Addressing traffic congestion at Lapuz Wharf

By Dr. Herman M. Lagon

LAPUZ, the newest district in Iloilo City, is currently grappling with a pressing issue that significantly impacts the daily lives of its residents and motorists. The Lapuz Wharf, a vital gateway for Iloilo-Guimaras and Iloilo-Palawan RORO (Roll-on/ Roll-off) trips, is infamous for its severe traffic congestion, causing inconvenience and hardships for travelers and the people of Lapuz, especially those residing, working, and passing through Barangays Lapuz Norte, Loboc, Mansaya, and Bo. Obrero. It is long overdue for the local government, particularly the Public Safety and Transport Management Office, to take immediate, more concrete action and provide much-needed relief to those affected.

The limited space at Lapuz Wharf, which serves as a vital connection to numerous industrial and commercial establishments and a gateway for over 20,000 residents, presents significant challenges for motorists and passengers, especially during peak hours when congestion is at its worst. The lack of adequate, efficient, and consistent traffic management exacerbates the problem, worsening the severity of the congestion, making it imperative to address this issue promptly and implement proactive measures to alleviate the traffic woes at the busy harbor.

A potential solution is to consider relocating or appropriating the port movements to the nearby Brgy. Libertad area, where no public jeepneys and buses pass. This strategic move could alleviate traffic congestion by redirecting the flow of vehicles and passengers. Furthermore, clearing the area of vendors and expanding the road infrastructure to the wharf with wider lanes and additional entry and exit points would enhance traffic flow and reduce congestion. Another practical approach would be to implement trip schedules during off-peak hours, such as after 8 p.m. to 5 a.m. during weekdays, and weekends, especially on Sundays. By staggering the flow of vehicles during these times, the strain on the road network during peak periods can be reduced. Investing in advanced traffic management systems, such as intelligent transportation systems, would also be beneficial. These sys- tems would optimize traffic flow and provide real-time information to motorists regarding alternative routes, parking availability, and updates on congestion. Strict and consistent enforcement measures should be implemented to combat the issue of vehicles parking on the streets, which exacerbates congestion. Establishing designated parking areas or structures near the harbor would encourage motorists to park in designated spaces instead of occupying the roads.

In addition to the previously mentioned solutions, additional viable long-term measures may be explored to address traffic congestion at Lapuz Wharf. A comprehensive urban planning strategy incorporating a grid road network or an alternative route can significantly facilitate smoother traffic distribution and reduce congestion on Lapuz’s main roads. This way, traffic can be better dispersed, easing the burden on congested areas.

It is also worth considering the relocation of the wharf to less congested areas, such as Brgys. Ticud, Ingore, or Hinactacan in Lapaz District, Brgys. Balabago or Bitoonon in Jaro District, or a reclaimed coastal area in Villa Arevalo District. A careful study of this possibility could be undertaken, exploring approaches like Build-Operate-Trans- fer or Public-Private Partnership, similar to the successful implementation on public markets in Iloilo City. Relocating the pier to a less congested location would not only alleviate traffic congestion but also provide an opportunity to develop improved infrastructure and facilities, ultimately creating a more efficient and convenient experience for both residents and motorists alike. By implementing both short-term and long-term solutions, the authorities have a strong opportunity to effectively tackle the traffic congestion at Lapuz Wharf. There is a high level of confidence in our local government, which has demonstrated a sincere commitment to elevating the city’s reputation globally, that it will soon take proactive measures and prioritize the well-being and convenience of both Lapuz residents and motorists. Through collaborative efforts and a resolute “political will,” Lapuz can and will overcome its traffic challenges, creating a more efficient and prosperous district that benefits everyone.

Dr. Herman Lagon fondly describes himself as a “student of and for life” who, like many others, aspires to a life-giving and why-driven world that is grounded in social justice. He is a physics and math professor of ISUFST, an educational leadership student of USLS, a retired Principal of Ateneo, and an alumnus of UP, UI, and WVSU.

China’s murky $9-trillion debt corner faces funding squeeze

By Lorretta Chen

stock either through a share of the profits through dividends or price appreciation.

I said on ANC Market Edge this week that I do not care that Metro Pacific Investments Corp. (MPI) is delisting. “The move reflected concerns about the conglomerate’s share price. By going private, MPIC could take a longer-term view without worrying about how they might impact quarterly earnings.” Good choice.

Speaking of “longer-term view,” prior to the delisting announcement price increase, the stock was trading at nearly 30 times earnings and at less than 50 percent of its 2016 high so maybe it’s more than stock buyers concerns about quarterly earnings. And MPI pays a dividend of less than

2 percent. Stock buyers deserve “shareholder value.” If more company officials had more personal contact with shareholders like in the good old days, they might appreciate and take more seriously their obligation to their silent partners. Happy customers mean more sales. Happy shareholders mean more stock buying. More stock buying means higher stock prices.

Happy shareholders need to firmly believe that the company is doing all that it can even during difficult times to increase shareholder value not for the next quarter but for the next years. That belief is not going to be found through Zoom or a press release.

THE $9 trillion of Chinese local government bonds that helped drag the rest of the world out of the 2008 financial crisis are a growing risk this time around.

The bonds funded an economic boom in China more than a decade ago, as local authorities borrowed heavily to invest in everything from roads to subways. But one of China’s biggest state-run investors advised asset managers overseeing its money to sell some of the debt, Bloomberg News recently reported, intensifying pressure on the securities. It’s left authorities with the tricky balancing act of defusing a huge risk to the country’s lenders without triggering defaults and destabilizing the financial system. Any implosion of bonds from local government financing vehicles would ripple through the local banking system, further pressuring overall growth in the second largest economy in the world.

Goldman Sachs estimates that 34 trillion yuan ($4.75 trillion) of local government debt sits on the balance sheets of banks it covers. The potential headwinds to growth would hit an economy whose recovery after the pandemic has already been relatively tepid.

The increased risk is highlighted by the jump in the average coupon on LGFV yuan bonds to 4.39 percent in the first six months of the year from 3.94 percent last year despite the fact that China is easing monetary policy.

‘Far-ranging impact’

“THE direct impact of LGFV default would be borne almost completely by domestic investors, but the indirect impact should be far-ranging,” said Brock Silvers, managing director at private equity firm Kaiyuan Capital.

“If China’s downturn eventually runs longer or deeper because the old playbook has finally expired, the impact of LGFV profligacy will then be felt on a global economic scale.”

The latest developments add to hurdles for strained local governments in China. A nationwide property slump slashed their income from land sales while public spending jumped during the pandemic.

The author is a partner of Du-Baladad and Associates Law Offices (BDB Law), a member-firm of WTS Global. The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at rodel.unciano@ bdblaw.com.ph or call 8403-2001 local 140. Mangun.

In a survey published last month, investors across Asia said the ballooning levels of municipal borrowing were the region’s number one financial risk this year. One of the concerns is that the money raised by the LGFVs was used on projects that typically don’t earn enough returns to cover their debts, leaving many reliant on refinancing or injections of government cash to stay afloat.

Adding to the difficulties, many LGFVs have been essentially shut out of the free trade zone bond market after recent guidance from the People’s Bank of China, a significant blow to the vehicles because they were the most prevalent issuers of those securities.

Tight grip

T HE guidance shows that Beijing “continues to hold a tight grip on local debt risks and they wouldn’t want a financing channel that lacks regulatory oversight,” said Sherry Zhao, senior director, international public finance at Fitch Ratings. It’s also left issuers from poorer provinces in particular with fewer financing options at a time when investors are souring on risk. That’s left them facing higher borrowing costs just as the average maturity for onshore LGFV bond issuance falls to the lowest since the data series began in 1999, reinforcing the pressure on regulators to defuse the trouble.

“As you get closer and closer to the center of China’s government guarantees, LGFVs are right there on that border line,” said Logan Wright, head of China markets research at Rhodium Group LLC in New York. “They’re important because if you start questioning the commitment to LGFVs, then what else are you questioning government credibility to defend?” With assistance from Wei Zhou, Taryana Odayar and Dan Wilchins / Bloomberg

A12 Tuesday, July 18, 2023