BusinessMirror

Corporate U.S. healthiest in decades with lower debt under Obama

U.S. poverty and health insurance The percent of people living without health insurance is now lower than the amount of people living in poverty Poverty rate

People without health insurance

S

Recessions highlighted

17%

teve Wynn, founder of the Wynn Resorts Ltd. casino empire, once called President Barack Obama’s administration “the greatest wet blanket to business and progress and job creation in my lifetime.”

Barry Sternlicht, CEO of Starwood Property Trust Inc., said Obamacare was driving down wage growth, and “affecting spending and the desire to buy houses and everything else.” They are among a chorus of corporate executives and lobbying groups that regularly assail Obama for policies that they say are stifling investment and hurting companies. Corporate and economic statistics almost six years into his administration paint a different picture. GlobalEye»C3

16 15

14.5%

14

13.4%

13 12 11 ‘90 ‘92 ‘94 ‘96

‘98 ‘00 ‘02

‘04 ‘06 ‘08 ‘10 ‘12

Source: Reuters Graphic: Erik Rodriguez

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

U.N. Media Award 2008

‘14

© 2014 MCT

BusinessMirror

www.businessmirror.com.ph

week ahead

Foreign exchange

n Previous week: The local currency rallied in the first days of the week, but showed relative calm toward the end of the week. The peso peaked at a six-month high on Monday at 44.995 against the dollar, but quickly recovered to 44.875 on Tuesday. The peso then slumped back to 44.9 to a dollar on Wednesday, and then sustained a two-day recovery to 44.81 on Thursday and to 44.75 at the last trading day of the week. The total traded volume during the week was lower at $3.635 billion from the previous week’s $4.036 billion.

n Week ahead: Bank economists said the market will continue to focus on data releases toward the next week, and thus will retain bias on the US dollar. Bangko Sentral ng Pilipinas (BSP) officials said they will retain presence in the foreignexchange market to smoothen out excess volatilities.

Inflation (September 2014)

Tuesday, October 7

n August inflation: The country’s inflation rate hit 4.9 percent in August, unchanged from the 4.9 percent in July. This brought the country’s eight-month inflation average at 4.4 percent.

n September inflation: BSP Governor Amando M. Tetangco Jr. earlier said inflation may have slowed down to reach 4.1 percent to 4.9 percent in September due to lower prices of food and oil. Economists were also of the view that inflation for September will go down due partly to favorable base effects (see related story).

Production index (August 2014)

Friday, October 10

n July manufacturing: The Philippine Statistics Authority (PSA) reported last month that the country opened the second half of the year with a 9.6-percent growth in the volume of production index, slower from the 13.3 percent in the previous month. The rise in manufacturing production was attributed to the improved production of printing, fabricated metal products, leather, beverage and machinery.

A broader look at today’s business

n Sunday, October 5, 2014 Vol. 9 No. 358

P25.00 nationwide | 7 sections 32 pages | 7 days a week

Govt sets rollout of 17 PPP projects worth ₧553B in ’15 T

By Lorenz S. Marasigan

HE lack of infrastructure has always been one of the weak spots of the Aquino administration and, with the Philippine economy expanding at rates that the country’s current facilities could no longer accommodate, the government had vowed to be more aggressive in pushing key infrastructure deals out of its rich pipeline of projects.

Signs of overheating are discernible with the congestion of major arteries, aviation hubs and seaports, not to mention a looming energy crisis by summer of next year.

To address these, the government has been rolling out key infrastructure deals and drumming up support from the private sector to aid the government in plugging the holes in the country’s infrastructure.

Through mid-2015, the government aims to auction off 17 public-private partnership (PPP) deals amounting to roughly P553 billion, the bulk of which, or 13 projects, will be under the Depart-

ment of Transportation and Communications (DOTC).

A document from the Public Private Partnership Center showed that at least P463.2 billion worth of contracts involving rail-, air- and sea- transport developments will be auctioned off by June 2015.

Listed in the document are the auctions for the operations and maintenance, and the development of a number of aviation hubs, such as the Panglao Airport (P2.3 billion); Laguindingan Airport (P15.9 billion); Puerto Princesa Airport (P5.2 billion); Davao Airport (P40.6 See “PPP,” A2

Economists: Inflation likely eased to 4.2%-5% in Sept

By Bianca Cuaresma

T

he country’s inflation rate is seen to slow down in September this year due to the convergence of lower food prices and favorable base effects in the last quarter of the year, economists said.

According to economic experts polled by the BusinessMirror, inflation will likely fall between the range of 4.2 percent and 5 percent

See “Outlook,” A2

PESO exchange rates n US 44.7570

Mob attacks HK protesters as students shelve talks

in September this year, or will average at 4.55 percent during the month.

The economists’ forecast is slightly higher than the forecast range of Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. announced earlier, at 4.1 percent to 4.9 percent. Its computed average inflation rate is also lower than August’s inflation of 4.9 percent.

Among the drivers cited by the economists echo that of Tetangco’s made public at the end of September this year.

See “Inflation,” A2

H

ong Kong’s pro-democracy demonstrators were attacked by hundreds of men at two sites in the city, prompting student leaders to shelve talks with the government aimed at ending weeklong street protests still engulfing the city.

The city’s embattled leader, Leung Chun-ying, appealed for calm on Friday night after the baying mobs, which began gathering in the afternoon, tried to remove barricades, shouted abuse and tussled with students. Student federation leaders in a Facebook posting accused the government of betraying their trust by allowing organized violence to be directed at them.

With dialogue on hold, prospects receded for a negotiated solution to the biggest crisis Hong Kong and its Communist Party overlords have faced since the British handed back sovereignty in 1997.

Talks were agreed upon by both sides late Thursday as a step to resolve demonstrations that have paralyzed much of central Hong Kong, closing schools, offices and affecting sales at retailers, including Chow Tai Fook Jewellery Group Ltd. The Hong Kong benchmark Hang Seng Index fell 2.6 percent in the week, its steepest drop since March.

See “Protesters,” A2

Residents and pro-Beijing supporters tear down a pro-democracy activist tent in Kowloon’s crowded Mong Kok district on Friday in Hong Kong.

Clashes broke out as Hong Kong residents and proBeijing supporters tried to force pro-democracy activists from the streets they were occupying, reviving the possibility that the weeklong standoff could turn violent despite an attempt by the city’s leader to defuse the situation. AP/Wong Maye-E

n japan 0.4128 n UK 72.2602 n HK 5.7656 n CHINA 7.2774 n singapore 35.2029 n australia 39.2709 n EU 56.7026 n SAUDI arabia 11.9311 Source: BSP (3 October 2014)

News BusinessMirror

A2 Sunday, October 5, 2014

Protesters...

The biggest social upheaval in the city for almost half a century was sparked after protesters began gathering on September 26 to demand a greater choice of candidates in the 2017 leadership contest, and the resignation of Leung.

Police arrested 19 people following clashes in the Mong Kok district north of the harbor, including eight suspected of having triad gang backgrounds, Senior Superintendent Kwok Pak- chung said at a news conference on Saturday. At least 37 people

Outlook...

were wounded on Friday in the violence, taking the number of injured throughout the protests to 131, health officials said.

Numbers of pro-democracy supporters swelled again overnight, escalating tensions as police carrying riot shields took to the streets at one stage. Police had to take the city’s subway to reach the Mong Kok fighting, Kwok said. He asked that protesters move to the main protest site near government offices in Admiralty, which escaped the clashes.

Exports (August 2014)

Friday, October 10

n July exports: The PSA reported that the value of exports grew by 12.4 per-

cent in July, posting the second highest exports among major economies in the East and Southeast Asia, next only to China during the year.

n August exports: Earlier this year, officials were of the view that the continued recovery of the global economy, particularly in advanced markets, will support the country’s trade numbers due to the heightened demand for products. Firms surveyed by the BSP also said that garments and metals will pull exports upward toward the end of the year. Bianca Cuaresma

continued from A8

The winning bidder will start designing and constructing the expressway-dike by April next year.

The thoroughfare should be commercially operational by 2022.

The project involves the construction of a 47-kilometer floodcontrol dike—on top of which will be a six-lane expressway—on an offshore alignment 500 meters away from the western shoreline of Laguna Lake. It includes interchanges, bridges, floodgates and pumps, from Taguig to Los Baños

in Laguna.

It also involves the reclamation of 700 hectares of raw land adjoining the expressway-dike.

The public works department has so far awarded two key infrastructure projects, namely: P1.96billion Daang Hari-South Luzon Expressway project bagged by Ayala Corp. in 2011; and the P15.68billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013.

P17.5-billion development of the Davao Sasa Port.

The port is being eyed as a regional hub come the integration of the economies of the Asean nations next year.

Transportation Secretary Joseph Emilio A. Abaya said that some of these projects are part of his office’s 34 priority ventures for 2014.

Included on the list are the redevelopment of the Ninoy Aquino International Airport (Naia) and the auction for its operations and maintenance, the P62.7-billion Metro Rail Transit (MRT) Line 7, the three terminals of the P7.7-billion Integrated Transport System, and the P10.62-billion Cebu Bus Rapid Transit System, among others.

All these ventures are aimed at reducing the cost of transportation in the country by 8.5 percent.

To do this, Abaya said that the State intends to increase urban mass-transport ridership from 1.2 million to 2.2 million by 2016, amid the development of intermodal facilities.

The government also aims to lessen logistics costs to 15 percent from 23 percent by improving transport linkages and efficiency.

“All these infrastructure that we’re doing such as the reforms in shipping, making airports jet-capable and night-rated, containerizing port operations that would further bring down logistics cost, as well as the Transport Dream Plan that will address congestion in Metro Manila—everything that we’re doing in DOTC contributes to that,” Abaya said, referring to the lowering of transport and logistics costs.

Currently, the government is rolling out a transportation dream plan that costs about P4.76 tril-

3-DAY EXTENDED FORECAST

TODAY’S WEATHER

OCTOBER 5, 2014 | SUNDAY

Typhoon is a cyclone category with winds of 118 - 181 kph.

TYPHOON “NENENG” (PHANFONE) WAS LOCATED AT 1,240 KM NORTHEAST OF ITBAYAT, BATANES (AS OF OCTOBER 4, 5:00 AM)

SBMA/CLARK 24 – 33°C METRO MANILA 23 – 33°C

TAGAYTAY CITY 21 – 29°C

OCT 7

TUESDAY

24 – 33°C

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TUGUEGARAO

24 – 33°C

23 – 33°C

24 – 32°C

24 – 33°C

OCT 8

WEDNESDAY

23 – 31°C

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TACLOBAN

24 – 31°C

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CAGAYAN DE ORO

23 – 31°C

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25 – 32°C

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SBMA/ CLARK

24 – 33°C

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ZAMBOANGA

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

PUERTO PRINCESA CITY 24 – 32°C

TACLOBAN CITY 24 – 30°C

METRO CEBU 24 – 32°C CAGAYAN DE ORO CITY 23 – 32°C ZAMBOANGA CITY 23 – 30°C

PUERTO PRINCESA

ILOILO/ BACOLOD

24 – 31°C

23 – 31°C

SUNRISE

SUNSET

MOONSET

MOONRISE

5:46 AM

5:43 PM

2:17 AM

3:07 PM

LOW TIDE

HIGH TIDE

20 – 29°C

23 – 30°C

HALF MOON FULL MOON

MANILA BAY

OCT 02

3:33 AM

23 – 33°C

23 – 30°C

24 – 32°C

23 – 31°C

23 – 31°C

23 – 30°C

OCT 08

6:51 PM

CELEBES SEA

6:23 AM

1.02 METER

Cloudy skies with rainshowers and/or thunderstorms SEP 24

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

www.panahon.tv

SABAH

2:33 PM

0.07 METER

Partly cloudy to cloudy skies with isolated rainshowers and/or thunderstorms

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

METRO DAVAO 24 – 32°C

OCT 8

WEDNESDAY

23 – 31°C

16 – 24°C

LEGAZPI

OCT 7

TUESDAY

24 – 31°C

16 – 24°C

20 – 29°C

OCT 6

MONDAY

24 – 32°C

16 – 24°C

21 – 30°C

Main factors of lower inflation expectations include lower rise in food prices, favorable base effects and drop in petroleum prices.

“Aside from favorable base effects, lower electricity charges along with month-on-month drops in food and petroleum prices could lead to a sharp deceleration in the headline print,” Bank of the Philippine Islands (BPI) economist Emilio Neri Jr. told the BusinessMirror.

Neri forecasted inflation to hit 4.2 percent in September.

“The impact of Typhoon Mario may have not have been as severe as Glenda’s impact on food supply,” he added.

ING Bank economist Joey Cuyegkeng said he is hopeful that an efficient rice importation program of the government could help ease price pressures on the staple food.

“Base effects on a positive note is likely to kick in soon. And this would likely confirm that we have seen the peak of inflation,” Cuyegkeng said, adding he sees inflation hitting 4.6 percent for September.

With lower inflation expectations in September this year, Hongkong and Shanghai Banking Corp. economist Trinh Nguyen said that the country’s monetary board will likely pause from its tightening cycle in the upcoming October 23 meeting.

“We expect easing inflation to give the BSP space to pause at the October meeting,” Nguyen said. He sees inflation hitting 4.4 percent for September.

Meanwhile, Security Bank economist Patrick Ella sees inflation hitting 5 percent, while First Metro Investments Corp. Senior Vice President Reynaldo Montalbo Jr. said inflation likely hit 4.5 percent. Barclays economist Rahul Bajoria sees inflation at 4.6 percent.

The Philippine Statistics Authority is expected to release the actual September inflation numbers on Tuesday.

METRO CEBU

LEGAZPI CITY 23 – 32°C

ILOILO/ BACOLOD 24 – 31°C

3-DAY EXTENDED FORECAST

BAGUIO

TAGAYTAY

continued from A1

lion through 2030. The road map was laid out by the Japan International Cooperation Agency, who said around P539 billion must be invested in traffic infrastructure beginning 2014 up to 2016, and another P1.52 trillion must be invested from 2017 to 2022. The biggest investment requirement was seen in the period 2023 to 2030, costing at least P2.69 trillion.

These investments, the agency said, will translate to a reduction in transport fares and reduced travel time, resulting in gains and savings.

If the measures laid out by the Japanese consultants were not realized, the country is set to lose some P6 billion a day in productivity losses. Currently, the Philippines is said to be losing some P2.4 billion daily due to the gridlock around the country’s major arteries.

Some of the proposals in the road map are currently being undertaken by the private sector and the State under the Aquino administration’s key infrastructure thrust.

So far, the government has awarded eight PPP deals since the flagship infrastructure program was launched in 2010, involving: the P2.01-billion Daang HariSouth Luzon Expressway; the P16.42-billion first phase of the PPP School Infrastructure Program (PSIP); the P15.68-billion Ninoy Aquino International Airport Expressway; the P3.86-billion PSIP Phase II; P5.69-billion Modernization of the Philippine Orthopedic Center; the P17.5-billion Mactan Cebu International Airport New Passenger Terminal; the P1.72-billion Automatic Fare Collection System; and the P64.9billion Light Rail Transit Line 1 Cavite Extension.

METRO DAVAO

TUGUEGARAO CITY 24 – 33°C BAGUIO CITY 16 – 23°C

OCT 6

MONDAY

METRO MANILA

LAOAG

LAOAG CITY 24 – 32°C

Inflation...

continued from A1

billion); Bacolod Airport (P20.3 billion); and Iloilo Airport (P30.4 billion).

All of these air hub deals are still awaiting the approval of the National Economic and Development Authority (Neda) Board, which is chaired by President Aquino.

In the rail sector, the government has started the bidding for the operations and maintenance of the Light Rail Transit (LRT) Line 2, which runs from Santolan in Pasig to Recto in Manila. The winning concessionaire will also run the extension of the line to Masinag in Antipolo, which is expected to be completed by the time President Aquino bows out from office in 2016.

The agency is currently reviewing the draft feasibility study of the LRT Line 1 Dasmariñas Extension whose indicative cost has yet to be formally announced.

The DOTC, according to the document, is also nearing the completion of the feasibility study for the P176.7-billion North-South Commuter Railway, which is an 89.7-kilometer mass-transport system that will run along the tracks of the dilapidated Philippine National Railways.

Also, the department is also set to complete the feasibility study of the P135-billion Mass Transit Loop, a 12-kilometer underground railway that will link the central business districts of the cities of Makati, Pasay and Taguig.

The study on the possibility of setting up a ferry system along network of the Manila Bay, Pasig River, and the Laguna Lake is also nearing completion.

The approval of the Neda Board is also being sought for the P19.3-billion Motor Vehicle Inspection System deal, and the

continued from A1

n August manufacturing: In the latest Business Expectation Survey, firms in the country see increase in orders of products toward the end of the year, leading to higher volume of production. Likewise, the central bank said demand indicators point to robust real sector activity and other indices pointing to continuous production.

Laguna...

PPP...

continued from A1

news@businessmirror.com.ph

@PanahonTV

2nd Front Page BusinessMirror

A8

Sunday, October 5, 2014

www.businessmirror.com.ph

60+ companies keen on ₧122.8-B Laguna Lakeshore Expressway project–Canilao

A

By Lorenz S. Marasigan

“Following the issuance of the invitation to prequalify to bid and the information memo, we hope to successfully tender the project and get the best deal for both the public and private sector alike. This is the true essence of robust PPP, after all—reasonable returns for the private sector, while ensuring the delivery of effective and high-quality infrastructure projects for the public,” the government official stressed.

The PPP chief vowed to stage a smooth auction as the State has already learned its lessons from the past tenders.

“As we have done in the past, we assure all of you that we are working to make the bidding process as smooth as possible and look forward to seeing the day when this project comes into fruition,” Canilao said.

So far, the multibillion-peso high-standard highway-cum-dike has attracted 22 companies to

fter drumming up support from investors on Friday, the government received an overwhelming response from more than 60 companies that expressed keen interest on participating in the auction for the P122.8-billion Laguna Lakeshore Expressway-Dike Project, the largest key infrastructure contract to date.

Public-Private Partnership (PPP) Center Executive Director Cosette V. Canilao said the government is thankful for the “signifi-

cant interest that local and foreign companies have shown to participate in the bidding process” for the infrastructure deal.

Malaysian investment bank lauds BSP’s inflation targeting policy

M

IDF Amanah Investment Bank Bhd. said the Bangko Sentral ng Pilipinas’s (BSP) inflation targeting policy is successful in anchoring inflation expectations.

MIDF said nominal wage growth has gone down and has been recording muted increase in recent years. Inflation is likely to be within the BSP’s target of 4 percent (+/- 1 percent) this year.

“For 2015 and 2016, the BSP is looking at 3 percent [+/- 1 percent], though the risks is tilted toward an upside, with the coming of El Niño, which will affect crop production and prices, and the persistent port congestion that may cause disruptions to supply and push costs higher,” MIDF said.

“Hence, policy for the next 12 to 18 months will continue to be geared toward ‘disinflation,’” it added.

It noted that the BSP believes that the economy is strong enough to absorb the impact of higher interest rates.

“Thus far, the Financial Supervision Division of the BSP believes that real estate has yet to pose risk to financial stability,” it added.

Real-estate prices are more driven by demand on the back of younger demographics profile, with average age of the population at about 23 years old and increasing migration from the other islands into the cities.

The low base factor was also cited as the factor behind the surge in prices in the last one to two years. Nonetheless, supply has also increased in tandem, hence the BSP expects prices to stabilize

formally join the prequalification stage of the bidding.

In August the public-works agency launched the tender of the expressway project that aims to ease traffic flow and to facilitate faster transport of goods and services to and from Metro Manila, Laguna, Batangas and Quezon.

A two-stage bidding system will be implemented for the auction, meaning, bidders must first prequalify on minimum legal, technical and financial requirements as set by the implementing agency. Only prequalified bidders will be permitted to submit their technical and financial offers for the contract.

Documents to prequalify to submit financial and technical proposals should be forwarded on or before October 16.

Public Works Secretary Rogelio L. Singson stressed that the winning consortium must have ex-

perience and expertise in building dams, reclamation, property development, and running toll roads and expressways.

He added that bidders should be able to use new technologies that will make the construction easier, particularly in the aspect of dredging.

For his part, Laguna Lake Development Authority General Manager Juan Romeo Nereus O. Acosta welcomed the construction of the expressway, saying the project will help mitigate the effects of climate change, which severely affects the coastal towns along the Laguna Lake.

“The Philippines is very vulnerable to climate change. There should be flood-mitigation measures in place, especially in the flood-prone areas along the lake,” he said, adding that there are 65 local government units under the jurisdiction of his office that will

Surge of hiring cuts U.S. jobless rate to 5.9 percent

though likely to remain elevated because of the strong demand.

The MIDF research note said overseas Filipino worker (OFW) remittances “have a life of its own.”

The remittances, which reached $23 billion in 2013, are likely to be sustainable, providing funding to current account and that helped to support the exchange rate.

These inflows are more efficient in the sense that they reach out and got distributed widely throughout the provinces, which help support lending activities in rural areas.

OFW remittances help offset the impact of high jobless rate.

However, the country still needs to find balance in exploiting its young demographics and build rising middle-income class.

“The country is striving to move away from the stigma of ‘labor exporter’ and aspires to be a broad-based growth-driven economy to catch up with the other more advanced Asian countries,” it said.

Various law reforms and economic programs to encourage foreign direct investments are testaments to the country’s move to transform itself.

It noted that the recent upgrade in its credit rating, strong performance in the stock market and the success in its PPP programs thus far showed that these measures are welcomed by investors.

OFW remittances and the thriving business-process outsourcing industry contributed significantly to its current account, as well as economic growth. G. Factao

By Christopher S. Rugaber

signs point toward improvement, 62 percent of likely voters still consider the Percent of 4 7.4 economy “poor,” litcivilian labor 2 force that tle changed from two 0 ’13 is unemployed, ’03 years earlier. by month, Given the latseasonally est conditions, the adjusted: 5.9% Fed may not move 10 10 up its timetable for 88 raising interest rates 66 to control inflation, economists say. Most 44 expect the Fed won’t 22 act until the middle 00 of next year.

September September

Friday’s data ’13 ’14 “are generally con© 2014 MCT Source: U.S. Bureau of Labor Statistics sistent with the Fed’s economic forecasts and, therefore, should not change their thinking,” Doug Handler, an economist at IHS Global Insight, said in a note to clients.

The Fed has kept its benchmark interest rate near zero for almost six years in an effort to encourage more borrowing, spending and growth.

When the Fed begins raising the rate, the effects will ripple throughout the economy and could have a profound impact on businesses and consumers. Rates for mortgages, auto loans and credit cards will probably rise. Businesses may cut back on borrowing. And stock markets frequently drop when rates rise.

Lower unemployment usually forces up wages as employers bid for a dwindling supply of job-hunters. Higher paychecks can also push up prices. Some Fed policy-makers have already warned that unemployment is low enough to spur higher inflation.

Jobless 10 ANNUAL 8 6% rate 6

The Associated Press

W

ASHINGTON—A surge in hiring last month helped drive the nation’s unemployment rate down to a six-year low of 5.9 percent—within striking distance of what economists consider a healthy level.

The encouraging numbers—contained in the last government report on unemployment before the midterm elections—pushed the Dow Jones average up 209 points to 17,010 and could give an important boost at the polls to Democrats and to incumbents, in general.

US employers added a robust 248,000 jobs in September and generated 69,000 more jobs in July and August than previously reported, the government said on Friday. That helped bring unemployment down from 6.1 percent in August.

The jobless rate now stands at the lowest level since July 2008, in the middle of the Great Recession, and is getting close to the roughly 5.5 percent that the Federal Reserve (the Fed) considers consistent with a healthy economy.

In a speech in Princeton, Indiana, President Barack Obama exulted over the numbers, noting that businesses have added jobs for 55 months in a row, the longest such stretch on record.

He credited “the drive and determination of the American people,” and added: “It’s also got a little bit to do with some decisions we made pretty early on in my administration.”

Nevertheless, other gauges of the job market still bear scars from the recession. Wages aren’t rising. And the number of people out of a job for more than six months or stuck in part-time jobs when they want full-time ones remains elevated.

An Associated Press-GfK poll found that the economy is the top issue in voters’ minds as the November 4 elections near, and, while most

benefit from this venture.

The thoroughfare-cum-dike project will help mitigate flooding along the western coast of the Laguna Lake running from Taguig to the town of Bay in Laguna. It will also serve as an alternative transport route to the congested South Luzon Expressway and enhance the hydrology for the ecosystem of Laguna Lake.

Singson said the agency is considering the suggestion of extending the deadline for the submission of prequalification documents by three months to allow more parties to participate in the auction.

“We will seriously consider it, as long as it does not affect the submission date for the bids set for July 2015,” he said.

The deadline for the submission of bids is now scheduled on July 6 next year, a notice of award is targeted to be issued a month after.

See “Laguna,” A2

Daang Hari-SLex road link NOW 52% complete

C

ONSTRUCTION of the P2.01-billion Daang Hari-South Luzon Expressway (Slex) Link is now halfway done, according to an update from the PublicPrivate Partnership (PPP) Center.

The PPP Center’s web site showed that the facility is now 52-percent complete. The new thoroughfare is expected to be launched in the first quarter of next year.

Earlier, AC Infrastructure Holdings Inc., the infrastructure arm of the Ayala Corp., announced that the thoroughfare will begin commercial operations in June this year, but was pushed back to the third quarter of the year due to the late signing of the contract involving issues on the link between Daang Hari Road and Slex.

But the recent signing of an agreement with South Luzon Tollways Corp. (SLTC) paved the way for the concession to “go full blast” in the construction of the interchange.

The Daang Hari-Slex project was the first PPP project auctioned off and awarded under the flagship infrastructure program of the Aquino administration. The project starts from the junction of Daang Reyna and Daang Hari in Las Piñas/Bacoor in Cavite to Slex through the Susana Heights Interchange in Muntinlupa City, traversing the New Bilibid Prison Reservation.

Under the initial design, the proposed link road will use the Susana Heights Interchange as exit and entry from north and south of Slex and will include the construction of a new bridge/widening of the existing bridge crossing Slex, as well as the expansion of the Susana Heights toll plaza.

Ayala bagged the 30-year concession contract in 2011. The project is being implemented by the Department of Public Works and Highways under a build-transfer-operate scheme.

Inflation highest in Yolanda-hit Central Visayas, BSP report shows

By Bianca Cuaresma

T

he Yolanda-stricken Central Visayas has been found to be experiencing the highest acceleration in consumer prices, necessitating the need for assistance and access to resources this year, the Bangko Sentral ng Pilipinas (BSP) said.

In a report published recently, the central bank said that inflation rate is highest among the poorer areas in the country, most particularly in Region 8.

“The inflation rate higher for the bottom 30 percent [of the income group] is true in almost all the regions, with Region 8 experiencing the highest inflation rate possibly due to the impact of Typhoon Haiyan [local code

name Yolanda], which devastated farms and destroyed infrastructure causing a spike in transportation and logistics costs,” the central bank said.

The trend is likewise true with the lower-income group population in other regions, according to the central bank.

The central bank explained that the lower 30 percent of the income groups in the country are most affected by inflation, which is due to the fact that these lowerincome individuals spend a larger bulk of their salaries to food prices.

In particular, food items comprise 50 percent of the total consumer price index in all income groups, or the average for the entire country. The bottom 30 percent of the income class,

Q1 2014 INFLATION RATES ALL INCOME VS. BOTTOM 30% BASE YEAR: 2000 12 10 8 6 4 2 0

NCR CAR R1 R2

R3

R4A R4B R5 R6

R7

R8

n BOTTOM 30% n ALL INCOME

R9

R10 R11 R12 ARMM

however, spend about 75 percent of their total salaries to food items, particularly rice, which had the largest increase of prices in the last months.

“The steady increase in the inflation rates for the bottom 30 percent bears watching given that this income group is most economically sensitive and vulnerable to price increases,” the central bank said.

The central bank also said that the higher inflation in the country for the bottom 30 percent can potentially increase the incidence and severity of poverty in the short run.

The BSP also warned that high inflation in the poorer sectors of the economy could exact a toll on the country’s long-run

development as lower-income households, in order to meet food requirements, reduce spending on health and education.

The BSP had vowed to “take special interest” in improving the government’s attention to supply side management, which could include improving the scheduling and monitoring of rice imports; tighter monitoring of retail prices; lowering logistics and shipping costs; and increasing agricultural productivity.

The country’s inflation has hit 4.9 percent in August this year, nearing the upper bound of the government’s target due to higher prices of food. The Philippine Statistics Authority will release the September inflation rate on Tuesday.