BusinessMirror February 23, 2015

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

U.N. Media Award 2008

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‘BOLD MOVE’ TO CONSTRUCT ‘MEGA PORT’ OUTSIDE METRO BEING STUDIED AS CONTAINER VOLUME SEEN TO DOUBLE IN 5 YEARS

Govt mulls over building ‘mega port’

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By Catherine N. Pillas & Lorenz S. Marasigan

rade Secretary Gregory L. Domingo disclosed the administration’s plan to jump-start the construction of a “mega port” outside Metro Manila in preparation for the doubling of container volume in five to eight years.

Domingo said this is the “bold move” that the National Economic and Development Authority (Neda) Board, which is chaired by President Aquino, has been discussing.

This is despite the success of the government and the private sector to end—for now—the congestion at the ports in Manila, a full year after the first round of logjam at the terminals that affected the country’s inflation and economic expansion.

This is also amid the announcement of International Container Terminal Services Inc. (ICTSI) that it will be increasing the capacity of Manila International Container Terminal (MICT) and Subic Bay International Terminal (SBIT), through the deployment of new equipment.

“We continue to grow 10 percent in terms of volume of containers every year; so in five to eight years, the load Continued on A2

THIRD OIL-PRICE HIKE THIS MONTH DUE ON TUESDAY

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By Lenie Lectura

rices of petroleum products are going up again this week.

The price adjustment, according to industry sources, is anywhere from P0.75 to P1 per liter for both gasoline and diesel.

It is expected to take effect on Tuesday. If this pushes through, the upward price adjustment will be the third this month.

On February 17 local pump prices increased by P1.15 per liter for gasoline and P1.50 per liter for diesel.

A week prior to that, oil firms implemented a P2.40-per-liter increase for gasoline products,

P2.15 per liter for kerosene and P1.90 per liter for diesel.

The increase reflects the oilprice movement in the world market. The upward price adjustments come after weeks of oil-price rollbacks.

Since the start of the second semester of 2014, when international oil prices started to drop until the first week of February 2015, gasoline and diesel prices have decreased by P18 to P19 per liter.

Since the year started, gasoline prices have decreased four times, totaling P3.60 per liter, while diesel cost has been rolled back five times, amounting to over P4 per liter.

PESO exchange rates n US 44.2360

This July 14, 2014, file photo shows hundreds of container vans piled at the Manila North Harbor Port in Tondo, Manila. Data from the Philippine Ports Authority showed that port-usage level in Manila has declined to 76.5 percent as of Friday, well within the ideal utilization range. ALYSA SALEN

First Pacific expands into coconut-oil manufacturing

By VG Cabuag

ESPINOSA: “Our palm-oil plans are on hold, as we prioritize investments in the sugar and coconut sectors.”

H

ong Kong-based First Pacific Co. Ltd. has ventured into coconut cooking oil, after it leased a facility in Davao City sequestered by the government, while putting its palm-oil initiative on hold.

Ray Espinosa, First Pacific associate director, said the company has leased one of the facilities of Legaspi Oil Co.Inc. in Davao. The company, however, is still determining how much capacity it will build.

“We leased it from the PCGG

[Presidential Commission on Good Government]. We will build a new line there,” Espinosa said.

He said the company is currently in talks with several partners for its cooking-oil venture.

Espinosa added that the company is in talks with several partners for the venture, which follows First Pacific’s entry into the sugar business last year. He said a plan for the Davao coconut facility will be out within the year.

Legaspi Oil is one the coconutoil millers sequestered by the PCGG in 1986 for its ties with the

late President Ferdinand Marcos.

It produces one of the country’s cooking-oil brands, such as Minola Oil, crude coconut oil, fully refined oil and cake meal. According to its web site, the company’s facilities in Legaspi City have a milling capacity of 400 metric tons per day, with certifications for halal and kosher.

First Pacific earlier said it will venture into palm oil in the Philippines, and is targeting a 30,000-hectare farm in Davao Oriental for possible palm-oil plantation and production.

Its unit, PT Indofood, sent a team to Continued on A12

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)

News A2

Monday, February 23, 2015

BusinessMirror

Govt mulls over building ‘mega port’ Continued from A1

at the ports will double. We cannot accommodate that increase,” Domingo said in a radio interview.

MICT, the flagship operation of ICTSI and the country’s largest international container terminal, has an annual capacity of 4.2 million 20-foot equivalent units (TEUs).

According to the trade chief, ICTSI and Asian Terminals Inc., operator of Manila South Harbor and Batangas port, are limited in the long term to expand capacities to meet increasing container volume. Batangas, on the other hand, is already fully utilized.

“We need a bold move. Either a new mega port in Cavite or [we] look for another port outside Manila that is close. In five to eight years, the volume will double and it will take at least five years to build a port. The Neda Board has discussed this,” Domingo said.

Domingo said the South Luzon Expressway-North Luzon Expressway (Slex-Nlex) connector road will, likewise, aid in decongesting container volume.

“In the long term, we need to build a bigger port; a modern mega port, which has access from outside the city,” Domingo repeated.

Data from the Philippine Ports Authority (PPA) showed that port-usage level in Manila has declined to 76.5 percent as of Friday, well within the ideal utilization range.

The percentage reflects the steady decline of congestion at the two ports in the capital, which currently holds a total of 62,300 TEUs of laden and empty containers.

The combined number of vessels waiting at pilot stations, likewise, declined to five, excluding

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vessels currently at berth with a total of 10 ships. Vessel turnaround time still remains at two days, while the average yard productivity for both ports is at 18 moves per hour per crane.

PPA General Manger Juan C. Sta. Ana said the current level is 3.5 percentage points lower than the 80-percent utilization-level target set by the Cabinet cluster on port congestion.

“The continued decline in the utilization level of the Manila ports is a clear manifestation of a healthy government and private-sector partnership,” he said.

This current print is a reflection of downtrend in congestion that MICT and Manila South Harbor have been experiencing after the visit of Pope Francis in January this year.

Transportation Undersecretary Julianito G. Bucayan Jr. said this victory was won by the collaborative effort of the government and private sector.

Hence, he said, the two camps must continue to play their roles in coming up with a win-win solution in addressing every concern affecting the Philippine supply chain.

A sound and harmonious relationship between the government and the private sector, he added, is a key factor in making the country move toward achieving its dream of being a major global player in the shipping and shipbuilding industries.

“One of the good examples of a good-government and private-sector partnership is the issue of port congestion, wherein both sectors agreed to sacrifice certain aspects of their operations to solve port congestion,” Bucayan explained.

The partnership between the

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state and the port players should continue to flourish, he said, to prevent a repeat of the port logjam that started in February last year and ended last month.

“As we continue to move forward, both the government and the private sector agreed to continue to give timely solutions in order to prevent such situation from happening again,” the transport official stressed.

This partnership could also expand the economic benefits that await the Philippines in the Brunei Darussalam-Indonesia-MalaysiaPhilippines East Asean Growth Area (BIMP-Eaga).

“We believe that if the government and the private sector have sound relationship, we can easily address issues of trade bottlenecks not only in the Philippines, but also in the BIMP-Eaga, as it offers very good growth areas now and in the future,” Bucayan added.

Sta. Ana echoed the undersecretary’s claims, saying that the two sectors could each learn vital points in operating, maintaining and expanding the ports in the Philippines.

“Government and privatesector partnership is vital, particularly as we gear toward green and sustainable port operations, as well as adopting best practices and norms of today toward a fully revolutionized port operation,” Santa Ana said.

The yearlong port logjam, which caused inflation in particular months last year to balloon, was a result of several factors, including a rapid economic expansion and the imposition of a truck ban in Manila. The regulation was lifted in September, making way for the partial decongestion of the terminals.

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The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Monday, February 23, 2015 A3

SAF 44 deaths continue to rattle Aquino legislative, peace agenda

By Rene Acosta, Butch Fernandez & Jovee Marie N. dela Cruz

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HE death of 44 members of the Special Action Force (SAF) during a Philippine National Police (PNP) operation has given birth to pundits as Malacañang continues to weigh options in pushing the President’s legislative and peace agenda in Mindanao.

One former military official, for one, is recommending that the government drop the Bangsamoro basic law (BBL) but craft another measure for Moros in Midanao as he deplored what he says is the administration’s peace appeasement for the Moro Islamic Liberation Front (MILF).

Ret. Maj. Gen. Emmanuel Teodosio, who was at the Philippine Military Academy’s homecoming over the weekend, said the government should start talking on a different framework with the MILF as a result of the killing.

“They should reexamine this BBL and start another talk on a different framework if only to listen to the outrage of the Filipino people. They should shelve it and start again on another framework.”

Last week lawmakers suspended discussions on the BBL pending a Board of Inquiry (BOI) report on the January 25 encounter in Mamasapano, Maguindanao, that killed 44 members of the PNP-SAF. The Lower House had originally set the BBL’s approval on third and final reading before the end of February.

A week before that schedule on Friday, the BOI said it submitted to PNP Deputy Director General Leonardo Espina its third progress report. A BOI statement said they are still awaiting statements of three of the 346 SAF commandos deployed to Mamasapano.

Over 400 people from within and outside the police and military organizations have been interviewed since the board was created on January 26.

Some quarters have demanded that President Aquino also provide information to the BOI whether through personal testimony or a sworn statement.

But Communications Secretary Herminio B. Coloma Jr. told the BusinessMirror on Sunday that he still has to pop up the question. “I have not asked him on the specifics you have mentioned,” Coloma said.

Coloma admitted he was “also unaware if the BOI or any other entity has formally communicated any such request.”

The President’s presence at the BOI proceedings was seen earlier as a means to help the board put together a clearer picture of the roles and culpability—if ever—of the key police officers involved in Mamasapano and who the President was in contact with either before, during or after the police operation.

Still, Coloma affirmed Mr. Aquino’s commitment to back probers’ efforts to find out what really happened in the Mamasapano raid that also killed 18 Moro rebels and five civilians caught in the crossfire. “He [President Aquino] is committed to the process of ferreting out the truth.”

President Aquino’s role has drawn much public attention owing to seemingly contradictory details thus far given by various parties on how much he knew of the arrangements before the SAF was deployed to apprehend Malaysian terrorist and Jemaah Islamiyah leader Zulkifli bin Hir, alias Marwan, and Filipino bomb maker Abdul Basit Usman.

Saber-rattling

AMID the probe, people like Teodosio remain bristling, even calling for a “rematch” between government forces and members of the MILF and the Bangsamoro Islamic Freedom Fighters (BIFF) who clashed with the police commandos in Mamasapano.

“Let’s have a rematch if it is what they are looking for,” he said, reacting to the statements of the MILF that it will not surrender its fighters involved in the killing, and for the BIFF’s comment that it will not return the firearms of the killed policemen.

“They [BIFF] were saying they are outside the negotiation talks with the MILF. Well, the Armed Forces [of the Philippines] should conduct operations there,” Teodosio said but who also chided the AFP for what he calls “failure to respond” to the PNP-SAF’s request for reinforcement.

“Okay, there is no good coordination, there is no good planning, but you know that your men were pinned down there, your brothers even. Even if they were PNP [members], the Armed Forces should have done more decisive…help those forces down there.”

Former Army Commanding General Lt. Gen. Arturo Ortiz, on the other hand, cited similarities in the death of the 44 SAF members and the case of the 19 Special Forces and Scout Rangers who were killed by the MILF and the Abu Sayyaf Group in Basilan in 2011.

Later the case was investigated—centering on the claim of the MILF that the military did not coordinate with them in entering its territory—leading to the relief of Special Forces commanders and even to the demotion in rank of another senior officer.

“Nothing has happened still, the case was already forgotten by people who were supposed to pursue it,” he said, adding, “I hope it will not happen in the case of the Mamasapano.”

He added that what is sad is that the soldiers were punished while the government did not lift a finger against the MILF. “We were punished. On the other side, there was none. The troops ended pitiful, it was them who suffered.”

Ortiz said he is “doubtful” whether the Aquino administration can still strike an agreement with the MILF, particularly through the BBL.

Meanwhile, Defense Secretary Voltaire T. Gazmin refused to say what course of actions they would take in the event that the MILF will not surrender its fighters who were involved in the ambush of the SAF personnel. “We will cross the bridge when we get there,” he told military reporters.

He said the Mamasapano case will never be repeated because “there’s too much at stake for the MILF.” Gazmin said that they are also bank-

ing on the sincerity of the MILF in the peace talks by providing the government with the list of members of the BIFF who were also involved in the killing of the commandos.

He said the military will run after the BIFF members. The defense secretary bucked the statement of the MILF that it will not accept any watered down version of the BBL, saying the state could not be threatened.

Enough time

LIBERAL Party Rep. Antonio Rafael del Rosario of Davao del Norte, a member of the House special ad hoc panel on the BBL, said the lower chamber still have four months to work on the proposed law, which seeks to stop the conflict in Mindanao.

“We still have time [to pass the BBL] until the sine die adjournment [on June 12]. We should exhaust all means to have

peace in Mindanao. I still believe that the BBL is essential to ensuring that peace with our Muslim brothers,” del Rosario said on Sunday.

They should first cooperate with the ongoing investigations on the Mamasapano incident. They should also comply with the ongoing normalization process as stated in annexes of the Framework Agreement on the Bangsamoro, according to del Rosario.

Economy

A4 Monday, February, 23, 2015

BusinessMirror

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Bidding for Manila BRT to take place this year

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By Lorenz S. Marasigan

HE transportation department is planning to auction the multibillion-peso deal for the construction of a bus rapid transit (BRT) system in Metro Manila this year in a bid to address the growing demand for transport connectivity within the capital and its nearby cities.

Transportation Secretary Joseph Emilio A. Abaya said his office was supposed to present the much-needed infrastructure project to the National Economic and Development Authority (Neda) Board last Monday, but was pushed back to the next scheduled meeting this quarter.

He noted that the facility is just one of the key infrastructure projects that his office is aiming to roll out this year.

The others are the P370-billion Mass Transit System Loop and the P287billion North-South Railway System.

These are on top of the planned auction for other transport-facility projects, such as the Integrated Terminal System, the Davao Sasa Wharf and the Motor Vehicle Inspection System.

“We are planning to roll out the Subway, the Commuter Rails, the Manila BRT—the one on Quezon Avenue. In fact, we were supposed to present it, but we were pushed back to the second meeting,” he said in an interview, referring to the Neda Board, the planning body chaired by President Aquino.

The P4.9-billion Quezon Avenue BRT will run from Commonwealth in Quezon City to Manila City Hall, passing through España Boulevard. Another BRT system is eyed to be constructed along C-5 Road. It is currently being studied by the World Bank.

This year could be a banner year for the transportation department, given the magnitude of the public-private partnership deals to be auctioned off.

Currently, the Cabinet official’s office is tendering the operations and maintenance contract of the Light Rail Transit (LRT) Line 2, the deal to construct the ITS South Terminal and the modernization of the Bohol, Laguindingan, Puerto Princesa, Davao, Bacolod and Iloilo airports.

The project is one of the key infrastructure deals of the Aquino administration, which has awarded nine contracts since the program’s inception in 2010, namely: the P1.96-billion Daang Hari-South Luzon Expressway project, bagged by Ayala Corp. in 2011;

the P16.42-billion first phase of the PPP School Infrastructure Program, which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc., as well as the BF Corp.-Riverbanks Development Corp. Consortium; the P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013; the P3.86-billion PSIP Phase II contract, partially awarded in 2013 to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construction consortium; the P5.69-billion Modernization of the Philippine Orthopedic Center project, which went to the Megawide-World Citi Inc. consortium, also in 2013. the P1.72-billion Automatic Fare Collection System contract, awarded to the AF Consortium of Ayala and Metro Pacific Investments Corp. in 2014; the P17.5-billion Mactan Cebu International Airport New Passenger Terminal project, bagged in 2014 by Megawide Construction Corp. and GMR Infrastructures Ltd.; the P64.9-billion Light Rail Transit Line 1 Cavite Extension deal, awarded in 2014 to Light Rail Manila Consortium of Ayala and MPIC; and the P2.5 -bil lion Integrated Transport System Southwest Terminal, won by Megawide and partner Walter Mart Property Management Inc. of billionaire and retail magnate Henry Sy in January.

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

February 25 PHL retailers to give 2015 top regular work award to Megaworld founder day–Palace T

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alacaÑang has clarified that February 25, Edsa People’s Power Revolution anniversary, is a regular working day.

According to Communications Operations Office Secretary Herminio B. Coloma Jr., February 25 has been declared working holiday based on the Proclamation 831 issued by President Aquino on July 17, 2014. ”Based on the Proclamation 831, the 25th of February is working day for everybody. Holiday is for students only,” Coloma clarified in an interview with Radyo ng Bayan.

On Wednesday the Philippines will be celebrating the 28th anniversary of the bloodless revolution held along the 27-kilometter Edsa.

Called Edsa People Power, the revolution ended the oppressive regime of the late former President Ferdinand Marcos Sr., who ruled the country for almost 20 years.

Mr. Aquino will spearhead the Edsa People Power Revolution anniversary on Wednesday.

The President is the son of former Sen. Benigno “Ninoy” Aquino Sr., who was shot dead at the airport upon his return to the Philippines from exile in the US on August 21, 1983.

The death of Ninoy sparked series of demonstrations and the economy went down to depressing level, prompting Marcos to call presidential snap election on February 7, 1986, against Ninoy’s widow, Corazon Cojuangco-Aquino.

Marcos won in what was described as the most corrupt and deceitful election in the Philippine history.

The Filipinos had reached the height of their patience and solidified their discontentment in the Marcos leadership with their presence on the street that forced Marcos to leave Malacañang.

In the morning of February 25, 1986, President Cory Aquino was proclaimed as the 11th president and first lady president of the Philippines. PNA

he Philippine Retailers Association (PRA) will honor Megaworld Corp. Founder and Chairman Dr. Andrew Tan with its prestigious PRA President’s Award for 2015.

Tan will be officially included in the list of pillars and important contributors to the growth of Philippine retailing on February 25, during the gala night for the 18th Outstanding Filipino Retailers and Shopping Centers of the Year Awards at the Crowne Plaza Manila Galleria at Ortigas Center in Pasig City.

The PRA Board unanimously decided to bestow upon Tan, who chairs the conglomerate Alliance Global Group Inc., the title “Pillar of Mixed-Use Developments.”

Tan expanded the realm of the retail industry with his signature “live-work-play” concept in the development of fully integrated havens, like Eastwood City in Libis, Quezon City, and the McKinley Hill in Taguig.

“Dr. Tan gave retailers premium sites for expansion with ready markets coming from the residential and office components of his integrated developments. His invaluable contribution to the Philippine retail industry truly deserves PRA’s highest recognition,” PRA president Lorenzo “Enchong” C. Formoso, COO of Duty Free Philippines, emphasized.

Previous recipients of the President’s Award include Henry Sy (father of Philippine Retailing); Fernando Zobel de Ayala (Pillar of Philippine Retail Development); Jorge Araneta (pioneer of Philippine Retail Entertainment); Samie Lim (pioneering Pillar of Franchising); Socorro Ramos (Matriarch of Philippine Retailing); John Gokongwei Jr. (Champion of Retail Entrepreneurship); Ambassador Bienvenido Tantoco Sr. (Father of Luxury Retailing); Mariano Que (Father of Health and

tan

Wellness Retailing); and Teresita Sy-Coson (Philippine Retailing’s Woman Visionary Leader).

Also to be recognized during the PRA event are this year’s winners in the following categories: Full-Line Department Store/Hypermart, Food Retailer, Fashion, Services, Home Improvement Center, Most Promising Retailer, Regional Retailer, Specialty Retailer, Global Retailer of the Year, Shopping Center of the Year and Regional Shopping Center of the Year.

Evelyn Balmeo-Salire, PRA secretary-general, said the annual awards serve as PRA’s way of inspiring industry players to recalibrate their operations to be globally competitive.

“Retailers have become more aware of the stringent criteria for evaluating and judging the candidates and they know that when a company is awarded, they are truly world-class. This is why in the many years that we have been presenting the awards, the number of nominees, including self-nominations, has consistently increased,” Salire stressed.

Economy

BusinessMirror Editors: Vittorio V. Vitug and Max V. de Leon • Monday, February 23, 2015 A5

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Senators hit for meddling with IPSC implementation

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By Recto Mercene

he senators’ duty is to enact laws and not to stop the implementation of the International Passengers Service Charge (IPSC)—better known as terminal fee— according to airport and airline sources.

“The airline has to abide by the memorandum of agreement [MOA] they signed with the Manila International Airport Authority [Miaa] regarding the implementation of the terminal fee,” the airport source, who requested not to be named, said.

This is in reaction to the resolution of 22 senators asking the Miaa to recall its order integrating the terminal fee into the cost of an airline ticket until it comes up with a system automatically exempting the overseas Filipino workers (OFW).

The senators said in the resolution that “it was not shown that earnest efforts on the part of the Miaa were exerted to come up with a solution allowing OFWs and other locally recognized exempt passengers to claim their exemptions, even when buying their airline tickets through online transactions or abroad.”

The legality of the IPSC order was also questioned after doubts were raised about the existence of a governing board resolution authorizing the issuance of the memorandum circular.

The No to 550 Coalition has questioned the legality of the order through a petition for writ of injunction before a Pasay City court, which said the memorandum cannot be enforced and the lawyers of the Miaa have not filed motions to reverse the order, despite having complied with the publication of the order.

The coalition also said over 1.2 million

‘Cut consumption, help avert power crisis’

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tickets that will be purchased this year by OFWs and and their employers will total P660 million.

It is estimated that 90 percent of OFWs will not bother to collect the refund due to a cumbersome and lengthy process. It is estimated that about 10 percent will refund the P550 fee, thus, leaving around P600 million to be held by the Miaa.

The coalition said these amounts are private funds.

OFW groups said the Miaa memorandum violated Section 35 of Republic Act 8042, or the Migrant Workers and Overseas Filipinos Act of 1995, which exempts OFWs from paying travel tax, airport fees and terminal fees.

Among the senators who signed the resolution were Aquilino Pimentel III, Cynthia Villar, Nancy Binay, Ralph Recto, Loren Legarda, Ferdinand Marcos Jr., Sergio Osmeña III, Pia Cayetano, Teofisto Guingona III, Antonio Trillanes IV, Vicente Sotto III, Francis Escudero, JV Ejercito, Grace Poe, Gregorio Honasan, Manuel Lapid, Juan Edgardo Angara, Paolo Benigno Aquino IV, Majority Leader Alan Peter Cayetano and Senate President Franklin Drilon.

Airport chief Angel Honrado, in a text message, said copies of the Senate resolution were sent to the members of the Miaa board.

Meanwhile, departing passengers at the Ninoy Aquino International Airport terminals continue to line up at the counter to have their boarding pass stamped after airline representatives placed a notice to passengers.

Those who bought airline tickets that did not incorporate the P550 terminal fee have to pay them at the airport.

By Jovee Marie N. dela Cruz

lawmaker on Sunday said households and firms can help avert, or at least mitigate, the power outages that are expected to be experienced in Luzon this summer if they would only try their best in cutting their electricity consumption.

Nationalist People’s Coalition Rep. Rodolfo Albano III of Isabela, Minority Bloc in the House Committee on Energy, said all electricity consumers should support the government’s energy-saving program because “every kilowatt of electricity that is saved will definitely help mitigate the power shortage in the coming months.”

He also asked heavy electricity users in the private and government sectors to enlist in the government’s Interruptible Load Program (ILP).

“The ILP can only be effective and successful if all the heavy, large power users join the program and run their power-generating sets during the crisis period,” Albano said.

House Joint Resolution 21, which grants President Aquino emergency powers, wants the government to mainly use the ILP in generating additional power

Despite the integration of the P550 terminal fee into airline tickets since February 1, departing passengers still have to line up at the Ninoy Aquino International Airport Terminal 2 to have their boarding pass stamped, belying the claim of the Manila International Airport Authorities that queues would be abolished once the International Passenger Service Charge is included in airline tickets. Recto Mercene

PHL shares programs, best practices on technical education to Cambodia

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wenty high-level officials from Cambodia’s Ministry of Labor and Technical-Vocational Training and National Training Board visited the Philippines to learn from the best practices of the Technical Education and Skills Development Authority (Tesda).

From February 16 to 18, the Cambodia officials were exposed to the technical-vocational education and training (TVET) programs of Tesda.

“The international study tour was part of a program of the guest country to allow their senior officials and trainers to take a peek at our TVET policies, programs and practices in the Philippines,” Tesda Director General Joel Villanueva said.

Late last year Cambodia received assistance from the Asian Development Bank for a project titled “Strengthening Technical Vocational and Training,” which includes strengthening the institutional capacity of its TVET officials and trainers to plan and manage TVET in their country.

The TVET system remains in its infancy in Cambodia and needs reforms and resources to address gaps in access, quality and institutional capacity to make a sustained contribution to its national economy through quality education and training.

In its letter to Tesda, the business consultancy group Kath Marnane and Associates said the Philippines was chosen “as a good practice example due to its well-structured, organized and systemized TVET system, practices and policy.”

VILLANUEVA: “The international study tour was part of a program of the guest country to allow their senior officials and trainers to take a peek at our TVET policies, programs and practices in the Philippines.”

“Cambodia is very much interested in learning, through Philippine examples, ways in which to build a strong and proactive TVET that contributes positives to building a human-resource capital, which in turn, will improve the economic conditions of the country,” it added.

The Cambodian visitors personally met with Tesda officials in a visit to the Tesda office in Taguig City. They were introduced to the Philippine Qualification Framework, Quality Assurance and Tesda Management.

The delegates also visited TVET training Institutions, including the Monark Foundation Institute, Lyceum University of the Philippines, Tesda Women’s Center, University of Makati, Toyota Motor Philippines Technology School and Meralco Foundation Inc.

Claudeth Mocon-Ciriaco

capacity to address the projected 745-megawatt (MW) power shortage from March to July 2015.

Albano said large, heavy power users with self-generating capacity, such as shopping malls, manufacturing-industrial plants, office and condominium buildings should sign up for the program at the soonest possible time as the Department of Energy (DOE) already warned of rotating brownouts in Luzon starting next month.

The DOE projected a power-supply shortage of at least 700 MW to 745 MW due to higher demand during summer and the reduced, insufficient supply because of the scheduled one-month maintenance shutdown of the Malampaya natural-gas facility in El Nido, Palawan, Albano said.

Malampaya gas fuels three natural gas-fired power plants with a total generating capacity of 2,700

MW, which accounts for 40 percent to 45 percent of Luzon’s powergeneration requirements, he added.

In addition to the shortfall due to the Malampaya facility’s shutdown, Albano said, the Philippine Atmospheric, Geophysical and Astronomical Services Administration also warned of El Niño conditions affecting the country in the coming weeks that could adversely affect the water supply and operational capability of the country’s hydroelectric power plants, especially in Luzon.

“This is a very urgent situation that all users of electricity—from big industrial users to small home consumers—are now compelled to jointly attend to and solve together,” Albano said.

Albano also called on government agencies with power-generating capability to follow the lead of the House of Representatives by enlisting in the ILP. The lower chamber was the first government agency to participate in the ILP with 1.7-MW committed capacity.

Albano also urged all government and private offices to run their airconditioning units at 25 degrees Celsius in the summer months as their contribution in the nationwide energy-saving efforts.

Solar energy

Meanwhile, under House Bill (HB) 5319, Liberal Party Rep. Eric L. Olivarez of Parañaque City is pushing for

the use of solar energy in government offices and other government-owned establishments to generate savings and protect the environment.

He said utilizing solar energy is more beneficial considering that it has almost no impact on the global climate, unlike electricity generated by power plants, which produces carbon-dioxide emissions that are harmful to the environment.

“Using solar energy will lessen pollution, which damages the natural environment that leads to global warming,” Olivarez said.

Olivarez added solar energy is limitless and will always be available for use, unlike nonrenewable resources like coal, oil and gas, which can only be used once.

HB 5319 mandates government offices and government-owned institutions to utilize solar energy for at least 30 percent of their electricity and/or thermal energy consumption in their day-to-day operations.

The bill also requires all government agencies and establishments to install solar panels on their buildings for the efficient conversion of solar energy into electricity that they need.

Olivarez said by utilizing solar energy, the country would be able to preserve the nonrenewable energy sources and leave some for the future generation.

“In this way, we will be able to meet our present needs without compromising the ability of future generations to meet their needs,” he said.

Tourism

A6 Monday, February 23, 2015 • Editor: Gerard Ramos

DAVAO-WIDE SALE KICKS OFF D.O.T.’S BIG 1

MINDANAO PUSH FOR 2015 B S A | Special to BM

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OURISM promotion activities in Mindanao region go into high gear with the launch of the “Visit Davao Fun Sale 2015,” which will feature sales and massive discounts from its various participating establishments.

DAVAO City is all ripe and ready for the second Visit Davao Fun Sale from April 3 to May 17, the first tourism sale in the country to cover all sectors of the tourism industry from hotels, attractions, tours, restaurants, malls and spas. The event was launched during the recent Travel and Tour Expo at the SMX Convention Center. PHOTO COURTESY DOT-DAVAO

In an interview with Eden Josephine David, chief tourism operations officer of the Department of Tourism (DOT), Davao regional office, she said the Visit Davao Fun Sale 2015 is the city’s “biggest tourism sales event that features sales and promotions from over 35 hotels, accommodation facilities, and travel and tour operators; 12 malls and shopping centers, some 100 restaurants, and over 30 spa and wellness centers.”

The event, patterned after the Great Singapore Sale, is scheduled from April 3 to May 17. This is the second year of the Davao sale, which “shall give tourists and even locals the opportunity to enjoy their summer vacation with varied offerings and discounts from establishments of up to 80 percent,” she added.

Every week during the sale period, MICE (meetings, incentives, conventions and exhibits) organizers and malls will mount different activities like electronic dance music parties, street parties, contests and themed events.

David said the event is projected to increase local visitors to Davao by 10 percent, and foreign tourists by 30 percent.

The Visit Davao Fun Sale is just one of the many promotional activities that the DOT is undertaking this year to bring more tourists to Mindanao.

Tourism Assistant Secretary for Mindanao Arturo Boncato Jr. told the Businessmirror that this year’s direction for promotions is to position Mindanao in activities and products that it is strong in such as “eco adventure, and crafts like woven materials and food. This will be the general strokes of our [Mindanao] advertising campaign. This

will be driven by the Office of the Secretary and will go beyond the social-media sphere. We’ll be part of the local and international visitor campaigns.”

He added that an international MICE campaign has also been launched by the DOT “and the materials feature three MICE destinations—Manila, Cebu and Davao.”

One of the MICE advertising campaigns currently playing, for instance, was shot in Davao’s Pearl Farm Resort.

Another program the DOT is planning is a “tour circuit” to take advantage of the region’s excellent road network. “There are markets which can actually do caravans around Mindanao, and these are circuits that we are putting together.

During certain times of the year, like in the summer, we can organize with tour operators a ‘DavaoEastern Mindanao-Northern Mindanao’ loop, which we can do for five to seven days. On the other side of the region, we can also do a tour that will take visitors to General Santos City-Saranggani-Cotabato, or we can do Northern Mindanao, where the visitors can go straight to Zamboanga City.”

As part of DOT’s major preparations in implementing these circuits, he added, they are consulting and discussing with the local government units (LGUs) to strengthen the security of their respective areas. The region has been largely portrayed as unsafe by local and international media despite the reported skirmishes between the military and Muslim insurgents in far-flung areas being isolated incidents. This has propagated fears of traveling to Mindanao in general.

Boncato said that, fortunately, LGUs in Mindanao are now “cooperative,” especially on tourism projects.

“In the past, when you say ‘tourism’, you decorate the stage, then there’s a program. But now they [local governments] see tourism as a livelihood; they see the significance of being exposed to the rest of the world. I guess social media also plays a big help there.

You go to the Enchanted River (in Hinatuan, Surigao del Sur), you post it on Facebook, Twitter and Instagram, and it’s all over and people are talking about it. You meet people there, but they’re not from that area anymore.

They come from all over the Philippines or the world.”

He underscored the role budget airlines have played in pushing Mindanao tourism. “The average traveler was able to travel four times last year.

So people look forward to discovering new destinations. They ask, ‘Where do we go next?’ ‘We want to be the first ones to be there.’ The newer and stranger the destination, the more exciting for them.” This attitude has opened up a lot of Mindanao destinations to tourists.

Boncato admitted, however, that for certain destinations in Mindanao, as with the rest of the country, there may be a lot of new and exciting places to discover, but there are inadequate accommodations for visitors. He maintained that the job of attracting investors to put up hotels and resorts in Mindanao still lies with the LGUs. “We want all these new accommodations to rise, but the job of looking for investors is still theirs [LGUs].

They have to extend the incentives to attract the investors and continue strengthening the peace and order situation in their areas.”

The LGUs dedication to tourism could be seen in last November’s World Travel Market in London. For the first time, local government executives, especially from Mindanao joined the Philippine delegation to the second-largest travel fair and exhibit in the global tourism industry. Among the Mindanao provinces, which put up booths in the 300-square-meter Philippines Pavilion of London’s International Exhibition and Convention Center were Camiguin, Surigao del Norte/Siargao, Zamboanga City, Samal Island and Davao del Sur. “It’s high time for Mindanao to contribute to our national goal of achieving 10 million foreign visitors in 2016,” Boncato stressed.

Meanwhile, the Visit Davao Fun Sale is supported by Air Asia and Cebu Pacific, the Bank of the Philippine Islands (BPI) and Bonamine.

DOT Davao’s David said the airlines shall provide seat sales and low fares, promotion mileages, in-flight announcements of the event, and tickets for raffle draws. BPI will promote the event through their network of card and bank account holders by putting the event’s logo in the statement of accounts, text blasting and putting up posters in all their branches. “The bank will also fund the street banners and announcements on the lamp posts of the sale all over the city,” she said. Bonamine shall give free tours under the banner “Tuloy ang Byahe” raffle.

ONSTAGE for the launch of the Visit Davao Fun Sale are Gerard Penaflor, Commercial head for Air Asia; Arlene Tena, director for Sales of Cebu Pacific; Ranjit Kaur Basi, senior manager prepaid product of BPI; Roberto P. Alabado, DOT regional director for Davao; Lisette Marquez, Davao City tourism officer; Tjader Regis, chairman of the executive committee of Visit Davao Fun Sale; and Eden David, chief tourism operations officer of DOT-Davao. PHOTO COURTESY DOT-DAVAO

m&Entertainment BusinessMirror

tourism@businessmirror.com.ph • Monday, February 23, 2015 A7

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New World Kota Kinabalu Hotel to open 2018 in Malaysian City’s newest landmark

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EW World Hotels & Resorts has been appointed by Homesign Network to manage New World Kota Kinabalu Hotel, which is scheduled to open in 2018. The deluxe hotel brand will make its Malaysian debut in grand style, with the hotel occupying the top floors of what will

become Kota Kinabalu’s newest city icon.

New World Kota Kinabalu Hotel will be an integral part of Skycity, a multipurpose development comprising of the hotel, grade-A offices, shopping mall and two towers of serviced suites.

Located in Karamunsing near the Kota Kinabalu city center, the hotel is ideally lo-

cated for both business and leisure. It will be only a 30-minute drive to more than 10 surrounding golf courses and a fiveminute drive to the Jesselton Pier which connects to all the outlying islands.

The complex tower will become a striking landmark in Kota Kinabalu when it is completed with the hotel occupying the

top 16 floors, offering unobstructed views of the city, the South China Sea and Mount Kinabalu. The property will feature 400 guestrooms and suites. The brand’s signature Residence Club Living Room will offer exclusive benefits, such as complimentary breakfast, all-day refreshments

and dedicated concierge service for Residence Club and hotel suite guests.

Dining options will include two restaurants, a lobby bar and a sky bar. Meeting facilities will total 3,883 square metres (41,796 square feet), while recreational facilities will encompass a sky pool, spa and gym.

TheElderly

A8

BusinessMirror

Monday, February 23, 2015 • Editor: Efleda P. Campos

news@businessmirror.com.ph

New MRT GM urged to revert riding rule for elderly

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By Lorenz S. Marasigan

FEW weeks after being appointed as general manager of the Metro Rail Transit (MRT) Line 3, Roman Buenafe, a mechanical engineer, gave another reason why commuters should stop patronizing the ailing train line.

Under his watch, senior citizens, pregnant women, people with very young children and persons with disability (PWDs)—or those who enjoyed the privilege of a much comfortable ride on the already uncomfortable railway system—are now being forced to join the hundreds of thousands of regular commuters in queuing to enter the North Avenue station in Quezon City.

These sectors were surprised last Wednesday when they were required to queue with the regular train riders even during rush hours.

These groups were previously given the privilege of riding the

trains at the northbound side of the station, enter the last coach of the arriving train and choose their seats as soon as the alighting passengers disembarked. They were already seated when the just-arrived train made a turn-back to pick up passengers on the southside going to Taft Avenue, the other end of the line of the train system.

Starting February 18, thanks to Buenafe’s instruction, the erstwhile “privileged” riders now have to go through the physically painful process of lining up with the regular commuters.

Guards were also at panic, con-

fused with how they would handle the newly imposed rule. They scrambled to give directions and explanations to angry grandmothers, soon-to-be mothers, parents with very young children and commuters with disability.

Buenafe, a graduate of the Philippine Science High School, was not replying to the BusinessMirror’s queries via text or call since Friday.

Transportation Secretary Joseph Emilio A. Abaya clarified that the new policy has something to do with a safety concern at the turn-back system of the line.

“The policy is still in effect. What he removed is when a PWD gets to TriNoma. They stay on the train and does a transfer on a very small platform at the turn-back, which has some safety issues,” the Cabinet official said. “He is studying another way to do it safely.”

The MRT has been a hot item in the news these past few months due to its already obsolete facilities.

The 15-year-old mass-transit system, which ferries more than half-a-million passengers daily, has been in a state of decay. Passengers frequently complain of long queues caused by the lack of

light-rail vehicles. The public was also outraged by the MRT’s inefficient ticketing system, humid train cars, faulty elevators and escalators, and rude workers.

The train system even poses risks to the safety of the riding public, several rail experts, including those from MTR Corp. Ltd., the operator of the railway system in Hong Kong, concluded.

But, despite all this, actual improvements in the line have yet to be implemented. The government is auctioning off a P9.7-billion deal to overhaul the MRT. This is being done in separate tranches.

The group of businessman Robert John L. Sobrepeña is proposing to do a “quick fix” solution to make the train system safe for public transport.

The venture would require the group of Sobrepeña, who owns the MRT system, to invest P6.75 billion into the train line. The proposal involves the procurement of a total of 96 new train cars, the rehabilitation of the existing 73 coaches, and the extension of the MRT all the way to Caloocan, while liberating the government from renting the train system.

UV Express operators launch own pink project

process of effecting a buyout of the owners of the train line.

Despite the lack of the needed funding to bankroll the P54-billion takeover, transport officials have repeatedly said the government will continue to execute the multibillionpeso buyout initiative. Should the buyout be completed in 2016, the transportation agency may then bid out the operations and maintenance contract of the line, thereby tapping private-sector efficiency and customer-service orientation for operational needs, while retaining regulatory functions for passenger protection with the government.

The train system has been operating at overcapacity since 2004. Currently, the line serves nearly 550,000 passengers per day, it even reached, at one point last year, the 650,000-daily passenger mark. It has a rated capacity of 350,000 daily passengers.

Meanwhile, irate older passengers, pregnant women, parents with very young children and PWDs are daring Buenafe to ride the trains with them anonymously, without the privilege of his office, and experience for himself the discomfort of riding the trains he just recently began to manage.

Makati gives P100,000 cash each to 3 new centenarians

By Claudeth Mocon-Ciriaco Correspondent

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GROUP of utility-vehicle (UV) express operators has taken the challenge posed 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 p.m. 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 to easily recognize them.

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

The project is aimed at giving priority to these sectors, which are often finding difficulty getting a ride from TriNoma to Tandang Sora, especially when people are rushing to their workplaces in the morning and going home in the evening.

T he initiative was for ma l ly launched in City Plaza, Tandang Sora, Quezon City, on Saturday, attended by officials of Tandang Sora FX Operators and Drivers’ Association, Stop and Go Transport Coalition and NAPC representatives.

LTFRB executives, led by Ginez, were also at the project launch to award certificates of appreciation to the 16 UV Express operators participating in the Pink UV Express Project. PNA

Under the proposal, a single point of responsibility will be implemented, meaning the rehabilitation and the maintenance of the line will be handled by a single company. Separately, Metro Pacific Investments Corp. (MPIC) is proposing to shoulder the upgrade costs of the train system and release the government from the bondage of paying billions of pesos in equity rental payments.

The group of businessman Manuel V. Pangilinan, which earlier entered into a partnership agreement with the corporate owner of the MRT, intends to spend $524 million to overhaul the line.

The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. The multimillion-dollar expansion plan would double the capacity of the line to 700,000 passengers a day from the current 350,000 passengers daily.

It was submitted in 2011, but the transportation agency’s chief back then rejected the proposal.

The proposals are still at the mercy of the transportation department, which is currently in the

Free manicure for Baguio’s elderly

Baguio City’s senior citizens enjoy free nail-polish service by students of the Baguio Technical Vocational Skills Training Center Inc. at the Peoples’ Park in the city. MAU VICTA

DSWD Cebu exec: Minimum age for seniors getting social pension lowered to 65 years

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EBU CIT Y—The Department of Social Welfare and Development (DSWD) has lowered the minimum required age of potential beneficiaries of the agency’s social pension to 65, an official said.

DSWD 7 Director Mercedita Jabagat said starting this year, the minimum required age for socialpension beneficiaries will be lowered from the original 77 years old to 65 years old.

The social pension is one of the social protection programs of the DSWD that provides P500 monthly stipends for eligible indigent senior citizens.

Qualified for the program are

those 65 years old and above, frail, sickly or have disabilities, those not receiving pension from the Social Security System (SSS), Government Service Insurance System (GSIS), or Veterans Pension and do not have permanent source of income or regular support from relatives.

Jabagat said the program’s new provision will benefit more senior citizens.

“The monthly financial assistance aims to help them in their basic needs, such as medicines and food,” Jabagat said.

Jabagat also said based on the guidelines, being an active member of any senior-citizens association

is not a prerequisite to avail themselves of the financial assistance from the department.

“I encourage the public to immediately report to their City or Municipal Social Welfare and Development Office or to the regional office if there are issues in the implementation of the program,” she said.

She said local government units (LGUs) can now also directly distribute the monthly stipend to the indigent senior citizens whose names are officially listed in the consolidated order of payment.

Currently, there are 34 LGUs in Central Visayas that can distribute the stipend to senior citizens. PNA

HREE centenarians—all women, widows and born in 1914— each received P100,000 cash gift from the city government of Makati on February 16.

Makati City Mayor Jejomar Erwin S. Binay led the awarding ceremony to the sixth batch of recipients of the onetime benefit at the Office of the Mayor at the Makati City Hall.

Through the joint efforts of the Makati Social Welfare Department (MSWD) and the Office of the Senior Citizens Affairs (Osca), the recipients were located and identified as Paz D. Garcia of Barangay La Paz, 100 years old; Irene R. Carrillo of Barangay Valenzuela, 100; and Rizalina B. Cardenas of Barangay Dasmariñas, 100.

“The life stories of these new honorees speak of admirable strength, courage and hard work. Most of all, they epitomize the selfless love of a mother for her children. They are certainly an inspiration to us all, especially to the youth of today,” Binay said.

Garcia was born on October 20, 1914, and was married to Aurelio N. Garcia (deceased). Their union was blessed with six children, four girls and two boys (both died in 2009).

Garcia was a dressmaker. When her husband died in 1958, she worked in a garment factory in Binondo. With much courage and determination, she was able to raise and send her children to school. Her children were able to finish vocational courses. At present, she is being taken care of by her daughters Aida, Felicitas, Aurora and Araceli.

Carrillo was born on October 18, 1914, in Maragondon, Cavite City. She was married to Dr. Jose Carrillo (deceased). The couple was blessed with four children, namely,

Tomasita (deceased), Jane, Dolly and Mila. Carrillo was a licensed pharmacist during her prime. At her age, she still reads the newspaper daily, walks around the house, enjoys watching telenovelas and religiously says her daily prayers.

Cardenas was born on December 30, 1914, in Bangar, La Union. She was married to Dr. Maximo Cardenas (deceased) on December 21, 1936, and had three children, namely, Rosario, Michael and Ramon. Cardenas graduated with a bachelor’s degree in Commerce in 1936. Her husband was killed during World War II while serving in the Medical Corps of the USAFFE. By sheer hard work, strong faith in God and with the help of her family and friends, she was able to raise her children and send them to good schools. She retired as regional director of what is now known as National Food Authority in the Ilocos region. Upon retirement, she headed many parish and regional religious organizations in La Union. She also traveled extensively, mostly in the US, to visit her daughter, grandchildren and great, grandchildren.

Starting last year, the awarding has been done quarterly instead of once a year, as initially practiced when the onetime benefit was granted in 2012 through City Ordinance 2012-099.

The latest beneficiaries of the program were able to meet the criteria set by the MSWD, the lead implementer of the BLU Card Program: They must be a Filipino citizen; a bona fide resident of Makati; must be 100 years old as of January 1, 2014 until December 31, 2014; and must be a BLU Card and White Card holder for at least five years.

Counting in the three new awardees, there are now 21 centenarians of Makati who have been awarded P100,000 by the city government to date.

Cordillera’s over 16,000 elderly benefit from DSWD-SPP

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AGUIO CITY—At least 16,162 senior citizens in the Cordillera region benefited from the Social Pension Program (SPP) of the Department of Social Welfare and Development (DSWD) in 2014.

In an interview on February 18, Carol Habawel of the DSWD-Cordillera Administrative Region said

the department disbursed a total of P88.87 million in social pensions to the program beneficiaries as an assistance for their basic needs and medicine requirements.

The qualified senior citizens or social pensioners are entitled to P500 as monthly allowance, which is released to them every quarter.

Abra has the most number of social pensioners with 4,391 beneficiaries; followed by Kalinga with 2,581; Benguet, 2,431; Ifugao, 2,340; Mountain Province, 2,183; Apayao with 1,908; and Baguio City with 328.

A senior citizen qualifies under the program if he or she has no regu-

lar support from his or her family or relatives and not receiving pension from any institution or business.

Given priority are those 80 years old and older, then 70 to 79 years old.

Sixty-year-old senior citizens may qualify depending on the recommendations of their respective barangay social worker.

Habawel said the DSWD is looking forward to providing more services to indigent senior citizens and to bring in more beneficiaries to the program.

She said there are 3,000 more or 19,846 target beneficiaries this year for the SPP which will involve around P119 million. PNA

news@businessmirror.com.ph

The Regions BusinessMirror

DTI-EMB resource teams hold more info sessions on EU-GSP+ in the provinces

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OCAL exporters and manufacturers wanting to break into the European market are among the targets the Department of Trade and Industry (DTI), through its Export Marketing Bureau (EMB), hopes to reach through its information sessions on the European Union’s General System of Preferences Plus (EU-GSP+).

Starting in January, teams of DTI-EMB resource speakers, along with counterparts from the Tariff Commission, the Bureau of Customs, the Bureau of Philippine Standards, the Bureau of International Trade, and other allied government agencies, have been going around the country conducting information sessions about the EU-GSP+.

Topics discussed included the implications of the country’s inclusion in the EU-GSP+, the basics of Philippine exporting as part of the DTI’s Philippine Export Competitiveness Program, and an overview of the GSP+.

Last December 18 the EU accepted the country’s application for inclusion to the EU-GSP+ program which gave the Philippines zero tariff on 6,274 product lines, a definite advantage over countries producing

similar goods. The country joined 13 other countries already enjoying the privileges of exporting their products to the European bloc at zero tariff.

EMB Director Senen Perlada said that through these information sessions, the country’s exporters and would-be exporters will be made aware of the 100 products locally manufactured with high export values in the EU member-countries, especially in Germany “which is the biggest market in the European bloc for Philippine-made goods.”

“Philippine exporters must also learn to take maximum advantage of the zero tariff local products now enjoy in the EU, hopefully displacing the comparative advantage of their country-competitors from Asia and the Asean,” he said. To date, DTI-EMB information teams have gone to Cebu (January 21), Davao (January 23), General Santos (January 24), and Pampanga (January 28).

In February DTI-EMB teams are slated to conduct face-to-face sessions with the Agusan del Sur Chamber of Commerce and Industry (February 17); Saturnino Urios University in Butuan City, Agusan del Norte (February 18);

Surigao del Norte (February 19); Zamboanga Export Processing Zone (February 24); and Zamboanga City (February 25).

DTI-EMB resource teams are also scheduled to hold EU-GSP+ information sessions on February 26 at the DTI International building along Gil J. Puyat Avenue in Makati City and with the chemicals and coconut sectors at dates still to be scheduled.

The country’s total exports to the EU reached €8 billion in 2014, which officials from both sides see increasing by €800 million this year alone. Currently, 450,000 Filipino workers are involved in the production and transport of Philippine exports to the EU. The country’s inclusion in the EU scheme adds 200,000 jobs, Perlada said the bureau will conduct more information sessions and seminars this year to the country’s various regions and key cities to explain the benefits, as well as the requirements the country’s exporters need to comply with under this scheme. The sessions will be conducted under the DTI’s “Doing Business with the European Union under the General System of Preferences Plus” program.

Monday, February 23, 2015

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Davao foundation to set up drug rehab center in Bohol

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By Oliver Samson | Correspondent

AGBILARAN CITY—A community-development foundation based in Bohol and a rehabilitation center in Davao are eyeing to build similar P40-million facility in Bohol that will cater to drug-abuse victims, particularly the poor, in the province.

Bohol Local Development Foundation (BLDF) and New Day Rehabilitation Center (NDRC)-Davao propose to set up a treatment hub in Baclayon that can accommodate 100 patients, twice the latter’s capacity to admit patients, BLDF President Nestor Pestelos said in a recent interview.

The project involves two phases, he said. The first phase is the construction of the facility, and the recruitment and commissioning of the staff of the center. The second is the start-up operations that will seek to reach as many drug-abuse victims in the province as possible, Pestelos said.

The BLDF will handle the initial trainings of the center staff using the modules of NDRC-Davao, mobilization of resources to make rehabilitation affordable to the victims of drug abuse who are poor, he said.

The foundation may raise and maintain a trust fund to subsidize the rehabilitation of the poor patients, he said.

The project may tap corporations, government agencies, and local government units (LGUs) for aid, he added.

LGUs may share a certain percentage of the annual budget they receive from the national government to the rehabilitation center, the same budget application by LGUs on climate change, Pestelos said.

Proposed to be known as the Day Rehabilitation Center-Bohol, the drugrecovery facility will seek to provide the juvenile in the province with orientation on the social menace peddled by prohibited drugs, he said.

Opinion BusinessMirror

A10 Monday, February 23, 2015

editorial The ‘Big Fight’ is on

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FTER many years of waiting in anticipation, the fight of the century between Manny Pacquiao and Floyd Mayweather is scheduled for May 2nd. With all the other battles that the Philippines might fight on a daily basis-social, economic, and political-at least this one will bring all Filipinos to the same side of the table.

We do not want to read too much into this contest; it is simply a sporting event. However, the Los Angeles Times newspaper, as reported by the BusinessMirror, had this to say about the contestants.

“The contrasting personalities of the fighters—Pacquiao, 36, the polite congressman in his native Philippines, and Mayweather, who’ll turn 38 on Tuesday, the brash, cash-flaunting celebrity—were evident in their reactions to sealing the deal.

“I’m very happy this five-year saga has come to an end,” Pacquiao said in a statement read by his business manager. “The fans all wanted and deserved this fight and I’m happy we’re giving it to them. It is an honor to be part of this historic event.”

Said Mayweather: “Sports fans around the world will witness greatness on May 2. I am the best ever, ‘TBE,’ and this fight will be another opportunity to showcase my skills and do what I do best, which is win”.

Based on that appraisal, yes, we hope and are looking forward to Pacquiao scoring a decisive and humiliating win over Mayweather. At this point though, Pacquiao is the underdog by a fairly large margin of 2 1/2 to 1. Bet on a winning PacMan and you more than double your money. Betting on a winning Mayweather means you risk 250 to win 100.

We, like millions of other Filipinos, will be watching every second of the fight. But there are some mixed feelings. Both men have brought a renewed great interest to the sport that had lost some of its fan appeal. Both men have incredible life stories.

We all know of Pacquiao’s of his early life and his rise out of poverty through boxing. But Mayweather’s life is equally interesting being raised in a family of professional boxers and destined to be a professional from a young age. But his mother was a drug addict and an aunt died from AIDS because of her drug use. His father sold drugs to support the family.

One man will emerge victorious from the ring on May 2nd. If Mayweather loses, it will always be said, “He was undefeated until he fight the one man he could not beat-Pacquiao”. If Pacquiao loses, he will always be known as the greatest pound-for-pound boxer who could not beat Mayweather.

At the end of the fight a winner will be declared. The sad part is, one of these great athletes will go down in defeat and we all will lose another of life’s mysteries: Who’s better, Pacquiao or Mayweather?

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Growth forecasts optimistic Atty. Jose Ferdinand M. Rojas II

RISING SUN

S

TANDARD Chartered Bank, one of the foremost in the United Kingdom, said last week they expect the Philippine economy to grow 6 percent in 2015.

This would be borne on the back of strong private consumption facilitated by improving labor market conditions, given the decline of the unemployment rate over the past five years.

Underemployment is expected to drop further in regions dominated by agricultural activities as the services and manufacturing sectors expand.

Private spending, which accounted for 73 percent of the economy, thus far has mostly been on necessities–food, shelter, transport–but the bank foresees more spending on “non-necessities.”

Standard Chartered gave as an example the strong sales of motor vehicles last year, which are expected to remain so this year.

This was echoed by Isuzu Philippines Corp. Last week they said they are targeting to sell 18,000 commercial vehicles and trucks, a 27-percent increase in sales over last year.

In 2014 they sold 14,134 units, a 20 percent increase from 2013’s 11,795.

Connected to this expected increase in vehicle sales overall are the various government projects related to transport infrastructure.

The National Economic Development Authority (Neda) last Monday approved six projects worth P372.8 billion, among them the Cavite-Laguna expressway at P35.4 billion, Nlex-Slex connector project at P24.3 billion, and the Panguil Bay bridge at P5.09 billion.

With improved roads and bridges, more people will see the benefit of owning cars and taking road trips to visit various scenic spots in the country, in line also with 2015 being “Visit the Philippines Year,” the latest campaign of the Department of Tourism.

The DoT points to the various “It’s more fun in the Philippines” activities taking place all year around the country, related to sports, music and arts, history and culture, traditional festivals, and many more.

To make it easier for both Filipino

and foreign tourists to get around, NEDA also approved two railways projects: the North-South Railway South Line worth P170.7 billion, and the North-South Commuter Railway Phase 1 worth P117.3 billion.

Likewise approved previously were four airport projects, the Davao or Francisco Bangoy airport at P40.6 billion, the new Iloilo airport at P30.4 billion, the Bacolod-Silay airport at P20.26 billion, and the Puerto Princesa airport at P5.23 billion.

Under study at the moment is a new route for the planned subway worth P135 billion that will connect the cities of Makati, Pasay, and Taguig, decongest traffic, and make access to the workplaces there more convenient.

Also crucial to the country’s development is an improved energy infrastructure. In line with this, government is continuing its exploration of alternative sources of energy such as wind power.

Just last week, the Climate Change Commission, the United States Agency for International Development-Philippines and the US National Renewable Energy Laboratory updated the 2001 wind resource atlas for assessment and geospatial analysis.

The 2014 version included new resource modeling techniques and turbine technologies as well as new data sets and maps, making it of interest also to potential investors in the wind energy sector.

This information will help gov-

Energy is a controllable resource

A

By Guenter Taus

ccess to energy is becoming increasingly more costly and difficult, and in many cases its generation isenvironmental damaging. The era of reasonably priced energy is coming to an end in many countries.

There are a lot of discussions on the specific definitions of terms such as energy efficiency, energy use, energy consumption, energy intensity, etc. It is not overly important which definitions you use; what is important is that we reduce the energy use to a minimum.

Why Manage Energy?

Most well managed organisations have started to adopt management systems to address energy usage and utilizing cost cutting measures through such programs. However, it is not easy to implement proper and efficient programs as these efforts are not one time solutions, but need constant nurturing, attention and upgrading.

Sometimes it is as simple as turning “off ” the equipment (if not needed) in order to have real reduction in energy use. This is one of the simple ways that Energy Management System (EnMS) ISO 50001 can bring to the equation

of saving energy.

So what is an Energy Management System?

Energy management is effecting organisational, technical and behavioural actions in an economically sound manner with the objective to improve energy performance.

It is a systematic attention to energy use with the objective of continually improving the energy performance of your organisation and maintaining these achieved improvements. It ensures that your organisation continually passes through the cycle of making policy (including evaluation of objectives), planning actions, implementing actions and checking results, reviewing progress and updating policy and objectives, as required.

The PLAN-DO-CHECK-ACT (PDCA) approach is reflected in existing standards. Illustration below shows all main elements of energy management system.

It shows an overall cycle beginning with management responsibility and commitment. This is shown as a “decision point” as without it, the system will have difficulty in being effective. The cycle continuous through development of policy, planning, implementation & operation, checking and management review).

The three activities of management responsibility, policy and management review are grouped to indicate that these are the activities that involve top management in support while the theEnMS is built up.

The development of energy information and plans is a core activity that examines your organisation’s status in terms of energy performance and identifies

ernment and investors develop further sources of renewable clean energy that will lead to lower carbon emissions and protect the environment.

In line with this, the Energy Regulatory Commission approved the application for a certificate of compliance of Energy Development Corp. for its 150-megawatt Burgos wind project in Ilocos Norte, said to be the country’s largest wind farm.

It may now begin its commercial operations with its 50 units of Vesta V90 wind turbine generators.

Each unit has a rated capacity of three megawatts each. The farm is expected to contribute 150 MW to the Luzon grid.

Not only will wind power be coming online, but natural gas too, via First NatGAs Power Corp.’s 450 MW San Gabriel, Batangas project, which is expected to open in April 2016 and also add to the capacity of the Luzon grid.

The company already has two existing natural gas plants–the 1,000 MW Sta. Rita and 500 MW San Lorenzo.

These are just some of the many key infrastructure projects and programs that are underway and that are expected to contribute significantly to the country’s economic growth this year and in the coming years.

Atty. Jose Ferdinand M. Rojas II is the vice chairman and general manager of the Philippine Charity Sweepstakes Office.

actions that you can take to improve it.

Day to day operations and monitoring of performance are grouped as these are day-to-day operational activities that are carried out continuously improving our energy performance and ensure that it is sustained.

The implementation of an energy management is not an objective in itself.

What matters are the results of the system: energy performance improvement by anchoring attention to energy in daily practice. Whether an energy management works depends on the willingness of the organisation to manage energy use and energy costs and to make the necessary changes to their day to day operations to facilitate these improvements and cost reductions.

As EnMS ISO 50001 is new to the Philippines, UNIDO and the Philippine government (DOE-PIEEP) are working hand in hand in order to activate awareness on how it can be helpful to address energy supply challenges.

Reducing energy use makes perfect business sense; it reduces cost, reduces greenhouse gas emissions and improves company image. It also reduces exposure to volatile energy prices and helps secure energy availability by reducing dependency on imported resources.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Breakfast is a man’s world, just ask him

Amazing

By Gina Barreca

Teddy Locsin Jr.

The Hartford Courant/TNS

W

HY will men, including ones who don’t cook any other meal, cheerfully make breakfast? Is it because if they make toast without burning it, it becomes “amazingly good toast”? Is it because when they add a “magic ingredient” (taco-sauce) to their eggs, they can then call them “my mean scrambled eggs” or refer to themselves in the third person as “The Omelet Master”?

You know that if a guy can explain–without looking at notes from an electronic device–what it means to coddle an egg, he firmly believes he should have his own show on the Food Network.

Yes, of course, I’m making sweeping gender-specific generalizations, but somebody’s got to do it.

Besides, I really believe this one is true. Breakfast is The Man Meal.

My husband is one of the tribe: He makes scrambled eggs so good I believe they were a factor in my decision to marry to him.

What made me hesitate briefly in that decision, however, was my husband’s attempt to push his breakfast luck by going all out one morning and heating corned beef hash in a microwave. He plopped the grey mass straight from the can onto a plate, and then hit “reheat.”

He looked smugly pleased with himself until he took the plate out of the microwave. The mess on it looked, and smelled, like offal. Instead of running for the hills–we have low hills near us anyway so it wouldn’t have done much good–I saw it as a teachable moment. I cooked the food properly, pointing out that hash can only be enjoyed when the edges are fried just enough to be crunchy.

That’s how my husband makes it now, because his “famous hash” is everybody’s favorite.

Many men have a technique that they regard as their signature. They consider this to be an exact science, as well a huge accomplishment, the kind of which is usually accompanied by the sounding of French horns. This is true even if his signature dish is a bowl of cereal. I once knew a man who boasted that he made a “killer” bowl of cereal. He used soy milk and put pieces of banana on top. I suspect the banana is what made it “killer.”

The pattern of men cooking breakfast on the weekends and getting a great deal of praise for it no doubt grew out of the McCall’s-

sponsored traditional ideology that suggested mothers and wives were responsible for making every other meal. Husbands were expected to return home after a long day’s work and wives were expected, in exchange, to be waiting at the door with a cold martini (not one they’ve been drinking for an hour, either) with a perfect meal in the oven and with cheerful children–already in their pajamas, ready to fall asleep at the drop of Daddy’s hat.

Only on the weekends would the paterfamilias be able to exercise a measure of culinary creativity. One night he grilled and one morning he made breakfast.

He probably also encouraged everyone to gather ‘round and watch him make breakfast; for men, being in the kitchen is a kind of performance art, says my friend KimMarie, requiring an audience for the full effect.

Another pal, Daniela says her husband “stands at the stove the entire time, watching the food cook with his arms crossed over his chest till it’s time to flip something over or move it around while browning. That’s it, the entire time, he’s standing there with the timer going instead of multitasking while the food cooks by, let’s say, setting the table or making coffee.”

However it’s done, breakfast is worth doing.

Like love, breakfast is something people skip because they consider it more trouble than it’s worth. Some folks think breakfast, like love, will keep them in the house longer than they’d like and will turn them into somebody sleepy and fat instead of somebody alert and lean. But that’s not how it works. Both are fundamental: Breakfast and love will nourish you even when you’re busy doing other things; when they’re healthy, they’ll make every day better.

And like love, breakfast is best when made at home.

Free fire

O

NE of the things a man should know is how to ride a horse—not very well; just enough to stay on the horse without bouncing all around. If he knows more than that he is a jockey—and short. Another is how to drink and hold it.

Third is how to play cards. I am barely passable with the first two, which is about right; but with the third—forget it and I am too old to learn. My remaining time is best left taking up golf and mastering it.

Nonetheless not knowing card games is no reason to deny yourself the delights of the City of Dreams,

the new casino complex in the Bay. The tasteful appointments, the food, the purified air but over and

US and Middle East after the Islamic State

By Emile Nakhleh InterPress Service

W

ASHINGTON—As the Congress ponders President Barack Obama’s request for an Authorization for Use of Military Force (Aumf) to fight the Islamic State (Isis or IS), US policymakers must focus on the “morning after” before they embark on another potentially disastrous war in the Levant.

The president assured the nation at his press conference on February 11 that IS is on the verge of being contained, degraded, and defeated. If true, the United States and the West must address the future of the region in the wake of the collapse of IS to avoid the rise of another extremist threat and another “perfect storm” in the region.

The evidence so far that Washington will be more successful than during the Iraq war is not terribly encouraging.

The Iraq War parallel

GEORGE Tenet, former director of the Central Intelligence Agency, wrote in his book At the Center of the Storm that in September 2002 CIA analysts presented the Bush administration with an analytic paper titled “The Perfect Storm: Planning for Negative Consequences of Invading Iraq.” The paper included “worst-case scenarios” of what could go wrong as a result of a US-led invasion of Iraq.

The paper, according to Tenet, outlined several negative consequences: anarchy and the territorial breakup of Iraq; regimethreatening instability in key Arab states; and, deepening Islamic antipathy toward the United States that produced a surge of global terrorism against US interests.

The Perfect Storm paper suggested several steps that the United States could take

that might mitigate the impact of these potentially negative consequences. These included a serious attempt at solving some of the key regional conflicts and domestic economic and political issues that have plagued the region for decades.

Unfortunately, the Bush administration spent more time worrying about defeating Saddam’s army than focusing on what could follow Saddam’s demise. Ignoring the Perfect Storm paper, as the past decade has shown, was detrimental to US interests, the security of the region, and the stability of some key Arab allies. The US and the region now have to deal with these consequences—anarchy, destruction, and refugees—of the Bush administration’s refusal to act on those warnings.

The past decade also witnessed the resurgence of radical and terrorist groups, which happily filled the vacuum that ensued. US credibility in the region plummeted as well.

When CIA analysts persisted in raising their concerns about a post-Saddam Iraq, the Pentagon’s Under Secretary for Policy Doug Feith dismissed the concerns as “persnickety.”

If the Obama administration wants to avoid the miscalculations of the previous administration about Iraq, it should make sure the land war against IS in Iraq and Syria

does not become “enduring” and that the presence of US troops on the ground does not morph into an “occupation.”

Defeating IS might be the easy part.

Devising a reasonably stable post-IS Levant will be more challenging because of the complexity of the issues involved. Before embarking on the next phase of combat, US policymakers should have the courage and strategic vision to raise and answer several key questions: 1. How will Sunni and Shia Muslims react to the re-entry of US troops on the ground and to the likelihood that US military presence could extend beyond three years?

The “liberation” of Iraq that the Bush administration touted in March 2003 quickly turned into “occupation,” which precipitously engendered anger among the population.

Iraqi Sunnis and Shia rose up against the US military. The insurgency that erupted attracted thousands of foreign jihadists from the Middle East and other parts of the Muslim world. Bloody sectarianism and vigilantism spread across Iraq as an unintended consequence of the invasion, and it still haunts the region today.

During the Iraq war, the Iraqi Sunni minority, which has ruled the country since its creation in the early 1920s, perceived the United States as backing the Shia majority at the expense of the Sunnis. They also saw the United States as supporting the sectarian policies of former Prime Minister Nouri al-Maliki, especially as he excluded Sunnis from senior government positions. This feeling of alienation pushed many Iraqi Sunnis to support the Islamic State.

Former Secretary of Defense Donald Rumsfeld refused to admit that an insurgency and a civil war were spreading across

Iraq. By the time he admitted that both were happening, it became impossible to defend the “liberation” thesis to Iraqis and other Arabs and Muslims.

2. If the US-led ground war against IS extends to Syria, how will Washington reconcile its announced policy favoring Assad’s downfall with fighting alongside his forces, and how will the Arab public and leaders react to such perceived hypocrisy? It’s foolish to argue that the US-led war against IS in Syria is not indirectly benefiting the Assad regime.

Assad claimed in a recent BBC interview that the coalition provides his regime with “information” about the fighting. Regardless of the veracity of his claim, Assad has enjoyed a breathing room and the freedom to pursue his opponents viciously and mercilessly, thanks to the US-led coalition’s laser-like focus on IS. Sunni Arab regimes, especially Saudi Arabia and the United Arab Emirates, are already urging the Obama administration to increase substantially its military support of the anti-Assad mainstream opposition. These regimes, which are also fighting IS, argue that the United States could simultaneously fight IS and work toward toppling Assad.

If this situation continues and Assad stays in power while IS is being contained, Sunni Arab populations would soon begin to view the United States as the “enemy.”

Popular support for radical jihadists would grow, and the region would witness a repeat of the Iraq scenario.

The territorial expansion of IS across Iraq and Syria has for all intents and purposes removed the borders between the two countries and is threatening the boundaries between Syria and Lebanon, Iraq and Jordan, and Iraq and Saudi Arabia.

If US policymakers are interested in cre-

Monday, February 23, 2015 A11

above everything the pleasure of being served by those who want you feel good. The servers at City of Dreams show a genuine interest in that—and just in you. They will show the same singular interest in the next customer. Between you and the server there is a one-onone relationship while it lasts.

It is not an act; no one can keep up an act 12/7. All 5,000 employees were trained either to be really interested in the customer and how to show it. I suspect if you are the type that can’t be bothered with the customer; if you think serving is just a job—you won’t get the job.

So special are the staff at City of Dreams that the splendid inauguration opened and closed with some of the richest men on the planet asking the guests to applaud the staff. This was an amazing display of good manners from people so rich. They also started the evening by calling to mind the 44 slain SAF and closed it quietly with a donation of P10 million to the families they left behind.

ating political stability after IS, they should explore how to re-establish a new political order on the ashes of the century-old Sykes-Picot Levant political architecture.

Otherwise, the “Iraq fatigue” that almost crippled US efforts in Iraq in recent years, especially during the Maliki era, will surely be replaced by a “Levant fatigue.”

It will take a monumental effort to redesign a new Levant based on reconciling Sunnis, Shia, Christians, Kurds, and Arabs on the principles of inclusion, tolerance, and respect for human rights, economic opportunity, and good governance. If the United States is not prepared to commit time and resources to this goal, the Levant would devolve into failed states and ungovernable territories.

3. If radical Sunni ideology and autocracy are the root causes of IS, what should the United States do to thwart the rise of another terrorist organization in the wake of this one?

Since the bulk of radical Sunni theology comes out of Saudi Arabia and militant Salafi Wahhabism, the United States should be prepared to urge the new Saudi leadership, especially the Deputy to the Crown Prince Muhammad Bin Nayef, to review the role of Salafi Wahhabi preachers and religious leaders in domestic public life and foreign policy. This also should certainly apply to Saudi education and textbooks.

Whereas in the past, Saudi officials have resisted any perceived foreign interference as an encroachment on their religion, this type of extremist, intolerant ideology has nevertheless given radical jihadists a religious justification for their violence. It now poses an undeniable threat to the national security of the United States and the safety of its citizens in the region.

Autocracy, corruption, repression, and anarchy in several Arab states have left millions of citizens and refugees alienated, unemployed, and angry. Many young men and women in these populations will be tempted to join new terrorist organizations following IS’s demise. The governments violate the rights of these young people at whim, imprison them illegally, and convict them in sham trials—all because of their political views or religious affiliation or both—in Egypt, Saudi Arabia, Bahrain, Iraq, Syria, and elsewhere.

In Egypt thousands of political prisoners are languishing in jail. In Bahrain, the regime has been stripping dozens of citizens of their citizenship because of their pro-democracy views. Once their passports are taken away, Bahraini citizens are deprived of most government services and opportunities. When visiting a government office for a particular service, they are required to show the passport, which the government has already taken away, as a proof of identity—a classic case of “Catch 22” leaving these citizens in a state of economic and political limbo.

Partnering with these autocrats in the fight against IS surely will reach a dead end once the group is defeated. Building a new Levant cannot possibly be based on dictatorship, autocracy, and corruption. Iraq and Afghanistan offer stark examples of how not to build stable governments.

The Perfect Storm paper warned the Bush administration about what could follow Saddam if critical questions about a post-Saddam Iraq were not addressed. The Bush White House did not heed those warnings. It would be indeed tragic for the United States if the Obama administration made the same mistake.

So special are the staff at City of Dreams that the splendid inauguration opened and closed with some of the richest men on the planet asking the guests to applaud the staff. This was an amazing display of good manners from people so rich.

2nd Front Page BusinessMirror

A12 Monday, February 23, 2015

Initiative to cut perks may affect Peza sites

By Catherine N. Pillas

T

he income-tax holiday (ITH) granted by the Philippine Economic Zone Authority (Peza) may be reduced as part of the government’s efforts to rationalize fiscal incentives, according to a draft bill approved by the Departments of Trade and Industry (DTI) and the Department of Finance (DOF).

In the draft bill “discussed and agreed upon” by Finance Secretary Cesar V. Purisima and Trade Secretary Gregory L. Domingo, the ITH for Peza-registered export enterprises will be reduced to four years, from the current six to eight years.

The four-year ITH is nonrenewable and non-extendable.

After the ITH’s expiry, companies may either be granted a 5-percent tax on gross income earned (GIE) except value-added tax (VAT) and real-property tax (RPT) for 11 years, or 15-percent reduced tax on corporate income in lieu of local and national taxes, except VAT and RPT for 11 years.

If Peza does not grant the ITH, enterprises may either get a 5-percent tax on GIE in lieu of local and national taxes except VAT and RPT for 15 years, or 15-percent reduced tax on corporate income in lieu of local and national taxes VAT and RPT for 15 years.

Non-Peza registered export enterprises in ecozones and free ports may either get a 5-percent tax on GIE in lieu of local and national taxes except VAT and RPT for a period of 15 years, or 15 percent reduced tax on corporate income for 15 years.

They will be allowed to import capital equipment, raw materials, supplies and semifinished products without paying the tariff and VAT. For exporters outside of free ports and ecozones, Peza may allow them to enjoy a four-year ITH. After this, the government will reduce their corporate income tax to 15 percent for 11 years.

If they don’t get the four-year ITH, enterprises may enjoy a 15-percent reduced tax on corporate income for 15 years and VAT refund and duty-free importation of capital equipment and VAT and duty

refund on imported raw materials, supplies and semifinished products.

For “strategic enterprises,” the government will reduce their corporateincome tax to 15 percent for 15 years and will allow the duty-free importation of capital equipment.

The proposal also calls for the inclusion of the National Economic and Development Authority (Neda), the DTI and the DOF in the governing boards of all investment promotion agencies (IPAs). The approval on the grant of incentives will require the vote of either the secretary of the DOF or Neda director general.

The draft bill requires IPAs to monitor and ensure transprancy of investments and incentives data. IPAs will be required to submit a comprehensive incentives and investments data to the Neda.

Sought for confirmation on the various incentive packages for exporters, Peza Spokesman Elmer H. San Pascual said they have not received information that the government intends to change the agency’s incentive schemes. San Pascual said the agency is banking on Domingo’s pronouncements that perks offered by Peza will not be touched.

What has been announced by Domingo, so far, is the reduction in the corporateincome tax of Board of Investment-registered firms to 15 percent which they will enjoy for 15 years.

A consensus bill on the rationalization of fiscal incentives has yet to be submitted to the Senate and the House of Representatives.

Congress has been urging the DTI and the DOF to submit their consolidation position so that deliberations on the measure may resume.

Earlier, Japanese businessmen have warned that investments from Japan could decline if the government would push through with its plan of restructuring its incentive scheme for investors.

Businessmen belonging to the Japanese Chamber of Commerce and Industry in the Philippines urged the government to retain the existing incentives, particularly those being offered by Peza.

www.businessmirror.com.ph

BSP: Tweaks in key rates still not needed T

By Bianca Cuaresma

he Bangko Sentral ng Pilipinas (BSP) ruled out on Friday an earlier-than-expected adjustment in monetary policy as consequence of the steep drop in oil prices in the international market.

At the induction of the latest set of officers at the Economic Journalists Association of the Philippines (Ejap), BSP Governor Amando M. Tetangco Jr. said the country’s monetary-policy stance remains appropriate for the time being.

“I wish to reiterate that, while other emerging markets have begun to ease their monetary-policy settings in view of their own domestic considerations, we believe that our prevailing monetarypolicy stance remains appropriate,” the governor said.

Tetangco further said the $272-billion economy remains supported by a robust macro-

economic framework that has allowed the Philippines to weather global headwinds as the weak euro zone, the steep drop in the price of oil and the slowing economy in China.

“Supported by robust credit growth and ample liquidity, current inflation and output growth dynamics in our country do not, at this time, warrant a reversal of the preemptive tightening measures we did in 2014,” Tetangco said.

The central bank is also wary of the “uncertainty hanging over global markets” the policy implications of which bear close monitoring.

“Nevertheless, should the need arise, we have ample fiscal head-

room to provide further stimulus to the economy,” Tetangco said.

Tetangco also said the BSP is currently looking at two major developments that “likely to pose challenges for the central bank.” The challenges pertain disinf lation and the divergence of monetary policy in the advanced economies.

“The overall impact of the significant decline in international oil prices will vary in direction and scope across the globe. While there were recent upticks, oil prices remain well below their levels in mid-2014. In general, low oil prices represent disinflation pressures for oil-importing countries like the Philippines,” Tetangco said.

No matter the warning, the BSP chief said the Philippines was not likely to fall victim to the threat of disinflation when the rate of change in prices slows down significantly, causing businesses and households to postpone expansion and consumption activities in anticipation of still lower prices.

“Unlike in some economies, the

risk of inflation falling below zero or to negative levels in the Philippines appears to be minimal.

In fact, while our latest forecasts show a lower inflation path, we expect inflation to stay within the government’s target range over the policy horizon,” Tetangco said. The governor also warned of volatility arising from the various monetary stimulus programs in the advanced economies.

“On balance, these contrasting prospects underpin the risk of capital flow volatility and financial market turbulence. Market volatility could be fuelled by a prolonged period of low interest rates and liquidity enhancement measures, as investors continue to search for higher yield,” Tetangco said.

“Fortunately, even amid the volatility, investors tend to go back to assessing the merits of individual economies. For the Philippines, these merits include ample fiscal policy space, a sound and responsive banking system, an increasingly inclusive financial system, and a healthy external position all of which contribute to a solid outlook for growth,” he assured.

First Pacific expands into coconut-oil manufacturing. . . assess the area. “Our palm-oil plans are on hold as we prioritize investments in the sugar and coconut sectors,” Espinosa said.

First Pacific already owns a third of Roxas Holdings Inc., whose facilities are in Negros and Batangas and corners 18 percent to 20 percent of Philippine sugar capacity. The company went into the sugar business last year.

Metro Pacific Investments Corp., the company’s Philippine unit, earlier said that it

is allocating P1 billion for its sugar venture in the country. First Pacific’s Managing Director Manuel Pangilinan earlier said that the company is looking at “several opportunities” in the local agribusiness sector.

Following Pangilinan’s pronouncement, tycoon Lucio Tan increased his stake in Victorias Milling Co. Inc. (VMC), one of the biggest sugar millers in the country, by converting part of its debt into equity. First Pacific’s unit

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then divested its minority stake in VMC. First Pacific said it is also looking at the feasibility of acquiring Central Azucarera de Tarlac, a facility owned by the family of President Aquino.

The Hong Kong-based firm is an investment management and holding company with operations in Asia and interests in telecommunications, infrastructure, consumer food products and natural resources.