The Standard - 2016 July 4 - Monday

VOL. XXX NO. 142 3 Sections 32 Pages P18 MONDAY : JULY 4, 2016 www.thestandard.com.ph editorial@thestandard.com.ph

Charter change method an issue

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NPA: WE’LL NAB OR KILL PUSHERS Rebels to support Duterte anti-drug campaign

By Florante S. Solmerin

LEADERS of the Communist Party of the Philippines have ordered the New People’s Army to arrest and even kill drug traffickers if they resist, in line with President Rodrigo Duterte’s campaign against drug trafficking.

Police Investigators look on the two of the five bodies of suspected drug dealers who exchanged fire with Station 3 police in Arlegui, Quiapo Manila on Sunday July 3. DANNY PATA

Envoys to talk to Abu Sayyaf

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“While the CPP does not accept his reference to the duly constituted people’s courts as ‘kangaroo courts’ and reiterating the right to due process of criminal suspects, the CPP and the revolutionary forces accept President Duterte’s offer of antidrug cooperation,” the CPP said in a statement.

At rites to mark the turnover of command at the Armed Forces of the Philippines, Duterte sought the cooperation of the communist rebels in the government’s fight against drug trafficking.

“Well, the NPA are listening.

What if you try them in your courts?” Duterte said in Filipino.

“I don’t know if they are kangaroo courts or otherwise but why not just kill them so that we can find a faster solution to our problem?

If you encounter them and they are committing a crime in your presence out in the jungle, just go ahead and finish them.”

The CPP said they will intensify its war against illegal drugs.

“The NPA is ready to give battle to those who will resist arrest with armed violence,” the CPP said.

The communists said the NPA has long sought “to disarm and arrest the most notorious criminals including the biggest drug traffickers, in order for them to be subjected to prosecution and just punishment.”

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China to stage sea exercises ahead of ruling CHINA will hold military drills in the disputed South China Sea, Chinese officials said Sunday, ahead of an international tribunal ruling over Beijing’s maritime claims in the resource-rich area.

The drills will be held in waters around the Paracel Islands from July 5 to 11, with other ships prohibited from entering the waters during that time, a

short statement by the maritime safety administration said.

The military exercises come as an international tribunal in The Hague prepares to rule on a case brought by the Philippines challenging China’s claims in the strategic waterway.

Manila lodged the suit against Beijing in early 2013, saying that after 17 years of negotiations it had exhausted

all political and diplomatic avenues to settle the dispute.

Beijing, which asserts sovereignty over almost all of the South China Sea despite rival claims from Southeast Asian neighbors, insists that the Permanent Court of Arbitration has no jurisdiction over the issue and has boycotted the proceedings.

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Duterte to act on media killings

By Sandy Araneta

NPA: ...

From A1

Chief Insp. Arnold Ongachen, chief of police of Governor Generoso, Davao Oriental, was seized by NPA rebels on May 29 for alleged drug trafficking.

Upon learning the Ongachen’s alleged involvement in drug trafficking, Duterte said he would not bother to ask for his release and just let the rebels decide on his fate.

The CPP said Ongachen “is currently under detention and undergoing investigation for involvement in the illegal drug trade.”

“The proliferation of illegal drugs, especially shabu, and the concomitant rise in incidents of violent crime serves the perpetuation of the ruling system. The biggest and most notorious drug traffickers are those in the top echelons of the AFP and PNP, who are also in cahoots with key officials in the local and national bureaucracy. It is apparent that President Duterte is fully aware of such,” the CPP said.

“Historically, the colonizers and ruling classes have deliberately encouraged the propagation of drugs as a means of desensitizing the oppressed and exploited masses. Drug abuse numb them of the acute effects of poverty, hunger and state violence. Drug abuse disunites the people and prevents them from effectively carrying out revolutionary struggle,” it added.

Formal peace talks between the government and the CPP-NPA through the National Democratic Front will start later this month in Oslo, Norway.

“In line with peace talks, the revolutionary forces anticipate the possibility of a mutual ceasefire in the coming weeks as a result of negotiations between the National Democratic Front of the Philippines and the Philippine government. Until then, the NPA can continue to carry out select operations in defense of people’s rights and welfare, especially against the biggest criminal syndicates and their nefarious military and police cohorts,” the CPP said.

Anti-drug operations continued in different parts of the country.

Police in the Autonomous Region in Muslim Mindanao reported six people involved in the illegal drug trade were arrested with shabu and guns with an estimated value of P1.5 million.

In Baguio City, some six drug pushers and 156 users surrendered to barangay and police of the last few weeks.

“We have given the drug personalities the ultimatum and we will now aggressively go after them in order to reduce or even rid the city of drug personalities,” said Senior Supt. George D. Daskeo.

He said those who surrendered before the ultimatum last Thursday signed promissory notes declaring that they will no longer be involved in the trade and use of illegal drugs and that they are willing to reform themselves to become productive residents of the city.

Also on Sunday, the chairman of the Commission on Human Rights said he would take an active role as a “referee” to make sure that the Duterte administration respects human rights.

“Our role is just as a referee,” said CHR Chairman Chito Gascon. “We implement the rules of the game under the Constitution.”

Gascon welcomed the President’s promise in his inaugural address that he would adhere to the rule of Suspected drug users who surrendered to Manila Police District Station 3 in Quiapo, Manila law in going after criminality, drugs and corruption. squeeze into a small cell on Saturday, July 2. The jails are crowded due to the government’s With PNA, Rio N. Araja intensified anti-drugs program of PNP. DANNY PATA

China...

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Basing its claims on a vaguely defined “nine-dash” Chinese map dating back to the 1940s, it has rapidly turned reefs into artificial islands capable of hosting military planes.

Manila contends that the “nine-dash” line has no basis under international law and Beijing has no “historic” claim to the ocean.

The Palace on Sunday said President Rodrigo Duterte will not be attending the 11th AsiaEurope Leaders Meeting (Asem) on July 15 and 16 in Mongolia

that will tackle the South China Sea row and other key issues.

“We have not discussed this, but based on his earlier past pronouncements he mentioned that he will be spending more time in the Philippines, now that he has just assumed post as President,” said Secretary Martin Andanar, chief of Presidential Communications Office, in an interview over state-run radio station dzRB. Foreign Secretary Perfecto Yasay Jr. has said he would attend the Asean summit as the President’s representative, but did not offer a reason for Duterte to skip it.

The Foreign Affairs Depart-

ment had earlier recommended that Duterte attend the forum that gathers the leaders of the Association of Southeast Asian Nations, the European Union, Japan, China and South Korea.

“The meeting of leaders is always interesting because you can do your reading of what their [other leaders] priorities are,” said Laura del Rosario, former DFA undersecretary for economic relations.

The summit is expected to tackle not only the South China Sea conflict but Britain’s recent exit from EU. Tensions in the South China Sea have alarmed other nations,

and most notably the United States which has key defense treaties with many allies in the region, and in a show of strength has sent warships close to some of the Chinese claimed reefs.

But President Xi Jinping said in a speech last week that China will never compromise on sovereignty, and that the country was “not afraid of trouble.”

In an apparent stab at the US, Xi said: “We will not show up at other people’s front doors to flex our muscles. That does not show strength or scare anyone.”

Vietnam, Malaysia, Brunei and Taiwan also have overlapping claims to the waterway. Sandy Araneta, AFP

PRESIDENT Rodrigo Duterte will create a presidential task force on media killings, a Palace official said Sunday after a radio journalist and his 12-year-old son survived an ambush in Surigao.

“We condemn this ambush on a journalist in Surigao,” said Secretary Martin Andanar, chief of the Presidential Communications Office [PCO], referring to Saturnino Estaño Jr. of the RMN Network, who took three gunshots to the back. His son sustained four gunshot wounds and is in critical condition.

Andanar said the attack was in response to Estaño’s radio attacks on drug syndicates.

He added that Duterte would issue an executive order soon to create the task force, as well as another order on freedom of information.

“We are still fine-tuning this executive order, and we [hope we] will be able to announce it this week or next,” Andanar said.

The National Union of Journalists of the Philippines said the ambush on Estaño was carried out by two motorcycleriding gunmen Thursday afternoon, who opened fire while the journalist was moving things from the trunk of his car to his house.

Estaño drove to a hospital to seek treatment for himself and his son.

Reports said Estaño had been running commentaries against illicit drugs and gambling on his radio show.

He also alleged the existence of corruption in some government agencies.

“Whatever the perpetrators of this crime think that they’ll achieve by an attempt to murder a journalist, like Estaño, they have already failed. We assure you we stand by the side of good men,” Andanar said in a statement. “Justice will be served.”

A reelected lawmaker from Cebu said Sunday he will refile a bill that specifies a venue for criminal and civil libel cases against community journalists, publications or broadcast stations.

Rep. Raul V. del Mar said the measure, which failed to win approval in the last Congress, would prevent complainants from harassing community journalists by filing cases far from their base of operation.

Under the measure, the criminal or civil action in cases of libel against a community journalist, publication or broadcast station must be filed in the regional trial court of the province or city where the principal office or place of business of the community journalist, publication or broadcast station is located.

With PNA

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Treat coalition partners fairly, speaker urged

Fun run. National Nutrition Council project coordinator Mila Federizo, BNS president Mary Grace Tamayo, and Mandaluyong City Mayor Menchie Abalos led the run for the ‘Takbo para sa Malusog na Kinabukasan’ in Mandaluyong City. It was an advocacy fun run and fund-raising project of the Federation of Barangay Nutrition Scholars of NCR in partnership with the National Nutrition Council. ANDREW RABULAN

Clash seen over mode of revising Constitution INCOMING House Speaker Pantaleon Alvarez and former Speaker Feliciano Belmonte Jr. are expected to clash over the modes of revising the Constitution. Alvarez of the Partido Demokratiko-Pilipino-Lakas ng Bayan and Belmonte of the Liberal Party separately filed House Resolution of Both Houses 1 and 2, respectively, on July 1.

Alvarez is calling for a Constitutional Convention to “overhaul” the entire Constitution, including the shift from presidential to a federal system of government that entails a nationwide plebiscite.

Belmonte, on the other hand, wants Congress to convene itself into a constituent assembly and amend only the economic provisions, which would be approved by a vote of threefourths of all members of the House and the Senate, with the two chambers voting separately.

Outgoing Senate President Franklin Drilon is seeking a review of the Constitution through Con-Con as he filed a resolution calling for a ConCon to review the 1987 Constitution.

“There is a need to reexamine the Constitution to determine if it is still attuned or responsive to the demands

of present-day realities,” Drilon said.

Incoming Senate President Koko Pimentel says Charter change will be among the priorities of the Senate, consistent with the plan of President Rodrigo Duterte to shift the form of government to federalism.

Pimentel, PDP-Laban president, said he will initiate moves to amend the Constitution through a Con-Con by filing a bill for this purpose at the start of the 17th Congress.

“The plan is to start the ball rolling for the shift to a federal system. As far as the legislators are concerned, a bill calling for a Con-Con must be filed,” he said.

Negros Occidental Rep. Albee Benitez has filed a joint resolution seeking to convene Congress and the Senate into a constituent assembly to amend the 1987 Constitution to shift to federalism.

Benitez filed House Joint Resolution No. 2, such is the fastest way to push for a federal form of government.

“The resolution proposes convening the Philippine Congress into a constituent assembly to introduce and adopt revisions and/ or amendments to the Constitution as it is the most expeditious and less costly than other modes of Charter-change,” he said.

Belmonte has refiled his resolution seeking to amend the Charter by giving Congress the power to lift the restrictions on foreign ownership of land and businesses here.

While Belmonte’s proposed Charter change measure garnered 197 co-authors, the Cha-cha move failed to pass in the 16th Congress because then President Benigno Aquino III was vehemently against it.

Belmonte said the growing global interest in Asia provides opportunity for the country to compete for more investments.

“Statistics show that despite economic growth, the poverty incidence remained constant for

the past six years, thus the need to urgently address this issue,” Belmonte said.

“In order to realize the full benefit of inclusive growth, the restrictive economic provisions in the Constitution, which hamper the flow of foreign capital investments, must be lifted.”

President Duterte is dead-set on a three-step push for Charter change that will “overhaul” the Constitution to shift from presidential to federal system of government and systemic structural reforms that will be finished in the next three years.

“The intention is not just to make piece-meal amendments, but to virtually rewrite the fundamental law of the land,” the Alvarez camp said.

“Duterte did not want a constituent assembly to rewrite the Constitution.”

The three-way push includes the formation of a Consultative Commission, the convening of Constitutional Convention and ratification via a plebiscite. Christine F. Herrera, Macon RamosAraneta and Rio N. Araja

OUTGOING Speaker Feliciano Belmonte Jr. on Sunday urged incoming Speaker Pantaleon Alvarez to treat his coalition partners fairly.

He said he initiated to establish a good relationship with the other lawmakers belonging to different parties under a coalition when the Liberal Party, his party, was then a marginalized political party in 2010.

“My principle then was to treat your allies fairly and equally, and give the recognition due them,” Belmonte said.

“That was my way of bonding with them rather than forcing them to join the party.”

Because of the recruitment of members from various parties into a super majority and the plan to reduce the LP membership to only 20, Belmonte hinted at campaigning to become the next minority leader in the 17th Congress.

A lawmaker who requested anonymity said President Rodrigo Duterte’s Partido Demokratiko Lakas ng Bayan was being alarmed by the massive recruitment being undertaken by its coalition partners in the supermajority.

“The PDP-Laban was disappointed with the continued recruitment of other parties from LP members, prompting the incoming ruling party to request them to stop the recruitment process,” the source said.

“The recruited members may be bigger in number than the PDP-Laban’s 80 lawmakers.”

PDP-Laban’s supermajority is also composed of the Nacionalista Party, the Nationalist People’s Coalition, the National Union Party and the 57 allied party-list groups.

The source said at least 54 or 55 NP members had joined the supermajority, adding if the PDP-Laban did not stop its recruitment, it could be outnumbered.

Meanwhile, defeated vice presidential candidate Senator Alan Peter Cayetano had only himself to blame for failing to get the support of his colleagues in his bid for the Senate presidency as he had resorted to disinformation, Senator-elect Panfilo Lacson told DWIZ radio.

Cayetano, who has not given up the fight on leading the Senate, was earlier accused by his fellow senators of “dictating” on the chairmanship of the Senate committees.

Lacson belied the claims that President Rodrigo Duterte had interfered in choosing the chairmanship of the Senate committees.

Cayetano had repeatedly vowed he would not meddle in the senators’ choice of Drilon’s successor.

Duterte also announced he would remain neutral and even told Cayetano and Pimentel, both close allies, to fight it out for the Senate presidency.

But Lacson said he remembered Cayetano telling him he still needed to clear with the President the chairmanship of at least five committees. Rio N. Araja and Macon Ramos-Araneta

Duterte back in Davao after his inauguration DAVAO CITY—Three days after his inauguration as the 16th President in Manila, Rodrigo Duterte was back in his home at the Doña Luisa subdivision here and mingling with visitors.

And on the night of July 3 he went out and had some photos taken with his guests.

He was wearing only his comfort shirt, jogging pants and slippers when he went out to see the people waiting for him.

When he arrived Friday night from a two-day stay in Manila for his inauguration and turnover of command, Duterte roamed the

city with his old pickup truck with the windows down.

He was still wearing his barong and waving at the people, who were pleased to see their former mayor who is now the President.

His convoy was even stuck in traffic on Quirino Avenue, where the pedestrians had the chance to take some photos of him.

Some approached his car until his escorts stopped them, but they still cheered on seeing him, and he responded by saying “We are good now, we are good now.”

F. Pearl A. Gajunera

Surprise test. Members of the Philippine National Police in San Juan City undergo a surprise urine test to determine if they are positive for illegal drugs. MANNY PALMERO

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Gov’t starts talks with ASG

By Sandy Araneta

PRESIDENTIAL peace adviser Jesus Dureza has dispatched emissaries to negotiate with the Abu Sayyaf Group for the safe release of their remaining hostages but ruled out discussions on ransom, Malacañang said on Sunday as the terrorist group threatened to behead another foreign captive if the government refuses to talk with them.

Catch of the day. Fishermen unload fresh fish caught from Laguna de Bay in Taguig City on Sunday. MANNY PALMERO

Lacson: Death penalty for heinous crimes

By Macon Ramos-Araneta SENATOR Panfilo Lacson has filed a bill that will make a wide range of heinous crimes, including drugrelated offenses, treason, terrorism and human trafficking, punishable by death.

But while President Rodrigo Duterte is pushing for death penalty by hanging, Lacson wants the use of lethal injection as mode of execution.

The death sentence shall be carried out not later than one year after the judgment has become final and executory, but without prejudice to the prerogative of the President to exercise executive clemency powers.

Lacson, who headed the Philippine National Police from 1999 to 2001, noted that the alarming surge of heinous crimes in recent years has shown that life imprisonment is not a deterrent to grave offenders.

“Hence, to reinstate public order and the rule of law, there is an impending need to revisit and re-impose the death penalty on certain heinous crimes,” Lacson said.

Citing PNP data in 2015, he said 75 percent of most heinous crimes were drug-related while 65 percent of inmates in prisons were either accused or convicted of drug-related crimes.

The PNP’s Directorate for Investigation and Detective Management has documented 9,646

murder cases; 31,741 cases of robbery; and, 10,298 rape cases in 2015. These translate to an average crime incidence of a murder every 54 minutes, a robbery every 16 minutes, and a rape case every 51 minutes.

From January to May 2016, Lacson noted the PNP recorded “a staggering number” of crime incidents, including 3,615 murder cases, 3,996 rape cases, and 9,971 robbery cases.

Meanwhile, Buhay Rep. Lito Atienza urged Congress to push for reforms in the justice system instead of backing efforts to revive the death penalty.

“We should just concentrate on effectively suppressing rampant

crime by stamping out endemic corruption in law enforcement, the prosecution service, the courts and in prisons. Instead of reviving the death penalty, it would be better for the new Congress to push for criminal justice system reforms—to ensure that every felon is instantly nabbed, successfully prosecuted, convicted and caged forever. This is our best strategy to fight crime—to dissuade other would-be offenders,” Atienza said.

“Let us forget about reinstating capital punishment. The best criminologists around the world have long established that the death penalty does not serve any purpose that is not already being served by lifelong imprisonment,” he added.

Robredo urges supporters to shun political bickering

By Rio N. Araja VICE President Leni Robredo on Sunday urged her supports to avoid bickering with her bashers as she called for unity behind the administration of President Rodrigo Duterte.

In her thanksgiving speech in Naga City, Robredo thanked her family and her supporters who came to her defense during the highly divisive campaign period.

“You were the ones who would fight for me when I was being attacked. I know this was your way of showing how much you loved me,” she said.

“But I have one request. Many had fought for me, but gone are the days when we would be fighting others. This is the time to support our new administration. This is a time to unite,” she added.

She called on her supporters to remain humble and magnanimous.

“Just ignore the bad words that we hear,” she said.

Duterte earlier said he will not be appointing Robredo to any Cabinet post, adding that he does not want to hurt his friend, former senator Ferdinand Marcos Jr., who has a pending electoral protest case to question Robredo’s win.

“There is no law which is a compelling reason for her to be a member of the Cabinet,” Duterte said.

Duterte and Robredo met for the first time on Friday in Camp Aguinaldo.

While the meeting was cordial, Robredo said she is no longer expecting any Cabinet position under the Duterte administration.

“I no longer expect to be given a Cabinet post. I am prepared for that possibility,” she said.

“It will just be a bonus for me. If none is given, I am ready,” Robredo added.

“Secretary Dureza has sent people to negotiate with the Abu Sayyaf for the safe release of the hostages,” Presidential Communications Office Secretary Martin Andanar said in an interview with state-run dzRB. “Of course, this would be continuing until the last of the hostages are released,” Andanar added.

Dureza said he is ready to dialog with the ASG to save Norwegian national Kjartan Sekkingstad and the Indonesian seafarers.

“I have relayed to them my openness to talk to them in the effort to save the life of the Norwegian. We will try to work for the release of all if possible. But we will not entertain talks on ransom,” Dureza said.

“A certain Abu Rami sent word thru someone in Zamboanga that he wanted to talk to me. I was able to talk this morning with the go-between person and told her I was willing to receive his phone call anytime but made it clear that discussing ransom is out of the question. She told me he wanted to take up other matters. I agreed,” Dureza added.

Abu Rami, the self-proclaimed spokesman of the bandits, aired the group’s request to talk to Dureza during a radio interview in Zamboanga City on Friday.

Rami said they are “waiting for some individuals or group of individuals” within the week “to negotiate” with them for the release of Sekkingstad.

Rami also allowed Sekkingstad to talk on radio and air his plea to both the Philippine and Norwegian governments.

“I strongly appeal and ask for help from the Philippine government and from the Norwegian government, for as you know the amount they are asking is more than the amount my family can manage to established,” the Norwegian hostage said.

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INC efforts jibe with Duterte’s programs EXECUTIVE Minister Eduardo V. Manalo on Sunday directed the Iglesia ni Cristo to intensify its anti-poverty and sociocivic initiatives, a few days after the inauguration of President Rodrigo R. Duterte, who had called on the country’s sectors to work together to push the country forward.

INC general auditor Glicerio B. Santos Jr. explained that the Church’s move to speed up its regular and continuing outreach programs to needy communities all over the country would dovetail with Duterte’s call for the whole country to support his administration’s efforts to uplift the welfare of the people.

On Sunday the INC organized one of its biggest Lingap Pamamahayag projects this year with the distribution of 100,000 packs of basic goods and the conduct of medical and dental missions in Moriones, Tondo in Manila.

Entertainment was also provided to the residents of Moriones, with shows staged in front of the INC Chapel in the area.

Similar projects will be conducted in all of the INC’s districts all over the world.

Santos stressed that “the President is right; our country’s leaders can help our country best if they have the support and cooperation of the people.”

“Given our Church’s teachings and the resources we are blessed to have, it is only right that we do our fair share to help our countrymen. The Iglesia Ni Cristo, under the leadership of our Executive Minister Eduardo V. Manalo, is ready to help,” said Santos.

Jobless ranks swelling

By Macon Araneta

IT CAN take 18 months to two years before new college graduates can land a job while high school graduates can take up to four years, and even longer for a youth who drops out of school.

On that premise, Senator Juan Edgardo Angara has commended the Jobstart program, a state-run job search mechanism intended to provide the youth with full employement.

The January 2016 Labor Force Survey showed that youth unemployment contributed to nearly half or 48.2 percent of the total 2.42million unemployed Filipinos. This translates to 1.17-million unemployed youth aged 15 to 24 years.

Majority of the unemployed young people are high school graduates, totalling to 800,000, while unemployed college graduates reached 480,000.

Angara said many of the youths are unemployed due to lack of the right skill for the jobs available.

“And JobStart program can help our youth, with at least a high school education, become more employable and responsive to the demands of the labor market,” he explained.

Angara said Republic Act 10869 or the JobStart Philippines Act, which was signed by President Benigno Aquino III on his last full day in office, seeks to institutionalize the nationwide implementation of the JobStart Philippines Program, a program designed to enhance the employability of the youth by giving them job search

assistance, free technical and life skills three months. trainings, placement in internships, Under the law, JobStart trainees and job referrals. will receive daily allowance during To qualify for the JobStart pro- the life skills and technical training, gram, one must be 18 to 24 years while during the internship stage, old; have at least reached high school the participating employer must prolevel; not employed, studying, or vide the trainees with a daily stipend undergoing training; have no work of not less than 75 percent of the preexperience or have less than one year vailing minimum wage where the of accumulated work experience. establishment is located.

The program shall include full emJobStart graduates shall be given ployment facilitation services such preference in the hiring of workers as registration, client assessment, life by the participating employers. skills training with one-on-one caJobStart’s pilot run, which started reer coaching, technical training, job last year, produced a total of 1,070 matching, and referrals to employers graduates, wherein 783 of them either for further technical training, found jobs or were absorbed by partinternship, or for decent employment. ner employers, registering a placeThe JobStart training period will ment rate of 73 percent. be divided into three phases: 1) life Most of the JobStart graduates are skills training for 10 days; 2) techni- now working as production staff, cal training for up to three months; hospitality service staff, service crew, and, 3) internship for not more than sales agent, cashier, among others.

UID. Operatives of the Manila Police District scour the MPD building on Sunday July 3 in search of a man who fired a shot. The shooter turns out to be one of their ilk, identified as Vincent Paul Bulacan Solares (right photo), detailed at the MPD Station 1 in Tondo who, according to police, is under the influence of drugs. DANNY PATA

‘Gazmin boys’ keep Defense posts hold-over capacity until the end of July, unless their appointments NATIONAL Defense Secretary are sooner revoked, resignations Delfin Lorenzana has retained accepted, replacements appointed several appointees of his prede- or reappointments issued.

“Pursuant to relevant laws and cessor, Voltaire Gazmin, but he said their appointments would regulations, all coterminus posionly be temporary while he is tions in excess of or not covered looking for their replacements. by an agency’s plantilla are here“Their stay is only temporary, by considered functus officio by from two to six months. It de- 12:00 noon of 30 June 2016, unless their occupants are otherwise pends,” Lorenzana said.

Lorenzana denied allegation directed by the head of agency/enthat Gazmin had requested the tity concerned to continue serving retention of his men at the DND. in hold-over capacity until 31 July “No, it’s my decision to retain 2016,” it stated.

One of the so-called “Gazmin them,” Lorenzana said. boys” is Ernesto Boac, former On June 30, Malacañang issued Memorandum Circular Assistant Secretary for Financial No. 1 directing all government Management, who has a new post officials to continue serving in a as Asec for Acquisition, Instal-

By Florante S. Solmerin

Parañaque book launch. Pagcor Chief Andrea Domingo presents a copy of a coffeetable book on Parañaque City: From a Pueblo to a Mega City by the Bay during the formal launching held on June 28, 2016 at the Grand Ballroom of the Solaire Resort and Casino. Domingo, the guest of honor and speaker at the event, is flanked by Parañaque City Mayor Edwin L. Olivarez (right) and book author Melandrew T. Velasco.

lation and Logistics, formerly held by former Asec Efren Fernandez.

Roy Devaraturda, Assistant Secretary for Plans and Program, could be assigned chairman of the DND Bids and Awards Committee, formerly concurrently held by Boac.

Lorenzana has retained Raymund Jose Quilop, Assistant Secretary for Assessment and International Affairs.

Ernesto Carolina, Acting Administrator of the Philippine Veterans Affairs Office also retained his post.

Lorenzana retained Fermin de Leon Jr., president of the National Defense College of the Philippines.

Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE POWER SUPPLY AGREEMENT (PSA) BETWEEN LEYTE IV ELECTRIC COOPERATIVE INC. AND GNPOWER LTD. CO. WITH PRAYER FOR CONFIDENTIAL TREATMENT OF INFORMATION ERC CASE NO. 2016-021RC AND THE ISSUANCE OF PROVISIONAL AUTHORITY LEYTE IV ELECTRIC COOPERATIVE, INC. (LEYECO IV) AND GNPOWER LTD. CO. (GNPOWER) Applicants. x---------------------------------------------x NOTICE OF PUBLIC HEARING TO ALL INTERESTED PARTIES: On 15 March 2016, Leyte IV Electric Cooperative,Inc. (LEYECO IV) and GNPower Ltd.Co. (GNPower) filed their joint Application for approval of their Power Supply Agreement (PSA), with prayer for confidential treatment of information and issuance of provisional authority.

In support of said Application, LEYECO IV and GNPower alleged,among others, the following: 1.

Applicant LEYECO IV is a non-stock, non-profit electric cooperative existing under the laws of the Philippines,with principal office address at Brgy. Lamak, Hilongos, Leyte. It is authorized to distribute and provide electricity services to its member-consumers in the Municipalities of Inopacan, Hindang,Hilongos,Bato,.Matalom,and the City of Baybay,allin the Province of Leyte (collectively,the “Franchise Area”); 2.

Copies of LEYECO IV’s Articles of Incorporation, By-Laws, Certificate of Registration and Certificate of Franchise are attached to the Application as follows: Annex “A” “B” “C” “D”

Document LEYECO IV’s Articles of Incorporation LEYECO IV’s By-laws Certificate of Registration with the National Electrification Administration (NEA) Certificate of Franchise

3.

Applicant GNPOWER is a duly registered limited partnership organized and existing under Philippine laws, engaged in the business of developing, constructing, operating and owning power generation facilities and in the sale and trade of electric power.

Its principal office is at 28th Floor, Orient Square Building, Don Francisco Ortigas Jr. Road, Ortigas Center, Pasig City; 4.

GNPOWER’s pertinent documents evidencing its due registration as a limited partnership are appended to the Application, as follows: Annex “E” “F”

Document Certificate of Registration issued by the Securities and Exchange Commission (SEC) GNPOWER’s Amended Articles of Partnership

that is less than or equal to the aggregated baseload requirement in any or all of the contract years in increments of 1 MW. In the event that some winning bidders offered less than 11 MW, the loads were optimally allocated in such a way that the blended price of generation resulting from the R8 JCPSP transaction is almost the same for all ECs. In the event multiple bidders who collectively satisfy the total baseload demand of R8 ECs are declared winners for any contract year, all winning bidders entered in to individual PSAs with each of the 11 ECs; 12.4.

Bidders who signified their intention to join by buying the bid documents, attended pre-bid conferences where they gave their comments and sought clarification on the bidding requirements and process. The BAC issued bid bulletins and the Final Instruction to Bidders; 12.5.

The process followed the 2-envelope system – the legal requirements and proof of financial and technical capability in the first, and the commercial offer in the second. Bids were evaluated based on an Evaluation Framework and Evaluation Methodology released to the Bidders; 12.6.

After evaluating the bids of each supplier, on 14 November 2014, the BAC declared Applicant GNPOWER as a winning bidder of a total of 43 MW for Contract Year 2016, with a Lowest Calculated Responsive Bid with a Base Price offer of PhP5.0481/kWh and an evaluated Effective Price of PhP6.6658/kWh; 12.7.

On 14 September 2015,GNPOWER and the Region 8 ECs commenced the final negotiations for the other commercial and technical terms and conditions of the PSA and negotiated the further reduction of the Contract Price from PhP5.0481/ kWh to PhP4.9653/kWh and for the increase in capacity to 52MW; Attached to the Application are copies of the relevant documents issued relative to the Joint Competitive Selection Process undertaken by the Region 8 ECs for the supply of their aggregated base load demand: Annex “H” “H-1” “H-1-a” “H-2” “H-3” “H-4” “H-5” “H-6” “H-7” “H-8”

13. On 18 September 2015, LEYECO IV and GNPOWER executed the subject PSA, providing the terms and conditions for the supply of 1MW baseload power to LEYECO IV, to assure the adequate and reliable supply of power to LEYECO IV’s franchise area ABSTRACT OF THE PSA AND OTHER RELATED INFORMATION

5.

Applicants may be served with orders, notices and other legal processes of the Commission through its counsels of record; 6.

The instant Application is filed pursuant to Sections 23, 25, 43 (u), and 45 (b) of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA Law), its Implementing Rules and Regulations, and other pertinent rules and regulations.A copy of the PSA signed by Applicants on 18 September 2015 is attached as Annex “G“ and forms an integral part of the Application;

Contract Duration Dec. 26, 2014 – Dec. 25, 2015 Dec. 26, 2015 – Dec. 25, 2016 Dec. 26, 2016 – Dec. 25, 2017 Dec. 26, 2017 – Dec. 25, 2018

Aggregated Baseload 65 MW 78 MW 83 MW 93 MW

8.

The contracts of most of the Electric Cooperatives (ECs)in Region 8 with the National Power Corporation-Power Sector Assets and Liabilities Management Corporation (NPCPSALM) expired on 25 December 2014 9.

On 07 November 2013, the eleven (11) ECs of Region 8 participated in the bidding for PSALM’s 200 strips of energy from the Unified Leyte Geothermal Power Plant, but lost; 10. Typhoon Yolanda hit the region on 08 November 2013 stalling any efforts to contract additional power supply and shifting the focus instead on the massive restoration efforts in the area; 11. Thus, the Region 8 ECs decided to bid out their power supply requirements for the period 2015-201. In the middle of 2014, the Region 8 ECs conducted a Joint Power Supply Planning.Later, the Region 8 ECs decided,through a Memorandum ofAgreement(MOA),to conduct a joint procurement of their short-term aggregated baseload requirement, specifically, their power supply needs beginning 26 December 2015 until 25 December 2016. From September to December 2014, the competitive bidding for the region’s power requirements was held; 12. For such purpose, a Bids and Awards Committee was created to conduct the Region 8 Joint Competitive Power Supply Procurement (“R8 JCPSP”) as follows: 12.1.

12.2.

12.3.

The Region 8 ECs initially prepared their respective least-cost power supply plans and subsequently their aggregated baseload demand for competitive bidding; The competitive tender was published and announced in the coverage areas of the Region 8 ECs. In addition, prospective bidders (Generation Companies, IPP Administrators and Wholesale Aggregators whose names are listed on the Department of Energy (DOE) website) were invited; The capacity offered by the winning bidder/s was allocated among the eleven (11) Region 8 ECs in proportion to their declared demand. A bidder was allowed to offer to supply capacity

14.

The following are the salient features of the PSA:

A.

Term The Agreement shall be effective from 18 September 2015, the date of the execution of the PSA. For the delivery of the contracted capacity, it shall have a term of one (1) year, starting on 26 December 2015 (12:00 A.M.) to 25 December 2016 (12:00 M.N.)

B.

STATEMENT OF FACTS 7.

The aggregated uncontracted base load demand of Region 8 for years 2015 to 2018 is continually increasing as shown in the table below: Contract Year 2015 2016 2017 2018

Document Invitation to Bid Copy of the page of the newspaper where the Invitation was published Affidavit of Publication of the Invitation to Bid Memorandum of Agreement among Region 8 ECs Emails confirming participation of interested suppliers in the bidding Final Instruction to Bidders Bid Forms Bid Evaluation Slips Comparison of Bids Notice of Award

Contracted Capacity GNPOWER shall sell and deliver, or cause to deliver to LEYECO IV a contracted capacity of 1MW at the delivery point of the facility.

Unutilized Capacity. The unutilized capacity of the Buyer may be made available for utilization of other Region 8 ECs or sold to the WESM. Exchange of Contracted Capacities. To maximize capacity utilization, Region 8 ECs may exchange quantities of their Contracted Capacities. (Exchange in MW Capacity Protocol annexed to the PSA)

C.

Contract Price Under Schedule 1 of the PSA, the Total Monthly Charge, before taxes, for a Billing Period shall be computed according to the following:

Total Monthly Charge = Capacity Charge+Energy Charge C. 1. Capacity Fee and Capacity Charge The Capacity Fee is the component of the Contract Price allocated to pay for the cost, as well as, the operations and maintenance of the Facility and is designated as the Capacity Fee in Schedule 1 of the PSA as such may be adjusted from time to time based on LEYECO IV’s Capacity Utilization Factor.

Where: Q ACTUAL CC HT EHTO CFCUF LCRCUF

as published by the Philippine National Statistics Coordination Board (or its substitute or replacement agency, as the case may be).

PHCPI0

= the base Philippine Consumer Price Index for the month of December 2014. PHCPI0 = 140.5.

CUF = the Capacity Utilization Factor between 70% and 100%, provided that if the actual CUF is below 70% (the “Minimum Capacity Utilization Factor”), the Capacity Price shall be calculated based on the Capacity Fee and quantity associated with the Minimum Capacity Utilization Factor.

The corresponding Capacity Fee price component for given Capacity Utilization Factor is set forth in the Table below: Capacity Fees for Specific Capacity Utilization Factors CAPACITY FEE LOCAL PRICE COMPONENTS (PHP/kWh) C.U.F.

Capital Recovery (LCRCUF)

Fixed O&M (LFOMCUF)

100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% 89% 88% 87% 86% 85% 84%

2.2944 2.3176 2.3412 2.3654 2.3900 2.4152 2.4409 2.4671 2.4939 2.5213 2.5493 2.5780 2.6073 2.6372 2.6679 2.6993 2.7314

0.6204 0.6267 0.6331 0.6396 0.6463 0.6531 0.6600 0.6671 0.6743 0.6818 0.6893 0.6971 0.7050 0.7131 0.7214 0.7299 0.7386

83%

2.7643

0.7475

82% 81% 80% 79% 78% 77% 76% 75% 74% 73% 72% 71% 70%

2.7980 2.8326 2.8680 2.9043 2.9415 2.9797 3.0189 3.0592 3.1005 3.1430 3.1867 3.2315 3.2777

0.7566 0.7659 0.7755 0.7853 0.7954 0.8057 0.8163 0.8272 0.8384 0.8499 0.8617 0.8738 0.8863

For the resulting CUF which is not a whole number, the corresponding Capacity Fee Price Component shall be computed using the formula below:

LCRCUF = LFOM CUF =

LFOMCUF = the local component of the Fixed O&M fee in PhP/ kWh at the given CUF. PHCPIn-1 = Philippine Consumer Price Index of the calendar month prior to the month corresponding to the Billing Period, for All Income Households – All Items (2006=100),

CUF

LFOM

LFOM @100%

Where,

CUF

LCRCUF

- is the local component of the Capital Recovery fee in PHP/kWh at the given CUF. LCR@100% – is the local component of the Capital Recovery fee in PHP/kWh at 100% CUF. LFOMCUF – is the local component of the Fixed O&M fee in PHP/kWh at the given CUF. LFOM @100% – is the local component of the Fixed O&M fee in PHP/kWh at 100% CUF. CUF – is the Capacity Utilization Factor between 70% and 100%, provided that if the actual CUF is below 70% (the “Minimum Capacity Utilization Factor”), the Capacity Price shall be calculated based on the Capacity Fee and quantity associated with the Minimum Capacity Utilization Factor.

The Capacity Utilization Factor (CUF) shall be computed as follows: CUF = max Where: Q ACTUAL CC HT EHTO

= the actual quantity of energy, in kWh, delivered to LEYECO IV at the Delivery Point in the Billing Period = the Contracted Capacity, in kWh, as set forth in Schedule 1 = the total number of hours in such Billing Period = the sum of the duration, in Equivalent Hours, of Scheduled Outages and Unscheduled Outages in such Billing Period C. 2. Energy Fee and Energy Charge The Energy Fee is the component of the Contract Price allocated to pay for the coal, including Government Charges, designated as the Energy Fee in Schedule 1 of the PSA as adjusted from time to time due to changes in the delivered price of coal and Governmental Charges. The Energy Fee shall be computed in accordance with the following formula:

= the actual energy delivered, in kWh, to the Buyer at the Delivery Point for the Billing Period. = is the Contracted Capacity in kW. = is the total number of hours in the Billing Period. = the sum of the duration, in Equivalent Hours, of Scheduled Outages and Unscheduled Outages in such Billing Period = the CapacityFee in PhP/kWh for a given CUF in a Billing month. = the local component of the Capital Recovery Fee in PhP/kWh at the given CUF.

LCR@100%

Energy Charge = Q ACTUAL x EF EF = 0.2874 x Where: Q ACTUAL

+ 1.5256 x

+ 0.2375

= Actual energy delivered by GNPOWER to LEYECO IV, in kWh, for the Billing Period

EF

= Energy Fee in PhP/kWh

PHCPIn-1

= Philippine Consumer Price Index of the calendar month prior to the month

PHCPI0

ICI n-1 ICI0

corresponding to the Billing Period, for All Income Households – All Items (2006 = 100), as published by the Philippine National Statistics Coordination Board (or as substitute or replacement agency, as the case may be) = base Philippine Consumer Price Index for the month of December 2014 for All Income Households – All Items (2006 = 100), as published by the Philippine National Statistics Coordination Board (or its substitute or replacement agency, as the case may be) = Indonesian Coal Price Index of the calendar month prior to the month corresponding to the Billing Period, in US$/Mton = Base Indonesian Coal Price Index for the month of December 2014 = US$67.28/Mton

D. Currency of Payment The Contract Price shall be paid by LEYECO IV in Philippine Peso only.

E. Scheduled and Unscheduled Outages Under the PSA,GNPOWER shall be allowed Scheduled and Unscheduled Outages not to exceed forty-five (45) days per Contract Year, during which time reduced or no delivery will be available to LEYECO IV. Unutilized Equivalent Hours for Scheduled Outages and Unscheduled Outages in the Contract Year cannot be carried forward to subsequent Contract Year.

F. Replacement Power During any Scheduled or Unscheduled Outages, GNPOWER and LEYECO IV shall cooperate to arrange for Replacement Power from, including but not limited to, other facilities of GNPOWER, third parties and the WESM. GNPOWER, at its own cost and in consultation with LEYECO IV, shall negotiate on behalf of LEYECO IV for the supply and delivery of capacity and energy from third parties for a price as close as possible to the Contract Price G. Prompt Payment Discount Provided LEYECO IV has no arrears from previous billings, including the Security Deposit or any unpaid charges or penalties, if LEYECO IV pays the invoice amount in full within 10 days from its receipt of the invoice, LEYECO IV shall be credited on the next subsequent bill a PPD equivalent to eight centavos per kilowatt-hour (PhP0.08/kWh).

H. Security Deposit In the event of LEYECO IV’s failure to pay on Due Date, GNPOWER shall draw, at its option, from the Security Deposit on the working day immediately following the Due Date. Within thirty (30) Business Days from the Start of Delivery Date, LEYECO IV shall establish the Security Deposit and submit to GNPOWER documentary proof sufficient to allow GNPOWER to draw therefrom. The Security Deposit shall be in the form of cash and or irrevocable letter of credit and shall be equivalent to LEYECO IV’s projected maximum electricity bill, to be determined not later than sixty (60) calendar days prior to Start of Delivery.

COMMERCIAL ADVANTAGE OF THE GENERATION RATE AND IMPACT ON LEYECO IV’S RETAIL RATES 15. LEYECO IV, together with the other Region 8 ECs, needs to address the insufficiency of its power supply due to the increasing demand within its franchise area and the expiration of its contract with NPC-PSALM; 16. Currently, LEYECO IV receives a total of 10 MW from its existing suppliers. With an annual average growth rate of 3.89%, LEYECO IV forecasts that its peak demand from 26 December 2015 to 25 December 2016 will be 11.5 MW; 17. The additional supply from GNPOWER will significantly augment the supply deficiency of LEYECO IV and will decrease the adverse effects thereof by providing a stable and adequate source of electricity; 18. Among alternative suppliers capable of providing additional energy to LEYECO IV and the rest of the Region 8 ECs, GNPOWER’s rates proved to be more reasonable and competitive. While GNPOWER’s offer is primarily intended for its base load requirements, the Capacity Factor Pricing under the PSA provides flexibility in the DUs’ utilization of the Contracted Capacity; 19. LEYECO IV simulated a rate impact analysis which resulted in a PhP0.1307/kWh decrease with the execution of the PSA with GNPOWER, to wit: Simulation of Generation Mix Rate with GNPOWER for the year 2016 Forecasted 2015 Quantity (kWh)

Amount (PhP)

Percent Share (%)

Resulting Capacity Factor (%)

2016 Average Rate (P/kWh)

GMCP

35,587,500.00

171,763,068.75

50.63%

81%

4.8265

GCGI

26,280,000.00

138,295,872.00

37.39%

100%

5.2624

GNPOWER

6,935,000.00

40,360,713.90

9.87%

77%

5.8233

Power Supplier

WESM

1,488,925.05

17,841,172.42

2.12%

TOTAL

70,291,425.05

368,260,827.07

100%

Weighted Average Rate (Php/ kWh)

5.2391

11.9826

Simulation of Generation Mix Rate with GNPOWER for the year 2016 Amount (PhP)

Percent Share (%)

Resulting Capacity Factor (%)

2016 Average Rate (Php/ kWh)

35,587,500.00

171,763,068.75

50.63%

81%

4.8265

26,280,000.00

138,295,872.00

37.39%

100%

5.2624

WESM

8,423,925.05

67,385,788.98

11.98%

TOTAL

70,291,425.05

377,444,729.73

100%

Forecasted 2015 Quantity (kWh)

GMCP GCGI

Power Supplier

GNPOWER

Weighted Average Rate (Php/kWh)

5.3697

7.9993

Generation Rate Impact: -0.1307 Notes: 1. Analysis and simulations is based on coop’s forecasted 2016 hourly load profile 2. GNPower rate based on effective price 3. GMCP rate is based on (i) Capacity Fee at Resulting Capacity Factor; (ii) November 14 coal and shipping prices; (iii) Jan 1 2015 ~ Feb 2 2015 FOREX; (iv) PPD not included 4. WESM Prices is based on 2011~2013 Average prices Ex-ante & Ex-post Price per Nodal Point of LEYECO IV (4MAASI_T2L2&4ORMOC_T1L1)

20. In addition to the lower generation cost of the power supply from GNPOWER, LEYECO IV is also entitled to a Prompt Payment Discount (PPD), if conditions are met, equivalent to PhP0.08/kWh; 21. In compliance with Rule 20 of ERC Rules of Practice and Procedure relative to the submission of supporting documents and information for the approval of the PSA and the rate structure embodied therein, Applicants attached to the Application following documents to form integral parts thereof: ANNEX “I” “J” “K” “K-1” “L” “M” “N” “O” “P” “Q” “R” “S”

“T”

“U”

DOCUMENT Executive Summary of the PSA Rate Impact Simulation Sources of Funds/Financial Plans with Cost Assumptions Compact Disc containing a soft copy of Annex “K” Breakdown of the Contract Price Sample Computation of Power Rates GNPOWER’s Audited Financial Statement for 2014 GNPOWER’s Certificate of Registration No. WA-13-01-001 valid until January 2018 LEYECO IV’s Distribution Development Plan (DDP) LEYECO IV’s Actual and Forecasted Energy and Demand LEYECO IV’s Average Daily Load Curve LEYECO IV’s Board Resolution authorizing the approval and signing of the PSA, authorizing its Board President, Carlito P. Subaan and/or Officer-in-Charge, Brenda Flores-Ampolitod, to sign the PSA on behalf of LEYECO IV, and the filing of the Application with the ERC for the approval of the PSA LEYECO IV’s Secretary’s Certificate attesting to the resolution of its Board of Directors authorizing its Officer-in-Charge, Brenda Flores-Ampolitod, to jointly file with the ERC the Application for the approval of the PSA between LEYECO IV and GNPOWER, and designating Engr. Janet L. Notarte as witness GNPOWER’s General Partner’sCertificate attesting to the resolution of the Board to execute the subject PSA with LEYECO IV, designating signatories thereto

reference in support of herein Prayer for the issuance of Provisional Authority (PA) to implement the subject PSA; 32. LEYECO IV and GNPOWER pray for the issuance of a PA or interim relief prior to final decision pursuant to Rule 14 of the ERC Rules of Practice and Procedure, to wit: “Section 3. Action on the Motion. – Motions for provisional authority or interim relief may be acted upon with or without hearing. The Commission shall act on the motion on the basis of the allegations of the application or petition and supporting documents and other evidences that applicant or petitioner has submitted and the comments or opposition filed by any interested person, if there be any.”

33. Considering that a substantial amount of time is needed to evaluate the documents submitted to support the approval of herein Application, Applicants seek consideration of the Commission to approve the instant Application, immediately, albeit, provisionally; 34. Owing to the short term of the contract, which is only for a period of one (1) year, a PA is all the more imperative to allow the timely delivery of energy by GNPOWER to LEYECO IV, which is set to start on 26 December 2015 at 12:00 A.M.; 35. The Region 8 EC’s, including Leyeco IV, after careful evaluation if theywill defer the commencement of the delivery due to delayed filing, decided and required GNPower to commence its delivery immediately after its previous power supply agreement expired last December 25, 2015, this beingthe reasonable plan to mitigate the risks of WESM exposure,speciallywith the assumption that the 2015 occurrence of El Nino has an adverse impact on the supply of electricity and the WESM price,particularly during the summer season. Moreover, it was projected, as shown in the table below4, that the exposure to volatile market prices will cause significant increases in prudential guarantee payments which will constrain Region 8 ECs to avail of high interest-bearing loans in order to comply with PEMC requirement;

22. Applicants reserve their right to submit other documents, either in the course of the hearing or as may be required by the Commission.

COMPLIANCE WITH PRE-FILING REQUIREMENTS 23. Applicants manifest compliance with the prefiling requirements mandated under the Implementing Rules and Regulations of the EPIRA and Rule 6 of the ERC Rules of Practice and Procedure, to be established by the following: 23.1 Certifications acknowledging receipt of the Application with annexes to be issued by the Legislative Bodies of Pasig City, Municipality of Hilongos, and the Province of Leyte, to be appended as Annexes “V”, “W” and“X”, respectively 23.2. Notarized Affidavit of Publication stating that the Application was published in a newspaper of general circulation within LEYECO IV’s Franchise Area, to be appended to the Application as Annex “Y”; and 23.3. Complete newspaper issue where the Application was published, to be appended to the Application as Annex “Y-1”, and the relevant page thereof where the Application appears, as Annex “Y-2”; MOTION FOR CONFIDENTIAL TREATMENT OF ANNEXES“H-2” to “H-8”,“K”, and “K-1” 24. Under Rule 4 of the ERC Rules of Practice and Procedure, a party to any proceeding before the Commission may request that certain information not be disclosed and be treated as confidential, by describing with particularity the information to be treated as confidential, specifying the ground for the claim of confidential treatment of the information and, if applicable, specifying the period during which the information must not be disclosed; 25. LEYECO IV requests for the confidential treatment of Annexes “H-2” to “H-8”of the Application, consisting ofthe MOA among Region 8 ECs, e-mails confirming participation of interested suppliers in the bidding, Final Instructions to Bidders, Bid Forms, Bid Evaluation Slips, Comparison of Bids, and Notice of Award, respectively. These annexes show the individual offers of the bidders which participated in the R8 JCPSP. The Region 8 ECs, LEYECO IV included, are bound by their undertaking to secure and keep in confidence the offers and the proposed terms of supply, so as not to prejudiceor pre-empt any future CSPs in which these bidders will participate.Otherwise, LEYECO IV and the rest of the Region 8 ECs may be held liable for damages for breach of confidentiality, and eventually, risk their good relations with the suppliers concerned; 26. Similarly, GNPOWER respectfully moves for the confidential treatment of Annexes “K” and “K-1” hereof, consisting of GNPOWER’s Sources of Funds and Financial Plans with Cost Assumptions.These annexes, exclusively owned by GNPOWER, contain information which areconsidered part of its business and trade secrets. As such, GNPOWER has the sole proprietary interest and will be unduly prejudiced should they be disclosed to the public; 27. These annexes contain numbers, data, formula, methodology, and calculations involving valuable and sensitive commercial, financial information reflecting GNPOWER’s business operations and financial trade secrets. Therefore, GNPOWER’s confidential, proprietary, and private information included in the aforesaid annexes should be protected from public dissemination.

Otherwise, such information can be illegally and unfairly utilized by business competitors who may use the same for their own private gain and to the irreparable prejudice of GNPOWER.Negotiations with prospective customers may also be affected.

28. The information contained in Annexes “K” and “K1”, constitute “trade secrets”, for which GNPOWER has actual and valuable proprietary interest. As explained by the Supreme Court, a trade secret may consist of any formula, pattern, device, or compilation of information that is used in one’s business and gives the employer an opportunity to obtain an advantage over competitors who do not possess the information . It is indubitable that trade secrets constitute proprietary rights and jurisprudence has consistently acknowledged the private character of trade secrets . Further, as ruled in Garcia vs. Board of Investments , trade secrets and confidential, commercial and financial information are exempt from public scrutiny; 29. Accordingly, Annexes “H-2” to “H-8”, “K” and “K1” be accorded confi dential treatment. As suc h, they are to be used exclusively by the Commission and for the sole purpose of evaluating this Application, thereby protecting these data from unnecessary public disclosure;

36. The additional power from GNPOWER is needed to curtail any power interruptions that may be experienced by LEYECO IV’s member-consumers due to inadequate power supply in the region; 37. To further support the Prayer for PA, anaffidavit emphasizing the necessity thereof is attached to the Application as Annex “Z”, to form an integral part thereof; PRAYER 38. Applicants LEYECO IV and GNPower pray before the Commission that: i.

All information attached as Annexes “H-2” to “H8”, “K” and “K-1” to the Application be treated as confidential; ii Pending hearing on the merits, a PA be issued authorizing the immediate implementation of the subject PSA, including the rate structure therein, as applied; iii.

After due notice and hearing, the instant Application, the PSAand the rate structure contained therein be duly approved; and iv.

In the event that a Final Authority shall be issued after GNPOWER starts actual delivery of power to LEYECO IV under the terms of the subject PSA, said Final Authority be retroactively applied to the date of such actual delivery.

The Commission has set the Application for the hearing, expository presentation, pre-trial conference, and presentation of evidence on 10August 2016 (Wednesday) at ten o’clock in the morning (10:00 A.M.) at LEYECO IV’s Main Office, Brgy.

Lamak, Hilongos, Leyte.

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 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 wish to have a copy of the Application may request from the Applicants that they be furnished with the same, prior to the date of the initial hearing. Applicants are hereby directed to furnish all those making such request with copies of the Application and its attachments, subject to the reimbursement of reasonable photocopying costs. Any such person may likewise examine the Application and other pertinent records filed with the Commission during the standard office hours.

WITNESS, the Honorable Chairman, JOSE VICENTE B. SALAZAR, 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 18th day of May 2016 in Pasig City.

30. In accordance with Section 1(b), Rule 4 of the ERC Rules of Practice and Procedure, Applicants submit one (1) copy each of Annexes “H-2” to “H-8”, “K” and “K-1” in a sealed envelope, with the envelope and each page of the documents stamped with the word “Confidential”.

PRAYER FOR PROVISIONAL AUTHORITY

ATTY. TTY. NATHAN J. MARASIGAN Chief of Staff Office ffice of the Chairman and CEO 1 2 3 4

31.

All the foregoing allegations are re-pleaded by

Air Philippines Corporation vs. Pennswell Inc., G.R. No. 172835, December 13, 2007.

Ibid., 177 SCRA 374 (1989).

Additional equivalent rate due to additional Prudential Guarantee required by PEMC (for the undelivered contracted capacity from GNPower) with a conservative loan interest of 6% per annum and baseload load factor of 81%. ( T S - J U LY 4 /11, 2 016)

M O N D AY : j u LY 4 , 2 0 1 6

A8

opinion

ADELLE chuA editor

lettertotheeditor@thestandard.com.ph

opinion

The essenTial duTerTe

[ EDI TORI A L ]

Laying the groundwork

So i See Lito Banayo

IN fIlINg a resolution calling for an elected convention to amend the Constitution, incoming House Speaker and Davao del Norte Rep. Pantaleon Alvarez has taken the first step in carrying out President Rodrigo Duterte’s plan to change the country’s form of government from a unitary to a federal system.

The resolution presumably reflects the President’s preference for an elected constitutional convention, instead of a constituent assembly made up of members of Congress, and if approved, could avoid a prolonged debate over the method by which Charter change will be carried out.

Alvarez, like the President, asserts that a federal system would accelerate growth, especially in the countryside, many parts of which have been neglected by the central government.

Alvarez hopes to pass the concurrent resolution by September, after which a more detailed schedule for constitutional change will be laid down.

Even before then, however, preparations—and serious study—will need to be made.

“It may sound very simple but changing a system of government is an arduous task,” says Davao City congressman Karlo Alexei Nograles. “going to the nitty-gritty of dividing our regions into federal states and creating new administrative positions would require long hours of serious deliberation.”

A Charter change initiative is also likely to trigger heated debates over whether the amendments should cover only provision of the Constitution that deal with the system of government, or include more contentious provisions on the economy, patrimony, national security and term limits.

Already, outgoing Speaker feliciano Belmonte is using the President’s Charter change initiative to push his advocacy for a relaxation of constitutional restrictions on foreign ownership of businesses that he believes are limiting the country’s ability to compete in the global economy.

This is not necessarily a bad thing, but it will certainly complicate matters by adding a new dimension to the federalism debate.

Outside the country, the recent fallout over the United Kingdom’s decision to leave the European Union suggests some lessons that the Duterte administration might do well to apply to its own drive to institute a federal system of government here. first among these lessons is the need for detailed and careful planning.

In the aftermath of the UK vote, it became apparent that those who had campaigned passionately in favor of Britain’s exit from the EU—or “Brexit”—had no idea what to do after they won. As the dust begins to settle only now, it is clear that the absence of an exit plan magnified the political and economic shocks that ensued, including a stock market plunge and a precipitous decline in the value of the pound.

A second lesson from Brexit that the federalists might want to apply is the need for a facts-based public awareness campaign and an informed debate on the issue.

Inconceivable but true, Britons were not only clueless about what would happen if they left the EU, many did not even seem to know what the European Union was, and eight hours after they voted to leave the union, many of them were turning to google to find the answers to their questions. Indeed, many of those who voted to leave the union were responding to an emotional issue that was certainly not all that the EU was about—immigrants.

As we contemplate a federal future, our decisions must be based, not on hot-button issues and slogans, but on a careful consideration of the facts and a crystal-clear idea of where we as a nation wish to go.

The candor of friendship penSéeS fr. ranhiLio caLLangan aquino For Aristotle, friendship did not just refer to the “bonding” of two people, the union of kindred spirits. It had to do with the life of society and was allied to what we consider today to be concepts distant from it—law and justice. It is friendship of the Aristotelian genre that the Catholic Church has for government. on the level of persons it is

the relation to which bishops invite leaders of government and of society.

Now, that might be the last thing in the minds of those who have listened to the verbal tussle, acrimonious at times, between some bishops and President Digong. “I believe in God, but in no one else.”

That is the present profession of faith of the President of the Philippines. Quite clearly, he means that he will not bow to the Church. That is quite all right. In fact, Pope Francis has repeatedly warned church officials against expecting,

much less demanding, courtesies, obeisance and obsequiousness.

That will not mean, of course that the Church will assume the inertness of a bag of flour, ready to be kicked around at anybody’s whim. of course, the only problem with President Digong’s profession of faith in one God and his equally fervent profession of non-faith in anything else is the elementary proposition that God is not to be worshipped as may suit our fancy, but as he demands that he be worshipped. That

A9

the Bible is outdated for one who does not know how to read it.

theological point can be taken up at another time.

The maturity of the Church should be manifest in its offer of friendship even when there is hardly eagerness on the part of the other for it.

And friends tell each other the truth. There lies the crucial difference between a friend and a sycophant.

And it should not be too difficult to understand why Aristotle saw in friendship the foundation of society organized by law, one that aspires through its institutions to be just. And the Church’s offer of friendship consists fundamentally of offering to tell the government the truth—from the experience of

parish priests assigned to the farthest reaches of the archipelago, and the eternal truths expressed in its stories and narratives of its Scriptures. The Bible is outdated for one who does not know how to read it. Fortunately, though, much of humanity has had the wisdom to see beyond the myths and legends, its cultural boundaries and the datedness of its forms into the “truths that God wanted to reveal for the sake of our salvation.”

Is the Church willing to listen to the ugly truths by which its detractors

hope to shame and silence it? Without a doubt. John Paul II, Benedict XvI and Francis have apologized for the abuses of clerics and for their sins especially against children. Is the government willing to listen to the Church? If that ignoramus’ chant about the “separation of church and state” is again intoned, it should more than do to insist that a government that does not listen invites less placid, more agitated and certainly more perilous eruptions of discontent. on Sunday, Archbishop Soc villegas

the Standard Published Monday to Sunday by Philippine Manila Standard Publishing Inc. at 6/F Universal Re Building, 106 Paseo de Roxas, corner Perea St., Legaspi Village, Makati City. Telephone numbers 832-5554, 8325556, 832-5558 (connecting all departments), (Editorial), 832-5546, (Advertising), 832-5550. P.O. Box 2933, Manila Central Post Office, Manila. Website: www.thestandard.com.ph; E-mail: contact@thestandard.com.ph

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preached a homily at his Cathedral at Dagupan City. The choir I direct, the Coro de San Jacinto, sang for the 10 o’clock morning Mass, and we listened—listened well—to what he had to say. Jesus commissioned his disciples as servants of the community, and their service consisted of preaching the Kingdom that in many ways relativized the kingdoms of earth and in healing the infirmities of body and soul. But disciple and community alike must be ready for the cross, because it Continued on A11

Rolando G. Estabillo Ramonchito L. Tomeldan Chin Wong/Ray S. Eñano Francis Lagniton Joyce Pangco Pañares Adelle Chua Romel J. Mendez Roberto Cabrera

EvEN those who had worked with him in the campaign were skeptical that he could deliver an inaugural address in five minutes. or even 20. They had heard him go for as much as two hours standing on a platform before a huge crowd, effortlessly, untiringly perorating about every subject that entered his mind. Nothing read, nothing ghostwritten, nothing rehearsed.

Thus, but for the few who had read his speech before delivery, his first address to the nation and the world as President of the Philippines came as a surprise.

Yet ever playful, he chose to ad lib a few lines, about being ready to work for the nation. It was mercifully short and clipped, again a surprise for those who had expected the ad lib to be protracted. one could imagine how the then president-elect, days before his rendezvous with destiny, poured out his thoughts to lawyer Melchor Quitain, his faithful city administrator of Davao, almost like dictation. Quitain, who perhaps aside from Bong Go, knows Duterte more than anybody else, simply arranged Duterte’s thoughts into a cohesively short speech. Even the quotations were apt, capturing the essential Duterte. That the President quoted roosevelt, who led the New Deal that gave America’s poor hope after the Depression of 1929, is a reflection of his populist philosophy. That he, however, quoted the Great Emancipator’s lines cautioning against inciting class hatred—“you cannot strengthen the weak by weakening the strong, or help the poor by discouraging the rich”—is a reflection of his strong socio-economic beliefs, which he himself practiced in Davao City. This was about allowing business to prosper with ease, mindful only of their adherence to the law and proper regulations.

The American ambassador must have been comforted by Duterte’s quotations from their greatest statesmen. The Chinese ambassador must have hoped for a line from Confucius, or even Mao. Nonetheless, he seemed quite happy as he sat in rapt attention at the Ceremonial Hall of Malacañang.

The ending was again quintessential Duterte: “I have long adopted as my article of faith the following lines…I have no friends to serve, I have no enemies to harm.” No special favors; just the national interest. No vindictiveness, just upholding the rule of law.

Sometime in August last year, when the nation was yet anticipating whether

Continued on A11

Publisher Managing Editor Associate Editors News Editor City Editor Senior Deskman Art Director Chief Photographer

Emil P. Jurado Chairman Emeritus, Editiorial Board

Anita F. Grefal Treasury Manager Maan Ilustre Advertising and Marketing Head Edgar M. Valmorida Circulation Manager

M O N D AY : j u LY 4 , 2 0 1 6

A8

opinion

ADELLE chuA editor

lettertotheeditor@thestandard.com.ph

opinion

The essenTial duTerTe

[ EDI TORI A L ]

Laying the groundwork

So i See Lito Banayo

IN fIlINg a resolution calling for an elected convention to amend the Constitution, incoming House Speaker and Davao del Norte Rep. Pantaleon Alvarez has taken the first step in carrying out President Rodrigo Duterte’s plan to change the country’s form of government from a unitary to a federal system.

The resolution presumably reflects the President’s preference for an elected constitutional convention, instead of a constituent assembly made up of members of Congress, and if approved, could avoid a prolonged debate over the method by which Charter change will be carried out.

Alvarez, like the President, asserts that a federal system would accelerate growth, especially in the countryside, many parts of which have been neglected by the central government.

Alvarez hopes to pass the concurrent resolution by September, after which a more detailed schedule for constitutional change will be laid down.

Even before then, however, preparations—and serious study—will need to be made.

“It may sound very simple but changing a system of government is an arduous task,” says Davao City congressman Karlo Alexei Nograles. “going to the nitty-gritty of dividing our regions into federal states and creating new administrative positions would require long hours of serious deliberation.”

A Charter change initiative is also likely to trigger heated debates over whether the amendments should cover only provision of the Constitution that deal with the system of government, or include more contentious provisions on the economy, patrimony, national security and term limits.

Already, outgoing Speaker feliciano Belmonte is using the President’s Charter change initiative to push his advocacy for a relaxation of constitutional restrictions on foreign ownership of businesses that he believes are limiting the country’s ability to compete in the global economy.

This is not necessarily a bad thing, but it will certainly complicate matters by adding a new dimension to the federalism debate.

Outside the country, the recent fallout over the United Kingdom’s decision to leave the European Union suggests some lessons that the Duterte administration might do well to apply to its own drive to institute a federal system of government here. first among these lessons is the need for detailed and careful planning.

In the aftermath of the UK vote, it became apparent that those who had campaigned passionately in favor of Britain’s exit from the EU—or “Brexit”—had no idea what to do after they won. As the dust begins to settle only now, it is clear that the absence of an exit plan magnified the political and economic shocks that ensued, including a stock market plunge and a precipitous decline in the value of the pound.

A second lesson from Brexit that the federalists might want to apply is the need for a facts-based public awareness campaign and an informed debate on the issue.

Inconceivable but true, Britons were not only clueless about what would happen if they left the EU, many did not even seem to know what the European Union was, and eight hours after they voted to leave the union, many of them were turning to google to find the answers to their questions. Indeed, many of those who voted to leave the union were responding to an emotional issue that was certainly not all that the EU was about—immigrants.

As we contemplate a federal future, our decisions must be based, not on hot-button issues and slogans, but on a careful consideration of the facts and a crystal-clear idea of where we as a nation wish to go.

The candor of friendship penSéeS fr. ranhiLio caLLangan aquino For Aristotle, friendship did not just refer to the “bonding” of two people, the union of kindred spirits. It had to do with the life of society and was allied to what we consider today to be concepts distant from it—law and justice. It is friendship of the Aristotelian genre that the Catholic Church has for government. on the level of persons it is

the relation to which bishops invite leaders of government and of society.

Now, that might be the last thing in the minds of those who have listened to the verbal tussle, acrimonious at times, between some bishops and President Digong. “I believe in God, but in no one else.”

That is the present profession of faith of the President of the Philippines. Quite clearly, he means that he will not bow to the Church. That is quite all right. In fact, Pope Francis has repeatedly warned church officials against expecting,

much less demanding, courtesies, obeisance and obsequiousness.

That will not mean, of course that the Church will assume the inertness of a bag of flour, ready to be kicked around at anybody’s whim. of course, the only problem with President Digong’s profession of faith in one God and his equally fervent profession of non-faith in anything else is the elementary proposition that God is not to be worshipped as may suit our fancy, but as he demands that he be worshipped. That

A9

the Bible is outdated for one who does not know how to read it.

theological point can be taken up at another time.

The maturity of the Church should be manifest in its offer of friendship even when there is hardly eagerness on the part of the other for it.

And friends tell each other the truth. There lies the crucial difference between a friend and a sycophant.

And it should not be too difficult to understand why Aristotle saw in friendship the foundation of society organized by law, one that aspires through its institutions to be just. And the Church’s offer of friendship consists fundamentally of offering to tell the government the truth—from the experience of

parish priests assigned to the farthest reaches of the archipelago, and the eternal truths expressed in its stories and narratives of its Scriptures. The Bible is outdated for one who does not know how to read it. Fortunately, though, much of humanity has had the wisdom to see beyond the myths and legends, its cultural boundaries and the datedness of its forms into the “truths that God wanted to reveal for the sake of our salvation.”

Is the Church willing to listen to the ugly truths by which its detractors

hope to shame and silence it? Without a doubt. John Paul II, Benedict XvI and Francis have apologized for the abuses of clerics and for their sins especially against children. Is the government willing to listen to the Church? If that ignoramus’ chant about the “separation of church and state” is again intoned, it should more than do to insist that a government that does not listen invites less placid, more agitated and certainly more perilous eruptions of discontent. on Sunday, Archbishop Soc villegas

the Standard Published Monday to Sunday by Philippine Manila Standard Publishing Inc. at 6/F Universal Re Building, 106 Paseo de Roxas, corner Perea St., Legaspi Village, Makati City. Telephone numbers 832-5554, 8325556, 832-5558 (connecting all departments), (Editorial), 832-5546, (Advertising), 832-5550. P.O. Box 2933, Manila Central Post Office, Manila. Website: www.thestandard.com.ph; E-mail: contact@thestandard.com.ph

onLine

can be accessed at: thestandard.com.ph

MEMBER

PPI

Philippine Press Institute The National Association of Philippine Newspapers

preached a homily at his Cathedral at Dagupan City. The choir I direct, the Coro de San Jacinto, sang for the 10 o’clock morning Mass, and we listened—listened well—to what he had to say. Jesus commissioned his disciples as servants of the community, and their service consisted of preaching the Kingdom that in many ways relativized the kingdoms of earth and in healing the infirmities of body and soul. But disciple and community alike must be ready for the cross, because it Continued on A11

Rolando G. Estabillo Ramonchito L. Tomeldan Chin Wong/Ray S. Eñano Francis Lagniton Joyce Pangco Pañares Adelle Chua Romel J. Mendez Roberto Cabrera

EvEN those who had worked with him in the campaign were skeptical that he could deliver an inaugural address in five minutes. or even 20. They had heard him go for as much as two hours standing on a platform before a huge crowd, effortlessly, untiringly perorating about every subject that entered his mind. Nothing read, nothing ghostwritten, nothing rehearsed.

Thus, but for the few who had read his speech before delivery, his first address to the nation and the world as President of the Philippines came as a surprise.

Yet ever playful, he chose to ad lib a few lines, about being ready to work for the nation. It was mercifully short and clipped, again a surprise for those who had expected the ad lib to be protracted. one could imagine how the then president-elect, days before his rendezvous with destiny, poured out his thoughts to lawyer Melchor Quitain, his faithful city administrator of Davao, almost like dictation. Quitain, who perhaps aside from Bong Go, knows Duterte more than anybody else, simply arranged Duterte’s thoughts into a cohesively short speech. Even the quotations were apt, capturing the essential Duterte. That the President quoted roosevelt, who led the New Deal that gave America’s poor hope after the Depression of 1929, is a reflection of his populist philosophy. That he, however, quoted the Great Emancipator’s lines cautioning against inciting class hatred—“you cannot strengthen the weak by weakening the strong, or help the poor by discouraging the rich”—is a reflection of his strong socio-economic beliefs, which he himself practiced in Davao City. This was about allowing business to prosper with ease, mindful only of their adherence to the law and proper regulations.

The American ambassador must have been comforted by Duterte’s quotations from their greatest statesmen. The Chinese ambassador must have hoped for a line from Confucius, or even Mao. Nonetheless, he seemed quite happy as he sat in rapt attention at the Ceremonial Hall of Malacañang.

The ending was again quintessential Duterte: “I have long adopted as my article of faith the following lines…I have no friends to serve, I have no enemies to harm.” No special favors; just the national interest. No vindictiveness, just upholding the rule of law.

Sometime in August last year, when the nation was yet anticipating whether

Continued on A11

Publisher Managing Editor Associate Editors News Editor City Editor Senior Deskman Art Director Chief Photographer

Emil P. Jurado Chairman Emeritus, Editiorial Board

Anita F. Grefal Treasury Manager Maan Ilustre Advertising and Marketing Head Edgar M. Valmorida Circulation Manager

A10 THE BASICS OF FEDERALISM NEVER have discussions on federalism as a form of government RITA LINDA been more vibrant V. JIMENO as they are now.

And why not? No less than President Rodrigo R. Duterte has put it among the top priorities of his government.

To the general public, federalism is still a hazy concept which they have been hearing about but cannot, perhaps, concretely visualize. That is why, advocates of federalism, led by Senate President Koko Pimentel, Speaker of the House Pantaleon Alvarez, and the members of the 2005 Consu ltative Commission on Charter Change—led Only those

by Dr. Jose Abueva, Lito benefiting from Lorenzana, and the present system Raul Lambino —have started resist change. information dissemination campaigns by holding forums in Metro Manila and the provinces.

While the general idea that federalism represents genuine decentralization and empowerment of regions or states is fairly easy to understand, many ask, how will powers be distributed between the central government and the states or regions? In a federal form of government, states or regions will have the power of self-determination.

They can decide for themselves, for example, if they will focus on ecotourism, agriculture, industrialization, trade, etc. They can also decide for themselves how to raise revenues to achieve the direction they wish to take. With the budget they will have, based on their resources, they will also determine for themselves what to give their constituents in terms of education, health services and social services. Thus, the powers of taxation and the functions of providing social services, education, health, environmental protection, etc. will belong to the states or regions. The general powers that will be left to the central government will be national security, coinage or currency, international and foreign relations, among a few.

States will be able to develop themselves because they will now get to keep 80 percent of the revenues they collect while contributing only 20 percent to the federal or central government. This is a complete departure from the present system where all taxes collected from the regions, except local taxes from licenses and permits, go to the national government. The national government then gives back to the regions or provinces a pittance by way of internal revenue allotment which, based on last year’s allocation, was a mere 14 percent of the entire national budget.

How many states will there be? The answer depends on how the provinces or districts will be divided—as may be proposed by either a Constitutional Convention or a Constituent Assembly. There could be 10, 11 or a bit more.

The aggrupation or composition of a state could depend on ethnicity, language, geographical proximity, religion, and other factors.

Some ask, what if the poor regions or provinces cannot yet stand on their own—what will happen to them? Federalization will be a work in progress for a significant period of time because no state or region will be forced to become a federal state unless its constituents desire so. The poor regions will continue to receive internal revenue allocations until they hold a plebiscite to determine

OUT OF THE BOX

M O N D AY : J U LY 4 , 2 0 1 6

OPINION

lettertotheeditor@thestandard.com.ph

THE FOURTH OF JULY, BROUGHT TO YOU BY BELGIUM, BRAZIL AND CHINA

By Afshin Molavi IT’S the fourth of July. What could be more American than to pop a cold Budweiser, put a hot dog on the grill, slather it with Heinz ketchup, watch the kids chase the Good Humor Ice Cream truck, and maybe catch the latest summer blockbuster?

Well, technically, you’d be drinking a beer owned by a Brazilian-Belgian conglomerate, your hot dog may well have come from Smithfield Foods, a Chineseowned company, the Heinz ketchup partly owned by a Brazilian private equity group, the Good Humor Ice Cream truck part of a British-Dutch conglomerate, and the movie house you visit will likely belong to Dalian Wanda, a Chinese real estate giant that controls more US cinema screens than any American company.

You might be surprised to learn how many iconic American brands have been bought up by foreign companies. Indeed, in this era of suspicion toward free trade and globalization, you might be downright alarmed.

Your ThinkPad laptop? Owned by Lenovo of China. The Chrysler Building? Owned by the Abu Dhabi Investment Council. The Chrysler car company itself? Owned by Italian automaker Fiat. Your favorite Sara Lee snacks?

Owned by Grupo Bimbo of Mexico, the world’s biggest bread maker. Gerber baby food, Holiday Inn hotels, Vaseline, Alka-Seltzer, Hellman’s Mayo and on and on: all owned by non-American conglomerates.

But before you choke on your hot dog or reach for a stiff Jim Beam (now owned by a Japanese conglomerate), calm down. Global companies generally buy American icons for good old-fashioned capitalist reasons: They want to make money. They have no incentive to destroy the brand. Rather, they want to enhance it, grow its market, improve the bottom line, even rescue it from oblivion.

Take Volvo, for example. In 2010, the Chinese auto maker Geely bought the struggling Swedish car maker in a high-profile deal that announced corporate China’s rise to the world. At the time, Volvo was on the verge of extinction; six years and $11 billion of investment later, it reported record profits in 2015 and is a leading player in the driverless car movement.

Who owned Volvo as it was struggling to survive?

Ford Motors of the US. While foreign purchases can be disruptive to companies, foreign direct investment has a long record of creating jobs. Foreign companies and their US affiliates employ more than 8.5 million people (6 million directly, and 2.5 million indirectly) in the US, according to the International Trade Administration.

They also contribute to innovation by spending more than $50 billion a year on research. If we take into account productivity growth arising from this foreign investment in manufacturing, this adds another 3.5 million jobs, the ITA says. All told: 12 million Americans owe their jobs to foreign investment.

Take South Carolina. The state may be “Trump Country,” but it’s also “foreign direct investment if their people desire to already join as a federal state. What is important for people to remember is that no one will be caught unaware, or wake up and suddenly find himself in a federal system of government. The process of shifting to the federal form from the present unitary form will require constitutional reform or charter change. And constitutional reform is a constituent act—one that must have the consent of the citizens. Thus, a plebiscite needs to be conducted after a massive information drive.

Will we still have a president to elect should we shift to the federal form? It is possible. Or, we can have a prime minister who will head the government and a president who will head the state. Again, the choice is for the people to make when they vote in a plebiscite. The United States of America is the best example of a federalpresidential form. Most federal republics are

country.” The state has attracted investment from companies in 40 countries, with some 127,000 South Carolinians employed by majority-owned foreignaffiliated companies, according to the ITA. That accounts for nearly 8 percent of the state’s private sector employment. Foreign investment also powers South Carolina’s export machine: The state exports nearly $31 billion worth of goods, on par with entire countries like Egypt, oil-rich Ecuador, or Bulgaria. Its top export destination? China.

Some Americans may still quail to see a totem of Americana like Anheuser-Busch fall under a global beer behemoth headquartered in Leuven, Belgium. But the parent company gave pride of place to the company they bought in 2008: its name, after all, is AnheuserBusch Inbev. Bud Light remains the bestselling beer in America, and Budweiser is growing in popularity across emerging markets. If you owned the stock (ticker symbol: BUD) in your pension plan at the time of the purchase, you’ve seen it more than triple in value.

To be sure, whenever a larger company buys another, cost-cutting will likely lead to lost jobs, but that’s the case whether the purchaser is American or Chinese.

US private equity firms that buy American brands have been ruthless in their “cost-cutting.” What’s more, a recent Commerce Department report notes that Americans who work for foreign-owned companies or affiliates in the US are generally better paid than those who work for US-owned firms.

Even as the US slips down in rankings that measure everything from education to healthcare access to global competitiveness, America stands above the rest of the world in its ability to attract foreign direct investment. All told, the US has attracted nearly $3 trillion of FDI stock, almost double the amount of its closest competitor, the United Kingdom—a gap that will likely grow with Brexit, notwithstanding some signs of disquiet over US hyper-partisanship.

And, no, the Chinese are not buying up America.

Most of that investment comes from advanced economies, notably Japan, the United Kingdom, and Germany. The Commerce Department notes that 2015 was a record year, bringing in $348 billion, with some 70 percent of that investment going toward America’s ailing manufacturing sector. In 2015, foreign buyers also purchased some $87 billion in real estate. Unless those houses and commercial buildings can fly, those assets are staying home, and contributing to a range of associated service industries.

Meanwhile, US companies are by far the world’s biggest foreign investors, with nearly $5 trillion in foreign direct investment. And lest one think US firms are piling solely into sweatshop manufacturing in Asia, the vast majority of US investments are in advanced economies, mostly in Europe.

So, go ahead, crack that Bud—and rest assured that even if companies in Belgium, Brazil, and China ultimately own some of what you buy, eat, and watch this weekend, you’ll still be doing right by America. Bloomberg headed by a prime minister; others have a monarch and a prime minister.

What is worth noticing is that the progressive countries of the world have all adopted federalism.

Some of them are the United States of America, Germany, Canada, Australia, Austria, Belgium, Brazil, Switzerland, Russia, South Africa, United Arab Emirates, United Kingdom, Spain, France, Denmark, Finland, Singapore and Malaysia.

Our unitary system of government, where power and financial resources are concentrated in the central government, has failed the Filipino people.

It has spawned poverty, corruption and a host of other problems. Only those benefiting from the present system resist change. The time to break loose from a shackling system is now.

Email: ritalindaj@gmail.com Visit: www.jimenolaw.com.ph

M O N D AY : J U LY 4 , 2 0 1 6

A11

OPINION lettertotheeditor@thestandard.com.ph

An environmentAl victory (And cAutionAry tAle)

By Faye Flam FOR once, the news on the environmental front isn’t just good; it could be taken as a point of pride.

This week, scientists announced that the infamous ozone hole over Antarctica is starting to heal. In 1987, the world agreed to phase out chemicals that were destroying a layer of gas in the upper atmosphere that shields the planet from damaging ultraviolet light. This week, in the journal Science, researchers said they’re finally starting to detect results. In September, the hole had shrunk by 1.5 million square miles from its peak in 2000.

There is a sobering side to this story, though: The chemicals responsible for the ozone problem break down in the atmosphere much more quickly than carbon dioxide connected to global warming does. That’s why the same MIT atmospheric chemist who announced the ozone improvement also argues that climate change caused by burning fossil fuels is essentially “irreversible.” For scientists, optimism and pessimism have to be tempered by the realities of chemistry and reaction rates.

That chemist, Susan Solomon, explained that while most pollutants break down quickly, atmospheric carbon dioxide is very stable—it doesn’t go anywhere for a long time.

According to her calculations, it will take hundreds or even thousands of years for the excess created by coal plants and cars to be taken up by plants or absorbed into the oceans.

And it will take even longer for the warmed atmosphere and oceans to cool back down.

That’s why so many scientists are keen to act now rather than wait.

Any worsening of the situation will

get locked in for generations to come.

The ozone-layer story, she said, does inspire some hope that people can be proactive when it comes to global environmental problems.

In the 1970s, scientists realized that common chemicals called chlorofluorocarbons would destroy ozone, and satellite measurements showed a loss of about 3 percent per decade. While this didn’t create any obvious day-to-day problems, it scared scientists because ozone in the upper atmosphere prevents Earth from getting a lethal dose of ultraviolet radiation. Without the ozone layer, there would be no life.

By the 1980s, scientists observed a much more disturbing trend—more than half of the stratospheric ozone had been lost over Antarctica.

Her investigations back then helped explain what was going on. She found that the chemicals responsible for ozone depletion— called chlorofluorocarbons— were destroying ozone much faster over Antarctica through a chemical reaction that takes place in very cold conditions on the surface of special clouds called polar stratospheric clouds. For that work, she was awarded the National Medal of Science. (The researchers who discovered the link to chlorofluorocarbons in the first place were awarded the Nobel Prize.)

The UN’s Montreal Protocol of 1987 banned the use of chlorofluorocarbons, which had been used as a propellant for hair spray and deodorant and a coolant for refrigerators and air conditioners. Some voiced concern that the treaty would deprive people of refrigeration. But substitutes were found, and life went on. As a

The candor... From A9 was no walk in the park for which Jesus came into the world.

The Church in the Philippines offers a friendship that treads the way of the cross. And to be silenced and cowed by slur and insult is to refuse the cross that it must carry. And the candor of friendship insofar as the Church is concerned will be the ceaseless call to conversion—her own conversion and the conversion of those to whom she is sent as friends. Each day that the ministers of the Church say the Official Prayer of the Church and offer the Eucharist, they strike their

#failocracy

global call to action, she said, “this was unprecedented.”

Luckily for us, Solomon said, the ozone-depleting chemicals eventually break down into compounds that fall to the lower atmosphere where they dissolve in rain and get carried to the ground.

She said scientists had expected the ozone hole to start improving by now, and were watching for changes using balloons and satellites. The hole is actually a seasonal event—it opens each Antarctic winter. The improvement, she said, is that the time period the hole stays open is shortening.

But when Solomon looked at carbon dioxide and global warming, she got a very different result: CO2 was going to hang around in the atmosphere for thousands of years.

This wasn’t a big surprise to many scientists.

“We think the repair of the ozone hole is slow, but it’s fast compared to reversing the CO2 increase,” he said.

It’s not that the climate will never recover, but that it will happen so slowly that on human timescales, it might as well be forever.

After Solomon’s paper on the irreversibility of climate change came out, she followed with another paper in Science, explaining that “irreversible” doesn’t mean “unstoppable.” Some degree of change is inevitable, and future centuries will be affected by our emissions, for sure. But for the most part, scientists say it’s not too late to prevent the most severe consequences, which would include flooding of major cities and a new American dust bowl. The difference hinges on the decisions we make over the next few decades.

Bloomberg

breast in the ancient words of contrition…Miserere mei Deus, secundum magnam miscericordiam tuam...Confiteor Dei Omnipotenti…Mea culpa, mea culpa, mea maxima culpa. But this consciousness of frailty, the experience of the weight of sin that she bears will not diminish her friendship for government to which, in candor, she will always preach the need for conversion. rannie_aquino@sanbeda.edu.ph rannie_aquino@csu.edu.ph rannie_aquino@yahoo.com

The essential... From A9 or not the feisty mayor would run for president in May 2016, before an audience of bankers and business people, he used similar lines: “First, I hold it as an article of faith that no progress can ever be achieved unless there is law and order”…

“My second article of faith is equally simple: A leader must always listen to his people…

You learn from the rich as well as the poor, the schooled and the un-schooled”…

“Let business flourish by making it easy to do business, and let government be one of utmost transparency and accountability.”

Note how he stressed these principles in his first imperatives to his Cabinet and the entire bureaucracy: “I abhor secrecy and instead advocate transparency in all government contracts, projects and business transactions from submission of proposals… to consummation.”

And juxtaposing his thoughts back to when he addressed the business community in August of 2015, I refer to these lines: “It is from the poor that my third article of faith developed…that it is the responsibility of government…to use resources optimally so as to uplift the lives of the marginalized.”

The “metamorphosis” of Rodrigo Roa Duterte from folksy city mayor to presidential candidate who dramatically captured the anguish of the Filipino people in raw language, and now to the 16th President of the Republic of the Philippines, has indeed happened. We witnessed it last June 30.

From the simple elegance of the Ceremonial Hall to the simple finger foods served at the reception, to the brevity of his address, even to the symbolism of the Philippine flag embroidered on his almost barely laced barong Pilipino, the metamorphosis struck. But the essential Duterte was left unchanged.

The style may have become more refined, but the man remains unchanged.

The articles of faith, the bedrock principles he has always stood for, as prosecutor and mayor and now President, remain the same.

May God bless him as he strives to lead the meaningful change our people have long aspired for.

And may God give us all the wisdom and the fortitude to help arrest the “erosion of faith and trust in government” and “have the courage and the will to change ourselves.”

“Love of country, subordination of personal interests to the common good, concern and care for the helpless and the impoverished—these are among the lost and faded values that we seek to recover and revitalize as we commence our journey to a better Philippines.”

Indeed, let us all “together, shoulder to shoulder, take the first wobbly steps in this historic journey” with this man we elected our leader.

chong ardivilla

m o n day : J uly 4 , 2 0 1 6

A12

sports sports@thestandard.com.ph

PH Cuppers eye revenge vs Taipei THE Cebuana Lhuillier-Philippine Davis Cup Team wants to exact revenge against its 2015 tormentor Chinese Taipei, with the home-court advantage this time as it battles the Taiwanese on July 15 to 17 at the Philippine Columbian Association.

The team will be composed of the same line-up that blanked Kuwait, 5-0, last March, bannered by one of the world’s top doubles’ players in Treat Huey.

Also back for another call of duty are world-ranked doubles’ player Ruben Gonzales, former world juniors’ no. 9 Jeson Patrombon and 2009 Australian Open Juniors’ Doubles’ champion Francis Casey

Alcantara. Also back as non-playing team captain is multi-titled college coach Karl Sta. Maria.

“I am so excited about this match with Chinese Taipei. I’m confident we will do better this time as our players have been training and competing internationally the past months. Chinese Taipei may have the higher-ranked players, but I believe we have a solid team, where

all players can both play singles and doubles. I also think that the homecourt advantage will work to our players’ favor this time,” said Philippine Tennis Association Chairman of the Board and Cebuana Lhuillier President and CEO Jean Henri Lhuillier.

The members of the Cebuana Lhuillier-Philippine Davis Cup Team have been busy preparing for the match by playing in international competitions and have actually done well.

Huey is currently playing in the Wimbledon Open after reaching the quarterfinals of the Aegon Open Nottingham Men’s Doubles. Gonzales, on the other hand, is riding on the

crest of a final and semifinal doubles’ appearances of Futures tournaments in Netherlands and France. Patrombon reached the singles’ quarterfinals of an ITF Futures in Hong Kong and will be ready to take on the cudgels of being the no. 1 singles’ netter of the country. Alcantara made a semifinal and quarterfinal finish in two tough ITF tournaments in Hong Kong.

“Our players are battle-ready.

Their performances in the past weeks are very encouraging and I’m confident they’ll carry it through in the match with Taipei. This is our best chance to move back to AsiaOceania Group next year and a victory here will put us one step closer to doing that,” added Lhuillier.

Members of the Cebuana Lhuillier-Philippine Davis Cup Team are shown here, namely (from left) Treat Huey, Ruben Gonzales, Jeson Patrombon, Karl Sta. Maria, Francis Casey Alcantara and Philta Chairman of the Board and Cebuana Lhuillier President and CEO Jean Henri Lhuillier.

La Salle-Lipa, UST near Shakey’s Girls’ volley semifinals DE La Salle-Lipa picked up its second straight win in convincing fashion while University of Santo Tomas needed to rally from a set down to match the defending champion’s hot start in the Shakey’s Girls’ Volleyball League of Champions Season 14 at Ynares Sports Arena in Pasig late Saturday.

DLS-Lipa, led by skipper Jamie Frago and guest player Angelique Alba, sized up Southwestern U in

the opening set before pouring all its might to fashion out a 25-19, 25-6 victory in a follow-up to its 25-19, 25-18 win over Ateneo de Davao Friday to wrest the solo lead in Pool A. UST, on the other hand, had to bounce back from an opening set setback to thwart the upset bid of Holy Rosary College, carving out a 20-25, 25-21, 25-20 decision to notch its second straight victory in Pool B of the two-division com-

Fil-Am rips record FIL-AMERICAN runner Trenten Beram clocked a record-breaking 21.12 seconds in the men’s 200-meter dash last June 24 in the PATAFA Time Trials at the Philsports oval in Pasig City.

Beram, a scholar at University of Connecticut, surpassed the Philippine record of Ralph Waldy Soguilon, who took it in 21.17 seconds way back in 2007.

He won over Archand Christian Bagsit, who settled for the silver in 21.68 seconds.

Bryan Mercado, an aspirant for the national team, was third in 21.72 seconds.

Philippine Athletics Track and Field Association president Philip Ella Juico said several outstanding candidates to the national team are showing up at the Philsports Complex track oval for PATAFA’s periodic performance trials.

Peter Atencio

petition among regional winners of the league backed by MyPhone, Asics and Mikasa and organized by Metro Sports.

Central Philippine U, which lost to UST, 14-25, 17-25, Friday, bounced back into semis contention as it repulsed Kings’ Montessori School, 10-25, 25-20, 25-22, to tie its victim at 1-1.

Holy Family Academy also atoned for its 15-25, 25-18, 19-25 loss to National U in the first game

with a come-from-behind 2125, 25-21, 25-23 victory over the Ateneo de Davao side.

National U, which lost to DLSLipa in last year’s final of the annual event which produced the current stars in various commercial volley leagues today, was playing the winless Ateneo de Davao squad at presstime was fancied to join the defending champion in the lead heading to the last two qualifying days.

Red Cubs try to keep hold on NCAA lead Games today (The Arena, San Juan) 9 a.m.- San Sebastian vs Mapua (jrs) 10:45 a.m.- EAC vs San Beda (jrs) 12:30 p.m.-Arellano vs Jose Rizal (jrs) 2:15 p.m.- Perpetual vs St. Benilde (jrs) 4 p.m.- LPU vs Letran (jrs)

SAN Beda shoots to keep its stranglehold on the lead as it clashes with Emilio Aguinaldo even as Mapua and Arellano University try to keep in step with the leader Monday in the 92nd NCAA juniors’ basketball tournament at The Arena in San Juan City.

Drawing strength from the

troika of Ed Velasquez, Joshua Tagala and Carlo Obenza, the Cubs survived the fiesty Lyceum of the Philippines University Junior Pirates, 97-88, Thursday to book their second straight victory and remain at the helm.

Velasquez, Tagala and Obenza fired 16, 13 and 12 points, respectively, including a combined 22 points in the third quarter when the three turned a 45-48 halftime deficit into a double-digit lead San Beda eventually nursed to secure the win.

It was San Beda’s second win in a row after overpowering Letran, 107-74, last week.

A third could be coming against EAC, winless in two starts, in their

10:45 a.m. showdown.

“We’ll try to win as many games as we can,” said San Beda coach JB Sison, who is eyeing to steer the Taytay-based school to an unprecedented eighth straight high school championship.

Mapua and Arellano University, also unbeaten in two outings, will attempt to keep in pace with San Beda as the two tangle with San Sebastian at 9 a.m. and Jose Rizal at 12:30 p.m., respectively.

Meanwhile, the league will take a week-long break in full support of the Gilas Pilipinas basketball team seeing action in the Olympic Qualifying Tournament from July 5 to 8 at the MOA Arena in Pasay City.

BaliPure, Pocari seek finals’ slot Games today (Philsports Arena, Pasig) 1 p.m. – IEM vs.

Sta. Elena (S Turf battle for third) 4 p.m. – Cignal vs. Air Force (S Tuf finals) 6 p.m. – BaliPure vs Pocari Sweat (V-League finals)

POCARI Sweat and BaliPure slug it out one last time tonight, not for the crown but for a crack at it, in what promises to be another thriller of a sudden death for the second championship berth in the Shakey’s V-League Season 13 Open Conference at the Philsports Arena in Pasig.

Coaches of first finalist Air Force will surely be on hand to watch and scout these two talented teams which just two nights ago figured in another thrilling five-setter before a big weekend crowd at The Arena in San Juan with the never-say-die Lady Warriors pulling off a 25-23, 13-25, 2523, 21-25, 15-8 squeaker to set up this rubber match for the right to face the Jet Spikers for the crown.

Gametime is at 6 p.m. to be shown live on ABS-CBN Sports + Action Channel 23 and via streaming on www.vleague.ph, according to the organizing Sports Vision.

Japanese KOs Diale THE Philippines’ Ardin Diale lost his Orient Pacific Boxing Federation flyweight title after a fourth-round knockout to unbeaten 20-year-old Japanese KO artist Daigo Higa at the Korakuen Hall in Tokyo.

The end came at 2:39 of the fourth round in a clear mismatch, with Higa scoring his 10th straight knockout victory.

From the start of the fight, Higa had the Filipino in trouble connecting with a right cross as Diale, who has a nasty habit of ducking, while keeping his hands low, felt the power of the Japanese youngster.

Higa dropped Diale for a second time with a vicious body shot after a combination to the head.

The Filipino champion barely beat the count as Higa stood on the neutral corner ropes figuring that the fight was over, but it was not. After a series of solid combinations, Diale once again fell on his knees and the referee counted him out.

With the loss, Diale dropped to 31-10-3 with 15 knockouts.

Diale, who won the vacant OPBF crown with a unanimous 12-round decision over Renoel Pael last Dec. 2 retained the title with a another unanimous decision win over Jonathan Francisco last February 20 at the Taguig City Sports Complex. Ronnie Nathanielsz

m o n day : J uly 4 , 2 0 1 6

A13

sports sports@thestandard.com.ph

Webster confident he can play for NZ in FIBA meet

By Peter Paul Duran

Some 26 members of an Aeta village in Floridablanca, Pampanga were invited to interact with the NZ national team in celebration of the 50-year diplomatic relations between the Philippines and New Zealand. PETER PAUL DURAN

Teng leads Mighty team to Jones Cup AFTER missing the chance to play for Gilas Cadets in last year’s SEA Games, La Salle star Jeron Teng will lead the Mighty Sports ApparelsPhilippine squad that will see action in the 2016 Jones Cup on July 23 to 30 in Taiwan.

The do-it-all forward will be one Mighty Sports’ top attractions in the annual tournament since the PBA-backed Gilas 4.0 can’t make it this time as it is preparing for a bigger mission – the Olympic Qualifying Tournament which starts tomorrow.

Aside from the 6’3” Teng, other local players tapped to play for the Mighty Sports Apparels-PH squad are former Xavier School standouts Ty Tang, Jeric Teng and Gab Banal and ex-Ateneo star

Von Pessumal.

Also being eyed to beef up the squad are Kiefer Ravena and Kevin Ferrer of Gilas Cadets and Mike Tolomia and Mac Belo of Phoenix.

University of the Philippines coach Bo Perasol has been tapped

by Mighty Sports Apparels President Dr. John Sy to call the shots for team that is tasked to regain the crown won the last time by Gilas four years ago.

Perasol will be assisted by

Charles Tiu, Angelo Wongchuking with Jean Alabanza as team manager.

The team will have former Alaska import Rob Dozier and Rain or Shine’s Wendell McKines as reinforcements.

ASEAN Basketball League standout Jason Brickman, a FilAm, is also in the radar according to Alabanza.

“They are the best available players around because most of the players we want have commitments to PBA D-League and to their respective schools,” said Alabanza.

Arellano University ace Jio Jalalon could be a welcome addition to the team but the wily and deadly guard can’t be tapped due to the ongoing NCAA.

Strong finish keys Cargo Movers’s win Games on July 12 (Cuneta Astrodome) 4:15 pm – RC Cola-Army vs Petron 6:15 pm – Cignal vs Standard Insurance

THE vaunted strength and firepower of F2 Logistics were in full display as the Cargo Movers made quick work of Foton, 25-11, 2523, 25-14, in the 2016 Philippine Superliga All-Filipino Conference women’s volleyball tournament Sunday at The Arena in San Juan.

Ara Galang and Aby Marano were the stars of the show as the Cargo Movers came up with a strong finishing kick to coast to an easy victory in this prestigious club tourney bankrolled by KLab Cyscorpions, Asics, Grand Sports,

Mikasa, Mueller and Senoh with TV5 as official broadcast partner.

F2 Logistics is now on top of the team standings with a 4-0 win-loss card, while heavyweights RC Cola-Army and Petron, who fashion an identical 3-0 slate, will clash for a share of the lead when the league resumes on July 12.

Galang, the top overall pick in the recent PSL Draft, had eight kills to finish with 11 points, while the veteran Marano provided the defensive muscle as she tallied three of her 10 points on blocks to intimidate Maika Ortiz, Cherry Rondina and Patty Orendain.

Jaja Santiago, the 6’4” middle blocker who was converted into a wing spiker in preparation for the AVC Asian Women’s Club Championship was the lone bright spot

for the Tornadoes as she finished with nine kills, two blocks and two aces for a total of 13 points.

“I think our cohesiveness and familiarity with each other played a major role in this win,” said F2 Logistics coach Ramil de Jesus, referring to their fluid chemistry that also led De La Salle University to the UAAP women’s volleyball crown. “Foton looked tentative at the start, so we jumped the gun and took advantage of that.”

True enough, the Tornadoes were a picture of frustration early on.

Although Santiago breathed some life into the Tornadoes’ sputtering performance in the second set, 19-21, a pair of errors doomed their chances while Kim Dy unleashed a booming kill for the set point.

COREY Webster’s health is still a cause for concern, but the New Zealand men’s national basketball team is positive that everything will pan out great in the FIBA Olympic Qualifying Tournament which starts tomorrow.

“He’s doing fine, he’s showing promising signs and he’s feeling well now,” said Tall Blacks’ head coach Paul Henare in an open-training session at the Cuneta Astrodome on Saturday.

Webster did not participate in the training session as fitness staff worked on his calf.

The team was careful not to put too much stress on Webster’s leg, but assured that the combo guard is all set for the Rio qualifiers.

“He’s pretty much on track, and we’re getting him ready for the first game against Gilas.

He’s making progress and we’re

just hoping that everything goes well,” members of the team management said.

The promising 27-year-old had a bit of a scare when he hobbled off in the middle of their tune-up game against Latvia, pointing to some pain in his calf.

But the Tall Blacks breathed a sigh of relief when team doctors cleared Webster of any major injury a day later.

“I feel pretty good. Everyday (my calf) is getting better,” said Webster while giving some basketball tips to kids from an Aeta community in Pampanga.

Some 26 members of an Aeta village in Floridablanca, Pampanga were invited to interact with the NZ national team in celebration of the 50-year diplomatic relations between the Philippines and New Zealand.

“I have a few days to get myself in game-shape and come game time, I think I’ll be a hundred percent.”

Tall Blacks like their chances

By Maxine Lagman THE New Zealand basketball team is aching to win its match against Gilas Pilipinas as it fights for a spot in the Rio Olympic games.

The Tall Blacks arrived in Manila Friday night and immediately trained the following day for their games against the Gilas Pilipinas on July 6 and France on July 7.

The Kiwis have been training hard in an effort to clinch a berth in the Olympics and offer fans an exciting competition.

“The Tall Blacks and Gilas have played some very competitive matches in recent years, and our upcoming game will be a critical one for both teams looking to progress to the 2016 Olympic games in Rio de Janeiro,” New Zealand Ambassador David Strachan said.

New Zealand’s coach Paul Henare looks forward to reuniting with Gilas Pilipinas coach Tab Baldwin, who was a former coach of the Tall Blacks. Henare played under Baldwin in the 2002 FIBA World Cup run.

“I’m very excited to meet him again. [And] this will be a very tough battle,” said Henare.

Veteran team captain Mika Vu-

kona is thrilled of their coming games, telling every player on his team to “trust the process and trust yourself.”

After an hour of training on Saturday, the Tall Blacks also made time to teach and inspire chosen kids from the Aeta community from Pampanga at the Cuneta Astrodome.

The community’s barangay chief Anita Kasupanan said that the children were very excited to train with the New Zealand basketball team.

“Eto ‘yung unang beses na mangyayari sa buhay nila na makapaglaro kasama nu’ng mga basketbolista.

Pangarap nila ‘yan, kaya excited sila maglaro,” she said.

Strachan believes that it was important to give back and help the underprivileged communities in realizing their dreams to be someone new. The activity was also a great opportunity to highlight the cultural and sporting links between Filipinos and the Kiwis.

The Tall Blacks also hope to see plenty of support from Filipinos during the tournament.

“We expect the atmosphere to be incredible and the challenge from Gilas Pilipinas to be a great one as they, too, chase a place in Rio,” Henare said.

Kim Fajardo (9) of F2 sets up a teammate for a kill. ROMAN PROSPERO

Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE POWER SUPPLY AGREEMENT (PSA) BETWEEN BILIRAN ELECTRIC COOPERATIVE INC. AND GNPOWER LTD. CO. WITH PRAYER FOR CONFIDENTIAL ERC CASE NO. 2016-026 RC TREATMENT OF INFORMATION AND THE ISSUANCE OF PROVISIONAL AUTHORITY BILIRAN ELECTRIC COOPERATIVE, INC. (BILECO) AND GNPOWER LTD. CO. (GNPOWER), Applicants. x---------------------------------------------x NOTICE OF PUBLIC HEARING TO ALL INTERESTED PARTIES: On 15 March 2016, Biliran Electric Cooperative, Inc. (BILECO) and GNPower Ltd. CO. (GNPower) filed their joint Application for approval of their Power Supply Agreement (PSA), with prayer for confidential treatment of information and issuance of provisional authority.

In support of said Application, BILECO and GNPower alleged, among others, the following: 1.

Applicant BILECO is a non-stock, non-profit electric cooperative, duly organized and existing under and by virtue of the laws of the Philippines, with principal office address atBrgy. Caraycaray, Naval, Biliran. It is authorized to distribute and provide electricity services to its member-consumers in the Municipalities of Naval, Almeria, Biliran, Kawayan, Culaba, Caibiran, Cabucgayan, actually the whole Province of Biliran, except Maripipi, all in the Province of Leyte (collectively, the “Franchise Area”); 2.

Copies of BILECO’s Articles of Incorporation, ByLaws, Certificate of Registration and Certificate of Franchise are attached to the Application as follows: Annex “A” “B” “C” “D”

Document BILECO’s Articles of Incorporation BILECO’s By-laws Certificate of Registration with the National Electrification Administration (NEA) Certificate of Franchise

3.

Applicant GNPOWER is a duly registered limited partnership existing under Philippine laws, engaged in the business of developing, constructing, operating and owning power generation facilities and in the sale and trade of electric power. Its principal office is at 28th Floor, Orient Square Building, Don FranciscoOrtigas Jr. Road, Ortigas Center, Pasig City; 4.

GNPOWER’s pertinent documents evidencing its due registration as a limited partnership are appended to the Application, as follows: Annex “E” “F”

proportion to their declared demand. A bidder was allowed to offer to supply capacity that is less than or equal to the aggregated baseload requirement in any or all of the contract years in increments of 1MW. In the event that some winning bidders offered less than 11 MW, the loads were optimally allocated in such a way that the blended price of generation resulting from the R8 JCPSP transaction is almost the same for all ECs. In the event multiple bidders who collectively satisfy the total baseload demand of R8 ECs are declared winners for any contract year, all winning bidders entered into individual PSAs with each of the 11 ECs; 12.4 Bidders who signified their intention to join by buying the bid documents, attended pre-bid conferences where they gave their comments and sought clarification on the bidding requirements and process. The BAC issued bid bulletins and the Final Instruction to Bidders; 12.5 The process followed the 2-envelope system – the legal requirements and proof of financial and technical capability in the first, and the commercial offer in the second. Bids were evaluated based on an Evaluation Framework and Evaluation Methodology released to the Bidders; 12.6 After evaluating the bids of each supplier, on 14 November 2014, the BAC declared Applicant GNPOWER as a winning bidder of a total of 43 MW for Contract Year 2016, with a Lowest Calculated Responsive Bid with a Base Price offer of PhP5.0481/kWh and an evaluated Effective Price of PhP6.6658/kWh; 12.7 On 14 September 2015,GNPOWER and the Region 8 ECs commenced the final negotiations for the other commercial and technical terms and conditions of the PSA and negotiated the further reduction of the Contract Price from PhP5.0481/ kWh to PhP4.9653/kWh and for the increase in capacity to 52MW; Attached to the Application are copies of the relevant documents issued relative to the Joint Competitive Selection Process undertaken by the Region 8 ECs for the supply of their aggregated base load demand: Annex “H” “H-1” “H-1-a” “H-2” “H-3” “H-4” “H-5” “H-6” “H-7” “H-8”

Document Certificate of Registration issued by the Securities and Exchange Commission (SEC) GNPOWER’s Amended Articles of Partnership

14.

A.

B.

Dec. 26, 2014 – Dec. 25, 2015 Dec. 26, 2015 – Dec. 25, 2016 Dec. 26, 2016 – Dec. 25, 2017 Dec. 26, 2017 – Dec. 25, 2018

Aggregated Baseload 65 MW 78 MW 83 MW 93 MW

8.

The contracts of most of the Electric Cooperatives (ECs) in Region 8 with the National Power Corporation – Power Sector Assets and Liabilities Management Corporation (NPCPSALM) expired on 25 December 2014; 9.

On 07 November 2013, the eleven (11) ECs of Region 8 participated in the bidding for PSALM’s 200 strips of energy from the Unified Leyte Geothermal Power Plant, but lost; 10. Typhoon Yolanda hit the region on 08 November 2013 stalling any efforts to contract additional power supply and shifting the focus instead on the massive restoration efforts in the area; 11. Thus, the Region 8 ECs decided to bid out their power supply requirements for the period 2015-2018. In the middle of 2014, the Region 8 ECs conducted a Joint Power Supply Planning. Later, the Region 8 ECs decided, through a Memorandum of Agreement (MOA), to conduct a joint procurement of their short-term aggregated baseload requirement, specifically, their power supply needs beginning 26 December 2015 until 25 December 2016.From September to December 2014, the competitive bidding for the region’s power requirements was held; 12. For such purpose, a Bids and Awards Committee was created to conduct the Region 8 Joint Competitive Power Supply Procurement (“R8 JCPSP”) as follows: 12.1. The Region 8 ECs initially prepared their respective least-cost power supply plans and subsequently their aggregated baseload demand for competitive bidding; 12.2. The competitive tender was published and announced in the coverage areas of the Region 8 ECs. In addition, prospective bidders (Generation Companies, IPP Administrators and Wholesale Aggregators whose names are listed on the Department of Energy (DOE) website) were invited; 12.3. The capacity offered by the winning bidder/s was allocated among the eleven (11) Region 8 ECs in

ABSTRACT OF THE PSA AND OTHER RELATED INFORMATION The following are the salient features of the PSA: Term The Agreement shall be effective from 18 September 2015, the date of the execution of the PSA. For the delivery of the contracted capacity, it shall have a term of one (1) year, starting on 26 December 2015 (12:00 A.M.) to 25 December 2016 (12:00 M.N.) Contracted Capacity GNPOWER shall sell and deliver, or cause to deliver to BILECO a contracted capacity of 1MW at the delivery point of the facility.

Unutilized Capacity. The unutilized capacity of the Buyer may be made available for utilization of other Region 8 ECs or sold to the WESM.

STATEMENT OF FACTS 7.

The aggregated uncontracted baseload demand of Region 8 for the years 2015 to 2018is continually increasing as shown in the table below: Contract Duration

PHCPI0

= the base Philippine Consumer Price Index for the month of December 2014. PHCPI0 = 140.5.

CUF

= the Capacity Utilization Factor between 70% and 100%, provided that if the actual CUF is below 70% (the “Minimum Capacity Utilization Factor”), the Capacity Price shall be calculated based on the Capacity Fee and quantity associated with the Minimum Capacity Utilization Factor.

The corresponding Capacity Fee price component for a given Capacity Utilization Factor is set forth in the Table below: Capacity Fees for Specific Capacity Utilization Factors CAPACITY FEE LOCAL PRICE COMPONENTS (PHP/kWh) C.U.F.

Capital Recovery (LCRCUF)

Fixed O&M (LFOMCUF)

100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% 89% 88% 87% 86% 85% 84%

2.2944 2.3176 2.3412 2.3654 2.3900 2.4152 2.4409 2.4671 2.4939 2.5213 2.5493 2.5780 2.6073 2.6372 2.6679 2.6993 2.7314

0.6204 0.6267 0.6331 0.6396 0.6463 0.6531 0.6600 0.6671 0.6743 0.6818 0.6893 0.6971 0.7050 0.7131 0.7214 0.7299 0.7386

13. On 18 September 2015, BILECO and GNPOWER executed the subject PSA, providing the terms and conditions for the supply of 1MW baseload power to BILECO, to assure the adequate and reliable supply of power to BILECO’s franchise area;

5.

Applicants may be served with orders, notices and other legal processes of the Commission through its counsels of record; 6.

The instant Application is filed pursuant to Sections 23, 25, 43 (u), and 45 (b) of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA Law), itsImplementing Rules and Regulations, and other pertinent rules and regulations. A copy of the PSA signed by Applicantson 18 September 2015 is attached as Annex “G“ and forms an integral part of the Application;

Contract Year 2015 2016 2017 2018

Document Invitation to Bid Copy of the page of the newspaper where the Invitation was published Affidavit of Publication of the Invitation to Bid Memorandum of Agreement among Region 8 ECs Emails confirming participation of interested suppliers in the bidding Final Instruction to Bidders Bid Forms Bid Evaluation Slips Comparison of Bids Notice of Award

Items (2006=100), as published by the Philippine National Statistics Coordination Board (or its substitute or replacement agency, as the case may be).

C.

Exchange of Contracted Capacities. To maximize capacity utilization, Region 8 ECs may exchange quantities of their Contracted Capacities. (Exchange in MW Capacity Protocol annexed to the PSA) Contract Price Under Schedule 1 of the PSA, the Total Monthly Charge, before taxes, for a Billing Period shall be computed according to the following:

Total Monthly Charge = Capacity+Charge+Energy Charge C. 1. Capacity Fee and Capacity Charge The Capacity Fee is the component of the Contract Price allocated to pay for the cost, as well as, the operations and maintenance of the Facility and is designated as the Capacity Fee in Schedule 1 of the PSA as such may be adjusted from time to time based on BILECO’s CapacityUtilization Factor.

Where: Q ACTUAL CC HT

= the actual energy delivered, in kWh, to the Buyer at the Delivery Point for the Billing Period. = is the Contracted Capacity in kW. = is the total number of hours in the Billing Period.

EHTO

= the sum of the duration, in Equivalent Hours, of Scheduled Outages and Unscheduled Outages in such Billing Period

CFCUF

= the CapacityFee in PhP/kWh for a given CUF in a Billing month.

LCRCUF

= the local component of the Capital Recovery Fee in PhP/kWh at the given CUF.

LFOMCUF = the local component of the Fixed O&M fee in PhP/ kWh at the given CUF. PHCPIn-1 = Philippine Consumer Price Index of the calendar month prior to the month corresponding to the Billing Period, for All Income Households – All

83%

2.7643

0.7475

82% 81% 80% 79% 78% 77% 76% 75% 74% 73% 72% 71% 70%

2.7980 2.8326 2.8680 2.9043 2.9415 2.9797 3.0189 3.0592 3.1005 3.1430 3.1867 3.2315 3.2777

0.7566 0.7659 0.7755 0.7853 0.7954 0.8057 0.8163 0.8272 0.8384 0.8499 0.8617 0.8738 0.8863

For the resulting CUF which is not a whole number, the corresponding Capacity Fee Price Component shall be computed using the formula below:

LCRCUF = LFOM CUF = Where,

LCR@100% CUF

LFOM

LFOM @100% CUF

LCRCUF

- is the local component of the Capital Recovery fee in PHP/kWh at the given CUF.

LCR@100%

– is the local component of the Capital Recovery fee in PHP/kWh at 100% CUF.

LFOMCUF

– is the local component of the Fixed O&M fee in PHP/kWh at the given CUF.

LFOM @100%

– is the local component of the Fixed O&M fee in PHP/kWh at 100% CUF.

CUF

– is the Capacity Utilization Factor between 70% and 100%, provided that if the actual CUF is below 70% (the “Minimum Capacity Utilization Factor”), the Capacity Price shall be calculated based on the Capacity Fee and quantity associated with the Minimum Capacity Utilization Factor.

The Capacity Utilization Factor (CUF) shall be computed as follows: CUF = max Where: Q ACTUAL

= the actual quantity of energy, in kWh, delivered to BILECO at the Delivery Point in the Billing Period

CC

= the Contracted Capacity, in kWh, as set forth in Schedule 1 = the total number of hours in such Billing Period

HT EHTO

= the sum of the duration, in Equivalent Hours, of Scheduled Outages and Unscheduled Outages in such Billing Period C. 2. Energy Fee and Energy Charge The Energy Fee is the component of the Contract Price allocated to pay for the coal, including Government Charges, designated as the Energy Fee in Schedule 1 of the PSA as adjusted from time to time due to changes in the delivered price of coal and Governmental Charges. The Energy Fee shall be computed in accordance with the following formula: Energy Charge = Q ACTUAL x EF

EF = 0.2874 x

+ 1.5256 x

+ 0.2375

Where: Q ACTUAL

= Actual energy delivered by GNPOWER to BILECO, in kWh, for the Billing Period

EF

= Energy Fee in PhP/kWh

PHCPIn-1

= Philippine Consumer Price Index of the calendar month prior to the month corresponding to the Billing Period, for All Income Households – All Items (2006 = 100), as published by the Philippine National Statistics Coordination Board (or as substitute or replacement agency, as the case may be)

PHCPI0

= base Philippine Consumer Price Index for the month of December 2014 for All Income Households – All Items (2006 = 100), as published by the Philippine National Statistics Coordination Board (or its substitute or replacement agency, as the case may be)

ICI n-1

= Indonesian Coal Price Index of the calendar month prior to the month corresponding to the Billing Period, in US$/Mton

ICI0

= Base Indonesian Coal Price Index for the month of December 2014 = US$67.28/Mton D. Currency of Payment The Contract Price shall be paid by BILECO in Philippine Peso only.

E. Scheduled and Unscheduled Outages Under the PSA, GNPOWER shall be allowed Scheduled and Unscheduled Outages not to exceed forty-five (45) days per Contract Year, during which time reduced or no delivery will be available to BILECO. Unutilized Equivalent Hours for Scheduled Outages and Unscheduled Outages in the Contract Year cannot be carried forward to subsequent Contract Year.

F. Replacement Power During any Scheduled or Unscheduled Outages, GNPOWER and BILECO shall cooperate to arrange for Replacement Power from, including but not limited to, other facilities of GNPOWER, third parties and the WESM. GNPOWER, at its own cost and in consultation with BILECO, shall negotiate on behalf of BILECOfor the supply and delivery of capacity and energy from third parties for a price as close as possible to the Contract Price.

G. Prompt Payment Discount Provided BILECO has no arrears from previous billings, including the Security Deposit or any unpaid charges or penalties, if BILECO pays the invoice amount in full within 10 days from its receipt of the invoice, BILECO shall be credited on the next subsequent bill a PPD equivalent to eight centavos per kilowatt-hour (PhP0.08/kWh).

H. Security Deposit In the event of BILECO’s failure to pay on Due Date, GNPOWER shall draw, at its option, from the Security Deposit on the working day immediately following the Due Date. Within thirty (30) Business Days from the Start of Delivery Date, BILECO shall establish the Security Deposit and submit to GNPOWER documentary proof sufficient to allow GNPOWER to draw therefrom. The Security Deposit shall be in the form of cash and or irrevocable letter of credit and shall be equivalent to BILECO’s projected maximum electricity bill, to be determined not later than sixty (60) calendar days prior to Start of Delivery.

COMMERCIAL ADVANTAGE OF THE GENERATION RATE AND IMPACT ON BILECO’S RETAIL RATES 15. BILECO, together with the other Region 8 ECs, needs to address the insufficiency of its power supply due to the increasing demand within its franchise area and the expiration of its contract with NPC-PSALM; 16. Currently, BILECO receives a total of 3MW from its existing suppliers, out of its peak requirement of 1.451MW. With an annual average growth rate of 4%, BILECO forecasts that its peak demand from 26 December 2015 to 25 December 2016 will be 6.67MW; 17. The additional supply from GNPOWER will significantly augment the supply deficiency of BILECO and will decrease the adverse effects thereof by providing a stable and adequate source of electricity; 18. Among alternative suppliers capable of providing additional energy to BILECO and the rest of the Region 8 ECs, GNPOWER’s rates proved to be more reasonable and competitive. While GNPOWER’s offer is primarily intended for its base load requirements, the Capacity Factor Pricing under the PSA provides flexibility in the DUs’ utilization of the Contracted Capacity; 19. BILECO simulated a rate impact analysis which resulted in a Php0.0661 decrease /kWh decreasewith the execution of the PSA with GNPOWER, to wit: Simulation of Generation Mix Rate with GNPOWER for the year 2016

GMCP

21,290,565.96

102,914,597.50

62.48%

Resulting Capacity Factor (%) 80%

GNPOWER

8,760,000.00

48,715,236.00

25.71%

100%

WESM

4,024,020.20

20,354,136.31

11.81%

TOTAL

34,074,586.17

171,983,969.81

100%

Power Supplier

Forecasted 2016 Quantity (kWh)

Amount (PhP)

Percent Share (%)

2015 Average Rate (P/kWh) 4.8339 5.5611

Weighted Average Rate (P/ kWh)

5.0473

4.3310

Simulation of Generation Mix Rate without GNPOWER for the year 2016 Power Supplier

Forecasted 2016 Quantity (kWh)

Amount (PhP)

Percent Share (%)

Resulting Capacity Factor (%)

2015 Average Rate (P/kWh)

GMCP

21,290,565.96

102,914,597.50

62.48%

80%

4.8339

0.00

0.00

0.00%

0%

0

WESM

12,784,020.20

71,320,496.26

37.52%

TOTAL

34,074,586.17

174,235,093.76

100%

GNPOWER

Weighted Average Rate (P/ kWh)

5.4240

5.1133

Generation Rate Impact: -0.0661 Notes: •

Analysis and simulations is based on coop’s forecasted 2016 hourly load profile

•

GNPower rate based on effective price

• •

GNPower Resulting Capacity Factor of 80% GMCP rate is based on (i) Capacity Fee at Resulting Capacity Factor; (ii) November 14 coal and shipping prices; (iii) Jan 1 2015 ~ Feb 2 2015 FOREX; (iv) PPD not included WESM Prices is based on 2011~2013 Average prices of Ex-Ante & Ex-Post Price per Nodal Point

•

20. In addition to the lower generation cost of the power supply from GNPOWER, BILECO is also entitled to a Prompt Payment Discount (PPD), if conditions are met, equivalent to PhP0.08/kWh; 21. In compliance with Rule 20 of ERC Rules of Practice and Procedure relative to the submission of supporting documents and information for the approval of the PSA and the rate structure embodied therein, Applicants attached to the following documents to form integral parts hereof: ANNEX “I” “J” “K” “K-1” “L” “M” “N” “O” “P” “Q” “R” “S”

“T”

”U”

DOCUMENT Executive Summary of the PSA Rate Impact Simulation Sources of Funds/Financial Plans with Cost Assumptions Compact Disc containing a soft copy of Annex “K” Breakdown of the Contract Price Sample Computation of Power Rates GNPOWER’s Audited Financial Statement for 2014 GNPOWER’s Certificate of Registration No. WA-13-01-001 valid until January 2018 BILECO’s Distribution Development Plan (DDP) BILECO’s Actual and Forecasted Energy and Demand BILECO’s Average Daily Load Curve BILECO’s Board Resolution authorizing the approval and signing of the PSA, authorizing its Board President, Juan R. Avila Jr. and/or Officer-in-Charge, Gerardo N. Oledan, to sign the PSA on behalf of BILECO, and the filing of the Application with the ERC for the approval of the PSA BILECO’s Secretary’s Certificate attesting to the resolution of its Board of Directors authorizing its Officer-in-Charge, Gerardo N. Oledan, to jointly file with the ERC the Application for the approval of the PSA between BILECO and GNPOWER, and designating Engr. Laurence De la Pena as witness GNPOWER’s General Partner’sCertificate attesting to the resolution of the Board to execute the subject PSA with BILECO, designating signatories thereto

30. In accordance with Section 1(b), Rule 4 of the ERC Rules of Practice and Procedure, Applicants submit one (1) copy each of Annexes “H-2” to “H-8”, “K” and “K-1” in a sealed envelope, with the envelope and each page of the documents stamped with the word “Confidential”.

PRAYER FOR PROVISIONAL AUTHORITY 31. All the foregoing allegations are re-pleaded by reference in support of their Prayer for the issuance of Provisional Authority (PA) to implement the subject PSA; 32. BILECO and GNPOWER pray for the issuance of a PA or interim relief prior to final decision pursuant to Rule 14 of the ERC Rules of Practice and Procedure, to wit: “Section 3. Action on the Motion. – Motions for provisional authority or interim relief may be acted upon with or without hearing. The Commission shall act on the motion on the basis of the allegations of the application or petition and supporting documents and other evidences that applicant or petitioner has submitted and the comments or opposition filed by any interested person, if there be any.”

33. In recognition of the fact that a substantial amount of time is customarily needed to evaluate the documents submitted to support the approval of herein Application, Applicants seek consideration of the Commission to approve the instant Application, immediately, albeit, provisionally; 34. Owing to the short term of the contract, which is only for a period of one (1) year, a PA is all the more imperative to allow the timely delivery of energy by GNPOWER to BILECO, which is set to start on 26 December 2015 at 12:00 A.M.; 35. The Region 8 EC’s, including BILECO, after careful evaluation if theywill defer the commencement of the delivery due to delayed filing, decided and required GNPower to commence its delivery immediately after its previous power supply agreement expired last 25 December 2015, this beingthe reasonable plan to mitigate the risks of WESM exposure,speciallywith the assumption that the 2015 occurrence of El Nino has an adverse impact on the supply of electricity and the WESM price,particularly during the summer season.BILECO, Moreover, it was projected, as shown in the table below, that the exposure to volatile market prices will cause significant increases in prudential guarantee payments which will constrain Region 8 ECs to avail of high interestbearing loans in order to comply with PEMC requirement;

22. Applicants reserve their right to submit other documents, either in the course of the hearing or as may be required by the Commission; COMPLIANCE WITH PRE-FILING REQUIREMENTS 23. Applicants manifest compliance with the prefiling requirements mandated under the Implementing Rules and Regulations of the EPIRA and Rule 6 of the ERC Rules of Practice and Procedure, to be established by the following: 23.1 Certifications acknowledging receipt of the Application with annexes to be issued by the Legislative Bodies of Pasig City, Municipality of Naval, and the Province of Biliran, to be appended as Annexes “V”, “W” and “X”, respectively; 23.2 Notarized Affidavit of Publication stating that the Application was published in a newspaper of general circulation within BILECO’s Franchise Area, to be appended to the Application as Annex “Y”; and 23.3 Complete newspaper issue where the Application was published, to be appended to the Application as Annex “Y-1”, and the relevant page thereof where the Application appears, as Annex “Y-2”; MOTION FOR CONFIDENTIAL TREATMENT OF ANNEXES“H-2” to “H-8”,“K”, and “K-1” 24. Under Rule 4 of the ERC Rules of Practice and Procedure, a party to any proceeding before the Commission may request that certain information not be disclosed and be treated as confidential, by describing with particularity the information to be treated as confidential, specifying the ground for the claim of confidential treatment of the information and, if applicable, specifying the period during which the information must not be disclosed; 25. BILECO requests for the confidential treatment of Annexes “H-2” to “H-8” of the Application, consisting ofthe MOA among Region 8 ECs, e-mails confirming participation of interested suppliers in the bidding, Final Instructions to Bidders, Bid Forms, Bid Evaluation Slips, Comparison of Bids, and Notice of Award, respectively. These annexes show the individual offers of the bidders which participated in the R8 JCPSP. The Region 8 ECs, BILECOincluded, are bound by their undertaking to secure and keep in confidence the offers and the proposed terms of supply, so as not to prejudiceor pre-empt any future CSPsin which these bidders will participate.Otherwise, BILECO and the rest of the Region 8 ECs may be held liable for damages for breach of confidentiality, and eventually, risk their good relations with the suppliers concerned; 26. Similarly, GNPOWER respectfully moves for the confidential treatment of Annexes “K” and “K-1” hereof, consisting of GNPOWER’s Sources of Funds and Financial Plans with Cost Assumptions.These annexes, exclusively owned by GNPOWER, contain information which areconsidered part of its business and trade secrets. As such, GNPOWER has the sole proprietary interest and will be unduly prejudiced should they be disclosed to the public; 27. These annexes contain numbers, data, formula, methodology, and calculations involving valuable and sensitive commercial, financial information reflecting GNPOWER’s business operations and financial trade secrets. Therefore, GNPOWER’s confidential, proprietary, and private information included in the aforesaid annexes should be protected from public dissemination.

Otherwise, such information can be illegally and unfairly utilized by business competitors who may use the same for their own private gain and to the irreparable prejudice of GNPOWER.Negotiations with prospective customers may also be affected.

28. The information contained in Annexes “K” and “K1”, constitute “trade secrets”, for which GNPOWER has actual and valuable proprietary interest. As explained by the Supreme Court, a trade secret may consist of any formula, pattern, device, or compilation of information that is used in one’s business and gives the employer an opportunity to obtain an advantage over competitors who do not possess the information1. It is indubitable that trade secrets2 constitute proprietary rights and jurisprudence has consistently acknowledged the private character of trade secrets. Further, as ruled in Garcia vs. Board of Investments3 , trade secrets and confidential, commercial and financial information are exempt from public scrutiny; 29. Accordingly, Annexes “H-2” to “H-8”, “K” and “K1” be accorded confidential treatment. As such, they are to be used exclusively by the Commission and for the sole purpose of evaluating this Application, thereby protecting these data from unnecessary public disclosure;

36. The additional power from GNPOWER is needed to curtail any power interruptions that may be experienced by BILECO’s member-consumers due to inadequate power supply in the region; 37. To further support the Prayer for PA, anaffidavit emphasizing the necessity thereof is attached to the Application as Annex “Z”, and form an integral part thereof; PRAYER 38. Applicants BILECO and GNPower pray before the Commission that: i.

All information attached asAnnexes “H-2” to “H8”, “K” and “K-1” to the Application be treated as confidential; ii Pending hearing on the merits, a PA beissuedauthorizing the immediate implementation of the subject PSA, including the rate structure therein, as applied; iii.

After due notice and hearing, the instant Application, the PSAand the rate structure contained therein be duly approved; and iv.

In the event that a Final Authority shall be issued after GNPOWER starts actual delivery of power to BILECO under the terms of the subject PSA, said Final Authority be retroactively applied to the date of such actual delivery.

The Commission has set the Application for the hearing, expository presentation, pre-trial conference, and presentation of evidence on 20 July 2016 (Wednesday) at two o’clock in the afternoon (2:00 P.M.) at BILECO’s Main Office, Brgy.

Caraycaray, Naval, Biliran.

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 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 wish to have a copy of the Application may request from the Applicants that they be furnished with the same, prior to the date of the initial hearing. Applicants are hereby directed to furnish all those making such request with copies of the Application and its attachments, subject to the reimbursement of reasonable photocopying costs. Any such person may likewise examine the Application and other pertinent records filed with the Commission during the standard office hours.

WITNESS, the Honorable Chairman, JOSE VICENTE B. SALAZAR, 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 18th day of May 2016 in Pasig City.

ATTY. TTY. NATHAN J. MARASIGAN Chief of Staff Office ffice of the Chairman and CEO 1 2 3 4

Air Philippines Corporation vs. Pennswell Inc., G.R. No. 172835, December 13, 2007.

Ibid., 177 SCRA 374 (1989).

Additional equivalent rate due to additional Prudential Guarantee required by PEMC (for the undelivered contracted capacity from GNPower) with a conservative loan interest of 6% per annum and baseload load factor of 81%. ( T S - J U N E 2 7/J U LY 4 , 2 016)

CYAN MAGENTA YELLOW BLACK

A16

M O N DAY : J ULY 4 , 2 0 1 6 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

US player Sam Querrey celebrates beating Serbia’s Novak Djokovic (inset) during their men’s singles third round match on the sixth day of the 2016 Wimbledon Championships at The All England Lawn Tennis Club in Wimbledon, southwest London. AFP

Djokovic crashes back to Earth LONDON—Two-time defending champion Novak Djokovic was sent crashing out of Wimbledon by big-serving Sam Querrey on Saturday, shattering his dreams of securing the first calendar Grand Slam in 47 years.

The world number one, bidding for a fourth Wimbledon title and 13th major, suffered his earliest loss at a Slam since the 2009 French Open.

The 7-6 (8/6), 6-1, 3-6, 7-6 (7/5) third round defeat also ended Djokovic’s Open era record run of 30 successive wins at the ma-

jors and his streak of having reached 28 consecutive Grand Slam quarter-finals.

“Sam played a great match. His game was brutal and I was overpowered,” said the Serb, who added that he “wasn’t 100 percent healthy”.

Djokovic, who completed a career Grand Slam at the French

Open, refused to dwell on failing to become the first man since Rod Laver in 1969 to win a calendar Grand Slam having won in Melbourne and Paris already this year.

“I managed to win four Grand Slams in a row. I want to try to focus on that rather than on failure,” he added.

“Coming into Wimbledon, I knew that mentally it’s not going to be easy to kind of remotivate myself.”

Djokovic added that he would not be playing in the Davis Cup quarter-final against Andy Murray’s Great Britain in Belgrade in

two weeks’ time.

America’s Querrey, the world number 41, built only his second win in 10 meetings with Djokovic on an epic-serving performance over two days after the tie had been suspended with him two sets to the good on Friday.

The 28-year-old sent down 31 aces -- 15 in the fourth set alone -- and saved 14 of 17 break points while unleashing 56 winners.

His reward is a last-16 clash with 34-year-old Frenchman Nicolas Mahut.

“It’s incredible, especially to do it here at Wimbledon. I’m so

ecstatic right now and so happy,” said Querrey.

Rain had saved 29-year-old Djokovic on Friday. On the resumption Saturday, the US, Australian and French Open champion took the third set 6-3.

In the fourth, he squandered 11 break points before finally breaking through at the 12th time of asking for a 5-4 lead.

But he couldn’t convert with the American hitting straight back for 5-5 and holding for 6-5 when the rain returned to cause a second suspension of the day on Court One.

Division 1 NCAA schools knocking on Paras’ door

By Ronnie Nathanielsz

KOBE PARAS

KOBE Paras, the FIBA 3x3 Slam Dunk king, was “devastated” by his sudden withdrawal from the University of California, Los Angeles, after the Filipino, who was qualified to play in Division I, had already checked in and had begun summer school.

Steve Angeles of ABS-CBN reported that “suddenly, the UCLA admissions department said he did not meet some of the academic requirements causing the former slam dunk champion to withdraw.”

Kobe’s dad Benjie Paras, the former two-time MVP of the Philippine Basketball Association and the only Rookie of the Year to win the MVP award in the same year, said: “It was really a surprise for us. Kobe was really devastated. I was talking to him, and he was crying.”

Despite reports citing Cathedral High School’s principal saying that the issue involved his Scholastic Assessment Test score, Kobe’s Coach William Middlebrooks said no exact details were given.

Angeles quoted Kobe’s coach as saying: “That was a shock to the entire athletic department. Our understanding was as long as he’s a full qualifier academically, he’d be in school and for whatever reason, the head of admissions made a different decision. It was taken out of context. I think it came across strange to people. Various people interpret it the way they interpreted it, but we don’t know what the reason is. Even the principal has not talked to anybody at UCLA admissions, so therefore whatever the reason is they chose to make this decision, and

we don’t have a fact to as why they made the decision.”

Middlebrooks admitted that these issues do happen at all colleges and not just to student athletes.

With Kobe now withdrawn from UCLA, it’s back to the recruitment process for the Division 1 eligible 18-year-old Paras.

With a couple of months before the school year, at least 80 Division 1 schools have reached out to the 6’5” wing, who is expected to be in school and on the court in time for the 2016 college basketball season. AFP

MONDAY: JULY 4, 2016

RAY S. EÑANO EDITOR

RODERICK T. DELA CRUZ ASSISTANT EDITOR

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

BUSINESS

B1

PAL coffee table book. Philippine Airlines chairman Lucio C. Tan (left) and PAL president Jaime Bautista confer on the significance of the airline’s first coffee table book

launched on July 1, 2016 at the Century Park Hotel. The book—75 Years of Celebrating the Heart of the Filipino—contains various historical trivia on the history of PAL. Standing at the back are PAL flight attendants wearing era cabin crew uniforms from 1946 to the present.

P40-b Davao project opposed

By Darwin G Amojelar

A NON-government organization is opposing the development of a P40-billion reclamation and port project in Davao City.

Ann Fuertes, executive director for the Interface Development Interventions, arm of Ecowaste Coalition, said in a statement the city council did not conduct any public consultations on the project set to be undertaken by Mega Harbour Port.

Fuertes said her group was not consulted about the project, adding they only knew about it after the second reading of the city council.

She asked the city council to hear the

group’s side, warning that the project would dislocate residents of Isla Verde.

Isla Verde, which is 123,201 square meters, is covered by Presidential Proclamation 85 signed by then president Joseph Ejercito Estrada declaring the property as a human settlement site.

The barangay has an estimated population of 13,398.

Mega Harbour, which is owned by businessman Reghis Romero II, was pushing for a three-year Davao City coastline and port development project, which involves the reclamation of 200 hectares of offshore area in two districts there.

The Davao Coastline and Port Development Project was expected to undergo another Swiss challenge as the matter is elevated to the agencies of the national government.

The proposal will be put forward to the

Philippine Reclamation Authority after the city council passes an ordinance granting then Mayor Rodrigo Duterte the authority to sign a joint venture agreement with the proponent.

A Swiss challenge was organized by the local government in November last year, but no other bid was submitted.

Earlier, the Davao City council has blocked the auction of the P19-billion Davao Sasa Port Modernization Project under the previous administration’s public-private partnership program.

The Sangguniang Panglungsod ng Davao issued a resolution stopping the Sasa port bidding because of “the irregular procedure as well as the various questions raised against the Sasa Port Modernization project now being bid out without prior consultation and expressed approval of the local

Banks’ real estate loans reached P1.3t in Q1

By Julito G. Rada THE real estate exposure of banks reached P1.331 trillion in the first quarter of 2016, driven by higher lending to the commercial sector, data from Bangko Sentral ng Pilipinas over the weekend show.

Banks lent the bulk or P1.326 trillion, while trust departments contributed P4.98 billion. Residential real estate loans for the quarter reached P462.396 billion, while commercial real estate loans stood at P869.008 billion.

The first-quarter figure, however, was lower than the end-2015 real estate exposure of P1.5 trillion. The end-2015 REE of banks was 5.9 percent higher than that posted by the banks a quarter earlier. The rise was attributed to the banks’ real estate loans, which grew by 6 percent to P1.3 trillion quarter-on-quarter.

Bangko Sentral monitors the real estate exposures of banks as part of its broader role of assessing the quality of bank exposures to the different sectors of the economy. Maintaining high loan quality is essential to the promotion of financial stability.

Earlier, Bangko Sentral Governor Amando Tetangco Jr. said he saw no asset bubble in the country despite the acceleration of residential real estate prices in the first quarter by 9.2 percent from 5.5 percent a year ago.

The Bangko Sentral released the maiden nationwide Residential Real Estate Price Index on June 3, 2016. The firstquarter growth was also significantly higher than the 5.1-percent expansion in the fourth quarter of 2015.

Tetangco also said that there was no cause for alarm in the acceleration of prices of condominium units.

“Not at all. They’ve somewhat slowed down in building. And some of the movements in each of the sectors, there’s some that have increased slowly than others. We want to look at the total picture. At this point in time, if you look at other indicators like building permits, there’s no bubble,” Tetangco said in a previous statement.

The index showed that real property prices in the National Capital Region and areas outside NCR increased 9.7 percent and 9.4 percent, respectively. Condominium units posted the highest yearon-year growth in prices at 12.9 percent, followed by townhouses at 8.5 percent.

The index showed that about 7 out of 10 residential real state loans granted were for the purchase of new housing units. Condo units were the most common house purchases in the capital region, single-detached houses were the most popular in areas outside NCR.

government as provided for by the Local Government Code.”

The Transportation Department recently prequalified Asian Terminals Inc., International Container Terminal Services Inc., Bollore Africa Logistics, Singaporebased Portek International Pte. Ltd. and San Miguel Corp. for the Davao Sasa Port project.

MONDAY: JULY 4, 2016

B2

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

The STandard BuSineSS Weekly STockS revieW STOCKS

JUNE 27-JULY 1, 2016 Close Volume

AG Finance Asia United Bank Banco de Oro Unibank Inc. Bank of PI China Bank BDO Leasing & Fin. INc. Bright Kindle Resources Citystate Savings COL Financial Eastwest Bank Filipino Fund Inc. I-Remit Inc. Manulife Fin. Corp.

MEDCO Holdings Metrobank Natl. Reinsurance Corp.

PB Bank Phil Bank of Comm Phil. National Bank Phil. Savings Bank Philippine trust Co. PSE Inc. RCBC `A’ Security Bank Sun Life Financial Union Bank Vantage Equities

3.55 47.5 114.00 99.00 38.1 4.10 1.40 9.05 14.2 18.38 6.86 2.2 600.00 0.540 89 0.91 14.96 22.00 57.85 105 680 265 32 191 1350.00 65.05 1.52

Aboitiz Power Corp.

Agrinurture Inc. Alliance Tuna Intl Inc. Alsons Cons.

Asiabest Group Bogo Medelin C. Azuc De Tarlac Century Food Chemphil Conc. Aggr. ‘A’ Cirtek Holdings (Chips) Concepcion Crown Asia Da Vinci Capital Del Monte DNL Industries Inc. Emperador Energy Devt. Corp. (EDC) EEI Euro-Med Lab First Gen Corp.

First Holdings ‘A’ Ginebra San Miguel Inc. Holcim Philippines Inc. Integ. Micro-Electronics Ionics Inc Jollibee Foods Corp.

Liberty Flour LMG Chemicals Mabuhay Vinyl Macay Holdings Manila Water Co. Inc. Maxs Group Megawide Mla. Elect. Co `A’ MG Holdings Panasonic Mfg Phil. Corp.

Pepsi-Cola Products Phil.

Petron Corporation Phil H2O Phinma Corporation Phoenix Petroleum Phils.

Phoenix Semiconductor Pryce Corp. `A’ RFM Corporation Roxas and Co. Roxas Holdings San Miguel ‘Pure Foods `A’ Splash Corporation Swift Foods, Inc. TKC Steel Corp.

Trans-Asia Oil Universal Robina Victorias Milling Vitarich Corp.

Vulcan Ind’l.

45.9 3.74 0.81 1.99 11.6 55.05 220.00 22.2 175 173 16.24 47 2.03 5.6 12.28 9.500 7.07 5.52 7.73 1.83 24.8 67.85 12.00 15.20 5.56 2.320 245.20 32.20 2.14 3.15 37.50 26.95 29.1 6.6 315.80 0.270 4.21 3.38 11.00 3.19 11.64 6.25 1.63 2.8 4.20 2.49 4 209 2.55 0.148 1.80 2.50 207.4 4.71 0.87 1.28

Abacus Cons. `A’ Aboitiz Equity Alliance Global Inc. Anglo Holdings A Anscor `A’ ATN Holdings A ATN Holdings B Ayala Corp `A’ Cosco Capital DMCI Holdings F&J Prince ‘A’ F&J Prince ‘B’ Filinvest Dev. Corp.

Forum Pacific GT Capital House of Inv. JG Summit Holdings Jolliville Holdings Keppel Holdings `A’ Keppel Holdings `B’ Lopez Holdings Corp.

Lodestar Invt. Holdg.Corp.

LT Group Metro Pacific Inv. Corp.

MJCI Investments Inc. Pacifica `A’ Prime Media Hldg Prime Orion Republic Glass ‘A’ San Miguel Corp `A’ Seafront `A’ SM Investments Inc. Solid Group Inc. South China Res. Inc. Transgrid Top Frontier Unioil Res. & Hldgs Wellex Industries Zeus Holdings

0.375 79.00 15.20 1.14 6.00 0.370 0.385 844 7.7 12.70 5.34 6.2 6.50 0.244 1465 6.30 84.50 4.27 6.35 6.55 7.78 0.7 15.88 6.77 3.1 0.0350 1.250 1.830 2.60 78.75 2.25 990.00 1.18 0.89 185.00 195.000 0.3100 0.2050 0.305

8990 HLDG Anchor Land Holdings Inc. A. Brown Co., Inc. Araneta Prop `A’ Arthaland Corp.

Ayala Land `B’ Belle Corp. `A’ Cebu Holdings Century Property City & Land Dev. Cityland Dev. `A’ Crown Equities Inc. Cyber Bay Corp.

Double Dragon Empire East Land Ever Gotesco Global-Estate Filinvest Land,Inc. Interport `A’ Keppel Properties Kuok Prop. `A’ Megaworld MRC Allied Ind. Phil. Estates Corp.

7.690 6.76 1.22 2.200 0.280 39.000 3.28 5.17 0.510 0.92 1.070 0.132 0.670 62 0.790 0.154 0.98 1.97 1.25 5.00 5.000 4.6 0.099 0.2800

Value

FINANCIAL 1,827,150.00 6,087,215.00 1,418,835,874 1,634,611,971.00 23,798,865.00 512,830.00 136,800.00 123,665.00 17,554,066.00 55,405,978.00 87,996 10,596,420.00 42,000.00 2,052,180.00 2,950,662,329.00 33,830.00 8,988,884.00 5,397,375.00 55,749,224.50 1,033,942.00 354,220.00 6,901,860.00 29,392,050 3,797,727,159.00 1,537,185.00 17,981,106.50 372,720.00 INDUSTRIAL 10,747,000 497,744,515.00 1,602,000 5,895,150.00 2,504,700 2,413,370.00 27,802,000 55,840,000.00 25,500 291,832.00 30 1,651.50 280 59,260.00 4,022,500 88,971,750 990 172,285.00 6,700 1,147,956.00 10,691,500 171,787,180.00 604,400 28,158,835 38,024,000 73,229,480.00 17,534,200 103,088,016.00 833,300 10,052,228.00 26,892,400 258,858,446.00 23,960,700 169,290,498.00 82,716,400 465,751,315.00 1,063,700 8,166,605.00 8,000 14,100.00 21,700,800 541,759,905.00 601,530 40,567,616.50 83,800 1,002,690.00 358,900 5,419,678.00 918,800 5,125,379.00 12,066,000 28,423,170.00 5,781,700 1,389,824,558.00 103,800 3,334,685.00 136,000 251,240.00 149,000 500,350.00 5,200 195,155.00 5,781,300 154,408,655.00 5,221,900 139,455,230.00 4,331,200 28,367,563.00 36,371,172 429,029,078.00 1,100,000 294,800.00 278,000 1,211,830.00 3,561,000 11,743,900.00 20,242,100 223,313,970.00 7,000 22,340.00 375,800 4,187,462.00 4,824,600 29,456,342.00 1,896,000 3,133,520.00 1,616,000 4,573,070.00 2,449,000 10,255,700.00 16,000 38,720.00 113,000 450,430.00 11,840 2,458,090.00 630,000 1,589,600 3,873,000 811,420.00 37,024,000 72,355,420.00 7,236,000 17,521,240.00 8,580,440 1,776,891,308.00 2,000 9,420.00 10,515,450 7,848,670.00 1,563,000 1,942,430.00 HOLDING FIRMS 2,900,000 1,071,100.00 7,205,310 559,301,181.00 34,044,500 517,884,940.00 205,000 231,760.00 118,400 714,986.00 35,780,000 13,468,750.00 2,450,000 923,150.00 1,308,640 1,111,801,545.00 7,100,100 55,094,314.00 23,118,700 293,929,120.00 443,800 2,379,173.00 27,500 160,653.00 4,740,400 30,979,466.00 5,830,000 1,457,860.00 776,175 1,132,681,665.00 15,900 101,127.00 11,045,980 1,015,294,365.50 2,000 8,540.00 48,000 279,185.00 63,600 411,102.00 7,025,300 44,605,219.00 166,000 115,450.00 18,369,500 290,349,358.00 206,337,000 1,411,809,859.00 15,000 49,720.00 233,200,000 7,830,700.00 33,500 70,430.00 2,242,000 4,027,310.00 185,000 482,850.00 626,820 48,940,968.50 57,000 125,900.00 1,359,150 1,339,646,795.00 314,000 365,680.00 10,850,000 10,806,100.00 40 7,400.00 132,440 26,017,734.00 10,720,000 3,268,400.00 11,700,000 2,375,390.00 8,170,000 2,449,150.00 PROPERTY 1,125,400 8,621,586.00 1,019,500 6,158,755.00 11,510,000 14,156,170.00 4,253,000 9,153,510.00 3,390,000 960,000.00 51,806,400 2,033,166,025.00 3,832,000 12,672,580.00 83,000 421,932.00 24,847,000 12,463,870.00 76,000 69,910.00 287,000 303,300.00 10,300,000 1,358,350.00 142,827,000 95,100,110.00 7,164,690 435,784,522.50 2,324,000 1,843,300.00 420,000 63,770.00 11,309,000 10,947,330.00 110,014,000 216,658,140.00 214,000 264,850.00 59,200 305,550.00 500 2,500.00 251,755,000 1,159,660,520.00 94,390,000 9,332,970.00 1,410,000 377,250.00

524,000 129,500 12,645,240 16,884,300 625,000 127,000 100,000 13,400 1,252,200 3,066,600 12,900 4,690,000 70 3,803,000 13,926,770 37,000 600,400 244,800 970,270 9,850 560 26,460 922,600 19,915,480 1,130 277,330 247,000

JUNE 20-24, 2016 Close Volume

Value

3.4 46.75 107.00 97.05 38 4.18 1.39

2,754,980 178,400 10,362,000 5,486,560 529,000 1,801,000 336,000

5,448,830.00 8,223,450.00 1,129,761,486 532,301,229.50 20,096,970.00 6,692,780.00 459,850.00

14 17.5 6.86 1.85 594.00 0.550 87.25 0.94 14.80 22.80 57.40 104.9 445 260 31.95 198.8 1361.00 65.25 1.5

35,400 4,779,700 18,400 199,000 3,660 2,660,000 29,050,920 326,000 1,284,500 20,800 1,966,170 13,540 160 43,190 1,396,700 2,131,700 895 816,750 226,000

497,630.00 85,652,496.00 121,663 356,710.00 2,178,160.00 1,448,420.00 2,573,322,023.00 299,030.00 19,260,382.00 475,120.00 112,882,551.00 1,378,382.00 63,050.00 11,259,664.00 44,935,485 428,979,492.00 1,228,330.00 53,306,918.50 340,970.00

46.2 3.72 0.85 1.94 12.3 55.1 204.00 21.2

4,999,600 3,604,000 1,055,000 50,482,000 9,500 1,450 1,822 4,955,300

233,664,055.00 13,491,380.00 853,190.00 102,709,410.00 115,186.00 79,932.50 422,403.00 106,029,850

179 16.3 45.5 2.1 5.56 11.46 9.280 7.18 5.60 7.39 1.8 24.4 66.95 12.00 14.84 5.5 2.280 235.00 32.50 1.76 3.16 36.00 26.95 28.1 6.5 312.20 0.270 4.30 3.35 10.92 3.19 11.02 5.99 1.68 2.73 4.20 2.31 4.01 208 2.5 0.147 1.58 2.39 204 4.71 0.86 1.27

13,580 10,288,200 84,800 25,458,000 3,201,500 130,200 13,074,400 7,054,600 134,139,200 1,758,800 83,500 45,948,500 1,657,480 155,100 1,594,200 1,489,300 8,799,000 3,164,250 205,800 106,000 33,000 7,600 13,148,400 1,559,900 1,253,700 953,790 565,200 38,000 27,205,000 119,170,598 10,000 65,200 5,240,700 1,684,000 745,000 4,867,000 14,000 23,004 3,560 2,357,000 8,260,000 3,494,000 13,839,000 7,135,030 75,000 30,740,000 1,222,000

2,488,877.00 170,220,492.00 3,911,535 54,504,380.00 17,715,044.00 1,469,144.00 125,399,739.00 50,417,582.00 751,327,488.00 13,461,734.00 267,350.00 1,124,077,775.00 112,212,947.00 1,859,690.00 24,060,380.00 20,210,482.00 20,171,120.00 743,274,682.00 6,743,670.00 192,490.00 106,600.00 281,715.00 356,174,530.00 43,670,825.00 8,165,549.00 303,327,016.00 84,950.00 160,860.00 92,569,200.00 125,909,930.00 30,990.00 724,084.00 32,238,267.00 2,825,880.00 2,052,490.00 20,452,280.00 32,380.00 97,280.00 756,900.00 6,038,500 1,216,080.00 5,662,390.00 33,846,770.00 1,462,808,356.00 340,850.00 27,215,420.00 1,521,580.00

0.370 74.35 15.60 1.11 6.06 0.365 0.375 850 7.74 12.42 5.05 6.5 6.30 0.223 1467 6.31 83.70

7,030,000 7,819,500 32,642,900 328,000 112,200 150,370,000 4,060,000 2,362,970 7,654,600 32,156,500 176,600 170,900 560,300 120,000 1,006,935 1,199,600 16,698,080

2,575,750.00 583,649,139.50 514,741,448.00 374,920.00 688,825.00 58,464,200.00 1,601,950.00 2,009,758,335.00 60,279,089.00 410,381,830.00 910,247.00 1,012,045.00 3,594,901.00 26,350.00 1,491,444,350.00 7,599,296.00 1,410,966,035.50

5.8 5.68 7.85 0.69 15.88 6.6 3.09 0.0320 1.270 1.800 2.63 77.00 2.23 965.00 1.17 0.79

207,100 743,000 14,426,700 3,887,000 17,685,100 245,528,800 6,000 49,800,000 53,000 3,674,000 51,000 1,064,150 115,800 874,180 1,157,000 95,000

1,152,851.00 4,582,446.00 111,076,661.00 2,694,660.00 279,345,146.00 1,278,933,558.00 18,570.00 1,593,900.00 71,110.00 6,641,790.00 132,550.00 83,183,525.50 269,920.00 857,879,105.00 1,333,160.00 75,290.00

190.000 0.3100 0.1960 0.300

44,740 7,460,000 2,790,000 21,620,000

8,450,697.00 2,309,900.00 547,450.00 6,598,300.00

7.450 7.30 1.18 2.140 0.270 38.200 3.32 5.11 0.500 1.01 1.080 0.130 0.620 60 0.790 0.150 0.95 1.97 1.24 4.71

5,277,700 9,100 14,090,000 3,733,000 2,640,000 76,713,600 6,802,000 369,900 33,642,000 6,000 489,000 30,370,000 214,044,000 10,843,870 2,485,000 450,000 21,584,000 112,856,000 166,000 149,100

39,625,077.00 66,529.00 17,272,790.00 8,012,900.00 712,550.00 3,000,660,365.00 22,909,260.00 1,897,014.00 16,859,320.00 6,240.00 528,170.00 4,112,870.00 138,443,600.00 630,908,479.50 1,990,720.00 69,080.00 21,057,440.00 224,261,010.00 204,360.00 746,146.00

4.5 0.091 0.2750

258,609,000 12,800,000 5,880,000

1,173,850,410.00 1,137,880.00 1,481,400.00

STOCKS

JUNE 27-JULY 1, 2016 Close Volume

Phil. Realty `A’ Phil. Tob. Flue Cur & Redry Primex Corp.

Robinson’s Land `B’ Rockwell Shang Properties Inc. SM Prime Holdings Sta. Lucia Land Inc. Starmalls Suntrust Home Dev. Inc. Vista Land & Lifescapes

0.430 40.20 10.4 29.50 1.8 3.3 27.65 0.91 6.97 1.000 5.320

2GO Group’ ABS-CBN Acesite Hotel APC Group, Inc. Asian Terminals Inc. Berjaya Phils. Inc. Bloomberry Boulevard Holdings Calata Corp.

Cebu Air Inc. (5J) Centro Esc. Univ.

Discovery World DFNN Inc. Easy Call “Common” FEUI Globe Telecom GMA Network Inc. Golden Haven Grand Plaza Hotel Harbor Star I.C.T.S.I. Imperial Res. `A’ Imperial Res. `B’ IPeople Inc. `A’ IP E-Game Ventures Inc. IPM Holdings Island Info ISM Communications Jackstones LBC Express Leisure & Resorts Liberty Telecom Lorenzo Shipping Macroasia Corp.

Manila Broadcasting Manila Bulletin Manila Jockey Melco Crown Metro Retail NOW Corp.

Pacific Online Sys. Corp.

PAL Holdings Inc. Paxys Inc. Phil. Racing Club Phil. Seven Corp.

Philweb.Com Inc. PLDT Common PremiereHorizon Premium Leisure Puregold Robinsons RTL SBS Phil. Corp.

SSI Group STI Holdings Transpacific Broadcast Travellers Waterfront Phils.

Yehey

7.22 48.3 1.28 0.580 11.4 7.3 6.55 0.0580 2.88 98.75 9.84 2.07 5.33 3.15 1000 2360 6.37 19.20 21.25 1.15 61.95 12.92 150 11.7 0.0090 9.39 0.325 1.6100 2.16 13.92 7.20 3.23 1.14 2.78 20.00 0.580 2 3.79 4.14 3.240 12 5.60 2.45 9.99 124.00 19.00 2140.00 0.420 1.170 42.50 86.10 6.33 3.28 0.570 1.96 3.34 0.335 6.300

Abra Mining Apex `A’ Atlas Cons. `A’ Atok-Big Wedge `A’ Basic Energy Corp.

Benguet Corp `A’ Benguet Corp `B’ Century Peak Metals Hldgs Coal Asia Dizon Ferronickel Geograce Res. Phil. Inc. Lepanto `A’ Lepanto `B’ Manila Mining `A’ Manila Mining `B’ Marcventures Hldgs., Inc. Nickelasia Nihao Mineral Resources Omico Oriental Peninsula Res. Oriental Pet. `A’ Oriental Pet. `B’ Petroenergy Res. Corp.

Philex `A’ PhilexPetroleum Philodrill Corp. `A’ Semirara Corp.

TA Petroleum United Paragon

0.0042 3.50 4.38 11.80 0.234 7.3800 7.1000 0.59 0.490 8.55 0.870 0.290 0.243 0.255 0.0130 0.0140 1.74 5.03 2.68 0.5500 1.2000 0.0120 0.0130 3.96 8.56 4.15 0.0130 125.60 3.81 0.0120

ABS-CBN Holdings Corp.

Ayala Corp. Pref `B1’ Ayala Corp. Pref ‘B2’ First Gen G GLOBE PREF P GMA Holdings Inc. Leisure and Resort MWIDE PREF PCOR-Preferred A PCOR-Preferred B PF Pref 2 PNX PREF 3B SMC Preferred B SMC Preferred C SMC Preferred D SMC Preferred E SMC Preferred F SMC Preferred G SMC Preferred H SMC Preferred I

48.2 544.5 549.5 118 540.5 6.36 1.06 112 1065 1160 1028 115 79.7 80 76.1 76.95 78.4 78 77 76.9

LR Warrant

2.710

Alterra Capital Makati Fin. Corp.

Italpinas Xurpas

3.7 3.53 4.44 16.4

First Metro ETF

128.8

JUNE 20-24, 2016 Close Volume

Value

1,210,000 530,650.00 64,100 2,480,740.00 2,332,000 23,623,431.00 14,711,600 444,533,565.00 4,483,000 8,097,200.00 767,000 2,535,240.00 113,516,800 3,074,235,920.00 36,588,000 32,740,750.00 67,700 459,487.00 5,351,000 5,403,150.00 42,211,700 221,481,627.00 SERVICES 212,500 1,550,988.00 1,448,400 67,873,935.00 37,000 47,830.00 11,208,000 6,615,660.00 1,400 15,960.00 193,700 1,462,668 94,984,000 586,270,288.00 154,340,000 8,873,450.00 12,661,000 36,311,680.00 2,807,680 275,880,643.00 10,100 98,493.00 87,000 173,610 2,329,300 12,789,688.00 1,000 3,150.00 56,070 53,830,650.00 459,106 1,106,057,900 453,700 2,868,561.00 73,921,900 1,282,806,388.00 58,700 1,247,375 208,000 239,700.00 9,412,330 581,067,151.00 952,700 13,549,568 670 104,135 19,800 228,048.00 589,600,000 5,716,040.00 1,371,900 12,883,264.00 98,900,000 32,637,700.00 9,843,000 16,194,850.00 119,000 260,820.00 241,500 3,204,916.00 4,336,600 32,140,340 2,087,000 6,723,150.00 26,000 29,380.00 114,000 291,350.00 7,400 147,462 270,000 152,160.00 291,000 577,400.00 129,316,000 465,919,970.00 82,683,000 339,925,250.00 76,816,000 233,383,230.00 138,900 1,704,540.00 711,000 4,064,810 37,000 90,670.00 35,300 343,651.00 4,970 611,585.00 2,618,300 51,083,718.00 696,175 1,467,813,790.00 11,627,000 7,735,350.00 177,241,000 211,795,650.00 8,804,400 370,868,265.00 4,684,920 389,867,983.50 5,732,400 36,774,752.00 48,772,000 155,762,770.00 9,869,000 5,591,020.00 26,000 47,850.00 7,696,000 25,989,620.00 300,000 101,700.00 514,000 3,107,982.00 MINING & OIL 930,000,000 3,827,100.00 81,230,000 305,080,120.00 653,000 2,860,070.00 5,300 59,954.00 7,720,000 1,831,000.00 28,100 207,904.00 55,800 420,440.00 899,000 535,340.00 7,740,000 3,840,500.00 89,900 780,818.00 124,543,000 107,262,920.00 2,260,000 638,350.00 179,450,000 45,176,660.00 24,480,000 6,339,600.00 625,400,000 8,116,700.00 354,000,000 4,667,800.00 3,637,000 6,260,170.00 18,774,500 94,666,140.00 750,000 1,976,730.00 171,000 94,070.00 427,000 512,860.00 422,300,000 4,714,680.00 15,200,000 185,500.00 128,000 513,220.00 28,122,600 237,082,550.00 16,747,800 78,066,210.00 239,400,000 2,995,600.00 3,222,380 398,853,979.00 1,505,000 5,746,650.00 375,200,000 4,322,300.00 PREFERRED 3,328,800 155,872,990.00 44,410 23,843,910.00 4,040 2,187,230 35,170 3,948,249.00 11,230 6,069,750.00 634,600 4,029,492.00 3,359,000 3,572,840 4,190 469,196.00 6,520 6,943,800.00 2,550 2,942,000.00 1,140 1,171,920.00 9,670 1,111,850.00 24,080 1,892,810.00 34,660 2,784,418 118,400 9,012,060.00 68,650 5,221,162.50 49,170 3,815,832.00 338,820 26,417,604.00 215,710 16,593,895.00 255,350 19,573,032.00 WARRANTS & BONDS 4,445,000 12,702,990.00 SME 4,253,000 15,985,180.00 20,000 67,020.00 7,856,000 36,405,860.00 7,757,100 126,034,130.00 EXCHANGE TRADED FUNDS 109,060 13,977,334.00

Value

0.445 41.00 9.5 29.45 1.72 3.11 25.65 0.88 6.9 0.980 5.190

1,258,000 42,200 539,000 11,769,400 6,652,000 418,000 67,579,600 18,688,000 2,900 4,149,000 30,630,200

649,100.00 1,803,540.00 5,101,423.00 353,696,950.00 11,772,410.00 1,311,860.00 1,734,734,050.00 16,470,240.00 18,892.00 4,153,200.00 160,921,997.00

7.23 47.8 1.28 0.610 11.4 7.4 5.46 0.0590 2.86 95 9.85 2 6.39 3.50 960 2360 6.30

235,200 1,114,400 78,000 5,512,000 63,100 833,000 50,081,700 242,048,000 21,105,000 3,645,180 3,000 55,000 500,700 20,000 58,310 531,160 1,038,000

1,706,833.00 53,949,985.00 102,020.00 3,460,000.00 713,146.00 9,622,869 294,539,613.00 17,160,000.00 61,648,720.00 353,309,054.50 29,100.00 111,020 3,169,809.00 70,000.00 681,600.00 1,239,880,100 6,560,382.00

21.25 1.13 61.75 12.72 165 11.34 0.0100 9.30 0.325 1.6400 2.19 11.52 7.70 3.20

4,200 367,000 8,827,420 64,600 130 13,000 138,900,000 3,387,300 198,433,000 15,313,000 384,000 276,700 1,629,300 9,733,000

101,255 419,060.00 544,501,430.50 842,026 21,510 147,402.00 1,407,600.00 32,200,945.00 126,941,900.00 25,115,530.00 860,980.00 3,325,484.00 12,545,077 31,984,410.00

2.62 20.00 0.570 1.97 3.14 3.94 2.790 12.5 4.80 2.65 8.5 120.00 24.35 2050.00 0.435 1.170 41.50 78.00 6.40 2.93 0.570

117,000 2,800 368,000 269,000 171,875,000 60,624,000 31,610,000 33,800 125,000 124,000 1,235,700 29,320 286,900 691,710 21,950,000 187,314,000 12,513,000 6,152,470 38,712,900 97,762,000 9,235,000

309,740.00 55,180 211,250.00 521,740.00 552,381,810.00 245,018,390.00 89,513,490.00 423,302.00 600,440 335,130.00 10,027,064.00 3,414,059.00 6,985,130.00 1,443,551,700.00 9,469,850.00 215,817,910.00 531,003,475.00 496,523,940.50 259,417,475.00 312,312,230.00 5,690,790.00

3.31 0.330 5.810

17,693,000 1,740,000 1,398,900

62,450,050.00 580,850.00 8,122,683.00

0.0042 3.20 4.25 11.80 0.235 7.5000 7.3000 0.61 0.460 8.90 0.840 0.290 0.250 0.255 0.0130 0.0140 1.75 4.88 2.62 0.5500 1.1600 0.0100 0.0120 4.06 8.24 4.10 0.0130 117.00 3.7 0.0120

1,779,000,000 17,639,000 1,730,000 22,400 860,000 80,800 53,800 4,211,000 9,590,000 425,000 270,838,000 9,400,000 662,120,000 79,393,100 3,844,600,000 712,900,000 3,239,000 62,314,500 8,067,000 1,610,000 3,058,000 210,600,000 3,700,000 71,000 91,637,400 40,874,000 119,100,000 6,902,950 2,935,000 272,800,000

7,337,300.00 45,705,670.00 7,578,610.00 251,764.00 197,470.00 576,543.00 393,383.00 2,574,810.00 4,579,500.00 3,725,628.00 239,290,300.00 2,685,400.00 161,071,530.00 18,527,700.00 49,282,500.00 9,777,700.00 5,828,950.00 310,032,215.00 21,910,630.00 914,150.00 3,744,300.00 2,121,890.00 39,400.00 286,020.00 721,259,731.00 173,111,820.00 1,469,900.00 840,296,704.00 11,348,280.00 2,981,700.00

47 541.5 549.5 125 540 6.1 1.08 112 1065 1117 1031 115 80 80.45 76.4 76 77.5 77.95 76.9 76.95

1,484,900 9,030 14,100 30,520 2,270 119,200 68,000 6,490 6,050 4,870 15,785 9,780 26,330 265,190 157,460 183,370 50,550 125,490 217,830 182,580

70,358,530.00 4,889,360.00 7,677,895 3,692,849.00 1,227,800.00 725,913.00 73,440 726,416.00 6,493,190.00 5,429,125.00 16,336,630.00 1,118,990.00 2,102,735.00 20,933,290 11,957,445.00 13,950,022.50 3,916,250.00 9,697,574.00 16,640,429.00 13,932,442.00

2.890

5,557,000

7,309,580.00

3.8 3.4 4.5 15.2

8,508,000 36,000 31,286,000 7,001,800

33,945,630.00 122,260.00 154,596,512.00 110,442,050.00

125.4

91,730

11,575,462.00

WEEKLY MOST TRADED STOCKS Abra Mining Manila Mining `A’ IP E-Game Ventures Inc. Oriental Pet. `A’ United Paragon Manila Mining `B’ Megaworld Philodrill Corp. `A’ Pacifica `A’ Metro Pacific Inv. Corp.

VOLUME 930,000,000 625,400,000 589,600,000 422,300,000 375,200,000 354,000,000 251,755,000 239,400,000 233,200,000 206,337,000

STOCKS Security Bank SM Prime Holdings Metrobank Ayala Land `B’ Universal Robina Bank of PI PLDT Common Banco de Oro Unibank Inc. Metro Pacific Inv. Corp.

Jollibee Foods Corp.

VALUE 3,797,727,159.00 3,074,235,920.00 2,950,662,329.00 2,033,166,025.00 1,776,891,308.00 1,634,611,971.00 1,467,813,790.00 1,418,835,874.00 1,411,809,859.00 1,389,824,558.00

MONDAY: JULY 4, 2016

B3

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

PAL seeking new investor The Social entrepreneurship challenge ON July 1, 2016, I attended a chain of talks entitled Social RAPHAEL MOISES Change Series: Mighty Ducks G. URBANO that talks about instilling the REEN IGHT value of social entrepreneurship among Lasallian students. Moreover, it encourages students to take part in active nation-building by learning from local and foreign social entrepreneurs who used their skills and talents to come up with a social enterprise.

The Mighty Ducks talk was not my first talk on social entrepreneurship because I believe that it is a key to seeing radical change in our country. If we look beyond the four walls of our classroom, we will be able to seek better opportunities that will help us know our purpose in life.

In the first part of the talk, Tito Tony Meloto, the founder and chairman of Gawad Kalinga, gave us a clearer picture of what Gawad Kalinga is all about. He said that Gawad Kalinga’s goal by 2024 is to save five million Filipinos from poverty. This vision will be a reality if there is collective effort among us; and if there is social balance between classes in the society.

Transformational leader In the following paragraphs, I will be sharing the insights and realizations I got from the stories of Tito Tony Meloto and Mr. Louis Faure.

First, Gawad Kalinga will not be possible without the leadership initiative and social empowerment of Tony Meloto. In the organization, he is considered the father of everyone because of his strong will and determination to end poverty by restoring the dignity of the poor. It shows that Tito Tony is using a transformational style of leadership because he continuously inspires people to become agents of social change; and he creates a vision to guide the change through inspiration.

Before, Gawad Kalinga’s Enchanted Farm in Angat, Bulacan used to be a barren land, but because of his vision to end poverty, he decided to seek help from local and foreign companies. Eventually, Tito Tony was able to develop the land and make it a hub for social entrepreneurship.

The GK Enchanted Farm has built an ecosystem where everyone takes part in finding solutions to end poverty by utilizing the available resources in the countryside. He has achieved this kind of support system because his followers support and trust him.

Also, as a transformation leader, he helps his followers develop and experience the same passion and dedication to fulfill the organization’s goals.

Discovering purpose Second, Mr. Louis Faure, a French social entrepreneur, is one of the few people whom I first met in Enchanted Farm. Even though he is foreigner, he eventually fell in love with the Philippines. Supposedly, he went here just for a short internship in GK Enchanted Farm but because of his vision to do something more, he has been staying here for two years already. He believes that success can be measured not only by profits, but also by the sense of fulfillment and purpose you will get from doing the thing you love. Moreover, Louis is also considered a role model because he had the courage to leave his loved ones in France for him to discover his purpose, which is social entrepreneurship.

As a Lasallian and Chairperson for Community Development of the Business College Government, I believe that social entrepreneurship serves as an avenue for Lasallian students to search for their purpose in life. A purpose that is not only profit-oriented, but also socially-oriented. Getting a high-paying job after college is what most students are dreaming about, but going to a different career path, such as social entrepreneurship, is something remarkable.

I strongly believe that every Filipino has a hidden potential to become a social entrepreneur and make a big difference in the society through ‘bayanihan’. Through social entrepreneurship, we do not only measure success via profitability but also by how we impact the lives of those living in the bottom of the pyramid.

G

L

The author is a B.S. Applied Corporate Management student of the Ramon V. del Rosario College of Business. This reflection was written as part of the course requirement for Leadership in Organizaitons.

The views expressed above are the author’s and do not necessarily reflect the official position of De La Salle University, its faculty and its administrators.

By Darwin G. Amojelar

PHILIPPINE Airlines tapped Morgan Stanley to select a potential investor as early as next year, a top executive said.

“We’re working with our financial consultant Morgan Stanley.

They are the ones working with us. So, we can’t divulge any information except that we’re working with them,” PAL president and chief operating officer Jaime Bautista said.

PAL had planned to get a potential strategic partner in 2018, but Bautista said a deal could be closed as early as 2017.

Bautista said in August last year the company was not in a hurry to get a strategic investor because it was focusing on enhancing its valuation.

“I think it will be better for the present shareholders of PAL

to make PAL more profitable before talking to a strategic investor, so that the value of the company would be better when we talk to them,” Bautista earlier said.

Bautista said the airline expected to post a net profit this year despite an overcapacity in the industry.

“There’s a lot of challenges, but these challenges I think will make us stronger, we will be stronger in terms of facing competition. We will be more encouraged to provide better service passengers,” he said.

The airline, now wholly-owned by tycoon Lucio Tan after he bought back a 49-percent stake that San Miguel Corp. purchased from him in 2012, posted a net income of P2.71 billion in January to March, down by 28 percent from P3.78 billion last year.

Revenues rose 4.1 percent in the first quarter to P29.12 billion from last year’s P27.98 billion.

Passenger revenues rose to P24.65 billion in the first quarter from P23.09 billion in the same

period last year. Cargo revenues fell 31 percent to P1.47 billion from P2.14 billion.

Expenses in January to March grew 6.2 percent to P26.2 billion from P24.7 billion last year.

PAL signed a memorandum of understanding in February with Airbus for the acquisition of six A350-900 aircraft with the option for another six for delivery in 2018 to 2019.

The acquisition of six Airbus A350 was valued at $1.83 million.

PAL plans to deploy the A350 extra wide-body, which seats more than 300, on new routes to North America and Europe. The first A350 is scheduled for delivery in 2018.

A350 is the world’s latest generation airliner, featuring the most modern aero-dynamic design, carbon fiber fuselage and wings.

With the Trent XWB engines, A350 operates at 25 percent less fuel burn and emissions, significantly lowering maintenance costs. The extra-wide cabin provides passengers more personal space in all classes.

Meralco advisory. Meralco Advisory, celebrates its third year of empowering the franchise customer by being the main source of information on power-related issues, including rates movement and energy efficiency tips. Meralco Advisory is a monthly material released to the public through TV, radio and digital platforms which aims to educate and uplift consumers’ lives with updates on rates and news on the company.

Shown are Meralco spokesman Joe Zaldarriaga (left) and Maita David of customer retail services as they go on air every month to explain the power supply chain and provide various energy efficiency, safety and customer service reminders.

Market seen testing 8,000 level

By Jenniffer B. Austria STOCKS are expected to move sideways this week, amid indications the benchmark index may test the 8,000-point level and investors may start cashing in on recent gains.

BDO Unibank Inc. chief investment strategist Jonathan Ravelas said “high valuations,” after the market’s recent gains could limit the market’s rise and prompt some profit-taking.

“Continue to expect a test towards the 8,000 levels in the nearterm. A break below 7,800 levels could prompt a much larger correction towards 7,500,” Ravelas said.

The Philippine Stock Exchange

remains hopeful about the performance of the local bourse in the second half of 2016.

“Many markets appear to have recovered from the initial impact of the ‘Brexit’ but the Philippine market generated an additional impetus from the historic transition to the Duterte administration.

We are hopeful that we will have a strong second half supported by solid economic fundamentals and expectations of further growth under the new administration,” said PSE president Hans Sicat.

“The message of President Duterte that contracts will be honored and that rules should not be changed in the middle of the game should be very positive for

business. We are optimistic of the incoming administration’s support for business and economic growth, under a backdrop of improved efficiencies in government processes and peace and order,” Sicat said.

The Philippine Stock Exchange index, the 30-company bellwether, advanced 2.6 percent over last week’s five-day market trading to close at 7,830.35 on July 1, while the broader all-share index jumped 4.3 percent to settle at 4,738.03.

All indices ended in the green, led by mining and oil which climbed 4.1 percent, property which rose 3.8 percent and services which gained 3.4 percent.

B4 Calata-Pessl partnership.

Calata Corp., one of the biggest agricultural conglomerates in the Philippines, signs a partnership agreement with Pessl Instruments GmbH, an Austrian company that has been at the forefront of data-driven farming technology, to lead the Philippines agricultural sector into the ‘agricultural internet of things.’ Shown during the signing ceremony are (seated, from left) Calata corporate secretary Jose Marie Fabella, Calata founder and chief executive Joseph Calata, Pessl Instruments founder and chief executive Gottfried Pessl and Austrian Ambassador Josef Mullner. Behind are Calata vice president for business development Parker Ong (standing, left) and Pessl Instruments regional director for Asia Pacific Vishnu Nair.

SEC files case versus marketing company

By Jenniffer B. Austria THE Securities and Exchange Commission filed before the Justice Department a criminal complaint against One Lightning Corp. for allegedly selling unregistered securities in violation of the Securities Regulation Code.

Named respondents in the SEC complaint were incorporators Terence Kenji, Theodore Yuji, Aldus Reiner Tubiera, Jake Ryu Oprecio and Joanary Roxas.

SEC earlier issued a cease and desist order directing the company and its officers to stop the unauthorized selling of unregistered securities or investment contracts not registered with the commission.

“Despite the cease and desist order, the operators behind the investment scam continued to solicit investments by acquiring a new corporation known as FDS Forward Direct Selling Corp. through which it continued to offer its investment scheme,” SEC said.

SEC said several One Lightning investors had come forward to file their complaints after they failed to get their investment back.

SEC said based on its investigation, One Lightning offered huge returns to investors who would participate in the investment program through the purchase of certain cosmetics and health products.

SEC said investors were lured to invest their hard-earned money after they were offered 28-percent to 30-percent profit share income and return of the money they invested within a period of three months.

PCCI official backs steel bar importer

By Othel V. Campos

STEEL importer Mannage Resources Trading Corp. received the support of Philippine Chamber of Commerce and Industry in its bid to bring in deformed steel reinforcement bars from China amid opposition by a local steel group.

Philippine Chamber of Commerce and Industry director for intellectual property Jesus Varela said Mannage had asked the assistance of the chamber against industry group Philippine Iron and Steel Institute.

“We decided, together with [our vice chairman] Donald Dee to help Mannage.

The company got all the approvals of the government. If the shipment failed to go through the market given the documents it has, this will set a dangerous precedent for

importers who have everything in order,” Varela said.

Varela said all pertinent documents were signed and within regulation, including the final import commodity clearance issued by the Trade Department’s Zambales regional director.

Varela said the provisional ICC issued by the Trade regional office prior to the final ICC was a legal document given to an incoming shipment that would subject the commodity to quality test.

“If the commodity passed the test, it is issued the final ICC,” he said.

Mannage, owned and operated by young entrepreneurs, is also partly owned by an iron mining company in Zambales that decided to stockpile the iron when global prices went down and instead sent the stockpile to China for processing and subsequent reexport to the Philippines.

He said it was the first time the company decided to engage into processing outside the Philippines and export back the same shipment that was already processed into steel products.

“They just want to test the market. Five

thousand metric tons is a drop in the bucket.

It wanted to get the approval of the Philippines Quality Standards so it can bring in quality rebars at very competitive rates,” he said.

Pisi earlier questioned the quality of the steel shipment and the lack of proper documents such as import entry and ICC and company logo.

The shipment, which arrived in April, contained 500,000 pieces of rebars with 12 mm diameter and 12 meter length at an estimated value of P95 million.

Pisi asked the Trade Department to invalidate the ICC and suspend any activities of the Trade Department regional office in Zambales and the Bureau of Product Safety in the region in relation to the said shipment.

The group initially brought the case to the attention of the government, claiming it would protect consumers from substandard steel products.

Mannage filed a case against former Customs commissioner Alberto Lina before the Ombudsman for issuing a halt and seizure order and said it would file a libel case against Pisi president Roberto Cola.

Energy chief asked to review qualified solar projects

By Alena Mae S. Flores RENEWABLE energy company Citicore Power Inc. asked newlyappointed Energy Secretary Alfonso Cusi to review the list of solar projects endorsed for the second round of feed-in-tariff rates under the previous administration.

Citicore vice president Manolo Candelaria said in a statement the company was optimistic Cusi and his team would review the department’s compliance to the rules in the latest issuance of the FIT incentives for solar projects.

Citicore Power, a subsidiary

of Citicore Investment Holdings Inc., owns two solar power plants that were not included in the list of endorsed projects to the Energy Regulatory Commission.

Several renewable energy firms also called on the Energy Department to come out with the parameters on the procedures and their bases for awarding the certificate of endorsement for FIT eligibility.

These companies questioned how the list of awardees was finalized. Issues were raised about the definition of important terms and reckoning dates that affected participants who did and did not

make the cut within the March 15 deadline of the department under the build-first rule.

Candelaria said DOE Circular No. 2013-05-0009 set the parameters in awarding the FIT that all participants were required to follow. The circular set the guidelines for the selection process of renewable energy projects under FIT system and the award of certificate for FIT eligibility.

“That circular should not be open to interpretation, much less changed while the game is already ongoing. All participants entered the FIT race on the basis of that

circular. While we know that there will be winners and losers in the race for the FIT, it should be made clear how the winners were chosen, for the benefit of everyone who participated,” he said.

“Our documents, including certifications and permits, as well as the records of hourly dispatch of solar power plants from the market operator’s website [accessible to the public], will clearly show that we commissioned and dispatched before the deadline, well ahead of other participants that have been approved to get the subsidy,” he said.

M O N D AY : J U LY 4 , 2 0 1 6

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

B5

Piñol names new DA officials

By Anna Leah E. Gonzales

AGRICULTURE Secretary Emmanuel Piñol vowed over the weekend to cut red tape in the Department of Agriculture and announced a new set of officials.

Piñol said processing of documents in the department should not exceed 15 days.

“The maximum for processing documents is 15 days. If it goes beyond that, then they will have to answer to me,” Piñol said.

“Listen to the message of the president. This government will not allow corruption. Follow the order of the presient and

make sure that you stop corruption. Be warned,” he added.

Piñol, meanwhile, appointed Evelyn Laviña as undersecretary for agribusiness and high value crops, Ranibai Dilanggalen as undesecretary for special concerns, Francisco Villano Jr. as assistant secretary for finance, Lerey Panez as assistant secretary for special projects and planning

and Hansel Didulo as assistant secretary for Visayas concerns.

Also appointed were retired commodore Eduardo Pambongan as undersecretary for fisheries and director of the Bureau of Fisheries and Aquatic Resources, retired Aamiral Joy Casillan as undesecretary for fisheries, Bong Año as assistant secretary for operations, Mary Ann Cornelio-as director for financial management services and Ferdinand Piñol as executive secretary.

Retained by Piñol were Segfredo Serrano as undersecretary for policy and planning and Berna Romulo-Puyat as officerin-charge chief-of-staff.

“I was allowed to make recommendation about the next administrator of the National Irrigation Administration, Philippine Coconut Authority and National Food Authority. Even if it’s still not under DA, I secured the approval of the president to intervene,” Piñol said.

Pinol said he recommended Domingo Duerme as National Food Authority administrator, Al Mendoza as Philippine Coconut Authority administrator and Cesar Sulaik as National Irrigation Administration administrator.

“For effective operation, this has to be back to us. But it is still up to the president

to decide. For the meantime, appointments first. I will not recommend someone I can’t work with,” Piñol said.

“I am not here to persecute people. That is not my job. We have to bring in people that the president trusts,” he added.

Piñol also ordered all employees of DA to dress simply in his first memorandum order.

The directive also prohibited all DA employees from smoking and drinking inside the premises.

“All regular and co-terminus employees are also required to undergo a mandatory medical checkup twice a year. This will be free,” Piñol said.

Effective transport solutions proposed GOVERNMENT and private transport groups and stakeholders are supporting a proposal to give President Rodrigo Duterte emergency powers to solve the daily six-hour commuting nightmare of millions of Metro Manila commuters.

At a recent high-level transport forum organized by the ADR Institute and Citizen Watch in Makati City, the participants agreed that ongoing infrastructure projects on transportation to address the issue would take years to complete due to a complicated bureaucratic process.

Without emergency powers, key projects, including the proposal to revive a rail cargo project that would ease traffic in Metro Manila and solve port congestion in Ports of Manila, will remain in the back burner.

The Japan International Cooperating Agency, which presented a study “Roadmap for Transport Infrastructure Development for Metro Manila and Surrounding Areas,” predicted that the cost of traffic in Metro Manila would increase to P6 billion a day from P2.4 billion today if there was no intervention by 2030.

The study warned that the metropolis’ lower-income group, basically the blue collar workers earning the minimum wage rate, would be hardest hit when congestion worsened by 2030, especially if the incoming Duterte government failed to institute reforms.

Senator Joseph Victor Ejercito, chairman the Senate Economic Affairs Committee, supports calls for Congress to grant the Duterte administration emergency powers to tackle the country’s public transport woes.

He stressed during the forum the importance of having a wellthought out mass transit system in the country.

New Trade head. The Department of Trade and Industry and the rest of its bureaus, offices, and attached agencies including the Board of

Investments welcomes July 1, 2016 Secretary Ramon Lopez (fourth from right) during the turnover rites at the BoI Building. With him are (from left) executive director for management support services Efren Leaño, Governor Oliver Butalid, Assistant Secretary Fe Agoncillo-Reyes, executive director for industry development services Ma. Corazon Halili-Dichosa, Governor Lucita Reyes, executive director for investment assistance Service Raul Angeles and Governor Henry Co.

Duterte directive addresses World Bank concern PRESIDENT Rodrigo Duterte’s directive to government agencies to honor contracts is timely for the local port and logistics business which, according to a World Bank study, has declined in terms of global competitiveness.

The WB’s Logistic Performance Index biennial report, entitled “Connecting to Compete 2016: Trade Logistics in the Global Economy,” noted that the Philippines fell 14 places this year to 71st place out of 160 countries from 57th in 2014.

The country scored 2.89 this year, a huge decline since 2010 when it scored 3.14 and ranked 44th.

The report ranks countries based on key criteria of logistics performance, including border clearance efficiency, infrastructure quality, timeliness of shipments, ease of arranging competitively priced shipments,

competence and quality of logistics services, and ability to track and trace consignments.

Port stakeholders have complained against a series of Bureau of Customs directives since last year as they introduced uncertainties to live contracts with the Philippine Ports Authority.

The BoC memorandums encroached on the PPA’s regulatory authority in licensing port operators and which port stakeholders also considered as a midstream change in rules.

“Logistics performance depends on the availability to traders of reliable supply chains and predictable service delivery,” according to the WB report.

The Philippines’ score in the WB report dropped in all criteria, except in timeliness of shipments, which jumped to 70th this year from 90th in 2014.

The survey showed that on

the criteria involving customs services, the country’s ranking dropped drastically.

In the efficiency of the clearance process that included speed, simplicity, and predictability of formalities by border control agencies including customs, the Philippines’s ranking declined to 78th place from 47th in 2014.

For the quality of trade- and transport-related infrastructure like ports, railroads, roads, information technology, the country decelerated to 82nd from 75th previously, and declined to 60th place from 35th in the ease of arranging competitively priced shipments criteria.

For competence and quality of logistics services from transport operators and customs brokers, the country slipped to 77th from 61st.

It also dropped to 73rd from 64th on the ability to track and trace consignments.

“The LPI plays an important role in raising awareness, and is often the starting point of a policy dialogue,” Daniel Saslavsky, trade specialist and co-author of the report, said.

For the second time in a row, Germany is the top performer with a score of 4.23, while Syria ranked last with 1.6.

In the Association of Southeast Asian Nations, the Philippines placed seventh, with Singapore in the top rank.

Singapore overall ranked fifth in the LPI survey. Only two Asean economies improved this year—Cambodia at 73rd from 83rd and Myanmar at 113th from 145th. Others all fell in ranking with Malaysia down to 32nd (from 25th), Thailand 45th (35th), Indonesia 63rd (53rd), Vietnam 64th (48th), while Brunei, which is new to the survey, ranked 70th.

Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE POWER SUPPLY AGREEMENT (PSA) BETWEEN LEYTE III ELECTRIC COOPERATIVE INC. AND GNPOWER LTD. CO. WITH PRAYER FOR CONFIDENTIAL TREATMENT OF INFORMATION ERCCASENO.2016-032RC AND THE ISSUANCE OF PROVISIONAL AUTHORITY LEYTE III ELECTRIC COOPERATIVE, INC. (LEYECO III) AND GNPOWER LTD. CO. (GNPOWER) Applicants. x---------------------------------------------x

NOTICE OF PUBLIC HEARING TO ALL INTERESTED PARTIES: On 23 March 2016, Leyte III Electric Cooperative, Inc. (LEYECO III) and GNPower Ltd. Co. (GNPower) filed their joint Application for approval of their Power Supply Agreement (PSA), with prayer for confidential treatment of information and issuance of provisional authority.

In support of said Application, LEYECO III and GNPower alleged, among others, the following: 1.

Applicant LEYECO III is a non-stock, non-profit electric cooperative existing under the laws of the Philippines, with principal office address at National Highway, Barangay San Roque, Tunga, Leyte. It isauthorized to distribute and provide electricity services to its member-consumers in the Municipalities of Alangalang, Barugo, Capoocan, Carigara, Jaro, Pastrana,San Miguel, Sta. Fe, andTunga, all in the Province of Leyte(collectively, the “Franchise Area”); 2.

Copies of LEYECO III’s Articles of Incorporation, By-Laws, Certificate of Registration, and Certificate of Franchise are attached to the Application as follows: Annex “A” “B” “C” “D”

Document LEYECO III’s Articles of Incorporation LEYECO III’s By-laws Certificate of Registration with the National Electrification Administration (NEA) Certificate of Franchise

3.

Applicant GNPOWER is a duly registered limited partnership existing under Philippine laws, engaged in the business of developing, constructing, operating, and owning power generation facilities and in the sale and trade of electric power. Its principal office is at 28th Floor, Orient Square Building, Don Francisco Ortigas Jr. Road, Ortigas Center, Pasig City; 4.

GNPOWER’s pertinent documents evidencing its due registration as a limited partnership are appended to the Application, as follows Annex “E” “F”

Document Certificate of Registration issued by the Securities and Exchange Commission (SEC) GNPOWER’s Amended Articles of Partnership

5.

Applicants maybe served with orders, notices, and other legal processes of the Commission through its counsels of record; 6.

The instant Application is filed pursuant to Sections 23, 25, 43 (u), and 45 (b) of Republic Act No. 9136,otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA Law), its Implementing Rules and Regulations, and other pertinent rules and regulations. A copy of the PSA signed

by Applicants on 18 September 2015 is attached as Annex “G” and forms an integral part of the Application;

Region 8 ECs. In addition, prospective bidders (Generation Companies, IPP Administrators and Wholesale Aggregators whose names are listed on the Department of Energy (DOE) website) were invited; 12.3.

The capacity offered by the winning bidder/s was allocated among the eleven (11) Region 8 ECs in proportion to their declared demand. A bidder was allowed to offer to supply capacity that is less than or equal to the aggregated baseload requirement in any or all of the contract years in increments of 1MW. In the event that some winning bidders offered less than 11 MW, the loads were optimally allocated in such a way that the blended price of generation resulting from the R8 JCPSP transaction is almost the same for all ECs. In the event multiple bidders who collectively satisfy the total baseload demand of R8 ECs are declared winners for any contract year, all winning bidders entered into individual PSAs with each of the 11 ECs; 12.4.

Bidders who signified their intention to join by buying the bid documents, attended pre-bid conferences where they gave their comments and sought clarification on the bidding requirements and process. The BAC issued bid bulletins and the Final Instruction to Bidders; 12.5.

The process followed the 2-envelope system – the legal requirements and proof of financial and technical capability in the first, and the commercial offer in the second. Bids were evaluated based on an Evaluation Framework and Evaluation Methodology released to the Bidders; 12.6.

After evaluating the bids of each supplier, on 14 November 2014, the BAC declared Applicant GNPOWER as a winning bidder of a total of 43 MW for Contract Year 2016, with a Lowest Calculated Responsive Bid with a Base Price offer of PhP5.0481/kWh and an evaluated Effective Price of PhP6.6658/kWh; 12.7.

On 14 September 2015,GNPOWER and the Region 8 ECs commenced the final negotiations for the other commercial and technical terms and conditions of the PSA and negotiated the further reduction of the Contract Price from PhP5.0481/ kWh to PhP4.9653/kWh and for the increase in capacity to 52MW; Attached to the Application are copies of the relevant documents issued relative to the Joint Competitive Selection Process undertaken by the Region 8 ECs for the supply of their aggregated base load demand: Annex “H” “H-1” “H-1-a” “H-2” “H-3” “H-4” “H-5” “H-6” “H-7” “H-8”

Contract Duration Dec. 26, 2014 – Dec. 25, 2015 Dec. 26, 2015 – Dec. 25, 2016 Dec. 26, 2016 – Dec. 25, 2017 Dec. 26, 2017 – Dec. 25, 2018

14.

The following are the salient features of the PSA:

A.

Term The Agreement shall be effective from 18 September 2015, the date of the execution of the PSA.

B.

Exchange of Contracted Capacities. In order to maximize capacity utilization, Region 8 ECs may exchange quantities of their Contracted Capacities.

(Exchange in MW Capacity Protocol annexed to the PSA)

9.

On 07 November 2013, the eleven (11) ECs of Region8 participated in thebidding for PSALM’s 200 strips of energy from the Unified Leyte Geothermal PowerPlant, but lost;

C.

The Region 8 ECs initially prepared their respective least-cost power supply plans and subsequently their aggregated baseload demand for competitive bidding;

12.2.

The competitive tender was published and announced in the coverage areas of the

Contract Price Under Schedule 1 of the PSA, the Total Monthly Charge, before taxes, for a Billing Period shall be computed according to the following:

Total Monthly Charge = Capacity Charge+Energy Charge C. 1. Capacity Fee and Capacity Charge

11. Thus, the Region 8 ECs decided to bid out their power supply requirements for the period 2015-2018.

In the middle of 2014, the Region 8 ECsconducted a Joint Power Supply Planning. Later,the Region 8 ECs decided, through a Memorandum of Agreement (MOA), to conduct a joint procurement of their short-term aggregated baseload requirement, specifically, their power supply needs beginning 26 December 2015 until 25December 2016. From September to December2014, the competitive bidding for the region’s power requirements was held;

12.1.

Contracted Capacity GNPOWER shall sell and deliver, or cause to deliver to LEYECO III a contracted capacity of 1MW at the delivery point of the facility.

Unutilized Capacity. The unutilized capacity of the Buyer may be made available for utilization of other Region 8 ECs or sold to the WESM.

8.

The contracts of most of the Electric Cooperatives (ECs) in Region 8 with the National Power Corporation - Power Sector Assets and Liabilities Management Corporation (NPCPSALM) expired on 25 December 2014;

12. For such purpose, a Bids and Awards Committee was created to conduct the Region 8 Joint Competitive Power Supply Procurement (“R8 JCPSP”) as follows:

LCRCUF

= the local component of the Capital Recovery Fee in PhP/kWh at the given CUF.

LFOMCUF = the local component of the Fixed O&M fee in PhP/kWh at the given CUF. PHCPIn-1 = Philippine Consumer Price Index of the calendar month prior to the month corresponding to the Billing Period, for All Income Households – All Items (2006=100), as published by the Philippine National Statistics Coordination Board (or its substitute or replacement agency, as the case may be).

PHCPI0

= the base Philippine Consumer Price Index for the month of December 2014. PHCPI0 = 140.5.

CUF

= the Capacity Utilization Factor between 70% and 100%, provided that if the actual CUF is below 70% (the “Minimum Capacity Utilization Factor”), the Capacity Price shall be calculated based on the Capacity Fee and quantity associated with the Minimum Capacity Utilization Factor.

The corresponding Capacity Fee price component for a given Capacity Utilization Factor is set forth in the Table below:• Capacity Fees for Specific Capacity Utilization Factors CAPACITY FEE LOCAL PRICE COMPONENTS (PHP/kWh) C.U.F.

Capital Recovery (LCRCUF)

Fixed O&M (LFOMCUF)

100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% 89% 88% 87% 86% 85% 84%

2.2944 2.3176 2.3412 2.3654 2.3900 2.4152 2.4409 2.4671 2.4939 2.5213 2.5493 2.5780 2.6073 2.6372 2.6679 2.6993 2.7314

0.6204 0.6267 0.6331 0.6396 0.6463 0.6531 0.6600 0.6671 0.6743 0.6818 0.6893 0.6971 0.7050 0.7131 0.7214 0.7299 0.7386

83%

2.7643

0.7475

82% 81% 80% 79% 78% 77% 76% 75% 74% 73% 72% 71% 70%

2.7980 2.8326 2.8680 2.9043 2.9415 2.9797 3.0189 3.0592 3.1005 3.1430 3.1867 3.2315 3.2777

0.7566 0.7659 0.7755 0.7853 0.7954 0.8057 0.8163 0.8272 0.8384 0.8499 0.8617 0.8738 0.8863

For the resulting CUF which is not a whole number, the corresponding Capacity Fee Price Component shall be computed using the formula below:

For the delivery of the contracted capacity, it shall have a term of one (1) year, starting on 26 December 2015 (12:00 A.M.) to 25 December 2016 (12:00 M.N.)

Aggregated Baseload 65 MW 78 MW 83 MW 93 MW

10. Typhoon Yolanda hit the region on 08 November 2013 stalling any efforts to contract additional powersupply and shifting the focus instead on themassive restoration efforts in the area;

= the Capacity Fee in PhP/kWh for a given CUF in a Billing month.

13. On 18 September 2015,LEYECO III and GNPOWER executed the subject PSA, providing the terms and conditions for the supply of 1 MW baseload power toLEYECO III,to assure the adequate and reliable supply of power to LEYECO Ill’s franchise area; ABSTRACT OF THE PSA AND OTHER RELATED INFORMATION

STATEMENT OF FACTS 7.

The aggregated uncontracted baseload demand of Region 8 for years 2015 to 2018 is continually increasing as shown in the table below: Contract Year 2015 2016 2017 2018

Document Invitation to Bid Copy of the page of the newspaper where the Invitation was published Affidavit of Publication of the Invitation to Bid Memorandum of Agreement among Region 8 ECs Emails confirming participation of interested suppliers in the bidding Final Instruction to Bidders Bid Forms Bid Evaluation Slips Comparison of Bids Notice of Award

CFCUF

The Capacity Fee is the component of the Contract Price allocated to pay for the cost, as well as, the operations and maintenance of the Facility and is designated as the Capacity Fee in Schedule 1 of the PSA as such may be adjusted from time to time based on LEYECO III’s Capacity Utilization Factor.

Where: Q ACTUAL CC HT EHTO

= the actual energy delivered, in kWh, to the Buyer at the Delivery Point for the Billing Period. = is the Contracted Capacity in kW. = is the total number of hours in the Billing Period. = the sum of the duration, in Equivalent Hours, of Scheduled Outages and Unscheduled Outages in such Billing Period

LCRCUF =

Where,

LFOM CUF =

LCR@100% CUF

LFOM

LFOM @100% CUF

LCRCUF

- is the local component of the Capital Recovery fee in PHP/kWh at the given CUF.

LCR@100%

– is the local component of the Capital Recovery fee in PHP/kWh at 100% CUF.

LFOMCUF

– is the local component of the Fixed O&M fee in PHP/kWh at the given CUF.

LFOM @100%

– is the local component of the Fixed O&M fee in PHP/kWh at 100% CUF.

CUF

– is the Capacity Utilization Factor between 70% and 100%, provided that if the actual CUF is below 70% (the “Minimum Capacity Utilization Factor”), the Capacity Price shall be calculated based on the Capacity Fee and quantity associated with the Minimum Capacity Utilization Factor.

The Capacity Utilization Factor (CUF) shall be computed as follows: CUF = max Where: Q ACTUAL

= the actual quantity of energy, in kWh, delivered to LEYECO III at the Delivery Point in the Billing Period

CC

= the Contracted Capacity, in kWh, as set forth in Schedule 1 = the total number of hours in such Billing Period

HT EHTO

= the sum of the duration, in Equivalent Hours, of Scheduled Outages and Unscheduled Outages in such Billing Period C. 2. Energy Fee and Energy Charge The Energy Fee is the component of the Contract Price allocated to pay for the coal, including

Government Charges, designated as the Energy Fee in Schedule 1 of the PSA as adjusted from time to time due to changes in the delivered price of coal and Governmental Charges. The Energy Fee shall be computed in accordance with the following formula: Energy Charge = Q ACTUAL x EF EF = 0.2874 x

+ 1.5256 x

+ 0.2375

= Actual energy delivered by GNPOWER to LEYECO III, in kWh, for the Billing Period

EF

= Energy Fee in PhP/kWh

PHCPIn-1

= Philippine Consumer Price Index of the calendar month prior to the month corresponding to the Billing Period, for All Income Households – All Items (2006 = 100), as published by the Philippine National Statistics Coordination Board (or as substitute or replacement agency, as the case may be)

PHCPI0

= base Philippine Consumer Price Index for the month of December 2014 for All Income Households – All Items (2006 = 100), as published by the Philippine National Statistics Coordination Board (or its substitute or replacement agency, as the case may be)

ICI n-1

= Indonesian Coal Price Index of the calendar month prior to the month corresponding to the Billing Period, in US$/Mton

ICI0

= Base Indonesian Coal Price Index for the month of December 2014 = US$67.28/Mton

109,938,000.00 00.00

61.32% 0.00%

WESM

13,815,281.14

103,340,054.77

38.68%

TOTAL

35,715,281.14

213,278,054.77

100%

ANNEX “I” “J” “K” “K-1” “L” “M” “N” “O” “P” “Q” “R” “S”

E. Scheduled and Unscheduled Outages Under the PSA,GNPOWER shall be allowed Scheduled and Unscheduled Outages not to exceed forty-five (45) days per Contract Year, during which time reduced or no delivery will be available to LEYECO III.

“T”

G. Prompt Payment Discount Provided DORELCO has no arrears from previous billings, including the Security Deposit or any unpaid charges or penalties, if LEYECO III pays the invoice amount in full within 10 days from its receipt of the invoice, LEYECO III shall be credited on the next subsequent bill a PPD equivalent to eight centavos per kilowatt-hour (PhP0.08/kWh).

H. Security Deposit In the event of LEYECO III’s failure to pay on Due Date, GNPOWER shall draw, at its option, from the Security Deposit on the working day immediately following the Due Date. Within thirty (30) Business Days from the Start of Delivery Date, LEYECO III shall establish the Security Deposit and submit to GNPOWER documentary proof sufficient to allow GNPOWER to draw therefrom. The Security Deposit shall be in the form of cash and or irrevocable letter of credit and shall be equivalent to LEYECO III’s projected maximum electricity bill, to be determined not later than sixty (60) calendar days prior to Start of Delivery.

COMMERCIAL ADVANTAGE OF THE GENERATION RATE AND IMPACT ON BILECO’S RETAIL RATES 15. LEYECO III, together with the other Region 8 ECs, needs to address the insufficiency of its power supply due to the increasing demand within its franchise area and the expiration of its contract with NPC-PSALM; 16. Currently, LEYECO III receives a total of 2.5 MW from its existing suppliers, out of its peak requirement of 7.2 MW. With an annual average growth rate of 3%, LEYECO III forecasts that its peak demand from 26 December 2015 to 25 December 2016 will be 7.76 MW; 17. The additional supply from GNPOWER will significantly augment the supply deficiency of LEYECO III and will decrease the adverse effects thereof by providing a stable and adequate source of electricity; 18. Among alternative suppliers capable of providing additional energy to LEYECO III and the rest of the Region 8 ECs, GNPOWER’s rates proved to be more reasonable and competitive. While GNPOWER’s offer is primarily intended for its base load requirements, the Capacity Factor Pricing under the PSA provides flexibility in the DUs’ utilization of the Contracted Capacity; 19. LEYECO III simulated a rate impact analysis which ultimately resulted in a Php0.1018/kWh decreasewith the execution of the PSA with GNPOWER, to wit:1 Simulation of Generation Mix Rate with GN Power for the Year 2016

2016 Average Rate (P/kWh) 5.0200

Weighted Average Rate (kWh)

61.32%

Resulting Capacity Factor (%) 100%

24.53%

100%

5.5611

5.8698

Power Supplier

Forecasted 2016 Quantity (kWh)

Amount (PhP)

Percent Share (%)

GCGI

21,900,000.00

109,938,000.00

GNPOWER

8,760,000.00

48,715,236.00

WESM

5,055,281.14

50,988,184.71

14.15%

TOTAL

35,715,281.14

209,641,420.71

100%

5.3344

Simulation of Generation Mix Rate without GN Power for the Year 2016

Forecasted 2016 Quantity (kWh)

Amount (PhP)

Percent Share (%)

Resulting Capacity Factor (%)

100% 100%

5.0200 0.0000

5.9716

5.3344

20. In addition to the lower generation cost of the power supply from GNPOWER, LEYECO III is also entitled to a Prompt Payment Discount (PPD), if conditions are met, equivalent to PhP0.08/kWh; 21. In compliance with Rule 20 of ERC Rules of Practice and Procedure relative to the submission of supporting documents and information for the approval of the PSA and the rate structure embodied therein, Applicants attached the following documents to form integral parts hereof:

D. Currency of Payment The Contract Price shall be paid by LEYECO III in Philippine Peso only.

Unutilized Equivalent Hours for Scheduled Outages and Unscheduled Outages in the Contract Year cannot be carried forward to subsequent Contract Year.

F. Replacement Power During any Scheduled or Unscheduled Outages, GNPOWER and LEYECO III shall cooperate to arrange for Replacement Power from, including but not limited to, other facilities of GNPOWER, third parties and the WESM. GNPOWER, at its own cost and in consultation with LEYECO III, shall negotiate on behalf of LEYECO III for the supply and delivery of capacity and energy from third parties for a price as close as possible to the Contract Price.

Power Supplier

21,900,000.00 00.00

Generation Rate Impact: -0.1018

Where: Q ACTUAL

GCGI GNPOWER

2016 Average Rate (P/kWh)

Weighted Average Rate (kWh)

DOCUMENT Executive Summary of the PSA Rate Impact Simulation Sources of Funds/Financial Plans with Cost Assumptions Compact Disc containing a soft copy of Annex “K” Breakdown of the Contract Price Sample Computation of Power Rates GNPOWER’s Audited Financial Statement for 2014 GNPOWER’s Certificate of Registration No. WA-13-01-001 valid until January 2018 LEYECO III’s Distribution Development Plan (DDP) LEYECO III’s Actual and Forecasted Energy and Demand LEYECO III’s Average Daily Load Curve LEYECO III’s Board Resolution No. 2015-09-142, authorizing the approval and signing of the PSA with GNPOWER, designating signatories thereto and to file an application with the ERC for PSA approval GNPOWER’s General Partner’s Certificate attesting to the resolution of the Board to execute the subject PSA with LEYECO III and designating signatories thereto

31. All the foregoing allegations are re-pleaded by reference in support of theirPrayer for the issuance of Provisional Authority (PA) to implement the subject PSA; 32. LEYECO III and GNPOWER pray for the issuance of a PA or interim relief prior to final decision pursuant to Rule 14 of the ERC Rules of Practice and Procedure, to wit: “Section 3. Action on the Motion. – Motions for provisional authority or interim relief may be acted upon with or without hearing. The Commission shall act on the motion on the basis of the allegations of the application or petition and supporting documents and other evidences that applicant or petitioner has submitted and the comments or opposition filed by any interested person, if there be any.”

33. Considering that a substantial amount of time is needed to evaluate the documents submitted to support the approval of herein Application, Applicants seek the kind consideration of the Commission to approve the instant Application, immediately, albeit, provisionally; 34. Owing to the short term of the contract, which is only for a period of one (1) year, a PA is all the more imperative to allow the timely delivery of energy by GNPOWER to LEYECO III, which is set to start on 26 December 2015 at 12:00 A.M.; 35. The Region 8 EC’s, including LEYECO III, after careful evaluation if theywill defer the commencement of the delivery due to delayed filing, decided and required GNPower to commence its delivery immediately after its previous power supply agreement expired last 25 December 2015, this beingthe reasonable plan to mitigate the risks of WESM exposure,speciallywith the assumption that the 2015 occurrence of El Nino has an adverse impact on the supply of electricity and the WESM price,particularly during the summer season.LEYECO III, Moreover, it was projected, as shown in the table below5, that the exposure to volatile market prices will cause significant increases in prudential guarantee payments which will constrain Region 8 ECs to avail of high interest-bearing loans in order to comply with PEMC requirement;

22. Applicants reserve their right to submit other documents, either in the course of the hearing or as may be required by the Commission; COMPLIANCE WITH PRE-FILING REQUIREMENTS 23. Applicants manifest compliance with the prefiling requirements mandated under the Implementing Rules and Regulations of the EPIRA and Rule 6 of the ERC Rules of Practice and Procedure,to be established by the following: 23.1 Certifications acknowledging receipt of the Application with annexes to be issued by the Legislative Bodies of Pasig City, Municipality of Tunga, and the Province of Leyte, to be appended as Annexes “V”, “W” and“X”, respectively; 23.2 Notarized Affidavit of Publication stating that the Application was published in a newspaper of general circulation within LEYECO III’s Franchise Area, to be appended to the Application as Annex “Y”; and 23.3 Complete newspaper issue where the Application was published, to be appended to the Application as Annex “Y-1”, and the relevant page thereof where the Application appears, as Annex “Y-2”; MOTION FOR CONFIDENTIAL TREATMENT OF ANNEXES“H-2” to “H-8”,“K”, and “K-1” 24. Under Rule 4 of the ERC Rules of Practice and Procedure, a party to any proceeding before the Commission may request that certain information not be disclosed and be treated as confidential, by describing with particularity the information to be treated as confidential, specifying the ground for the claim of confidential treatment of the information and, if applicable,specifying the period during which the information must not be disclosed; 25. LEYECO III requests for the confidential treatment of Annexes ”H-2” to ”H-8” of the Application, consisting of the MOA among Region8 ECs, e-mails confirming participation of interested supplied in the bidding,Final Instructions to Bidders, Bid Forms, Bid Evaluation Slips, Comparison of Bids,and Notice of Award,respectively.These annexes show the individual offers of the bidders which participated in the R8 JCPSP. The Region 8 ECs, LEYECO III included, are bound by their undertaking to secure and keep in confidence the offers and the proposed terms of supply, so as not to prejudice or pre-empt any future CSPs in which these bidders will participate. Otherwise, LEYECO III and the rest of the Region 8 ECs may be held liable for damages for breach of confidentiality, and eventually,risk their good relations with the suppliers concerned; 26. Similarly, GNPOWER respectfully moves for the confidential treatment of Annexes “K” and “K-1” hereof, consisting of GNPOWER’s Sources of Funds and Financial Plans with Cost Assumptions.These annexes, exclusively owned by GNPOWER, contain information which are considered part of its business and trade secrets. As such, GNPOWER has the sole proprietary interest and will be unduly prejudiced should they be disclosed to the public; 27. These annexes contain numbers, data, formula, methodology, and calculations involving valuable and sensitive commercial, financial information reflecting GNPOWER’s business operations and financial trade secrets. Therefore, GNPOWER’s confidential, proprietary, and private information included in the aforesaid annexes should be protected from public dissemination.

Otherwise, such information can be illegally and unfairly utilized by business competitors who may use the same for their own private gain and to the irreparable prejudice of GNPOWER.Negotiations with prospective customers may also be affected.

28. The information contained in Annexes “K” and “K1”, constitute “trade secrets”, for which GNPOWER has actual and valuable proprietary interest. As explained by the Supreme Court, a trade secret may consist of any formula, pattern, device, or compilation of information that is used in one’s business and gives the employer an opportunity to obtain an advantage over competitors who do not possess the information2 . It is indubitable that trade secrets constitute proprietary rights and jurisprudence has consistently acknowledged the private character of trade secrets3 .

Further, as ruled in Garcia vs. Board of Investments4 , trade secrets and confidential, commercial and financial information are exempt from public scrutiny; 29. Accordingly, Annexes “H-2” to “H-8”, “K” and “K1” be accorded confi dential treatment. As suc h, they are to be used exclusively by the Commission and for the sole purpose of evaluating this Application, thereby protecting these data from unnecessary public disclosure; 30. In accordance with Section 1(b), Rule 4 of the ERC Rules of Practice and Procedure, Applicants submit one (1) copy each of Annexes “H-2” to “H-8”, “K” and “K-1” in a sealed envelope, with the envelope and each page of the documents stamped with the word “Confidential”. .

36. The additional power from GNPOWER is needed to curtail any power interruptions that maybe experienced

by LEYECO Ill’s member-consumers due to inadequate power supply in the region; 37. To further support the prayer for PA, an affidavit emphasizing the necessity thereof is attached to the Application as Annex ”Z”,and form an integral part thereof; PRAYER 39. Applicant LEYECO III and GNPower pray before the Commission that: i.

All information attached as Annexes “H-2” to “H8”, “K” and “K-1” to the Application be treated as confidential; ii Pending hearing on the merits, a PA be issued authorizing the immediate implementation of the subject PSA, including the rate structure therein, as applied; iii.

After due notice and hearing, the instant Application, the PSAand the rate structure contained therein be duly approved; and iv.

In the event that a Final Authority shall be issued after GNPOWER starts actual delivery of power to LEYECO Ill’s under the terms of the subject PSA, said Final Authority be retroactively applied to the date of such actual delivery.

The Commission has set the Application for the hearing, expository presentation, pre-trial conference, and presentation of evidence on 04 August 2016 (Thursday) at ten o’clock in the morning (10:00 A.M.) at LEYECO III’s Main Office, National Highway, Barangay San Roque, Tunga, Leyte.

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 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 wish to have a copy of the Application may request from the Applicants that they be furnished with the same, prior to the date of the initial hearing. Applicants are hereby directed to furnish all those making such request with copies of the Application and its attachments, subject to the reimbursement of reasonable photocopying costs. Any such person may likewise examine the Application and other pertinent records filed with the Commission during the standard office hours.

WITNESS, the Honorable Chairman, JOSE VICENTE B. SALAZAR, 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 18th day of May 2016 in Pasig City.

ATTY. TY. NATHAN J. MARASIGAN Chief of Staff Office fice of the Chairman and CEO

1

2 3 4

PRAYER FOR PROVISIONAL AUTHORITY

5

Notes: 1.

Analysis and simulations is based on LEYECO III hourly load profile.

2.

GN power is based of effective Price.

3.

WESM prices is based 2011-2013 average prices of Ex-Ante and Ex-Post Price Nodal Point of LEYECO III. Air Philippines Corporation vs. Pennswell Inc., G.R. No. 172835, December 13, 2007.

Ibid., 177 SCRA 374 (1989).

Additional equivalent rate due to additional Prudential Guarantee required by PEMC (for the undelivered contracted capacity from GNPower) with a conservative loan interest of 6% per annum and baseload load factor of 81%. ( T S - J U L 4 /11, 2 016)

M O N D AY : J U LY 4 , 2 0 1 6

B8

CESAR BARRIOQUINTO EDITOR

editorial@thestandard.com.ph

WORLD

Onstage. Singer Mariah Carey performs onstage during the 2016 ESSENCE Festival presented by Coca Cola at the Louisiana Superdome on July 2, 2016, in New Orleans, Louisiana. AFP

Baghdad blast kills at least 75 ‘Deer Hunter’ director Michael Cimino dies WA S H I N G T O N — M i c h a e l Cimino, who directed the Oscarwinning Vietnam War film “The Deer Hunter” but then saw his career fade with a big-money box office flop, died Saturday at the age of 77.

Besides his grim, moving tale of the Vietnam War, Cimino will be remembered for the budgetbusting failure “Heaven’s Gate” released not long thereafter in the 1980s.

Cimino’s death, first reported

by Cannes film festival director Thierry Fremaux and the New York Times, was confirmed by Lt. B. Kim of the Los Angeles County coroner’s office.

Kim told AFP that Cimino was found dead in his Beverly Hills home and that the cause of death

is pending.

The Times quoted the director’s friend and former lawyer Eric Weissmann as saying Cimino’s body was found at his home after friends were unable to reach him by telephone.

“The Deer Hunter”, released in 1978, was a gut-wrenching tale of a group of American friends in Pennsylvania whose lives were scarred by the Vietnam War. One of its most gripping scenes depicts characters played by Robert De Niro and Christopher Walken, held prisoner by the North Vietnamese army, playing Russian roulette against each other.

“The Deer Hunter” received nine Oscar nominations and won five, including best picture and best director. AFP

BAGHDAD—A suicide car bombing claimed by the Islamic State group killed at least 75 people in a Baghdad shopping district in the early hours of Sunday, the deadliest single attack in the capital this year.

The blast, which ripped through a street in the Karrada area where many people go to shop ahead of the holiday marking the end of the Muslim fasting month of Ramadan, came after IS lost one of the last two cities it held in the country.

The bombing also wounded more than 130 people, security and medical officials said.

The attack set buildings in the area ablaze, reducing some to charred hulks and also torching shops.

Men carried the bodies of two victims out of one burned building and a crowd of people looked on from the rubble-filled street as firefighters worked at the site.

IS issued a statement claiming the suicide car bombing, saying it

was carried out by an Iraqi as part of the group’s “ongoing security operations”.

The jihadist group said the bombing targeted members of Iraq’s Shiite Muslim majority, whom it considers heretics and frequently attacks in Baghdad and elsewhere.

Bombings in the capital have decreased since IS overran large areas north and west of Baghdad in June 2014, apparently because the jihadists were occupied with operations elsewhere.

But the group has struck back against Iraqi civilians after suffering military setbacks, both as a means of revenge and to portray itself as being on the offensive.

In May, the capital was rocked by a series of blasts that killed more

than 150 people in seven days.

The latest bombing came a week after Iraqi forces completely recaptured Fallujah, a city 50 kilometers west of Baghdad, from the jihadists.

Anti-government fighters seized Fallujah in early 2014 and it later became one of IS’s main strongholds in the country.

Iraqi forces launched an operation in May to recapture the city, one of only two in the country still held by IS. The defeat was compounded by a devastating series of air strikes targeting jihadist forces as they sought to flee the Fallujah area.

Iraqi and US-led coalition aircraft destroyed hundreds of IS vehicles and killed dozens of fighters in two days of strikes against jihadist convoys after the end of the fighting, officials said.

With Fallujah retaken, Iraqi forces are now setting their sights on second city Mosul, the last major population center held by IS in Iraq. AFP

Nobel laureate Elie Wiesel dead at 87

JERUSALEM—Elie Wiesel, the Holocaust survivor, writer and Nobel peace laureate who worked to keep alive the memory of the Jews slaughtered during World War II, has died aged 87.

Wiesel, a Romanian-born US citizen, was perhaps best known for his memoir “Night” detailing his experiences in the Auschwitz concentration camp.

He won the Nobel peace prize in 1986, when he was described as having “made it his life’s work to bear witness to the genocide committed by the Nazis during World War II”.

Once known as “the world’s

leading spokesman on the Holocaust,” Wiesel died at his home in Manhattan on Saturday, the New York Times reported.

Israeli Prime Minister Benjamin Netanyahu, who reportedly tried to convince Wiesel to run for president in 2014, called him “an exemplar of humanity”.

“Elie, a master of words, expressed in his unique personality and fascinating books the victory of the human spirit over cruelty and evil,” the premier said in a statement.

“In the darkness of the Holocaust, in which six million of our brothers and sisters perished, Elie

Wiesel was a beacon of light and an exemplar of humanity that believes in man’s good.”

Born Eliezer Wiesel on September 30, 1928, the Nobel prize winner grew up in a small town in Romania.

His parents raised him and his three sisters in a Jewish community, until they were all detained during the Holocaust when he was a teenager.

His mother and younger sister were killed in the gas chamber at Auschwitz, according to his biography. His father died of dysentery and starvation at Buchenwald, where Wiesel was freed by US soldiers at the age of 17. AFP

Party. Indian Bollywood actor Riteish Deshmukh attends a party for a newly-opened restaurant in Mumbai on July 2, 2016. AFP

M ONDAY : J ULY 4, 2016

C1

ISAH V. RED EDITOR

BING PAREL

A S S O C I AT E E D I T O R

BERNADETTE LUNAS WRITER

isahred @ gmail.com

SIP & SAVOR

LIFE MARUYA:

DUTERTE’S SOCIAL METAPHOR THE JOYCE OF EATING JOYCE BABE PAÑARES

W

hen the First Philippine Republic was inaugurated on January 23, 1899, then President Emilio Aguinaldo hosted a banquet that was typical of the elite.

According to nationalist historian Renato Constantino, the food served during the inaugural was European, and the menu – which included, among others, oysters, pink prawns, salmon with hollandaise sauce, stuffed crabs, mutton cutlets, stuffed turkey, sliced ham, and a dessert platter of cheese, fruits, jams, and strawberry jelly – was written in French.

Over the years, the presidential inaugural has been traditionally lavish, the food sumptuously rich and served using Malacañang’s best china and silver. Until Thursday’s spread for the country’s 16th President, Rodrigo Roa Duterte, that is.

The 71-year-old Duterte, who has earned the moniker “The Punisher” in Davao City where he was mayor for 22 years, wanted a frugal menu, perhaps in keeping with his image of a probinsyano with simple taste, a man of the masses who promised radical changes in his six-year term.

“The menu included monggo soup with tinapa and alugbati, pan de sal with kesong puti and Vigan longganisa, fried lumpiang ubod, durian tartlet and maruya (fried banana fritter). These are food that he grew up with in Mindanao,” said Communications Secretary Martin Andanar. The caterer, Via Mare, also served puto bumbong and bibingka.

“The President has always said that he wants a simple inaugural ceremony. He does not like lavish food. He wanted the menu to be simple, consistent with who he is as a person,” he added.

The humble maruya, in particular, holds a special meaning for Duterte.

“More than anything, maruya is a food of the masses. The preparation may vary from region to region, but it is a staple snack across the country. And for our President, it is a metaphor for the simple life of the Filipinos who voted for him,” Andanar said.

President Rodrigo Duterte and Papal Nuncio Giuseppe Pinto, dean of the diplomatic corps, offer a toast for the country's success.

Palace waiters serve simple Filipino snacks, including fried lumpiang ubod and maruya.

Maruya, which means deep-fried, can be made using saba (Cardava or plantain) or camote (sweet potato) with batter. There are other variations of the fried banana, depending on where you are in the country.

The maruya served during the presidential inaugural is the pinaypay, which is deepfried banana sliced in such a way that it resembles a hand fan. In the Bicol region, they also have the sinapot – bananas coated with rice flour batter cooked on top of cacao leaves, which give them a webbed pattern and an aromatic fragrance.

However, Filipinos – actually Asians, in general – have the Portuguese to thank for bringing the concept of banana fritters into our part of the world. In 1511, the Portuguese reached Malacca’s shores and

‘More than anything, maruya is a food of the masses. The preparation may vary from region to region, but it is a staple snack across the country.

And for our President, it is a metaphor for the simple life of the Filipinos who voted for him’ – Martin Andanar, Communications Secretary

Durian tartlet, a product of Davao City where Duterte has served as mayor for 22 years.

introduced frying banana with flour. The delicacy has since spread across Asia: pisang goreng in Indonesia, which is usually served with condensed milk or jam; kuih kodok in Malaysia, named after the kodok or toad for its toad-like round shape; chuoi chien in Vietnam that comes with a dipping sauce made of coconut milk, salt, sugar and toasted sesame; and kluay kaek in Thailand, which is drizzled with caramelized sugar.

Maruya aside, perhaps the best person to attest to Duterte’s simple taste for food is his personal chef, Peter de Cauwer.

A Belgian who speaks fluent Cebuano, Cauwer – a master chef and baker – will now be manning the Palace kitchen.

Aside from sautéed monggo beans, Cauwer said the President also loves daing

or fried dried fish, dried squid, corned beef in garlic, and paksiw na isda or fish poached in vinegar.

The President, Cauwer said, has no dietary restrictions, but he is not fond of chocolates nor of having several dishes served in one meal.

Duterte also has no qualms about eating at a turo-turo or carinderia. In fact, the seven-term mayor of Davao City used to start his day with a hearty breakfast at the Thrunks Place carinderia near his house at the middle-class subdivision Doña Luisa Village.

The President could not have put it more succinctly: “I am a very simple man with one viand and rice only. It would be enough for me.” And of course, a maruya or two.

M ONDAY : J ULY 4, 2016

C2

LIFE isahred @ gmail.com

WORLD’S YUMMIEST DOUGH

BY ROBBIE PANGILINAN

P

izza makers put on the pie a variety of toppings – pepperoni, ham, beef, pineapple, cheese, anchovies, tomato sauce, and many others – but in Pizza World, it’s the dough that is ohso-special.

One of the uniqueness of Pizza World is its yummy dough, which is not thick and not thin, handmade, and made of wheat.

“Our dough is not just delicious but also healthy,” says co-founder Dr. Farzaneh Shamsi.

“Since we are in the medical field it was important for us to create pizza that not only tastes good but is also healthy, so we thought of the wheat dough pizza breading,” explains the other founder Dr. Shahideh Nikbin.

A diet high in wheat has been shown to significantly reduce the risk of high blood pressure.

Moreover, many of the nutrients and minerals found in whole

Six Cheese Pizza made with mozzarella, Monterey Jack, gouda, provolone, parmesan and cheddar cheese

wheat bread have been found to promote healthy heart function.

Whole wheat can help strengthen the immune system and fight many other medical conditions from cancer prevention and improving cardiovascular health to reducing the risks of diabetes

and protecting the body from free radicals.

Wheat provides almost triple the amount of fiber as white bread.

Diets high in fiber are essential to warding off digestive problems and can significantly reduce the risk of developing colon cancer.

Greek Pizza is a healthy pie topped with shiitake mushroom, spinach, feta cheese and mozzarella cheese

Pizza World’s bestseller is the Special Pizza with its ingredients Hungarian sausage, assorted hams, bell peppers, mushrooms, mozzarella and Gouda cheese.

The best of the world is also here: Greek Pizza has shitake

mushroom, spinach, feta cheese and mozzarella cheese; the Persian Pizza is made of Persian sauce, beef, button mushrooms, bell pepper, onions and mozzarella cheese; and Texas Ranch has garlic, chicken, bacon, parmesan and mozzarella cheese.

Today is McDonald’s Welcome Change Day

English Breakfast Loaf pairs perfectly with coffee, chocolate, milk or tea

English Breakfast Loaf at Café Romançon

There is no better way to start your day than with slices of an English Breakfast Loaf, paired with either your favorite cup of freshly-brewed coffee, hot chocolate, must-have tea, or refreshing milk.

The butter cake, sprinkled with copious amounts of crunchy walnuts, cashew nuts, dried apricots, dried mangoes, red cherries, is topped with choice white chocolate ganash. Café Romançon’s signature early morning delicacy is an ideal treat.

The restaurant also offers flavorful cakes such as Chocolate Fondant, Opera, Mango Delight, Black Forest, White Forest, Chocolate Caramel, Mocha, Tiramisu, New York Strawberry Glazed Cheesecake, Blueberry Cheesecake and Strawberry Cheesecake. Also available are cheesy ensaimadas and Viennese brownies.

All desserts are creations by head confectioner Chef Rodelio Tuguib.

Café Romançon is located at Hotel Benilde Maison De La Salle, at the corner of Arellano and Estrada Streets, Malate, Manila. Please call 230-5230 local 5006 for orders.

Every day is an opportunity to embrace change, experience new things, and explore new grounds. Anyone who is ready to welcome change is invited to enjoy Burger McDo on Monday, July 4, from 2:30 to 3:30 p.m. at select McDonald’s stores nationwide, for free.

Coined as McDonald’s ‘Welcome Change Day,’ you can bite into change and savor the new and improved Burger McDo. It’s one delicious hour that you definitely do not want to miss.

Burger McDo is now made with a beefier and juicier patty, tastier

Bite into the new and improved Burger McDo and get a motivational sticker today

and sweeter sauce, all sandwiched in the same soft bun.

As an added treat, you can also get limited edition stickers that will surely motivate and inspire you to welcome change everyday.

So mark your calendar and welcome change with the new Burger McDo at McDonald’s on July 4. Share your photos enjoying the new Burger McDo via facebook.com/ mcdo.ph or tag @McDo_PH on Twitter or Instagram with #WelcomeChange.

For the complete list of participating stores, Mcdo PH on Facebook.

Mid-Autumn Mooncakes New World Makati Hotel welcomes the Mid-Autumn Festival with an assortment of traditional handmade mooncakes.

As a special treat for guests looking forward to the celebration, the hotel extends an Early Bird discount of 10 percent on orders placed until July 30 for five or more boxes, or 20 pieces. Guests with bulk orders of 20 to 100 boxes also enjoy a 20 percent discount, and Club Epicure members receive a 15 percent discount.

Hong Kong Chef Wong Sing To prepares a selection of four flavors – Five Seed, Double Yolk White Lotus, Double Yolk Red Lotus, and Double Yolk Red Bean.

Packaged in stylish boxes, guests can share the mooncakes with loved ones, friends and colleagues. Guests may buy the treats with their choice of flavors starting at P1,188 for a box of four pieces.

The Mid-Autumn mooncakes are also offered individually, at P368 per piece for Red Bean and Red Lotus flavors and P468 per piece for White Lotus and Five Seed flavors.

New World Makati's Mid-Autumn mooncakes come in four delectable flavors

According to ancient Chinese history, as the autumn harvest comes to a close, the moon stands out and shines brightest.

This signals the start of the MidAutumn Festival, where feasts are widespread and the men are full of thanksgiving, love and happiness.

The Mid-Autumn Festival calls for family gatherings and the exchange of the much-loved

traditional mooncake delicacy.

New World Makati Hotel’s Mid-Autumn mooncakes will be available for pick-up the whole month of August.

Rates include service charge. For more information, please contact Jasmine restaurant at +63 2 811 6888 extension 3338 and ask for Toni Lou Manalo.

M ONDAY : J ULY 4, 2016

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LIFE

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RAMEN CHAIN FROM FUKUOKA, JAPAN COMES TO MANILA WITH MORE THAN 60 YEARS OF HISTORY BEHIND THEM, UMA UMA RAMEN MAKES ITS ENTRY INTO MANILA AT SM CONRAD

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anila’s food scene is currently brimming with new flavors and quirky concepts. One crowd favorite is ramen and you’ve probably mapped out your go-to’s and favorites but don’t end it at that just yet.

There’s a new player in the ramen game and you’d better not miss out on it!

Uma Uma Ramen’s first foray out of Japan was in Singapore, where they established themselves as a cult favorite among ramen lovers and chalked up numerous mentions on various top ramen lists.

What was once known as “Wu Maru” in 1953 was renamed in 1994 to Uma Uma, a play on the original name of the shop and pun for the word “tasty.”

After being in the ramen industry for more than 60 years, Uma Uma opened its doors in Manila. Given that the city already has its known ramen shops, Uma Uma serves the Manila dining crowd with their own brand of flavor. “Our broth is made from a rich broth of pork bones, slow cooked over high heat to achieve the distinct and robust

Jimmy Wong

Ramenya concept in Singapore, and now in Manila.

An Izakaya is not complete without Yakitori (grilled skewers over charcoal) and Kushikatsu (deepfried breaded skewers). Uma Uma Manila features a special menu of over 11 types of Yakitori and Kushikatsu prepared a la minute and paired with homemade sauces lovingly created by Head Chef Shota Kaneko.

Extensive Selection of Unique Drinks

Uma Uma Ramen Philippines owners Junji Okabayashi, Iki Concepts chairman; Masahiko Teshima, Uma Uma Ramen Japan president; and Russell Yu, Iki Concepts director proudly open their first branch in the Philippines

flavour infused through hours of cooking. It’s 100 percent msg free,” says Russell Yu, director of Iki Concepts Ltd. Not only limited to ramen, Uma Uma brings with it a bar extension; introducing local

cocktail favorites spiced with Singaporean and Japanese flavors.

Affordable and Casual Japanese Dining

Though unconventional, the original Uma Uma in Japan

had the Izakaya-Ramenya concept, which was a hit with the salarymen and OLs (Office Ladies). Egged on by Masahiko Teshima, president of Uma Uma Ramen Japan, Iki Concepts started their first Izakaya-

MasterChef Australia judges Gary Mehigan, Matt Preston and George Calombaris with the show's 8th season contestants

What is an Izakaya without drinks? The good guys from Horse’s Mouth Bar have crafted a special drinks menu for Uma Uma, featuring a mixture of classic cocktails as well as specially created drinks to celebrate their first foray into the Phillipines. Sakes, whiskeys and beers are also available so there is something for everyone.

Originating from Fukuoka, Japan, Uma Uma Ramen has more than 60 years of ramenmaking experience.

Uma Uma is at Level 2, S Maison Marina Way at Mall of Asia.

Theresa Wong-Visintin

No Sibling Rivalry in MasterChef Australia

The world’s most famous cooking show franchise all began with MasterChef Australia’s ingenious take on UK’s original MasterChef series. The Australian version started the now popular format of hundreds of home cooks competing to be part of a small group of contestants, cooking from challenge to challenge to make their way to the title of MasterChef.

Now in its eighth season, MasterChef Australia, premiering tonight on Lifetime and airing 8 p.m. weekdays, has only gotten bigger and better.

Judges Gary Mehigan, Matt Preston and George Calombaris return to offer their guidance to the group of contestants.

Joining them are big international names such as the Queen of the Kitchen herself, Nigella Lawson, as well as

Heston Blumenthal and Marco Pierre White.

The most exciting part of the season is the new batch of bright, aspiring home cooks prepared to cook for their dreams. Siblings Jimmy Wong and Theresa Wong-Visintin are in the current crop of contestants.

The Singaporean-born brother and sister were exposed to the world of food as children, when their family operated various local grocery stores and restaurants. The creative siblings both pursued a career in design until realizing that their true calling lay in cooking.

MasterChef Australia gives them the perfect opportunity to hone their craft and show the world what they can do.

The duo brings an edge to the competition with their different styles and personalities. As well

as his upbringing in different countries, Jimmy has traveled to many parts of the world for his job. “My travels definitely have a big influence on my cooking. When you visit a place, you really get to learn about their culture and their food. Especially when you visit the local markets,” he explains. Having extensively explored Europe, Asia and some of the Americas, Jimmy has the knowledge of different cuisines. “Right now, I enjoy cooking Japanese food and using Japanese flavors in different ways. They don’t have to be authentic. I also really like mixing cuisines,” he shares.

And when Jimmy has cooked his food, he brings in his design skills to create the perfect plating.

“For me I like to really keep my cooking simple, but presented

in a way that people enjoy the aesthetics of it,” he explains.

Theresa, on the other hand, gets her inspiration from her mother and her Italian mother-in-law who has taught her a lot about Italian cooking. “I’m not usually a fancy cook,” she clarifies. But the mom of three is a force to be reckoned with when it comes to creating delicious flavors.

Going into MasterChef Australia means competing against each other, but the siblings have reacted positively to that idea. “It’ll be hard to be pitted against each other,” admits Jimmy, “but at least I have someone on the show that I am comfortable with and who I know and knows me very well.”

Theresa shares the sentiment. “I think being able to share this experience with Jimmy is really, really great,” she relates.

Jimmy and Theresa agree that no matter the results of the competition, it will be great to have shared the experience and they both will continue to pursue their passion of cooking. Jimmy plans to settle on the banks of Tasmania’s Huon River, on a property running food tours and cooking workshops for guests.

Theresa hopes to work on a television food project where she can share her insights on how to elevate the art of dining in.

But first, they have to battle it out in the MasterChef Australia kitchen to hone and prove their skills, and maybe win major prizes that could get them closer to their dreams.

Lifetime™ is available on SKYCable Ch 65 and Lifetime™ HD Ch 199; Cable Link Ch. 223; Dream Satellite Ch 28; Destiny Ch 44.

M ONDAY : J ULY 4, 2016

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Ube and Graham Crackers Parfait, made using the Tefal Comfort Max Stew Pot

Smoked Fish Salad in Garlic Lemon Dressing, made using the Tefal Comfort Max Fry Pan

Creamy Chicken Whole Wheat Pasta in Malunggay Pesto, cooked using the Tefal Comfort Max Wok

TASTE THE COMFORT

WITH TEFAL COMFORT MAX AND CHEF LIZA FIELDER

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he forerunner in non-stick cookware, Tefal has also been making waves in the stainless steel category by introducing a new cookware line, Comfort Max. This caters to those who prefer the stainless steel material, which Filipino households have grown accustomed to. This collection has thick high impact bonded bases to avoid any deformation over time and guarantee uniform heat diffusion, for delicious, evenly cooked meals every time.

The Comfort Max has the best design for maximum durability, comfort and cooking pleasure. Each item on this product line has ergonomic, soft-touch and stay-cool handles for a comfortable grip.

The Comfort Max collection pushes for #SmartCooking. The stainless steel is recommended for use when searing meat and achieving a nice golden color when frying. It’s also great in recipes involving the process of deglazing the pan.

Tefal will host a series of cooking demos and workshops featuring Comfort Max. The first is a cooking workshop in partnership with Chef Liza Fielder, more

The new Tefal Comfort Max cookware line features thick high impact bonded cases to avoid any deformation

Chef Liza Fielder, also known as Chef Fitness

popularly known as Chef Fitness.

Chef Fitness was recognized for her work in Tivoli, Mandarin Oriental Makati’s flagship restaurant then moved to Burj Al Arab Hotel in October 2010. Three years later, she returned to the Philippines and studied as a personal trainer under the American Council of Exercise at the FIT Manila. Her main goal is to maintain a healthy lifestyle by pursuing a personal coaching career to go with her culinary

skills. Her signature cuisines are a mixture of European, Asian and Arabic, while offering a Clean Eating Five Day Full Menus for those who want to lose weight.

She’s also a member of Philippine League of Bodybuilding and currently a Bikini Athlete Competitor.

Using Tefal’s Comfort Max, Chef Fitness will teach participants how to prepare comfort food favorites made healthy. Not only that, participants of this cooking workshop will

be able to cook with Chef Liza and eat their guilty pleasures without the guilt.

Following this cooking workshop are several Tefal Comfort Max cooking events, open to all, with Tefal Chef, Deejay Santos.

Catch them on the following dates for some fun and informative culinary activities: July 8 at Landmark Trinoma, July 15 at Robinson’s Ermita, July 22 at Metro Market Market and July 29 at Metro Alabang.

For more information on these events and for Tefal promotional updates, like www. facebook.com/tefalph and follow @ tefalph on Instagram.

Tefal Cookware is exclusively distributed

by Rustan Marketing Corporation here in the Philippines and available in leading department stores nationwide.

Food and ingredients trade fair connects SMEs to global buyers DTI-CITEM is now accepting space applications from local and foreign companies aiming to establish links with trade buyers from leading retail chains here and abroad.

The International Food Exhibition (IFEX) Philippines, the biggest and most respected sourcing platform for Asian heritage food and ingredients, offers numerous benefits to exhibitors from market visibility to brand credibility.

A dynamic platform to strengthen connections with top international buyers, importers and retailers, IFEX Philippines ensures exhibitors maximum exposure of their products and services as well as a valuable business matching and networking experience.

“With over 5,000 local and foreign trade buyers and visitors in the successful 2015 edition, IFEX Philippines is the prime stage for our local SMEs who wish to build their presence and expand their customer base; this is the ideal meeting place to create a lasting and profitable connection with the international market,” said CITEM Executive Director Rosvi C. Gaetos.

IFEX Philippines provides companies the chance to meet with a higher number of quality buyers in one or two days than one would typically be able to meet with through other forms of marketing

The International Food Exhibition Philippines provides exhibitors a dynamic platform to connect with top international buyers, importers and retailers

strategies in a similar time frame.

Local and foreign visitors of IFEX Philippines are composed of importers, retailers, wholesalers, distributors, consolidators, trading firms, retail chains, hoteliers and restaurateurs, airlines, ship chandlers, commissaries, caterers, service providers, and health and fitness specialists/consultants.

Major international brands sourcing at IFEX Philippines include among many others Americana Quality, Carrefour, Emke Group, E-Mart, Lulu, Met, Foodmarkets, Sysco, Takashimaya, and Woolworth, while Philippine brands are 7-Eleven, Duty Free

Philippines, Hyatt Hotel, Metro Gaisano, New City Commercial Corporation (NCCC) Supermarket, Philippine Airlines, Puregold, Robinsons Supermarket, Rustan’s, Shopwise, SM, and Walter Mart.

The 11th IFEX Philippines is slated on May 19-21, 2017 at the World Trade Center Metro Manila (WTCMM) and at the Philippine Trade Training Center (PTTC) in Pasay City. Interested Philippine and international exporters and manufacturers are encouraged to participate in another exciting edition of the biggest food, ingredients, and beverage trade fair in Asia-Pacific.

IFEX Philippines is organized by the

Center for International Trade Expositions and Missions (CITEM), the export promotion arm of the Department of Trade and Industry (DTI), with support from the Department of Agriculture.

CITEM is the owner and organizer of the trade exhibition Manila FAME: The Design and Lifestyle Event and venue brand HallONE: Design for Exports.

Interested parties may contact Rowena Mendoza at telephone numbers (02) 831-2336 or 831-2201 local 257 or e-mail Rmendoza@citem.com.ph or visit www.ifexphilippines.com.

M ONDAY : J ULY 4, 2016

SHOWBITZ isahred @ gmail.com

ISAH V. RED EDITOR NICKIE WANG WRITER

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Palpable chemistry. Richard Yap (left) and Jodi Sta. Maria (right) take their small screen romance to the big screen via the rom-com released by Star Cinema

THE ACHY BREAKY HEARTS

FLAWED YET ENTERTAINING

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his early, I would like to drive this point. Antoinette Jadaone’s latest big screen assignment is not an intelligent film. It’s a Bridget Jones Dairy rip-off (don’t tell us the fight scene interrupted by carolers is an original concept), it’s flawed, blatantly commercialized (with five product placements) and inconsistent.

How can someone not notice that she is being followed by another vehicle, a big pickup truck at that? And why would someone go back to a motel room, which is tidied up, made-up and vacuumed after every “use,” to look for a missing engagement ring? Isn’t he supposed to be asking the front desk officer?

Jadaone overlooked minute yet logical details in the story because she was too excited to finish off her new rom-com to see if it would elicit the same kind of feedback from people who enjoyed watching This Thing Called Tadhana.

The story unfolds with an illustrated montage of Chinggay (Jodi Sta. Maria) confronted by the dreaded question most women in their 30s often encounter: When are you getting married?

The film’s premise lies on the central character torn between the romantic attention of two men – Frank and Ryan (played by Richard Yap and Ian Veneracion, respectively). Frank is a former flame whom she chanced upon after attending an investment seminar. Meanwhile, Ryan is a client who bought an engagement ring at the jewelry shop she’s working in only to be dumped by his girlfriend as soon as he proposed.

Loveless for almost seven years, Chinggay is determined to give love another shot.

But destiny seems to be playing a practical joke on her.

After opening her doors to Ryan, she is quick to realize that she is just a rebound girl. With Frank waiting in the wings, she turns to her ex-lover and gives the man another chance to prove that he’s already a changed man. They both try to work things out but when Chinggay finally confesses her true feelings for Frank, the latter decides to leave believing that Chinggay’s heart belongs to Ryan now.

BY NICKIE WANG

Ryan (Ian Veneracion) and Chinngay (Jodi Sta. Maria) in a scene from the Antoinette Jadaone-helmed film

This uncomplicated narrative gives the audience a glimpse of Chinggay’s vulnerability. She is hungry for love and she has so much to give. But her episodes with Frank and Ryan make her realize that she doesn’t need a man to be happy, to be complete and appreciate her singlehood and independence. And that makes Chinggay a very relatable character, which Sta. Maria essays with ease.

Sta. Maria is the evident jewel, the saving grace of The Achy Breaky Hearts. Though her character does not require special acting skills, she made the rom-com an interesting genre. She brands Chinggay as a person who is vulnerable but not dumb and hilarious yet classy. One particular scene

that endears Sta. Maria to the audience is when Chinggay tries to convince herself that she’s perfectly fine after realizing she’s got herself into a rebound relationship.

Picture this: She enters her room, closes the door and tells herself she’s not going to cry…cue K & the Boxers’ novelty song “Sasakyan Kita.” She dances sassily while she sings along. She’s all smiles yet is very close to tears.

While Sta. Maria delivers, Veneracion just gives a decent performance. He is worth every airtime though. His face flashed on the screen is enough to draw shrieks from the crowd. But the same thing cannot be said of Yap. He’s stiff and looks uncomfortable. His facial expression and the way he

delivers his lines lack sincerity. Yet, when together with Sta. Maria, he appears as if he’s the only actor suited for the role.

In general, The Achy Breaky Hearts highlights plausible rulings about love and relationship. The chemistry between the main characters is palpable though the love triangle of Jodi Sta. Maria, Richard Yap and Ian Veneracion is manufactured for the audience to get a slice of a romantic tale aimed at delivering what a rom-com should be doing to begin with. If only we didn’t see Bridget Jones Diary then we could have forgiven the film for its lousiness. In essence, the film is like a comfort food, which is not necessarily rich in nutrients, but it’s delicious enough to make someone feel better.

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M ONDAY : J ULY 4, 2016

SHOWBITZ

ISAH V. RED EDITOR

isahred @ gmail.com

JADINE’S RELATIONSHIP STRONGER THAN EVER Team Real. James Reid and Nadine Lustre gush over their relationship which everybody seems to care about

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bviously, James Reid and Nadine Lustre’s relationship is getting stronger in each passing day.

“In a scale of 1-10, it’s always a 10!” avers James.

Interestingly, Nadine loves the new traits she continuously discovers about her boyfriend.

“Yes, like his being strict when it comes to food, for example.

When we were in America for our series of shows, it was expected that we were served sumptuous menus and I kind of over ate. All, including the not so healthy ones, you’ll be tempted to take.

“It’s good that his sister Lorenz was with us during that trip. She made sure that we’d eat healthy food. Salad was always available. Yes, we also had steak but in moderation. Generally, no oily and unhealthy food.

“James would also remind me every time to drink more water.

That I should in fact increase my water intake since I have the tendency to eat a lot. It’s nice because he monitors and encourages me to drink water all the time. It simply helps that James is a health buff,” she reveals.

As for their next soap opera, the dusky young actress expresses her excitement since it’s a step higher than their previous offering, On the Wings of Love.

“That’s right! It’s a different material, more mature. We’ll also travel to other places to shoot scenes. The story will revolve on family and friendship. This early, I’m pitching it in to our fans. They will surely love it.”

Speaking of the fans, many are toying with the idea of a project, which she and Sarah Geronimo would top-bill.

“Yes, sure! Why not? For sure, it will be a great offering. I have high regards for Ate Sarah. I hope it materializes,” Nadine ends.

Bea Alonzo will star in a new soap, which she calls “heart-tugging to watch”

CROSSWORD PUZZLE

ANSWER PREVIOUS PUZZLE

ACROSS 1 Boudicca’s subjects 6 Vein contents 10 Engrossed 14 Rodeo venue 15 Prayer-wheel turner 16 Sultan’s cousin 17 Snowed (hyph.)

19 “Instead of” word 20 Language suffix

21 Slicker 22 Turntable spinners 23 Ontario neighbor 24 Reeds 26 Bumped against 29 Bandmate of Mick 30 Soldering tools 31 Bamboo eater 32 Opal mo.

35 Do dock work 36 Silly comedy 37 Drive up the wall

38 FedEx units 39 Diver’s hazard 40 Plains roamers 41 Company 42 Hunks flex them 43 Board game 46 Jason’s vessel 47 More than dislike 48 Rain forest parrot 50 Captain’s milieu 53 Before Wed. 54 Moonlight at the outpost?

56 Coup d’— 57 Bancroft of “The Graduate” 58 Scrawny 59 Mach 1 breakers 60 Did batik 61 Red Sea peninsula DOWN 1 — au lait 2 Bullpen stats 3 — -majeste 4 Big-bang ltrs.

5 Lampoons 6 Stan’s partner 7 Do a fall chore 8 Type of exit 9 Bummed out 10 Hot-dog topper 11 Faulty 12 Gun, slangily 13 Roof beam

MONDAY, JULY 4, 2016

18 22 23 25 26 27 28 29 31 32 33 34 36 37 39 40 41 42 43 44 45 46 49 50 51 52 54 55

Battery fluid Picard’s android Fish-eating flier Take the bus Nursery rhyme girl Fast steed Fishing poles The “k” in 24-k Scrooge’s trait, once Belgian river Hoof-on-pavement sound Gymnasts’ goals Persians, to Greeks “Miami Vice” cop California’s — Woods VIPs Phantoms Kind of muffin Appetizers Touches Deal from the bottom Took steps Handel contemporary Rebuff Active volcano — spumante Latest thing Moo goo — pan

******** It’s been two years since Bea Alonzo starred in a soap opera via Sana Bukas Pa ang Kahapon.

Now, she is busy preparing for her next grand offering called The Second Wife.

“Undoubtedly, I missed doing a soap. It’s still different when you are seen on prime time on a daily basis. It feels as if you’re part of their everyday lives. Especially those families who are living abroad and miss local TV programs,” says Bea. Her new soap offers a new screen combination.

“I’ll be with Iza Calzado and Ian Veneracion here. It’s exciting because the public hasn’t seen us yet in a soap. First time. I’m really looking forward to the start of the

taping. I’m certain it will be both fun and challenging knowing my two co-stars’ acting calibre.”

What’s the story about?

“Oh, it’s something close to us Filipinos---blended families in contemporary setting. It’s actually about the plight of the modernday stepmother, how she deals with the complexities of her role.

The soap will also present children of second families.

“Surely, this will be something heart-tugging to watch. This would appeal to the local audience. All of us in the cast which also includes Enchong Dee, Vin Abrenica and Julia Barretto are excited how Direk Jerry Lopez Sineneng would execute it. I know the characters are real and every Filipino family can relate to them,” avers Bea.

M ONDAY : J ULY 4, 2016

SHOWBITZ isahred @ gmail.com

ISAH V. RED EDITOR

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GMA’S ‘PANATA SA PAGBABAGO’ MOST WATCHED INAUGURATION COVERAGE

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anata Sa Pagbabago, GMA News and Public Affairs’ special coverage of the inauguration of President Rodrigo Duterte and Vice President Leni Robredo, proved the Kapuso Network is the country’s most trusted news source on-air and online during events of national significance.

The most watched inauguration coverage nationwide, Panata sa Pagbabago got a commanding overnight audience share of 39 percent as against the 33.6 percent of ABS-CBN’s Ang Panunumpa: Pangako ng Pagbabago, based on Nielsen Philippines TAM’s National Urban Television Audience Measurement (NUTAM) TV Households data for June 30.

Online coverage of GMA’s Panata Sa Pagbabago was also a big success.

According to Google Analytics data, GMA News Online received more than six million page views on that day alone, with users taking par-

GMA News and Public Affairs’ special inauguration coverage posts a commanding 39 percent audience share compared to 33.6 percent ratings received by the rival network

ticular interest in behind the scenes photos, videos, and stories from the

Duterte inauguration, as well as the text transcript of the new president’s

inaugural address to the country.

The Panata Sa Pagbabago Face-

book livestream and archived videos (facebook.com/gmanews/videos), meanwhile, reached a total video views of 1.15 million as of 12 noon of July 1.

GMA’s coverage hashtag #Du30saJune30 was also the most talked about topic on Twitter here in the Philippines and one of the top trending topics worldwide during inauguration day.

Mel Tiangco, Mike Enriquez, Vicky Morales, Arnold Clavio, and Jessica Soho anchored the Kapuso special coverage that also featured historical and context packages as well as in-depth analyses of outgoing Undersecretary and Officer-in-Charge for the Presidential Communications Development and Strategic Planning Office Manuel Quezon III, former DEPED Asst. Secretary and co-author of So Help Us God: The Presidents of the Philippines and Their Inaugural Addresses Jonathan Malaya, and De La Salle University Political Science Professor Richard Heydarian.

The ‘Greenwich #UltimateBandkada’ Season 2 Top 8 Finalists Two months and about 150 live and online auditions from all over the Philippines later, the eight best bands have been selected to compete for the championship title of the Greenwich #UltimateBandkada Search Season Two. ABCG, Alab, Musico, Shalom, Relentless, Plethora, Ace Form, and Happy Ending emerged as the eight best Bandkada hopefuls for the year. Each band successfully impressed the judges with their creative genre mash ups for

both popular and original songs.

The bands are now set to go through a series of training sessions with different mentors from the music industry like awardwinning singer, songwriter, producer Thyro Alfaro, young and well-followed band The Juans, digital media sweetheart Donnalyn Bartolome and Music Executives from Viva Records, MG Mozo, Civ Fontanilla, and Punch Liwanag.

On Sept. 10, the top eight bands

will be presented to the public at the culminating event that will be held at the Valkyrie Nightclub at the Palace Manila in Bonifacio Global City. All the finalists will perform their spins on this year’s Greenwich song that has to be a mash-up of at least two different music genres: rock, pop, hiphop , edm, or regae.

In the end, only three bands will be named as victors of the competition. The criteria for selecting the top three are originality, mashup clarity, audience impact, band

chemistry, and stage presence. Another award to look forward to is the “Favorite ng Barkada Award”, which will recognize the band that garnered the highest number of online votes.

Fans of each #UltimateBandkada hopeful can show their support by voting for their bets on the contest’s official website.

Starting at 10 a.m. of July 18 until 11:59 p.m. of Sept. 5, fans can vote for their favorite Bandkada for the selected Top 8 through the #Ulti-

mateBandkada Search website (www.ultimatebandkada.com).

Fans get one free daily vote and additional three votes per coupon code availed when purchasing any of Greenwich #UltimateBandkada Bundle (Mash Up Edition) available during the voting period.

For more news and updates on the Greenwich #UltimateBandkada Search Season 2, visit the official website at www.ultimatebandkada.com.

Ultimate anime storm on Hero

Greenwich #UltimateBandkada Search Season Two finalists ABCG (left) and Ace (right)

Happy Ending and (left) Shalom (right

Plethora (left) and Musico (right)

Put your rain gear on as Hero TV brings you the ultimate anime storm this month with two power-packed anime series Fantasista Dolls. The director of Code Geass, Gorô Taniguchi and 2013 Tokyo International Film Festival nominee Hisashi Saitô give us a new anime masterpiece about five extraordinary dolls.

Uzume Uno, who used to be an elite card player and champion, is given a special device with five powerful cards which she can use to summon artificially intelligent female warriors known as “Fantasista Dolls.”

They follow every command given by Uzume, and in return, she fearlessly fights alongside her dolls in various battles.

Never miss a quest and be sure to catch them beginning at 6:30 p.m. on July 8.

Buddy Complex. From the creator of Gundam, Code Geass: Lelouch of the Rebellion, Tiger & Bunny, and Yakitate!!! Japan comes a new exhilarating story about an ordinary high school boy named Aoba Watase.

One day, he was attacked by a giant robot and rescued by his classmate, Hina Yumihara, who emerges from a giant robot of

her own. She tells him cryptically that “Dio is waiting,” and sends him seventy years into the future where he begins a new life as a pilot of the Free Pact Alliance.

Come and join in the fun and adventure as Buddy Complex premieres at 8 p.m. on July 11.

Hero TV is available on SKYcable Channel 44. For updates, visit and like Hero TV on Facebook facebook.com/myheronation and follow us on Instagram @herotvofficial and Twitter @ myHEROnation.`

M ONDAY : J ULY 4, 2016

C8

ISAH V. RED EDITOR NICKIE WANG WRITER

isahred @ gmail.com

SHOWBITZ

‘ASAP” power vocals. (From left) Jason Dy, Jed Madela, Juris, Erik Santos, Yeng Constantino and Kyla

‘ASAP’ PAYS TRIBUTE

TO ORIGINAL PINOY MUSIC ISAH V. RED

T

he longest-running weekend variety show ASAP pays tribute to Original Pinoy Music (OPM) in its newest segment “ASAPinoy” that premiered yesterday in a live telecast from Resorts World Manila.

“ASAPinoy” highlights the unforgettable work of the most iconic singers, writers, and composers that contributed their life’s work to OPM. Leading the ceremonies were two “Tribute Masters” who have also greatly impacted the Filipino music industry--- Gary Valenciano and Martin Nievera.

OPM is surely alive as “ASAPinoy” celebrates specific themes about the Filipino music industry every month.

For July, “ASAPinoy” starts with a bang and begins with the “Maestro Series,” which features OPM greats Ryan Cayabyab, Louie Ocampo, Willy Cruz, and George Canseco. Gary V kicked it off yesterday as he led the tribute for Cayabyab.

“ASAPinoy” now joins the ranks of other hit ASAP segments namely the “ASAP Birit Queens” featuring Morissette Amon, Klarisse de Guzman, Jona Viray, and Angeline Quinto and the “ASAP Soul Sessions” featuring Kyla, KZ Tandingan, Jay R, Jason Dy, and Daryl Ong and “ASAP LSS (Love Songs and Stories )” with Jolina Magdangal.

Also joining the fun for a Kapamilya pasasalamat yesterday were Melai Cantiveros and Pokwang of We Will Sur-

Mr. Pure Energy Gary V

vive, Dominic Ochoa and Marco Masa of My Super D, and Maja Salvador of FPJ’s Ang Probinsyano.

The surprise didn’t end there because the hottest Kapamilya love teams also set foot on the ASAP stage –Elmo Magalona and Janella Salvador, Enrique Gil and Liza Soberano, and Daniel Padilla and Kathryn Bernardo for an afternoon kilig overload

“ASAP Birit Queens” (from left) Jona Viray, Angeline Quinto, Klarisse de Guzman and Morissette Amon

New Ben 10 makes global debut on Cartoon Network Cartoon Network’s newest take on Ben 10, the animated phenomenon that had kids all over the world wanting to transform into their favorite alien, begins its global premiere in the AsiaPacific region in November. A new generation of fans can expect all the high-energy action and fantasy, along with the heart and humor that made it an international sensation when it originally premiered in 2006.

Building on the highly successful franchise about kid hero Ben Tennyson, Ben 10 will introduce a re-imagined Ben, his

cousin Gwen, and Grandpa Max, as they travel the country during summer vacation. When Ben finds the Omnitrix, a mysterious watch that transforms him into 10 different friendly aliens, a world of extraterrestrial superpowers opens up to him.

The popularity of the show launched three additional animated series (Ben 10 Alien Force, Ben 10: Ultimate Alien, Ben 10: Omniverse); two animated movies (Ben 10: Secret of the Omnitrix, Ben 10: Destroy All Aliens); and two live-action movies (Ben 10: Race Against Time, Ben 10: Alien Swarm).

The series is produced by Cartoon Net-

work Studios and created and executive produced by Man of Action Entertainment (Big Hero 6, Generator Rex), with John Fang (Mixels, Generator Rex) on board as supervising producer.

A proven success for Cartoon Network, Ben 10 is an established sales sensation led by top-selling toys, interactive and home entertainment franchises generating more than $4.5 billion in global retail sales to date. Playmates Toys serves as the worldwide master toy partner for the new Ben 10 with a full line of toys based on the series and will include a range of figures, playsets, and role-play items set to launch at retail globally next fall.