rewards for the arrest of the top brass of the MILF. “The government feels that it is its bounded duty to protect the civilians and also prevent further similar incidents to take place,” Dureza said of the Siocon and Maigo incidents.

Included in the arrest order were MILF chairman Hashim Salamat, vice chairman for military affairs Al Haj Murad, vice chairman for political affairs Ghazali Jaafar, chief peace negotiator Ali Mimbantas and spokesman Eid Kabalu.

They each carried a bounty of P5 million with an additional P25 million by the government as reward money, Dureza said.

Curiously, the reward announcement was made amid a debate on whether to push through with a second round of exploratory talks with the MILF in Malaysia or elsewhere outside the country on the possibility of opening formal peace negotiations.

In the nine years of the Arroyo regime, the MILF had engaged the government in a cycle of peace talks, ceasefires, expansion of territories, attacks and other acts of terrorism, prompting a ranking military officer to say that the “negotiating table is just an extention of the battle field by the MILF and a strategy to create for its fighters a belligerent status and finally, a statehood.”

2nd Front Page BusinessMirror

A8 Saturday, February 21, 2015

External sector strength seen shielding Manila from volatilities

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By Bianca Cuaresma

he Philippines is among a handful of countries in the region seen insulated from potential external shocks this year because of the considerable flexibility afforded the $272-billion Southeast Asian country in the form of its fortified external sector, the global credit watcher Moody’s Investors Service said.

In a research note released this week, Moody’s said the Philippines—along with other Asian economies that include China,

Taiwan, India, South Korea and Thailand—should only experience “minimal external volatility” in the months immediately ahead.

In particular, Moody’s said the country’s current-account surplus, gross borrowing requirement, as well as its inflation rate and its loans-to-deposit ratio are categorized at levels that give it “minimal external vulnerability.” Moody’s also said the amount of debt the Philippines has accumulated potentially translates to moderate vulnerability to such shocks as a disorderly flow of capital to safer havens, like the US and countries in the euro zone.

Nevertheless, Moody’s said the region’s solid fundamentals, as a whole, should continue to support Asia’s credit conditions.

“Asia’s sound fundamentals are likely to become increasingly

evident as global macroeconomic challenges come to the fore in 2015.

The region is supported by healthy external vulnerability metrics, monetary-policy credibility, the positive effects of weaker oil prices and economic-reform momentum.

These factors will continue to attract institutional investors, anchor capital inflows and support overall credit-market stability,” the global credit watcher said.

Moody’s also said external vulnerabilities and policy constrains are generally lower in Asia than in other emerging regions.

“Our 2015 projections for major external vulnerability metrics and policy flexibility suggest that Asia is relatively well placed to deal with

global challenges, such as a US dollar appreciation, rising Treasury yields and other exogenous shocks.

Liquid banking systems will also be supportive in the event of tighter external financing conditions,” according to Moody’s.

The oil-price collapse and the vigorous economic-reform agenda that the region is currently seeing should also help shield the region from other risk factors in the global economy.

The risk factors include the slowdown of economic activities in China; the normalization of US interest rates; the uneven pace of global growth; and monetarypolicy disharmony in Japan and euro-area countries.

China expands islands on disputed reefs in South China Sea . . .

Washington has urged China and the five other nations to resolve the territorial dispute peacefully.

Artificial islands also have grown substantially over the last year at the Gaven Reef, South Johnson Reef and the Fiery Cross Reef, other outcrop-

pings in the Spratly Islands occupied

by China, according to Jane’s and a new report by a policy group that follows Asia maritime issues.

At Fiery Cross Reef, Chinese dredgers created a land mass that “spans the entire existing reef and

is approximately 3,000 meters long and 200 to 300 meters wide,” according to a February 18 report by the Asia Maritime Transparency Initiative, part of the Center for Strategic and International Studies, a nonpartisan Washing-

ton think tank.

Several other countries have built small military outposts on parts of the Spratly Islands, but they are dwarfed by the Chinese construction.

Taiwan has stepped up construction at Itu Aba, the only island it

Continued from A1

occupies in the South China Sea. Taiwan is expanding the port to accommodate frigates and coast guard cutters and improving a 1,200-meter runway that is mostly used by C-130 cargo planes, the report said. TNS

Wholesale prices up 2.7 percent in 2014 despite oil-price slump–PSA Continued from A1

In Luzon the GWPI posted a year-onyear growth of 2.5 percent in 2014, despite lower wholesale prices of fuel and the slowdown in the wholesale prices of food. Data showed that fuel prices posted a 2.3-percent decline last year, while the food index posted a slowdown of 4.6 percent in 2014.

In December 2014 the GWPI in Luzon declined 4.8 percent on the back of a 28.1-percent decline in crude prices. Food prices, meanwhile, posted a growth of 1.6 percent, the same rate posted in November 2014.

In the Visayas the GWPI posted an average growth of 3.2 percent due to the 5.3-percent expansion in food prices.

Fuel prices, meanwhile, posted a decline of 0.6 percent in 2014.

Last December the GWPI declined by 1.2 percent on the back of a 19.5-percent decline in fuel prices. Food prices, however, posted a growth of 3.5 percent.

In Mindanao the GWPI rose by an

average of 4.3 percent in 2014, slower than the 7 percent posted in 2013. This was largely due to the 0.5-percent decline in wholesale fuel prices and the slowdown in the wholesale prices of food last year.

Last December wholesale prices declined by a minimal 0.8 percent, as fuel prices went down by 23.3 percent. The increase in food prices also was slower at 4 percent during the same period.

The GWPI measures the changes in the price levels of commodities that flow into the wholesale trade intermediaries.

Wholesale price refers to the price of commodity transacted in bulk for further resale or processing. It is the actual “spot” transaction price received usually by the wholesalers, distributors or marketing agents for large lots but net of discounts, allowances and rebates.

The PSA also said the GWPI is the sum of the producer price, wholesale trade margin, tax mark-ups and distribution cost of the wholesaler.

www.businessmirror.com.ph

Oil prices to fall as expanding stockpiles add to global glut

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il headed for the first weekly decline in a month as US crude stockpiles expanded to a record, adding to a global glut that drove prices lower in the last year.

Futures were little changed in New York and poised to drop 2.3 percent this week. Crude inventories rose to 425.6 million barrels through February 13, the highest level in weekly records compiled by the Energy Information Administration (EIA) since August 1982. Oil will fall to $39 a barrel because a pullback in US production is delayed, according to Goldman Sachs Group Inc. Rising US oil supplies have contributed to a global oversupply of crude that sent prices almost 50 percent lower in 2014. The nation’s output is set to fall this year as drastic drilling cutbacks take hold faster than projected, according to EOG Resources Inc., a shale producer, contradicting estimates for increasing supply, including those by the EIA. “Oil inventories weighed on crude,” Phil Flynn, a senior market analyst at the Price Futures Group in Chicago, said by e-mail. “Still, in the big picture, we are hearing about more production cutbacks and spending cuts.”

West Texas Intermediate for March delivery, which expires on Friday, was up 41 cents at $51.57 a barrel in electronic trading on the New York Mercantile Exchange at 1:53 p.m. Sydney time. The moreactive April future gained 40 cents to $52.23 on Friday. Front-month prices slid 98 cents to $51.16 on Thursday. The volume of all futures traded was about 73 percent below the 100-day average. Prices are down 3.2 percent in 2015.

Crude stockpiles

Brent for April settlement was 30 cents higher at $60.51 a barrel on the London-based ICE Futures Europe exchange. The contract declined 32 cents to $60.21 on Thursday. The European benchmark crude was at a premium of $8.26 to WTI for the same month, compared with $7.85 on February 13.

US crude stockpiles increased by 7.7 million barrels last week, more than double the median estimate in a Bloomberg News sur vey. Production surged by 54,000 barrels a day to 9.28 million a day, the highest level in weekly estimates compiled by the Energy Department’s statistical arm since January 1983.

Bloomberg News

SEA EXPO IN MANILA European Chamber of Commerce of the Philippines President Michael Raeuber (center) talks to sales personnel of Raptor Special Edition Speed Boat during the SEA-EX 2015, the country’s premier boat show and nautical-lifestyle expo held at the SMX Convention Center in Pasay City. NONIE REYES