By Lenie Lectura

The Philippine electricity Mar-ket Corp. (PeMC) on Friday bared a readiness to adminis-

ter the trading of renewable energy (Re) in the Wholesale electricity Spot Market (WeSM). PeMC operates the electricity spot market, which is the central-ized venue for buyers and sellers to trade electricity as a commodity, and where prices are based on actual use and availability.

“PeMC has been relentless in realizing its mandates under the Re Act, and we have expressly lent our support through various stake-holder events, such as the WeSM Lesson Series and the Re confer-ence 2014,” PeMC President Me-linda Ocampo said. Since 2012 the PeMC has worked on the appropriate frame-work for the implementation of so-called must dispatch and prior-ity dispatch of Re resources. This was in accord with the intent of

WeSM rules encouraging the use of renewable sources of energy, the PeMC added. Pursuant to Re Act of 2008, all intermittent resources and Feed-in-Tariff (FiT)-qualified resources are entitled to must dispatch and pri-ority dispatch, respectively, subject to the issuance of qualification and registration guidelines. This means that the eligible Re resources, as identified under the Re Act, are given preference in the dispatch schedule, with the remain-

ing obligation of these resources to submit their projected outputs. As a consequence of the preferen-tial dispatch, eligible Re resources are given priority to inject to the grid as price-takers displacing expensive fu-els, which could result in lower prices in the spot market as observed by other power exchanges. Re resources include biomass, solar, wind, geothermal, ocean en-ergy and hydro.   The Department of energy (DOe)

PESO ExchangE ratES n US 44.3960 n jaPan 0.3732 n UK 68.3343 n hK 5.7261 n chIna 7.1086 n SIngaPOrE 32.7380 n aUStralIa 34.3888 n EU 50.6336 n SaUDI arabIa 11.8342 Source: BSP (13 February 2015)

See “R.E. capacity,” A8

www.businessmirror.com.ph n Tuesday, November 18, 2014 Vol. 10 No. 40 P25.00 nationwide | 6 sections 28 pages | 7 days a weekn saturday, February 14, 2015 Vol. 10 No. 128

A broader look at today’s businessBusinessMirrorthrEE-tImE

rOtary clUb Of manIla jOUrnalISm awarDEE2006, 2010, 2012U.n. mEDIa awarD 2008

PEmc all set for rE capacity integration to wESm

Tetangco says BSP can hold rate for most part of 2015

OIl-PrIcE UncErtaInty, mInImal DEflatIOnary rISKS wEIghED PalacE fIrm On rUlES-baSED SOlUtIOn tO EncrOachmEnt Of chIna On wESt Phl SEa

StUDy: wOrlD DUmPS 8.8m tOnS Of PlaStIc IntO OcEanSSAN JOSe, California—each

year about 8.8 million tons of plastic ends up in the world

oceans, a quantity much higher than previous estimates, according to a new study that tracked marine debris from its source. That’s the equivalent of five grocery bags full of plastic de-bris dotting each foot of coastline around the world, said study lead author Jenna Jambeck, an envi-ronment engineering professor at

the University of Georgia. And if the biggest polluters, mostly developing Asian countries, don’t clean up how they throw stuff away, Jambeck projects that by 2025 the total accumulated plastic trash in the oceans will reach around 170 million tons. That’s based on popu-lation trends and continued waste-management disposal problems, although there may be some early signs of change, she said.

1 billioN risiNg with purple ribbons on their wrists, more than 3,000 students, teachers and nuns from the Catholic-run saint scholastica’s College in Manila flash the No. 1 sign, as they dance at their quadrangle to take part in the global campaign to end violence against women and girls, dubbed one billion rising, on Friday. AP/Bullit MArquez

By Bianca Cuaresma

The Philippine central bank can hold its benchmark interest rate for most of 2015, even as a lower

inflation forecast gives policy-makers more room to maneuver, Bangko Sentral ng Pilipinas (BSP)Governor Amando M. Tetangco Jr. said.

“If things remain as they are—that is, inflation expectations are well anchored; domestic demand contin-ues to be resilient; oil prices remain low, but not too volatile; and Fed [US Federal Reserve] normalization is orderly—I think we can keep rates steady for the most part of 2015,” Tetangco said in a phone interview with Rishaad Salamat on Bloomberg Television from Manila on Friday. The BSP held its benchmark at 4 percent on February 12, and cut inflation forecasts for this year and next. The central bank will watch for Continued on A2

By Butch Fernandez

MALACAñANG said on Friday the Philippines is sticking to its posi-

tion favoring a “rules-based ap-proach” in resolving the dispute with China over certain islands in the West Philippine Sea. Communications Secretary herminio B. Coloma Jr. made the clarification in the wake of recent reports that China, which is locked in territorial disputes with its neighbors, has been “flex-ing its muscles and preparing for military conflict in Asia.” Sought for comment on US

See “West PHL Sea,” A8

Continued on A8

Navy Pacific Fleet intelligence re-ports confirming ongoing Chinese reclamation work in the Mischief Reef within the Philippines’s ex-clusive economic zone, Coloma said the government remains unfazed and awaits action on its protest before the UN Arbitral Tribunal in The hague. “The Philippines is firm in its position on the need for the rules-based approach to prevail over any discussion on the West Philip-pine Sea or the South China Sea,” Coloma told Palace reporters at a briefing on Friday.

the possible effects of sustained low crude prices on global growth and any risk of a delayed increase in US interest rates because of cheap oil, Tetangco said. While the inflation outlook gives policy-makers more room, firm de-mand, uncertainty over oil prices and minimal deflationary risk are being considered, Tetangco said, when asked if there’s more room to ease monetary policy. “Real lending rates in the Philippines are the third lowest in the region,” he said.

SUNRISE SUNSET

FULL MOON6:21 AM 6:00 PM

MOONRISEMOONSET

1:19 PM 1:33 AM

TODAY’S WEATHERMETROMANILA

LAOAG

BAGUIO

SBMA/CLARK

TAGAYTAY

LEGAZPI

PUERTOPRINCESA

ILOILO/BACOLOD

TUGUEGARAO

METROCEBU

CAGAYANDE ORO

METRODAVAO

ZAMBOANGA

TACLOBAN

3-DAYEXTENDEDFORECAST

3-DAYEXTENDEDFORECAST

CELEBES SEA

LEGAZPI CITY24 – 29°C

TACLOBAN CITY23 – 30°C

CAGAYAN DE ORO CITY

METRO DAVAO24 – 32°C

ZAMBOANGA CITY23 – 34°C

PHILI

PPIN

E ARE

A OF R

ESPO

NSIB

ILITY

(PAR

)

SABAH

PUERTO PRINCESA CITY 23 – 31°C METRO CEBU

23 – 30°C

ILOILO/BACOLOD

24 – 30°C

22– 30°C

23 – 31°C 24 – 31°C 24 – 31°C

23 – 30°C 24 – 30°C 24 – 31°C

21 – 31°C 22 – 31°C 23 – 31°C

24 – 33°C 24 – 33°C 25 – 34°C

23 – 33°C 24 – 34°C 24 – 35°C

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

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM

on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

@PanahonTV

FEBRUARY 14, 2015 | SATURDAY

HIGH TIDEMANILA

SOUTH HARBOR

LOW TIDE

1:55 AM0.09 METER

TUGUEGARAO CITY 18 – 27°C

LAOAG CITY 19 – 29°C

TAGAYTAY CITY 21 – 28°C

SBMA/CLARK 21 – 30°C

22 – 32°C 22 – 32°C 23 – 32°C

19 – 28°C 19 – 29°C 19 – 28°C

18 – 30°C 19 – 30°C 19 – 30°C

13 – 22°C 13 – 22°C 12 – 22°C

20 – 29°C 21 – 29°C 21 – 29°C

24 – 30°23 – 29°C 24 – 30°C

23 – 32°C 24 – 32°C

21 – 31°C 22 – 32°C

24 – 31°C23 – 31°C 24 – 32°C

Partly cloudy to at times cloudy withrain showers and/or thunderstorms

Cloudy to at times cloudy with rain showersand/or thunderstorms

NEW MOON

7:47 AMFEB 19

11:50 AMFEB 12

BAGUIO CITY13 – 21°C

24 – 32°C

5:36 PM0.88 METER

FEB 15SUNDAY

FEB 16MONDAY

FEB 17TUESDAY

FEB 15SUNDAY

FEB 16MONDAY

FEB 17TUESDAY

22 – 31°C

Light rains

Partly cloudy to at times cloudywith rainshowers

WEAK NORTHEAST MONSOON AFFECTING THE EASTERN SECTION OF LUZON.(AS OF FEBRUARY 13, 5:00 PM)

METRO MANILA23 – 31°C

Northeast Monsoon locally known as “Amihan”. It affectsthe eastern portions of the country. It is cold and dry;

characterized by widespread cloudiness with rain showers.

Kris. . . Continued from A8

BusinessMirror news@businessmirror.com.ph Saturday, February 14, 2015A2

News “We kept rates steady because we believe that this is consistent with a symmetric inflation targeting approach. We felt that we had room to wait for additional data to see if the lower end of our target range, for instance, will be breached for a persistent period.” The Philippine economy expanded 6.9 per-cent in the three months through December from a year earlier, the fastest in five quarters.

Consumer prices rose 2.4 percent in January from a year earlier, the slowest pace since Au-gust 2013. A few days earlier, analysts at DBS said the sharp moderation of inflation seen in the last quarter of 2014 and again in January this year helped prevent the central bank from raising the policy rates thus far this year. But the BSP remains wary of such events as a sudden reversal of oil prices, as some ex-perts predict, and, as a result, the monetary authorities do not favor cutting interest rates

so soon this year, the regional lender said.   “The rather sharp moderation in the con-sumer price index inflation is the reason the BSP is reluctant to raise its key policy rates for now,” DBS Bank said.  Inflation has trended downward since its peak in mid-2014, at 4.9 percent. Starting last September inflation has effectively been managed and brought down by the central bank, in large part because oil prices have retreated in the international markets. 

The Philippine Statistics Authority only recently reported that inflation, or the rate of change in prices, averaged 2.4 percent in January.  Unlike other central banks in the region, however, the BSP was not seen to cut the policy rates just yet, according to such other analysts as those at JPMorgan, for instance. “Indeed, we remain of the view that the central bank may actually prefer to tighten its policy further in the coming sessions,” the DBS Bank said. “The recent uptick in global

crude-oil price may lift CPI inflation slightly higher in the coming months,” according to DBS Bank, quickly adding that the country is still “definitely far” from the 4.5-percent trend seen in mid-2014, when the BSP stepped up on its monetary-policy normalization. The central bank adopted a low inflation target for this year of 2 percent to 4 percent, from year ago of 3 percent to 5 percent, in recognition of the moderating pressure on prices as a whole. With Bloomberg News

Tetangco says BSP can hold rate for most part of 2015 Continued from A1

The awards, he added, “underscores the distinct Filipino brand of warm hos-pitality that marks our culture of tourism.” Dalimag, an awardee in the individual cat-egory, is a college student who has been volunteering his services as a tour guide around the Callao Caves in Cagayan, ac-cording to a brief from the DOT. Starting at a very young age, Dalimag has helped boost the prov-ince’s local tourism by taking his guid-ing responsibilities to heart, which has earned him the respect and commen-dation from various people and even the media. Adrao, the other awardee in the indi-vidual category, is a licensed butanding (whale shark) interaction officer and a dive master in Donsol, Sorsogon. In addition to advocating safe and environment-friendly diving practices, “Adrao represents a Filipino tourism frontliner who goes beyond the call of duty to save the lives of an Australian couple who went adrift in the rough seas while diving due to inclement weather,” the DOT said. Media awardee Arellano’s local TV show called Biyahe ni Drew, features fun travel adventures in different Philippine

destinations every week. Known for his quirky and entertaining brand of host-ing, Arellano (2,510 votes) successfully embodies the “It’s more Fun in the Phil-ippines” concept. Blogger Diaz, another media awardee, garnered 1,413 votes. Awardees received trophies and med-als, as well as gifts from program partners: a pre-loaded More Fun Prepaid card from the Bank of the Philippine Islands; schol-arship from the Technical Education and Skills Development Authority; phones and tablets from MyPhone; and a kabu-hayan (livelihood) package from Duty Free Philippines. The Albay region, represented by Salceda, will also receive a P1-million grant from the DOT to implement more tourism projects in the form of train-ing programs, a livelihood project, or a product-development or enhance-ment initiative. According to the DOT, Salceda led the Albay region’s phenomenal growth in tourism as it rose from the ruins of di-sasters that stunted the province for de-cades. “He has successfully implemented a comprehensive tourism work program in Albay, bringing to the fore various regulations and investment projects to

achieve significant tourism develop-ment,” the DOT added. In his acceptance speech, the governor praised his constituents, “the warm people of Albay, the real star of Philippine tour-ism.” The region attracted 339,000 foreign visitors in 2013, over a threefold increase from only 8,700 in 2007. The region, he said, has managed to turn many negatives, i.e., volcanic eruption, typhoons, etc. into positives, by investing in environmental projects, culture, culinary education, events, the people, institutions, political harmony, destinations, infrastructure to make these same destinations accessible, as well as forging strategic alliances among Albay provinces which could be sold as tourism blocs. Salceda underscord the importance of social media as a marketing tool for tour-ism. “I personally manage my [Facebook] account with 120,000 followers and 5,000 friends, many of whom admittedly I also don’t know. But, my FB-linked Twitter serves as a counter, 9,736 posts in four months, 75 percent of them are about touristic elements of Albay resorts, desti-nations, hotels and events. And our most ‘liked’ are touristic posts kasi, ‘Maganda,

masaya, masarap sa Albay.’” Tourism Star Philippines also marks a significant milestone for the agency, as it is part of the full implementation of the DOT’s National Tourism Develop-ment Plan, which leverages on public-private sector partnerships to improve competitiveness of tourism facilities and services, capacitate local government units, ensure sustainable tourism devel-opment and initiate focused marketing and promotions. “Philippine tourism is undoubtedly the fastest-growing industry in the coun-try, taking on a significant role in our economy,” the DOT chief said. “We believe that we owe this tremendous growth to our people. Without them, our destina-tions would only be a mere landscape. It is our people that give these beautiful destinations life and meaning. And the Tourism Star Program honors these in-dividuals who truly make it more fun in the Philippines.” He added, the awards “is a powerful inspiration for anyone who wants to do well in the tourism industry.” The DOT aims to attract 10 million foreign visitors and generate $8 bil-lion (P360 billion) in tourism receipts

by 2016, when President Aquino steps down from office. Also, some 7.4 million people are targeted to be employed by that year. Jimenez explained, of the nominees received from February to June 2014, the DOT implemented a rigorous selection process for those who demonstrated the strongest and deepest commitment to promote the country’s tourism in their own ways. Documents from the DOT indicated that a total of 45 nominations were re-ceived. Based on the write-ups submitted, 30 were prescreened and six were short-listed for consideration by the final level of screening. For the Individual Category, nomina-tions were received through the program web site (http://tourismstar.ph) and through drop boxes located at domestic airport ter-minals nationwide. Meanwhile, local tour-ism councils nominated their mayors or governors for the LCE Category by submit-ting the completely filled out nomination form with the documentary requirements to concerned DOT regional offices. Nominations for the Media Category, which was added two months after the launch, were solicited from tourism and travel associations nationwide.

After the screening process, a final evaluation was conducted by the TSP Screening Committee composed of rep-resentatives from the DOT’s Office of the Undersecretary for Tourism Regulation, Coordination, and Resource Generation and Office of Tourism Standards and Regulation, as well as the Development Academy of the Philippines, one of the program’s institutional partners. All submitted documentary requirements were validated through the help of the DOT regional offices and the local tourism offices. For the LCE category, documents were rated using the following criteria: Institu-tional, promotions, planning and product development, regulatory, investments, and centerpiece projects with additional points in consideration of their support to DOT advocacies. Media nominees, on the other hand, were chosen based on the votes they received through online voting; content and substance and relevance of work to the Philippine tourism industry; impact and significant contribution to the “It’s More Fun in the Philippines” campaign; creativity and uniqueness of shows/ ar-ticles and information presented.

A BusinessMirror Special Feature A3www.businessmirror.com.ph Saturday, February 14, 2015

alentine’s Day

A seductive Forbidden Flower Col-lection that turns on the heat for Valentine. These are some of the new things to love at The Body Shop as it introduces its Drops of Youth, Red Musk Fragrance, and Limited Edi-tion Forbidden Flower collections. Drops of Youth, which is made from edelweiss flower stem cells sourced from the Alps, replenishes your skin in the most natural way. Left over-night without washing off, the light-

weight pliable mask moulds itself like a second skin. In the morning, skin feels smooth, hydrated, and pumped; and looks younger and fresher. Red Musk, The Body Shop’s most unconventional scent to date, breaks the rules by turning up the heat on the codes of feminine fra-grance. This all-spice fragrance com-bines the sharpness of pepper, the warmth of cinnamon, and the soft-ness of tobacco.

NEW THINGS TO LOVE AT THE BODY SHOPAn overnight mask that

helps your skin bounce back to youth. A fragrance

that changes the rules by using the sensuality and warmth of spices blended with musk to approach femininity differently.

The Limited Edition Forbidden Flower collection lavishes your skin a most enticing body care and fragrance line inspired by the poppy flower. Known for its values about pro-tecting the planet, The Body Shop products are never tested on animals thus making a policy on Animal Testing. While these products also carry a value on social change, The Body Shop has a Commu-nity Fair Trade (CFT) pro-gram, where high-quality natural ingredients are sourced out from the four corners of the globe to bring benefits to smallhold-ers and artisans. The Drops of Youth and Red Musk collections are available at The Body Shop stores nationwide, while Forbidden Flower Collection is available at selected The Body Shop branches. All SM Advantage Card mem-bers can now earn and redeem points in all The Body Shop stores.

Drops of Youth BouncY sleeping Mask is designed to be left on overnight without washing off. the lightweight, pliable mask molds itself like a second skin, making skin look younger and fresher.

the liMiteD eDition forBiDDen flower collection. inspired by the poppy flower, the eau De toilette blends captivating spices, seductive florals, and woody notes for a desirable, indulgent fragrance. for instant skin gratification, envelop yourself in the soap-free shower gel with a sensual floral scent; and indulge in the Body lotion that leaves your skin sensually silky.

Drops of Youth wonDerBlur is a skin smoother that reduce fine lines and pores for an even, flawless finish.

the reD Musk fragrance collection. “i wanted to create a fragrance that wasn’t the typical “girly girl” scent. i wanted to change the rules of fragrance. instead, i used the sensuality and the warmth of spices blended with musk to approach femininity differently”, says corinne cachen, Master perfumer.

forBiDDen flower BoDY Butter gives your skin the pleasure of pure potent moisture.

the red Musk Body wash blends spiced musk with hot notes of cinnamon and tobacco for a distinctly different cleansing experience. no flowers, just a bold blend of musk and spice

Three power generation companies (gencos) are facing the prospects of shelling out

hefty fines for alleged violation of the Wholesale electricity Spot Market (WeSM).

PSALM, 2 other gencos face fine for WESM rule violation

In a document released by WESM, it noted that the Power Sector As-sets and Liabilities Management (PSALM), Panasia Energy Inc. and Therma Mobile Inc. (TMO) will face financial penalties for breaching WESM trading rules.

The three firms have been charged by WESM operator, Philippine Elec-tricity Market Corp. (PEMC), due to their alleged withholding of gen-eration capacity from November to

December 2013, when the supposed to be implemented Manila Electric Co.’s (Meralco) generation charge spiked by P4.15 per kilowatthour (kWh). The power plants involved are PSALM’s 140-MW Casecnan and the 650 MW Malaya, along with Pa-nasia’s 540-MW Limay and TMO’s power barges.

The three companies have already requested for consideration, but have been denied by the Philippine

Electricity Market (PEM) Board in its recent Board meeting on Decem-ber 1, 2014.

Out of the three companies, Pa-nasia Energy Inc. and TMO were no-tably issued a noncompliance letter.

In August 2014 nine companies were initially charged with financial penalties for withholding power ca-pacity. However, the other remain-ing six companies were either repri-manded through a noncompliance letter or given consideration on the merit of their explanation.

Those issued with a noncompli-ance letters were AP Renewables Inc.’s 747-MW Makban, CIP II’s pow-er barges and Udenna Management’s Subic Diesel Power Plant.

Other companies, Trans-Asia, Strategic Power Development Corp. and Semirara Calaca, were recon-sidered last December 1 with their justifications.

On the sidelines of the WESM Lecture Series, PEMC President Me-linda Ocampo told reporters that the traders have the right to bring up the case to the Energy Regulatory Com-mission (ERC).

She stressed PEMC was indepen-dent to the investigation, since the surveillance committee at the WESM was not from them.

However, Ocampo noted that its responsibility is to ensure the WESM market rules are followed and not to investigate anticompetitive trading, adding it falls under the jurisdiction of the ERC.

On Wednesday TMO mother company, Aboitiz Power Corp., said it will pursue legal options regarding the P234.9-million penalty.

It explained TMO could have not dispatched its full capacity dur-ing that time due to transmission- facility constraints. PNA

Heart enterprise a lady stall owner in Manila selling flowers, stuffed toys and other items picks a good pose as she prepares for the onrush of customers and buyers a day before the universal celebration of Valentine’s Day. NoNie Reyes

By Claudeth M. Ciriaco Correspondent

ELEvEN persons who have had close contact with the Filipi-no female nurse who tested

positive for the Middle East Re-spiratory Syndrome-Corona virus (MERS-Cov) have already shown symptoms of the disease, the De-partment of Health (DOH) said.

“A total of 56 close contacts were located, and 11 of [them] manifested symptoms and were subsequently admitted at RITM (Research In-stitute for Tropical Medicine) on February 10 and 11. All 56 per-sons yielded a negative result in the first round of tests using nose-and throat-swab samples,” Acting Health Secretary Janette Garin said at a news briefing on Friday.

However, she said that the 11 symptomatic patients would still have to undergo another round of tests using sputum and rectal-swab samples. The 56 persons were not the copassengers of the nurse and her husband, who arrived in the country on February 1 onboard Sau-di Airlines Flight 860. 

Among the 220 passengers of the said flight, 92 have been located and have agreed to be tested.

Garin assured that the DOH is not letting its guard down in the fight against MERS-Cov, after the agency confirmed on Wednesday that a Filipino female nurse from Saudi was tested positive of the dreaded disease. Garin also said that the patient is currently pregnant.

“All ports of entry in the coun-try are being closely watched. We

strongly suggest that the Health Declaration Checklist should be properly and honestly filled out by all arriving passengers to prevent the entry of MERS-Cov and other infectious disease in the country,” Garin said, as she also called on the remaining passengers to contact the DOH hot line—(02)711-1001 or (02)711-1002—for them to be tested, as well.

“Ang tagumpay natin na masugpo ang MERS-Cov sa ating bansa ay nakasalalay sa pakikipagtulungan ng lahat sa ating gobyerno [Our success in controlling the spread of MERS-Cov in the country depends on ev-eryone working with the govern-ment]. We must remember that the DOH cannot do it alone,” she added.

Gar in assured that whi le MERS-Cov has a mortality of 30

percent and that human-to-hu-man transmission is not that easy. Hence, there is no reason to panic, she assured.

“However, we have to be on guard and be vigilant in watching out for flu-like and asthma-like symptoms among travelers coming from the Middle East region,” she said.

Garin also thanked San Pedro Mayor Lourdes Cataquis and Dr. Cecilia Evangelista, owner of Evan-gelista Hospital in Laguna, for their cooperation. Cataquis and Evange-lista, together with Dr. Julie Hall of the World Health Organization, joined the news briefing.

The Filipina nurse was admitted to the Evangelista Medical Specialty Center in San Pedro, Laguna, on February 2, after experiencing fever, cough and difficulty of breathing.

DOH calls for wider public support vs MErS-CoV

Valenzuela City Rep. Sherwin Gatchalian lauded the Depart-ment of Transportation and

Communications (DOTC) on Friday for its move to put in place a bus rapid-transit (BRT) system as part of the solu-tion to the worsening traffic problem in Metro Manila.

The project, which is set to be com-pleted by 2018, will use a dedicated lane with specific bus stations along Quirino Highway-to-Manila City Hall route, and will serve nearly 280,000 passengers a day using 300 buses. The buses will be provided by the private sector.

The Metro Manila BRT system is the second project of its kind in the country, next to Cebu’s P10.6-billion BRT project, funded by the World Bank through its Clean Technology Fund. Cebu’s BRT will use 176 environment-friendly buses for its 23-kilometer bus corridor with 33 sta-tions. It will become operational in 2017.

The BRT in the national Capital Re-gion (nCR) will have 32 stations for the system, which will be connected with the light Rail Transit line (lRT) 1, Metro Rail Transit (MRT) line 3 and Philippine national Railways (PnR). Waiting times are limited to two to five minutes.

Gatchalian, a senior vice chairman of the House Committee on Metro Ma-nila Development, said that the Metro Manila BRT system will not only help decongest the nCR but it will also bring economic gains.

“Building the BRT will provide an al-ternative to the lRT and MRT systems, thus helping members of the labor force increase their mobility and productivity. It will be a win-win situation for both workers, employers and the economy as a whole,” Gatchalian said.

“Fares are likely to be competitive, considering that commuters now have other options to be able to go to their re-spective workplaces. This will be a huge economic relief, especially to students and their parents,” he added.

no less than Transportation Secretary Joseph emilio a. abaya has been quoted as saying that BRTs are “game chang-ers,” and since “they will be granted as concessions, their riders will not be at the mercy of ‘colorum’ vehicles or trans-port strikes. They will be spared from

briefs lawmaker lauds

dotc’s brt initiative

Saturday, February 14, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

EconomyBusinessMirrorA4 news@businessmirror.com.ph

unnecessary disruptions and unsafe traveling conditions.”

In terms of expenses, the BRT is cost-effective while being able to deliver fast and high-quality transport services compared to a light-rail transit system because local labor and materials will be used for the project. The Manila BRT system is also affordable in terms of initial capital, operations and maintenance, so government funds can be used in other critical social and infrastructure projects.

Having such an alternative system is crucial as road congestion already costs asian economies around 2 percent to 5 percent of their gross domestic product yearly because of lost time and higher transport costs, according to the asian Development Bank (aDB).

Gatchalian personally observed as a delegate during his term as Valenzuela City mayor the Transmilenio BRT system in Bogotá, Colombia, whose success in-spired many cities to build their own BRTs.

The veterans solon said that even China, one of asia’s economic giants, recognized the significance of investing in such a transport system to the country and the economy. Through the aDB’s assistance, an urban transport system in lanzhou—the capital of Gansu province in China and one of the major points in the ancient Silk Road—was built, with a BRT as its centerpiece. lanzhou’s BRT, said the bank, “costs 10 times less and is quicker to construct.” Commuters pay the fare ahead of time at the BRT station before boarding the bus. PNA

THe Philippine air Force (PaF) has allo-cated P19.42 million for the acquisition of spare parts for its SIaI Marchetti SF-260 aircraft.

Bid opening and submission is sched-uled on Tuesday at the PaF Procurement Center Conference Room, Villamor air Base, Pasay City, at 9 a.m.

The spare parts are to ensure that the existing SF-260 fleet is airworthy and fly-able at all times.

The PaF is known to operate between 30 and 40 units of such aircraft.

The SF-260 is an Italian light aircraft marketed as an aerobatics and military trainer. PNA

p.a.f. earmarks p19m for acquisition of sf-260 spare parts

COMMERCIAL operations at the Mactan-Cebu International Airport (MCIA) will soon be im-

proved, after the government awarded a P48.73-million deal involving the in-stallation of a new navigational guid-ance system that helps pilots locate and land on the runway during bad weather and low visibility.

Civil Aviation Authority of the Phil-ippines (Caap) Director General William K. Hotchkiss lll said the deal to upgrade the  Doppler vHF Omni-Directional Radio Range and Distance Measuring Equipment (DvOR/DME) installed in Cebu way back in 1993  was awarded to the joint venture between  Philcox (Phils) Inc. and Indra Australia Pty. Ltd. 

Hotchkiss explained that the “DvOR/DME is a type of short-range radio-navigation system for aircraft that enables the plane to determine its position and stay on course by receiving radio signals transmitted by a network of fixed ground-radio beacons, with the receiver unit using radio frequencies in the very high-frequency band.”

The project includes incidental civil works, such as removal of ex-isting DvOR/DME system, under-ground power and data cables; in-stallation of new underground power and fiber-optic cables; miscellaneous grounding, electrical and mechani-cal as detailed on the drawings; and rehabilitation of existing Doppler vOR counterpoise and shelter sys-tem, among others.

MCIA is now being managed and maintained by  GMR-Megawide Cebu Airport Corp. Lorenz S. Marasigan

THE Land Transportation Franchising and Regulatory Board (LTFRB) has lauded the

socio-civic initiative of the opera-tors of several public utility jeepneys (PUJs) plying the Pateros-Guadalupe route in providing a convenient com-mute to several sectors in their route.

The project, aptly called “pink jeepney,” will be launched on valen-tine’s Day by the Guadalupe-Pateros Jeepney and Operators’ Association (Guacempajoda), with initially 14 PUJs volunteering to participate in the program that will provide trans-port only for women, children and persons with disabilities (PWDs) during rush hours.

With the theme “Para sa Interes ng Kababaihan, Kabataan at may Kapansanan,” the 14 PUJs painted in pink and with drivers wearing pink uniform will offer public-transport service, from 6 a.m. to 9 a.m. and from 4 p.m. to 7 p.m.

“Isang malaking tulong ang proyektong ito ng Guacempajoda upang magkaroon ng convenient na

transportasyon ang mga kababaihan, kabataan at may mga kapansanan, lalo na tuwing umaga at hapon sa kanilang pagpasok at pag-uwi sa kanilang mga pinapasukan at paara-lan,” LTFRB Chairman Winston Ginez said.

Guacempajoda representatives said the project is aimed at giving priority to the three sectors, which are often finding it difficult to com-mute from Pateros to Guadalupe during rush hours.

The initiative will be formally launched in Pateros Town Plaza on Saturday morning, to be attended by local government unit officials, representatives of Guacempajoda, National Anti-Powerty Commis-sion, women’s and youth sectors and PWDs, as well as officials of the LTFRB.

“Pink Jeepney is a noble program that we hope will serve as a model for other PUJ operators to replicate in their respective routes to better serve those sector that are having dif-ficulty commuting,” Ginez said. PNA

Meek as a laMb photo shows Hanz Cua, feng shui master, at a recent media briefing ahead of the celebration of the Chinese new Year on thursday. Cua said that 2015 is the Year of the Wooden sheep, which he predicts to be a relatively calm and sublime period. Roy DomiNgo

mcia operations seen to improve with dvor/dme facility upgrade

puJ operators, drivers launch ‘pink jeepneys’ for women, kids, pwds

President Aquino has signed into law last night the Congress-ap-proved  bill raising from P30,000 to P82,000 the ceiling on tax ex-emptions on workers’ year-end bonuses. Palace Communications secre-tary Herminio B. Coloma Jr. quoted executive secretary Paquito n. Ochoa Jr. as saying “the signed law will be transmitted to Congress shortly.” its enactment took more than one month after Congress passed the final version of the measure raising tax exemptions on employ-ees’ 13th-month pay and other year-end benefits. Coloma earlier told Palace re-porters that according to Ochoa, the enrolled bill on the upward adjustment of tax exemptions on bonuses was received by the Office of the President only last month. the principal author of the measure, sen. ralph recto, as-sured that both private and gov-ernment workers are going to finally enjoy the benefits, even as finance and revenue officials ear-lier sought to defer its implemen-tation, citing its advers effects on their revenue-collection targets. Under the newly enacted law, republic Act (rA) 10653 ad-justs to P82,000 the ceiling of the 13th-month pay and other benefits that shall be “excluded from the computation of gross income for purposes of income taxation.”

it specifically amends section 32 (B), Chapter Vi of the national inter-nal revenue Code (rA 8424) cover-ing exclusions from gross income. As enacted by the senate and House of representatives, the amended section listed the follow-ing items that shall not be included in gross income and shall be ex-empt from taxation, as follows:  “13th-Month Pay and Other Ben-efits.—Gross benefits received by officials and employees of public and private entities: Provided, how-ever, that the total exclusion under this subparagraph shall not exceed P82,000 which shall cover: Other benefits such as productivity incen-tives and Christmas bonus.”

it further provided that “every three years after the effectivity of this Act, the President of the Phil-ippines shall adjust the amount herein stated to its present value using the Consumer Price index, as published by the national sta-tistics Office.”

the new law also provided that the secretary of finance shall pro-mulgate the necessary rules and regulations for the faithful and ef-fective implementation of the pro-visions of this Act, adding that “the failure of the secretary of finance to promulgate the said rules and regu-lations shall not prevent the imple-mentation of this Act upon its effec-tivity” 15 days following its publica-tion in at least two newspapers of general circulation. Butch Fernandez

tHe Philippine peso ended the week sideways to a dollar at 44.28 from day-ago’s 44.37 partly buoyed by investors’ preference to put funds in the local equities market.

A trader said investors are still worried about the impact of the debt crisis in Greece and the politi-cal situation in Ukraine.

”But the peso took a breather on renewed interest in the local equities and new capital flows,” the trader said.

For the day, the local currency started the trade at 44.28, way bet-ter than the 44.42 on thursday.

it traded between 44.31 and 44.24 resulting to an average of 44.27. Volume of trade reached $459.8 million, lower than the previ-ous trading’s $640.2 million.

next week, the trader forecasts the currency pair to trade between 44.20 and 44.50. PNA

briefs aquino signs law

raising tax exemptions on year-end bonuses

peso ends weeks sideways vs u.s. dollar

Proposed $11-B Sangley Point Airport project hits major snag

By Lorenz S. Marasigan

The transportation depart-ment might be gunning to at least tender the $11-billion

Sangley Airport before the Aquino administration ends, but it seems that the odds are not in its favor.

While the government aims to receive by June the feasibility study for the aviation hub that will replace the Ninoy Aquino International Air-port (Naia), the Japan International Cooperation Agency (Jica) is not too confident that it could meet the state’s target. 

“We won’t be able to complete it in June. Our target is January or Febru-ary next year as it is very complex,” Jica Director for Southeast Asia and Pacific Department Jin Wakabayashi said in an interview late Thursday. “There are a lot of things to consider in this project like reclamation and target throughput.”

This means that the govern-ment’s undisclosed timetables for the project’s implementation would also be pushed back by more than half a year. 

With only a year and a half left be-fore President Aquino bows out from office, Transportation Secretary Jo-seph Emilio A. Abaya did not take the matter lightly, as in any other public-private partnership (PPP) deals.

The transport chief, who also sits as the president of the ruling Liberal Party, said his office will insist on the June 2015 deadline for the comple-tion of the study. 

He explained that the Japanese

consultancy firm’s feasibility study is key to the project’s needed approv-als from the various committees of the National Economic and Develop-ment Authority (Neda).

“We asked Jica to submit a study this June. Once we receive the full feasibility study of Jica, we will pro-ceed with the Neda Investment Co-ordination Committee and Board, then we will bid out a portion of it, depending on the study,” the Cabinet official replied. 

Despite the potential delay, Abaya said his office will no longer entertain unsolicited proposals from private groups, as these offers only attract unwanted rumors and issues.

“We will not do unsolicited pro-posals for this project anymore as the process sparks controversies. We are pushing an open, transpar-ent bidding for the project,” he said. 

Pursuing unsolicited proposals is tedious, as these offers, under law, should be subjected to a competitive dispute or more commonly known as a Swiss Challenge. A competitive challenge essentially allows other groups to dispute the initial proposal and offer a better deal. The original proponent, however, has the right

to match the highest offer to pursue with the project. 

Two groups have offered to pur-sue the construction of a $10-bil-lion airport to replace the aging Naia. Diversified conglomerate San Miguel Corp. proposed to con-struct a 1,600-hectare international gateway somewhere in the south of Metro Manila. The airport, which would have doubled the capacity of Naia, would have included the construction of a low-cost carrier terminal, a train system, and a dedi-cated tollway.

Solar Group-backed All-Asia Resources and Reclamation Corp., meanwhile, proposed to develop the Philippine Air Force’s Danilo Atienza Airbase and reclaim a portion of Ma-nila Bay to construct a world-class international airport that would ease the congestion at the Naia. 

While the Tieng-led firm wanted to pursue the deal itself, the food-to-infrastructure company’s desire was for the government to adopt its fea-sibility study. The group of business-man Ramon S. Ang, however, failed to officially present the proposal to the transportation department. 

The government is pursuing the

deal to modernize the aviation sector in the Philippines, particularly in its capital, Manila, where the four ter-minals of Naia are already bursting at their seams. 

Jica has predicted that this year would mark the start of the main gateway’s dark days.The airport is ex-pected to handle some 37.78 million passengers, way beyond its 30-mil-lion annual passenger capacity and a few notches up from its maximum capacity of 35 million passengers per year.

The Japanese consultants had proposed that the new international gateway be constructed in Sangely Point in Cavite to meet the parame-ters set by the transportation agency. The future airport will boast of four runways, which can handle 700,000 aircraft movements per year. It will have a rated capacity of 130 million passengers annually.

The deal is expected to be imple-mented under the government’s key infrastructure program, mixed with funding from official develop-ment assistance.

Commericial operations of the new airport should start by 2025, just about 10 years from now.

SEASIA Nectar Port Services Inc. (SNPSI), which will operate the first port services in Freeport

Area of Bataan (FAB), has started the construction of the 11.4-hect-are Mariveles Dry Bulk Terminal inside FAB.

SNPSI, a joint venture of Seasia Logistic Philippines Inc. and United Kingdom-based Nectar Group Ltd., will soon offer port services which will ease logistics to FAB locators as they can directly ship their products to Manila and outside the country.

SNPSI Chairman Ramon Atayde said the dry bulk terminal is designed to handle shipment of coal, clinker, silica sand and other cement raw materials, steel, fertilizer and other dry bulk cargo.

“We will ensure that the facil-ity will meet the clients’ standards and employ efficient and proper cargo handling methods to avoid any impact to the environment,” Atayde added.

The SNPSI’s dry bulk terminal will also help in easing the Manila port as it also intends to put up facilities

for warehousing, stevedoring, light-ering and towing of cargo.

In a previous interview, Authority of the Freeport Area of Bataan (Afab) Chairman Deogracias Custodio men-tioned that 99 percent of FAB loca-tors are utilizing the Manila port.

Moreover, the Mariveles Dry Bulk Terminal will have three phases.

The Phase 1 will involve a 5.9-hect-are port facility with a 247-meter quay with a 13.5-meter draft.

The first phase can accommodate two Panama vessels. It also has a minimum capacity to handle 3 mil-lion tons per year.

The second and third phases can also handle two Panama vessels.

“The presence of SNPSI would help in attracting more investors to locate at the FAB as costs of shipment would be reduced,” Custodio said.

“This project gives us confidence to market ourselves to other kind of industries worldwide. With this, we assure SNPSI that you will have the full support of the Afab,” he added.

The commercial operation of SNPSI’s port is set in 2016. PNA

Construction of dry-bulk terminal at free port area of bataan starts

BusinessMirror Saturday, February 14, 2015news@businessmirror.com.ph A5

Economy

Horse witH no name a horse-drawn carriage carrying assorted handicrafts on sale passes along Governor Pascual road in tinajeros, malabon, on Friday. the emergence of malls and bazaars had failed to put this street enterprise into extinction. Kevin de la Cruz

By Manuel T. CayonMindanao Bureau Chief   

            

DAVAO CITY—The Autonomous Region in Muslim Mindanao (ARMM) is set to implement this month a new government

program to help localities improve on their ca-pacity to deliver basic social services.

The program called Bangsamoro Regional Inclusive Development for Growth and Empow-erment would cover 45 barangays in 15 munici-palities in the five component provinces of the region with a budget of P120 million.

The coverage is for the initial phase of the implementation and would cover other areas that would qualify.

The municipalities are Balindong, Taraka and Lumba-Bayabao of Lanao del Sur province; Barira, Datu Anggal Midtimbang and Matanog of Maguindanao province; Sumisip, Tipo-Tipo and Tuburan in Basilan province; Pandami, Pa-rang and Talipao in Sulu province; and Sibutu, Simunul and Tandubas in Tawi-Tawi province.

The project would need P22 billion to cover all areas of the ARMM.

The program is a follow up to the ARMM

Social Fund Project (ASFP), which ended last year, and intended to complement the exist-ing  health, education, livelihood, peace and governance and synergy program of the regional government.

ARMM Gov. Mujiv Hataman said the pro-gram was patterned after the National Com-munity Driven Development Program (NCDDP) of the national government. The NCDDP covers 851 municipalities nationwide but excluded the ARMM in deference to its “unique culture and governance system.”

ARMM Executive Secretary Laisa Alamia said the program is aimed at improving “local gover-nance and strengthen partnership between and within the target communities.”

She added that the municipal development plan and performance of the mayors and key stakeholders of target municipalities would be used as basis for qualification to the program.

She said the erstwhile project management office of the ASFP was designated to handle the initial stage of the program, which includes training and capacity-building and technical assistance on the preparation of Municipal Development Plan.

New ARMM program aims to upgrade local governance

LiGHt Hearts Heart-shaped balloons are inflated with helium amid the expected influx of buyers in Dangwa, manila. Prices of Valentine-related items have increased before the big day. alYSa Salen

Saturday, February 14, 2015

OpinionBusinessMirrorA6

Plastics pollution: fooling the public

editorial

A disturbing story has been circulating for the last few days, generally under the title as reported by thomson reuters “World’s oceans clogged by millions of tons of plastic trash.” the story went on to report that “China was responsible for

the most ocean plastic pollution followed by indonesia, the Philippines, Vietnam, sri Lanka, thailand, Egypt, Malaysia, nigeria and bangladesh.”

upon seeing the Philippines mentioned, local press and media jumped up with headlines such as “PH among top nations dumping plastic into seas” and “PH among worst offenders in ocean pollution.”

Protecting the environment is a critical issue that we must all be serious about and express our concerns with action and not just words.

but the problem is that over the last 50 years, legitimate environmental problems have been clouded with both faulty research and biased reporting by the press and media. While the old adages of “sex sells” and “if it bleeds, it leads” has been part of the press and media for decades, now the press and media seeks readership with dramatic stories about supposed environmental degradation. if the truth is not ‘scary’ enough, then press and media seem to feel obligated to turn up the heat.

the stories are based on research from the university of California santa barbara’s national Center for Ecological Analysis and synthesis along with the Washington-based Ocean Conser-vancy published last week in science Magazine. the report tries to estimate the amount of waste plastic that is being dumped into the world’s oceans. but there is the problem.

bloomberg wrote “About 9.1 million metric tons of plastic is apt to flow into the oceans this year.” the globalpost.com said “A staggering 8 million metric tons of plastic pollution enter the oceans each year.”

the executive summary of the actual report said: “We calculate that 275 million metric tons (Mt) of plastic waste was generated in 192 coastal countries in 2010, with 4.8 to 12.7 million Mt entering the ocean.” While 8 and 9.1 are in the middle of the range, the range itself is huge. Any high school statistics student knows that when your top number is 2.6 times as large as your bottom figure, that is not a ‘scientific estimate; it is a guess.

Even naming the Philippines as the number three plastics polluter is somewhat of a farce. the pollution data is based on the amount of plastic products produced in a country and then an arbitrary percentage is assigned as to how much of that plastic might-note the word ‘might’- find its way into the oceans. the list of “polluters” was based on the number of people living within 50 miles of an ocean coastline therefore assuming that these people dump their plastics in the sea.

guess which large nation has the greatest ‘Coastline to land area ratio’ on the planet–the Philippines. And indonesia and PHL rank number 1 and 2 respectively for having the longest coastlines not facing the Arctic region like russia and Canada.

Pollution is everyone’s problem. but scare tactics like this based on faulty analysis serves no purpose to motivate and mobilize public action.

ALWAYS on the lookout for foreign commentary about the Philippines, it is somewhat rare to come across stories and analysis about the Philippine stock market. Rarer still is to

see something about the local market on the US financial news website, CNBC.

PSE foreign investment: More to come

Granted CNBC is not actual ‘news’ media in the traditional sense. Its pur-pose is to tell viewers that all is well and getting better with the US economy.

Viewers have been skeptical of CN-BC’s stock market analysis since its ex-perts were still calling the financial firm Bear Stearns strong buy a week before it went bankrupt. But CNBC is not always on the “Buy” side. They recommended a ‘sell’ on Hewlett Packard and six months and three days later, the stock price had gained 115 percent.

That is probably part of the reason that CNBC had its worst viewership since 1995 during 2014 with more people watching reruns of the television show “Walking Dead Season 2.”

However, yesterday the CNBC web-site featured “Shop ‘til you drop? Why Philippine shares can climb.”

For a moment I thought that this might have been written by a Filipino as the other news service do employ local

correspondents. However, this article actually has substance and forethought unlike most of what is pushed on the television station. Further, of course the quoted comments were all from Asian eq-uity analysts as the US financial experts can only find the Philippines on a map when the country is shown on television under a large typhoon.

The article begins by quoting Jibo Ma, an analyst at Japanese Daiwa Se-curities. “The Philippines stands out in the current environment of collapsing commodity prices, a strong US dollar and increasing capital outflows.” Daiwa has increased its recommended portfolio weighting for the market. That is what I have been saying for many months but it is nice to see someone else finally catch on to the reality of the Philippines.

But the rest of the analysis gets a bit confused. Jibo Ma says, “Consumer spending in the Philippines accounts for a full 84 percent of GDP (gross domestic

product).” The implication is that a high percentage of consumer spending ac-counting for the GDP is a bad thing. Yet if we were an export-oriented economy, then we would have all the economic growth problems countries like Japan, South Korea, Thailand and Malaysia are having.

Further, because of inward money flows from all sources including mer-chandize and service exports as well as remittances, PHL runs a strong current account surplus. Normally, countries which have a strong current account sur-plus have economies heavily dependent on exports revenues and weak domestic demand. The Philippines does not have that problem. Yes, remittances and out-sourcing are a vital part of the economy. But would it be better to be exporting iron ore, oil, rubber shoes, or computers to put food on our table?

PHL’s sources of capital inflows have been consistently growing for at least a decade. Merchandise and commodity exports can go from positive to negative like a yo-yo. Just ask Australia, Japan, or China about that.

It comes down to this. Should an economy depend on its growth selling to foreign nations or by selling to its own citizens? Certainly the Philippines needs more domestic manufacturing for domestic consumption. Unfortunately government policies make it sometimes easier and cheaper to import than to build our own ‘stuff’.

The CNBC article continues with “The market has already run higher, rising more than 30 percent since the

end of 2013.” Then it quotes Stephen Sheung, head of investment strategy at SHK Private saying “The fundamentals are solid. But they aren’t supporting those valuations (PSE Composite Index is trading at 22 times earnings). Shueng says he prefers the ‘cheaper’ markets of North Asia.

Isn’t North Asia home to Japan which has had flat or negative growth for 25 years and is expecting annual growth of less than 2 percent for the next two years? Didn’t South Korea just report 3.3 percent growth for 2014 and is expecting the same for 2015?

Maybe the PSE has every justifica-tion for these so-called high valuations. Shueng sounds like he has large buying positions in both So. Korea and Japan that he wants to ‘talk up’ higher.

But here is the big take away from the article. Foreign investment in the PSE is a minor afterthought with one-third of all Emerging Market investment funds hav-ing zero investment in PSE companies

Investment firm Morgan Stanley said in a note this week, “The Philippines has the potential to become a significant part of investors’ portfolios” because of the current small amount of participation by the foreign money.

If and when that happens, PSE 10,000 perhaps?

E-mail me at mangun@gmail.com. Visit my web site at www.mangunon-markets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

OUTSIDE THE BOXJohn Mangun

INDIA bulls are ecstatic. According to revised gross domestic product numbers released earlier this week, the country will expand 7.4 percent in the year through March–on par with rival

China. Never mind that most other indicators–from manufacturing to trade to corporate investment–seem to show that the economy is at best bottoming out, or that central banker Raghuram Rajan has himself expressed puzzlement over the revised figures. For optimists, India has once again reached that holy grail of emerging economies: “China-like” growth.

No, India isn’t growing like China

India has been here before, of course. So have dozens of other countries, from Brazil to Turkey to tiny Sri Lanka. At one point or another, all have posted growth rates above 8 percent, leading to predic-tions of a liftoff like the one that’s pow-ered China for more than three decades. In most cases, those dreams have fizzled out within a couple years. Weak funda-mentals, irrational investor exuberance and in some cases, credit or commod-ity busts quickly puncture fantasies of global dominance. By contrast, while its economy has begun to slow, China has grown an average of 8.5 percent for the last five years. Its Gini coefficient, a measure of a nation’s rich-poor gap, has improved in each of them.

Ironically, achieving China-like

growth is often the surest way to lose it. Leaders fall prey to hubris and com-placency, hyping all the factors that sup-posedly guarantee a long run at the top: young populations, abundant resources, the unwavering affection of investors. That overconfidence fosters drift and bad policy. Remember, during its first term, India’s previous Congress-led gov-ernment also topped 8 percent growth. During its second, it focused on shar-ing the wealth through huge transfer programs rather than opening India to foreign investment, reducing red tape and deregulating fossilized industries. Growth, according the old formulas, slid below five percent.

Officials from New Delhi to Manila should be learning from China not just

how to achieve high growth, but more importantly, how to sustain it. The main-land economy faces huge challenges of its own, of course. President Xi Jinping must shift growth engines away from exports and overinvestment toward services, as well as clean up Beijing’s notoriously corrupt political machine. But China has gotten right many of the elements critical to raising the quality of growth. Among them: running a current-account surplus, beating inflation, boosting pro-ductivity and taming politics.

China proves, for example, that it’s best for an emerging economy to be a net exporter of capital. India’s chronic deficits almost dragged the economy into a full-blown debt crisis in 2013. A more balanced set of government books would shield the economy from market turbulence should Europe crash or Fed-eral Reserve rate hikes unnerve inves-tors. Also, by moving surplus cash into financial assets of developed nations, China helps lower interest rates from Washington to Frankfurt and empowers Western consumers to buy more Chinese goods and create more Chinese jobs.

India must do better at attacking inflation that remains six times higher than China’s 0.8 percent rate. Chronic inflation means higher borrowing costs, reduced economic efficiency and greater hardship for the nation’s poor. Most of India’s price pressures derive from the supply side, which limits Rajan’s ability to lower rates. It’s up to Prime Minis-ter Narendra Modi to attack the graft, bureaucratic inefficiencies, overlap-

ping tax regimes and crumbling infra-structure that shackles India with high costs, even as most other nations in the region fret over the threat of deflation. Simply integrating India’s labyrinthine food markets would improve the lives of hundreds of millions of struggling households.

Raising productivity would both help lower inflation and improve India’s standing as a manufacturing hub. As of 2014, India’s working-age population was more than 800 million–analogous to China’s in 1993. And estimates have it swelling by about 200 million over the next two decades. But China’s manufac-turing floors are about 1.6 times more productive than India’s. Modi needs to boost investments in education and new technology and rework archaic labor laws if India is to narrow the gap. Otherwise, the country will undershoot in inward investment and fail to create decent jobs for all those new workers.

Finally, while I’m not joining the chorus of those who think India would benefit from a more authoritarian, “Chi-na-like” political system, greater clarity and predictability from the government would help Modi’s sales pitch. The gov-ernment’s scattershot policy decisions over the last decade–imposing retroac-tive taxes on foreign companies, scut-tling a World Trade Organization deal, repeatedly failing to implement reform pledges–continue to hover over the economy in 2015. Until they’re convinced Modi’s reforms will stick, investors will hesitate to jump into India.

HOM

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Saturday, February 14, 2015

OpinionA7BusinessMirroropinion@businessmirror.com.ph

Evangelii Gaudium

51st part

Dialogue between faith, reason and science

DIALOGUE between science and faith also belongs to the work of evangelization at the service of peace. Whereas positivism and scientism “refuse to admit the validity of

forms of knowledge other than those of the positive sciences,” the Church proposes another path, which calls for a synthesis between the responsible use of methods proper to the empirical sciences and other areas of knowledge such as philosophy, theology, as well as faith itself, which elevates us to the mystery transcending nature and human intelligence.

Faith is not fearful of reason; on the contrary, it seeks and trusts rea-son, since “the light of reason and the light of faith both come from God” and cannot contradict each other. Evangelization is attentive to sci-entific advances and wishes to shed on them the light of faith and the natural law so that they will remain respectful of the centrality and su-preme value of the human person at every stage of life. All of society can be enriched thanks to this dialogue, which opens up new horizons for thought and expands the possibili-ties of reason. This too is a path of harmony and peace.

The Church has no wish to hold back the marvellous progress of sci-ence. On the contrary, she rejoices

and even delights in acknowledg-ing the enormous potential that God has given to the human mind. Whenever the sciences—rigorously focused on their specific field of in-quiry—arrive at a conclusion which reason cannot refute, faith does not contradict it. Neither can believers claim that a scientific opinion which is attractive but not sufficiently veri-fied has the same weight as a dogma of faith. At times some scientists have exceeded the limits of their scientific competence by making certain statements or claims. But here the problem is not with reason itself, but with the promotion of a particular ideology which blocks the path to authentic, serene and productive dialogue.

Ecumenical dialogueCOMMITMENT to ecumenism

responds to the prayer of the Lord Jesus that “they may all be one” (John 17:21). The credibility of the Chris-tian message would be much greater if Christians could overcome their divisions and the Church could real-ize “the fullness of catholicity proper to her in those of her children who, though joined to her by baptism, are yet separated from full communion with her.” We must never forget that we are pilgrims journeying alongside one another. This means that we must have sincere trust in our fellow pil-grims, putting aside all suspicion or mistrust, and turn our gaze to what we are all seeking: the radiant peace of God’s face. Trusting others is an art and peace is an art. Jesus told us: “Blessed are the peacemakers” (Mat-thew 5:9). In taking up this task, also among ourselves, we fulfil the an-cient prophecy: “They shall beat their swords into ploughshares” (Isaias 2:4).

In this perspective, ecumenism can be seen as a contribution to the unity of the human family. At the Synod, the presence of the Patriarch of Constantinople, His Holiness Bar-tholomaios I, and the Archbishop of Canterbury, His Grace Rowan Wil-liams, was a true gift from God and a precious Christian witness.

Given the seriousness of the counter-witness of division among Christians, particularly in Asia and Africa, the search for paths to unity becomes all the more urgent. Mis-sionaries on those continents often mention the criticisms, complaints and ridicule to which the scandal of

divided Christians gives rise. If we concentrate on the convictions we share, and if we keep in mind the principle of the hierarchy of truths, we will be able to progress decidedly towards common expressions of proclamation, service and witness. The immense numbers of people who have not received the Gospel of Jesus Christ cannot leave us indifferent.

Consequently, commitment to a unity which helps them to accept Je-sus Christ can no longer be a matter of mere diplomacy or forced compli-ance, but rather an indispensable path to evangelization. Signs of division between Christians in countries rav-aged by violence add further causes of conflict on the part of those who should instead be a leaven of peace. How many important things unite us! If we really believe in the abundantly free working of the Holy Spirit, we can learn so much from one another!

It is not just about being better in-formed about others, but rather about reaping what the Spirit has sown in them, which is also meant to be a gift for us. To give but one example, in the dialogue with our Orthodox broth-ers and sisters, we Catholics have the opportunity to learn more about the meaning of episcopal collegiality and their experience of synodality. Through an exchange of gifts, the Spirit can lead us ever more fully into truth and goodness.

For comments, e-mail caritas_ma-nila@yahoo.com. For donations to Caritas Manila, call 563-9311. For inquiries, call 563-9308 or 563-9298. Fax: 563-9306.

SERVANT LEADERRev. Fr. Antonio Cecilio T. Pascual

DATAbASECecilio T. Arillo

By Jay AmbroseTribune News Service

IT is in constant, energetic motion, an endlessly useful marvel of ingenuity, a source of billions of pages of data and, if you want it, of depth and scholarly papers. It is perhaps the

foremost differentiating symbol of our era. It is the Internet, described by one student of communications as a development right up there with language itself, writing, the alphabet and the moveable-type printing press.

This research tool, this means of staying in touch with once-lost friends, of listening to great music, of getting map directions, of cost-less college courses, of exploring what philosophers make of time or finding whether a favorite ball team won the game tonight–how did its content get to be what it is?

In a word, it got to what it is because of freedom, because of

allowing entrepreneurs to open doors and inspired technologists to solve the unsolvable. We got to this because of millions of spir-ited souls in varied groups, insti-tutions, businesses and private homes saying here we come as long as it’s possible–and it was.

The government played a major role in creating the Internet, but then politicians stayed out of the

way–President Bill Clinton, for instance, said let’s regulate the least possible–thus allowing this miracle to blossom.

Now, however, we have people who propose to save the freedom that got us here by ending it. They are concerned that some of the Internet’s service providers won’t keep treating all users the same–something called net neutrality–and might even go so far as to prohibit websites they do not like.

The proffered administration solution is to make the Federal Communications Commission (FCC) an autocratic honcho that can smash the best of the Inter-net in a slew of ways not remotely available to all the providers put together.

Such a reign of error would be made possible by using the massive

powers of an 80-year-old commu-nications act to treat the Internet like a public utility.

The FCC could then control all kinds of business decisions that should be left to the market place, thereby, as one of dozens examples, quite possibly locking up grand innovative possibilities. A think tank says the FCC could also hit consumers with fees that could mount up to billions a year. What a treat, huh?

Instead, how about consider-ing two expert-noted facts that could provide as much regulation as actually needed with no threat of overkill: 1) Congress is consider-ing a simple, straightforward law that could erase the actual dangers without mishmash potentiality and 2) even minus that, the gov-ernment already has antitrust and

consumer-protection laws with which to greet any actual outrage.

Of course, the FCC chairman vows no overreaching, meaning he is vowing to swim against an oce-anic current in American history.

Back in the 1830s, a French-man named Alexis de Tocqueville earned lasting credit for his bril-l iance in analyzing America. Though mostly a hand-clapper, he presciently foresaw liberty-erod-ing threats, such as a government that would more or less gently try to keep us children forever. It would do this through “small, complicated, painstaking, uni-form rules,” through a system that “hinders, compromises, enervates, extinguishes, dazes.” It is here.

We call it the nanny state, but it is not always just a nanny. It is sometimes elevated through its

hundreds of thousands of page of over-eager regulations to the sta-tus of bullying behemoth.

You see the nanny side in rules pointed out by Heritage Founda-tion writers: restrictions on how many dogs a dog-walker can walk; how much water can be in your toilet; how much electric power is allowed in an oven clock.

You see the behemoth side in putting people in prisons for civil mistakes and regulations costing us a couple of trillion dollars a year according to some reputable economists.

You could see it again in a dra-matic diminishment of the In-ternet, a government-organized, virtual computer crash.

Jay Ambrose is an op-ed columnist for Tribune News Service.

The Mindanao problem: History, geography and demography

Part 2 of 4

THE Philippines is peopled by some 111 ethnic, linguistic, and cultural groups speaking 70 major languages and dialects. Despite variations in cultural and religious practices, it is

one coherent nation, organized into one secular and democratic state, with 100 million people (2010 official census), who share a common racial identity, moral concepts, and historical experiences, better known as Filipinos.

These Filipinos, of whatever reli-gious persuasions, enjoy equal rights and privileges under the Philippine Constitution. The separation of Church and State is part of its na-tional policies.

Geographically, the Philippines, with a total land area of 115,800 square miles, is divided into 17 re-gions comprising 80 provinces, 136 cities and 1,476 towns scattered in 7,150 islands from the Northern tip of Luzon, the central plains, and mountainous areas of the Visayas, and up to the Southwestern tip of Tawi-Tawi Province in Mindanao.

Luzon, with a contiguous land area of 41,754 square miles, is the biggest of the islands followed by landlocked Mindanao with 36,372 square miles, and the Visayas, with 37,674 uncontigous land area.

The people of Luzon are known by their ethnic identities. For example, those from the high and lowland provinces of Kalinga, Apayao, Abra, Mountain Province, Ilocos Norte, Ilocos Sur and Cagayan Valley are called Ilocanos and those from the central plains of the provinces of Pangasinan, Tarlac, Pampanga and Bulacan are respectively called Pan-gasinenses, Tarlakeños, Pampange-ños and Bulakeños.

Those from the Greater Manila Area are called Manilans; those from Bicol Region are called Bicol-anos; and those from the Visayas are called Warays, Ilongos and Ce-buanos. While those from the prov-inces of Sulu, Tawi-Tawi, Basilan, Zamboanga del Norte, Zamboanga del Sur, Maguindanao, South Cota-bato and Lanao provinces in South-western and Central Mindanao are called Samals, Tausogs, Bilaans, Chabacanos, Maguinadanaoans and Maranaos.

Mindanao has a population of 21 million. This population is com-monly classified into three ethnic-linguistic cultural minorities:

• The internal migrants, whose cultural origins lie in the northern islands of Luzon and the Visayas, number about 12.5 million. They are commonly known as “Christians” not because of religion, but because of their relative modern lifestyles.

• The indigenous cultural minori-ties, better known as “hill-tribes”, or “Lumads”, have their distinctive way of life, manner of dressing (with their women commonly known as “bare-breasted”), and a definite hierarchy of values. They number roughly 3.5 million.

• The Filipino communities who mostly live in coastal areas and follow Islam. These are divided into more than 15 communal groups with an estimated population of 5 million. They make up majority in four (Sulu, Basilan, Tawi-Tawi, Maguindanao and Lanao del Sur) of the 24 prov-inces and nine cities in Mindanao.

Islam came to the Philippines in the late 13th century and became a heritage of the entire Filipino nation. In fact, its preservation and enhance-ment, like the other minorities, con-stitute a national policy.

No moral, legal and religious justificationVIEWED from these demographic realities, there is no moral, legal and religious justification in calling these Filipinos as Muslims. Besides the conflict in Southwestern Mindanao, Sulu, and Tawi-Tawi is the result of historical inequities and misunder-standings. Colonization by Spain severed the basic unity of Filipinos and drove a serious wedge between the Filipinos of the North and the Filipinos of the South.

Colonization and the subsequent protracted struggle against it left a legacy of social, cultural, political, and economic iniquities. Colonial ad-ministrators and post-World War II politicians accorded a low priority to the development of Mindanao. This neglect prevented local citizens from learning the skill and acquiring the habits and frame of thought neces-sary for their personal upliftment and the region’s economic growth and development.

It is from this context that the conflict in Mindanao must be viewed with a high degree of fairness, accu-racy and understanding.

(Next Week: “The Mindanao Prob-lem: Complex problems; experimental solutions”)

Overregulation could ruin the Internet

He pointed out that the Philip-pine government is determined to pursue its protest and get a firm ruling on the case it filed against China’s encroachments of Philip-pine territories. “The government has raised the issue before the arbitral tribunal for settlement under United Na-tions Convention on the Law of the Sea,” he said. Coloma added, “We reiterated our position before the Asean and other international fora that the dispute be resolved based on the principles giving birth to the Code of Conduct [of Parties in the South

China Sea] in Asean more than 10 years ago.” The Palace official said the ef-forts led to a unified stand among concerned countries in Asean to support the adoption of a binding code of conduct governing all nations in the region. “Thereafter was formed a uni-fied position by countries under the Asean on the need to come up with a code of conduct binding all countries. That is why the govern-ment remains firm on what should happen to resolve the dispute at the South China Sea of the West Philip-pine Sea,” Coloma said.

A8

2ndFront PageBusinessMirror

www.businessmirror.com.phSaturday, February 14, 2015

UK biz group lists PHL investment opportunities

‘Hot’ money inflow rose to $592M in January–BSP

Other ‘stars’ beat out Kris in awards

Eco-Marathon Filipino students from different schools pose for a group photo as they prepare for the upcoming Shell Eco-Marathon asia, which will be joined by top universities around asia and the Middle East. the aim of the competition is to design, build and drive the most energy-efficient vehicles of the future. this year a total of 33 teams from 22 schools around the Philippines will be representing the country in Shell’s biggest mobility competition for students. ALYSA SALEN

By Catherine N. Pillas

The lord mayor of London, who is head of a delegation of United Kingdom-based financial

and trade professionals visiting the country, is prepared to exploit the many opportunities the Philippines has to offer, but called for a quick resolution of certain hurdles to the business environment that could harm its growth potential. “The world is coming to the Philippines, [and] this is appar-ent from its gross domestic prod-uct [GDP] figures. However, there will also be bottlenecks that will appear, if there isn’t some change. These bottlenecks might possibly come from infrastructure,” Lord Mayor of London Alan Yarrow told

reporters late Thursday. Yarrow is scheduled to meet with House Speaker Feliciano Bel-monte Jr., Senate President Frank-lin M. Drilon, Finance Secretary Cesar V. Purisima, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. and key officials of the Private-Public Partnership (PPP)

Center, as well as executives of top Philippine- and UK-based firms. Aside from infrastructure,  Yar-row said that an unpredictable tax regime and restrictions on the en-try of foreign professionals were also seen to impede the enthusiasm and interest of UK-based firms. “Equally, other issues, such as open-ing up the economy to international qualifications, because, as you grow, you need to have the right skill gaps filled, and we’re looking at accoun-tancy and law,” Yarrow quickly added. In the Philippines most laws regulating the various professions contain reciprocity provisions for foreign professionals. The foreign

chambers have said that, while there is no barrier disallowing foreign participation as enshrined in the Constitution, some provisions are administratively difficult to satisfy. The lord mayor, likewise, said there are a number of “blockages” in the Constitution that are discourag-ing interest in the area of mining and power generation. In any commercial dispute down the line, the speed of legal resolution is of critical importance to the for-eign business and trade community, as well, according to Yarrow. Despite the hurdles, he said that the country’s multibillion-peso in-frastructure buildup program PPP initiative is a prime area of coop-eration between the Philippines and the UK. “We are the most successful financial center in the world. We can support the Philippines for the next stage of its development. We can help in financing, project management and project design,” Yarrow said. “The Philippines has been focus-ing on the right elements of change, and these changes need to be sus-tained,” he added.

Yarrow said that there are a number

of “blockages” in the constitution that are discouraging

interest in the area of mining and power

generation.

By David Cagahastian

ForEIGN portfolio invest-ments (FPI) registered a net inflow of $592 million

in January, an improvement from December 2014’s net inflow totaling only $397 million, the Bangko Sentral ng Pilipinas (BSP) said on Friday. The inflow were traced to higher investments in so-called listed shares made possible by a top-up offering of a holding corporation’s shares, the sale of a universal bank’s and holding firm’s shares, and the sharply improved growth outlook for the country this year by the International Monetary Fund. The net inflow in January contrasted sharply against the net outflow of FPI in January 2014, brought about by the so-called tapering or the quantitative easing program of the US Federal reserve, still the world’s most influential central bank. The total FPI inflow in January 2015 amounted to $2.2 billion, higher by 16.1 percent than the level registered in December 2014. Total outflow of FPI during the month, meanwhile, amounted to $1.6 billion, resulting to net inflow of $592 million in January alone. Most of the inflow of FPI (82 percent) registered in January were made in stocks listed at the Philippine Stock Exchange (PSE), especially those of property companies, banks, holding firms, food, beverage and tobacco companies, and utilities firms. Net inflow from transactions on PSE-listed securities totaled $561 million. A total of 17.4 percent of the foreign portfolio investments were made in peso-denominated government securities, with the rest channeled to peso time deposits. Net inflow from investments in government securities amounted to $36 million. The top-5 investor-countries for the month of January included the United Kingdom, the US, Singapore, Switzerland and Luxembourg, which made up 85.5 percent of the total FPI in January. outflow, on the other hand, went mostly to the US, with 84.3 percent of the total outflow of $1.6 billion going there.

aims to triple the country’s rE generation, from the current installed capacity of just 5,438 megawatts (MW) to 15,304 MW by 2030.  The DoE has already streamlined the rE application process from two years down to just 45 days to ensure that rE developers and investors quickly breeze through the process. To promote the use of rE on a larger scale and to attract new investments for rE facilities, the government also relies on the FiT system. FiT is a premium rate paid for electricity fed into the electricity grid from a designated rE-generation source.  

More than half of the plastic waste that flows into the oceans comes from just five countries: China, Indonesia, the Philippines, Vietnam and Sri Lanka. The only industrialized Western country on the list of top 20 plastic polluters is the United States at No. 20. The US and Europe are not mismanaging their collected waste, so the plastic trash coming from those countries is due to litter, researchers said. While China is responsible for 2.4 million tons of plastic that makes its way into the ocean, nearly 28 percent of the world total, the US contributes just 77,000 tons, which is less than 1 percent, according to the study published on Thursday in the journal Science. This is mostly because developed countries have systems to trap and collect plastic waste, Jambeck said.

“We need to wake up and see our waste,” Jambeck said. “I think the problem in some ways has sort of snuck up around us.” The amount of plastics estimated going into the water is equal to how much tuna is fished each year, so “we are taking out tuna and putting in plastic,” study co-author Kara Lavendar Law said in a news conference at the American Association for the Advancement of Science conference. Nancy Wallace, who is head of the marine debris program for the National oceanic and Atmospheric Administration, said plastic waste in the water is a crucial worldwide issue because it is eaten by sea life, and it also collects ocean toxins. There’s also a cleanup cost and it affects tourism, she said. Unlike previous studies which looked at the plastic in the oceans, Jambeck used World Bank

statistics on 192 countries’ waste streams to track and estimate plastic pollution from the source. She examined how much waste is generated and the percentage that reaches the oceans. Jambeck’s estimates were for 2010 and ranged between 5 million and 14 million tons of plastic, with 8.8 million tons the middle scenario estimate. Previous estimates were less than 1 million tons but those were based on samples. Scientists know that much can be hidden in the bottom of the ocean and in places researchers don’t get to. Last year Andrés Cózar of the University of Cadiz in Spain estimated the waste at about 35,000 tons, based on samples, but he said the new Jambeck work adds important information to the puzzle of debris. And Cozar said his team acknowledged that “99 percent of the ocean’s plastic is missing.” AP

Study: World dumps 8.8M tons of plastic into oceans

Continued from A1

By Ma. Stella F. ArnaldoSpecial to the BusinessMirror

So there are bigger stars than celebrity Kris Aquino, after all.A young tour guide and a dive

master were among the awardees of the first Tourism Star Philip-pines, a project by the Department of Tourism (DoT). In a ceremony held at the Fairmont raffles Hotel on Thursday evening, the DoT handed out plaques and other prizes to Gerry Bie Dalimag and Bobby Adrao for the Individual category; Drew Arellano of Biyahe ni Drew of GMA 7 and Anton Diaz of the blog Our Awesome Planet for the Me-dia category; and Albay Gov. Joey S. Salceda in the Local Chief Executive category. Aquino, host of ABS-CBN’s KrisTV and sister to President Aquino, was a nominee in the Media category, and garnered 453 online votes. Thursday’s event was also an op-portunity to give tribute to Susan Calo Medina, a longtime tourism advocate, through her TV show Travel Time. Medina, 73, succumbed to heart attack on January 8. Tourism Secretary ramon r. Jimenez Jr. said the first batch of awardees “have exemplified excel-lence and dedication in driving the Philippine tourism industry forward.”

See “Kris,” A2

Re capacity. . . Continued from A1

West PHL Sea. . . Continued from A1