BusinessMirror August 27, 2015

Liberal Party Rep. Romero S. Quimbo of Marikina City, the panel chairman and one of the authors of the bill at the lower chamber, asked Senate President Franklin M. Drilon and House Speaker Feliciano Belmonte Jr. to initiate discourse with President Aquino, with the end view of compar-ing data and reaching a consensus on the proposal for income-tax reforms. 

“It is clear that the Senate, the House and the President all aim for the lowering of income taxes. But for a substantial headway to materialize, we need to sit down, agree on the prin-ciples, and come up with a measure amenable to all parties,” Quimbo said.   While Quimbo made this state-ment, however, another legislator revealed that President Aquino has already thumbed down the proposal

of the Department of Finance (DOF) to lower income-tax rates, then recover revenue losses by increasing the value-added tax (VAT) to 14 percent.

RejectedTHE lawmaker, who is a House leader, said Mr. Aquino turned down the pro-posal of the DOF during a recent meet-ing attended by Finance Secretary Cesar V. Purisima, Budget Secretary Florencio B. Abad, National Economic and Development Authority Director General Arsenio M. Balisacan and In-ternal Revenue Commissioner Kim Jacinto-Henares.

“President Aquino opposed the DOF proposal to reduce individual in-come and corporate taxes, but recover the same through VAT increases. The President said we cannot reduce taxes

if there’s no [counter-revenue law]. He also doesn’t like VAT increases and ad-ditional taxes,” the lawmaker said.   He added that Mr. Aquino junked the proposal because it will only burden the ordinary Filipinos.

“The President [told the Cabi-net officials] that you’ll unburden the burdened—the middle class—but the ordinary people will suf-fer [when we increase the VAT],” he said. Instead, the legislator said that President Aquino told his Cabinet officials to find other ways to re-cover the revenue losses if they want to reduce individual income- and corporate-tax rates. Consensus neededQUIMBO added that any initiative to

www.businessmirror.com.ph ■�Thursday 18, 2014 Vol. 10 No. 40 P. | | 6 DAYS A WEEK■�Thursday, August 27, 2015 Vol. 10 No. 322

A broader look at today’s businessBusinessMirrorBusinessMirrorTHREETIME

ROTARY CLUB OF MANILA JOURNALISM AWARDEE2006, 2010, 2012U.N. MEDIA AWARD 2008

LUB

NALISM

PESO EXCHANGE RATES ■ US 46.7110 ■ JAPAN 0.3935 ■ UK 73.3503 ■ HK 6.0258 ■ CHINA 7.2845 ■ SINGAPORE 33.2629 ■ AUSTRALIA 33.5568 ■ EU 53.8298 ■ SAUDI ARABIA 12.4539 Source: BSP (26 August 2015)

S “L,” A

40STORY JOLLIBEETOWER RISING SOONIN ORTIGAS CENTER

INSIDE

HE calls himself an assassin. He is straight out of GQ, with a gait that is worth a fashion runway. He is menacing but you stop dead in your tracks because you just cannot get

yourself to look away from that face: chiseled to kill and seduce. And then there is this woman dangerously silent and lovely in a model’s way. She barely has makeup on her face. Or, she is one of those who have developed the skill to paint her face without those gazing at her noticing the palette that lights up her person. The woman is mysterious, not in the dark deep way but in the sophisticated way. She goes to the library not to stock up on her op. cit and loc. cit, but look for a man she doesn’t even know. The librarian stares at her intently and gives her a sample population of millions. Looking for a needle in a haystack is not a proverb for this leading lady of ours, but a practical problem.

All these persona, events and processes are happening in Hitman: Agent 47. It’s a film where many Hitman: Agent 47. It’s a film where many Hitman: Agent 47are killed but the killing is done with quick precision, without so much as a grimace on the faces of those who kill and are killed.

There are many things goings for this film, which is now in theaters in the Philippines, aside from the two lead characters and the actors who play them. As I have stated already, the assassin is strikingly handsome and the object of the first chase, infinitely lovely. I call her that—“the object of the first chase”—because midway into the film, the woman is revealed to be the daughter of a man who is the object of a crazy search. The woman is looking for that important man who happens to be her father. That man is the brain behind the creation of men who are fitted both with genes and gadgets to kill. The men do not have fears and insecurities. They do not have emotions. They are not even capable of love.

Or so it seems. When the film ends, and the woman finds her father, love and rage and all the emotions in between wreak havoc on what could have been just a clean killing. See, emotions are not really gatekeepers but tension necessary to a plot.

I cannot really divulge the plot of the film without spoiling everyone’s appetite for it. Let it just be said that, once more, speed becomes the catalyst to drive home the lessons in this caper. There are no essential villains in this film, which is good. The existentialism of the plot works: the villains are in us. The good and the bad are in us. Still, the main seducers of Hitman: Agent 47are in the characters. In its first cinematic incarnation, Timothy Olyphant, shaved head and all, was this agent. In the present reincarnation, the menace is upped by the English actor, Rupert Friend. He’s so smart that even a red tie looks rare on him. His eyes are intense; the stunts are good.

Hannah Ware plays Katia, the mysterious woman whose search for a missing person, fuels the heat of the narrative about science and technology of producing men and women of substantial violence. Zachary Quinto as John Smith provides a foil to Agent 47 and Katia, and helps prove how duplicitous life can be.

Aleksander Back directs Hitman: Agent 47. Singapore Hitman: Agent 47. Singapore Hitman: Agent 47as a location plays a bit role in the film.

In a news release from 20th Century Fox and Warner Bros., there is this information that Filipino Kali martial

arts was used in the training of Rupert Friend as Agent 47. The action scenes in Hitman are described as “hyperreal.” The filmmakers also describe what they call “Gun Fu,” which is kung fu but with guns

As I write this, there is another “hitman” killing fans everywhere in this country in sheer delight, and that is Alden Richards. As played out on GMA’s long-running noontime show Eat Bulaga, the kalye-serye featuring kalye-serye featuring kalye-seryeAlden Richards—an odd cross between telenovela, reality show and improvisation—is taking the country by storm. If Alden Richards provides the charm and murderous cuteness in this story that keeps unravelling, Wally Bayola provides the gravitas. Bayola’s depiction of women is nonpareil.

The gag writers must be finding it hard to insert any other character there, even if that persona is played by the veteran Jose Manalo. The latter has donned a blond wig and put on back his lolo costume but to no avail. People—and diehard fans—are rooting for the pure love of Alden Richards to this strange being called Yaya Dub, and are loathing and becoming profoundly affected by the ancient rage of the old wealthy grandmother played by Wally Bayola.

Who would ever thought that Wally Bayola would be this big? Who would have predicted that he would rise from the morass of that sex-video scandal and be the main comedian in a show ran and occupied by stellar clowns? Life can be unpredictable and fun. ■

aARIES (March 21-April 19): Initiate changes that will help you feel healthier. Love is encouraged, and

socializing and sharing your plans will bring you closer to the type of life you want to live. It’s up to you to make things happen.

b TAURUS (April 20-May 20): Get involved, make plans, network or do something special for someone

you want to get to know better. Speak from the heart and express an interest in whatever you are dealing with, and you will find out valuable information.

c GEMINI (May 21-June 20): A practical approach to whatever you do is a much better approach than casting

your fate to the wind and seeing what unfolds. Take control of the situations you face and harness what you want by using your skills strategically.

d CANCER (June 21-July 22): Focus on partnerships. Discuss your plans with others and explore your options.

Someone you meet through a friend or while traveling will spark your interest in something you might not have previously considered.

e LEO (July 23-Aug. 22): You can make professional changes, but don’t leave one job until you have

found another. It’s important to be responsible and not act impulsively. Collect information and update your skills before you decide to make a move.

f VIRGO (Aug. 23-Sept. 22): Speak up and those around you will listen and take note of what you are

proposing. Your intelligence and dedication will be recognized and help you gain respect, as well as an interesting position. Think big, but don’t lose sight of reality.

g LIBRA (Sept. 23-Oct. 22): A transformation is taking place. Facing difficulties will open your eyes and

your mind to new opportunities. Don’t allow anyone to steer you away from a course that can bring you happiness. Believe in yourself and do as you please.

hSCORPIO (Oct. 23-Nov. 21): Stop and take note of what is going on around you. Look for unusual

opportunities and search for answers to the unknown. Your curiosity will lead you to more fortunate circumstances. Don’t let the choices others make lead you astray.

i SAGITTARIUS (Nov. 22-Dec. 21):Expect to face difficulties if you try to push your ideas on others. If you

want to make changes, focus inward and do whatever it takes to improve mentally, physically and emotionally. Do your homework and you’ll get results.

j CAPRICORN (Dec. 22-Jan. 19): Emotions will be difficult to contain. Don’t hide the way you feel when

expressing your opinions. Make a plan to do jexpressing your opinions. Make a plan to do jthe things that will help you achieve greater happiness.

kAQUARIUS (Jan. 20-Feb. 18): Abide by the rules and you’ll avoid unexpected headaches.

It’s important to put greater effort into the relationships you have with others. A change of attitude will encourage others to strive to improve as well. Love is highlighted.

lPISCES (Feb. 19-March 20):Take a trip that will offer you a chance to learn something new or discover

what you want to do next. Greater involvement in an effort to bring about positive reforms or improvements to your community should be on your agenda.

Today’sHoroscopeBy Eugenia LastzHoroscopezHoroscope

By Eugenia Lastz

By Eugenia Last

BIRTHDAY BDAY BDA ABY: You are adaptable, creative and precise. You are willful and organized.

ACROSS 1 Ungentlemanly chaps 5 Report-card mark10 Draw blood14 How rioters run15 In tune16 Part of the “Elba” palindrome17 Apple pie topper, sometimes20 Funny Girl actor OmarFunny Girl actor OmarFunny Girl21 “Impossible!”22 Type of support24 Feel remorse about25 However briefly?26 Friend29 Chunk or hunk31 Amateur’s opposite33 Use scissors35 Eye feature37 Loosen, as shoes41 Reddish hair color44 Elegant headdress45 Infamous Roman emperor46 Classic song spelled with arm

motions

47 Basketball’s trajectory49 Common list heading51 “Kapow!”52 Letters that blast55 Bon ___ (witty remark)57 Moistens59 Soda fountain parts62 Legally accountable66 Sweet bakery offering68 Move briskly, as a horse69 Not so cordial70 “___ for the poor!”71 Eats in the evening72 Beach flock73 Chapter 11 issueDOWN 1 Cleveland cagers, briefly 2 Indian wet nurse 3 Spanish lady’s title 4 Maxi or mini 5 Driver, e.g. 6 Genetically coded stuff, for short 7 All in the family 8 Interior design

9 Washing aid for pupils10 First lady of Olympus11 “___ you the clever one!”12 It may exceed one’s grasp13 Xerox precursor18 Isn’t truthful19 Angelic young’un23 Place of safety26 “Do you want to hear a secret?”27 “Freeze” starter28 Money in Milan, once30 Artist’s hat32 Child with no siblings34 Prefix for “legal”36 One-way street symbol38 Mummy’s home39 Andean civilization40 Dutch cheese42 Become enthusiastic about43 High-range singers?48 “Calm down!”50 Suffix with “psych”52 Diplomatic qualities53 1960s jacket style

54 Base unit56 Tiny amount58 Caesar or Waldorf, e.g.60 Does a thespian’s job61 Cookery direction63 Amount of cotton64 Arm or leg, e.g.65 Old attachment to “while”67 Hallow ending?

‘flavor enhanced’ BY ALICE GAVALSTONEThe Universal Crossword/Edited by Timothy E. Parker

Solution to yesterday’s puzzle:

CELEBRITIES BORN ON THIS DAYIS DAYIS DA : Keke Palmer, 22; Macaulay Culkin, 35; Chris Pine, 35; Melissa McCarthy, 45.

HAPPY BIRTHDAY:DAY:DA Keeping a steady, surefooted pace will be your saving grace. Opportunities are plentiful, so choose what you are able to handle and make steady gains as you go. A sudden, unexpected change in your financial situation could come from an unusual source. Keeping a clear head will help you avoid being used. Your numbers are 2, 16, 23, 28, 30, 33, 46.

REELINGTITO GENOVA VALIENTE

[email protected]

D2

ShowBusinessMirror www.businessmirror.com.ph�ursday, August 27, 2015

AFTER 39 years of staging exceptional plays spanning from the classics to the contemporary, and producing renowned directors, actors, designers, production and stage managers and technical directors, Dulaang UP celebrates its 40th theater season with the theme “20/20 Vision: Clarity. Originality. Perspective.”

For its premiere offering, DUP presents #R</3J, a #R</3J, a #R</3Jmultimedial hallucination on William Shakespeare’s Romeo and Juliet.

The production retells the star-crossed lovers’ narrative, transforming Verona into a concrete jungle at the heart of Metro Manila—teeming with corruption, revolt, advertisements, sex, social media and condominium units. In this story, the classic tragedy resonates within the present society’s many forms of commodified love. Can genuine love exist in a world of alterations and tomfoolery? Exploiting our age of virtual reality—globalization, ultra-violence, Internet novelties, generation gap—this theatrical project seeks to dramatize, through a pastiche of movement, music, intertext, video and design, the postmodern tragedy of our generation. Destroy the city, the family, the government—even Shakespeare—but never destroy the will to love.

The production is a collaboration of seasoned and up-and-coming artists. Dexter M. Santos (direction) heads the artistic team composed of Guelan Varela-Luarca (adaptation), Krina Cayabyab (music design), John Batalla (lighting design), Ohm David (set design), Winter David (video design) and Darwin Desoacido (costume design). It features the Dulaang UP Ensemble with Ricky Ibe, Mitoy Sta. Ana, Leo Rialp and the works of young choreographers, video designers, artists and dramaturgs.

#R</3J runs from August 26 to September 13 at #R</3J runs from August 26 to September 13 at #R</3Jthe Wilfrido Ma. Guerrero Theater in University of the Philippines Diliman.

For tickets, reservation, sponsorships, and show-buying inquiries, contact 926-1349, 433-7840, 981-8500, local 2449, or e-mail [email protected].

Fashion and danger: ‘Hitman: Agent 47’

BRITISH actor Rupert Friend as the über-stylish title character in the film Hitman: Agent 47.

Dulaang UP celebrates 40th theater season

PagesBusinessMirror www.businessmirror.com.phD4 � ursday, August 27, 2015

THE covert art of Eileen and author Eileen and author EileenOttessa Moshfegh.

B P K Los Angeles Times

ONE of my favorite lines in poetry is the opener to Anne Sexton’s 1962 For Eleanor Boylan Talking with God, Eleanor Boylan Talking with God, Eleanor Boylan Talking with Godwhich begins, “God has a brown voice,/as soft and full as beer.” These

lines swill around in my head whenever I enter one of the strange universes of Ottessa Moshfegh. Moshfegh has a brown voice, soft and full as beer, sure—but other brown things too: earthy, mundane, unassuming, fertile, even fecal.

But compared with her debut, last year’s celebrated novella, McGlue, and many of her stories (published in places like the Paris Review), the novel Paris Review), the novel Paris Review Eileen is Moshfegh’s most conventional work, almost classical by her canon and yet, my guess is many will join me in finding it her best work, yet.

Eileen adopts convention and dips it into murky Moshfeghian brown, which is more staunch bleakness and delightful filth than any antique sepia. The most experimental element is the point of view: The story is being told by Eileen Dunlop in her 70s, looking back on the week around Christmas 1964. And there is also the voice, fashioned like the disconcerting conscience of a David Lynch heroine: “Having to breathe was an embarrassment in itself. This was the kind of girl I was.” This is a portrait of the most miserable, most bored, most “nothing special” (Moshfegh’s often-repeated words) protagonist you might meet, from looks to spirit.

The novel fixates on solitude and isolation, alcoholism and child abuse, the icy gray New England suburbia of her town, “X-Ville”, and the even grayer ambience of Moorehead, the boys’ juvenile detention center, where Eileen works. She lives alone with her retired-cop alcoholic father since the death of her mother, and her relationship with him seems limited to buying him bottles of alcohol and avoiding him altogether. Her work life seems also unbearable, other than brief minutes when her fantasy life takes her to her crush, a security guard named Randy, who most likely doesn’t know she exists.

All this changes when a new hire arrives: Rebecca Saint John, a social worker whose unattainable, effortless glamour and even more unattainable casual iconoclasm instantly appeal to Eileen. She falls in love with her—though Eileen is careful to emphasize she is not a lesbian. The two become unlikely friends and then the story, three-fourths of the way in, takes its sharp, unforgettable turn. All one can say is, Rebecca is not what she seems, but she might be Eileen’s one hope in her one goal: to get out of her current life, whether that means getting to her dream city of New York, or simply exiting X-Ville forever.

Moshfegh might bear the markings of a quirky unknown on the fringes (in an interview with writer Sarah Gerard for Hazlitt last month, her Hazlitt last month, her Hazlittmanicpixiedream element came on strong with quotes

like, “Well, I’m not from this dimension. I’m like an alien in a human body. I come from a different place, a different plane of existence”), but in reality, she is anything, but an outsider. Moshfegh received the 2013 Plimpton Prize for Fiction from the Paris Review, she Paris Review, she Paris Reviewwas a recipient of a 2014 National Endowment for the Arts Fellowship and just completed Stanford’s prestigious Stegner Fellowship. And McGlue—a 19th century tale of an alcoholic sailor struggling to come to grips with allegations he’s killed a man—was selected by Rivka Galchen as the winner of the first Fence Modern Prize in Prose.

What makes Moshfegh an important writer—and I’d even say crucial—is that she is unlike any other author (male, female, Iranian, American, etc.). And this sui generis quality is cemented by the singular savage suburban noir of Eileen. She tries relentlessly to pull you away and out, not unlike her own self-destructive characters, who seem a bit addicted to their own repulsiveness. Moshfegh’s palettes are big and small, fictional realms that are often vague in a way that makes them allegorical almost, universal in their blurriness and yet, at the same time, meticulously rendered with specific details. And she often does this with little attention to theme. Her fiction offers a sense that is of our world but also altogether hostile to clear distillation of it. Here is art that manages to reject artifice and yet, be something wholly new and itself in sheer artistry.

You read Moshfegh to hear Moshfegh through

her characters, as you might Donald Barthelme—the author’s sensibility is almost a character in itself. Of course, to be a writer of any import, that self has to be interesting in some way or another. Whether she’s writing about a lonely Chinese man with a prostitute habit who finds love text messaging a computer arcade manager in her story Disgust, or chronicling her late-Disgust, or chronicling her late-Disgustin-life appreciation of mayonnaise because of a phobic mother (Anything to Make You Happymother (Anything to Make You Happymother ( ), Moshfegh Anything to Make You Happy), Moshfegh Anything to Make You Happymanages to be consistently interesting. And maybe that is truly the most important task of art, to make something that catches our eye and captures our imaginations among all that is desolate, drab and indeed terrestrial-brown around us. ■

HERE are the bestsellers for the week that ended August 16, compiled from data from independent and chain bookstores, book wholesalers and independent distributors nationwide, powered by Nielsen BookScan and reprinted from Publishers Weekly.

HARDCOVER FICTION

1. Go Set a Watchman, Harper Lee, Harper 2. The Girl on the Train, Paula Hawkins, Riverhead 3. Alert, Patterson/Ledwidge, Little, Brown 4. Silver Linings, Debbie Macomber, Ballantine 5. Who Do You Love, Jennifer Weiner, Atria 6. Circling the Sun, Paula McLain, Ballantine 7. The Nightingale, Kristin Hannah, St. Martin’s 8. The English Spy, Daniel Silva, Harper 9. Luckiest Girl Alive, Jessica Knoll, Simon & Schuster 10. Dragonbane, Sherrilyn Kenyon, St. Martin’s

HARDCOVER NONFICTION

1. Plunder and Deceit, Mark R. Levin, S&S/Threshold 2. The Life-Changing Magic of Tidying Up, Marie Kondo, Ten Speed 3. Between the World and Me, Ta-Nehisi Coates, Random/Spiegel & Grau 4. You’re Never Weird on the Internet (Almost), Felicia Day, S&S/Touchstone 5. Selp-Helf, Miranda Sings, S&S/Gallery 6. Destiny, T.D. Jakes, Hachette/FaithWordsDestiny, T.D. Jakes, Hachette/FaithWordsDestiny7. The Wright Brothers, David McCullough, Simon & Schuster 8. Modern Romance, Aziz Ansari, Penguin Press 9. Being Mortal, Atul Gawande, Metropolitan 10. The Micronutrient Miracle, Calton/Calton, Rodale TRIBUNE NEWS SERVICE

ONE of the country’s most awaited event for book lovers is back, as the Manila International Book Fair (MIBF) is set from September 16 to 20 at SMX Convention Center in Pasay City.

Now on its 36th year, the MIBF showcases the largest and most varied collection of literature for leisure and academic reading, including bestselling novels, textbooks, graphic novels, religious publications, stationery and school supplies. The MIBF is also the go-to event for this year’s biggest book launches, signings, contests, dialogues with readers and other literary events.

It has also been providing a venue for the exchange of ideas among the players in the publishing and academic industry.

Joining this year’s book fair are Abiva Publishing House Inc.; Academic Book Sales Inc.; Adarna House Inc.; Adbox Book Distributors; Alexan Commercial; Alpha Stream Marketing; Anvil Publishing Inc.; Asean Book Publishers Association; Asia Pacific Publishers Association; Asia/Pacific Circulation Exponents Inc.; Ateneo de Manila University Press; Bantay OCW Foundation Inc.; Bayard Assumption Media

Foundation; Belview Co. Inc.; Book Trends Enterprises; Bridge Publications Inc.; Brilliant Creations Publishing Inc.; C&E Publishing Inc.; Catholic Book Center; CD Books International Inc.; Cengage Learning; Central Books; Christian Growth Ministries Inc.; Christian Literature Crusade; Church Strengthening Ministry Inc.; Claretian Communications Foundation Inc.; Cosmos Bazaar; Creative Mind Books Center; CRW Learning; Cunanan Map House; Cyclophil Division; Data Science and Technology Corp.; and Edcrisch International Inc.

Also participating in the book fair are Elsevier Science and Technology; Emerald Headway Distributors Inc.; F&J de Jesus Inc.; Far Eastern University Publications; Fastbooks Educational Supply Inc.; Felta Multi-Media Inc.; Filway Marketing Inc.; Forefront Book Co. Inc.; Fully Booked (Sketch Books Inc.); Gentle Star Trading Corp.; Goethe Institut Philippinen; Golden Books Services Inc.; Great Books Trading; Gunnar Lie and Associates Ltd.; Hachette USA; Heartshaper/Lighthouse Educational Corp.; High Access Line Phils. Corp.; IBC Book Consolidators Inc.; IBON Foundation Inc.; iGroup;

Ilaw ng Tahanan Publishing Corp.; Jesuit Communications Foundation Inc.; Laxmi Publications; Lighthouse Inspirational Books and Gifts Inc.; Linar Educational Materials Inc.; Logos Publications Inc.; Lyric Piano and Organ Corp.; Maxcos Publishing House Inc.; Meganon Comics Publishing House; Megatexts Phil. Inc.; Mind Mover Publishing House Inc.; MSA Publishing House; and National Book Store Inc.

Aside from the varied list of exhibitors, the MIBF will also host two colocated events. The latest trends in technology will be discussed at the Digitech Manila Conference and Expo on September 17 and 18. Meanwhile, one of the most awaited events for anime lovers and cosplayers, the Best of Anime 2015, is slated on September 19 and 20.

It is organized by Primetrade Asia Inc. in partnership with Asian Catholic Communicators Inc., Book Development Association of the Philippines, Philippine Booksellers Association Inc., and the Overseas Publishers Representatives Organization of the Philippines.

For details, contact 896-0661, 896-0682, or bookfair@primetra deasia.com.

The biggest bookfair is back at SMX

The strange, savage universe of Ottessa Moshfegh’s ‘Eileen’

Lee’s ‘Go Set a Watchman’ still leads fiction bestsellers list

www.businessmirror.com.ph

PLUNDER & Deceit, PLUNDER & Deceit, PLUNDER written by Mark R. Levin, tops the nonfiction bestsellers bracket

The [email protected] �ursday, August 27, 2015 B35

IN this January 9, 1990, �le photo, an oil-spill cleanup work crew stretches a white absorbent boom line along the shoreline of the Arthur Kill waterway in Elizabeth, New Jersey Clean up e�orts continue to rid the water of up to 500,000 gallons of No. 2 heating oil believed to have escaped from an underwater Exxon pipeline. AP

State, environmentalists clashover $225-M Exxon settlement

The settlement ending an 11-year legal battle that spanned both Democratic and Republican governors is “fair, reasonable, in the public interest and consistent with the goals of the Spill Compen-sation and Control Act,” Superior Court Judge Michael Hogan wrote. He noted that the settlement is on top of Exxon’s responsibility to clean up the sites, which include two oil refineries in Bayonne and Linden and retail gas stations across New Jersey.

New Jersey sued ExxonMobil in 2004 for pollution dating back decades. The idea was to hold the company responsible not only for cleaning up polluted areas but to compensate the public for the

alleged harm to groundwater, surface water and other ecologi-cal resources. “This is an impor-tant settlement for the citizens of New Jersey and for our envi-ronment, one which came about because this administration ag-gressively pushed the case to trial,” Acting Attorney General John Hoffman said.

Christie, a Republican run-ning for his party’s presidential nomination, has hailed the deal as the nation’s second-largest of its kind against a corporate polluter, but the deal has been slammed by environmental groups and Democratic lawmakers who say the settlement is just a fraction of the billions of dollars New

Jersey should have recovered. “Today’s decision by the court sadly rubber-stamps the Christie administration’s sell-out settle-ment,” said Doug O’Malley, director of Environment New Jersey. “This settlement still stinks.”

The deal covered properties, such as the gas stations that were not part of the lawsuit. It calls for the oil company to pay for environ-mental remediation at the sites for an as-yet-unknown cost.

Hogan opens his 81-page ruling with a quote from a previous, un-related case: “Nearly any consent decree can be viewed simultane-ously as ‘a crackdown or a sellout.’”

Hogan presided during 66 days of trial from January 2014 to September 2014, that included dueling damage estimates from experts hired by the state and Exxon. He said he was just begin-ning to work on a ruling when he received notice that the state and Exxon had reached a settlement in February 2015. His decision to approve came after a 60-day public comment period, in which the vast majority of more than 16,000 pub-lic comments opposed the settle-ment, Hogan wrote.

He goes into detail in the rul-ing breaking down negotiations between Exxon and the state—New Jersey had asked for about $550 million under Democratic Gov. Jon Corzine in 2008, Exxon

started with an offer of $0—and cites the more than $257 million in remediation work that an Exxon project manager said the company had done at the sites from 1991 through December 2014.

Democratic State Sen. Raymond Lesniak dismissed that work, which opponents point out was part of separate court orders from 1991.

“It’s not significant,” said Le-sniak, a likely 2017 gubernatorial candidate who represents the area around the Bayonne and Bayway sites. “They’ve been polluting that site for over a century.”

Lesniak and environmental groups said they plan to appeal, al-though the environmental groups will first need an appeals court to grant them permission to intervene in the case. New Jersey Sierra Club Director Jeff Tittel says the groups plan an additional, separate appeal of the ruling.

Under law, about $50 million of the settlement will go toward site remediation. Another roughly $50 million will go toward the state’s private legal costs.

The rest is slated to go into the state’s general fund. Todd Spitler, a spokesman for Exxon, said the settlement brings the case to a “fair and reasonable conclusion.”

“Both parties will now have the benefit of the certainty and finality that comes from this settlement,” he said. AP

N EW YORK—The chief exec-utive of a Manhattan-based online male-escort service

and six of his employees at Rentboy.com were arrested on Tuesday on charges of promoting prostitution.

Federal prosecutors in Brooklyn accused Jeffrey Hurant of selling advertisements to high-priced male prostitutes for several hundred dol-lars, then charging Rentboy.com customers up to $299 a month to access the ads. The operation took in more than $10 million since 2010, prosecutors said.

Hurant, 50, was awaiting a court appearance later Tuesday. The name of his lawyer wasn’t im-mediately available. Rentboy.com had listed disclaimers saying its purpose was companionship and set guidelines banning offers of sex in exchange for money. But a criminal complaint cited several

ads that referred to various sex acts, offered reviews of sexual per-formance and listed rates ranging from $150 an hour to $3,500 for a weekend.

“As alleged, Rentboy.com at-tempted to present a veneer of le-gality, when in fact this Internet brothel made millions of dollars from promotion of illegal prosti-tution,” Acting US Attorney Kelly Currie said in a statement.

Hurant claimed in interviews the term “rentboy” meant male escorts while he was in Great Britain at-tending Oxford University, accord-ing to the criminal complaint. He said he started the web site because “escorts were a disenfranchised group,” it says.

“We just want to keep the oldest profession in the world up-to-date with all the latest technology,” the complaint quotes him as saying. AP

CEO, 6 workers of male-escortsite charged with prostitution

SAN JUAN, Puerto Rico—Puerto Rico’s heavily indebt-ed power company said on

Tuesday that it signed a contract to replace Brazilian oil giant Petrobras as the island’s main fuel supplier in a bid to save money as a restruc-turing deadline looms. The Electric Power Authority said the deal with Connecticut-based Freepoint Com-modities will help save $25 million the first year.

Neither the US territory’s power company nor Freepoint responded to messages seeking details of the contract. Documents filed with Puerto Rico’s Comptroller Office show the deal is worth $870 mil-lion, but no further details were

available. The power company said it also modified a deal with Spain-based Gas Natural Aprovi-sionamientos for $30 million in savings. The company will con-tinue to provide natural gas for Puerto Rico’s Costa Sur power plant, which has been burning natural gas since 2012 in a bid to reduce the US territory’s heavy dependence on petroleum.

Details of that agreement were not available at the Comptroller Office. “[The contracts] sym-bolize an important step in the ongoing transformation of the Electric Power Authority,” said Javier Quintana, the company’s executive director. AP

Proposed merger of Exelon, Pepco rejected by regulators

W E L L I N G T O N , N e w Zealand—New Zea-land’s national airline

on Wednesday posted a 24-percent jump in annual profit after benefit-ing from lower fuel costs and con-tinuing its expansion in Asia and North America.

Air New Zealand announced after-tax profits of NZ$327 mil-lion (US$212 million) for the year to the end of June. Revenue was up 6 percent to NZ$4.9 billion. The company said domestic passenger numbers were up 3.4 percent and long-haul international numbers up 9.3 percent. The company said it plans to add routes to Houston and Buenos Aires over the com-ing year as it expands its inter-national capacity by 15 percent. “Given the current known oper-ating environment, along with

our increased capacity and im-proved operating efficiencies, we expect to achieve significant earnings growth in the com-ing year,” Board Chairman Tony Carter said in a statement.

The airline was the launch cus-tomer for the 787-9, the stretch version of Boeing’s fuel-efficient Dreamliner. The airline plans to have six Dreamliners in service by next year and 12 by 2019 as it spends a projected NZ$2.6 billion on planes. But the airline’s growth has meant its net debt has more than doubled over the past finan-cial year to NZ$836 million. The carrier is majority owned by the New Zealand government and is also listed on the local stock market. The company’s shares were down by 2 percent after the results were announced. AP

Air New Zealand’s annualprofit up 24% as it expands

Puerto Rico power companydrops Petrobras in new deal

TRENTON, New Jersey—After originally seeking $8.9 billion, New Jersey’s $225-million settle-

ment with ExxonMobil over dozens of polluted sites is a reasonable compro-mise considering the substantial legal risks the state faced, a judge ruled on Tuesday in approving a deal that Gov. Chris Christie’s administration called historic and opponents called a sell-out.

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‘Ledac meet on taxreform bills needed’

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THE chairman of the House Committee on Ways and Means on Wednesday appealed to Congress leaders to urge President Aquino to immediately convene

the Legislative-Executive Development Advisory Council (Ledac) to tackle the measure lowering individual income-tax rates, following reports that Malacañang is against the tax-reform bill.

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JOLLIBEE Foods Corp.  on Wednes-day  said it signed

an agreement with Dou-bleDragon Properties Corp. for the construc-tion of Jollibee Tower in Ortigas Center. The companies said in their respective dis-closure that the project is a 40-story commer-cial and office tower that will be built by DoubleDragon on Jol-libee’s 3,002-square-meter lot.

In exchange for the lot, Jol l ibee, whose founder Tony Tan Cak-tiong has close ties with Edgar Sia II, DoubleDragon chairman, will receive certain floors of the building for office, commercial and parking units.

“They will get certain number of floors in exchange for the land. So it’s one is to one; cost is to cost. So land value versus certain number of floors. The rest they will lease from us, and the remaining we’ll lease to others,” Sia told reporters at the sidelines of the company’s stockholders’ meeting.

“Hopefully, in the next 20 to 30 years, Jollibee will occupy the entire building. At the start, it’s just a few floors,” he said.

Construction will commence by the fourth quarter of this year, and will be completed within 2018.

Jollibee Tower’s ground floor will include commercial spaces and drive-through store provision to carry the company’s fast-food brands, while the second and third floors will house an event center. Selected floors will also be used to house some of Jollibee’s offices to augment existing office spaces. The company has two other towers both located in Ortigas Center. Its new tower, meanwhile, is expected to secure LEED, or Leadership in Energy and Environmental Design, certification.  Sia declined to give the total amount for the construction of the building, saying that will be determined in the next two to three months.

The new building will generate about P350 million in an-nual rental revenues to DoubleDragon, and complete its plan to build 300,000 sq m of leasable commercial and office space in Metro Manila.

The company is also accumulating some 700,000 sq m of leasable retail space outside of Metro Manila, mainly coming from the construction of about 100 of its brand of community malls to be built in second- and third-tier cit-ies and towns. “This will give DoubleDragon a balanced and healthy port-folio both in terms of location, having a good mix of Metro Manila and provincial projects, as well as preferred expo-sure to robust and high growth industries, such as retail and office,” it said.

It expects to operate some five community malls this year. The company has already secured 42 hectares of prime properties across the country, which, once fully developed, will be able to deliver over 560,000 sq m of leasable space, it said.  The company has been vocal on its goal to build 1 million sq m of leasable space by 2020, and said it has already secured over half of the land it needs.

TIGAS CTIGAS CTIGAS ENTER

EXCLUSIVE PARTNERSHIPBUSINESSMIRROR Publisher T. Anthony Cabangon (center) inks the memorandum of agreement as media partner for the upcoming Apec CEO Summit 2015 event in November this year at a hotel in Makati City. Signing for the prestigious and influential organization is Apec Summit COO Guillermo M. Luz (second from right) and witnessed by (from left) BUSINESSMIRROR VP for Corporate Affairs Frederick Alegre, BUSINESSMIRROR Editor in Chief Jun Vallecera and Apec CEO Summit Director for Sponsorship Yenny Gonzales. ALYSA SALEN

enact income-tax reforms should include the Palace, since nothing can be worse than Congress passing a measure that will only be vetoed by the President due to “disagreeable” provisions. “For the tax reforms to be successfully enacted into law, we need an inclusive process at the on-set with all stakeholders being given the chance to put forward their po-sitions. The Ledac is the best venue for this,” Quimbo said.  He is the author of House Bill (HB) 4829, a centerpiece bill of the 16th Congress that seeks to provide tax relief to the middle and lower classes.   He said the measure aims to ovehaul the income-tax system to adapt to present realities, to correct the current income-tax situation wherein minority of Filipino work-ers pay the majority of tax payments, the middle class shoulders the bulk, and households headed by the self-employed have the lowest tax-par-ticipation rates.    Under the bill,   individuals earning below P180,000 annually will be exempted from paying in-come tax.  In the current setup, those earning P10,000 or less per month pay 5-percent income tax.  The bill also reduces the income-tax rate of those earning above P180,000 to 5 percent. The highest rate at 30 percent will be paid by those earning P1.1 million annually.  Currently, those with yearly earn-ings of P500,000 and above pay

32-percent income tax.  The Philippines has the third-highest individual income-tax rate in the region at 32 percent, next to Thailand and Vietnam, both at 35 percent. The Philippines also has the highest VAT at 12 percent, as the country’s current individual income-tax bracket has remained unchanged since 1997. DOF proposal In a Purisima-signed DOF memo-randum, the agency asked Presi-dent Aquino to endorse its proposed “Comprehensive Tax Reform Pack-age,” which includes a revenue-pos-itive package, an empowered tax administration, a simpler but more focused tax system and a competi-tive tax system.   Under this package, the DOF pro-posed to Mr. Aquino to exempt 11 million people from paying income taxes by granting an all-in income-tax exemption of P1 million to all wage earners.  The proposal also said the govern-ment will lower the tax rate within six years from 32 percent to 25 per-cent for individual wage earners, and lower the tax rate within five years from 32 percent to 25 percent for self-employed and professionals.  For corporate, the DOF wants to lower the tax rate within five years from 30 percent to 25 percent.  However, the department also proposed to increase VAT from 12 percent to 14 percent and expand the VAT base by removing all exemption other than those related to agricul-

ture, health, banks, education, as well as remove zero-rating except direct exports.  “This is a bold move designed to be a politically viable measure that will capture the imaginations of the public. If this measure is sup-ported, 11 million out of 12 million registered wage earners will not pay taxes, leaving only 4 percent of wage earners in the registered income-tax net, for better administrative focus,” the proposal said. “A reform package simplifies our tax administration and tightens its focus on key tax payers for better administrative oversight and makes our tax system competitive, given the impending Asean integration,” the DOF added. The agency also wants to repeal the bank secrecy for the BIR and make tax evasion a predicate crime of money laundering. The DOF also proposed to in-crease excise taxes on gas, diesel and other oil products. “While this reform package re-quires political will to implement, we believe this reform shows the proper balance of political and eco-nomic viability. The government is estimated to gain around P88 bil-lion to P152 billion in revenues from the package or an additional 0.6 percent to 1 percent of GDP [gross domestic product] in the first year of the implementation,” it said. Progressive tax systemQUIMBO said he is “not surprised because the President has always

taken into consideration that our tax system should be progressive. I am sure that his reason for opposing the same is based on the fact that we cannot unburden the middle class to make it progressive with them  to only burden the ordinary persons who shoulder the bulk of VAT.” He admitted that the government stands to lose  P92 billion annually should Congress give in to the tax-reform measure. However, to recover the revenues lost, Quimbo said the passage of rev-enue-generating measures—such as bills raising excise tax on fuel, the fiscal incentives rationalization bill, the proposed Tax Incentives Management and Transparency Act, Customs Modernization and Tariff Act, Rationalization of the Mining Fiscal Regime and the bill impos-ing specific tax on sodas and other sweetened beverages—are needed. ReliefMeAnWHILe, another bill lowering individual tax has been filed at the House of Representatives.  In his HB 5401, Rep. neri Col-menares of Bayan Muna said that since 1986, the tax bases remain substantially unchanged. “Based on the 1986 to 2014 Con-sumer Price Index published by the national Statistics Office, national consumer prices have increased by 539.53 percent since 1986. Thus, the P500,000 top tax base, if adjusted to its present value, is now equivalent to P2.697 million,” Colmenares said.  “A study presented by the Tax

Management Association of the Philippines reveals that while a Fili-pino individual earning P500,000 annually is taxed at 32 percent, his Asean neighbors with equivalent income are taxed at the following rates: Vietnam, 20 percent; Cambo-dia, 20 percent; Lao PDR, 12 percent; Malaysia, 11 percent; Thailand, 10 percent; Singapore, 2 percent; and Brunei, no taxes,” he added.  Colmenares, citing the official data from the national Wages Productivity Commission, said the daily minimum-wage rate in Metro Manila, the highest nation-wide, is at P466, while the lowest is at P213 received by agricultural and non-agricultural workers in the Ilocos region.   “These translate to an annual income of about P123,000 for mini-mum-wage earners in Metro Manila and about P56,232 for the Ilocos re-gion,” the lawmaker said.   “While a minimum-wage earner is tax-exempt, such dismal levels of income are still way below the Family Living Wage or the minimum amount needed by a family of six members to meet its daily food and nonfood needs, plus a 10-percent allocation for savings,” Colmenares added.   HB 5401 seeks to exempt income of families earning below P396,000 per year to preserve the monthly liv-ing wage of P33,000 from income taxation and to restructure and sim-plify the income brackets and their corresponding tax rates.  The measure also seeks to reduce and align the maximum tax rate with

those of corporate taxpayers (from 32 percent to 30 percent) and adjust the top tax base—from P500,000 to P2,700,00—to reflect adjustments in the Consumer Price Index (1986-2014) with P500,000 taxed by only about 10 percent. The bill also seeks to establish an automatic adjustment/index-ation mechanism with an interval of three years. Palace openC OM M U n IC AT IO n S S e c r e -tar y Herminio B. Coloma Jr. said on Wednesday the Aquino gov-ernment is “open to consider pro-posals on changing the income-tax rates and continues to work with Congress on this matter.” At a news briefing, Coloma  re-ported  that the DOF is advocating a comprehensive review of the exist-ing taxation system “so that needed reforms may be instituted.” Coloma pointed out, however, that it was also important to “iden-tify new and additional sources of tax revenues that will offset any reduc-tion in collection of income taxes.” “According to Finance Secretary Purisima, and I quote, ‘the DOF prefers a holistic review of the tax structure so as not to put our fiscal gains and fiscal health at risk,’” Coloma added. Administration Sen. Francis es-cudero earlier suggested that Presi-dent Aquino certify the urgent ap-proval of the bill on downward ad-justment of individual income-tax rates, considered among the highest in the region. With Butch Fernandez

BusinessMirror [email protected] Thursday, August 27, 2015 A2

NewsContinued from A1

‘Ledac meet on tax-reform bills needed’

By Recto Mercene

THE Ninoy Aquino Interna-tional Airport (Naia) would be able to accommodate more

flights by next year as regular runway closures will be reduced every week. Airport Manager Jose Angel A. Hon-rado said runway closures currently take place two hours every day, from 1:30 to 3:30 a.m., to allow for the re-moval of rubber deposits left behind by aircraft tires on the runways. Thick rubber deposits posed dangers to landing aircraft if the friction levels, specified by the Federal Aviation Administration, are not maintained. The Manila International Air-

port Authority incorporate rubber removal service into their main-tenance schedule due to the high number of aircraft, estimated at around 700 to 800, landings and take-off daily. The main runway 06-24 is closed from Saturday to Thursday while the secondary runway 13-31 is closed every Friday. The airport’s board of directors approved last Monday a new setup to reduce the closure of the main runway from six times to three times per week. It would be implemented to make way for new and additional scheduled flight operations which cannot be accommodated during

peak hours of flights. Honrado said the reduction of runway closures for maintenance will be carried out without compro-mising safety. “Newer equipment purchased last year allowed for a faster and more efficient method of de-rubberization.” A three-day closure per week for runway maintenance was con-ducted from September to October last year, following certain Civil Aviation Authority of the Philip-pines activities, which proved to be effective,” Honrado adds. Man-agement expects the new scheme to take effect early next year following a successful project bidding for the maintenance of the runways.

[email protected] Editor: Dionisio L. Pelayo • Thursday, August 27, 2015 A3BusinessMirrorThe Nation

MALOLOS CITY, Bulacan—Bulakenyos wil l com-memorate the 165th birth

anniversary of the country’s great propagandist, Marcelo H. del Pilar, on August 30.

With the theme “Gat. Marcelo H. del Pilar: Bayaning Bulakenyo, Huwaran ng Lahing Pilipino,” the event will be held at the Dam-banang Marcelo H. del Pilar in Ba-rangay San Nicolas, Bulacan town, with Interior Secretary Manuel “Mar” A. Roxas II as guest of honor.

Gov. Wilhelmino M. Sy-Alvara-do said the celebration will high-light the life and contribution of the great propagandist and rekindle it in the hearts and minds of the younger generation.

“The intelligence and heroism

of del Pilar were immeasurable. His contribution to the country’s literature paved the way for the Philippines to attain freedom. Let us all together revive the heroic feelings of every Bulakenyo which was started by the noble propagan-dist—del Pilar,” the governor said.

The event will kick off with a civic parade at 5:30 a.m. followed with a program and wreath-laying ceremo-ny to be led by Roxas, Alvarado, Bu-lacan town Mayor Patrick Neil Men-eses and National Historical Com-mission of the Philippines (NHCP) Executive Director Ludovico Badoy.

Meanwhile, the National Press Club, in partnership with the NHCP will launch the petition for the dec-laration of the birth of del Pilar as National Media and Press Freedom

Day during the Plaridel’s Journalism and Media Camp Workshop, Seminar and Exhibit on August 29 at the Mar-celo H. del Pilar Elementary School.

Del Pilar, also known as Plaridel, founded the first bilingual news-paper in the Philippines known as Diariong Tagalog in 1882, and also advocated reforms during the Span-ish era by publishing newspapers, including the La Solidaridad, that sought civil liberties for Filipinos. He died of tuberculosis on July 4, 1896, in Barcelona, Spain, a month before the Cry of Pugad Lawin, which signaled the start of the Philippine Revolution. The building housing the College of Mass Communications in the Uni-versity of the Philippines in Diliman, Plaridel Hall, is named after him. PNA

Bulacan to commemorate Del Pilar’s 165th birthday on Aug. 30

However, the Armed Forces re-fused to disclose the exact details on the exchanges between the two on the security concerns involv-ing the West Philippine Sea where China had already reclaimed seven reefs and were fortifying them into military structures, but which the US said earlier must be stopped.

Harris was on his maiden visit to the country as Pacom commander, and which it would also take him to Palawan and meet with Armed Forces Western Command (West-Com) Commander Vice Adml. Alex-ander Lopez to get a direct grasp of

the security issues on the ground, as the Wescom exercises operational jurisdictions over the territory that is being disputed by China.

Harris was accorded full mili-tary honors upon his arrival at Camp Aguinaldo before he and Iriberri went into a bilateral se-curity discussions, wherein they also tackled the security issues confronting the South China Sea.

The two military leaders also talked about the US Pacific Maritime Security Strategy report that came out this month and outlined the US Department of Defense’s strategy in

US admiral, Iriberri discuss security issuesBy Rene Acosta

UNITED States Pacific Command (Pacom) Commander Adml. Harry B. Harris Jr. and Armed

Forces Chief of Staff Hernando Iriberri met on Wednesday wherein the two military leaders discussed wide-ranging security issues, including the West Philippine Sea, where the country is at dispute with China.

the Asia-Pacific region.The report put forward the need

to safeguard freedom of the seas, deterring conflict and coercion and promoting adherence to interna-tional law and standards in order to preserve peace and security in the Asia-Pacific region.

The report also emphasized the need for the US to strengthen its military capacity in order to ensure it can successfully deter conflict and coercion and respond decisively when needed in the region and work, together with its allies and partners from Northeast Asia to the Indian Ocean to build their capacity to ad-dress potential challenges in their waters and across the region.

The maritime strategy prodded the US to leverage its military di-plomacy in order to build greater transparency, reduce the risk of mis-calculation or conflict and promote shared maritime rules of the road, and work to strengthen regional se-curity institutions and encourage the development of an open and effec-tive regional security architecture.

Harris was the former Command-er of the US Pacific Fleet and whose replacement, Adml. Scott Swift USN, visited the country recently.

THE NAZARENE’S FACE ON A JEEPNEY One of five public jeepneys in Puerto Princesa, Palawan, has the image of the Nazarene painted on both sides. Devotees believe that public transport bearing religious pictures keep the drivers and passengers safe. MAU VICTA

Naia can accommodate more flights next year

By Joel R. San Juan

ELECTION watchdogs have filed a pleading before the Supreme Court (SC) seeking to cite in contempt officials of the Commission

on Elections (Comelec) and technology provider Smartmatic for the latter’s failure to comply with its obligation to refurbish the existing 82,000 Precinct Count Optical Scan (PCOS) machines.

In a 16-page motion for intervention, for-mer Comelec official and convenor of Citizens for Clean and Honest Elections Melchor Mag-damo and Anti-Trapo Movement Inc. Founder Leon Estrella said Smartmatic-Total Information Management (TIM) also assailed the poll officials for dilly dallying in enforcing Smartmatic’s obli-gation to repair the PCOS machines

The petitioners explained that the Com-elec need not pay anything because the al-most P2 billion it paid to Smartmatic-TIM for the supply of 82,000 units of PCOS machines includes a warranty promise that Smartmatic shall repair defects in the counting machines.

They noted that many PCOS machines were found to be full of defects during the May 13, 2013, elections, thus, Smartmatic should have repaired thembecause the warranty period is not yet over.

“Smartmatic has no right to participate in any government bidding unlessand until it completes refurbishment “at its own ex-pense” or return at least P1.938 billion to Comelec and/or Republic of the Philippines,” the petitioners said.

The petitioners also sought to declare as null and void Comelec Resolution 15-0444 issued on June 2, allowing the realignment of funds in order to lease alll new 93,977 optical mark readers from Smartmatic for use in next year’s elections in the amount of more than P9.5 billion.

The resolution canceled the lease of Elec-tion Management System and Precinct-Based Direct Recording Electronic in the amount of P32 million and procurement of Voter Verification System in the amount of P727 million.

It also realigned the Comelec’s unobligat-

ed balances from its 2014 Maintenance and Other Operating Expenses for Sangguniang Kabataan (SK) elections and SK registration for its capital outlay requirement for 2016. The petitioners also noted that the realignment would also af fect the bio-metrics registration of voters which is now mandator y under Republic Act 0367.

“The realignment of funds under Resolu-tion 15-0444, sacrificing other unlawful funds [including biometrics] so that the Comelec can afford the P9.54-billion budget for what Smartmatic claims to be brand-new machines is void because the Comelec has no authority to juggle voters into disenfranchisement because biometrics registration is mandatory for a voter to be able to receive her or his one and only of-ficial ballot for the May 9, 2016, national and local elections,” the interveners said.

The petitioners sought to intervene in an earlier petition filed by Archbishop Rolando Tirona and the Center for People Empower-ment in Governance.

Poll watchdogs ask SC to declare Comelec, Smartmatic executives ‘in contempt’

BusinessMirrorThursday, August 27, 2015a4

TheBroaderLookA lot riding on ‘recycled’ trAnsport dreAm plAn

ThetrafficsituationinMet-ro Manila is so bad that Met-ropolitan Manila DevelopmentAuthority (MMDA) ChairmanFrancis N. Tolentinoevenchar-acterizeditasbloody. Signs that the economy is al-ready overheating from the steadyeconomicgrowthareobvious: fromroads,totrains,toairports,toports. Duringrushhoursatnight,Epi-fanio de los Santos Avenue (Edsa)lookslikeasceneofbloodbath,asaseaofredlightsfloodsallofitslanes.Atworse times, commuterswillex-perienceacompletestandstill,caus-ing a supposedly 30-minute drivefromAyalainMakatiCitytoCubaoinQuezonCitytobetripled. Beyond capacityEDSA is also home to the most-congested train line in the Phil-ippines—the Metro Rail Transit(MRT) Line 3. It serves roughly560,000 passengers per day, waybeyondits350,000capacity. Itshighestsingle-daypassengercount is 620,000. This, despite thetrainline’sdeterioratingstate: leak-ing coaches, unsafe rails, obsoletecommunication system and unreli-ablepowersources,amongothers.  Passengers of the MRT arecrammedlikesardinesinsidetraincarsthatarealreadycryingforhelpbecauseoftheirdepletinghealth.  TheNinoyAquinoInternationalAirport(Naia),ontheotherhand,isnowonitsDarkDays.Theairportisexpectedtohandlesome37.78mil-lion passengers this year, way be-yondits30millionannualpassengercapacity,andafewnotchesupfromitsmaximumcapacityof35millionpassengersperyear.  Congestion can also be felt atthe ports in Manila. It took thegovernment a full year to free upthe terminal in the capital fromoverstaying cargoes, whose deliv-eries were delayed due to the log-jamattheports. Hence, the government ad-opted the Japan InternationalCooperationAgency’s(Jica)P4.76-trillion Road Map for TransportInfrastructure Development forMetro Manila and its Surround-ingAreas,otherwiseknownastheDreamPlan.  It was accepted by PresidentAquino in 2014, and, as of today,roughly20percentto30percentofthe plan has already been done intermsofdesignandimplementation. ‘Recycled’ road mapJoSE REgIN F. REgIDoR, a re-search fellow at UP Diliman Na-tional Center for TransportationStudies, clarified, however, thatsomeoftheseprojectsareacarry-over from the previous plans toimprove the transportation infra-

structureinMetroManila. Heexplainedthatthereexistsa1973versionoftheDreamPlan,apt-lycalledtheUrbanTransportStudyinMetropolitanManilaArea. ItwasimplementedfromMarch1971 to September 1973, with theassistanceoftheoverseasTechnicalCooperationAgencyofJapan. TherewasalsotheMetroManilaTransport, Land Use and Develop-mentPlanningProjectof1977.Com-missionedbythePhilippinegovern-mentandfundedbytheWorldBank,it was implemented from January1976toFebruary1977. “The Dream Plan is not a newplan. It is actually a recycled andupdatedone.ThelatestDreamPlanbyJicaconsistsofbothroadandrailprojectsthatarepartofanidealnet-workforMetroManila.AsfarasthisDream Plan is concerned, perhapswe are at 20 percent to 30 percentintermsofdesignandimplementa-tion,”hesaidinane-mailinterview. Theplancallsfortheestablish-mentofamodern,well-integrated,coordinated and affordable trans-portsystemforMetroManilaandtheadjacentareasofBulacan,Pam-panga,CaviteandBatangas. The system will consist of ex-pressways,newroadselevatedandon ground, railways elevated andon ground, subways, airports andseaports. Near-term componentsare for completion by 2016, whilemedium- and longer-term compo-nents are for completion by 2020and2030,respectively.  When completed, the planwill accomplish at least three ob-jectives: The reduction of trafficcongestion in the metropolitanarea; the diminution of air pollu-tion in the metropolitan area andits environs; and the reduction oftransportation costs to the urbanpopulation,especiallythepoorandotherlow-incomegroups.  Completion will result in thereductionoftheaveragetravelfareofcommutersfromthecurrentP42toP24,andalsotheloweringofthecurrent average travel time of 80minutesto31minutes. Mixed resultsTRANSPoRT expert Rene S. San-tiago said government agencieshave mixed results with regard totheimplementationoftheprojectsunderthem.  “For the short term, muchhasbeendonebytheDepartmentof Public Works and Highways onroads,verylittlebytheMMDAontraffic signalization, and almostnothingonthepartoftheDepart-ment of Transportation and Com-munications [DoTC] relative totargets,”hesaid. The transport agency handles12ofthe13identifiedprojectsfor

thetransport-investmentprogramandmass-transitsystemsto2016.Thebulkofthemarerailprojects,suchastheLightRailTransitLines(LRT) 1 and 2’s capacity-augmen-tation projects; the expansion ofthecapacityoftheMRT3;andtheconstruction of three IntegratedTransportSystemterminals.  Butasoftoday,theDoTChasjust awarded the contracts to ex-pandtheMRTandtheLRTLine1,aswellas theconstructionof twoofthethreeITSsystems.Ithasyetto finish the feasibility study forthe bus rapid-transit system forC-5Road,amongothers. “We are still at least 15 to 20yearsbehindintermsoftransporta-tion infrastructure, especially com-paredtoourneighborsintheregion.Withthegovernment’seffortsinthepastfiveyears,weexpecttoseemostof our priority projects completedfrom2019to2022,whichwillmakeus competitive with our neighborsfor the next 20 years,” Transporta-tionSecretaryJosephEmilioA.Aba-yaconceded. Economic lossesASIDE from requiring the con-struction of 504 kilometers of in-tercityandurbanexpressways,137km of other roads and 318 km ofrailways, the roadmapalso stateseconomiclossesduetothechronictraffic in Metro Manila could bal-loontoP6billionperday,fromthecurrentP2.4billion,by2030. Regidornotedthattodaylossesfrom traffic jams around Bulacan,Rizal, Laguna and Cavite are alsopeggedataboutP1billiondaily.  “The economic losses are realand growing. Competitiveness ofMetro Manila and quality of lifewould decline considerably—ifthese losses are not tamed,” San-tiagoadded.  ButforRegidor,economicloss-escanneverbewipedout;theycanonlybetempered.  “Congestionisanormaloccur-rence,sowewillstill losealotev-erydayevenwiththeDreamPlanprojectsinplace,”hepredicted. Slowpoke implementationEURoPEAN Chamber of Com-merce of the Philippines (ECCP)External Vice President Henry J.Schumachersaid it isunfortunatethat the present government isfinding it hard to quickly imple-ment the projects found in theDreamPlan. “We are all aware that eco-nomic growth is and will sufferfromthelackandslowpaceof in-frastructuredevelopment,”hesaid. TheAmericanChamberofCom-merce,accordingtoitssenioradvisorJohnD.Forbes,is,likewise,“greatlydisappointed” with the snail-paced

By Lorenz S. Marasigan, Claudeth Mocon-Ciriaco & Catherine N. Pillas 

TRANSPORTATION-INfRASTRucTuRe development in the Philippines is about a decade or two behind when compared to its neighbors, making

congestion a new norm that could possibly wipe out the gains that the economy has experienced so far.

growth of infrastructure develop-mentinthePhilippines.  “Frankly,wearegreatlydisap-pointed that not a single new railline has started construction inalmost 20 years since the Ramosadministration. Everyone couldsee that with more growth, thecity would become congested withmore cars, while jeepneys, busesandtruckscompetewiththemforlimited road space. The solutionsarewellknown,butitisamysterywhy their implementation is nottoppriority,”hesaid. According to TransportationUndersecretaryReneK.Limcaoco,thereareroughly2.1millionmotorvehicles plying different routes inMetroManiladaily.

  “The difficulty of addressingMetroManila’stransportwoes,in-cludingtheseeminglyslowpaceofproject rollout, highlights an evengreater need to increase infra in-vestments,ensurethatprojectsareimplementedwithminimumdelay,andhastilydevelopotherecocen-ters to ease the burden on MetroManila,” Makati Business Club(MBC) Executive Director PeterAngeloB.Perfectosaid. HeaddedthatMetroManilare-quires not only the decongestion oftraffic,butitalsoneedstobedecon-gestedof“people,businessandevennationalgovernmentcenters.” To illustrate their point, theP2-billion Muntinlupa-Cavite Ex-pressway was only completed in

lateJulythisyear.AyalaCorp.citedissues on right-of-way acquisitionas the reason for the almost two-yeardelay.  The Skyway Stage 3—the con-nectorroadbeingbuiltbySanMiguelCorp.—isalsodelayedduetotheslowdelivery of the required easement tocontinuewiththeconstruction.  “Construction is slow—inmany cases because of rights-of-way constraints, and not-in-my-neighborhood mentality ofFilipinos.ofcourse,abigfactorisgovernment incompetence,” San-tiagoexplained.  Public-Private Partnership(PPP) Center Executive DirectorCosette V. Canilao explained thatthe slow implementation of proj-

The artwork on a jeepney reflects the traffic situation in Metro Manila: bloody. AP /AAron FAvilA

A MeTropoliTAn Manila Development Authority (MMDA) officer checks the traffic-monitoring system at MMDA’s Command Control Building in Guadalupe, Makati City. noniE rEYES

A ferryBoAT negotiates the pasig river in Manila in this September 9, 2014, file photo. The MMDA is promoting the ferry system as an alternative mode of transportation, particularly in the midst of the current traffic congestion. AP/AAron FAvilA

BusinessMirror www.businessmirror.com.ph | Thursday, August 27, 2015

TheBroaderLooka5

A lot riding on ‘recycled’ trAnsport dreAm plAn

sector to implement—it’s as easy as that,” Schumacher said. Forbes even called for the replacement of the current trans-port chief, a close ally of Presi-dent Aquino. “Obviously, the DOTC has not done a good job in addressing the Philippines’s transport needs. And the problems at DOTC have been there over a decade. It needed an en-gineer and not a corrupt chief as sec-retary. Many people say it still needs an engineer, and many say it should be combined with the DPWH, as it was 30 years ago,” he said. Perfecto said his group’s most-recent executive survey of national agencies placed the DOTC at the bottom, together with the Office of the Vice President (OVP). “While the OVP may be suf-fering from the impact of corrup-tion allegations against the Vice President, the DOTC may be reaping unsatisfactory ratings from our CEO members who may be frustrated with the continuing transport and logistics woes of the country. The 2030 plan is probably not also being communicated properly and enough to business and the wider public. Meantime, there seems to be a lack of action to put in place mitigating measures and projects,” he said. But, despite all these problems with the government, the private sector is still keen on helping the state address the transport prob-lems in Metro Manila.  “We believe and advocate that all restrictions on foreign partici-pation in the transportation and construction sectors will bring in more foreign capital and technol-ogy to speed up implementation of the plan. It is only logical that when the need for modernized transport is so great that all resources are brought to bear,” Forbes said. He explained that modern transport infrastructure can ex-pand foreign-investor presence in Manila and surrounding regions, and create many hundreds of thou-sands of good jobs.  “Competing countries like Thailand, Malaysia and Singapore are creating more livable cities. And if Metro Manila falls further behind and does not catch up, it may lose locators due to ineffi-ciency, congestion and pollution,” Forbes added.  For his part, Schumacher said that, while his group is supportive of the infrastructure thrust of the Philippine government, his camp hopes that the Department of Trade and Industry (DTI) and the Department of Public Works and Highways (DPWH) will be willing

to implement the law that allows foreign contractors to operate fully in the country. “Foreign business is ready to help, but both the DTI and the DPWH are not willing to imple-ment the law that allows the full activity of foreign contractors and construction companies,” he said. The MBC, according to Per-fecto, will continue to advocate for the institutionalization of critical legislation that will assist in the implementation of the plan, such as the amendments to the build-operate-transfer law and the right-of-way act.  “We are certain that the larger network of the Philippine Business Groups-Joint Foreign Chambers will also actively advocate for such legislative measures,” he said. Doable, but...IMPlEMEnTInG the Dream Plan, however, should not be a problem to the government, Santiago said.  “The Dream Plan can be done. Money is not the obstacle to its re-alization,” he said.  Almec Corp. Chairman Shi-zuo Iwata, who crafted the road map, even said the Philippines now has enough money to bankroll the Dream Plan, citing the recent growth of the economy.  Jica estimated the country’s local output growth must average at least 6 percent until the end of the Aquino presidency; 7.5 percent in the 2017-2022 period; and 5 per-cent in the 2023-2030 period for the proposed traffic-management plan to work effectively.  If the country’s growth follows the projected path, the country’s annual infrastructure budget of 5 percent of GDP will reach P1.75 trillion in 2014-2016; P5.3 trillion in 2017-2022; and P9.8 trillion in 2023-2030. But, despite this, the govern-ment should have enough will-power to execute the road map in order to address the chronic traffic congestion in Metro Manila.  “It is the government’s abil-ity to execute them. For example, the plan calls for about 200 km  of rail lines by 2030. But from 2010 to 2016, zero km got built. none of the three provincial bus termi-nals promised by President Aquino in his first State of the nation Ad-dress will be completed by 2016,” Santiago lamented.  The success of the Dream Plan, Regidor noted, will also depend on the success of Mr. Aquino.  “At this point, the current admin-istration is just starting or planning many major projects in the Dream

Plan. Elections are fast approaching and people know that nothing major can be accomplished once the cam-paign season starts. Some people are counting on a continuation of this administration in the form of a successor admin that is committed to continue plans and programs of the current one,” he said.

Contingency measuresSEEkInG to ease up the burdens caused by the monstrous traffic jams in the metropolis, the MMDA adopt-ed contingency measures, especially in areas with ongoing roadworks and infrastructure projects.  Tolentino, who personally su-pervised the traffic in katipunan near Ateneo de Manila and along SM Megamall  on Wednesday (Au-gust 26) morning, said the heavy traffic crippling the metropolis was brought about by a conflu-ence of factors: the ongoing ma-jor infrastructure projects, which constricted the lanes used by mo-torists; volume of vehicles plying Edsa; and the flooding of several streets after heavy rains. Some of the projects that se-verely affect the flow of vehicular traffic in Metro Manila are the naia Elevated Expressway proj-ect; the Citra Skyway 3 project in Makati and Manila areas; the up-grading of two bridges in Quezon City (Dario Bridge and Congressio-nal Extension), among others.  All these projects are under the DPWH.  “These are long-term infra-structure projects with long peri-ods of construction. If more con-struction is ongoing, traffic gets worse,” Tolentino said, adding that the number of vehicles plying Edsa, the metropolis’s prime thor-oughfare, remains a problem.  Cris Saruca, head of MMDA’s Traffic Discipline  Office, said they opened a zipper lane going north-bound in the area of Dario Bridge.  Saruca said that additional traffic enforcers, motorcycle and mobile patrol units were deployed in identified chokepoints, particu-larly in the naia area.  He identified the chokepoints on Edsa, which include Balintawak, Muñoz, Timog, Monte de Pie-dad, Aurora, P. Tuazon, Santolan, Ortigas, Shaw, Boni, Guadalupe, Buendia, Ayala, Magallanes and Pasay-Taft. Along C-5, the heav-ily congested areas are katipunan, Eastwood, Ortigas, Bagong Ilog and kalayaan. likewise, motor-ists also complain about the heavy traffic on Commonwealth Avenue going to Fairview.  Additional traffic enforcers,

numbering 40 to 50, were also de-ployed in naia, where traffic gets heavy on Old Domestic Road, An-drews and Sales.  Despite these challenges they are currently facing, Saruca said they are trying their best to do their part to address the traffic problem.  Tolentino, meanwhile, noted that Edsa’s capacity is 160,000 ve-hicles per direction per day.   “At present 260,000 vehicles travel in both directions along the main thoroughfare on a daily ba-sis.  So the total number of vehicles traversing Edsa is 520,000 vehicles per day. If there’s a collision or an accident, then expect heavy traffic right away,” he said.  Another factor that worsened the traffic jams, particularly in Ma-nila, was the lifting of the truck ban on designated roads leading to and out of the port area. The move was meant to facilitate the move-ment of trucks into and out of the Port of Manila using roads in Ma-nila, Makati, Pasay and Parañaque.  Tolentino cited the continued increase in vehicle volume for the coming years, as car sales are ex-pected to reach 250,000 units be-fore the end of the year. The worsening floods in the metropolis also became a major contributor to the traffic gridlock. Flooding worsened because of the inefficient drainage system. Cur-rently, the DPWH has yet to finish 39 drainage projects, he said.  To make sure that traffic en-forcers would still be directing traffic even at night, especially after a downpour, Tolentino said the agency has deployed more traffic enforcers on nighttime shifts, particularly on Edsa and the C-5 Road.  Tolentino said at least 200 traffic enforcers would be deployed every night on three shifts, from 5 p.m. to 12 a.m.  The agency also launched in March a mobile app that allows car-pooling. Dubbed Friend Trip, the app aims to offer an alternative solution to the traffic congestion and, at the same time, help ease pollution. Road mapTOlEnTInO, however, stressed that the answer to the worsening traffic problem in Metro Manila is the Mega Manila Transport Road-map. The road map defines “Mega Manila” as Metro Manila, Bulacan, Rizal, Cavite and laguna, which are the main focus in this study.  The transport road map em-phasizes the need to establish better north-south connectivity and appropriate hierarchy of dif-ferent transportation modes, such as roads, railways and other mass-transit systems.  “The road map will be the ad-ministration’s guide on what to imple-ment in Metro Manila until 2030,” he said, stressing that Metro Manila still needs an intercity expressway of about 426 km until 2030.  The government is also plan-ning to put up a subway, or the Mass Transit System loop, which aims to improve intercity linkage by providing a higher-capacity public transportation system.  The subway will start at San Jose del Monte, Bulacan, and end in Dasmariñas, Cavite, travers-ing the major business districts of Metro Manila.  The study is ongoing and upon approval, it will be imple-mented in 2017. The road map study was con-ducted in close coordination with Jica, neda, MMDA, DOTC, DPWH and relevant stakeholders and oth-er related agencies.

Pasig RiverTOlEnTInO said the agency is also promoting the ferry system as an alternative mode of transporta-tion, particularly in the midst of the current traffic congestion.  At present, the ferry service has 11 stations, which include Pinagbuhatan and San Joaquin in Pasig City; Guadalupe and Va-lenzuela in Makati City; Hulo in Mandaluyong City; Polytechnic University of the Philippines Santa Mesa, Santa Ana, lambingan, Es-colta, lawton and Plaza Mexico in Manila, with 10 passenger boats in operation.  The MMDA, the DOTC and the Pasig River Rehabilitation Com-mission revived the Pasig River Ferry System in April last year.  The MMDA chief said the only solution to ease the traffic gridlock is the modernization of the MRT and lRT, as well as the continued operation of the Pasig River ferry.  MAP, ADB proposalsEDUARDO H. YAP, chairman of the Traffic, Transportation and Infrastructure Committee of the Management Association of the Philippines (MAP), said the group came up with a list of recommen-dations on the traffic woes. The list includes the issuance of an execu-tive order assigning a traffic czar, who will coordinate all matters re-lating to traffic and empowered to control—when necessary—other national government agencies, in-cluding the MMDA, DOTC, DPWH and the lTO, among other offices.  Other recommendations in-clude deputizing a highway patrol group, implementing road-engi-neering refinements and upgrad-ing major national roads into ex-pressways. For the Asian Development Bank (ADB), however, the main solution to the country’s traf-fic woes lies in improved public-transport efficiency.  “Building new urban roads will increase traffic demand and make congestion worse. no city has resolved traffic congestion by just building more roads,” said Valerie lisack, transport special-ist at the ADB, speaking of ADB’s Sustainable Transport initiative.  Among the alternative solu-tions proposed by lisack is the “active transport design,” or non-motorized transport, which will include infrastructure for nonmo-torized mobility like greenways.  The ADB’s proposals include a parking-levy scheme, or a fee paid on nonresidential parking spaces, whether utilized or not. ADB estimates that in the case of the Philippines, if there is a parking levy in Metro Manila at P20 per day per space, the scheme would generate over P15 billion per year that cities can use to fund public-transport improvements. DisciplineFOR Manila Archbishop and Cari-tas Internationalis President luis Antonio Cardinal Tagle, “good ur-ban planning, vehicle regulation and discipline” are the three ways to help solve the worsening traffic problem in Metro Manila. “The traffic problem mirrors our attitude. Are you a giver? Hot-tempered? Do we share the road? Are we  considerate with others?” Tagle asked in an interview over Radio Veritas. He called on concerned gov-ernment agencies to provide good urban planning, regulate vehicles and observe discipline on the streets to be able to ease the traf-fic problem.

ects can be traced back to the re-quired time to finish a facility. “The planning period alone is quite long. Construction is also slow because we also have to man-age the traffic that comes with the construction. Today traffic is very bad, given the number of projects under construction,” she said. Private sector ready to helpSCHUMACHER, Perfecto and Forbes all agreed that the govern-ment has been quite incompetent in addressing the infrastructure woes in the Philippines.  “The DOTC has not done well and is unlikely to improve under this administration. The govern-ment should enable the private

The Ninoy Aquino International Airport is expected to handle some 37.78 million passengers this year, way beyond its 30 million annual passenger capacity, and a few notches up from its maximum capacity of 35 million passengers per year. Recto MeRcene

Thursday, August 27, 2015

OpinionBusinessMirrorA6

Memo to regulators: About that early-warning system

editorial

When markets plummet as they did in re-cent days, regulators need the answer to a crucial question: how many of the world’s banks, hedge funds and other financial

institutions might be in danger?

Regulators have had since the 2008 financial crisis to figure out how to gather the information. They’ve done a lot of work—but they still don’t know the answer.

After the troubles of insurance giant AIG and others caught regula-tors off guard and forced governments to arrange taxpayer-backed bail-outs, global leaders set out to build a financial early-warning system. It would mean monitoring the linkages among financial institutions more closely, to identify concentrations of risk in real time and across borders.

Take credit derivatives, the instruments that almost brought down AIG. They provide insurance against defaults on bonds issued by compa-nies and countries, and allow risk to be transferred in an instant—say, from a bank in Taiwan via a dealer in London to a hedge fund in Atlanta. To judge which institutions are most exposed to defaults, regulators need up-to-the-moment data on derivatives outstanding all over the world.

Over the past several years, national regulators have made progress in collecting this information. The european Union, the US, Japan, China and other countries have required that derivatives trades be re-ported to special repositories. Problem is, they’re using different rules, and data in incompatible formats. And they have no firm plan for shar-ing the findings.

The result is a mess. The Financial Stability Board (FSB), a global regulatory body that monitors the data-collection project, said in a July progress report: “Some authorities have noted that reporting seems to have become more fragmented currently than it was when reporting was solely voluntary.” This also makes compliance unnecessarily com-plex for financial institutions, which must grapple with different and sometimes conflicting requirements across multiple jurisdictions.

It’s something that regulators, at least, recognize the problem. The FSB has started a review that will report on barriers to sharing deriva-tives data at the next summit of the Group of 20 (G20) nations in no-vember. Meanwhile, securities regulators are working to create detailed guidance on how to collect data in a format they can all understand.

That’s fine, but a greater sense of urgency doesn’t seem too much to ask. The status quo plainly isn’t good enough. Maybe the current mar-ket turmoil will jolt G20 leaders into turning up the pressure. no one wants a panic to draw attention to the weaknesses of the system in a much more dramatic way. Bloomberg editorial

ChInA as a country has experienced a hard life in the last 100 years.

 In the late 1800s China was like an all-you-can-eat buffet being carved up and shared by a mixed set of would-be colonizers that include Britain, Germany, Russia, France and Japan. Britain, for example, was able through force of arms to get China to give up the critical seaport of hong Kong and required China to import opium from British colony India.

By Eve Fairbanks | TNS

When I started college in the early 2000s, late at night, as my will to finish another paragraph of Foucault evaporated, I signed onto LiveJournal, the blog host beloved by teenage

girls. I trolled strangers’ “journals.” These weren’t blogs like Andrew Sullivan’s Daily Dish. They were, especially in the site’s early days, simply a glimpse into somebody’s real life, raw and vulnerable: fights with mothers, angst and awe at changing bodies, fantasies of R&B stardom, fears of moving through life unseen.

Don’t blame China

My favorite writing tool: The Facebook status-update window

In large measure because of its weakness in dealing with the for-eigners, the Qing Dynasty fell after more than 250 years.

During World War I, China joined the allies against Germany to fend off Japan, which decided to help the war effort by invading China to capture the German naval base at the Shantung Peninsula, violating Chinese sovereignty and neutrality. After the war, German concessions in Shandong were given to Japan, not back to China.

While Sun Yat-sen, founder and first president of the Republic of China, tried to unify the nation, the newly established Soviet Union was supporting the uprising of the Chi-nese communist party. Britain and its allies responded with a declara-tion of war two days after Germany invaded Poland in 1939, but were all but totally silent in 1931, when Japan invaded China.

China was a founding member of

the United nations (Un), but when the Chinese civil war winner Mao Zedong took over the government, its Un seat was given to Chiang Kai-shek’s government in Taiwan. China sent a million troops into Korea dur-ing that civil war, only to be fought to a stalemate by the American-led Un forces. The US militarily intervened in 1954 to prevent the mainland Chinese government from recap-turing its self-proclaimed territory of what was then commonly called Formosa. While wanting to be a full partner in the ideological war of communism against capitalism, China was treated like an unwant-ed relative by the Union of Soviet Socialist Republic.

If China was a person, its psycho-logical evaluation would probably show someone who is paranoid, has low self-esteem, and whose inap-propriate public behavior tries to compensate for lack of confidence.

Chinese economic policy-makers

are not foolish, but they are ignorant. having lived through decades of totalitarian economic control, there is a genetic belief that the central government has the power to suc-cessfully move the economy in any direction that it wishes. That works when the economy is agrarian-based and the government owns all the land and means of production. But successful industrialization re-quires the freedom of creativity and entrepreneurship.

China has known for a decade that its export-based economy was not sustainable and that it needed to move to a consumer-based econ-omy. The economic geniuses in Bei-jing, not unlike their counterparts in Washington, London, Berlin and elsewhere, began pumping tens of billions into construction to create consumer home ownership not un-like the West in the early 21st cen-tury. The results have been exactly the same—boom and bust.

The Chinese government’s next effort was almost the same as the US stock-market boom and bust of the 1990s. There is nothing that makes the average person feel rich and be-ing a big-time capitalist as owning shares of stock that doubles in price. China’s problem is this: Because of its immense government control, they were able to compress three decades of Western boom-and-bust into just a few years.

The Chinese government wants to be viewed as an equal in the world stage; but it has always been treated as the guy at the fancy party wear-ing a tuxedo with the zipper open. China has spent billions building up

its navy, but everyone knows that it has limited military capabilities be-yond a few hundred miles from its own shores. To compensate for its global inadequacies, China bullies the Philippines.

The global market meltdown is being blamed on the Chinese stock- market collapse, its devalua-tion of the renminbi and its slowing economy. everything is true, but all those are the results of Chinese boom-bust economic-policy failure, a necessity that the government must do to bolster its exports, and a wasted effort trying to keep a smile on the faces of the average Chinese. Still, do not blame China.

Look westward: The Western stock markets are almost totally disconnected from ordinary retail- investor participation, which is the lowest in 50 years. The financial institutions have made countless billions from government and cen-tral bank “stimulus” programs that nearly destroyed the middle class in the US, europe and Japan. They now realize that the party for them is coming to an end as the central banks lose control of the markets.

Confidence in the government is evaporating and with it, the markets. China, for all its major faults and fool-ishness, is a convenient scapegoat for the greater foolishness in the West.

  E-mail me at [email protected]. Visit my web site at www.mangunon-markets.com. Follow me on Twitter @mangunonmarkets. PSE stock-mar-ket information and technical analysis tools provided by the COL Financial Group Inc.

OUTSIDE THE BOXJohn Mangun

I could read those posts for hours, until the sun came up, the way some kids play video games. The writers just spoke—to friends, to strangers, and to the nebulous and thrilling sense of an au-dience somewhere out there. They were more transfixing than the Faulkner, T.S. eliot and David Foster Wallace I had to read in my english courses.

But my habit embarrassed me. I wor-ried that my freshman-year roommate, who used my computer occasionally, would find my favorite LiveJournals stored in my search history and wonder about my fetish. More than that, I was sure I was wasting time.

In journalism class, we did “real” writing: pieces that followed a set of in-structions on how to build an argument and were composed on the formal blank white Word document page. On Live-Journal, the writers typed into a small

blank box, a format that telegraphed speed and immediacy. Those “journal-ists” composed their stories like girls con-fess their dreams at a sleepover. I thought it was wrong—bad writing whose dirty charms I would, in time, outgrow.

But now I make a living writing, and I’ve learned the opposite is true. The longer I do this work, the more I do it like those teens did their LiveJournal-ing. I write first on Facebook. I’m writ-ing this column in a Facebook status-update window.

It started a couple of years ago. I’d followed a boyfriend to Kenya. It was wondrous: The immense birds that clat-tered on our apartment roof, the drench-ing rains, the lulling tones of Swahili, the colors of women’s dresses, the not-quite-popcorn-like smell that wafted up from roasted-corn vendors. I wanted to tell people about it, but as a total

greenhorn, I had no business trying to write authoritative journalism about east Africa. I just wanted to marvel, to bear witness. So I took to Facebook.

Soon I began to realize that my posts were more interesting than my “official” journalism. They were more direct, asked deeper questions. Out poured visceral, accessible scenes and snippets of over-heard speech laced with speculation and curiosity, and addressed, in my imagina-tion, to people I knew. The audience was exactly the right muse.

Before Gutenberg made us a people of print, literature was developed in public performance just as much as it was in private, by a solitary writer slav-ing over a page. “hearing rather than sight…dominated the older poetic world in significant ways,” Walter Ong, the scholar of literacy, has written. homer and the classical Chinese poets refined their works in front of audiences. even as we fell in love with print, much great writing was done at first as a kind of conversation between people, like the work fleshed out in Anais nin’s letters to henry Miller or the poet Rilke’s to the young Franz Kappus.

We’ve come to think that most of what happens on the Internet is tossed off, inchoate, pleasurable maybe but ul-timately insignificant. We rarely imag-ine e-mails can be works of art, as we know handwritten letters can be. And

Facebook? Just engagement announce-ments and pictures of desserts.

We’re missing a huge opportunity. These days, I adapt many of my short articles off of bits I’ve posted on Face-book, after I get up in the night seized by the desire to discuss something with the discrete set of people I know will jump onto the comments board. These stories grow from the public intimacy of Facebook, and their wide-ranging and personal topic matter often surprises even me. I also write the first drafts of 7,000-word, heavily reported pieces in the cramped status-update window, though, I don’t click “Post.” Writing in the status-update window loosens my writing and gives it an easy informality.

A mid-20th century poet once con-fessed he wrote all of his best poems on the back of scrap paper from his wife’s job as a typist, because anything he wrote on fresh paper suffered from the pressure to be good. The Facebook status-update window functions as a cross between the amphitheater and the piece of scrap paper. It returns writing to its essential purpose: not formally composed literary pyrotechnics but straight ahead, earthy communication.

even if you’re not a professional writer, try it. You’ll be interested in the voice that emerges: The passions, the questions, are different from the ones you’d confess to a formal blank page.

HOM

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Holding on to God’s norm

To live in the presence of the Lord, one must walk blamelessly, doing justice and thinking the truth in his heart (Psalm 15:2-3, 3-4, 4-5).  Jesus named the hypocrisy of the Pharisees and

scribes who meticulously observe human traditions but disregard God’s commandments (Mark 7:1-8, 14-15, 21-23).

Doing justice in God’s presenceIN order to be close to God, the psalmist reflects on the way we must live.    And his fundamental insight is that our relationship with other human beings is the test of the truth of our relationship with God, because our intimacy with God is the context within which we should relate with our neighbor.  As Micah points out: “With what shall I come before the Lord?.... You have been told, o man, what is good, and what the Lord requires of you: only to do the right and to love goodness, and to walk humbly with your God?” (Micah 6:6, 8).     

To “walk blamelessly” connotes a way of life based on righteousness and on doing justice, that is being conformed to God’s norm against which everything else is measured. This faithfulness to God’s will origi-nates in one’s innermost being; it means one’s thoughts are aligned with the truth of God’s goodness. And, therefore, three things one must not do: slander anyone with the tongue, do evil to a friend, and

cast a slur on a neighbor. Loyalty to the Lord means making the choice: honoring those who fear the Lord and disdaining those who reject Him. And two more things that one must not do: to lend money at usury and to accept bribe against the innocent—victimizing others for personal gain. Whoever lives with others in such fi-delity to God’s will and in righteous-ness will surely be blessed and know peace and security.       

 Doing God lip-serviceTHe confrontation between Jesus and some of his critics is prompted by the issue of ritual cleansing.  His critics, Pharisees and scribes “from Jerusalem,” represent the author-ity of the religious leadership in the capital.   Their public criticism of the disciples of Jesus is an indi-rect criticism and shaming of Jesus who is held responsible for the be-havior of his followers. These have been observed eating without first washing their hands. Temple priests customarily wash their hands when offering sacrifice, and the ritual

has been made into a requirement obliging everyone not to eat with-out carefully washing hands. Such general handwashing, not actually mandated by the law, is part only of the oral law or “the tradition of the elders.” 

Jesus calls His opponents hypo-crites. With their preoccupation with external purification, they are really hard at projecting themselves as models of holiness, while, in truth, they are missing on what is truly pleasing to God.  The quotation from Isaiah, Jesus puts up against His crit-ics, says it all: “These people honor me with their lips, but their hearts are far from Me; in vain do they worship Me, teaching as doctrines human precepts” (Isaiah 29:13). To make the point unmistakable, Je-sus spells it out for the critics: “You disregard God’s commandments but cling to human traditions.”     

 Hearts far from GodWHeN the very ones who criticize others and demand of them strict observance of their law but them-selves fail to observe God’s com-mand, something is very seriously foul and it cannot be tolerated.  To be faithful in the outward observance of religious practices while remain-ing remiss in one’s total commitment to God is both pretention and self-deception.  It is a fatal failure to hold together the fundamental core of the law and of Jewish tradition, the double commandment to love God and neighbor (Mark 12:29-30), on the one hand and on the other the many secondary practices that have func-tionally become autonomous. The

distinction between the center and the periphery has become obscured; the obsession with externals that are more easily observed and measured takes the center stage.   

Jesus makes sure His hearers see the seriousness of this misdirection by the Pharisees and scribes. He reas-serts the proper perspective regard-ing cleanliness and uncleanness. Ritual uncleanness is ultimately putting unclean food (with unclean hands and unclean pots) in oneself and so contaminating oneself.  It is moral defilement that is dangerous and unacceptable. Defilement begins and develops in a person’s heart in the cultivation of evil thoughts and imaginings and malicious inten-tions.  People work from the inside out: if the mind or the heart is full of murder, avarice, adultery, deceit, wickedness, pride, envy and licen-tiousness, the drivers are there al-ready internally for the moral havoc and pollution to be unleashed exter-nally in the world.

 Alálaong bagá, to live out of the

heart and center is basic for spiritual health.  It is Christ’s way.  It means one can adequately hold the inner love of God and neighbor and the outer manners and ways that love should be embodied. Self-knowledge is an ally of righteous living, of living in the presence of the Lord. We need to be aware of what drives us, to be free to cooperate or resist.       

Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.

AlálAong BAgáMsgr. Sabino A. Vengco Jr.

Local tax on petroleum products

A PRevIouS BusinessMirror issue highlighted a recent ruling by the Supreme Court that says local government units (LGus) cannot impose local business tax on

petroleum products. That decision (in G.R. 187631, July 8, 2015) is significant, not only to the parties involved in the case, but also to all other players, including smaller dealers and retailers, as well as consumers. The message is clear that local taxing power cannot be exercised at will, especially if that power is limited by a statute.

THe very recent devaluation by China of its currency, making the yuan  weaker by at least 2 percent against the uS dollar, sent shockwaves to the global financial markets

and continuously threatens emerging and developing  economies.  The change in the yuan policy also has an immediate political effect, as China is considered to be the largest and busiest trader in the world.

Indeed, no less than the Constitu-tion grants each LGu the power to create its own sources of revenues. The Local Government Code (LGC) of 1991 further recognizes that power as consistent with the basic policy of local autonomy. It is on this basis that some LGus believe that the power is so broad that any activity, involving the rendering of services, produc-tion, manufacturing, distribution, selling or any business activity can be the subject of taxation.

Jurisprudence, however, has taught us that local taxation has many limitations. Foremost is that for a transaction to be subject to lo-cal business tax, it is imperative that the activity falls within the sphere of commercial activity regularly en-gaged in as a means of livelihood or with a view to profit (G.R. 154993, october 25, 2005). If the activities are not geared toward maintaining a livelihood or obtaining profit, the party involved in such transaction is not required to pay local business tax.

But even an activity that is regu-larly conducted for profit may not necessarily be covered by the taxing power of LGus. There are restric-tions on the power to tax provided in our laws.

Going back to that recent decision regarding local taxation of petroleum products, the Court emphasized that the power to tax is not inherent in LGus. The Constitution itself pro-vides that this power shall be sub-ject to the guidelines and limitations which Congress may provide. Thus, local taxation must be exercised within such guidelines and limita-tions provided in statutes.

on this aspect, Section 133 of the LGC enumerates the common limitations on the taxing powers of LGus. This provision clearly pro-vides that local taxation does not extend to, among others, taxes, fees or charges on petroleum products. As so explained by the Court, this is a specific provision of the LGC that prevails over Section 143 of the same code from where the power of LGus to impose tax is derived. Thus, as long as the subject matter of the taxing power of the LGus is the petroleum per se or even the activity or privilege related to petroleum products, such as manufacturing and distribution of products, it is covered by the limi-tation and no levy can be imposed.

This categorical pronouncement from the Court hopefully settles the issue on the taxability of petroleum product, in all its forms.

Related to this, one of the favorite subjects of local taxation is the levy of taxes on liquefied petroleum gas (LPG). Some LGus are taking the view that LPG is subject to their taxing power. Those who take this position categorize LPG as cooking gas and tax it based on Section 143(c)(3) of LGC and Section 232(c)(3) of the Rules and Regulations Implementing the LGC, which specifically impose local tax on exporters, manufacturers, millers, producers, wholesalers, distributors, dealers or retailers of essential com-modities, such as cooking gas.

Contrary to this view, the Bureau of Local Government Finance had made various issuances confirming that the sale of LPG is not subject to local business tax. This is so because imposing taxes on LPG would mean additional burden, which shall ulti-mately be shouldered by the consum-ing public.

More important though, the definition of “petroleum products” includes LPG (Republic Act 8479). Since Section 133 (h) of the LGC is very clear that it is beyond the power of LGus to impose any kind of tax on petroleum products and, the fact that LPG is a petroleum prod-uct, sales of LPG should, likewise, be benefited by the decision in G.R. 187631, July 8, 2015.

The limitation on the taxing power of LGus is clearly defined in the law and without any qualifica-tion. LGus should adhere to this pronouncement and restrain them-selves from levying taxes on petro-leum products of any kind.

The author is a senior partner of Du-Baladad and Associates Law Offices, a member-firm of World Tax Services Alliance.

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific mat-ter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a pro-fessional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at [email protected] or call 403-2001 local 310.

The giant is sick

In recent years, China made every effort to transform itself from being a wide-scale factory of low-priced con-sumer products to the most vibrant su-perpower of the world.  The “Made in China”  mark is conspicuous in virtually every piece of clothing,  house furnish-ing,  gadget, food product, or toy that we buy anywhere.  While the yuan will de-termine the value of China’s goods in the international market,  we are all aware that the salaries of Chinese workers are increasing, the price of raw materials, logistical and transport costs are, like-wise, escalating  and may have a nega-tive competitive effect on its products.   

China’s July exports fell about 8 per-cent compared to year-ago figures, and its growth appears to be slower than

usual. The lower yuan value will also compel  other Asian countries to compete even harder. Certainly, when something goes wrong in the biggest economy in Asia, the ripple effects are felt almost instantaneously all around.

 Negative regional impact and paranoiaIN the Philippines, the stock market fell 487.97 points—a huge decline in just one day and closed at 6,791.01—ultimately  resulting to a year-to-date loss of almost 6 percent. Philippine Stock exchange President Hans B. Sicat said the P764 bil-lion in market capitalization have been wiped out, and the market’s entire gains in 2015 totally erased.  The same effect is being felt in Malaysia, Korea, Japan,

some parts of europe and the uS, where the Federal Reserve is planning to tight-en interest rates.  Investors are  seriously worried, and some financial analysts are wary of a looming currency war,  know-ing that weaker exchange rates could lead to  another devastating Asian economic crisis.  Back in the early 1990s,  Asia was considered the most attractive place to invest. However,  this  favorable condi-tion did not last long with China’s de-valuation move years ago.   That devalu-ation moved other central banks around the world to devalue their  own curren-cies to help their own exporters and to prevent capital outflows. Similarly, the  commodities markets were impacted too because of the softening  demand from China. The result was a deep recession and economic downturn.

 No need to panicWILL this recent event lead to another regional financial crisis? There is al-ways that possibility, but present-day realities would tend to show that Asian economies are now stronger and more resilient to events such as these.  Most of the countries in the region now en-joy strong fiscal conditions, robust cur-rent account balances,   less exposure to hot money inflows, and safe and sound foreign-exchange reserves. Finally,  lo-cal currencies less tied to the dollar  can better cushion the negative effects of

the yuan devaluation. But there appears to be neither cogent

reason to overextend the analyses nor  overreact to the  market plunge.  There is no imperative to join the currency war and deflate the peso in order to compete.  our economic planners are confident that the country’s strong macroeconomic  fundamentals will see us through.  eco-nomic growth will continue as increased spending is expected, what with the forthcoming elections.  our peso is still within the middle range of the regional currency volatility rate per our central bank. All financial indications show that the market will recover and return to its normal state. However, we should not be too comfortable.  our government must always be prepared for any eventuality, as China’s latest decision is apparently the biggest devaluation in 20 years and Asia has always been dependent on Chi-na.  We must monitor very closely the unfair trade advantages brought about by currency manipulation activities of other countries.

our traditional sources of growth—high domestic consumption, government spending, overseas Filipino workers re-mittances and huge investments in the property,  manufacturing, business-process outsourcing and  the services sectors must be protected and further enhanced if only to save us from the possible domino effect of the yuan’s  fall.

TAx lAw for BuSineSSfulvio D. Dawilan

By William PesekBloomberg View

oN the way to remaking China’s economy, President  Xi Jin-ping has hit many roadblocks:

vested interests, a change-averse Com-munist Party, local officials accustomed to the status quo. Who knew the real barrier would be foreign investors?

For years, the world has called on China to loosen its grip on the yuan, drop its arbitrary growth targets, allow stocks to fall, attack corruption and let reckless borrowers suffer losses. But whenever Beijing has taken any of these steps, global investors have responded with fear and trembling.

Wall Street’s sudden turn for the worse doesn’t have anything to do with China’s economic fundamentals. News emerged last Friday that China’s manufacturing activity had fallen to a six-year low—but that was entirely

consistent with reams of recent data showing weak industrial production, retail sales, inflation and rental rates. Investors can’t be shocked to hear that China’s 7-percent  growth  rate in the first six months of 2015 was the slow-est in six years.

The real trigger for market turmoil was China’s August 11 devaluation. But China shouldn’t be blamed for in-vestors’ hypocritical response. A more market-determined exchange rate had long topped the China wish list of every-one from uS President Barack obama to the International Monetary Fund (IMF) to London hedge funds. When China obliged, markets succumbed to panic. The same goes for China’s re-cent decision to allow market forces to drive down the  Shanghai Composite Index  (down a combined 15 percent on Monday and Tuesday).

It’s true that China is a pretty dis-mal communicator. “Markets,” says

economist Arthur Kroeber of GaveKal Dragonomics, “trade as much on policy signals as on economic reality, and there has clearly been a breakdown of com-munication between Beijing and the rest of the world.” But it was still clear enough that Beijing’s policy-makers weren’t really panicking—if they were, their 3.1-percent devaluation would’ve been closer to Kazakhstan’s recent 20- percent drop.

China’s slowdown has been the most telegraphed by any major economy in de-cades. But as soon as Xi seemed sincere about making good on his rhetoric about a “new normal” and markets playing a “decisive role” in the economy, investors screamed for him to stop. Markets are sending a clear message to Xi’s govern-ment: More growth, less of this messy reform stuff.

Investors’ abandonment of nuance has left China in a bind. China’s obses-sion with global clout has been driving

its effort to get the yuan counted among the IMF’s five reserve currencies. Xi’s priority for the next 12 months can be summed up with three words: stability, stability, stability. So we shouldn’t be shocked if China responds to the recent market turmoil by shelving its reform efforts and clamping down more on the public’s personal freedoms. 

“What is increasingly apparent is that China’s leaders want the economic growth that capitalism produces, but without the downturns that come with it,” writes Richard Haass, president of the Council on Foreign Relations in a Project Syndicate op-ed. “They want the inno-vation that an open society generates, but without the intellectual freedom that defines it. Something has to give.”

With the vertiginous plunge in Shanghai shares and “Chinese crisis” headlines spanning the globe, Beijing has seen what happens when it cedes control to markets. It’s telling that

China waited until Tuesday—after it had already been blamed for crash-ing global markets—to cut  interest rates (for a fifth time since November) and relax banks’ reserve requirements.

By staging tantrums at the first sign of reform, investors are making it more difficult for Beijing to take steps toward becoming a more sustainable economy. Investors should stop treating China like a gargantuan, 1.3-billion-employee company with a duty to constantly sur-prise to the upside, and start showing a more nuanced appreciation for China’s situation.   If international financiers want China to accept the pros and cons of market forces, they should acknowl-edge that getting there will require pain-ful and destabilizing policy changes.

Nervous investors should start by taking a deep breath. If you think the Dow is a poor barometer of America’s long-term economic health, there’s little reason to treat the present value

of Shanghai shares as a meaningful indication of China’s economic future.

of course, there’s plenty of scope to criticize China on trade, piracy, human rights and pollution. But let’s remember how daunting its economic challenges are: It needs to shift growth engines from excessive investment and exports to services; confront giant state-owned enterprises that prefer the country’s nepotistic status quo; and deflate bub-bles in debt, stocks and property amid weak global growth. If investors were true to their capitalist commitments, they would admit Shanghai shares need to fall much further to match Chinese fundamentals. even after the recent bloodbath, Shanghai trades at 15 times earnings, almost twice the ratio in Hong Kong.

China has a long and treacherous road to travel. Xi’s job is precarious enough without impatient global inves-tors acting as backseat drivers.

Panicked markets need a timeout on China

DeCiSion TiMeAriel nepomuceno

A8

2ndFront PageBusinessMirror

www.businessmirror.com.phThursday, August 27, 2015

RESORTS WORLD MANILA MASTERS Asian Tour CEO Mike Kerr, Resorts World Manila COO Stephen Reilly and Manila Southwoods Golf and Country Club Chairman Bob Sobrepeña pose for a photo at the news conference for the Resorts World Manila Masters, the richest golf tournament in the Philippines, happening from November 19 to 22, with a $1-million prize pot. NONIE REYES

DOE may ditch e-trikesin next round of bidding

Denham, Nexif investing $200M in Asean

By Lenie Lectura 

THE Department of Energy (DOE) may scrap the planned auction for the second batch of

electric-powered tricycles (e-trikes) and possibly replace it with other types of electric vehicles, a top official of the agency said.

Denham Capital management Lp., a US private-equity company; and nexif Pte. Ltd., a power-investment

business, will work together to develop, finance, build and buy renewable and con-ventional power plants across Southeast asia. Denham and Singapore-based nexif will channel more than $200 million into clean energy and conventional power proj-ects across the region through a new plat-form called nexif energy, Denham said on Tuesday in a statement. For renewables it

will steer funds into wind, solar and hy-dropower in countries including the Phil-ippines, Vietnam, Indonesia, Bangladesh, Thailand and malaysia, Scott mackin, man-aging partner and copresident of Denham, said by e-mail. “Southeast asia has a tremendous need for new power generation, and we look forward to working with govern-ments, our partners and the region’s com-munities to provide electricity solutions that are both economical and reliable,”

Surender Singh, founder and co-CeO of nexif, said in the statement. The investors are seeking to exploit the thirst for clean energy in Southeast asia, as governments put in place incentives for power from green sources. The Philip-pines is seeking to get half of its energy from renewables by 2030 compared with about 34 percent in 2010. Thailand plans to increase clean-energy capacity to 19,635 megawatts in 2036, from 7,279 last year.

Bloomberg News

  “We are looking at it, if we will still pursue [its purchase]. It may no longer be e-trikes,” said DOE Officer in Charge Zenaida Monsada, who added that the next batch could in-clude jeepneys. The agency has just concluded the first batch of bidding for the sup-ply and delivery of 3,000 e-trikes.  Uzushio Electric Co. Ltd. of Japan and its local partner, BEMAC Elec-tric Transportation Philippines Inc., submitted a bid of P364.17 million. Its financial bid would still have to be cleared by the Asian Development Bank (ADB) before the contract is awarded to them. The e-trike project is a joint undertaking of the DOE and the ADB. The objective is to replace

some 100,000 gasoline-fed tri-cycles by 2017. The ADB will provide $300 mil-lion for the $504-million project. The government will fund $99 mil-lion, while $105 million will come from the Clean Technology Fund. The e-trike project aims to pro-mote sustainable transport; ad-dress the increasing carbon emis-sions in major cities; and reduce oil dependence of the local transport sector. The project also aims to transform the public tricycle sec-tor and jump-start a new industry in the transport sector. The DOE was earlier looking at another round of bidding for 17,000 e-trikes within the year. However, Monsada said the

agency has raised concern on the bid price submitted by Uzushio. “Right now, [Uzushio’s bid] is being evaluated. Their bid exceeds the market price, so what’s hap-pening now is that there are ongo-ing negotiations to possibly bring down the cost of the lone bidder,” Monsada said. Besides, Monsada said, there may not be enough interested takers if the agency is to conduct another round of e-trike bidding. “We may order many, and yet no one will avail. Besides, batteries for e-trikes are expensive.” She said, however, that this con-cern must be shared with the Palace and cleared by the National Econo-mic and Development Authority. “It’s not only the DOE that will decide. It will be Malacañang first, followed by other agencies. Mean-time, it is still being evaluated. We are still negotiating with the bidder and reviewing if another auction is possible,” Monsada said. The first batch of e-trikes is slated to be rolled out in the Na-tional Capital Region and Regions 4-A and 4-B. The Land Bank of the Philippines will serve as the conduit of the ADB, and will collect and repay the mul-tilateral lending institution for the deployment of the e-trikes.