The Standard - 2015 June 20 - Saturday by Manila Standard

ROTARY CLUB OF MANILA NEWSPAPER OF THE YEAR 2015 VOL. XXIX  NO. 120  2 Sections 24 Pages P18  SATURDAY: JUNE 20, 2015  www.thestandard.com.ph  editorial@thestandard.com.ph

House says it won’t let go of Wang Bo probe

POE TOPS SWS SURVEY SWS on 2016 Elections:

PRESIDENTIAL PREFERENCE

By Sandy Araneta

PHILCONSA SUIT

42% POE

34% BINAY

21% MAR

20% DUTERTE

7% ESTRADA

7% LACSON

4% ESCUDERO

4% SANTIAGO

3% MARCOS

2% CAYETANO

Against the Bangsamoro entity. Philconsa president Ferdinand Martin Romualdez along with former Senator Francisco Tatad, Archbishops Romulo De la Cruz and Fernando Capalla, former National Security Adviser Norberto Gonzales, and Philconsa chairman Manuel Lazaro leave the Supreme Court after ﬁling a petition against the Framework Agreement on the Bangsamoro and the Comprehensive Agreement on the Bangsamoro on Friday. Rey E. Requejo

Binay still optimistic despite drop in poll ratings By Vito Barcelo and Macon Ramos-Araneta THE camp of Vice President Jejomar Binay said Friday they were optimistic of his chances to become president in 2016 despite a drop in his recent opinion survey scores.

The vice president’s media affairs spokesman, Joey Salgado, said despite the persistent attacks on the Vice President, they were thankful for the support Filipinos were showing for Binay. A consistent leader in both the Social Weather Station (SWS) and Pulse Asia opinion polls,

Binay has been overtaken in the latest surveys by Senator Grace Poe. “The campaign continues to learn from the ground and adjust its efforts accordingly. The Vice President respects the survey results,” Salgado said in a statement.

Binay, he said, described the surveys as barometers of the pulse of the public at a point in time. Senator Ferdinand Marcos Jr., who has expressed his presidential ambitions, said he was not concerned with Poe’s recent showing. Next page

SENATOR Grace Poe pulled ahead of Vice President Jejomar Binay in the latest Social Weather Stations (SWS) survey of voter preferences for the next president. In its second quarter survey, Poe was chosen the best by 42 percent of the respondents as the best candidate to succeed President Benigno Aquino III when he steps down next year. Binay slid to second place in the survey with 34 percent, while the presumptive presidential candidate of the ruling Liberal Party, Interior Secretary Manuel Roxas II came in third with 21 percent. Poe and Binay were also no. 1 and no. 2 respectively in the most recent Pulse Asia survey. In the SWS survey, other candidates mentioned by the respondents and their respective showings were Davao City Mayor Rodrigo Duterte, 20 percent; ousted President and current Manila Mayor Joseph Estrada and former senator Panfilo Lacson, with 7 percent each; Senator Francis Escudero and Senator Miriam Defensor Santiago, with 4 percent; Senator Ferdinand Marcos Jr., 3 percent; Senator Allan Peter Cayetano, 2 percent; former House Speaker Manny Villar, 1 percent; (unspecified) Binay, 1 percent; Senator Loren Legarda, 1 percent; and Senator Antonio Trillanes, 1 percent. Some 9 percent of the respondents had no answer, while 5 percent said they didn’t know or refused to answer. The June 2015 SWS survey was conducted from June 5 to 8, 2015 using face-to-face interviews of 1,200 adults nationwide, 300 each in Metro Manila, Balance of Luzon, Visayas and Mindanao (sampling error margins of 3 percent for national Next page

Filipinos’ worry: War with China

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Poe From A1...

154 and counting. Manila Mayor Joseph Estrada walks away from the Rizal monument after offering flowers on the occasion of the hero

Jose Rizal’s 154th birthday on Friday. At the background is the controversial Torre de Manila building that critics say is marring the view of the monument. Danny Pata

Probe of Wang Bo case will remain with House el to investigate allegations that suspected Chinese crime lord Wang Bo paid Immigration officials in exchange for ordering his release.

Guingona also noted in his resolution they want to establish if bribe money was used to gain the approval for the BBL during plenary debates in the House of Representatives. “It is imperative for the Congress...to ensure that the legislative process for the passage of the BBL, or any other bill for that matter, should not be tainted with issues of bribery,” Guingona said, reversing his earlier statement that he

doubted the veracity of the allegations. In separate interviews, Reps. Jonathan de la Cruz of Abakada party-list, Albee Benitez of Negros Occidental, Jerry Trenas of Iloilo and Jorge Banal of Quezon all rejected the proposal of Davao City Rep. Karlo Alexei Nograls that the probe be handled by the Senate, since congressmen should not be investigating themselves.

that there is no formal announcement. On the opposition side, there was also a change,” Marcos said. “Other players have come into the picture. Other team-ups have been proposed.” Marcos said Poe’s lead was not suprising. “I think we are expecting that more or less that would be the result. We didn’t know what exactly the numbers would be but the trends in the past few months seem to indicate that is what is going to happen. Again, to look at the numbers, you have to see what’s behind them,” he said. Senator Sergio Osmena III, on the other hand, advised Poe not to be complacent because a political

campaign is dynamic and subject to change. This was the time she solidified support of the voters, he added. Senator Aquilino Pimentel III, chairman of the Senate Blue Ribbon subcommittee investigating Binay on allegations of corruption, said the Vice President’s camp should not blame the Senate hearings for the drop in his survey ratings. Pimentel’s subcommittee has conducted a total of 21 public hearings on allegations that the Makati City Hall Building 2 was overpriced when Binay was the mayor. His panel has also investigated other allegations of corruption against Binay, who describes

the Senate probe as biased and politically motivated. He has denied all allegations of wrongdoing. Pimentel said Binay should blame himself for committing the anomalies being investigated by the Senate. The latest survey results, Pimentel added, showed the public believed the allegations against Binay. He added that he expected Binay’s ratings in subsequent opinion polls to drop even further. “His ratings will drop more if we wrap up with the Ssenate investigation on his alleged anomalies in Makati, BSP and Pag-ibig,” Pimentel said.

By Maricel V. Cruz and Macon Araneta

LAWMAKERS said Friday the House of Representatives must continue its investigation into allegations that some congressmen received bribes to pass the Bangsamoro Basic Law (BBL) and brushed aside a proposal to have the Senate take over, saying this would be a waste of time. Their remarks came as Senator Teofisto Guingona III, chairman of the Senate Blue Ribbon Committee, filed a resolution calling for his pan-

Binay From A1... “It’s not that the other candidates are afraid of her, but of course, we have to consider what she will end up doing and how,” said Marcos in Thursday’s “Kapihan sa Senado.” “But she’s not the only consideration. There are many other candidates that are in the picture, that have to be considered,” Marcos added. Marcos has not declared he will run for president or vice president, however. He added that the main players outside of Binay had still not made their moves. “It’s not yet clear. The only thing that is clear, I mean, on the administration side, is our assumption that (DILG) Secretary Mar (Roxas) will run, although it seems to be

percentages, and 6 percent each in the regions). Amid the flurry of new opinion poll findings, the Palace said Friday the President would endorse the presidential candidate who would be able to continue the reforms he started. “Surveys are always part of your changing political landscape, as we mentioned. But, more importantly, the primary concern really for the President is who has the integrity, who has the character to be able to continue the reforms that the President has started,” said deputy presidential spokesperson Abigail Valte. In the same survey, the public satisfaction rating of the President went up 10 percentage points since March, but most of the gains did not come from Metro Manila but from Mindanao, the rest of Luzon and the Visayas. Aquino’s net satisfaction rating went up from +11 in March 2015, to +30 in June 2015. Public satisfaction with Aquino as of June 5 to 8 was highest in Mindanao, at a “good” +39 marking a 14-point gain from the “moderate” +25 Aquino got in March. Aquino’s lowest rating came from Metro Manila at a “neutral” +8, which hardly moved from the +7 last March. His net satisfaction rating improved two grades to a “good” +30 from the “neutral” -3 two months ago, while it remained at “good” in the Visayas—rising to +35 from +30. The SWS terminology for Net Satisfaction Ratings are as follows: +70 and above, “excellent”; +50 to +69, “very good”; +30 to +49, “good”; +10 to +29, “moderate”, +9 to -9, “neutral”; -10 to -29, “poor”; -30 to -49, “bad”; -50 to -69, “very bad”; -70 and below, “execrable.” SWS considers the movement from one classification to another as either an “upgrade” or “downgrade.” Aquino’s net satisfaction rating rose two grades in Class ABC to a “good” +44 (64 percent satisfied, 20 percent dissatisfied), or a huge 38 points from the “neutral” +6 (41 percent satisfied, 35 percent dissatisfied) in March. Aquino’s rating in Class E went up a grade to a “good” +34 (58 percent satisfied, 23 percent dissatisfied), 16 points higher than the “moderate” +18 (49 percent satisfied, 32 percent dissatisfied) in March. Presidential Spokesperson Edwin Lacierda said the most recent survey results showed the President was far from being a lame duck, as some critics have claimed. Communications Secretary Herminio Coloma Jr. said the President was gratified that Filipinos recognized the efforts ot the administration to improve the delivery of public services and to implement reforms.

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Philconsa questions BBL pacts By Rey E. Requejo

THE Philippine Constitution Association and three Catholic leaders on Friday asked the Supreme Court to declare unconstitutional the two agreements signed by the government with the Moro Islamic Liberation Front that envision the establishment of a Bangsamoro government in lieu of the Autonomous Region in Muslim Mindanao. Philconsa, through its president and Leyte Rep. Ferdinand Martin Romualdez, also asked the high court to reject the Framework Agreement on the Bangsamoro or FAB dated Oct. 12, 2012, and the Comprehensive Agreement on the Bangsamoro or CAB dated March 27, 2014, which grant “unconscionable” financial, social, economic and political benefits to the MILF. Romualdez, aside, the other petitioners were former Senator Francisco Tatad, Archbishops Ramon Arguelles, Fernando Capalla and Romulo de la Cruz, and former National Security Adviser Norberto Gonzales. The FAB was negotiated and signed by former government peace panel chief and now Supreme Court Associate Justice Marvic Leonen, while the CAB was negotiated and signed by incumbent government chief peace negotiator Miriam Coronel Ferrer with MILF peace panel head Mohagher Iqbal. Pending the judgment on the unconstitutionality of the FAB and the CAB, the petitioners sought a temporary restraining order enjoining Budget Secretary Florencio Abad and any other official from further releasing funds for any and all activities to pursue or implement the FAB and the CAB and any all acts and issuances. The petitioners named Leonen, Ferrer, Iqbal, Abad and the Commission on Audit as respondents in the case. They say the conduct of the peace process with the MILF was made in violation of Executive Order 125 issued by former President Ramos, which requires the presence of a panel of advisers composed of one each from the Senate, the House of Representatives and the Cabinet to be designated by the President. They also say Leonen and Ferrer abused their authority when they agreed to cause the amendment of the Constitution by signing the FAB and CAB. They say the FAB and CAB grant concessions to the MILF beyond the powers of the President to grant and in violation of the provisions of the Constitution and the existing laws. “The FAB and CAB made a real and actual commitment to fully implement their letter and spirit by effecting the necessary amendments to the Constitution and exiting laws,” the petitioners say in their petition. “Lamentably, respondents Leonen and Ferrer in their official and personal capacities had neither power nor authority to commit the government to statutory changes.”

Poor management. Members of Bayan Muna protest at the MRT’s Kamuning station to denounce the poor management of the train system. Lino Santos

3 provinces want out of Bangsamoro area By Christine F. Herrera THREE provinces and four cities want out of the Bangsamoro territory as they are being “compelled to be part of it against their will,” officials of the Philippine Constitution Association and two administration lawmakers said Friday. The provinces of Palawan, Zamboanga and Lanao del Norte and the cities of Palawan, Zamboanga, Cotabato and Isabela had already voted No four times to reject their inclusion in the Autonomous Region in Muslim Mind-

anao, Philconsa president and Leyte Rep. Ferdinand Martin Romualdez said. Palawan Rep. Frederick Abueg and Zamboanga City Rep. Celso Lobregat have demanded that the House plenary declare in the controversial Bangsamoro Basic Law the explicit exclusion of the province and city of Palawan and the province and city of Zamboanga from the Bangsamoro political entity. Philconsa officials also denounced the government’s decision to “expand the core territories by compelling these areas to be

part of the Bangsamoro territory against their will.” “The BBL also expanded the core territories that included the cities of Cotabato and Isabela and the province of Lanao del Norte against their will,” Romualdez said. Abueg and Lobregat claim that their provinces and cities have already voted an overwhelming No in the plebiscites for the ARMM. “These provinces and cities all voted No four times but the results of the voting were not included in the BBL,” said Romualdez, the leader of the House In-

dependent Minority Bloc. “The people of Palawan vehemently oppose the inclusion of the Province of Palawan and the City of Puerto Princesa in the Bangsamoro Entity,” said Abueg, the author of House Resolution 2130 seeking the province’s exclusion from the Bangsamoro political entity. Abueg and Lobregat have been listed among the 33 lawmakers that will interpellate the sponsors, led by Cagayan de Oro Rep. Rufus Rodriguez, chairman of the House special ad hoc committee on the BBL.

Ailing Miriam remains top senator By Macon Araneta

BBL critic. Former Negros Rep. Jacinto Paras files a petition before the Supreme

Court seeking to stop the implementation of the Bangsamoro Basic Law in case it is approved. Danny Pata

SENATOR Miriam Defensor-Santiago said Friday it’s her cancerstricken body and not her brain that is sick, and that’s the reason she remains the top performer in the number of bills and resolutions that has been filed in the Senate. She said she is not yet physically fit to attend the plenary sessions, but she has managed to discharge her duties as the head of certain committees and continues to file bills and resolutions weekly. A Senate document says Santiago had filed 1,324 bills and resolutions a

fifth of the total number of bills and resolutions filed by all senators before the Senate adjourned sine die on June 11. Santiago was followed by Senator Jinggoy Estrada with 642 bills and resolutions and Senator Antonio Trillanes IV with 344. Estrada is detained at the PNP Custodian Center in Camp Crame over charges he misused his pork-barrel funds. Reckoning bills and resolutions separately, Santiago still topped all her colleagues with 671 bills and 629 resolutions. With about a year before the 16th Congress comes to a close, Santiago is still No. 1 despite having an-

nounced last year that she had been diagnosed with stage-four lung cancer. She is set to end her Senate stint as the consistent top-performer in her three terms in chamber. Santiago was senator from 1995 to 2001 and from 2004 to 2010. She was re-elected in 2010 and is limited by law to run for another term in 2016. In the 16th Congress, Santiago co-authored several bills that became law, including the Open Learning and Distance Education Act; the Youth Entrepreneurship Act; the Student-Athletes Protection Act; the Open High School System Act; and the Fair Competition Act.

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Filipinos worry about war

EIGHT in 10 Filipinos are worried a festering South China Sea territorial dispute could lead to “armed conflict” with the world’s most populous nation, an independent polling outfit said Friday.

Hijabs for sale. A saleslady arranges traditional Muslim women’s headgear at a store in Cotabato City. Philippine Muslims joined the rest of the Islamic world in marking the start of the holy season of Ramadan this week. MARK NAVALES

CARAT war games start off Palawan By Priam F. Nepomuceno THIS year’s Cooperation Afloat Readiness and Training (CARAT) exercises, which take place off Palawan’s waters, will formally open Monday afternoon with 600 American and Filipino military personnel slated to take part in the bilateral naval maneuvers. CARAT 2015 public affairschief Lt. Liezl Vidallon said the opening ceremonies will take place at 1:30 p.m. at Naval Station Apolinario Jalandoni in Puerto Princesa City, Palawan. Three-hundred Philippine Navy sailors will be taking part in the drills along with another 300 from the United States Navy. CARAT 2015 started last June 18. It is expected to last until June 30. Filipino ships participating in the 12day activity include the BRP Gregorio Del Pilar (PF-15) and the BRP Ramon Alcaraz (PF-16), one AW-109 “Power” helicopter, an Islander aircraft, a Naval

Special Operations team, one Marine company and a naval mobile construction battalion. The American side will be fielding the USS Fort Worth (LCS-3), USS Safeguard (ARS-50), a Lockheed P-3 “Orion” maritime patrol aircraft, a naval expeditionary combat training command, training teams, riverine, EODs and Seabees. Meanwhile, the latest class of American warship, the USS Fort Worth (LCS-3), a “littoral combat ship,” will be making its first appearance at CARAT 2015. The LCS-3 is a class of relatively small surface vessels intended for operations in the littoral zone (close to shore) by the United States Navy. It was “envisioned to be a networked, agile, stealthy surface combatant capable of defeating anti-access and asymmetric threats in the littorals.” The USS Fort Worth, along with the BRP Gregorio Del Pilar and BRP Ramon

Alcaraz, two ex-Hamilton class cutters acquired in 2011 and 2012, respectively, will be conducting gunnery exercises this coming June 21or 22 in the east side of Palawan. Littoral combat ships (LCSs) have the capabilities of a small assault transport, including a flight deck and hangar for housing two SH-60 or MH-60 Seahawk helicopters, a stern ramp for operating small boats, and the cargo volume and payload to deliver a small assault force with fighting vehicles to a roll-on/roll-off port facility. Standard armaments include Mark 110 57 mm guns and “rolling airframe missiles,” particularly the RIM 116 small, lightweight, infrared homing surface-to-air missile. The USS Fort Worth was commissioned on Sept. 22, 2012. Vidallon said the maneuvers have nothing to do with the ongoing tensions between the Philippines and China at the West Philippine Sea. PNA

Manila-based Social Weather Stations said this sentiment had weighed on people’s minds since the Philippines backed down from a tense standoff with China over control of rich fishing grounds around Scarborough Shoal in 2012. The study showed 84 percent of 1,200 respondents were “worried” about armed conflict with China. About half were “worried a great deal” while more than a third were “somewhat worried.” The same poll has been conducted every year since 2012, and in each of the surveys at least 80 percent of respondents have been concerned that the sea dispute could escalate into a full-blown conflict with the Philippines’ powerful Asian neighbor. “It is natural for us to worry about armed conflict as it is a fact that it does not benefit anyone,” presidential spokeswoman Abigail Valte told AFP, reacting to the survey results. “This is precisely why our government has pursued peaceful means to resolving the dispute.” The Scarborough Shoal standoff ended with Beijing taking control of the fishing area, which lies 220 kilometers off the main Philippine island of Luzon. The shoal lies 650 kilometers from Hainan island, the nearest major Chinese land mass. China and the Philippines are also in dispute over other islands and reefs in the South China Sea, with the Philippines seeking arbitration from a United Nationsbacked body. China has refused to participate in the proceedings. Vietnam, Malaysia, Brunei and Taiwan also have overlapping claims over the South China Sea, which hosts major shipping lanes and is believed to hold vast mineral reserves. China has ramped up construction of artificial islands in the area to reinforce its sovereignty claim over most of the sea, even waters close to the shores of its neighbors. The Philippine poll also showed a rising number of Filipinos disapproved of their government’s handling of the dispute as China undertook other actions to reinforce its claim, including alleged harassment of Filipino fishermen. AFP

Visaya, others get promoted By Florante S. Solmerin SOUTHERN Luzon Command commander Major General Ricardo Visaya will receive his three-star rank of lieutenant general this weekend or early next week, after President Benigno Aquino III approved his promotion along with those of other senior officers. Aquino signed Visaya’s promotion Thursday despite alleged efforts to stop his promotion because of reports that he was going to replace outgoing Armed Forces of the Philippines (AFP) chief of staff General Gregorio Pio Catapang Jr. Catapang is set to reach the mandatory retirement age of 56 on the third week of July. Also promoted to the next higher rank are Intelligence Services of the AFP chief Brigadier General Arnold Quiapo and 1st Infantry Division Commander Gerry Barrientos, both classmates of Visaya at the Philippine Miltiary Academy’s Class “Matikas” of 1983.

Two other classmates of Visaya, Colonels Bobet Moog and Joel Celino, were promoted to brigadier general. Aside from Visaya, other contenders for the military top post are Philippine Air Force chief Lieutenant General Jeffrey Delgado (PMA “Sandigan” Class of 1982) and Army chief Lt. Gen. Hernando Irriberi (PMA 1983). Both Visaya and Delgado have personal ties with Aquino, having been presidential security aides before. Irriberi is believed to be close to Defense Secretary Voltaire Gazmin. Irriberi was facing criminal and administrative charges before the Office of the Ombudsman for delaying the delivery of three ammunition contracts worth P97.8 million of a supplier, who has been seeking for his preventive suspension. There is also talk that Irriberi will be kicked upstairs and named AFP vice chief of staff when Lt. Gen. John Bonafos retires this August.

Inspection. Sen. Cynthia Villar joins officials of the Philippine National Railways officials during an inspection tour the PNR’s commuter trains on Friday.

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LGU share in fire fees still unpaid, Recto says By Macon R. Araneta THE national government owes several local government units “hundreds of millions” representing their 20 percent share from Fire Code fees collected, said Senate President Pro Tempore Ralph Recto, who said a Commission on Audit report pegged the unpaid amount at P723 million from 2010 to 2013. If the 2014 share of towns and cities is included, the outstanding obligation “will be about P1 billion,” Recto said. The senator said “current efforts by the national government to settle these payables must bear fruit soon as what will be plowed back will boost the local governments’ fire prevention capabilities.” In its audit report on the Bureau of Fire Protection’s books for 2013, which is the latest, the COA said the 20 percent share of LGUs amounting to P723.9 million “were not released to the concerned LGUs from 2010 to (2013).” The COA blamed this on the absence of “guidelines on its implementation.” As a result, “most of the fire stations and fire trucks in the locality were not properly maintained and equipped,” states the COA’s audit observation. While the problem has been festering for years, it was only in February this year that a Joint Circular by three departments – Department of Finance, Department of Interior and Local Government and Department of Budget and Management – was issued to flesh out the fund release protocols. “So hopefully the five-year wait of LGUs for their share from the Fire Code income will end soon,” Recto said. “With one fire breaking out somewhere in the country every 56 minutes,” any move to bring “more resources to LGUs will ease their fire equipment backlog, a situation which has reached general alarm,” Recto said. The BFP said 40,696 fire incidents from 2010 to 2013 claimed 990 lives, injured 2,874, and destroyed P27.1 billion worth of property.

Panagat festival. A young female resident of San Vicente town in Northern Samar leads other dancers in celebrating its annual Panagat Festival in honor of its hardworking fishermen. MEL CASPE

Govt starts marking paths of Metro faults By Joel E. Zurbano THE government on Friday started marking structures and areas where the West Valley Fault passes as part of its preparedness plan in the event a powerful earthquake hits Metro Manila. The event, dubbed as “Walk the Fault”, started in the villages of Pinagsama, North Signal, Central Signal and Maharlika in Taguig City. “This activity is not intended to cause unnecessary alarm, but to make the public more conscious and start preparations from within the homes and neighborhoods,” said Francis Tolentino, chairman of the Metro Manila Development Authority. The MMDA spearheaded the activity in close coordination with the Philippine Institute of Volcanology and Seismology and the city government of

Taguig to increase awareness among residents on how to survive a major earthquake. Phivolcs identified Taguig as one of the cities in Metro Manila to be severely affected by a massive quake if the Valley Fault System (VFS) moves. The agency warned the public of a massive quake if the Valley Fault System moves. The system is comprised of the 10-kilometer East Valley Fault in Rizal, and the 100-kilometer West Valley Fault, which passes through six Metro Manila cities and parts of the Bulacan, Cavite, Laguna and Rizal provinces.

According to the VFS, areas in Taguig that are situated over the West Valley Fault include Bagumbayan, Bagong Tanyag, Upper Bicutan, Central Bicutan, Lower Bicutan, Maharlika Village, Pinagsama, North Signal Village, Central Signal Village, South Signal Village, Ususan and South Daang Hari. Aside from Taguig, the West Valley fault also passes through Quezon City, Marikina, Pasig, Makati and Muntinlupa. Tolentino said Taguig is just the start of the activity which will cover the 84 other barangays which are directly in the fault line’s path. He added thermoplastic materials will be used as markings which do not easily fade and reflect at night. For her part, Taguig City Mayor Laarni Cayetano said she ordered local officials to prepare a revised contingency plan following reports that 12 areas in the city were identified

as vulnerable sites. She said they have started their preparation for disasters as early as 2010 and have conducted a survey of those who would be affected. Integrated Survey System project head Eileen Gamo said a total of 1,184 structures will be affected by the West Valley Fault, including households, institutions and commercial establishments. “We have also identified the resources outside the 10-meters centerline (zone) These are hospitals, private and government, open courts, open spaces, water refilling stations, grocery stores, rice retailers, pharmacies, mortuaries and gas stations. We have started organizing,” she said. Phivolcs chief Renato Solidum reminded the people of the danger which the actual shaking may bring even structures are outside of the faultline.

Deniers say Pope wrong MIAMI – US climate change skeptics and deniers said Thursday that Pope Francis was wrong to urge action against global warming because continuing to burn cheap fossil fuels could actually help the poor. The reactions to Pope Francis’ encyclical on climate change ranged from anger to polite disagreement, with US Republican presidential candidate Jeb Bush saying he respects the Catholic leader but prefers to make decisions about the environment in the political realm. “Look, the climate is changing,” Bush said at a

campaign event in Iowa, according to CNN. “I believe there are technological solutions for just about everything. And I’m sure there’s one for this as well. So I respect the Pope, I think he’s an incredible leader, but I think it’s better to solve this problem in the political realm.” Bush, who announced his candidacy for US president on Monday, is Catholic but said religion would not guide his leadership on climate change. “I don’t go to mass for economic policy or for things in politics,” he said. Some opponents of the Pope

took to Twitter to express their disapproval. “Red Pope calls for CULTURAL REVOLUTION.’ Been there, done that,” former energy executive and activist Steve Milloy posted from the Twitter handle @JunkScience, along with a picture of Chinese communist revolutionary Mao Tse-tung. After a draft of the Pope’s speech leaked on Wednesday, the conservative Heartland Institute took issue with the Pope’s declaration that human activity, including the reliance on polluting fossil fuels, is harming the Earth. AFP

Rizaliana. Joan Rosas, curator of the UP Manila Museum of the History of

Ideas, inspects the lenses that Jose Rizal used in his practice of optometry on the 154th anniversary of the national hero on Friday. DANNY PATA

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A6 Drivers’ license contract awarded By Darwin G. Amojelar THE Transport Department expects to resolve the current shortage of driver’s license cards at the Land Transportation Office (LTO) as it awarded a contract to supply five million pieces of driver’s license cards to Allcard Plastics Philippines, Inc. Allcard Plastics bagged the project after submitting the lowest bid of P336.868 million. Allcard’s bid is 25.3 percent lower than the original approved budget of the contract—which was set at P 450 million—thereby generating government savings of around P113 million. The cost of the card is roughly around P67.37 per piece, well below the cap of P90.09 per piece. Procurement of the LTO License Cards supply project opened last May 22, wherein three bidders qualified: Allcard, current driver’s license card supplier Amalgamated Motors Philippines, Inc. (AMPI), and the joint venture of DVK Philippines Enterprises and Cardz Middle East Trading LLC. The financial bids of AMPI and the DVK-Cardz JV were P373.880 million and P428.8 million, respectively. Under the contract, Allcard Plastics will deliver the license cards in equal monthly tranches over a one-year period counted from the issuance of the Notice to Proceed. “We are pleased to report that license cards will soon be available at all LTO offices. We will strive to ensure that the implementation of this project will run smoothly in order to reinstate these basic services provided by the LTO,” Transport Secretary Joseph Emilio Abaya said. The LTO may now coordinate with Allcard Plastics for the efficient deployment of the license cards to the various LTO offices nationwide.

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PNR resumes end-June By Macon Ramos-Araneta TWO months after shutting down due to an accident involving one of its trains, the Philippine National Railways will resume operations at the end of this month following Friday’s trial run of its commuter line from Tutuban Station in Manila to Sta. Rosa, Laguna. PNR officials, led by its general manager Joseph Allan Dilay, and Senator Cynthia A. Villar, chairperson of the Senate committee on government corporations and public enterprises, had the test run to check whether there are still problems. Dilay said they stopped their operations after a train in Magallanes station was derailed last April 29, injuring 80 train commuters. Villar had earlier called for the resumption of the train

operations with the start of classes in June, but this did not happen since repair works were not yet finished. Being also the principal sponsor of the law extending the corporate life of PNR to another 50 years, Villar said she has high hopes PNR will be able to fulfill its promise for an improved and safe service when the commuter line becomes fully operational. In joining the test run, Villar said she wanted to personally see for myself the

improvements made on the tracks and facilities to ensure the safety of the riding public. She noted the derailment and delayed resumption of PNR train operations raised safety concerns and she wants to be briefed on the actions taken to make sure derailment and similar accidents will not happen again. “We are one with the PNR in prioritizing the safety of about 70,000 commuters who ride the 60 trips that the train provides on a daily basis. Before the resumption of the trips, we have to have an assurance that passengers will be safe and that mechanisms are in place to ensure structural integrity of the tracks, bridges, and station facilities,” she said. Villar cited the PNR for availing the services of a

recognized train derailment expert to help them identify the cause of derailment and the need for repairs and improvement. She related that experts declared that the cause of the April 29 derailment are theft and vandalism of railway clips, angle bars, and railway bolts. She also urged PNR officials to ask the help of local government officials to secure the tracks. To avoid theft, she recommended the PNR management to seek the help of local government units. She said the Department of Transportation and Communication had allocated budget for the fencing of the railroad tracks to avoid being stolen. Furthermore, she said PNR trains should guarantee that passengers will be

REPUBLIC OF THE PHILIPPINES NATIONAL CAPITAL JUDICIAL REGION REGIONAL TRIAL COURT BRANCH 48, MANILA IN THE MATTER OF THE PETITION FOR RECOGNITION AND ACKNOWLEDGEMENT OF FOREIGN DIVORCE Civil Case No. 12-128103 VILMA B. CEJES-PRAMASURYA, Petitioner, -versusHON. REGISTRAR CIVIL REGISTRY OF MANILA AND THE OFFICE OF THE CIVIL REGISTRAR GENERAL, NATIONAL STATISTICS OFFICE (NSO) Respondents. x----------------------------------------------------x DECISION Petitioner Vilma B. Cejes-Pramasurya filed the instant case for Judicial Recognition of Foreign Divorce on June 14, 2012. Summons as well as a copy of the petition was served to the private respondent through publication in the Manila Standard Today, a newspaper of general circulation for two (2) consecutive weeks, with issues dated December 6 and 13, 2012 (EXHIBIT “K” AND “L”). The private respondent did not file any answer/responsive pleading. The petitioner is represented by her counsel Atty. Ramon I. Rana while the government is represented by Prosecutor Sharon A. Magayanes. Pre-Trial conference proceeded on June 26, 2013 and the following FACTS were stipulated: 1) The fact of marriage of the parties (Vilma Cejes Pramasurya and Kurniadi Pramasurya; 2) The physical existence of the marriage contract between petitioner ansd respondent. FACTS EVIDENCE FOR THE PETITIONER:

Chained and dispirited. This teenaged girl, shackled at the hands and feet, was found wandering outside a military encampment in Sulu. She was later turned over to social workers.

51 cinemas join Green Film Festival IN a bid to raise awareness on the state of the environment and encourage positive action towards preserving the eco-system, elementary and high school students will be treated to a series of film festivals featuring environmentally-themed movies and documentaries. Dubbed the Green Film Festival (GFF), the project aims to educate and make Filipinos aware to the plight of our earth today through a visual information campaign for eco-awareness. The screenings, which will be for free, will start in June 2015 in 51 cinemas in SM Supermalls and 6 Waltermart all over the country. The Green Film Festival is a project of SM Cares, a Division of

safe and that mechanisms are in place to ensure structural integrity of the tracks, bridges and station facilities. Meanwhile, Dilay said there will be no increase in the fare of PNR trains when it operates anew. Villar said this is commendable. She said compared to jeepneys and buses that charge P2 per kilometer, PNR provides the cheapest mode of transportation by charging only 71 centavos per kilometer. “It cannot be denied that the PNR train service has deteriorated through the years, but it remains to be the cheapest mode of transportation that our people in the lowestincome can afford. I believe PNR trains can still improve so it can serve more Filipinos in the different parts of the country,” Villar said.

SM Foundation and the CSR arm of SM Prime Holdings, Inc. in partnership with the Movie Television Review and Classification Board. Special screenings will also be held to reach out to the 1.9M out of school youth in the country. Films in the vernacular are preferred so that the school children will better understand the issues and the concerns facing the Philippines. Partner GMA 7 has agreed to provide the initial materials, two station-produced documentaries entitled “Ground Zero” and “Pagbangon” in the film festival. The Climate Change Commission has also contributed a 5-min info video on the Top 15 Ways to LEDS (Low Emission

Development Strategies). “Pagbangon” tells the story of how our countrymen recovered and rose from the devastation brought about by typhoon Yolanda, as documented by GMA &’s Jessica Soho, Jiggy Manicad and Micaela Papa. On the other hand, “Ground Zero” talks about the Philippines being located in the Pacific Ring of Fire, and identifies which cities and provinces are exposed to the natural hazards. The GFF is to be held every third Tuesday of the month, from 9:00 a.m. to 10:30 a.m., except for the months of March and December which will have special screenings dates on the first Tuesday of the month due

to the class schedules. MTRCB chairman Eugenio Villaruel said that the new partnership with SM Cares is part of their continuing thrust to help in fostering positive human values to the public especially the young people. He said as part of the partnership, MTRCB will be waiving the review fees for all the films and documentaries to be shown in the festival. Annie Garcia,President of SM Supermalls lauded the evergrowing partnership the retail giant has with the MTRCB. She noted the first partnership of SM with MTRCB with the first-ever and successful movie screenings for the deaf and blind last year.

Macon Ramos-Araneta

VILMA CEJES-PRAMASURYA testified: She executed a judicial affidavit (Exhibit “A”); She affirmed and confirmed the contents of her judicial affidavit; She identified their marriage contract-Pencatatan Sipil, Extract in English translation, Report of Marriage issued by the NSO, Birth of Certificate of Kurvi Cejes Pramasurya, Divorce Decree-Putusan and Translation of Judgement of Divorce (Exhibit “B”, “C” “D”, “E”, “F”, and “G”); The respondent is a physician in Indonesia; They decided to get divorce because they have many individual differences and they always quarrel up to the point of hurting each other; She filed the Divorce in Indonesia and it was granted; She is a college degree holder and works in networking business; She identified the Attestation issued by the Consular Section of the Embassy of the Philippines in Jakarta, Indonesia, Certification issued by the Local Civil Registry Office of Manila dated May 9, 2011, Authentication Certificate issued by the Department of Foreign Affairs Manila (Exhibit “H”, “I”, and “J”); She had the petition published in the Manila Standard Today (Exhibits “K”, “L” and “M”): She identified the letter dated 17 January 2013 addressed to the Indonesian Embassy in Makati City and copy of Law of Indonesia on Divorce and Marriage (Exhibit “N” and “O”). On cross, she testified: Her ex-husband is in Indonesia; Both of them decided to have their marriage divorced because five years prior to divorce they are already separated; They have their own differences; They obtained divorce in 2009; After their divorce, she returned in the Philippines to start a new life with her daughter; She has no plan of getting married in the future; Her ex-husband got married to a Chinese lady a year after their divorce; Her house helper in the Indonesia told her that her ex-husband now lives with his new family in a new house; Their house helper still lives in their old house in Indonesia to take care of their dogs; She has daughter who is living with her; She is a Filipino citizen; Her daughter has no communication with her ex-husband; Her ex-husband finished his medicine residency at UST and passed the board then returned to Indonesia to practice; Her ex-husband supports her daughter in the amount of P13,000.00/per month: Her daughter is now six years old; She works as a call center agent. MARY ANN CHICO testified; She had been working with the City Civil Registry in Manila as a Registration Officer III since 2001; Her duties and functions are 1) to represent the City Civil Registrar of the City of Manila in Judicial hearings and appearances on official time time and 2) to supervise the newly registered birth certificate; She received a subpoena regarding the instant case; She identified Certification issued by the Local Civil Registry Office of Manila dated May 9, 2011 and Authentication Certificate issued by the Department of Foreign Affairs Manila signed by Rosario Dionisio Francisco (Exhibit “I” and “J”); She is familiar with the signature of Rosario Dionisio Francisco. EMILITA L. CRUZ testified: She executed a judicial affidavit (Exhibit “P”); She identified her curriculum vitae (Exhibit “Q”); She translated the documents in Bahasa, Indonesia; She affirmed and confirmed the truthfulness of her translation. On cross, she testified; She teaches Bahasa Indonesian and Bahasa Malaysian language; She studied in Kuala Lumpur and Jakarta; She studied in Malaysia for two years and was granted a certificate. 1) 2)

ISSUE Whether or not the foreign decree granted between petitioner and Kurniadi Pramasurya may be recognized in the Philippines? Whether or not the custody of the minor child Kurvi can be awarded to the petitioner?

The court finds the following FACTS uncontrovert, viz; 1) The parties are husband and wife (Exhibits “B,” “C” and “D”); 2) The petitioner is a Filipino while the respondent is Indonesian; 3) The parties have a child (Exhibit”E”); 4) The parties did not acquire any conjugal properties; 5) The divorce decree was obtained by the parties in Indonesia (Exhibits “F” and “G”) 6) The petitioner is still a Filipino citizen. Under paragraph 2, Article 26 of the Family code: “Where a marriage between a Filipino citizen and a foreigner is validly celebrated and a divorce is thereafter validly obtained abroad by the alien spouse` capacitating him or her to remarry, the Filipino spouse shall have capacity to remarry under Philippine law,” In the instant case, petitioner Vilma B. Cejes-Pramasura and Kurniadi Pramasurya had entered into a valid contract of marriage on November 21, 1999 at the Indonesian Bethel Church, Bethany, Jakarta, Indonesia which is evidenced by their marriage certificate (Exhibit “B”). Thereafter, both parties obtained a divorce in Indonesia which was granted on November 25, 2009 as evidenced by Divorce Decree-Putusan and Translation of Judgement of Divorce (Exhibits “F”) and “G”). Since both the petitioner Vilma B. Cejes-Pramasura and Kurniadi Pramasurya had validly celebrated their marriage and thereafter a divorce was validly obtained abroad by the parties, the petitioner shall now have the capacity to remarry under the Philippine law as provided for by paragraph 2, Article 26 of the Family Code. The custody of the parties` minor child named Kurvi Cejes-Pramasurya, who is six (6) year old is hereby awarded to the petitioner for the reason that she can take care of her child in addtion to the fact that Kurniadi Pramasurya already has a new family of his own in Indonesia. WHEREFORE, the instant petition is GRANTED. This Court hereby recognizes the Divorce Decree obtained by the parties in Indonesia on November 25, 2009. The public respondents, the Hon. Registrar Civil Registry of Manila, Office of the Civil Registrar General, and National Statistic Office are also directed to accept for filing, recording and annotation of this judgement recognizing the petitioner`s foreign divorce obtained in Indonesia. Custody of the minor child Kurvi Cejes Pramasurya is hereby awarded to the petitioner subject to visitorial rights of Kurniadi Pramasurya. SO ORDERED. Manila, March 21, 2014 (TS JUNE 20, 2015)

SGD. SILVERIO Q. CASTILLO Judge

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Zambo schools need new teachers, chairs

P14-b Baguio-La Trinidad monorail project mulled By Dexter A. See LA TRINIDAD, Benguet June 19—The Cordillera office of the Department of Science and Technology (DOST-CAR) said that a total of P1.4 billion is required to get into operation an initial 5.2-kilometer monorail system from Baguio City going up to the Provincial Capitol within the next two years.

By A. Perez Rimando ZAMBOANGA CITY, Zamboanga Sibugay—An acute shortage of public elementary and secondary school chairs is this highly urbanized city’s most serious problem this school year even after thee local government constructed over 1,000 new classrooms last year. City Schools Division Superintendent Pedro Melchor Natividad said the new classrooms, built during the time of former mayor and now Rep. Celso Lobregat, were not provided with chairs and desks. Natividad said Lobregat had earlier appealed to Education Secretary Armin Luistro to provide the city-funded classrooms with necessary materials as the agency’s counterpart. “I have been following this up with the DepEd’s central office but to no avail,” Natividad lamented. He said, however, that incumbent Mayor Ma. Isabelle Climaco-Salazar recently reported that the city could utilize the Local School Board (LSB) last year’s savings of P14.7 million for the emergency purchase of chairs and desks to address the problem. Salazar said the LSB, where she sits as chairperson, already passed a resolution allocating the savings for the purchase of the needed desks, chairs and other classroom facilties. Meanwhile, some high schools with increased enrollment are requiring new students to bring to school their own chairs to prevent them from squatting on the cement floor during classes. At the same time, Natividad said that local learning centers are also severely lacking teachers even after the DepEd lately allotted only 243 teaching items to the city which actually needs 542 new mentors, thus a shortage of 299 tutors.

Holy task. Amuran Sarangani, 42, a janitor, sweeps the concrete floors of the Grand Mosque, also known as the Sultan Haji Hassanal Bolkiah Masjid, the country’s largest mosque in the Philippines, on the second day of the Ramadan in Cotabato City. The Ramadan requires Muslims to recite the Quran, pray and go into a monthlong fasting. MARk NAvAleS

Dr. Julius Caesar V. Sicat, DOST-CAR regional director, said the final feasibility study will first be presented to the local officials of Baguio and Benguet before the scheduled construction of the environmentally-friendly monorail that he said would help address the major traffic and air pollution woes of Baguio and La Trinidad. “We are optimistic that concerned local officials of Baguio and La Trinidad will endorse the project so that we will be able to proceed to the next stage of putting up the appropriate facilities taking into consideration issues on road-right-of-way among others,” Sicat said. He said that part of the preparatory works for the monorail project is the construction of the 5.2-kilometer rail from Slaughterhouse Compound up to the Provincial Capital and the assembly of the coaches for the monorail. Sicat added that initially, a total of six coaches, with each coach having a total capacity of 120 passengers, will be used to jumpstart the operation of the monorail in the city and the capital town which would contribute in lessening the congestion in most parts of the areas. Sicat said that the monorail project will be environmentally-friendly because it would use electricity to run the coaches instead of using fuel, thus, air pollution in the city and the capital town will be significantly lessened. Sometime in December 2013, Science and Technology Secretary Mario Montejo signed a memorandum of agreement with Baguio City Mayor Mauricio G. Domogan that gave way to a feasibility study on the proposed monorail in the city but Mayor Domogan requested the agency to include the neighboring municipalities of La Trinidad, Itogon, Sablan, Tuba and Tublay to be serviced by the monorail project. Sicat said the agency will coordinate with other government line agencies and concerned local governments once the project is put in place and the monorail will be ready by the start by next year.

Ifugaos told to preserve culture LAGAWE, Ifugao June 19— Senator Loren Legarda challenged the present generation of Ifugaos to continue leading the way in preserving and protecting their cultural heritage, as what their forefathers had done to the scenic stairwaylike terraces and the uniquelydesigned Ifugao houses, among others. Legarda issued the challenge during the 49th founding anniversary of the province, where she was the guest of honor and speaker. “Ifugao is a very special place for me because of the rich cultural heritage and abundant natural resources that this province is fortunately blessed with” Legarda said. She described the prov-

ince’s founding anniversary theme of “A celebration of cultural heritage as foundation of self-determination and sustainable development,” as timely as people look back at the stories of their forefathers and relive the traditions they lived by in the hope that their heritage would not only be written in the books but would be continuously practiced and preserved. Legarda said that |culture defines us as a people and our cultural heritage is an invaluable asset that must be nurtured as we work towards economic and social development.” “Looking back at the traditions of our ancestors, we realize how much they valued nature and culture, to be

one with the community and one with the earth. Fast forward to the modern present, we find that the old ways are the very foundation that will guide us through our way to progress. The traditions of the past will allow us to overcome many of the challenges that we face today,” she added. Legarda said that as a staple food, rice has been regarded as valuable crop by their forefathers who would perform rituals before, during, and after harvest. The Hudhud Chants of the Ifugao, in particular, is performed in four occasions, namely the harvesting and weeding of rice, during funeral wakes, and in bone-washing rituals. Dexter A. See

Ready for occupancy. Photo shows additional temporary shelters for Yolanda survivors in Northern Barangay in Tacloban City. Mel CASPe

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[ EDI TORI A L ]

Out Of the way IT DOeS not surprise us that some of our officials use the wrong solutions to respond to their woes. This week, in Congress, a House member badgered journalists into revealing their sources for their stories alleging that money changed hands in the release of a Chinese fugitive arrested here. Rep. elpidio Barzaga threatened to cite three of this newspaper’s reporters when they refused to name who it was who told them that Wang Bo paid P100 million to Immigration officials just so he would not be sent back to China, and that the money was used to pay off some members of the House into passing the Bangsamoro Basic Law. Instead of digging deeper into why Immigration officials chose to accept favors and why his colleagues in Congress sold their votes, as alleged, Barzaga’s recourse was to threaten the journalists who stood by their story, saying it was backed by evidence. Barzaga seems to think that if he succeeds to detain them for contempt, the issue will die a natural death and some other concern will take up the public’s attention as it always does. Meanwhile, we are left wondering if the President or his allies are that desperate to pass the BBL despite its constitutional infirmities and despite the fact that it is the product of consultations with only one group. Other groups living in Mindanao with supposedly equal stakes were not at all included in the discussions. And yet, Mr. Aquino is so determined that the measure pass, at whatever cost. He feels he almost has it, given the willingness of the House of Representatives to hand it to him with only a brief show of a fight. The only thing that stands in his way is the Senate, with the committee on local government deliberating on the bill and not at all inclined to give it a smooth ride. The solution? Occasion a revamp, of course. Mr. Aquino and his allies surely know how it is to get things done. Instead of addressing the questionable provisions of the law, talk is rife that the search is on for a more malleable member of the Upper House to steer his colleagues into passing the BBL there, as well. The normal course is to address problems squarely, and at their core. This administration’s is to get rid of them the easy way.

MaRCOs vs. aquINO ReDux BaCK ChaNNeL aLeJaNDRO DeL ROsaRIO THe report of a Malacanang maneuver to reorganize the Senate leadership to get Senator Ferdinand Marcos, Jr. out of the way of the proposed Bangsamoro Basic Law being railroaded by President Benigno Aquino III is becoming a redux of the Marcos-Aquino rivalry of the 70s.

Those of us old enough to remember know how that chapter in Philippine politics ended. Today, we are seeing a remake of that rivalry between the sons of the two arch foes. How this rivalry will play out remains to be seen. But this political drama unfolding between Noynoy, the only son of the late Senator Benigno Aquino, Jr., and Bongbong, the only son of President Ferdinand edralin Marcos has all the makings of an electrifying sequel.

It’s interesting to note a reversal of roles between Aquino and Marcos. It’s now the young Senator Marcos taking up the lead as opposition fiscalizer against the administration of President B.S.Aquino III. Ferdinand Marcos, Sr. wanted to regain Sabah from Malaysia by organizing and training a clandestine special force in Corregidor known as Operation Jabidah. Then-Senator Ninoy Aquino exposed it and the rest is history.

they are the sons of their fathers.

Now, Noynoy wants to give a large part of Mindanao with his creation of a Bangsamoro homeland, aside from shelving the Philippine claim to Sabah. As everyone knows, the Moro Islamic Liberation Front is a surrogate of Kuala Lumpur, the purported third-country broker between Manila and the MILF. Who’s the real patriot, and who’s the one guilty of treason? History, is once again the judge. DNA cannot be denied; the fathers’ genes have been passed on to the sons.

I actually was informed three weeks ago by a Senate insider of the impending Senate reorganization that would oust Senator Marcos as chairman of the committee on local government tasked with reviewing the BBL and cure it of all its legal infirmities. The agenda was to replace FMJ when Congress resumes sessions in July. I refrained from writing about it because it was too early to comment on a matter that has not been veri-

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fied. But now everything is falling into place. President Aquino must be seething with anger from not being able to include the BBL passage in time for his valedictory State of the Nation Address in July and crow about it as his legacy to the nation. Senator Marcos stands in his way for the BBL’s early passage in the Senate. The only way is to remove him. The House has been fixed but the Senate is something else. BS

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Aquino is getting resistance even from his own Liberal Party allies in the Senate who find the proposed measure in its present form and substance hard to accept. “I won’t be cowed. Removing me won’t remove the constitutional violations in the proposed BBL,”said Marcos, adding the people will resist any move to dismember the Republic with a flawed Muslim autonomous region. Continued on A11

MST Management, Inc. Philip G. Romualdez Arnold C. Liong Former Chief Justice Reynato S. Puno Jocelyn F. Domingo Ron Ryan S. Buguis

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NeOPHyTe senator Grace Poe overtakes vice-president Jejomar Binay as the top possible contender for the 2016 presidential elections, according to Pulse Asia’s May 2015 survey. For the first time, Binay slides to second place. First-off, let me say that I do not subscribe to the idea that survey results should be used by the electorate to decide on who to go for. Rather, candidates should be subjected to a “fitness test” based on specific qualifications we believe are necessary for a president to have. The president should be able to effectively lead government in addressing the many complex problems we are beset with. We need the one most fit for the job to win the elections. This person may or may not be the most popular based on surveys. “Winnability” as a factor in electing public servants not only limits our choices, it significantly affects how our country is managed, or mismanaged by the popular people we elect. We should have learned our lessons by now. These surveys are snapshots of people’s preferences and perspectives on possible candidates at a given time and place. At best, survey results can be used by those who aspire for government positions as guideposts on how best to improve their chances of winning elections. Surveys should be useful for potential candidates but should not be a major consideration of voters. This is the reason why I support the position that survey results should not be made public. Instead, these should be between the firms and those who commission them to do the surveys. Of course, this is not the case in our country. Survey results influence lots of election-related matters. “Investors”, or contributors to campaign kitties bet on the popular ones. After all, this is very much a business deal for them and they will put their monies on the “winnable” ones. Thus, woe to qualified, experienced, and well-intentioned people BUT without the millions needed to win elections! They will most probably drop out of the race. Popularity based on survey results very significantly determines the final list of candidates. even just on this aspect, Continued on A11

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[ EDI TORI A L ]

they are the sons of their fathers.

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SuSpicion of blackmail BACK BENCHER ROD P. KAPUNAN ThERE must be something that is pestering President Aquino in wanting the Senate to approve the sellout agreement called the Bangsamoro Basic Law. The public is equally getting curious, for maybe there is in that agreement something we do not know which reason why his appointed panel virtually collaborated with the Moro Islamic Liberation Front (MILF) to come out with a shoddy agreement. Looking at his conduct, one could draw an inference that the President appears to have been blackmailed either by the MILF or by its principal sponsor to accept the BBL in its original form. Never in our history had this happened where the President is running upstream against the overwhelming current. The ordinary men on the street, soldiers, the policemen, the government employees, and even the poll survey conducted by their

They are trying to mislead the public.

controlled survey outfit show that the people are against it. They are trying to mislead the public by their gambit that approving the BBL is to give peace a chance, ergo those against it are against peace, which is illogical because approving it does not guarantee peace. Such is strange, for no less than the President and his weaning political sycophants are the ones giving the house and the Senate the deadline to approve it. The conduct of the administration virtually has all the markings that the President and those giving him the cordon sanitaire appears to have been blackmailed. In their fear that something will happen, they too are trying to blackmail the legislature by threatening to withhold their pork barrel should they vote against the approval of the bill. Maybe it is a ploy to pass on the

responsibility so that in the end, B.S Aquino will be absolved of treason by pointing to his mindless lackeys as the ones who approved it. Even among Muslims, like the Tausugs, the Yakans, the Sambals, and the Badjaos are against it. They oppose it much that they do not want their ancestral homeland to be colonized by people from the Malay peninsula and to force them to renounce their loyalty to the Sultan of Sulu as their rightful leader and the legitimate owner of Sabah. There is more than that meets the eye behind the eagerness to reach an agreement with that band of terrorists that is being directed from without. The President has virtually put at stake it his position, and his legacy, if any, he hopes to bequeath to our people. Congress is already investigating the leak that bribe money paid by a Chinese drug lord identified a Bo Wang was used to compel some members of house Ad hoc Committee on the Bangsamoro Basic Law to pass the BBL for the plenary approval by the entire members of Congress. Some say, this pretendingto-be-honest administration simply reenacted what they did to impeach chief justice Renato Corona on the basis of the bribe offered and not on the trumped-up charges they filed against him. If such allegation is true, it would be pretty dangerous because at stake is not just the reputation of one unwanted President we can easily kick out, but the Republic of the Philippines where all will be forced to pay their share to preserve the territorial integrity of this nation. In fact, we are still smarting from that humiliating debacle where 44 members of our elite police force were practically butchered before our very own eyes, and the senator-chairwoman, plucked from obscurity in the US, who led the investigation of the heinous crime now refuses to submit her report finding PNoy as “ultimately responsible” for what happened. In the book written by John J. Mearsheimer, “The Tragedy of Great Power Politics,” he said, “Blackmail is a more attractive alternative (to war) because it relies on the threat of force, not the actual use of force, to produce results…Blackmail is difficult to achieve, however, because the great powers are likely to fight before they submit to threats from other great powers.” Analyzing what PNoy now is

EAGLE EYES DEAN TONY LA VIÑA

Turning poinT for The planeT

YESTERdAY was a big day for the Catholic Church, the environmental community, and I would say for the whole world. Years from now, the release of the “Encyclical Letter Laudato Si’ of the holy Father Francis on care for our common home” will be remembered as a turning point for the planet. For the next few weeks, I will write about the encyclical, its core messages, and its political, economic, and practical implications. On this first of what could be a ten-part series on a 284-page, 286-paragraphs (with 172 footnotes, many of which are interesting in themselves) long document, I will reflect on the purpose of this encyclical and attempt to provide a summary of its main message. Let me begin with for whom Laudato Si’ was written and what its purpose is. Traditionally, as Wikipedia describes it, an encyclical was a circular letter sent to all the churches of a particular area in the ancient Roman Church. The word comes from Latin encyclicus meaning “general” or “encircling”, which is also the origin of the word “encyclopedia”. More recently, however, encyclical have been issued by Popes to guide the Catholic faithful (for example Pope Blessed Paul VI’s humanae Vitae on contraception) and in some cases to address all men and women of good will (such as Saint John XXIII’s Pacem in Terris, on peace in the world). Laudato Si’ has both these purposes, with Pope Francis stating explicitly that the encyclical is now added to the body of the Catholic Church’s social teaching. In addition, Pope Francis follows Pope Saint John XIII who in Pacem in Terris, “more than 50 years ago, with the world teetering on the brink of nuclear crisis” issued an Encyclical addressed “to the entire ‘Catholic world’ and indeed ‘to all men and women of good will. According to Francis: “Now, faced as we are with global environmental deterioration, I wish to address every person living on this planet . . . In this Encyclical, I would like to enter into dialogue with all people about our common home.” In later paragraphs, Pope Francis expounds on what he means by this call to dialogue. “I urgently appeal, then, for a new dialogue about how we are shaping the future of our planet. We need a conversation which includes everyone, since the environmental challenge we are undergoing, and its human roots, concern and affect us all.” Personally, I have never read an encyclical that is written this way – so simple, in plain language, backed by solid natural and social sciences, and teaching with such clarity, authority, and inspiration. In addition, as one Jesuit commentator puts it, this is the first time that a papal encyclical is written in a gender-inclusive way and with footnotes that cite statements of Bishops’ conferences all over the world, including the 1988 pastoral letter on ecology of the Catholic Bishops Conference of the Philippines, and non-Catholic sources such as United Nations documents. The Pope also cites Patriarch Bartholomew and a Sufi poet in Laudato Si’. Laudato Si’ covers a range of topics – a dissection of environment and development challenges, identifying potential solutions and critiquing false remedies, and articulating a moral philosophy, theology, and spirituality of ecology. What is remarkable in Laudato Si’ is that every time the Pope had to choose between different options, he always decides in favor of the protection of the environment and justice for the poor. Laudato Si’ is incredibly consistent in that way. doing, it is indeed possible that he or his greedy cronies in the oligarchy have been blackmailed, and have succumbed to it. Mearsheimer is right that while states can resist blackmail by going to war, a leader who is blackmailed consequent to his lackluster decision and misjudgment of events cannot. Once that is proved, it would be equivalent to confirming that he committed treason much that he and he alone dealt with the group that is likely not to honor an agreement. The Armed Forces can ignore any possible blackmail, but not the leaders who committed themselves to selling this country. Our Armed Forces has always managed to maintain the upper hand in the fighting against the secessionist

rebels, and in that capacity, could contain the rebellion even in an all-out war. Even if they will declare a religious war or jihad, it is likely to fail because the majority of the Christians have never been blindly noosed to obey the dictates of the hypocritical clerics. In fact, it was the secessionist rebels that were forced to seek a peace agreement without the precondition of humiliating our Congress to approve their separatist demand. They were forced to come to the negotiating table with the Armed Forces, chivalrous enough to give them an honorable peace. On the contrary, it was they who scrapped the peace agreement signed in Jakarta in 1996 and ignored the various presi-

The best summary one can give of this papal encyclical is in the early paragraphs, when Pope Francis meditates on the example of St. Francis. These words will long be remembered: “I do not want to write this Encyclical without turning to that attractive and compelling figure, whose name I took as my guide and inspiration when I was elected Bishop of Rome. I believe that Saint Francis is the example par excellence of care for the vulnerable and of an integral ecology lived out joyfully and authentically. he is the patron saint of all who study and work in the area of ecology, and he is also much loved by non-Christians. he was particularly concerned for God’s creation and for the poor and outcast. he loved, and was deeply loved for his joy, his generous self-giving, his openheartedness. he was a mystic and a pilgrim who lived in simplicity and in wonderful harmony with God, with others, with nature and with himself. he shows us just how inseparable the bond is between concern for nature and justice for the poor, commitment to society, and interior peace. Francis helps us to see that an integral ecology calls for openness to categories that transcend the language of mathematics and biology, and take us to the heart of what it is to be human. Just as happens when we fall in love with someone, whenever he would gaze at the sun, the moon or the smallest of animals, he burst into song, drawing all other creatures into his praise. he communed with all creation, even preaching to the flowers, inviting them “to praise the Lord, just as if they were endowed with reason”. his response to the world around him was so much more than intellectual appreciation or economic calculus, for to him each and every creature was a sister united to him by bonds of affection. That is why he felt called to care for all that exists. his disciple Saint Bonaventure tells us that, “from a reflection on the primary source of all things, filled with even more abundant piety, he would call creatures, no matter how small, by the name of ‘brother’ or ‘sister’”. Such a conviction cannot be written off as naive romanticism, for it affects the choices which determine our behaviour. If we approach nature and the environment without this openness to awe and wonder, if we no longer speak the language of fraternity and beauty in our relationship with the world, our attitude will be that of masters, consumers, ruthless exploiters, unable to set limits on their immediate needs. By contrast, if we feel intimately united with all that exists, then sobriety and care will well up spontaneously. The poverty and austerity of Saint Francis were no mere veneer of asceticism, but something much more radical: a refusal to turn reality into an object simply to be used and controlled. What is more, Saint Francis, faithful to Scripture, invites us to see nature as a magnificent book in which God speaks to us and grants us a glimpse of his infinite beauty and goodness . . . For this reason, Francis asked that part of the friary garden always be left untouched, so that wild flowers and herbs could grow there, and those who saw them could raise their minds to God, the Creator of such beauty. Rather than a problem to be solved, the world is a joyful mystery to be contemplated with gladness and praise.” Email: Tonylavs@gmail.com Facebook: tlavina@yahoo. com Twitter: tonylavs dential decrees issued by President Marcos granting them autonomy, not to say the guarantee made in the 1987 Cory Aquino Constitution. They rejected them because their principal brokers led by Malaysia, the US, Japan and the Untied Kingdom told them it is not the kind of peace that would favor their economic and security interests. Their local minions headed by the country’s top maharajah – the Ayala family, also favor the sellout agreement because they too will benefit from it. In that, one could surmise that even if President Aquino would succeed in ramming into our throat the passage of the BBL to comply with the possible blackmail that threatens

to incinerate him now, that would not guarantee peace. Rather, it will repolarize the country with our President oddly fighting against the wishes of his own people. Either way, there will be no peace if Congress will not enact the BBL into law much that the MILF is committed to renew the fighting if the BBL is rejected, or assuming there will be peace should Congress approve it, but the people in Mindanao will never accept it without giving those affiliates of al Qaeda and al Nusra a good fight. They fought before and won, and it would be foolish for them now to give up their lands without a good fight. rpkapunan@gmail.com

S aT u R d aY : J u N e 2 0 , 2 0 1 5

OPINION

adelle chua EDITOR

lettertotheeditor@thestandard.com.ph

HAIL TO THE CHAIR VICTOR AVECILLA PhiliPPine national Police (PnP) four-star police general Alan Purisima has already served his suspension in connection with a plunder case involving a controversial gun license contract with a private courier service provider. Despite having done so, Purisima has gone on leave. he is due to retire in november this year, when he reaches the mandatory retirement age of 56. it will be recalled that Purisima resigned his post as PnP chief in the aftermath of the Mamasapano massacre last January. he only resigned as PnP chief; he did not resign as an officer of the PnP. The current officer-in-charge of the PnP is Deputy Director General leonardo espina. President Benigno Aquino iii has not appointed a regular PnP chief to succeed Purisima, who is his close friend. Although Purisima is no longer the PnP chief, he still outranks espina. it is doubtful if espina can give any assignment, no matter how innocuous, to his superior officer. Responding to criticism from Senator Ferdinand Marcos, Jr., Malacañang admitted that Purisima no longer has any role in the police force. if this is so, then why is Purisima still connected with the PnP? As correctly suggested by exSenator and former PnP chief Panfilo lacson, Purisima should take the initiative and apply for early retirement. he should not wait for his good friend, President Aquino, to order him to do so. The news media recently reported that the Organization for economic Cooperation and Development (OeCD) has urged Congress to repeal the secre-

Candidate..From A9 voters’ choices have already been limited. We have already been “manipulated”. This is part of “realpolitik” in this country. The May Pulse Asia survey results tell us that two of the most probable candidates are Poe and Binay. i will not analyze said results as this is already done by several political observers. Rather, i will focus on what i think should be done by the two top contenders so the electorate can make a better judgment come election time and not just rely on popularity or winnability. i have written about Sen. Grace Poe’s “magic” and i think the survey results indicate that it is there. While she has yet to make, or announce the big decision, let us consider her as a shoo-in candidate. So far, her handlers are doing a good job in terms of making her more popular, helped by, if i may add, the blunders committed by Binay’s group in attacking the senator. Poe herself is showing her potential. She is able to turn “personal” issues hurled at her into socio-political ones. notice how she made her being a foundling into one of “foundling children should be cared for and not marginalized by society” issue? The same thing happened with the Binay snide about electing

A11

PURISIMA SHOULD RETIRE NOW; LEAVE SECRECY OF BANK DEPOSITS LAW ALONE cy in bank deposits law, supposedly to strengthen the country’s tax system, and to fight tax evasion, tax fraud, and money laundering. A certain Richard Parry of the OeCD made the recommendation in a two-day workshop held in Bataan about a week ago. Parry’s recommendation serves no practical purpose for Filipinos and the Philippine government, and will only needlessly reduce the already limited protection currently afforded by Philippine banking laws to depositors. Taxpayers who earn fixed incomes are subjected to the withholding tax system. Under this system, the government not only collects the correct taxes; it collects the taxes months before they are even due. For example, income tax for 2015 which is supposed to be paid in April 2016 is now partially collected every month of 2015. Under this system, the taxpayer does not even get to see the tax money withheld from him. The problem of money laundering is already addressed by Republic Act no. 9160, otherwise known as the Anti-Money laundering Act. This law requires banks to violate their fiduciary relationship with their depositors by obliging them to report to the Anti-Money laundering Council (AMlC) any and all suspicious transactions. The anomaly in the law is that it requires banking institutions to perform a investigative function which government investigators should be doing in the first place. Vice President Jejomar Binay is the latest political celebrity whose bank accounts attracted the attention of the AMlC.

someone capable. Poe skillfully spun this into a question of integrity beyond capacity. She has completely put the Binay camp to the defensive. So far, Grace Poe shows compassion, strength, and power. Poe should now move on to crucial issues and significantly leave questions on residency and citizenship to her team and lawyers. As a voter, i would want to know more. i need her to articulate her position on crucial socio-political issues. Among other things, i am interested on her take on poverty reduction strategies; the existing “labor export policy” and local job creation; divorce and how prowomen programs based on our laws can be strengthened; addressing corruption; traffic and solutions to the messy transport system; energy and power generation; disaster preparedness and management; resolving the Moro issue; and, China’s encroachment in our territories. in short, we should be made aware of Poe’s platform of government and goals. A master plan for achieving these goals within the six year presidential term of office is necessary. People might say this is a tall order, and it is. however, Poe can become a game changer in terms of how presidential campaigns are conducted if she does this.

To curb graft and corruption, the anti-graft law requires all government employees to authorize the Office of the Ombudsman to look into their bank accounts to ascertain if their lifestyle is justified by their income. employees in the private sector are not subjected to that requirement because private persons, as a rule, do not engage in graft and corrupt practices, unless they are in cahoots with corrupt government officials. Perhaps the problem lies in taxpayers who do not have fixed incomes. They are often suspected of padding their expenses to reduce their taxable income. That is, of course, tax evasion plain and simple. This problem, however, can be addressed by increase diligence on the part of accounting agents of the Bureau of internal Revenue. Quite frankly, the solution to these problems cannot be had from repealing the secrecy in bank deposits law. Traditionally, Filipinos recognize a reasonable expectation of privacy in how much money they have in the bank. Other than collect withholding taxes from savings accounts, the government is not expected to find out how much a certain individual has in terms of savings. The secrecy in bank deposits law has been around for decades, and it is working smoothly. Repealing it will have dire consequences for the banking industry. Since the current interest rates on savings accounts are miserably low (around 1 to 2 percent annually), depositors will realize that maintaining a savings account open to government scrutiny is a senseless pursuit. People will opt to keep their money

Focus on substance rather than personalities, solutions rather than propaganda. This will help better educate our voters. This can be the start of new politics. Something like this has never been done. The closest i know was during the campaign of now President Benigno Simeon Aquino iii with his Covenant with the Filipino People. This contained his platform of government. BUT, there was no specific goals and plans that could have been achieved within his term. A set of goals and timebound plan are important because no one president can solve all our problems but if a strategic direction is set and specific goals achieved, we may successfully advance as a country. Poe is the youngest of all possible presidential candidates and she may be the most open to pursue out of the box strategies and approaches. if she chooses to, she can be the way to veer away from personality-based, traditional politics. Certainly, “candidate” Poe should be watched. next week: “Candidate” Binay bethangsioco@gmail.com @bethangsioco on Twitter Elizabeth Angsioco on FaceBook

at home, or put it in a cooperative, or buy negotiable securities endorsed in blank. Those with large savings will just rent a safety deposit box and keep their money secure, albeit without interest, but away from government eyes. in fine, the people will lose faith in the banking system. When that happens, there will be a large-scale reduction in bank deposits, which means less money for banks to lend out. less money to lend will force banks to increase interest rates on loans. Small and medium-scale enterprises will find it difficult to stay in business, and will eventually close shop. Unemployment becomes inevitable, and its illegitimate cousins – crime and juvenile delinquency – will plague society. Government will have to spend more public money on crime prevention and social welfare. in the end, more taxes will be imposed on the people. A government is supposed to work for the interests of its people. When government is both inefficient and corrupt, and it imposes more and more needless taxes, that government encourages rebellion. Remember, the American Revolution was fought not primarily for freedom and self-government, but mainly because of oppressive taxation by the British colonizers. The OeCD and its officials should rethink their suggestion about repealing the secrecy in bank deposits law. if a particular system works efficiently, and has worked without any glitch for the past several decades, it should be allowed to remain. As the saying goes, if the device isn’t broken, it need not be repaired.

Marcos..From A9 if he finally decides to run for President, Senator Marcos might have just found his voters’ niche—all the millions of Filipinos who oppose the country’s disintegration being unwittingly caused by Aquino. ‘Killing the messenger’ The effrontery of Cavite Rep. elpidio Barzaga threatening to cite Standard reporter Christine herrera for contempt for refusing to reveal the source of her bribery story about Chinese fugitive Wang Bo coughing up money to avoid deportation is a case of killing the messenger with the bad news. The metaphoric phrase dates back to olden times when kings had messengers beheaded for bearing bad news from the war front. Ms. herrera apparently stepped on some big toes when she wrote that P100 million was allegedly extorted by immigration officials from the Chinese crime boss to prevent his deportation to China where he’s wanted by the authorities there. herrera’s reportage would have been just another story of Bureau of immigration detainees being set free for a fee. But the story became big because she linked, without identifying, some congressmen who allegedly received bribe from Bo for their 2016 election campaign and to speed up the proposed Bangsamoro Basic law being pushed by the Palace . Given previous incidents involving Bi officials, the Standard story can only be seen as credible .The

Bi about two or three years ago allowed three suspected indian drug dealers to leave the country after their arrest. it was known as the case of the “Three little indians”; the detainees were released by immigration agents under suspicious circumstances. Justice Secretary leila de lima was quick to dismiss the Standard story as “kuwentong kutsero” or B.S. Considering however that officials and agents of the Bureau of immigration , national Bureau of investigation and the Bureau of Corrections (three government agencies directly under De lima’s Department of Justice) have been previously involved in illegal activities, it’s hard not to believe the bribery allegation. At the Bucor, as De lima herself discovered, prison officials were allowing inmates to smuggle in cell phones, weapons and the manufacture of shabu right inside the Muntinlupa penitentiary. Wang Bo denied he gave bribes to the Bi officials. Brought to the house hearing in handcuffs after his lawyer, Dennis Manalo, reported his client missing for two days, one can only speculate why Wang Bo cleared the Bi. erratum: in my column last Wednesday, i referred to the hungarian currency as zlotys, instead of forints. Zlotys is the currency of Poland where i was posted after hungary. My apologies for the lapse which must have been a case of being lost in transit between two cities.

Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE SUPPLEMENT TO THE ENERGY SUPPLY AGREEMENT BETWEEN ZAMBOANGA CITY ELECTRIC COOPERATIVE, INC. (ZAMCELCO) AND THERMA MARINE, INC. (TMI), WITH MOTION FOR PROVISIONAL AUTHORITY AND MOTION FOR CONFIDENTIAL TREATMENT OF INFORMATION

FOM

PhP/kW/mo

239

314

PhP/kWh

0.14864

0.15245

HFCR

L/kWh

0.23580

LOCR

L/kWh

0.00240

9.1

The formula for FC in item 2 (Contract Energy Fee per month) of Schedule III (Contract Energy Fee) of the ESA shall be deemed amended to read as follows:1

f. g. h. i. j. k. l.

Where:

ERC CASE NO. 2015-071 RC ZAMBOANGA CITY ELECTRIC COOPERATIVE, INC. (ZAMCELCO) AND THERMA MARINE, INC. (TMI), Applicants.

INSy

actual insurance cost for the two barges for the current year

INS1

PhP43,035,782.00 for the two barges, representing insurance cost included in the FOM

Total BC

Total Billing Capacity for the two barges under the existing energy supply agreements and existing ancillary service procurement agreements

x- - - - - - - - - - - - - - - - - - - - - - - - - - - x

NOTICE OF PUBLIC HEARING

TO ALL INTERESTED PARTIES: Notice is hereby given that on April 15, 2015, Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) and Therma Marine, Inc. (TMI) filed a joint application for the approval of their Supplement to the Energy Supply Agreement, with motion for provisional authority and motion for confidential treatment of information.

9.2

19. In further compliance with the requirements of the Commission, they considered several scenarios and derived a Rate Impact Simulation based on the said scenarios, which is attached to the joint application as Annex “U” and may be summarized as follows:

Hence, the formula for Contract Energy Fee per Month as provided in the ESA shall be:2

In the said joint application, ZAMCELCO and TMI alleged, among others, the following: 1.

ZAMCELCO is a non-stock, non-profit electric cooperative, organized and existing under and by virtue of Presidential Decree No. 269, as amended, with principal address at MCLL Highway, Putik, Zamboanga City. It holds an exclusive franchise issued by the National Electrification Commission to operate an electric light and power distribution service in Zamboanga City(Franchise Area);

2.1

2.2

TMI owns and operates the 100 MW Power Barge No. 117 (PB 117) in Nasipit, Agusan Del Norte and the 100 MW Power Barge No. 118 (PB 118) in Maco, Compostela Valley, which it acquired from the Power Sector Assets and Liabilities Management Corporation (PSALM) upon their privatization in accordance with Republic Act No. 9136, otherwise known as the “Electric Power Industry Reform Act of 2001 (EPIRA); and

CEF EF

= =

FC VC CF

= = =

FOM IFf BC INS

= = = =

TMI is joining ZAMCELCO as co-applicant in this case in order to assist it in securing approval of the terms and conditions of the Energy Supply Agreement dated January 12, 2012 (ESA),as amended by the Supplement to the Energy Supply Agreement dated March 27, 2015 (Supplement Agreement), entered into by and between ZAMCELCO and TMI;

The instant joint application seeks approval by the Commission of the ESA, as amended by the Supplement Agreement, entered into by and between ZAMCELCO and TMI, pursuant to Rule 20 (B) of the Commission’s Rules of Practice and Procedure (ERC Rules).

INSy

INS1

IFv TotalBC

= =

FLR

EDm

STATEMENT OF FACTS ZAMCELCO currently sources its electricity requirements from the Power Sector Assets and Liabilities Management Corporation (PSALM), Mapalad Power Corporation (MPC), and TMI. 4.1

On January 12, 2012, ZAMCELCO entered into an ESA with TMI for the supply of 18MW for a term of three (3) years from Effective Date of April 20,2012 to April 19, 2015 (Original Term). The ESA was approved by the Commission in a Decision dated 26 November 2012 in ERC Case No. 2012039RC, with the following applicable rates:

Cost Component 2012

278

2013

296

2014

323

2015

305

Fixed O&M Fee (PhP/kW/month)

Pass thru cost based on fuel consumption rates of 0.2358 liter/kWh or actual, whichever is lower, for Heavy Fuel Oil (HFO) and 0.00242 liter/kWh or actual, whichever is lower, for Lube Oil (LO)

Details of ZAMCELCO’s other supply contracts are as follows:

CONTRACT CAPACITY

DATE OF EXECUTION OF SUPPLY CONTRACT

TERM

PSALM

49 MW

December 2012

3 years

18 MW

May 2013

ERC APPROVAL

Provisional Authority in ERC Case No. 2013-050 RC

3 years

It is expected that the energy requirements of ZAMCELCO’s customers will significantly increase in the next few years as demonstrated by ZAMCELCO’s Distribution Development Plan (“DDP”), which is hereto attached as Annex “G”;

The expiration of the Contract for the Supply of Electric Energy with PSALM in 2015, as well as the projected increase in the energy requirements of ZAMCELCO’s customers will result in a shortage of the energy available to it and its customers;

On March 27, 2015, ZAMCELCO and TMI executed the Supplement Agreement extending the term of the ESA for an additional period of three (3) years from the expiration of the term (Additional Term) and stipulating the rights and obligations of the Parties during the Additional Term, which shall be under the same terms and conditions of the ESA, subject to the following:

SALIENT PROVISIONS OF THE ESA AS SUPPLEMENTED BY THE SUPPLEMENT AGREEMENT 8.

Additional Term. The Supplement to the ESA provides that the ESA shall remain in force for an additional period of three (3) years from the expiration of the Original Term, commencing on April 20, 2015 and shall terminate on April 20 , 2018 unless either Party sends a written notice of pre-termination to the other Party at least sixty (60) days prior to the end of each contract year. The Supplement to the ESA further provides that, in the event ZAMCELCO enters into an energy supply agreement with Therma South, Inc. (TSI) for the supply of power from the latter’s coal-fired power plant, the ESA may be terminated effective on the Effective Operations Date defined in said energy supply agreement. If the Operations Effective Date of the power plant of TSI has not yet occurred by the end of the Additional Term, the ESA shall be automatically renewed on a year-to-year basis, unless earlier terminated in accordance with the provisions of the ESA. Upon expiration of the Additional Term, and any extension thereof, the Parties may agree to further extend the term of the ESA under the same terms and conditions of the ESA, as amended by the Supplement Agreement; Electricity Fees. Beginning on the expiration of the Original Term, the Electricity Fees shall be computed based on the following values:

PhP/kW/mo

2013

2014

2015

2016

2017

2018

296

323

305

287

268

250

2015

6.3439

5.0650

(1.2789)

2016

6.3041

5.0463

(1.2578)

2017

6.4386

4.6889

(1.7497)

2018

6.3522

5.2185

(1.1337)

The non-delivery days (or fraction thereof) in any Billing Period caused by Allowed Downtime described under Section 8 of the ESA.

11. Contract Energy. Under the ESA, TMI shall make available, on a monthly basis, the capacity of 18MW, to be delivered in accordance with the Schedule of Contract of Energy under the ESA;

16. Application Costs. The Supplement Agreement provides that ZAMCELCO shall bear the costs of all filing fees, costs of publication, legal fees and similar costs arising from the preparation and filing of the instant application; 17. The extension of the Contract Term under the Supplement Agreement and the implementation thereof will redound to the benefit of ZAMCELCO’s consumers which may otherwise be forced to bear the cost of 18MW purchased from the Interim Mindanao Electricity Market (IMEM) or to suffer a corresponding amount of brownouts. In undertaking the extension of the ESA under the Supplement to the ESA, ZAMCELCO seeks to comply with its obligation of providing stable and continuous power supply, pursuant to the Department Circular No. DC 2012-03-004 dated March 19, 2012 of the Department of Energy (DOE); SUBMISSIONS 18. In support of the instant application and in compliance with Rule 20 (B) of the ERC Rules of Practice and Procedure, it submits the following additional documents: a. b.

Board of Investments (BOI) Certificate of Registration of TMI (Annex “H” of the joint application); Environmental Compliance Certificate (ECC) issued by the

Continuing Demand Growth. As illustrated in its DDP, ZAMCELCO is expecting a growth in the total demand of its end-users so that, coupled with reduction of the NPC/PSALM capacity, there is a wide supply gap that urgently needs to be filled. Without the Supplement Agreement, ZAMCELCO will be incapable of satisfying the electricity requirements of its endusers who must be forced to suffer brownouts resulting from its curtailment;

25. They pray that the Commission:

10. Billing Capacity. In the event that TMI is required to reduce its installed capacity in order to remain compliant with Section 45 of the EPIRA, TMI shall have the right to reduce the Billing Capacity of ZAMCELCO to the extent of the reduction required under Section 45 of the EPIRA, provided that, the reduction in the Billing Capacity of ZAMCELCO shall not exceed its pro rata share in the total Billing Capacity of TMI in relation with other offtakers of TMI;4

15. Security Deposit. No later than thirty (30) days before the commencement of the second (2nd) Contract Year and every year thereafter, ZAMCELCO shall provide TMI a Renewal Security Deposit in the form of a Standby Letter of Credit in an amount equivalent to the estimated average one (1) month Invoice projected for the next twelve (12) months as agreed by TMI and ZAMCELCO or, in case of disagreement, in an amount equal to the highest Invoice issued by TMI to ZAMCELCO in the twelve (12) months immediately preceding the commencement of such Contract Year;5

Insufficiency of NPC/PSALM Supply. The reduction of the NPC/PSALM CSEE capacity from ZAMCELCO’s portfolio renders imperative a bilateral supply contract to answer for the equivalent capacity, lest ZAMCELCO be compelled to resort to the unpredictable and expectedly higher prices in the IMEM or worse, be curtailed for insufficient contracted capacity; and

24. They submitted one (1) copy of Annexes“M”, “N”, “O”,“P” and “Q”in a sealed envelope, with the envelope and each page of the document stamped with the word “Confidential”; and

JCPIb = Japan CPI of 99.9 as of June 2011

14. Replacement Energy. TMI has the option but not the obligation to source replacement or alternative supply from its own back-up facility and/or any third party to supply all or part of the Contract Energy;

23. Under Rule 4 of the ERC Rules, the Commission may, upon request of a party and determination of the existence of conditions which would warrant such remedy, treat certain information submitted to it as confidential. Pursuant to its undertaking, ZAMCELCO and TMI move that Annexes“M”, “N”, “O”, “P”, and “Q” not be disclosed and be treated as confidential documents in accordance with Rule 4 of the ERC Rules and accordingly, not be disclosed to persons other than the officers and staff of the Commission, as necessary. These documents contain certain non-public information, data and calculations involving business operations and financial trade secrets reflecting TMI’s investment and business calculations;

ECPIb = EURO CPI of 113.10 as of June 2011

13. Load Curtailment Adjustment.For Contract Energy subject of load curtailment, ZAMCELCO shall pay the Load Curtailment Adjustment in lieu of the Capacity Fee component of the Contract Energy Fee. The same formula for the Load Curtailment Adjustment Rate under the ESA shall continue to be in effect;

Mindanao Power Crisis. The power shortage in Mindanao has remained a critical problem for ZAMCELCO which continues to suffer rotating brownouts in the grid. A bilateral agreement, such as the Supplement Agreement, will significantly aid ZAMCELCO in minimizing or even eliminating the rotating brownouts in its franchise area which has had a debilitating impact upon the local economy;

22. Under Section 13 of the ESA, each Party undertook to keep in strict confidence and not to disclose to any third party any and all Confidential Information of the other Party;

Finally, the base indices in Item 3 (Inflation Factor) of Schedule III (Contract Energy Fee) of the ESA shall be deemed amended to read as follows:3

12. Additional Energy. TMI may, at its option, make available to ZAMCELCO such energy in excess of the contracted energy for which ZAMCELCO shall be liable to pay the Additional Energy Fee consisting of variable and fixed charges pro-rated for the hours of delivery of the additional energy, subject to annual adjustments. The same formula for the Additional Energy Fee Rate under the ESA shall continue to be in effect;

21. Considering the foregoing, they request the Commission for the provisional approval of the ESA, as amended by the Supplement Agreement to enable ZAMCELCO to draw under the said agreement. This will avoid the power interruptions which have caused irreversible losses upon economic productivity within its franchise area. The Affidavit in support of the prayer for the issuance of Provisional Authority is attached to the joint application as Annex “V”;

UCPIb = US CPI of 225.722 as of June 2011

Fuel and Lube Oil Rate

MPC

The Contract Energy Delivery days in a Billing Period are less the total number of days in the Billing Period (to adjust to first and last Billing Periods of the ESA); and

239

SUPPLIER

Inflation factor for Energy Fee Total Billing Capacity for all Energy Supply Agreements entered into by Supplier which have achieved effectivity date and for the duration of such effectivity, as such terms and conditions are defined under the respective Energy Supply Agreements Fuel oil, lube oil and related fuel rate in Php/ kWh The Sum of the hourly volumes of Contract Energy as found in the Contract Energy Schedule (or as revised by the Parties or by MSO/MSO RCC) for the Billing Period primarily associated with calendar month m (for example December 26-January 25 is associated with January) (and adjusted for transmission losses, if any, imputed by the transmission service provider if measured at a meter other than the Generator Metering Point), in kWh

PCPIb = Philippine CPI of 126.4 as of June 2011

0.14864

4.2

actual insurance cost for the two barges for the current year PhP43,035,782.00 for the two barges, representing insurance cost included in the FOM

9.3

Energy Fee (PhP/kWh)

Increase/ (Decrease) PhP/kWh

20. They move for the issuance of a provisional approval of the ESA, as amended by the Supplement Agreement, pending trial on the merits thereof, upon the following reasons:

Contract Energy Fee in Php Energy Fee (before adding the applicable VAT) for the Billing Period in Php/kWh Fixed charge per month in Pesos Variable charge per month in Pesos the Capacity fee in Php/kW/month for the current Contract Year Fixed O&M fee in Php/kW/month Inflation factor for fixed O&M fee Billing Capacity in kW or 18,000kW INSy‒ INS1

The Fixed Charge (“FC”) shall be proportionately adjusted if:

Approved Rates

Capacity Fee (PhP/kW/month)

Scenario with TMI PhP/kWh

MOTIONS FOR PROVISIONAL AUTHORITY AND CONFIDENTIAL TREATMENT OF INFORMATION

Where:

Copies of the ESA and the Supplement Agreement are attached to the joint application as Annexes “E” and “F”, respectively;

Scenario without TMI* PhP/kWh

Where:

NATURE OF THE APPLICATION 3.

Year

*The calculation assumes that the deficit will be augmented through modular gensets.

For calendar month m = 1, 2, ..., 12

TMI is a generation company duly organized and existing under the laws of the Republic of the Philippines with principal office address in Mobile 2, Lawis, Sta. Ana, Nasipit, Agusan del Norte. Copies of TMI’s Securities and Exchange Commission Certificate of Registration, Articles of Incorporation and By-Laws, General Information Sheet and Audited Financial Statements are attached to the joint application as Annexes “A”, “B”, “C” and “D,” respectively;

Department of Environment and Natural Resources (DENR) to TMI (Annex “I” of the joint application); Certification by the National Grid Corporation of the Philippines (NGCP) (Annex “J” of the joint application); Certificate of Compliance (COC) issued by the Energy Regulatory Commission (ERC) to TMI (Annex “K” of the joint application); Relevant Technical and Economic Characteristics of TMI’s Power Barges (Annex “L” of the joint application); Sources of Funds/Financial Plans (Annex “M” of the joint application); Purchased Power Rate (Annex “N” of the joint application); Cash Flow (Annex “O” of the joint application); Financial Model (Annex “P”); Fuel Procurement Process of TMI (Annex “Q” of the joint application); Transmission Service Agreement (TSA) between ZAMCELCO and NGCP (Annex “R” of the joint application); Certification from the PSALM of the insufficiency of its supply to meet ZAMCELCO’s requirements (Annex “S”of the joint application); and Procurement Process of ZAMCELCO (Annex “T” of the joint application);

Issue an Order treating Annexes “M”, “N”, “O”, “P” and “Q” and the information contained therein as confidential, directing their non-disclosure to persons other than the officers and staff of the Commission, pursuant to Rule 4 of the ERC Rules, and prescribing the guidelines for the protection thereof;

Pending trial on the merits, provisionally approve the ESA, as supplemented by the Supplement Agreement, effective April 20, 2015; and

After trial on the merits, approve with finality the ESA, as supplemented by the Supplement Agreement, including the rates, Security Deposit and Application Costs which shall be for the account of ZAMCELCO.

The Commission has set the said application for jurisdictional hearing, pre-trial conference, expository presentation and evidentiary hearing on July 8, 2015 (Wednesday) at nine o’ clock in the morning (9:00 A.M.) at the ERC Mindanao Field Office, Mintrade Building, Monteverde Avenue corner Sales St., Davao City (in view of the current peace and order situation in Mindanao). All persons who have an interest in the subject matter of the proceeding may become a party by filing, at least five (5) days prior to the initial hearing and subject to the requirements in the ERC’s Rules of Practice and Procedure, a verified petition with the Commission giving the docket number and title of the proceeding and stating: (1) the petitioner’s name and address; (2) the nature of petitioner’s interest in the subject matter of the proceeding, and the way and manner in which such interest is affected by the issues involved in the proceeding; and (3) a statement of the relief desired. All other persons who may want their views known to the Commission with respect to the subject matter of the proceeding may file their opposition to the application or comment thereon at any stage of the proceeding before the applicants conclude the presentation of their evidence. No particular form of opposition or comment is required, but the document, letter or writing should contain the name and address of such person and a concise statement of the opposition or comment and the grounds relied upon. All such persons who may wish to have a copy of the application may request the applicants, prior to the date of the initial hearing, that they be furnished with a copy of the application. The applicants are hereby directed to furnish all those making a request with copies of the application and its attachments, subject to reimbursement of reasonable photocopying costs. Likewise, any such person may examine the application and other pertinent records filed with the Commission during the usual office hours. WITNESS, the Honorable Chairperson, ZENAIDA G. CRUZ-DUCUT, and the Honorable Commissioners, ALFREDO J. NON, GLORIA VICTORIA C. YAP-TARUC, JOSEFINA PATRICIA A. MAGPALE-ASIRIT, and GERONIMO D. STA. ANA, Energy Regulatory Commission, this 10 th day of June, 2015 at Pasig City.

ATTY. FRANCIS SATURNINO C. JUAN Executive Director III 1 2 3 4 5

Supplement Agreement, Section 2.1 ESA, Schedule III, Item 2, as amended by the Section 2 of the Supplement Agreement. Supplement Agreement, Section 2.3. Supplement Agreement, Clause 2.9 ESA, Clause 6.1.2, as amended by Section 2.4 of the Supplemental Agreement.

(TS-JUNE 20 & 27, 2015)

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sports sports@thestandard.com.ph

A-Rod a hit away from 3,000 NEW YORK—Controversial New York Yankees slugger Alex Rodriguez singled twice on Thursday to move within one hit of becoming the 29th player in Major League Baseball to record 3,000 hits. Rodriguez, who returned this season after serving a 162-game suspension for doping violations linked to the Biogenesis steroid distribution scandal, has been methodically ticking off milestones. He passed iconic Willie Mays for fourth place on Major League Baseball’s all-time home run list and has also become the American League’s all-time leader in runs-batted in. In Thursday’s 9-4 win over the Miami Marlins, Rodriguez notched an RBI single in the first inning and another in the fifth to take his career hits tally to 2,999. He had two more chances to reach 3,000 but lined out hard to right field in the sixth inning and walked on four pitches, all inside, in the eighth. The walk by Marlins pitcher Sam Dyson provoked jeers from 38,239 fans, who stood and cheered during Rod-

Murray advances; Grigor fumbles LON DON—A ndy Murray moved a step closer to a recordequalling fourth Queen’s Club title as the top seed defeated Fernando Verdasco 7-5, 6-4, while Grigor Dimitrov joined the lengthy list of star casualties. While defending champion Dimitrov was beaten 6-4, 7-6 (7/5) by Gilles Muller in the second round on Thursday, Murray avoided becoming the latest big name to fall with a second successive straight-sets win at the Wimbledon warmup event. Dimitrov’s lacklustre exit against the world number 48 from Luxembourg came hot on the heels of Rafael Nadal’s shock loss to Ukrainian journeyman Alexandr Dolgopolov and French Open champion Stan Wawrinka’s defeat against Kevin Anderson. Murray had been due to face Dimitrov in the quarter-finals on Friday, so the series of upsets leaves the world number three, who now boasts an impressive 22-5 career record at Queen’s, as the strong favourite to win the title ahead of his meeting with the unheralded Muller. The 28-year-old last triumphed at Queen’s in 2013 and if he lifts the giant silver trophy on Sunday he will join Boris Becker, John McEnroe, Andy Roddick and Lleyton Hewitt as the joint record winner of the tournament. AFP

riguez’s final two at-bats. He’ll have another chance to reach 3,000 on Friday when the Yankees continue an eight-game homestand with the first of three games against Detroit. Since his return, Rodriguez has been gradually winning over Yankees fans, but he remains a controversial figure. He and the Yankees remain at odds over a $6 million bonus payment that Rodriguez believes he is owed for tying Mays on the home run list. The Yankees have suggested that he shouldn’t get the bonus because his drug-tainted past means the achievement isn’t marketable, although both parties have reportedly agreed to set aside that dispute for the time being— with Major League Baseball agreeing to waive a 45-day deadline for Rodriguez to file a grievance. AFP

Alex Rodriguez of the New York Yankees follows through on a first inning RBI base hit against the Miami Marlins at Yankee Stadium in the Bronx borough of New York City. AFP

Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR APPROVAL OF FORCE MAJEURE (FM) EVENT REGULATED FM PASS THROUGH FOR TYPHOON AGATON IN MINDANAO IN ACCORDANCE WITH THE RULES FOR SETTING TRANSMISSION WHEELING RATES, WITH PRAYER FOR PROVISIONAL AUTHORITY

NATIONAL GRID CORPORATION OF THE PHILIPPINES, Applicant. x------------------ -----------x

ERC CASE NO. 2015-005RC

15.

Although the FME claim is not included in its 3rd Regulatory Reset Application, the same can be recovered during the 3rd Regulatory Period pursuant to Section 10.1.1 of the RTWR where it is allowed to recover the cost incurred for the restoration, repair and rehabilitation of damage sustained by its transmission assets and other related facilities as a result of the FME. Copy of the FME Claim Computation is attached to the application as Annex “F”;

16.

The FME Claim does not breach the Force Majeure Threshold Amount (FMTA). Copy of the FMTA Computation is attached to the application as Annex “G”;

17.

It considered the Net Fixed Asset Value of the transmission assets and other related facilities damaged by the FME Typhoon Agaton in the calculation of the FM PassThrough Amount given that it would have normally fully recovered the return of capital on said assets for the duration of its economic lives had these assets not been damaged or destroyed by the FME Typhoon Agaton;

18.

It moves for the issuance of a provisional approval for the immediate recovery of the FME claim pursuant to Section 3, Rule 14 of the Commission’s Rules of Practice and Procedure. It needs to immediately recover the actual expenses incurred for the rehabilitation of the damaged transmission assets and other related facilities. The occurrence of the aforementioned FME requires capital infusion, the recovery of which should be allowed to avoid putting financial strain in the transmission provider, and to allow it to continuously provide the necessary transmission service to the grid customers;

19.

The timely implementation of the pass-through amount will allow the equal or even spread of the increases or decreases in tariffs from the initial implementation of the recovery of the cost;

20.

A copy of the Judicial Affidavit of Agnes F. Dela Cruz, Head, Tariff Design and Billing Management Division, Revenue and Regulatory Affairs of NGCP in support thereof is attached to the application herewith as Annex “H”; and

21.

In compliance with Rule 6 of the Commission’s Rules of Practice and Procedure, the prefilling requirements of the instant application are attached herewith as Annex “I”;

22.

It prays that the Commission:

Allegation in Support of the Prayer for Provisional Approval

NOTICE OF PUBLIC HEARING TO ALL INTERESTED PARTIES: Notice is hereby given that on January 14, 2015, the National Grid Corporation of the Philippines (NGCP) filed with the Commission an application for the approval of the force majeure event regulated FM pass through for Typhoon Agaton in Mindanao in accordance with the Rules for Setting Transmission Wheeling Rates (RTWR), with prayer for provisional authority. In the said application, NGCP alleged, among others, the following: 1.

It is a corporation created and existing under the laws of the Philippines, with principal office address at NGCP Builiding, Quezon Avenue corner BIR Road, Diliman, Quezon City. It is the corporate vehicle of the consortium which was awarded the concession to assume the power transmission functions of the National Transmission Corporation (TRANSCO) pursuant to Republic Act No. 9136 (R.A. 9136), otherwise known as the Electric Power Industry Reform Act of 2001 or the EPIRA;

a. Issue, immediately upon filling of the application, a provisional authority to implement and bill the FM Pass-Through Amounts to Mindanao customers starting February 2015 billing month to December 2020 or until such time that the amount incurred is fully recovered;

It was also granted a franchise under Republic Act 9511 (NGCP Franchise) to construct, install finance, manage, improve, expand, operate, maintain, rehabilitate, repair and refurbish the present nationwide transmission system of the Republic of the Philippines;

Declare the Typhoon Agaton as force Majeure Event (FME);

On January 15, 2009, it assumed transmission functions of TRANSCO including the operation, management and maintenance of the nationwide electric grid;

Pursuant to Section 10.1.1 of the RTWR, it is allowed to recover the cost incurred in the restoration, rehabilitation, repair of damage sustained by its transmission assets and other related facilities as a result of a force majeure event (FME), as defined in Article I of the RTWR;

Approve the CAPEX incurred for the repair, restoration, and rehabilitation of the damaged transmission assets and other related facilities due to typhoon Agaton in Mindanao as FME;

Approve the proposed pass-through amount representing return on capital, return of capital and taxes associated with the emergency responses and the repair, restoration and rehabilitation of its transmission assets and other related facilities damaged by the FME Typhoon Agaton, as follows:

THE FORCE MAJEURE EVENT (TYPHOON AGATON) 5.

On January 17, 2014, Typhoon Agaton entered the Philippine Area of Responsibility with maximum winds of 35 kph and gustiness of 50 kph. Due to its intensity and heavy rainfall, its transmission assets and other related facilities in the Mindanao area were damaged. Attached to the application as Annex “A” is a copy of the Certification dated April 1, 2014 issued by the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA);

It filed before the Commission a Notice of Force Majeure Event (Typhoon Agaton) on March 28, 2014, attached to the application as Annex “B”;

The Commission issued a letter dated May 8, 2014 acknowledging receipt of its FME Notice regarding Typhoon Agaton;

Immediately after the calamity, repair and restoration and rehabilitation of its damaged transmission assets and other related works were undertaken in order to continue serving its customers;

The cost of additional Capital Expenditure (CAPEX) it incurred to complete the repair, restoration and rehabilitation of its transmission assets and other related facilities including the recoverable values of the assets destroyed amounted to PhP6,958,428.26;

10.

The Details of Activities of FME Typhoon Agaton in Mindanao is attached to the application as Annex “D”;

11.

The damaged transmission assets and other related facilities are not covered by TRANSCO and the Power Sector Assets and Liabilities Management Corporation’s (PSALM) Industrial All Risk (IAR) Insurance Policy with the Government Service Insurance System (GSIS) for the year 2014 and is therefore not compensable. Copy of the Certification in support of such allegation is attached to the application as Annex “E”;

12.

There is a need to realign its CAPEX projects to recover the cost incurred for the repair, restoration, and rehabilitation of the damaged transmission assets and other related facilities subject of this application; COMPUTATION OF FME EVENT PASS-THROUGH AMOUNT

13.

14.

It proposes the FM pass-through amount, P/kW-month, as additional network charges in Mindanao starting the billing period of February 2015 to December 2020, or until such time that the amount incurred is fully recovered, computed as follows:

Grid

2015

2016

2017

2018

2019

2020

Mindanao

0.18

0.04

It proposes the FM pass-through amounts for the years 2016 to 2020 to allow the recovery of the CAPEX incurred relative to the FME Typhoon Agaton should there be a delay in the reset process for the Transmission Services for the Fourth (4th) Regulatory Period (RP);

Grid

2015

2016

2017

2018

2019

2020

Mindanao

0.18

0.04

e. Approve and allow the recovery of the Net Fixed Asset Value of the transmission assets and other related facilities damaged by Typhoon Agaton in Mindanao in the amount of One Million Six Hundred Eighty-One Thousand Fifty-Six and 18/100 Pesos (PhP1,681,056.18) as part of the FM Pass Through Amount given that the said amount would have been fully recovered by it if these transmission assets and other related facilities have not been damaged or destroyed by Typhoon Agaton as FME; and f.

Exclude the proposed Pass-Through Amount from the side constraint calculation.

The Commission has set the application for expository presentation, pre-trial conference and evidentiary hearing on July 1, 2015 (Wednesday) at nine o’clock in the morning (9:00A.M.) in the ERC, Mindanao Field Office, Mezzanine Floor, Mintrade Building, Monteverde corner Sales Sts., Davao City. All persons who have an interest in the subject matter of the proceeding may become a party by filing, at least five (5) days prior to the hearing and subject to the requirements in the ERC’s Rules of Practice and Procedure, a verified petition with the Commission giving the docket number and title of the proceeding and stating: (1) the petitioner’s name and address; (2) the nature of petitioner’s interest in the subject matter of the proceeding, and the way and manner in which such interest is affected by the issues involved in the proceeding; and (3) a statement of the relief desired. All other persons who may want their views known to the Commission with respect to the subject matter of the proceeding may file their opposition to the application or comment thereon at any stage of the proceeding before the applicant concludes the presentation of its evidence. No particular form of opposition or comment is required, but the document, letter or writing should contain the name and address of such person and a concise statement of the opposition or comment and the grounds relied upon. All such persons who may wish to have a copy of the application may request the applicant, prior to the date of the initial hearing, that they may be furnished with a copy of the application. The Applicant is hereby directed to furnish all those making such request with copies of the application and its attachments, subject to reimbursement of reasonable photocopying costs. Likewise, any such person may examine the application and other pertinent records filed with the Commission during the usual office hours. WITNESS, the Honorable Chairperson, ZENAIDA G. CRUZ-DUCUT, and the Honorable Commissioners, ALFREDO J. NON, GLORIA VICTORIA C. YAP-TARUC, JOSEFINA PATRICIA A. MAGPALE-ASIRIT, and GERONIMO D. STA. ANA, Energy Regulatory Commission, this 1st day of June 11, 2015 at Pasig City. (SGD.) ATTY. FRANCIS SATURNINO C. JUAN Executive Director III (TS-JUNE 13 & 20, 2015)

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SPORTS sports@thestandard.com.ph

Lions eyeing 6 straight crown th

By Peter Atencio

THE reigning five-time champion San Beda College Red Lions are raring to go for another crown when Season 91 of the National Collegiate Athletic Association men’s basketball tournament begins next week. “If I rate it, we’re 70 percent ready,” said new coach Jamike Jarin, who added that he has an almost intact roster in Season 91. The Red Lions are returning with the core of Art Dela Cruz, Ola Adeogun, and the country’s best

pure point guard, Baser Amer still in the mix. And their presence is expected to boost the Red Lions’ bid for a record-breaking attempt to claim a sixth straight championship. The Big Three of Mendiola are said to be respon-

sible for 52.2% of the team’s output, with Adeogun averaging 16.1 points and 11.5 rebounds. He is one of only five players who averaged a double-double last year. Adeogun has done a lot for a Red Lions’ team that has surprisingly shot only 25% in field goals compared to previous seasons. The team will make adjustments with the loss of Anthony Semerad, who shot 41% in field goals. Kyle Pascual, who got a championship for every year he played with the team, has

also graduated and will be leaving a big question mark as to who will give Adeogun a breather. Four players from Team B will most likely be tapped to fill in vacancies in the roster of the Red Lions. Six-foot-six Donald Pierre Tankoua, a Cameroonian big man, will be among the four cagers whom Jarin is considering to elevate from Team B to the regular team when action unfolds on June 27 at the Mall of Asia Arena in Pasay City. Tankoua, who spent a lot of time developing his

game playing for Team B the last two years, is being eyed to come aboard with wingmen Amiel Soberano, Jeremer Cabanag, Jose Presbiterio, and another guard Ice Reyes. Reyes, the son of former national coach Chot Reyes, is a transferee from a Ateneo, and has been in Team B for the last two seasons, while Cabanag is from Laguna. Presbiterio comes from Ateneo de Davao. All four have been lined up in the Red Lions’ games in pre-season tournaments, and because of this,

Patino proving worth as an Azkal FIL-SPANISH striker Javier Patino is proving himself as a scoring threat for the Philippine Azkals’ national football team. The Madrid-born Patino displayed another side of his game in his return stint with the Philippines in the FIFA World Cup secondround qualifiers. After coming up with one goal in the Azkals’ 2-1 upset of Bahrain in the Group H opener at home, Patiño dished out two assists to help the Philippines post a 2-0 shutout of Yemen in Qatar. Because of his heroics, the Azkals grabbed a share of the lead with North Korea. “I’m just happy to be back with this big family, very nice people,” said Patiño before he went back to his current club, Henan Jianye FC in the Chinese Super League. Patino played his first two games since seeing action in the Azkals’ 0-1 loss to Azerbaijan in an international friendly in 2014. He missed the Azkals’ previous campaigns, like last year’s AFC Challenge Cup and AFF Suzuki Cup due to either club commitment or injury. So far, he has netted 35 goals in 54 appearances with Thai Premier League side Buriram United last year. He has already shot five in the first 12 matches of his current club Henan Jianye FC in the Chinese Super League. With him around, the Azkals will have one offensive option, and this allows top-scorer Phil Younghusband to drop deeper in midfield. Peter Atencio

the team is almost ready for action. Jarin said he can’t accept members from the “sixpeat” junior champion San Beda Red Cubs yet because they need time to develop their games first. Some of the Red Cubs have left elsewhere, with key player Andrei Caracut moving to the La Salle Green Archers, while Evan Furaque and Norrish Decapia are with the University of Santo Tomas Tigers. Mar Joper Diputado is trying his luck with the National University Bulldogs.

Friendship Games set in Tuguegarao

National chessfest. Some 400 competitors are shown during the National Capital Region Leg of 23rd Shell National Youth Actives Chess Championship at the SM Megamall in Mandaluyong City. LINO SANTOS

The power... From A15 undoing of Philippine pride and credibility and would create a mess in boxrec.com such as what is currently happening in Thailand with the constant name changes associated with Thai boxers’ sponsors/ promoters names constantly being substituted at the same frequency as an exchange rate instead of using birth names for Thai boxers.” In an unforgivable about-face and in violation of its own resolution and a blatant disregard for integrity, the GAB allowed the fight card promoted by Brico Santig, who appears to be a favored matchmaker/promoter of the GAB in apparent cooperation with Naris Singwancha at the OPBF Convention to allow the use of the name Singwancha affixed to that of No. 2-ranked Arde Boyse and in posters plastered all over Bacolod City and the convention site. Worse still, the ring announcer barked out the name Singwancha when introducing boxer Ardie Boyse. We have complained in the past when GAB ring announcer

Boy Villanera not merely announced the name Singwancha when introducing fighters, but often went out of his way to salute the presence of the Thai businessman and asks the fans to applaud. What manner of men are these who, by their actions, continue to erode the integrity of the GAB and the sport of boxing It is a well known fact that in exchange for the use of his name, Singwancha pays off managers and promoters and is often see shamelessly giving the winner of a fight a couple of hundred dollars in the ring and in full view of the public. At every turn, Guanzon boasts of the fact that the GAB is under the Office of the President, Benigno Aquino III, and uses this to get away with a series of shenanigans as a political appointee, including wasting taxpayers’ money by attending conventions of world boxing organizations held abroad along with Commissioners Fritz Gaston and Atty. Aquil Tamano, among others. Must we bear with these individuals with a lack of conscience, self-respect and integrity until next year’s presidential elections when men and women of their ill are cast away into the dustbin of a worthless era.

TUGUEGARAO CITY— Members of the Philippine volleyball team which recently joined the Southeast Asian Games in Singapore were invited to participate in the volleyball event of the 7th Governor Alvaro T. Antonio Friendship Games slated June 23 to 29 at the provincial indoor gymnasium. Eight teams, led by Manny Pacquiao Hotel, have already confirmed their participation in both volleyball and basketball event of the weeklong tourney, which is part of the 432nd founding anniversary celebration of the Provincial Government. “The Provincial Government of Cagayan through its Provincial Sports Committee has been actively promoting and conducting sports-tourism activities in the provinces. These were intended to promote healthy lifestyles among Cagayanos, strengthen our interagency partnership and unity, instill discipline to our youth through sports and develop their athleticism,” said Gov. Antonio.

The Philippine men’s sailing team, helmed by top class sailor Ridgely Balladares and managed by Standard Insurance computer engineer Richly Magsanay and sailor Rommel Chavez took home the country’s first Southeast Asian Games sailing gold in a decade. The three, who are with the Standard Insurance Centennial III sailing team, helped to earn the Philippines its 29th gold medal overall at the just concluded SEA Games in Singapore. Philippine Sailing Association president Judes Echauz disclosed that the team improved on the 2013 SEA Games silver finish and the win was the Philippines’ first at the SEA Games since they hosted the biennial event in 2005. With Balladares, Magsanay and Chavez, Standard Insurance Centennial III also swept the recent Commodore’s Cup Regatta 2015 in Subic Bay Freeport Zone and bagged the overall title in an international race in the combined Subic to Boracay Race and Boracay Cup Regatta 2015 in Malay, Aklan, after several second-place finishes in the past.

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A15

SPORTS sports@thestandard.com.ph

The power of a name THERE were two painful developments that our country and people had to live with, at least for the time being, this past week, that underRONNIE NATHANIELSZ mined the integrity of boxing under the leadership of Games and Amusements Board chairman Ramon Guanzon and the disastrous showing of the Philippines in the Southeast Asian Games in Singapore. We will leave the SEA Games debacle for next week. GAB chairman Guanzon, who played host to the Oriental and Pacific Boxing Federation Convention in his hometown of Bacolod City, together with his Boxing Division Chief Dr. Nasser Cruz and their sycophants, insulted Filipinos on the same day we celebrated our cherished Independence when they conspired to allow boxer Ardie Boyse to use the family name Singwancha in the main event in a bout against World Boxing Council Youth world super featherweight champion Argie “Bomba” Toquero. Last year, we assailed the GAB and condemned the unwarranted practice of allowing Thai businessman Naris Singwancha to affix his family name to the family name of Filipino boxers, pointing out that he could do what he wanted in Thailand where name changes are a dime a dozen, but not in the Philippines. We said that Filipinos, just like other peoples with a sense of heritage and history, must surely consider their family names precious and not to be trifled with or peddled for a price. It is for this reason that that Filipino parents, father in particular, always long for a son (although they welcome their daughters just as much) because sons carry the family name from one generation to another. Indeed, Kabalarian Philosophy states that “the power of a name and its value has long been immortalized in prose , poetry and religious ceremony. Everyone recognizes himself or herself by name.” We insisted that substituting a fighter’s family name with that of someone else – Singwancha to be specific – is worse than death because a family name in many respects is sacred and means everything. To their credit, the GAB passed a resolution that prevented Filipino boxers from using foreign family names instead of their own. It was in response to our persistent efforts to get the GAB to act on the blatant anomaly, where several fighters use the name Singwancha, with the businessman reportedly buying the right to have boxers use his family name from their managers or promoters. In one of the “Flash” Elorde Annual Awards, we had the ridiculous and confusing sight of two Filipino boxers being introduced as Singwanchas! The issue actually came to a head in an ALA Promotions – ABSCBN “Pinoy Pride XIX ” fight card in Davao City, when we were asked to allow the use of the Singwancha name for Rex “Wakee” Salud’s boxer Marco Demecillo in his OPBF super flyweight title fight against King Arthur Villanueva. We flatly refused and even ensured that the TV graphics did not display the name Singwancha much to the irritation of the Thai businessman and Salud himself. GAB Chairman Guanzon acted on our protests and later told The Standard that under a resolution approved by the GAB board, “basically, we will not tolerate the use of any foreign names anymore.” Guanzon also told us that while the Singwancha name was attached to several boxers in the GAB ratings in the past, the Singwancha name would be removed in subsequent ratings. But Singwancha didn’t give up. He requested well-known boxing manager/promoter Aljoe Jaro to seek the assistance of the widely followed internet site boxrec.com and its chief boxing editor for the Philippines Jeremy Lantz to allow the use of the Singwancha name in boxrec.com’s published fight schedules and results. Lantz politely refused the request and forwarded copies of his reply to the GAB as well as this reporter. Lantz said: “I do understand the situation that you are requesting. I do know that you both also agree with Mr. Nathanielsz’s philosophy, but are trapped between business and ethics. Boxers, like soldiers, are to be held in the utmost respect. As their lives hang in the balance every time they step into the squared ring for battle. The fabric of their DNA is that of a Philippine warrior and their proper birth names give their family and nation pride. Just as the name Sonnyt Boy Jaro will never be forgotten in the Jaro household. But will the world ever know current Thai boxer Sirimongkol Singwancha (83-2, 54 KOs) as Sirimingkol Eairnthuarn?” Lantz quoted Thomas Jefferson who wrote: “We hold these truths to be elf-evident: that all men are created equal; that they are endowed by their Creator with certain inalienable rights; that among these are life , liberty and the pursuit of happiness.” He added: “This must apply to man not being stripped of his birth name in order for the accolades of that man’s successes to be directed towards his manager/promoter. I sometimes wonder if Mr. Singwancha would be willing to change his God-given name. It would be the

INSIDE SPORTS

Continued on A14

Stenson, Johnson share US Open lead with 65s TACOMA—Henrik Stenson and Dustin Johnson took full advantage of perfect morning conditions to fire five-under 65s and take a share of the US Open first round lead at Chambers Bay on Thursday. On a day when Tiger Woods took another battering, the Swede and the American, both striving for a first major title after several near misses, ended up with a single stroke lead over the rest of the field. Young American Patrick Reed was solo in second after a 66, with countrymen Matt

Kuchar, Ben Martin and amateur Brian Campbell a further stroke back as home golfers dominated the top of the leaderboard. Masters champion Jordan Spieth struggled early on, but three straight birdies from the 11th spurred him on to a satisfying 68. Among a large group tied on two under with Spieth

Tiger... From A16

The 10-over comes 15 years to the day that Woods won his first US Open title by 15 strokes at Pebble Beach. Now the 14-time major winner will need a miracle to make the cut on Friday as he finished ahead of just two other players at Chambers Bay and one of those was his playing partner and reigning Players Championship winner Rickie Fowler who shot an 11-over 81. Woods started his round Thurs-

day with back-to-back bogeys on the front nine as his season-long slump is showing no signs of ending soon despite a series of swing changes he implemented in the hope it would straighten out his game. On the back nine he had three straight bogeys beginning at No. 11, followed by a triple bogey on the parfour 14th. He capped his round with another bogey at the par-five 18 after topping his approach so deep into one bunker that he had to go down a set of stairs to find it. AFP

Saturday, June 20, 2015

48 50 53 54 55 57 58 60 65 66 67 68 69 70

Bl= =ack-and-yellow bird Monkey — Gym locker item Be contingent on Make smile Night before Bitterly pungent Mythic archer Beret cousin Cancels Japanese poem Stallone nickname Well-known bear — up (confessed)

DOWN 1 Ernesto Guevara 2 “2001” computer 3 Happy sighs 4 — tai cocktail 5 Not genuine 6 Pilots put them down 7 — -de-camp 8 Smelting waste 9 Recess game 10 Public tiffs 11 Scratches

12 13 21 23 24 25 26 27 28 30 31 34 36 37 38 43 44 47 49 50 51 52 53 55 56 59

one bogey in a round that made a mockery of fears that the 7,526-yard monster links-style course south of Seattle would be impossible to tame. Having taken six months off last year to deal with unspecified “personal issues”, the South Carolinian has come close in all four majors, but has fallen agonisingly short of a maiden win. He had a chance to equal the record low first round score at the US Open with a birdie at the par-three last, but he hit his tee-shot into a tough bunker and failed to get up and down. AFP

Dustin Johnson of the United States looks on from the seventh green during the ﬁrst round of the 115th US Open Championship at Chambers Bay in University Place, Washington. AFP

CROSSWORD PUZZLE ACROSS 1 Trophy winner 6 Forgoes food 11 Dernier — 14 Happy sounds (hyph.) 15 Flowery scent 16 Give the go-ahead 17 — the Cow 18 Familiar saying 19 Arab cloak 20 Dismantle a tent 22 Stair post 24 Goes through mitosis 28 Skimpy 29 Charm 30 Not quite right 32 Paper mill need 33 Nerdy guy 35 Recipe amt. 39 For real 40 Elev. 41 Johnson of “Laugh-In” 42 Attention 43 Ear pollution? 45 Chimney deposit 46 Smidgens

were Australian Jason Day, Scotland’s Marc Warren and American Jason Dufner. World number one and tournament favourite Rory McIlroy had less to be pleased about as four bogeys on the day meant he had to settle for a two over 72. But it was the horror show from fallen great Woods that had many fans gasping in surprise as he carded a 10-over 80 - his worst ever US Open showing and the fourth worst of his professional career. The 30-year-old American Johnson had six birdies against

Refuse to go along Where Florence is Brainy one, maybe China locale (2 wds.) Third dimension Harden Market worth Slowing down Playing marble Zeus’ shield Queens baseballers Cowboy’s shout Trout’s home Evening wrap Sellers or Lorre Highest degree Untold centuries Coral reef locales Bounce, as sound waves Uses a strop Contender Rome, to Carthage Full of lather A Guthrie Calcium source Magna — laude

61 62 63 64

Labor org. Kegler’s target Harry’s successor Big flop

PREVIOUS PUZZLE SOLVED

6-20-15

LOTTO RESULTS 6/45 00-00-00-00-00-00 P0.0 M+ 4 DIGITS 00-00-00-00 3 DIGITS 00-00-00 2 EZ2 00-00

A16

S AT U R D AY : J U N E 2 0 , 2 0 1 5

RIERA U. MALL ARI EDITOR

REUEL VIDAL A S S I S TA N T E D I T O R

sports@thestandard.com.ph

SPORTS

A driving Kelly Williams (right) of Talk N’ Text is hammered by Hamady N’Dyiaye of KIA in a PBA Governors’ Cup game won by the Texters, 94-85.

TNT Texters bolster bid

By Jeric Lopez

WHEN the going got tough, the tough got going for Talk ‘N Text Knowing they are in dire ended its campaign in the elimneed of a win to survive, the ination round at 5-6 and will Tropang Texters banked on play the waiting game until all their championship mettle to matches are played out to see trip pesky KIA Motors, 94-85, if it moves forward to the next in a vital win to boost round. KIA, which G a m e To d ay their bid for a quartersuffered its third City, Davao) finals berth in the 2015 (Panabo straight setback, fell to 5 p.m. • Alaska vs. Philippine Basketball 4-6 to slide down to San Miguel Association Gover10th place. nors’ Cup last night at In the process, the the Smart Araneta Coliseum. victory allowed the Tropang Talk ‘N Text had five wards Texters to momentarily take scoring in double-figures, led the eighth and last quarterfinals by Jayson Castro’s game-high 19 berth at the moment, while the points, while big men Ranidel Carnival still have one more De Ocampo and Kelly Wil- game left they would need to liams each had 14 markers and win in order to have a shot at imports Stephon Pettigrew and advancing. Sam Daghles had 11 apiece. ‘’Wait and see na kami ngayon. As a result, Talk ‘N Text That’s all we can do right now,’’

said Talk ‘N Text coach Jong Uichico of his squad’s situation. ‘’We have to be as positive as we can. Doable naman ‘yung mga scenarios pero unfortunately, wala na nga sa mga kamay namin.’’ From a 57-38 deficit at the half, KIA came back strong in the third and took the period, 27-13, to slice Talk ‘N Text’s lead to only five, 70-65, entering the fourth. But the Tropang Texters’ resolve remained as they opened the payoff period with a decisive 16-4 blast, capped by two triples from Williams, one by Castro and a jumper from Daghles in succession to suddenly restore a 15-point advantage, 84-69, with 7:45 remaining in the game. That spurt proved to be the dagger as KIA wasn’t able to recover. Jet Chang led all KIA scorers with 19 points. Talk ‘N Text pounced on Kia

A-Rod a hit away from 3,000 Stenson, Johnson show way in US Open TURN TO A12

TURN TO A13

as early as the first frame, opening up a sizeable 32-17 advantage right away at the end of one. The Texters never looked back as they kept the Carnival at bay until the final horn to secure that they weren’t going to take a vacation yet. By the second period, the lead grew even bigger for Talk ‘N Text. Its lead went as high as 28 points, 51-23, with 5:39 remaining in the first half after Williams’ jumper. At the break, it was 57-38. Talk ‘N Text shot 54.8 percent and made nine triples and 26 points inside the paint in the first 24 minutes alone to control the contest. Meanwhile, the clash of the titans finally occurs today with the top seeding on the line as league leader San Miguel Beer (8-2) and second-running Alaska (7-2) collide at 5 p.m. in Panabo City, Davao. The victor will be the top-ranked team heading into the quarterfinals.

Tiger Woods: Tough, rough day

Tiger in US Open horror show TACOMA—Tiger Woods endured the worst US Open round of his career Thursday with a shocking 10-over 80 at Chambers Bay. It marked Woods’ third round in the 80s this season and he equalled the worst major championship round of his career, bringing back memories of his 10-over 81 at the storm-hit 2002 British Open in Muirfield. “Not very happy, that’s for sure. It was a tough day,” said Woods, who will turn 40 in December. “I couldn’t quite get it turned around today.” Woods’ head-scratching opening round comes just two weeks after he shot a career-high 85 in the third round of The Memorial. His previous worst score in a US Open was in 2006 at Winged Foot in Mamaroneck, New York, where he shot two straight rounds of 76 and missed the cut. “For some reason I just can’t get the consistency that I’d like to have out there,” said Woods, who finished with eight bogeys, one triple bogey and just one birdie. Continued on A15

SATURDAY: JUNE 20, 2015

RAY S. EÑANO EDITOR

RODERICK T. DELA CRUZ ASSISTANT EDITOR

business@thestandard.com.ph extrastory2000@gmail.com

BUSINESS

Moody’s cuts GDP growth goal By Julito G. Rada

GLOBAL debt watcher Moody’s Investors Service lowered its growth forecast for the Philippines this year to 6 percent from the previous estimate of 6.5 percent made in December 2014 due to the government’s anemic fiscal expenditures. Moody’s said “the government’s ambitious growth target [of 7 to 8 percent for 2015] may be difficult to achieve in the absence of more effective budget execution.” The government earlier projected the economy to expand by 7

percent to 8 percent for both 2015 and 2016. Moody’s, however, expects the gross domestic product in 2016 to rebound with a growth of 6.5 percent. Moody’s said while details for April were not yet available, “in-

frastructure and other capital outlays” declined 11 percent in the first quarter, contributing to the drag posed by public investment on overall GDP growth in the first three months of the year. The GDP in the first quarter grew 5.2 percent on the back of the government’s low fiscal spending. It was the slowest expansion since the 3.7-percent growth in the fourth quarter of 2011. “Given the continued strength in revenue collection, the government may find it difficult to reach its fullyear target deficit of 2.0 percent of GDP--and its real GDP growth target of 7-8 percent--without significantly improving expenditure

performance,” it said. Through the first four months of the year, the national government recorded a fiscal surplus of P22.4 billion compared with a deficit of P3.3 billion in the same period last year. Taking out interest payments, the primary surplus was 20 percent larger than last year at P135.2 billion. The GDP in 2014 grew 6.1 percent, significantly lower than 7.2 percent in 2013, weighed down by the government’s underspending which impacted the third-quarter expansion. Third-quarter GDP stood at 5.3 percent, lower than the 6.4 percent in the second quarter. Economists said the govern-

ment’s cautious and calculated spending stemmed from the controversial disbursement acceleration program of the administration, which was earlier ruled by the high tribunal as unconstitutional. The Supreme Court later reversed the ruling. The 6.1-percent GDP growth in 2014 fell short of the government’s target of 6.5 percent to 7.5 percent for the year. Moody’s, meanwhile, said the Baa2 rating it gave to the Philippines on Dec. 11, 2014 reflected the country’s high economic strength, moderate institutional strength, moderate fiscal strength, and low susceptibility to event risks.

PSe comPoSite index Closing June 19, 2015

7800 7500 7200 6900 6600 6300

7,601.17 5.69

PeSo-dollar rate

Closing JUNE 19, 2015 47

P45.110

45 44 43

HIGH P44.900 LOW P45.110 AVERAGE P45.011 VOLUME 625.600M

P480.00-P680.00 LPG/11-kg tank P41.20-P47.85 Unleaded Gasoline P28.85-P32.20 Diesel

oPriceS il P today

P34.55-P39.15 Kerosene

Bulgarian visitor. Bulgarian Ambassador to the Philippines Evgueni Stefanov Stoytchev (left) pays a courtesy call on Economic Planning Secretary and National Economic and Development Authority director-general Arsenio Balisacan on June 10 at the Neda Pasig bulding. The ambassador expressed Bulgaria’s interest to create business ventures aligned with the Philippines’ established national plans.

P23.70-P24.40 Auto LPG Bangko Sentral ng Pilipinas Friday, June 19, 2015

F oreign e xchange r ate Currency

Unit

US Dollar

Peso

United States

Dollar

1.000000

45.0170

Japan

Yen

0.008135

0.3662

Pound

1.588600

71.5140

Hong Kong

Dollar

0.128996

5.8070

Switzerland

Franc

1.085305

48.8572

Canada

Dollar

0.817728

36.8117

Singapore

Dollar

0.749625

33.7459

Australia

Dollar

0.783822

35.2853

Bahrain

Dinar

2.652520

119.4085

Saudi Arabia

Rial

0.266674

12.0049

Brunei

Dollar

0.746826

33.6199

Indonesia

Rupiah

0.000075

0.0034

Thailand

Baht

0.029762

1.3398

UAE

Dirham

0.272272

12.2569

Euro

1.137100

51.1888

Korea

Won

0.000908

0.0409

China

Yuan

0.161095

7.2520

India

Rupee

0.015706

0.7070

Malaysia

Ringgit

0.269687

12.1405

New Zealand

Dollar

0.694782

Taiwan

Dollar

0.032547

31.2770 1.4652 Source: PDS Bridge

GSIS negotiates sale of thrift bank for P501m By Gabrielle H. Binaday STATE pension fund Government Service Insurance System said Friday it will divest all its shares in GSIS Family Bank through a negotiated sale for a minimum offer price of P501 million. GSIS said the winning buyer would enjoy various incentives under Resolution No. 224 issued by Bangko Sentral ng Pilipinas in February 2015. These incentives include opening 20 additional branches and relocating 12 of its existing 22 branches anywhere in the coun-

try, including restricted areas and accepting government deposits from GSIS subject to the approval of the Finance Secretary. A local court earlier lifted an order preventing the pension fund from selling its 99-percent stake in GSIS Family Bank. GSIS owns 25.15 million shares, representing 99 percent of total shares in GSIS Family Bank. The rest of the shares are owned by heirs of Renato Dragon. GSIS said the winning offeror would also be allowed to retain the GFB thrift banking license, if the winning third-party inves-

tor turned out to be a commercial bank. It said if buyer is a thrift bank, it would be allowed to either merge with GFB or convert into a commercial bank that can operate and engage in expanded foreign currency deposit units, trust and quasi-banking functions. “If it is not a bank, the winning offeror may convert GFB into a commercial bank subject to compliance with existing laws and regulations,” GSIS said. GSIS said interested parties had until 1:30 p.m. Of June 22 to submit their financial offer to the invest-

ment bids and awards committee. The bank has been for sale since 2006, but a restraining order from the Makati regional trial court stopped the transaction. The order was lifted in March. GSIS Family Bank was the former Royal Savings Bank, which was established as a private bank 40 years ago by the Dragon family of Cavite. It later became known as Commercial Bank of Manila and ComSavings Bank. Meanwhile, GSIS said it would increase its credit limits and extend payment terms for its active members next month.

SATURDAY: JUNE 20, 2015

BUSINESS business@thestandard.com.ph extrastory2000@gmail.com

MST BuSineSS Daily STockS Review Friday, June 19, 2015

52 Weeks

High Low

STOCKS

75.3 124.4 104 63 2.49 4.2 18.48 31.6 890 99.4 1.46 30.5 94.95 137 361.2 59 174.8 1700 127.9

66 84.6 84.5 45.8 1.97 2.03 12.02 23.55 625 78 0.9 18.02 76.5 95 276 45 107.6 1200 66

Asia United Bank Banco de Oro Unibank Inc. Bank of PI China Bank BDO Leasing & Fin. INc. Bright Kindle Resources COL Financial Eastwest Bank Manulife Fin. Corp. Metrobank Natl. Reinsurance Corp. PB Bank Phil. National Bank Phil. Savings Bank PSE Inc. RCBC `A’ Security Bank Sun Life Financial Union Bank

73.65 109.90 98.65 45.75 2.45 1.71 15.78 20.35 835.00 90.05 1 18.00 67.95 94 306 42 161 1495.00 63.50

35.6 1.6 1.04 1.41 7.92 40.3 14.6 10.08 29.15

1.04 10.72 8.44 9.79 5.43 9.54 1.06 8.61 18.06 67.9 14 3.12 168 8.65 1.63 16 24.4 16.2 7.62 250.2 3.37 3.87 9 3.03 2.22 1 4.72 1.65 201.6 1.67 0.122 2.01 143.4 0.670 9.01

Aboitiz Power Corp. Agrinurture Inc. Alliance Tuna Intl Inc. Alsons Cons. Asiabest Group Bogo Medelin Century Food Cirtek Holdings (Chips) Concepcion Crown Asia Da Vinci Capital Del Monte DNL Industries Inc. Emperador Energy Devt. Corp. (EDC) EEI Euro-Med Lab Federal Res. Inv. Group First Gen Corp. First Holdings ‘A’ Ginebra San Miguel Inc. Integ. Micro-Electronics Jollibee Foods Corp. Lafarge Rep Mabuhay Vinyl Macay Holdings Manila Water Co. Inc. Maxs Group Megawide Mla. Elect. Co `A’ Panasonic Mfg Phil. Corp. Pepsi-Cola Products Phil. Petron Corporation Phoenix Petroleum Phils. Phoenix Semiconductor Pryce Corp. `A’ RFM Corporation Roxas and Co. San Miguel’Pure Foods `B’ Splash Corporation Swift Foods, Inc. Trans-Asia Oil Universal Robina Vitarich Corp. Vivant Corp.

44.45 1.45 1.04 1.97 10.4 51.5 18.38 27.1 58 2.21 1.52 11.86 18.900 9.13 7.49 10.00 1.73 12.4 25.35 83.9 13.90 6 198.30 9.85 2.9 54.75 25.25 24.85 6.35 282.00 4.19 4.62 8.50 4.02 2.04 2.6 4.30 2.17 170 1.64 0.146 2.21 197.5 0.76 22.60

0.45 48.1 20.85 1.6 6.62 1.4 600 7.390 14.18 4.25 0.144 818 5.3 46.6 3 4.43 0.59 12 0.580 4.22 4.5 0.450 66.7 709.5 1.13 0.93 85.2 0.200 0.173 0.310

Abacus Cons. À’ Aboitiz Equity Alliance Global Inc. Anglo Holdings A Anscor À’ ATN Holdings A Ayala Corp À’ Cosco Capital DMCI Holdings Filinvest Dev. Corp. Forum Pacific GT Capital House of Inv. JG Summit Holdings Keppel Holdings À’ Lopez Holdings Corp. Lodestar Invt. Holdg.Corp. LT Group Mabuhay Holdings À’ Metro Pacific Inv. Corp. Minerales Industrias Corp. Prime Orion San Miguel Corp À’ SM Investments Inc. Solid Group Inc. South China Res. Inc. Top Frontier Unioil Res. & Hldgs Wellex Industries Zeus Holdings

0.465 57.0000 23.05 1.27 6.80 0.246 799.5 7.94 13.46 4.50 0.235 1367 6.69 71.30 5.1 7.38 0.69 13.86 0.62 4.58 5.1 1.580 60.65 885.50 1.21 0.71 84.950 0.3500 0.2100 0.280

6.01 0.91 1.29 29.1 4.1 4.96 0.89 1.1

8990 HLDG A. Brown Co., Inc. Araneta Prop `A’ Ayala Land `B’ Belle Corp. `A’ Cebu Holdings Century Property City & Land Dev.

7.440 0.71 1.250 38.90 3.49 5.43 0.83 1.24

47 5 1.66 2.36 15.3 113 20.6 32 65.8 4.57 23.35 21.6 12.98 9.13 12.34 2.89 17 31.8 109 20.75 9.4 241 12.5 4 45.45 33.9 90 13.98 292.4 5 5.25 13.04 7.03 3.4 4.5 6.68 7.86 253 3.28 0.315 2.68 226.6 1.3 26 0.7 59.2 31.85 2.16 7.39 3.4 800 11.06 84 5.14 0.66 1380 6.68 72.6 5.29 9.25 0.9 18.9 0.73 5.53 6.55 0.84 87 934 2.2 1.39 156 0.710 0.435 0.510 10.5 1.99 2.07 40 6.15 5.4 1.54 1.97

High

Low

FINANCIAL 73.7 73.2 110.40 109.40 99.50 98.75 46 45.65 2.48 2.40 1.75 1.74 15.78 15.32 20.45 20.05 854.00 850.00 90.95 89.7 0.99 0.99 18.00 18.00 68.60 67.00 94 90 306.8 306 42 41 167.5 161.2 1520.00 1500.00 63.60 59.00 INDUSTRIAL 44.95 44.5 1.44 1.44 1.06 1.03 1.97 1.94 10.42 10.2 69.9 49.2 18.4 18.3 27.5 26.8 58 58 2.25 2.17 1.55 1.55 11.8 11.62 19.120 18.9 9.25 9.04 7.58 7.47 10.10 9.90 1.78 1.68 12.4 12.2 25.6 25.3 85 83.65 13.86 13.86 6.04 5.97 198.90 196.70 9.85 9.75 2.73 2.73 54.75 49.50 25.6 24.9 24.85 24.8 6.85 6.29 285.00 281.80 4.18 4.18 4.7 4.6 8.93 8.59 4.00 3.90 2.02 1.95 2.74 2.51 4.34 4.25 2.17 1.93 179 169.8 1.63 1.59 0.146 0.143 2.21 2.18 201 196 0.78 0.75 25.50 25.50 HOLDING FIRMS 0.475 0.460 57.3000 56.0500 23.30 22.40 1.26 1.20 6.89 6.76 0.250 0.243 802 798.5 8 7.95 13.60 13.34 4.54 4.50 0.235 0.217 1390 1368 6.68 6.50 73.00 71.30 5.03 5.03 7.38 7.26 0.69 0.66 14 13.86 0.63 0.63 4.7 4.58 5.22 5.05 1.610 1.470 64.45 60.40 899.50 880.00 1.25 1.21 0.74 0.70 84.900 81.000 0.3500 0.3450 0.2180 0.2020 0.275 0.270 PROPERTY 7.500 7.300 0.71 0.65 1.250 1.240 39.20 38.25 3.52 3.37 5.59 5.25 0.83 0.81 1.22 1.22

Net Foreign

Change Volume

Trade/Buying

73.7 109.80 98.75 45.65 2.40 1.74 15.76 20.05 850.00 90.2 0.99 18.00 68.55 94 306.6 41 165 1500.00 59.00

0.07 -0.09 0.10 -0.22 -2.04 1.75 -0.13 -1.47 1.80 0.17 -1.00 0.00 0.88 0.00 0.20 -2.38 2.48 0.33 -7.09

17,660 4,837,050 2,280,070 32,100 10,000 16,000 23,600 624,400 160 1,362,880 12,000 10,000 49,110 120 1,150 218,500 1,050,810 695 148,880

44.95 1.44 1.06 1.94 10.38 60.5 18.38 26.85 58 2.21 1.55 11.7 18.920 9.05 7.57 10.00 1.78 12.4 25.35 83.7 13.86 6 197.20 9.85 2.73 54.75 24.9 24.85 6.29 285.00 4.18 4.66 8.62 3.97 1.97 2.52 4.26 2.17 170 1.63 0.146 2.18 198 0.77 25.50

1.12 -0.69 1.92 -1.52 -0.19 17.48 0.00 -0.92 0.00 0.00 1.97 -1.35 0.11 -0.88 1.07 0.00 2.89 0.00 0.00 -0.24 -0.29 0.00 -0.55 0.00 -5.86 0.00 -1.39 0.00 -0.94 1.06 -0.24 0.87 1.41 -1.24 -3.43 -3.08 -0.93 0.00 0.00 -0.61 0.00 -1.36 0.25 1.32 12.83

3,276,200 2,000 82,000 2,586,000 16,500 21,100 627,000 519,600 91,450 2,160,000 8,000 56,900 1,270,400 4,145,400 29,189,900 1,073,800 15,000 3,500 2,816,200 92,220 400 158,100 540,360 280,800 2,000 300 648,300 42,600 89,000 285,080 5,000 2,768,000 17,450,700 313,000 4,814,000 1,793,000 18,076,000 33,000 84,170 51,000 720,000 662,000 3,447,650 1,353,000 100

0.475 56.5500 23.10 1.26 6.77 0.249 799.5 7.98 13.48 4.54 0.217 1390 6.68 71.50 5.03 7.27 0.69 13.92 0.63 4.7 5.15 1.480 64.45 881.00 1.25 0.74 82.000 0.3500 0.2030 0.270

2.15 -0.79 0.22 -0.79 -0.44 1.22 0.00 0.50 0.15 0.89 -7.66 1.68 -0.15 0.28 -1.37 -1.49 0.00 0.43 1.61 2.62 0.98 -6.33 6.27 -0.51 3.31 4.23 -3.47 0.00 -3.33 -3.57

170,000 2,405,180 5,142,800 41,000 19,100 180,000 317,590 1,885,100 5,572,100 112,000 40,000 139,040 144,900 5,089,830 100 1,745,000 248,000 1,401,100 2,000 29,468,000 144,000 25,529,000 341,540 517,170 206,000 100,000 820 2,240,000 2,500,000 620,000

7.390 0.69 1.250 38.25 3.37 5.25 0.83 1.22

-0.67 -2.82 0.00 -1.67 -3.44 -3.31 0.00 -1.61

1,081,300 2,071,000 139,000 10,176,200 2,669,000 2,115,400 3,297,000 3,000

1,073,069.50 15,831,948.00 -89,068,763.50 -1,027,905.00 -14,000.00 155,000.00 -6,120,025.00 33,463,831.50

52 Weeks

High Low

STOCKS

High

Low

1.08 1.05 0.140 0.134 0.435 0.430 0.900 0.860 1.21 1.20 1.86 1.81 1.30 1.30 5.06 4.94 0.116 0.107 0.3400 0.3000 0.4600 0.4500 24.00 24.00 7.33 7.33 28.20 27.70 1.7 1.6 3.37 3.36 19.82 19.44 0.73 0.7 6.900 6.640 SERVICES 6.29 6.36 6.21 60.1 60.4 60 1.11 1.12 1.11 0.650 0.660 0.650 13.6 13.6 13.4 9.33 9.50 9.00 0.0920 0.0920 0.0900 4.03 4.07 3.98 85.95 87.2 84.4 10 10 10 6.59 6.66 6.59 943 959 950 2600 2648 2584 6.12 6.34 6.12 1.32 1.36 1.32 111 112.1 111.2 0.012 0.013 0.011 0.220 0.221 0.213 1.2800 1.2900 1.2700 9.22 9.40 9.30 2.97 3.04 2.94 1.22 1.30 1.29 2.00 2.12 2.00 50.00 50.50 46.00 0.670 0.690 0.660 1.99 2 1.98 6.69 6.8 6.69 0.355 0.350 0.350 0.485 0.500 0.460 18.7 18.9 17.88 4.50 4.50 4.44 110.00 115.00 110.00 19.00 19.06 18.50 2810.00 2830.00 2802.00 0.670 0.700 0.660 1.280 1.330 1.250 38.05 38.25 37.90 76.30 76.50 75.95 9.87 10.06 9.90 0.65 0.66 0.65 1.7 1.7 1.7 5.24 5.35 5.2 0.320 0.335 0.335 1.320 1.290 1.460 MINING & OIL 0.0051 0.0051 0.0050 2.40 2.55 2.55 6.69 6.67 6.58 0.250 0.250 0.250 0.94 0.95 0.94 0.78 0.78 0.78 7.00 7.02 6.90 1.7 1.73 1.63 0.315 0.315 0.305 0.232 0.232 0.228 0.0140 0.0140 0.0130 3.43 3.45 3.4 24.35 24.5 24.1 3.71 3.76 3.7 0.6600 0.6500 0.6500 2.0700 2.0700 2.0400 0.0110 0.0120 0.0110 6.38 6.48 6.27 1.98 2.040 1.980 0.014 0.015 0.014 142.00 143.00 141.70 11.52 11.8 11 PREFERRED 61 61.2 61 528 529 528 6.12 6.21 6.12 1.12 1.12 1.1 111 110 110 1048 1050 1048 75.55 76 75.55 85 84.9 84.9 88 89.85 88 WARRANTS & BONDS 3.850 4.000 3.710

Net Foreign

Change Volume

Trade/Buying

1.48 0.201 0.98 1.09 2.25 1.87 1.8 4.88 0.180 0.470 0.72 27 8.54 31.8 2.29 3.6 20.6 1.02 8.59

0.97 0.083 0.445 0.85 1.4 1.42 1.19 2.75 0.090 0.325 0.39 23 2.57 21.35 1.64 3.08 15.08 0.69 5.69

Cityland Dev. À’ 1.06 Crown Equities Inc. 0.137 Cyber Bay Corp. 0.450 Empire East Land 0.860 Global-Estate 1.21 Filinvest Land,Inc. 1.86 Interport À’ 1.29 Megaworld Corp. 4.82 MRC Allied Ind. 0.115 Phil. Estates Corp. 0.2900 Phil. Realty À’ 0.4850 Phil. Tob. Flue Cur & Redry 24.00 Primex Corp. 7.2 Robinson’s Land `B’ 28.00 Rockwell 1.68 Shang Properties Inc. 3.36 SM Prime Holdings 19.58 Sta. Lucia Land Inc. 0.72 Vista Land & Lifescapes 6.850

1.08 0.134 0.430 0.890 1.21 1.82 1.30 4.99 0.116 0.3150 0.4500 24.00 7.33 28.05 1.68 3.37 19.44 0.72 6.850

1.89 -2.19 -4.44 3.49 0.00 -2.15 0.78 3.53 0.87 8.62 -7.22 0.00 1.81 0.18 0.00 0.30 -0.72 0.00 0.00

30,000 8,410,000 1,310,000 165,000 819,000 10,402,000 50,000 37,451,000 440,000 930,000 100,000 300 18,700 1,664,500 1,364,000 22,000 46,815,700 1,096,000 16,980,000

26,900.00

10.5 66 1.44 1.09 12.46 15.82 0.1460 4.61 99.1 12.3 9 1700 2090 8.41 1.97 119.5 0.017 0.8200 2.2800 12.28 2.85 2.2 3.2 5.9 1.97 2.46 15.2 0.62 1.040 22.8 6.41 110.2 14 3486 0.710 2.28 48.5 90.1 11.6 0.87 2.95 10.2 0.490 1.6

1.97 32.5 1 0.6 10 9.61 0.0770 2.95 46.55 10.14 5.88 830 1600 5.95 1.36 105 0.012 0.036 1.200 6.5 1.69 1.1 2 1.05 0.490 1.8 8.7 0.34 0.37 14.54 3 79 4.39 2726 0.380 0.32 31.45 60.55 7.59 0.63 1.71 6.45 0.305 1.04

2GO Group’ ABS-CBN Acesite Hotel APC Group, Inc. Asian Terminals Inc. Bloomberry Boulevard Holdings Calata Corp. Cebu Air Inc. (5J) Centro Esc. Univ. DFNN Inc. FEUI Globe Telecom GMA Network Inc. Harbor Star I.C.T.S.I. IP E-Game Ventures Inc. Island Info ISM Communications Leisure & Resorts Liberty Telecom Lorenzo Shipping Macroasia Corp. Manila Broadcasting Manila Bulletin Manila Jockey Melco Crown MG Holdings NOW Corp. Pacific Online Sys. Corp. PAL Holdings Inc. Phil. Seven Corp. Philweb.Com Inc. PLDT Common PremiereHorizon Premium Leisure Puregold Robinsons RTL SSI Group STI Holdings Transpacific Broadcast Travellers Waterfront Phils. Yehey

6.3 60 1.11 0.650 13.4 9.00 0.0920 4.03 85.45 10 6.66 959 2586 6.30 1.36 111.9 0.011 0.213 1.2800 9.30 3.00 1.30 2.00 49.80 0.690 2 6.69 0.350 0.500 18.9 4.50 110.00 19.02 2802.00 0.700 1.300 38.00 75.95 9.90 0.65 1.7 5.28 0.335 1.320

0.16 -0.17 0.00 0.00 -1.47 -3.54 0.00 0.00 -0.58 0.00 1.06 1.70 -0.54 2.94 3.03 0.81 -8.33 -3.18 0.00 0.87 1.01 6.56 0.00 -0.40 2.99 0.50 0.00 -1.41 3.09 1.07 0.00 0.00 0.11 -0.28 4.48 1.56 -0.13 -0.46 0.30 0.00 0.00 0.76 4.69 -9.59

66,500 -58,577.00 3,630 30,000 794,000 81,200 0.00 8,313,900 -24,242,128.00 1,370,000 186,000 355,170 12,647,684.00 2,000 15,500 1,180 54,445 -31,022,030.00 269,300 330,000 1,185,650 45,989,060.00 199,200,000 8,060,000 -63,890.00 640,000 39,000 18,600.00 122,000 -26,910.00 4,000 27,000 4,180 4,000 70,000 1,124,100 -3,519,090.00 100,000 630,000 51,500.00 1,100 8,000 39,220 -98,720.00 159,700 -133,000.00 125,255 -138,838,820.00 5,131,000 37,749,000 2,070,410.00 5,200,900 97,281,880.00 1,171,580 -25,008,538.00 4,158,700 22,729,003.00 2,166,000 -1,399,640.00 17,000 3,874,600 2,068,758.00 10,000 10,000

0.0098 5.45 17.24 0.330 1.2 1.73 10.98 4.2 0.48 0.455 0.023 8.2 49.2 4.27 1.030 3.06 0.020 12.88 10.42 0.040 420 9

0.0043 1.72 8.65 0.236 0.61 0.78 5.99 1.08 0.330 0.2130 0.014 3.660 20.2 2.11 0.365 1.54 0.012 7.26 2.27 0.015 115.9 3.67

Abra Mining Apex À’ Atlas Cons. À’ Basic Energy Corp. Century Peak Metals Hldgs Coal Asia Dizon Ferronickel Geograce Res. Phil. Inc. Lepanto À’ Manila Mining À’ Marcventures Hldgs., Inc. Nickelasia Nihao Mineral Resources Omico Oriental Peninsula Res. Oriental Pet. À’ Philex À’ PhilexPetroleum Philodrill Corp. À’ Semirara Corp. TA Petroleum

0.0051 2.55 6.61 0.250 0.94 0.78 7.00 1.68 0.315 0.229 0.0130 3.44 24.2 3.7 0.6500 2.0500 0.0120 6.29 1.98 0.015 142.00 11.1

0.00 6.25 -1.20 0.00 0.00 0.00 0.00 -1.18 0.00 -1.29 -7.14 0.29 -0.62 -0.27 -1.52 -0.97 9.09 -1.41 0.00 7.14 0.00 -3.65

101,000,000 -25,000.00 1,000 967,500 -3,954,319.00 20,000 18,000 170,000 11,300 14,164,000 1,040,600.00 730,000 2,550,000 55,900,000 176,000 -106,180.00 572,700 366,300.00 12,585,000 -196,760.00 81,000 143,000 60,800,000 1,091,200 -1,354,273.00 3,895,000 1,038,000.00 6,800,000 1,588,260 -33,639,903.00 600,200

70 525 8.21 12.28 111 1047 76.9 78.95 84.8

33 500 5.88 6.5 101 1011 74.2 74.5 75

ABS-CBN Holdings Corp. Ayala Corp. Pref ‘B2’ GMA Holdings Inc. Leisure and Resort MWIDE PREF PF Pref 2 SMC Preferred A SMC Preferred B SMC Preferred C

61 528 6.2 1.1 110 1050 75.75 84.9 88

0.00 0.00 1.31 -1.79 -0.90 0.19 0.26 -0.12 0.00

27,343 2,760 22,300 5,189,000 80 2,995 34,290 1,500 20,110

6.98

3.890

1.04

342,000

272,300.00

10.96 15 88 12.88

0.8900 LR Warrant SME 2.4 Double Dragon 3.5 Makati Fin. Corp. 13.5 IRipple E-Business Intl 5.95 Xurpas

0.00 15.16 -2.89 1.45

1,183,200 700 130 1,396,300

855,274.00

130.7

105.6 First Metro ETF

0.16

9,530

366,000.00 -13,888,640.00 -61,080,600.00 12,600.00

MST

Trading Summary FINANCIAL INDUSTRIAL HOLDING FIRMS PROPERTY SERVICES MINING & OIL GRAND TOTAL

SHARES 12,010,844 102,004,480 90,500,391 150,407,054 291,861,941 263,966,527 913,341,097

-2,121,309.50 900.00

3,153,035.00 65,351,747.00 142,500.00 -4,709,734.50

49,287,860.00

1,261,000.00 3,209,126.00 137,305.00 -371,200.00 154,340.00

120,332.00 -2,397,530.00 -33,517,636.00 74,114,640.00 5,549,540.00

-45,565,350.00 -578,268.50

-60,000.00 -43,386,413.00

4,950.00 -282,070.00

-32,950.00 20,916,924.00

9,839,440.00 1,310,742.00 379,600.00 -522,990.00 26,860.00 -33,970,150.00

27,200.00 -14,360.00 130,900.00 179,620,170.00 -132,410.00

-12,134,929.50 26,381,505.00 2,031.00

97,173,790.00 12,342,123.00 -20,559,450.00 495,000.00 84,464,455.00

83,395,662.50

5,713,672.00

2,721,994.00

32,055,030.00

-638,620.00 2,140,360.00 Err:522 125,000.00

-6,536.00 -69,000.00 80,600.00 -120,422,035.00 -779,310.00 -4,462,936.00 1,472,980.00

9.8 9.8 9.72 9.8 5.54 6.38 5.51 6.38 67.4 65.45 59 65.45 11.04 11.24 11.02 11.2 EXCHANGE TRADED FUNDS 123.8 124.4 123.9 124

T op g ainerS VALUE 1,211,465,229.53 1,795,231,975.6432 1,980,365,181.726 1,743,298,197.61 1,507,202,418.57 341,753,484.678 8,607,628,853.7532

STOCKS

FINANCIAL 1,741.23 (UP) 1.64 INDUSTRIAL 11,611.25 (UP) 22.68 HOLDING FIRMS 6,824.47 (UP) 13.00 PROPERTY 3,049.91 (DOWN) 33.65 SERVICES 2,091.29 (DOWN) 4.12 MINING & OIL 13,777.91 (DOWN) 63.49 PSEI 7,601.17 (DOWN) 5.69 All Shares Index 4,351.39 (DOWN) 0.79 Gainers: 76 Losers: 76; Unchanged: 50; Total: 202

-12,328,590.00 478,365,358.00 -83,610,332.00

-11,522,900.00

6,160.00 640,900.00 4,400.00 355,270.00

6,234,100.00

T op L oSerS Close (P)

Change (%)

STOCKS

Close (P)

Change (%)

Bogo Medelin

60.5

17.48

Yehey

1.320

-9.59

Makati Fin. Corp.

6.38

15.16

IP E-Game Ventures Inc.

0.011

-8.33

Vivant Corp.

25.50

12.83

Forum Pacific

0.217

-7.66

Oriental Pet. `A'

0.0120

9.09

Phil. Realty `A'

0.4500

-7.22

Phil. Estates Corp.

0.3150

8.62

Manila Mining `A'

0.0130

-7.14

Philodrill Corp. `A'

0.015

7.14

Union Bank

59.00

-7.09

Lorenzo Shipping

1.30

6.56

Prime Orion

1.480

-6.33

San Miguel Corp `A'

64.45

6.27

Mabuhay Vinyl

2.73

-5.86

Apex `A'

2.55

6.25

Cyber Bay Corp.

0.430

-4.44

Waterfront Phils.

0.335

4.69

TA Petroleum

11.1

-3.65

SATURDAY: JUNE 20, 2015

BUSINESS business@thestandard.com.ph extrastory2000@gmail.com

Security Bank bullish on profit By Julito G. Rada

SECURITY Bank Corp., one of the country’s largest lenders, expects net income to be higher this year, despite the challenging second half amid the volatile financial markets. “The second half will definitely be challenging because of volatility. That is why banks, including ourselves, really need to earn money the old-fashioned way. [That is] get low-cost deposits and lend it,” newly appointed Security Bank president and chief executive Alfonso Salcedo said at the sidelines of the bank’s customer appreciation party held in Makati City Thursday evening. Salcedo said financial markets volatility stemmed from the ex-

pected US Fed rate hike before the end of the year. “But I would expect higher profits this year [compared to a year ago]…. although it is hard to tell because of the Treasury component…Anything can happen there…So there is a greater challenge for the bank’s treasury business,” Salcedo said. “So I expect profits this year to be in line with our target,” Salcedo said. He did not mention the bank’s net income guidance for 2015.

Security Bank posted a 135-percent growth in net income in the first quarter this year to P3.36 billion from a year ago, translating in a 28-percent return on shareholders’ equity. The bank registered robust growth in core businesses, with loan growth of 20 percent yearon-year to P199 billion and deposit growth of 17 percent to P247 billion. Total assets stood at P409 billion as of March 31, up by 8 percent from a year ago. Interest income increased 15-percent year-on-year and 8-percent quarter-on-quarter. Interest expense rose 47-percent year-on-year and 11-percent quarter-on-quarter, reflecting the expected effect of the P10-billion Basel III compliant Tier 2 capital issued in July 2014 and the $300-million senior unsecured notes

issued in January 2015. As a result, net interest income grew 4 percent year-on-year and 7-percent quarter-on-quarter to P2.9 billion. Net interest margin was 3.3 percent for the period, same level as in fourth quarter of 2014 and versus the 3.4 percent average in 2014. Core revenues, comprising of net interest income, fee-based income and trading gains attributable to customer flows grew 9 percent year-on-year to P3.6 billion. Security Bank had a network of 257 branches and 516 automated teller machines as of March 31, 2015. The integration of the 39 branches of thrift bank subsidiary Security Bank Savings into the branch network of Security Bank was successfully completed in March 2015, after securing regulatory approval in January 2015.

MLQU expansion. New San Jose Builders Inc. will soon start the construction of Manuel L. Quezon University in Balanga City, Bataan with the acquisition of a two-hectare lot from Real Bank. Shown signing the contract at Victoria Towers, Timog Avenue, Quezon City are (seated from left) Dionisio Toreja of Nativeland Development Corp., MLQU vice president for planning and development and academic affairs Vinci Nicholas Villaseñor, MLQU president Isagani Germar, NSJBI chairman Jose Acuzar and Real Bank president Carol Ros.

PetroEnergy allots P175m for Tarlac solar plant By Alena Mae S. Flores PETROENERGY Resources Corp. has reallocated the P175million proceeds from a recent stock rights offering to fund the 50-megawatt Tarlac solar plant instead of the second phase of the 36-megawatt Nabas wind power project in Aklan. The company said the P175million proceeds were originally intended for the Nabas wind project phase 2 in the fourth quarter, but PetroEnergy decided to use it for the Tarlac solar project, which would be built soon. The company said it would disburse the amount starting June this year to March 2016. “The solar project is ready for immediate development and could be put into commer-

cial operations within a shorter period compared to phase 2 of the Nabas wind power project, which could only commence development by the fourth quarter of 2015 and be put into commercial operation by the fourth quarter of 2016,” PetroEnergy said in a disclosure to the Philippine Stock Exchange. Phase 1 of Nabas wind power project is expected to start commercial operations this year. The project, however, has yet to receive its certificate of compliance from the Energy Regulatory Commission to avail of the feedin tariff of P8.53 per kilowatthour. A possible 14-MW expansion of the Nabas wind project is subject to regulatory approval of a protected area.

“For this reason, the company’s management, with the approval of the board of directors, decided to reallocate the SRO proceeds previously intended for the Nabas project for the immediate development of the solar project,” it said. PetroGreen Energy Corp., PetroEnergy’s 90-percent subsidiary, signed with the Energy Department in March the service contract for a 486-hectare contact area of the 50-MW solar project in Tarlac. PetroEnergy recently sold its 10-percent stake in PetroGreen Energy Corp., its renewable energy arm to EEI Power Corp., a subsidiary of listed EEI Corp. to raise funds for renewable energy projects. “After the conduct of due dili-

gence, the proposed site was found to have all positive attributes for a solar farm,” PetroEnergy said. The solar power project is near Hacienda Luisita, Tarlac. The site has a flat terrain, with no shading from trees or nearby topographies, and is strategically located near existing access roads, power distribution lines and substations. PetroGreen said it planned to develop the solar facility in stages but could expedite its work program based on the uptake of the 500-MW solar feed-in-tariff allocation. PetroEnergy president Francisco Delfin Jr. earlier said he expected to complete the feasibility study of the planned solar project in Tarlac by the third quarter this year.

Stocks retreat; MPIC climbs

STOCKS retreated Friday, ending a three-day gain, as the Chinese market tumbled on tight liquidity and amid mounting fears about Greece’s future in the eurozone. The Philippine Stock Exchange index, the 30-company benchmark, shed 5 points, or 0.1 percent, to close at 7,601.17 Friday. Despite Friday’s loss, the gauge was up 1.4 percent this week and 5.1 percent since the start of the year. The heavier index, representing all shares, ended flat at 4,351.39, on a value turnover of P8.6 billion. Gainers matched losers at 76 apiece, while 50 issues were unchanged. Metro Pacific Investments Corp., an infrastructure conglomerate, emerged as the biggest gainer among the 20 most active stocks, as it climbed 2.6 percent to P4.70. Security Bank Corp., which formally introduced Alfonso Salcedo as the new president and chief executive, gained 2.5 percent to P165. GT Capital Holdings Inc., the investment company of tycoon George Ty, added 1.7 percent to close at P1,390. Oil refiner and distributor Petron Corp. rose 1.4 percent to P8.62. Meanwhile, Asian markets mostly rose Friday after a record close on Wall Street while the euro continued to defy mounting fears about Greece’s future in the eurozone but Shanghai plunged more than six percent on tight liquidity. The yen edged down after the Bank of Japan held off on any new stimulus measures at its latest policy meeting despite flatlining inflation. Tokyo ended 0.91 percent higher, adding 183.42 points to 20,174.24, Sydney lifted 1.31 percent, or 72.1 points, to 5,597 and Seoul gained 0.25 percent, or 5.08 points, to 2,046.96. In late trade, Hong Kong advanced 0.42 percent, while Wellington rose 0.56 percent, or 32.06 points, to close at 5,781.76. But Shanghai tumbled 6.42 percent, or 306.99 points, to 4,478.36. Taipei was closed for a public holiday. Wall Street’s three main indexes rallied, with analysts attributing the gains mostly to the Federal Reserve’s policy announcement and pledge Wednesday from chair Janet Yellen that it will only gradually raise interest rates. The comments eased worries about a sharp rise in borrowing rates in the world’s top economy and key driver of global growth. With AFP

SATURDAY: JUNE 20, 2015

BUSINESS business@thestandard.com.ph extrastory2000@gmail.com

Global PH brand.

Trade Undersecretary Ponciano Manalo, Jr. (center) confers with Philippine Franchise Association chairman Emeritus Samie Lim (left) and Senator Cynthia Villar during the Franchise Asia Philippines 2015 International Conference on May 10, 2015 at SMX Convention Center in Pasay City. Manalo said PFA’s franchising activities opened the door wide to a truly global Philippine brand, recognized for quality, consistent product performance and availability, as well as guarantee a truly competitive environment where being signiﬁcantly better than the competition is paramount.

IN BRIEF BoP deficit in May THE country’s balance of payments posted a deficit of $58 million in May this year, a turnaround from the $373-million surplus a year ago, data from the Bangko Sentral ng Pilipinas on Friday show. “This resulted mainly from debt servicing by both the public and private sectors even as remittances and BPO [business process outsourcing] revenues remain strong,” Bangko Sentral Deputy Governor Diwa Guinigundo said in a text message. The May figure was also a reversal of the $380-million surplus registered in April 2015. Despite the May deficit, the BoP position in the first five months remained in surplus at $1.199 billion, a sharp turnaround from the $4.1-billion deficit in the same period last year. “We continue to be optimistic we would sustain a BoP surplus for 2015,” Guinigundo said. Julito G. Rada

Megaworld bullish MEGAWORLD Corp., the property unit of business tycoon Andrew Tan, has increased its rental income target in 2015 to P9 billion from the original estimate of P8 billion amid an aggressive rollout of office buildings, hotels and commercial developments. Megaworld executive director Kingson Sian said in an interview Friday following the annual stockholders’ meeting the company would end the year with close to one million square meters of leasable space. The company plans to add 300,000 square meters of gross floor area in its overall rental portfolio. Sian said the company initially targeted rental income to hit P8 billion this year from P7.1 billion in 2015. But the company sped up some projects and pre-leased some properties, allowing it to raise the target rental income in 2015 to P9 billion and keep the P10 billion rental income target for 2016. Megaworld is opening seven new malls and commercial centers in its five township developments. Jenniffer B. Austria

Sta. Lucia bond sale STA. Lucia Land Inc. is raising as much as P5 billion through a bond sale to ﬁnance various real estate projects. Sta. Lucia said in a disclosure to the stock exchange its board approved the issuance of corporate or retail binds with a principal amount of between P3 billion and P5 billion subject to compliance with the regulatory requirements. The bonds will be registered with the Securities and Exchange Commission and Philippine Dealing & Exchange Corp. The property ﬁrm in April said it planned to raise as much as P6 billion in debt for land bank acquisitions, acceleration of ongoing projects and funding of new projects. Jenni ffer B. Austr ia

Aboitiz Power signs P32-b loan package By Alena Mae S. Flores

THERMA Visayas Inc., a unit of Aboitiz Power Corp., on Friday signed a P31.97-billion loan agreement with a consortium of banks to finance the construction of a 300-megawatt coal-fired power plant in Cebu province. “The proceeds of the loan will be used to finance the construction of the 300-MW coal-fired power plant to be built at Barangay Bato, Toledo City, Cebu,” Aboitiz Power said in a disclosure to the Philippine Stock Exchange. First Metro Investment Corp. acted as lead arranger and sole bookrunner, while BDO Unibank Inc.—Trust and Investments Group served as trustee and project loan facility agent. Therma Visayas is a joint venture between Aboitiz Power and Vivant Corp., through Vivant Integrated Generation Co. and

Vivant Energy Corp. The coal-fired power plant is expected to be completed in early 2018. The project will create over 2,500 new jobs during construction, and over 150 new permanent jobs during operation. Therma Visayas last year signed an engineering, procurement and construction contract with Hyundai Engineering Co. Ltd. snd Galing Power Energy Co. Inc. to build the power facility. s issued in March this year. Therma Visayas president and chief operating officer Benjamin Cariaso Jr. earlier said the power

plant would address the energy needs of Cebu and the Visayas for reliable base load power. “Cebu and the Visayas region have achieved a rapid growth in economy and in order to sustain this momentum, reliable power is needed,” Cariaso said. “Therma Visayas will improve the region’s energy mix through dependable base load power, securing the energy needs of the Visayas region,” he said. Renewable energy project applications in Mindanao, meanwhile, have reached nearly 3,000 megawatts as of June this year, reflecting a growing interest for clean energy investments in the region. The One Stop Facilitation and Monitoring Center, which reviews pending renewable energy projects in Mindanao, received 59 new applications, adding to a total of 290 with a combined capacity of nearly 3,000 MW. The new renewable energy project applications will have

a combined capacity of 578.92 MW, if completed and fully operational. The center in May this year reported 231 applications with a combined capacity of 2,419.17 MW. “The projects are spread across hydro, geothermal, solar, and biomass. The bulk of the pending RE power project applications, however, are hydropower with a total of 242 projects and a combined potential capacity of 2,147.71 MW,” said Romeo Montenegro, director for investment promotions and public affairs office of the Mindanao Development Authority. Montenegro, who also oversees, the operations of the center, said majority of the hydropower projects were located in Northern Mindanao. He said Mindanao’s power supply mix would shift in 2017 to 45 percent renewable and 67 percent non-renewable energy from the current 55 percent RE and 33 percent non-RE.

PAL adding two more B777s to boost ﬂeet to 78 By Darwin G. Amojelar PHILIPPINE Airlines is adding two more B777-300ERs to its fleet to further strengthen the airline’s long-haul operations. The B777s, which will bring the flag carrier’s overall fleet count to 78, will be acquired by way of an agreement between leasing firm Intrepid Aviation and PAL. The orders are in addition to the six 777-300ERs the flag carrier currently operates, including one leased by Intrepid Aviation. PAL’s announcement came

after rival Cebu Pacific ordered 16 ATR72-600 with options to acquire an additional 10 ATR72600 from ATR, the European Turboprop aircraft manufacturer, for $673 million, based on current list prices. “We celebrate our growing partnership with both Boeing and Intrepid Aviation,” PAL president and chief operating officer Jaime Bautista said in a statement. “These additional 777-300ERs will help us continue to expand our long -haul markets efficiently and economically, while enabling

us to provide passengers our trademark Filipino service in the modern, state-of-the-art 777,” he added. Intrepid Aviation and aircraft manufacturer the Boeing Co. welcomed the lease of both planes by PAL. “We are very pleased to expand our relationship with Philippine Airlines and to work with Boeing to provide PAL with such an outstanding airplane,” said Intrepid Aviation president and chief executive Franklin Pray. “The economics and capabilities of the 777-300ER continue

to make it very attractive for our customers who are looking for growth potential,” Pray added. Boeing senior vice president for global sales and marketing John Wojick said his company had a long relationship with Philippine Airlines. “We are delighted to partner with Intrepid Aviation to provide additional 777-300ERs for PAL’s growing fleet,” Wojick said. He said PAL’s commitment to the 777-300ER was a testament to the airplane’s proven fuel efficiency, performance and awardwinning passenger interior.

S at u r d ay : J u N E 2 0 , 2 0 1 5

cESar barrioquiNto EDITOR

editorial@thestandard.com.ph

Suspect in church massacre arrested CHARLESTON—US police arrested a white high school dropout Thursday suspected of carrying out a gun massacre at one of America’s oldest black churches, the latest deadly assault to fuel simmering racial tensions. Authorities detained 21-yearold Dylann Roof, shown wearing the flags of defunct white supremacist regimes in pictures taken from social media, after nine churchgoers were shot dead during a Bible study class Wednesday night. He was caught at a traffic stop in North Carolina and flown back just hours later to Charleston, South Carolina, the scene of the slaughter in the Emanuel African Methodist Episcopal Church. Television footage showed the slender suspect boarding a small aircraft with his hands tied and wearing a black-and-white striped prison uniform. Booking photos released by Charleston County jail showed a sullen, boyish suspect with a pudding-bowl haircut. The carnage was the worst at a US place of worship in decades and recalled the darkest periods of US history, in a church once burned to the ground after a failed slave revolt. Charleston Police Chief Gregory Mullen said: “I do believe it was a hate crime.” A reported friend of the accused, 21-year-old Dalton Tyler, told ABC News that Roof had spoken in support of racial segregation and had “said he wanted to start a civil war.” US media reported that Roof had been arrested in recent months on charges related to drugs and trespassing at a mall. In Washington, a clearly frustrated President Barack Obama said the “senseless murders” showed the United States would have to come to grips with its gun culture. “At some point, we as a country will have to reckon with the fact that this type of mass violence does not happen in other advanced countries,” Obama said. AFP

world IS-controlled model city described as a living hell BEIRUT—It’s called Heaven Square, but after the Islamic State group started using the roundabout in Raqa for gruesome public executions it earned a new name: Hell Square.

Onstage. Zac Brown performs onstage at the Songwriters Hall Of Fame 46th Annual Induction And Awards at the Marriott Marquis Hotel on June 18 in New York City. AFP

In the year since the jihadist group announced its “caliphate” last June, its de facto Syrian capital of Raqa has been transformed into a macabre metropolis. Human heads are displayed on spikes at the central roundabout and crucified bodies hang for days to terrorize local residents, said Abu Ibrahim Raqqawi, a Raqa resident and anti-IS activist. “From the first moment of its control over Raqa, IS adopted a policy of horror and terror, resorting to executions, beheadings, cutting off hands and legs, and crucifixion,” said Raqqawi, who uses a pseudonym. He belongs to the “Raqa is Being Slaughtered Silently” underground activist group, which documents IS abuses in the northern Syrian city and surrounding province. Activists were among IS’s first targets in Raqa, but Raqqawi and the group’s members have continued to work, providing a rare window into life in one of IS’s bastions. Raqa was the first Syrian provincial capital to fall from regime control when rebels seized it in March 2013. But IS soon routed those rebels and moved quickly to establish a “model city” under its harsh interpretation of Islamic law, said researcher and writer Hisham al-Hashimi. IS wants to run Raqa “like a central government, with police, services, justice and education,” he said. The group has taken over all levels of civil administration, rewriting school curriculums, establishing Islamic courts and creating police units the male “Hesba” force and the female “Khansa Brigades” to implement Islamic law. It has focused heavily on education, closing the city’s schools and universities for a full year while it developed new courses. Mathematics and English are still on the menu, but little else of the old curriculum remains; courses in jurisprudence, jihad and the Koran have been added. “What’s the point of physics, chemistry, history or statistics... when we’re learning medicine?” says Abu Abdul Rahman al-Shami, the head of Raqa’s hospital, in an IS-produced video about life in the city. AFP

Study: Most kangaroos are left-handed WASHINGTON—Kangaroos tend to be lefties, according to a study Thursday that sheds new light on the capacity for mammals, particularly those that walk upright, to prefer one paw over the other. The study was published in the journal Current Biology. Lead researcher Yegor Malashichev of Saint Petersburg State University in Russia studied kangaroos for the first time, after previously focusing on handedness in jumping frogs, walking frogs and gray short-tailed opossums. Wild kangaroos in Australia and Tasmania showed “a natu-

ral preference for their left hands when performing particular actions grooming the nose, picking a leaf, or bending a tree branch, for example,” said the study. “Left-handedness was particularly apparent in eastern grey and red kangaroos.” When it came to red-necked wallabies, they appeared to favor their left hand for some tasks like those involving fine motor skills and their right for others that used more physical strength. “According to a special-assessment scale of handedness adopted for primates, kangaroos pulled down the highest grades,”

said Malashichev. “We observed a remarkable consistency in responses across bipedal species in that they all prefer to use the left, not the right, hand.” A key reason why researchers were surprised at the finding was that kangaroo brains lack the same neural circuit that bridges the left and right hemispheres of the brain seen in other mammals. “What we observed in reality we did not initially expect,” Malashichev said. “But the more we observed, the more it became obvious that there is something really new and interesting in the wild.” AFP

Restive Sinabung. Ash from Mount Sinabung volcano fills the

sky over an abandoned church during another eruption in Karo, in Indonesia’s North Sumatra province, on June 19. Sinabung rumbled back to life in 2013 after a period of inactivity, and since then around 10,000 people have had to evacuate their homes. AFP

SAUDI ARABIAN AIRLINES (SAUDIA) GENERAL CONDITIONS OF CARRIAGE 5.1.

Introduction “Condition of carriage” means the terms and conditions established by an air carrier in respect of its carriage, and are filed as applicable tariff rules. The condition of carriage spell out the various benefits and limitation associated with the air transportation being provided. These benefits and limitations, along with price, constitute a “ contract for carriage “ between the air carrier and the user.

5.2. Definition - "AGREED STOPPING PLACES" means those places, except the place of departure and the place of destination, set out in the Ticket or shown in our timetables as scheduled stopping places on your r\oute. - "AIRLINE DESIGNATOR CODE" means the two characters or three letters which identify particular air carriers. - "AUTHORISED AGENT" means a passenger sales agent who has been appointed by us to represent us in the sale of air transportation on our services. - "BAGGAGE" means your personal property accompanying you in connection with your trip. Unless otherwise specified, it consists of both your Checked and Unchecked Baggage. - "BAGGAGE CHECK" means those portions of the Ticket which relate to the carriage of your Checked Baggage. - "BAGGAGE IDENTIFICATION TAG" means a document issued solely for identification of Checked Baggage. - "CARRIER" means an air carrier other than ourselves, whose airline designator code appears on your Ticket or on a Conjunction Ticket. - "CHECKED BAGGAGE" means Baggage of which we take custody and for which we have issued a Baggage Check. - “CHECK-IN DEADLINE" means the time limit specified by the airline by which you must have completed check-in formalities and received your boarding pass, or if no time is indicated, not later than 1 hour before the published departure time. - "CONDITIONS OF CONTRACT" means those statements contained in or delivered with your Ticket or Itinerary/Receipt, identified as such and which incorporate, by reference, these Conditions of Carriage and notices. - “FORCE MAJEURE" means unusual and unforeseeable circumstances beyond your control, the consequences of which could not have been avoided even if all due care had been exercised. - "ITINERARY/RECEIPT" means a document or documents we issue to Passengers travelling on Electronic Tickets that contains the Passenger’s name, flight information and notices. - "PASSENGER" means any person, except members of the crew, carried or to be carried in an aircraft pursuant to a Ticket being issued. (See also definition for "you", "your" and "yourself"). - "PASSENGER COUPON" or "PASSENGER RECEIPT" means that portion of the Ticket issued by us or on our behalf, which is so marked and which ultimately is to be retained by you. - “SPECIAL DRAWING RIGHTS" are an international unit of account, defined by the International Monetary Fund, based upon the values of several leading currencies. The currency values of the Special Drawing Right fluctuate and are re-calculated each banking day. These values are known to most commercial bankers and are reported regularly in leading financial journals. - "STOPOVER" means a scheduled stop on your journey, at a point between the place of departure and the place of destination. - "TARIFF" means the published fares, charges and/or related Conditions of Carriage of an airline filed, where required, with the appropriate authorities. - "TICKET" means either the document entitled "Passenger Ticket and Baggage Check" or the Electronic Ticket, in each case issued by us or on our behalf, and includes the Conditions of Contract, notices and Coupons. - "UNCHECKED BAGGAGE" means any of your Baggage other than Checked Baggage. 5.3.

5.4.

5.5.

5.6.

authorize us to retain and use such data and to transmit it to our own offices, Authorized Agents, government agencies, other Carriers or the providers of the above-mentioned services. 5.6.4 Seating - We will endeavor to honour advance seating requests. However, we cannot guarantee any particular seat. We reserve the right to assign or reassign seats at any time, even after boarding of the aircraft. This may be necessary for operational, safety or security reasons. 5.6.5 Reconfirmation Of Reservations - Onward or return reservations may be subject to the requirement to reconfirm the reservations within specified time limits. We will advise you when we require reconfirmation, and how and where it should be done. If it is required and you fail to reconfirm, we may cancel your onward or return reservations. However, if you advise us you still wish to travel, and there is space on the flight, we will reinstate your reservations and transport you. If there is no space on the flight we will use reasonable efforts to transport you to your next or final destination. - You should check the reconfirmation requirements of any other Carriers involved in your journey with them. Where it is required, you must reconfirm with the Carrier whose code appears for the flight in question on the Ticket.

Applicability 5.3.1. General - Except as provided in Articles 5.2.4 and 5.2.5, our Conditions of Carriage apply to all flights, or flight segments, in respect of which we have a legal liability to you. 5.3.2. Charter Operations - If carriage is performed pursuant to a charter agreement, these Conditions of Carriage apply only to the extent they are incorporated, by reference or otherwise, in the charter agreement or the Ticket. 5.3.3. Code-shares - On some services we may have arrangements with other carriers known as "Code shares". This means that even if you have a reservation with us and hold a ticket where our name or airline designator code is indicated as the carrier, another carrier may operate the aircraft. If such arrangements apply we will advise you of the carrier operating the aircraft at the time you make a reservation. 5.3.4. Overriding Law - These Conditions of Carriage are applicable unless they are inconsistent with our Tariffs or applicable law in which event such Tariffs or laws shall prevail. If any provision of these Conditions of Carriage is invalid under any applicable law, the other provisions shall nevertheless remain valid. 5.3.5. Conditions Prevail Over Regulations - Except as provided in these Conditions of Carriage, in the event of inconsistency between these Conditions of Carriage and any other regulations we may have, dealing with particular subjects, these Conditions of Carriage shall prevail. Tickets 5.4.1. General Provisions - We will provide carriage only to the Passenger named in the Ticket, and you may be required to produce appropriate identification. -A Ticket is not transferable, except as required by any locally applicable laws. - Some Tickets are sold at discounted fares which may be partially or completely nonrefundable. You should choose the fare best suited to your needs. You may also wish to ensure that you have appropriate insurance to cover instances where you have to cancel your Ticket. - If you have a Ticket, as described in 3.1.3 above, which is completely unused, and you are prevented from travelling due to Force Majeure, provided that you promptly advise us and furnish evidence of such Force Majeure, we will provide you with a credit of the non-refundable amount of the fare, for future travel on us, subject to deduction of a reasonable administration fee. - The Ticket is and remains at all times the property of the issuing carrier. Except in the case of an Electronic Ticket, you shall not be entitled to be carried on a flight unless you present a valid Ticket containing the Flight Coupon for that flight and all other unused Flight Coupons and the Passenger Coupon. In addition, you shall not be entitled to be carried if the Ticket presented is mutilated or if it has been altered otherwise than by us or our Authorized Agent. In the case of an Electronic Ticket, you shall not be entitled to be carried on a flight unless you provide positive identification and a valid Electronic Ticket has been duly issued in your name. - In case of loss or mutilation of a Ticket (or part of it) by you or non-presentation of a Ticket containing the Passenger Coupon and all unused Flight Coupons, upon your request we will replace such Ticket (or part of it) by issuing a new Ticket, provided there is evidence, readily ascertainable at the time, that a Ticket valid for the flight(s) in question was duly issued and you sign an agreement to reimburse us for any costs and losses, up to the value of the original ticket, which are necessarily and reasonably incurred by us or another carrier for misuse of the Ticket. We will not claim reimbursement from you for any such losses which result from our own negligence. The issuing carrier may charge a reasonable administration fee for this service, unless the loss or mutilation was due to the negligence of the issuing carrier, or its agent. - Where such evidence is not available or you do not sign such an agreement, the carrier issuing the new Ticket may require you to pay up to the full Ticket price for a replacement Ticket, subject to refund if and when the original issuing carrier is satisfied that the lost or mutilated Ticket has not been used before the expiry of its validity. If, upon finding the original Ticket before the expiry of its validity, you surrender it to the carrier issuing the new Ticket, the foregoing refund will be processed at that time. - ticket is valuable and you should take appropriate measures to safeguard it and ensure it is not lost or stolen. 5.4.2. Period of Validity - Except as otherwise provided in the Ticket, these Conditions, or in applicable Tariffs (which may limit the validity of a ticket, in which case the limitation will be shown on the Ticket) a Ticket is valid for: - one year from the date of issue; or - subject to the first travel occurring within one year from the date of issue, one year from the date of first travel under the Ticket. - When you are prevented from travelling within the period of validity of the Ticket because at the time you request reservations we are unable to confirm a reservation, the validity of such Ticket will be extended until we are able to confirm a reservation, or you may be entitled to a refund in accordance with Article 10. - If after having commenced your journey, you are prevented from travelling within the period of validity of the Ticket by reason of illness, we may extend the period of validity of your Ticket until the date when you become fit to travel or until our first flight after such date, from the point where the journey is resumed on which space is available in the class of service for which the fare has been paid. Such illness must be attested to by a medical certificate. When the flight coupons remaining in the Ticket, or in the case of an Electronic Ticket, the electronic coupon, involve one or more Stopovers, the validity of such Ticket may be extended for not more than three months from the date shown on such certificate. In such circumstances, we will similarly extend the period of validity of Tickets of other members of your immediate family accompanying you. - In the event of death of a Passenger in the course of a contract of carriage, the Tickets of persons accompanying the Passenger may be modified by waiving the minimum stay or extending the validity. In the event of a death in the immediate family of a Passenger who has commenced travel, the validity of the Passenger's Tickets and those of his or her immediate family who are accompanying the Passenger may likewise be modified. Any such modification shall be made upon receipt of a valid death certificate and any such extension of validity shall not be for a period longer than forty-five (45) Days from the date of the death. 5.4.3. Coupon Sequence and Use - The Ticket you have purchased is valid only for the transportation as shown on the Ticket, from the place of departure via any Agreed Stopping Places to the final destination. The fare you have paid is based upon our Tariff and is for the transportation as shown on the Ticket. It forms an essential part of our contract with you. The Ticket will not be honoured and will lose its validity if all the Coupons are not used in the sequence provided in the Ticket. - Should you wish to change any aspect of your transportation you must contact us in advance. The fare for your new transportation will be calculated and you will be given the option of accepting the new price or maintaining your original transportation as ticketed. Should you be required to change any aspect of your transportation due to Force Majeure, you must contact us as soon as practicable and we will use reasonable efforts to transport you to your next Stopover or final destination, without recalculation of the fare. - Should you change your transportation without our agreement, we will assess the correct price for your actual travel. You will have to pay any difference between the price you have paid and the total price applicable for your revised transportation. We will refund you the difference if the new price is lower but otherwise, your unused Coupons have no value. - Please be aware that while some types of changes will not result in a change of fare, others, such as changing the place of departure (for example, if you do not fly the first segment) or reversing the direction you travel, can result in an increase in price. Many special fares are valid only on the dates and for the flights shown on the Ticket and may not be changed at all, or only upon payment of an additional fee. - Each Flight Coupon contained in your Ticket will be accepted for carriage in the class of service on the date and flight for which space has been reserved. When a Ticket is originally issued without a reservation being specified, space may be later reserved subject to our Tariff and the availability of space on the flight requested. - Please be advised that in the event you do not show up for any flight without advising us in advance, we may cancel your return or onward reservations. However, if you do advise us in advance, we will not cancel your subsequent flight reservations. 5.4.4. Name and Address of Carrier - Saudia's name may be abbreviated in the ticket. Saudia's address shall be deemed to be the airport of departure shown opposite the first abbreviation of Saudia's name in the "Carrier" box in the ticket. Fares, Taxes, Fees and Charges 5.5.1. Fares - Fares apply only for carriage from the airport at the point of origin to the airport at the point of destination, unless otherwise expressly stated. Fares do not include ground transport service between airports and between airports and town terminals. Your fare will be calculated in accordance with our Tariff in effect on the date of payment of your ticket for travel on the specific dates and itinerary shown on it. Should you change your itinerary or dates of travel, this may change the fare to be paid. 5.5.2. Taxes, Fees and Charges - Applicable taxes, fees and charges imposed by government or other authority, or by the operator of an airport, shall be payable by you. At the time you purchase your Ticket, you will be advised of taxes, fees and charges not included in the fare, most of which will normally be shown separately on the Ticket. The taxes, fees and charges imposed on air travel are constantly changing and can be imposed after the date of Ticket issuance. If there is an increase in a tax, fee or charge shown on the Ticket, you will be obliged to pay it. Likewise, if a new tax, fee or charge is imposed even after Ticket issuance, you will be obliged to pay it. Similarly, in the event any taxes, fees or charges which you have paid to us at the time of Ticket issuance are abolished or reduced such that they no longer apply to you, or a lesser amount is due, you will be entitled to claim a refund. 5.5.3. Currency - Fares, taxes, fees and charges are payable in the currency of the country in which the Ticket is issued, unless another currency is indicated by us or our Authorized Agent at or before the time payment is made (for example, because of the non-convertibility of the local currency). We may at our discretion, accept payment in another currency. Reservations 5.6.1 Reservation Requirements - We or our Authorized Agent will record your reservation(s). Upon request we will provide you with written confirmation of your reservation(s). - Certain fares have conditions which limit or exclude your right to change or cancel reservations. 5.6.2 Ticketing Time Limits - If you have not paid for the Ticket prior to the specified ticketing time limit, as advised by us or our Authorized Agent, we may cancel your reservation. 5.6.3 Personal Data - You recognize that personal data has been given to us for the purposes of: making a reservation, purchasing a Ticket, obtaining ancillary services, developing and providing services, facilitating immigration and entry procedures, and making available such data to government agencies, in connection with your travel. For these purposes, you

5.7.

Check-in and boarding - Check-in Deadlines are different at every airport and we recommend that you inform yourself about these Check-in Deadlines and honour them. Your journey will be smoother if you allow yourself ample time to comply with the Check-in Deadlines. We reserve the right to cancel your reservation if you do not comply with the Check-in Deadlines indicated. We or our Authorized Agents will advise you of the Check-in Deadline for your first flight on us. For any subsequent flights in your journey, you should inform yourself of the Check-in Deadlines. Check-in Deadlines for our flights may be obtained from us or our Authorized Agents. If no time is indicated, Check-in Deadline is 1 hour before the published departure time. - You must be present at the boarding gate not later than the time specified by us when you check in. - We may cancel the space reserved for you if you fail to arrive at the boarding gate in time. - We will not be liable to you for any loss or expense incurred due to your failure to comply with the provisions of this Article.

5.8.

Refusal and limitation of carriage 5.8.1 Right to Refuse Carriage - In the reasonable exercise of our discretion, we may refuse to carry you or your Baggage if we have notified you in writing that we would not at any time after the date of such notice carry you on our flights. In this circumstance you will be entitled to a refund. We may also refuse to carry you or your Baggage if one or more of the following have occurred or we reasonably believe may occur: • such action is necessary in order to comply with any applicable government laws, regulations, or orders; • the carriage of you or your Baggage may endanger or affect the safety, health, or materially affect the comfort of other passengers or crew; • your mental or physical state, including your impairment from alcohol or drugs, presents a hazard or risk to yourself, to passengers, to crew, or to property; • you have refused to submit to a security check; • you have not paid the applicable fare, taxes, fees or charges; • you do not appear to have valid travel documents, may seek to enter a country through which you may be in transit, or for which you do not have valid travel documents, destroy your travel documents during flight or refuse to surrender your travel documents to the flight crew, against receipt, when so requested; • you present a Ticket that has been acquired unlawfully, has been purchased from an entity other than us or our Authorized Agent, or has been reported as being lost or stolen, is a counterfeit, or you cannot prove that you are the person named in the Ticket; • you have failed to comply with the requirements set forth in Article 3.3 above concerning coupon sequence and use, or you present a Ticket which has been issued or altered in any way, other than by us or our Authorized Agent, or the Ticket is mutilated; • you fail to observe our instructions with respect to safety or security; • you have previously committed one of the acts or omissions referred to above. 5.8.2 Special Assistance. • Acceptance for carriage of unaccompanied minors, incapacitated persons, pregnant women, persons with illness or other people requiring special assistance is subject to prior arrangement with us. Passengers with disabilities who have advised us of any special requirements they may have at the time of ticketing, and been accepted by us, shall not subsequently be refused carriage on the basis of such disability or special requirements.

5.9.

Baggage 5.9.1 Free Baggage Allowance. - You may carry some Baggage, free of charge, subject to our conditions and limitations, which are available upon request from us or our Authorized Agents. 5.9.2 Excess Baggage. - You will be required to pay a charge for carriage of Baggage in excess of the free Baggage allowance. These rates are available from us upon request. 5.9.3 Items Unacceptable As Baggage - You must not include in your Baggage: 5.9.3.1. items which are likely to endanger the aircraft or persons or property on board the aircraft, such as those specified in the International Civil Aviation Organization (ICAO) Technical Instructions for the Safe Transport of Dangerous Goods by Air and the International Air Transport Association (IATA) Dangerous Goods Regulations, and in our regulations (further information is available from us on request); 5.9.3.2. items the carriage of which is prohibited by the applicable laws, regulations or orders of any state to be flown from or to; 5.9.3.3. items which are reasonably considered by us to be unsuitable for carriage because they are dangerous or unsafe, or because of their weight, size, shape or character, or because they are fragile or perishable having regard to, among other things, the type of aircraft being used. Information about unacceptable items is available upon request. 5.9.3.4. Firearms and ammunition other than for hunting and sporting purposes are prohibited from carriage as Baggage. Firearms and ammunition for hunting and sporting purposes may be accepted as Checked Baggage. Firearms must be unloaded with the safety catch on, and suitably packed. Carriage of ammunition is subject to ICAO and IATA regulations as specified in 5.8.3.1.1. 5.9.3.5. You must not include in Checked Baggage money, jewellery, precious metals, silverware, computers, personal electronic devices, negotiable papers, securities or other valuables, business documents, passports and other identification documents or samples. 5.9.3.6. If, despite being prohibited, any items referred to in 5.8.3.1, 8.3.2 and 5.8.3.4 are included in your Baggage, we shall not be responsible for any loss or damage to such items. 5.9.4 Right to Refuse Carriage - Subject to paragraphs 5.8.3.2 and 5.8.3.3, we will refuse to carry as Baggage the items described in 8.3, and we may refuse further carriage of any such items upon discovery. - We may refuse to carry as Baggage any item reasonably considered by us to be unsuitable for carriage because of its size, shape, weight, content, character, or for safety or operational reasons, or the comfort of other passengers. Information about unacceptable items is available upon request. - We may refuse to accept Baggage for carriage unless it is in our reasonable opinion properly and securely packed in suitable containers. Information about packing and containers unacceptable to us is available upon request. 5.9.5 Right Of Search - For reasons of safety and security we may request that you permit a search and scan of your person and a search, scan or x-ray of your Baggage. If you are not available, your Baggage may be searched in your absence for the purpose of determining whether you are in possession of or whether your Baggage contains any item described in 5.8.3.1 or any firearms, ammunition or weapons, which have not been presented to us in accordance with 5.8.3.2 or 5.8.3.3. If you are unwilling to comply with such request we may refuse to carry you and your Baggage. In the event a search or scan causes Damage to you, or an x-ray or scan causes damage to your Baggage, we shall not be liable for such Damage unless due to our fault or negligence. 5.9.6 Checked Baggage - Upon delivery to us of your Baggage which you wish to check, we will take custody of, and issue a Baggage Identification Tag for, each piece of your Checked Baggage. - Checked Baggage must have your name or other personal identification affixed to it. -Checked Baggage will, whenever possible, be carried on the same aircraft as you, unless we decide for safety, security or operational reasons to carry it on an alternative flight. If your Checked Baggage is carried on a subsequent flight we will deliver it to you, unless applicable law requires you to be present for customs clearance. 5.9.7 Unchecked Baggage - We may specify maximum dimensions and/or weight for Baggage which you carry on to the aircraft. If we have not done so, Baggage which you carry onto the aircraft must fit under the seat in front of you or in an enclosed storage compartment in the cabin of the aircraft. If your Baggage cannot be stored in this manner, or is of excessive weight, or is considered unsafe for any reason, it must be carried as Checked Baggage. - Objects not suitable for carriage in the cargo compartment (for example, without limitation, delicate musical instruments), and which do not meet the requirements in 8.7 above, will only be accepted for carriage in the cabin compartment if you have given us notice in advance and permission has been granted by us. You may be required to pay a separate charge for this service. 5.9.8 Collection and Delivery of Checked Baggage - Subject to Article 8.6.3, you are required to collect your Checked Baggage as soon as it is made available at your destination or Stopover. Should you not collect it within a reasonable time, we may charge you a storage fee. Should your Checked Baggage not be claimed within three (3) months of the time it is made available, we may dispose of it without any liability to you. - Only the bearer of the Baggage Check and Baggage Identification Tag is entitled to delivery of the Checked Baggage. - If a person claiming Checked Baggage is unable to produce the Baggage Check and identify the Baggage by means of a Baggage Identification Tag, we will deliver the Baggage to such person only on condition that he or she establishes to our satisfaction his or her right to the Baggage. 5.9.9 Animals - We reserve the right, at our absolute discretion, to refuse to carry any animals (which, for the avoidance of doubt and without limitation, shall include birds). If we agree to carry any animals they will be carried subject to the following conditions: • You must ensure that the animal is properly crated or carried in a container complying with any applicable legal requirements and accompanied by valid health and vaccination certificates, entry permits, and other documents required by countries of entry or transit failing which, it will not be accepted for carriage. Such carriage may be subject to additional conditions specified by us, which are available on request. • If accepted as Baggage, the animal, together with its container and food, shall not be included in your free Baggage allowance, but shall constitute excess baggage, for which you will be obliged to pay the applicable rate. • Guide dogs accompanying Passengers with disabilities will be carried free of charge in addition to the normal free baggage allowance, subject to conditions specified by us, which are available on request. • Where carriage is not subject to the liability rules of the Convention, we are not responsible for injury to or loss, sickness or death of an animal which we have agreed to carry unless we have been negligent. • We will have no liability in respect of any such animal not having all the necessary exit, entry, health and other documents with respect to the animal's entry into or passage through any country, state or territory and the person carrying the animal must reimburse us for any fines, costs, losses or liabilities reasonably imposed or incurred by us as a result. 5.9.10 Items Removed By Airport Security Personnel - We will not be responsible for, or have any liability in respect of, articles removed from your Baggage by airport security personnel acting in accordance with any applicable laws and regulations, whether or not such items are subsequently retained or destroyed by such airport security personnel or are passed by them to us.

5.10. Schedules, Delays, Cancellation of Flights 5.10.1. Schedules - The flight times shown in timetables may change between the date of publication and the date you actually travel. We do not guarantee them to you and they do not form part of your contract with us. - Before we accept your booking, we will notify you of the scheduled flight time in effect as of that time, and it will be shown on your Ticket. It is possible we may need to change the scheduled flight time subsequent to issuance of your Ticket. If you provide us with contact information, we will endeavour to notify you of any such changes. If, after you purchase your Ticket, we make a significant change to the scheduled flight time, which is not acceptable to you, and we are unable to book you on an alternate flight which is acceptable to you, you will be entitled to a refund in accordance with Article 5.10.2. 5.10.2. Cancellation, Rerouting, Delays, Etc 5.10.2.1. We will take all necessary measures to avoid delay in carrying you and your Baggage. In the exercise of these measures and in order to prevent a flight cancellation, in exceptional circumstances we may arrange for a flight to be operated on our behalf by an alternative carrier and/or aircraft. 5.10.2.2. Except as otherwise provided by the Convention or applicable local law, including in particular EC Regulation 261/2004 on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights, if we cancel a flight, fail to operate a flight reasonably according to the schedule, fail to stop at your destination or Stopover destination, or cause you to miss a connecting flight on which you hold a confirmed reservation, we shall, at your option, either: 5.10.2.3. carry you at the earliest opportunity on another of our scheduled services on which space is available without additional charge and, where necessary, extend the validity of your Ticket; or 5.10.2.4. within a reasonable period of time re-route you to the destination shown on your Ticket by our own services or those of another carrier, or by other mutually agreed means and class of transportation without additional charge. If the fare and charges for the revised routing are lower than what you have paid, we shall refund the difference; or 5.10.2.5. make a refund in accordance with the provisions of Article 5.10.2. 5.10.2.6. Upon the occurrence of any of the matters set out in Article 5.9.2.2, except as otherwise provided by the Convention, or applicable local law, including in particular EC Regulation 261/2004 on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights, the options outlined in Article 5.9.2.2.1 to 5.9.2.2.3 are the sole and exclusive remedies available to you and we shall have no further liability to you. 5.10.2.7. If we are unable to provide previously confirmed space, we shall provide compensation to those Passengers denied boarding in accordance with applicable law and our denied boarding compensation policy. A copy of our denied boarding compensation policy is available upon request. 5.11. Refunds We will refund a Ticket or any unused portion, in accordance with the applicable fare rules or Tariff, as follows: • Except as otherwise provided in this Article, we shall be entitled to make a refund either to the person named in the Ticket or to the person who has paid for the Ticket, upon presentation of satisfactory proof of such payment. • If a Ticket has been paid for by a person other than the Passenger named in the Ticket, and the Ticket indicates that there is a restriction on refund, we shall make a refund only to the person who paid for the Ticket, or to that person's order. • Except in the case of a lost Ticket, refunds will only be made on surrender to us of the Ticket and all unused Flight Coupons. 5.11.1. Involuntary Refunds - If we cancel a flight, fail to operate a flight reasonably according to schedule, fail to stop at your destination or Stopover, or cause you to miss a connecting flight on which you hold a reservation, the amount of the refund shall be:

• If no portion of the Ticket has been used, an amount equal to the fare paid; • If a portion of the Ticket has been used, not less than the difference between the fare paid and the applicable fare for travel between the points for which the Ticket has been used. 5.11.2. Voluntary Refunds • If you are entitled to a refund of your Ticket for reasons other than those set out in 5.10.2, the amount of the refund shall be: • If no portion of the Ticket has been used, an amount equal to the fare paid, less any reasonable service charges or cancellation fees; • If a portion of the Ticket has been used, an amount equal to the difference between the fare paid and the applicable fare for travel between the points for which the Ticket has been used, less any reasonable service charges or cancellation fees. 5.11.3. Refund on Lost Ticket 5.11.3.1. If you lose your Ticket or portion of it, upon furnishing us with satisfactory proof of the loss, and payment of a reasonable administration charge, refund will be made as soon as practicable after the expiry of the validity period of the Ticket, on condition: • that the lost Ticket, or portion of it, has not been used, previously refunded or replaced (except where the use, refund or replacement by or to a third party resulted from our own negligence). •• that the person to whom the refund is made undertakes, in such form as may be prescribed by us, to repay to us the amount refunded in the event of fraud and/or to the extent that the lost Ticket or portion of it is used by a third party (except where any fraud or use by a third party resulted from our own negligence). 5.11.3.2. If we or our Authorized Agent lose the Ticket or a portion of it, the loss shall be our responsibility.\ 5.11.4. Right to Refuse Refund - We may refuse a refund where application is made after the expiry of the validity of the Ticket. --We may refuse a refund on a Ticket which has been presented to us, or to Government officials, as evidence of intention to depart from that country, unless you establish to our satisfaction that you have permission to remain in the country or that you will depart from that country by another carrier or another means of transport. 5.11.5. Currency - We reserve the right to make a refund in the same manner and the same currency used to pay for the Ticket. 5.11.6. By Whom Ticket Refundable - Voluntary refunds will be made only by the carrier which originally issued the Ticket or by its agent if so authorized. 5.12. Conduct aboard Aircraft 5.12.1. General - If, in our reasonable opinion, you conduct yourself aboard the aircraft so as to endanger the aircraft or any person or property on board, or obstruct the crew in the performance of their duties, or fail to comply with any instructions of the crew including but not limited to those with respect to smoking, alcohol or drug consumption, or behave in a manner which causes discomfort, inconvenience, damage or injury to other passengers or the crew, we may take such measures as we deem reasonably necessary to prevent continuation of such conduct, including restraint. You may be disembarked and refused onward carriage at any point, and may be prosecuted for offences committed on board the aircraft. 5.12.2. Payment of Diversion Costs - If, as a result of conduct by you of the sort mentioned in Article 5.11.1 we decide, in the exercise of our reasonable discretion, to divert the aircraft for the purpose of offloading you, you must pay all costs resulting from that diversion. 5.12.3. Electronic Devices - For safety reasons, we may forbid or limit operation aboard the aircraft of electronic equipment, including, but not limited to, cellular telephones, laptop computers, portable recorders, portable radios, CD players, electronic games or transmitting devices, including radio controlled toys and walkie-talkies. Operation of hearing aids and heart pacemakers is permitted. 5.13. Arrangements for additional services - If we make arrangements for you with any third party to provide any services other than carriage by air, or if we issue a ticket or voucher relating to transportation or services (other than carriage by air) provided by a third party such as hotel reservations or car rental, in doing so we act only as your agent. The terms and conditions of the third party service provider will apply. - If we are also providing surface transportation to you, other conditions may apply to such surface transportation. Such conditions are available from us upon request. 5.14. Administrative formalities 5.14.1. General - You are responsible for obtaining all required travel documents and visas and for complying with all laws, regulations,orders,demandsandtravelrequirementsofcountriestobeflownfrom,intoorthroughwhichyoutransit. -- We shall not be liable for the consequences to any Passenger resulting from his or her failure to obtain such documents or visas or to comply with such laws, regulations, orders, demands, requirements, rules or instructions. 5.14.2. Travel Documents - Prior to travel, you must present all exit, entry, health and other documents required by law, regulation, order, demand or other requirement of the countries concerned, and permit us to take and retain copies thereof. We reserve the right to refuse carriage if you have not complied with these requirements, or your travel documents do not appear to be in order. 5.14.3. Refusal of Entry - If you are denied entry into any country, you will be responsible to pay any fine or charge assessed against us by the Government concerned and for the cost of transporting you from that country. The fare collected for carriage to the point of refusal or denied entry will not be refunded by us. 5.14.4. Passenger Responsible for Fines, Detention Costs, etc. - If we are required to pay any fine or penalty or to incur any expenditure by reason of your failure to comply with laws, regulations, orders, demands or other travel requirements of the countries concerned or to produce the required documents, you shall reimburse us on demand, any amount so paid or expenditure so incurred. We may apply towards such payment or expenditure the value of any unused carriage on your ticket, or any of your funds in our possession. 5.14.5. Customs Inspection - If required, you shall attend inspection of your Baggage, by customs or other Government officials. We are not liable to you for any loss or damage suffered by you in the course of such inspection or through your failure to comply with this requirement. 5.14.6. SECURITY INSPECTION - You shall submit to any security checks by Governments, airport officials, Carriers or by us. 5.15. Successive carriers - Carriage to be performed by us and other Carriers under one Ticket or a Conjunction Ticket is regarded as a single operation for the purposes of the Convention. However, your attention is drawn to Article 5.15.5.1. 5.16. Liability for Damage 5.16.1.1. Carriage hereunder is subject to the rules and limitations relating to liability established by the convention unless such carriage is not international carriage to which the convention applies. 5.16.1.2. In carriage which is not international carriage to which the convention applies: 5.16.1.3. Saudia shall be liable for damage to a passenger or his checked baggage only if such damage has been caused by the negligence of Saudia. If there has been contributory negligence on the part of the passenger, Saudia's liability shall be subject to the applicable law relating to contributory negligence. 5.16.1.4. Except in the case of acts or omissions done with intent to cause damage or recklessly, and with knowledge that damage would probably result: • The liability of audia with respect to each passenger for death, wounding or other bodily injury shall be limited according to applicable laws. •• With respect to delay, Saudia shall be under no liability except as provided in these conditions of carriage. 5.16.1.5. To the extent not in conflict with the foregoing and whether or not the convention applies. 5.16.1.6. Saudia is liable only for damage occurring on its own line. A carrier issuing a ticket or checking baggage over the lines of another carrier does so only as agent for such other carrier. Nevertheless, with respect to checked baggage the passenger shall also have a right of action against the first or last carrier. 5.16.1.7. Saudia is not liable for damage to unchecked baggage unless such damage is caused by the negligence of Saudia. If there has been contributory negligence on the part of the passenger, Saudia's liability shall be subject to the applicable law relating to contributory negligence. 5.16.1.8. Saudia is not liable for any damage arising from its compliance with any laws or government regulations, orders or requirements, or from failure of the passenger to comply with the same. 5.16.1.9. Except in the case of acts or omissions done with intent to cause damage or recklessly and with knowledge that damage would probably result, the liability of Saudia in the case of damage to checked baggage shall be limited to SR1700 per passenger and in the case of damage to unchecked baggage shall be limited to SR1485 per passenger (for Domestic journey) and International Journey the maximum liability should not exceed XDR 1000 (Special Drawing Right) or it’s equivalent in local currency as per Montreal convention 1999, provided that if in accordance with applicable law different limits of liability are applicable such different limits shall apply. If the weight of the baggage is not recorded on the baggage check, it is presumed that the total weight of the checked baggage does not exceed the applicable free baggage allowance for the class of service concerned, as provided in Saudia's regulations. If in the case of checked baggage a higher value is declared pursuant to 11.7, the liability of Saudia shall be limited to such higher declared value. 5.16.1.10. Saudia's liability shall not exceed the amount of proven damages. Saudia shall furthermore not be liable for indirect or consequential damages. 5.16.1.11. Saudia is not liable for injury to a passenger or for damage to a passenger's baggage caused by property contained in such passenger's baggage. Any passenger whose property causes injury to another person or damage to another person's property or to the property of Saudia shall indemnify Saudia for all losses and expenses incurred by Saudia as a result thereof. 5.16.1.12. Saudia is not liable for damage to fragile or perishable items, money, jewellery, precious metals, silverware, negotiable papers, securities, or other valuables, business documents, passports and other identification documents, or samples, which are included in the passenger's checked baggage. 5.16.1.13. If a passenger is carried whose age or mental or physical condition is such as to involve any hazard or risk to himself or herself, Saudia shall not be liable for any illness, injury or disability, including death, attributable to such condition or for the aggravation of such condition. 5.16.1.14. Any exclusion or limitation of liability of Saudia shall apply to and be for the benefit of agents, employees and representatives of Saudia and any person whose aircraft is used by Saudia and such person's agents, employees and representatives. The aggregate amount recoverable from Saudia and from such agents, employees, representatives and person shall not exceed the amount of Saudia's limit of liability. 5.16.1.15. Unless so expressly provided nothing herein contained shall waive any exclusion or limitation of liability of Saudia under the convention or applicable laws. 5.16.1.16. For carriers who are Parties to the Montreal Agreement: Special Agreement applicable to carriage to, from or with an agreed stopping place in the United States of America (see applicable US tariffs). Special Agreement - Saudia shall avail itself of the limitation of liability provided in the convention. However, in accordance with Article 22(1) of the Convention (name of issuing carrier) and certain other carriers agree that as to all international carriage by such carriers to which the convention applies and which according to the contract of carriage includes a point in the United States of America as a point of origin, a point of destination or agreed stopping place. - The limit of liability for each passenger for death, wounding or other bodily injury shall be the sum of US$75,000 inclusive of legal fees and costs except that, in the case of a claim brought in a State where provision is made for a separate award of legal fees and costs, the limit shall be the sum of US$58,000 exclusive of legal fees and costs. - Such carriers shall not, with respect to any claim arising out of the death, wounding or other bodily injury of a passenger, avail themselves of any defence under Article 20(1) of the Convention. - Nothing herein shall be deemed to affect the rights and liabilities of such carriers with regard to any claim brought by, on behalf of, or in respect of, any person who has wilfully caused damage which resulted in death, wounding, or other bodily injury of a passenger. The names of carrier’s party to the agreement referred to in this paragraph are available at all ticket offices of such carriers and may be examined on request. Each of such carriers has entered into the said agreement solely on its own behalf and with respect to carriage performed by it and has not thereby imposed any liability on any other carrier with respect to the portion of the carriage performed by such other carrier or assumed any liability with respect to the portion of the carriage performed by such other carrier. - (If the carrier is a party to other special contracts pursuant to Article 22(1) convention, apart from the Montreal Agreement, the limitations of liability and related conditions provided for under such special contracts should be stated here.) 5.17. Time limitation on claims and actions 5.17.1. Notice of Claims - No action shall lie in the case of damage to checked baggage unless the person entitled to delivery complains to carrier forthwith after the discovery of the damage, and, at the latest, within seven days from the date of receipt; and in case of delay, unless the complaint is made at the latest within twenty-one days (21) from the date on which the baggage has been placed at his disposal. Every complaint must be made in writing and dispatched within the times aforesaid. 5.17.2. Limitation of Actions - Any right to damages shall be extinguished if an action is not brought within two (2) years of the date of arrival at destination, or the date on which the aircraft was scheduled to arrive, or the date on which the carriage stopped. The method of calculating the period of limitation shall be determined by the law of the court where the case is heard. 5.18. Other conditions - Carriage of you and your Baggage is also provided in accordance with certain other regulations and conditions applying to or adopted by us. These regulations and conditions as varied from time to time are important. They concern among other things: the carriage of unaccompanied minors, pregnant women, and sick passengers, restrictions on use of electronic devices and items, the on board consumption of alcoholic beverages. 5.19. Interpretation - The title of each Article of these Conditions of Carriage is for convenience only, and is not to be used for interpretation of the text. (TS-JUNE 20/27, 2015)

S AT U R D AY : J U N E 2 0 : 2 0 1 5

PROPERTY jdlacsamana@gmail.com

JOEL D. L ACSAMANA EDITOR

Beehive of activity in paranaque. Azure Urban Resort Residences.

Personal butler. Anya Resort & Residences, a Tagaytay residential resort developed by Roxaco Land Corporation, recently unveiled a concierge service dubbed “Ask-Anya-Assistant”, supposedly culled from the Filipino talent for caring for others. “We believe that Filipino hospitality means seeing guests as persons,” said Santiago R. Elizalde, Roxaco Land Corporation’s executive vice president. “While many hotels provide 24-hour concierge and room service, our version can go as far as preparing your room and all details of your stay the way you prefer it. The experience is truly that of having a home away from home.” A seven-hectare, low-density community, Anya is scheduled to open the hotel phase within the final quarter of this year. Roxaco Land Corporation developed the successful Peninsula de Punta Fuego and the Terrazas de Punta Fuego communities on the coast of Nasugbu, Batangas. Roxaco is currently working on Anya’s membership in the Small Luxury Hotels of the World Club, a membership for boutique-type luxury hotels in the world with 520 member hotels to date.

Solar Solution. Real estate developer Imperial Homes Corp (IHC) recently launched Via Verde, the first 24-hour solar powered mass housing community in Sto Tomas, Batangas. IHC partnered with Enfinity Group, one of the world’s biggest solar solutions developers, for the the project. Via Verde homes’ 1,000-watt solar system can produce 120 kwh per month, which translates to about P1,500 worth of savings on electricity per month. Enfinity IHC’s 24-hour solar solution is available through PAG-IBIG's home loan facilities. Shown in photo are Emma Imperial (center), president of IHC, with (from left) Patrick De Cuyper, Enfinity co-founder and CEO for Europe, Peter Lee Enfinity stockholder-Director, Gino Van Neer, Enifinity founder and CEO for Asia Pacific, and Danny Maesen, Enifinity Philippines Associate.

Shopper’S heaven. The TC shopping plaza at Tutuban Center in Manila formally opened on Independence Day with over 170 stalls operating from 9AM to 7PM. The spanking new plaza now serves as a daytime complement to Tutuban Center’s thriving night market scene. “We are positioning Tutuban Center as a one-stop shop, and offer a “complete” destination for great finds at affordable prices - day and night,” said Sylvia Tecson, VP-leasing and marketing of Tutuban Center. “You’ll see an assortment of products—from RTW, apparels, accessories and home essentials, to souvenirs and novelty Items. And of course, there’s a lot of food offerings as well,” she added. Located near the Bonifacio Plaza (in front of Prime Block and Centermall), the TC shopping plaza can be reached via Mayhaligue (PNR Riders), Recto (LRT and north), from Tondo, and from Ilaya and Tabora in Divisoria. At the plaza’s opening (from left to right) were: Christopher Sioson, Bldg. administration manager; Christopher De Leon, AVP construction & engineering management; Sylvia Tecson-AVP for sales and marketing; and Teodocio Mosquito AVP security and safety compliance.

Century ProPerties embarks on P15-b residential building sPree

rom 2012 to 2014, the company built six towers; namely, Gramercy, Knightsbridge, Centuria, (its flagship development) , Century City in Makati, and Rio, Santorini, and St. Tropez at Azure Urban Resort Residences in Parañaque City. The projects, which have a total of over 5,000 units and total sales value of over P23 billion, are now 99% sold. The company, led by chairman Jose E.B. Antonio, will construct six more buildings in 2015, namely, Milano in Century City, Niagara and Sutherland towers at Acqua Private Residences in Mandaluyong, Positano and Miami at Azure, and Osmeña West at The Residences at Commonwealth in Quezon City. The projects will have a total of 3,000 units and total sales value of over P15 billion. Century Properties will complete another 16 vertical developments in its various master planned communities in Century City, Azure, Acqua and Commonwealth, for a total of about over 7,000 units. Upcoming project include

Maldives tower at Azure, and Dettifoss and Livingstone towers at Acqua in 2016; Trump Tower at Century City, Maui and Boracay towers at Azure and Quezon North, and Roxas East in Commonwealth in 2017; Century Spire at Century City, the Bahamas tower at Azure, Iguazu tower at Acqua, and Osmena East in Commonwealth in 2018; and, Commonwealth projects Roxas West, Quirino West, Quirino East, and Quezon South in 2019. Also in the drawing board is an aggressive diversification into allied real estate segments, specifically horizontal housing for firsttime homebuyers and leisure and tourism development estates. Century Properties is investing P27 billion through 2020, allocating roughly P12 billion for horizontal economic housing projects to develop 20,000 homes, P10 billion for investment properties, and P5 billion for vertical developments and leisure and tourism developments. This increases its capital expenditures plan from its previous of P8.3 billion per year to P10 billion per year for the next five years. Father’S day in the cloudS. Sky Ranch Tagaytay will roll out the red carpet for fathers on June 21. There will be fun games such as Papa Pong, where you get to test your catching and throwing skills; Tower of Flawless ,a game of patience and consistency; Balloon Relay, a test to your balance and instincts, and lastly, the Kettle Korn Poppin' game where team spirit is at risk. Special prizes and other surprises await fathers and their families. A spectacular fireworks display will cap the festivities. Sky Ranch is located beside Taal Vista Hotel, along the Nasugbu-Tagaytay Highway.

S AT U R D AY : J U N E 2 0 : 2 0 1 5

JOEL D. L ACSAMANA EDITOR jdlacsamana@gmail.com

PROPERTY PH ProPerty Players stay aHead of curve

by Joel lacsaMana

he Philippine real estate sector is expecting another robust year, with gains seen across the traditionally strong office and retail segments apart from emerging areas like casino gaming and hotels, real estate consultant Pinnacle said recently. The outlook suggests robust growth in the property sector during the last full year of President Aquino’s term, before businesses take a more strategic approach ahead of the election season in 2016 as “sunny days start to give way to wetter days. In a report released this week, Pinnacle likened the coming elections to the traditional Philippine monsoon season which normally barnstorms across the country by third quarter’s end. By then, political candidates “will start sprinkling the “tri-media, utilise school graduations for political sorties, surveys begin coming out, with radio and talk shows conducting surveys of their own on potential candidates.” “The political cycle impacts on the economic cycle,” explained the Pinnacle report. “In turn, the economic cycle weighs heavily on the property cycle. Real estate business activities have been contributing to the sustained economic growth in recent years, but it is good to be aware of the political and economic forces at play. “ Mixed-use townsHiPs Make good sense How are the top real estate developers bracing for the coming election season? Ayala Land, which announced a target capital expenditure of Php 100 billion this year, is building township projects in 25 additional Philippine cities over three to five years. ALI is building Alviera, in Porac, Pampanga, which is envisioned to be another premier township. Alviera is a 1,100-hectare large-scale master- planned development that is being positioned as the premier business and leisure hub in Central Luzon. The group is likewise increasing its residential developments ca-

tering to all segments of the market, including socialized housing; and boosting its office, shopping center and hotel portfolio. The SM Group will build “micro cities” around its shopping malls by developing apartments, offices and hotels. Fifteen of the over 50 shopping malls are on land large enough for high-density and mixed-used developments. The biggest bet is on the planned Manila Bay reclamation of 600 hectares. The group is pouring Php 100 billion into the master-planned, integrated and mixed-use project Megaworld will launch five new townships: two in Luzon, two in the Visayas and one in Mindanao, with a total land area of around 400 hectares. This will bring Megaworld Groups’s total township land area to 3,100 hectares by year-end. Building mixed use developments and townships has proven to be profitable for developers. Based on the April release of the Bloomberg Asia Pacific Real Estate Index, SM Prime gained 37% over the last year, Megaworld grew by 30%, and Ayala Land increased by 29 percent. The other top developers have been busy as well. Robinsons Land Group acquired the 18.5- hectare property along Ortigas Avenue extension, where it would build a major township. In addition, it is expanding its residential, office, hotel and mall portfolios nationwide. The Greenfield/Unilab Group announced that it will develop the 12.8 hectare EDSA Central complex into a mixed use community as well. Vista Land and Puregold have been expanding their commercial retail investments. Some major players have expanded into other sectors such as transportation and toll ways. DMCI, Filinvest, Metrobank/Federal Land Groups have been investing in the power sector. The drive for recurring income is ostensibly strong. After years of raking from brisk sales, all of these players have been building up their office, retail, hotel and

gearing up for growth. Major developers are expanding projects outside Metro Manila into other cities which are also beneficiaries of strong growth backed by remittances and earnings from outsourcing firms.

even industrial portfolios to generate rental income. Even the Eton Group reported a shift in strategy : from the residential bandwagon, it is now accelerating its in gear in offering more office spaces. For these top developers, the weather is fine even with the upcoming elections. They will always try to be ahead of the curve and fill the gaps in the real estate market. office Market on tHe uPtrend The Business Process Outsourcing (BPO) industry is the biggest contributor to the Philippines’ gross domestic product (GDP) and is expected to generate 1.23 million jobs and US$21.8B in revenues this year. BSP Deputy Governor Diwa Guinigundo characterized the BPO industry as both pro-cyclical and anti-cyclical since BPOs have the tendency to grow regardless of economic conditions. This continuous growth of the industry translates to additional demand for office spaces across all major business districts. The overall vacancy rate of major business districts in Metro Manila is below 4%, which slightly spiked due to new buildings in Makati CBD and in Bonifacio Global City. Make Mine residential Based on the Housing and Land Use Regulatory Board (HLURB) figures of approved licenses to sell in the past five years, the average annual production reached over 200,000 residential lots/units, including condominium units. Condominium units and economic housing are the top two categories. This segment continues to be dominated by SM, Robinsons and Puregold. In recent months, the market has seen a phenomenal growth in the convenience store platform. Family Mart breached the 100-mark outlets by April this year. Vista Land is also expanding its “All Day Mart” platform. Vista Land, in fact, has been integrating their retail platforms in their housing projects. “AllHome” stores will be opening six to seven

stores annually over the next five years. The Wilcon Group has 33 stores all over the country. The joint venture of Jollibee and SM Groups recently opened its first community mall in Roxas City, Capiz. This is the first of the 100 CityMall branches it plans to roll out nationwide over a five-year period. a bit of a flutter does no HarM Pinnacle reported that the big players are positioning to get huge chunks of the hotel and gaming market share. The SM Group partnered with Macau’s Lawrence Ho in building the City of Dreams Manila. The hotel complex includes three hotel towers offering these brands: Nobu Hotel, Crown Towers and Hyatt Hotel with a combined total of 940 rooms. City of Dreams has 380 gaming tables, 1,700 slot machines and 1,700 electronic table games. Bloomberry Resorts Corp. opened its Solaire Resort and Casino in 2013. In addition, Japanese billionaire Kazuo Okada and the joint venture of Megaworld’s Andrew L. Tan and Genting Hong Kong Ltd. are expected to open their hotel casino resorts between 2016 and 2018. The Ayala Group has been ramping up its SEDA brand apart from its partnership with international brands like Intercontinental/Six Continents and Marriott Groups. Robinsons Land Group, for its part, has been beefing up its GoHotels, in tandem with its partnership with Six Continent’s Crowne Plaza. Federal Land/ Metrobank Group has partnered with the Hyatt Group. The Shangri-la Group has leveraged its successful hotel brand in offering condominium units for sale. flexing industrial Muscle The Bases Conversion and Development Authority (BCDA) is bidding out at least 200 hectares in the Clark Green City by way of joint venture since there is limited leasable land in both Clark Special

Economic Zone and Subic Bay Freeport Zone. Recently, Pinnacle reported that Cebu is also running out of Philippine Economic Zone Authority (PEZA)- accredited ecozone spaces for manufacturing. PEZA is now negotiating with Mactan Cebu International Airport (MCIA) for the lease of an additional 30-hectare property to address the current tightness in the industrial supply. In its 20th anniversary last April, PEZA reported a total revenue generation of Php 2.862 trillion worth of investments in the past two decades, and more than 45% percent of which came in during the past four years. In addition, PEZA enterprises exported a total of US$563 billion and provided a cumulative direct employment of 1.170 million. At present, PEZA has 316 operating economic zones in the country hosting a total of 3,447 companies. Small wonder then why Ayala Land Group included industrial spaces in its Porac, Pampanga master development plan. The Alviera Industrial Park (AIP) is seen to capture the excess demand for industrial space and drive economic activity in the region. Sixteen lots of the 31-hectare industrial park have already been reported sold. Three clusters of standard factory buildings are still available for lease. AIP is seen to complement the industrial hubs in Clark and Subic targeting companies in light to medium, non-polluting enterprises. oPerative word is flexibility Pinnacle believes that amidst the political noise of the election season, people will continue to work and report to their offices, whether in traditional offices or IT/PEZA zones. Filipinos will continue to build and repair their homes. Families will keep on shopping and spending in malls, and will continue to travel and go to resort-hotels. In short, Filipinos are used to storms, and the real estate market will likely weather the political storm and remain resilient, the real estate consultant opined.