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THE Philippines is set to consult with three Trans-Pacific Partnership

(TPP) members in the first quarter of 2016, including its lead proponent the US, as the country pursues its bid to join the new trade bloc. Assistant Secretary for Industry Development and Trade Policy Ceferino S. Rodolfo said the technical consultations with TPP members will send a strong signal that the Philippines is really interested in joining the US-led bloc, which currently consists of 12 economies.

He said these consultations are part of the country’s preparations should it get invited by the member-economies.

Notably, the Philippines will again engage the US to deter-mine the particular commitments that will be required in the TPP. Rodolfo did not name the two other countries. Rodolfo said the Philip-pines welcomes the instruction of President Barack Obama during the recently concluded Asia-Pacific Economic Cooperation summit for the US Trade Representative (USTR) to collaborate with the Department of Trade and Industry (DTI). 

THE Philippine central bank is evaluating currency restrictions, including possibly raising the P10,000 ($212) limit of local cur-

rency that can be taken in and out of the country by travelers, to boost trading. “If we see that there are still restrictions that could prevent an otherwise vibrant cross-border trading, then we will address those restrictions or ceilings,” Bangko Sentral ng Pilpinas (BSP) Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said in a December 4 interview. The bank’s international operations department will make the recommendations, he said. Since 2007, the BSP has implemented several waves of currency reform, including easing rules for foreign-currency purchases and loans. While the peso has fallen about 5 percent this year, it is still among the best-performing Asian curren-cies, with Indonesia’s rupiah and Malaysia’s ringgit losing more than 10 percent. BSP Governor Amando M. Tetangco Jr. in Feb-ruary said transparency and flexibility in foreign-

exchange transactions help the market plan better and, from experience, these policies have helped the central bank better manage external vulnerabilities. Nicholas Antonio T. Mapa, research offi-cer at the BPI Market Research and Strategy, supported the BSP’s move to increase the cap on the amount of local currency that can be taken out of the country by travelers. “This law is grossly antiquated and was originally implemented to prevent capital flight in the Marcos years. Back in those days, bringing P10,000 out of the country may have constituted capital flight, but nowadays P10,000 is something most people have ac-cess to and not even enough to cover the purchase of a high-end smartphone,” Mapa said. “As such, even if the cash is brought outside, the peso is not freely convertible and may or may not boost cross-border trade. However, the law should be changed to reflect the current incomes of the people and value of the peso.”

Bloomberg News, Bianca Cuaresma

PESO EXCHANGE RATES ■ US 47.0810 ■ JAPAN 0.3823 ■ UK 71.1300 ■ HK 6.0750 ■ CHINA 7.3541 ■ SINGAPORE 33.6991 ■ AUSTRALIA 34.6515 ■ EU 51.1959 ■ SAUDI ARABIA 12.5489 Source: BSP (7 December 2015)

www.businessmirror.com.ph ■ Thursday 18, 2014 Vol. 10 No. 40 P. | | 7 DAYS A WEEK■ Tuesday, December 8, 2015 Vol. 11 No. 61

A broader look at today’s businessBusinessMirrorBusinessMirrorMEDIA PARTNER OF THE YEAR

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OPEC’S FREEFORALL SEEN AS BOON TO ASIATHE world’s biggest oil consumers

could hardly have hoped for a better Organization of Petroleum Exporting

Countries (Opec) meeting. The group that supplies most of Asia’s crude effectively decided to abandon pro-duction limits, in the hope that unrelent-ing supply of cheap oil will squeeze out rivals. With prices trading near a six-year low, amid swelling global stockpiles, a policy of continuing to flood the market gives little reason for a rebound in prices, according to IG Ltd. While the collapse in crude has triggered the worst slump in the energy industry since the 2008 financial crisis, it’s been a boon for Asian economies dependent on imports, helping temper inflation, support household spending and bolster refining

profits. After the Opec decided that “every-one does whatever they want,” in the words of Iran’s oil minister, the benefits for Asia will probably continue. “Big oil consumers will take a lot of succor and refiners will get good sleep,” H. Kumar, managing director of India’s Mangalore Re-finery & Petrochemicals Ltd., said in a phone interview on Monday. “There’ll be a lot of stability in the market.” Biggest buyersTHE Asia-Pacific region will consume 31.87 million barrels a day of oil in 2015, exceed-ing demand of 31.28 million barrels from the Americas, the International Energy Agency (IEA) said in a report on November 13. China, India, Japan and South Korea will be among the biggest users of oil, according to the

Paris-based IEA. India and the Philippines are likely to benefit the most because they depend heavily on crude imports, according to Bloomberg Intelligence (BI) analysis. Both economies also rely on consumer spend-ing for growth and cheap oil typically gives households more money to spend. India’s 7.4-percent growth is the strongest among Asia’s emerging economies, while the Philippines has expanded at 6 percent year-on-year, according to BI. It’s also good for the region’s refiners, such as Reliance Industries Ltd. Regional profits from turning crude into naphtha, which is used to produce gasoline as well as petrochemicals, have surged to the highest level since at least May, data

S “TPP,” A

INSIDE

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NOT-SO-ORDINARY WORLD »D2

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Life Tuesday, December 8, 2015

Life BusinessMirror

Life Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

DDEAR God, You reassure us that You will keep Your promise in the future, just as You kept Your promise promise in the future, just as You kept Your promise promise in the future, just as You kept Your promise in the past. You made in the past about the coming of in the past. You made in the past about the coming of

the Messiah as a “just shoot” from the house of David. To those the Messiah as a “just shoot” from the house of David. To those who ask what they should do while waiting for the fulfillment who ask what they should do while waiting for the fulfillment of Your promises, Saint Paul declares: “Increase and abound of Your promises, Saint Paul declares: “Increase and abound in love for one another and for all.” That’s the seed that will in love for one another and for all.” That’s the seed that will produce a better world. Don’t we qualify, too, as a just shoot produce a better world. Don’t we qualify, too, as a just shoot to make this world full of peace, love, hope and solidarity with to make this world full of peace, love, hope and solidarity with Your help and guidance? Amen.

A ‘ just shoot’

WORLD AND LIFE, FR. SAL PUTZU, SDB AND LOUIE M. LACSON, HFLWORLD AND LIFE, FR. SAL PUTZU, SDB AND LOUIE M. LACSON, HFLWord&Life Publications • teacherlouie1965@yahoo.comteacherlouie1965@yahoo.com

Holiday greetings startHoliday greetings startHolidaywith your door

B M C GTribune News Service

YOUR front door is the first thing guests OUR front door is the first thing guests OURsee when they come to your home, so you want to dress it up with a display that offers warm holiday greetings, a hint of

what they will find inside. I asked Bev, our seasonal floral designer, to share some of her secrets for creating beautiful holiday doors.

BRING THE INSIDE OUTBEV suggests that the decor on your front door be an BEV suggests that the decor on your front door be an BEVextension of the look you’ve created inside your home. How have you decorated your tree and fireplace mantel? Maybe your tree reflects a snowman or Santa theme. Or your garland is dotted with pinecones. Maybe plaid ribbons twist their way down your banister and through the garland on your mantel. If so, Bev says to pick three elements from your displays, like ornaments, floral picks, colors or ribbons, and use them to create your door display. In the right photo, Bev dressed my door in a upside-down bouquet made

from tying together a bare twig, some pinecones and evergreen picks, then finished it off with a plaid bow.

SYNC WITH THE STYLE OF YOUR HOMETHE décor on your door should be in keeping with the style of your home. When I lived in my formal Greek revival historical home, my door displays needed to be a lot grander than they do now that I live in my snug little cottage. To match my little home’s personality, I’m opting for smaller, simpler, more casual treatments.

PAY ATTENTION TO PROPORTIONSWHEN creating a floorplan for your home, it’s WHEN creating a floorplan for your home, it’s WHENessential you pay attention to proportions, making sure everything in the space is on the same scale. The same goes for your front door design. If you have a small door, like I do at my cottage, you need a smaller, simpler door treatment. Those of you who have large doors and dramatic entries will need to ramp up the size of your wreath or swag. Just make sure to leave plenty of the door showing. Do you have a glass outer door? Bev suggests placing your display next to the

door instead of squishing it between the door and storm door. This year bells are super popular. Bev used a trio of different-sized bells to adorn this large pine pick on my front door. She finished it off with a double layer of ribbons in burlap and plaid.

COORDINATE YOUR PORCH DÉCORONE mistake Bev sees folks make when they decorate their doors and front porches is to mix together too many dissimilar objects. The elements may be adorable individually, but they lack enough connection to work together as a group, and end up looking chaotic. She suggests that your door décor set the theme. Then, any other items on your porch should reflect the colors, theme and objects used on your door. For example, if you were to decorate your door with a basket full of greens, you might want to put a Christmas tree in an urn by your door and decorate the tree with the same ribbons, pinecones and berry picks.

■ This article was adapted from Mary Carol Garrity’s blog at www.nellhills.com.

The WorldBusinessMirror B2-3news@businessmirror.com.ph | Tuesday, December 8, 2015

First US shipment in months started flying to space station 

If the Orbital ATK capsule arrives at the space station on Wednesday as planned, it will represent the first US delivery since spring.

“Santa is on his way!” Tory Bru-no, president of rocket maker Unit-ed Launch Alliance, announced via Twitter. More than anyone, per-haps, the six space station astro-nauts were thrilled following all the weather-related delays. They managed to photograph the ris-ing rocket from their windows as both craft sailed over the Atlantic. “Caught something good on the horizon,” commander Scott Kelly reported in a tweet.

To Nasa’s relief, the weather co-operated after three days of high wind and cloudy skies that kept the Atlas V rocket firmly on the ground. Everything came together on the

fourth launch attempt, allowing the unmanned Atlas to blast off with 7,400 pounds of space station cargo, not to mention some Christ-mas presents for the awaiting crew.

Just before liftoff, Bruno urged, “Everyone cross your fingers and think happy weather thoughts.”

It apparently worked.The Atlas soared through clouds

and, 21 minutes later, ended up placing the Cygnus cargo carrier in the perfect orbit. Ecstatic launch controllers applauded, shook hands and hugged one another. “We’re real happy to be back in space,” said Frank Culbertson, president of Orbital’s space systems group.

United Launch Alliance man-ager Vernon Thorp couldn’t help but notice all the number fours in Sunday’s launch equation. Lift-off occurred at 4:44 p.m. on the

fourth launch attempt, and Or-bital’s designation for the mission was—yep—number four. “I guess the numbers just all lined up right today,” Thorp told reporters.

The space station astronauts—two of them, including Kelly, deep into a one-year mission—have gone without American shipments since April. Two private companies con-tracted for more than $3.5 billion by Nasa to replenish the 250-mile-high lab are stuck on Earth with grounded rockets. Orbital ATK bought the United Launch Alli-ance’s rocket, the veteran Atlas V, for this supply mission.

Orbital’s previous grocery run, its fourth, ended in a fiery explo-sion seconds after liftoff in October 2014. SpaceX, the other supplier, suffered a launch failure in June on its eighth trip.

Russia also lost a supply ship earlier this year. But it picked up the slack and has another resup-ply mission scheduled just before Christmas; Japan has chipped in, as well.

Much-needed food is inside Orbital ’s cargo carrier, named Cygnus after the swan constella-tion. Nasa normally likes to have a six-month stash of food aboard the space station, but it’s down a couple months because of the three failed f lights. Space station Program Manager Kirk Shireman expects it will take another year

to get the pantry full again—pro-vided there are no more accidents.

Also aboard the newest Cygnus capsule: clothes, toiletries, space-walking gear, air-supply tanks and science experiments.

This is the first time that the United Launch Alliance’s Atlas V has served the space station. Normally used for hefty satellite launches, it is the mighty succes-sor to the Atlas used to put John Glenn into orbit in 1962. Boeing intends to use the Atlas V to boost the Starliner capsules it’s building to ferry astronauts to the space station beginning in 2017.

Orbital plans to use another At-las rocket for a supply run in March, then return its own Antares rocket to flight from Virginia in May.

SpaceX—also part of Nasa’s commercial crew effort—aims to restart station deliveries in Janu-ary with its Falcon rockets.

While acknowledging 2015 has been a difficult year because of the disrupted supply chain, Shireman said commercial space is inevitable and will drive down launch costs. Nasa’s 30-year shuttle program proved expensive and complicated, and, on two flights, deadly.

“It is our future,” Shireman stressed last week. The Cygnus launched on Sunday is named after Mercury 7 astronaut Deke Slayton, a pioneer in commercial space-flight before his death in 1993. AP

A UNITED Launch Alliance Atlas V rocket lifts o� from launch V rocket lifts o� from launch Vcomplex 41 at the Cape Canaveral Air Force Station on December 6, in Cape Canaveral, Florida. The rocket is delivering supplies to the International Space Station. AP/JOHN RAOUX

CAPE CANAVERAL, Florida—A US shipment of much-needed groceries and other astronaut

supplies rocketed toward the Interna-tional Space Station for the first time in months on Sunday, reigniting National Aeronautics and Space Administration (Nasa’s) commercial delivery service.

B ENGH A ZI,  Libya—Law-makers from  Libya’s  rival parliaments have reached a

power-sharing agreement in Tuni-sia, shunning a UN-brokered deal to avoid the “foreign intervention” tainting it, an internationally rec-ognized government representa-tive said on Sunday.

However, it appeared the deal had failed to gain broad accep-tance by either side, with repre-sentatives from both parliaments coming out to slam the newly minted agreement.

Libya slid into chaos following the 2011 toppling and killing of longtime dictator Moammar Gad-hafi. The oil-rich country has been torn between an internationally recognized government in the far east and Islamist-backed govern-ment in the capital, Tripoli.

The UN’s unity government deal, which is aimed at ending the conflict, was drafted by its former envoy to Libya, Bernardino Leon, who accepted a job last month from the United Arab Emirates. The country backs some members of the internationally recognized government, casting doubts on the international body’s neutrality.

Sunday’s move seemed to splin-ter the north African country’s gov-erning bodies even further, with members from both sides coming out to praise or criticize the deal.

“We believe this is a step on the right track away from interven-tion of foreign entities and ma-nipulation,” prominent interna-tionally recognized parliament member Abu Bakr Beira said in the eastern city of Tobruk, where his parliament is based. Mean-while, his parliament’s spokes-man told the Associated Press the new deal does not represent the body.

“This is an individual effort and a childish attempt to get out of sign-ing the real peace deal,” Faraj Abu Hashim said.

If successful, Sunday’s deal would see the formation of two 10-member committees, with both camps enjoying equal representa-tion. One committee would name a prime minister and two deputies one from each body—in the next two weeks. The trio would then form the unity Cabinet. The other committee would draft a constitu-tion and prepare for parliamentary elections within two years.

Tunisian President Beji Caid Essebsi received the chief negotia-tors Sunday night after the talks and urged the negotiating parties to maintain contacts with the UN envoy for Libya.

“Tunisia welomes this step, which helps to bring an end to divi-sion in Libya and allow this brother country to reestablish unity and assure conditions of security and stability on its territory,” the presi-dent’s office said in a statement after the low-profile talks in the Tunis suburb of Gammarth.

According to the media offices of both parties, nearly half the members of each body are still in favor of the UN deal despite Leon’s departure, albeit with conditions. The UN has repeatedly refused to reconsider changing the proposal.

The UN deal due for endorse-ment next week in Rome had been rejected by the internationally recognized government because it would have given the unity govern-ment the power to fire all senior Libyan officials not unanimously approved by its members—a clause they interpreted as an attempt to remove their fiercely anti-Islamist army chief, Gen. Khalifa Hifter, whose forces have been battling Islamist militias nationwide for over a year.

The Islamist authorities, on the other hand, were unhappy with the deal because it did not provide sufficient guarantees that Islamic law will be applied, Islamist officials said. AP

Libya’s rival governments shun UN, sign separate peace deal 

WARSAW, Poland—Poland’s Defense Ministry denied on Sunday that it is considering asking for access to

nuclear weapons through a North Atlantic Treaty Organization (Nato) program under which the US places them on the territory of certain allied states.

On Saturday, Deputy Defense Minister Tomasz Szatkowski said that the ministry was currently discussing whether to ask to take part in Nato’s so-called Nuclear Sharing program to improve the country’s defenses. He made the comments in an interview with the private broadcaster Polsat. But the Defense Ministry issued a statement on its web site on Sunday denying that discussions are under way.

“Within the Defense Ministry there is presently no work under way concerning the accession of our country to the Nato Nuclear Sharing program,” the statement said. AP

Poland denies considering request for nuclear weapons

NORTH Atlantic Treaty Organization (Nato) Secretary-General Jens Stoltenberg (left), makes a speech as Nato foreign ministers stand in front of the logo for the upcoming Nato Warsaw summit 2016 during a group photo at Nato headquarters in Brussels on December 1. The Nato summit will take place in Warsaw in July 2016. JONATHAN ERNST/POOL VIST/POOL VIST A AP

Y EREVAN, Armenia—Early results show that Arme-nian voters at Sunday’s

referendum have supported con-stitutional changes that would give more powers to the prime minister and parliament at the expense of the president.

Armenia’s Central Election Commission said in a statement early on Monday that 63 percent have supported the amendments that would make the president largely a figurehead.

The opposition has seen the re-form as an attempt by President Serzh Sargsyan to extend his rule. Sargsyan has denied the claim, say-ing he has no intention of shifting into the prime minister’s seat af-ter his second term in office ends in 2018. Sargsyan’s government has promoted the constitutional changes as a step toward strength-ening democracy in the former So-viet state by providing for a greater balance of powers and a stronger judicial branch. AP

WASHINGTON—Hillary Clinton says “the black f lag” of the Islamic

State (IS) group could be flying over the Palestinian territories if the Palestinian Authority and President Mahmoud Abbas fail to keep order. The Democratic presi-dential candidate and former sec-retary of state says a Palestinian leadership vacuum could provide an opening for IS to make inroads. Clinton also says that as presi-dent, she’d push Israelis and

Pa lest inians toward a peace dea l . But she ac k nowled ges the diff iculty of brokering a two-state solution. She tells a conference at the Brookings In-stitution in Washington that she understands “the frustration and the disappointment.” But she also says, “I don’t think you can give up on it.”

Clinton is also promising to re-build US-Israeli relations, which have grown chilly under President Barack Obama. AP

Possible IS gains if Palestinian leadership vacuum–Clinton

Armenia votes to give president’s political powers to prime minister 

PALESTINIAN Fatah supporters put up a �ag, while waiting for Gaza’s Hamas rulers to hand over the house of late Palestinian President Yasser Arafat to o�cials from his Fatah party, with the intention of turning it to a museum for the iconic leader on November 10, Gaza City. The house has been closed since the Islamic militant group Hamas took over Gaza in 2007 after routing the Palestinian Authority's forces and ousting Fatah under the leadership of Arafat’s successor, Mahmoud Abbas. AP/ADEL HANA

WORLD B23

HOLIDAY GREETINGS START WITHYOUR DOOR

FIRST U.S. SHIPMENT IN MONTHS STARTED FLYING TO SPACE STATION

LIFE D1

PHL to hold TPP talks with USMANILA SIGNALS STRONG INTEREST TO JOIN THE PACIFIC RIM TRADE BLOC VIA TECHNICAL CONSULTATIONS

BSP looks to ease currency restrictions to boost trading

ITALPINAS NOW A PUBLIC COMPANY Officials of Italpinas Development Corp. (IDC), known for its sustainable-development thrust, lead the ceremonial ringing of the bell at the Philippine Stock Exchange (PSE) trading floor in Makati City on Monday, signaling its official listing on the PSE. In the photo are (from left) lawyer Jose Leviste III, IDC president; Arch. Romolo Nati, IDC chairman and COO; Jose Pardo, PSE chairman; Vivian Yuchengco, PSE director; Hans Sicat, PSE president; and Alejandro Yu, PSE director. Story on B1. NONOY LACZA

Clark holds key for PHL to reaprewards of ballooning air traffic

SPECIAL REPORT

B L S. M

Second of three parts

THERE’S enough blame to share for the snail-paced growth that Clark International Airport has seen over the past decade and a half. Talks

about the development of the air hub have been go-ing on for years. Unfortunately, no concrete master plan has been crafted. The Philippine aviation sector generally has little infrastructure to boast. The country’s airport infrastructure can be considered pitifully bad when compared to our Asean neighbors. This is the result of the absence of vision, which led to poor planning and inefficient execution. Tony Fernandes, chief executive of AirAsia, the

largest low-cost carrier in Southeast Asia, said the government needs to craft a general aviation policy that will outline everything that the Philippine avia-tion sector needs to become competitive. “I believe that Clark is a fantastic asset that the country has, but the government needs to come up with an aviation policy. There are great airports in the country that need a little bit of investments to accept bigger planes,” he said. Congress has ordered the transportation de-partment to craft a master plan that will set in motion the use of Clark as the alternate air hub. It has given the Department of Transportation and Communications (DOTC) a January deadline to produce a blueprint.

IN this June 12, 2014, file photo, a pair of tanker trucks park next to pumps at an oil-producing well in McKenzie County, North Dakota. APS “O,” A

C A

House Committee on Transportation Head Rep. Cesar V. Sarmiento of Catanduanes sought for a more tangible plan for the development of Clark, as this would help decongest the ter-minal and runway congestion at the Ninoy Aquino International Airport (Naia). “If you could assemble and meet and present a master plan, we could have it submitted to the proper authorities for immediate action,” Sarmiento told transport and airport officials in a congressional hearing. “To speed up mat-ters, this committee would like the groups to present an action master plan, considering Clark as an alternative gateway to Naia to be submitted in January.” Rep. Joseller M. Guiao of Pampanga said Clark is the best substitute to Naia, given that its terminal and runways are still underutilized. “Clark has the capacity to accommodate 4 million passengers, but right now only 1 million travelers pass through the airport. The airport has the capacity to hold several flights,” he said. Unfortunate realityBuT travelers and potential clients do not con-sider Clark in their radar due to its distance from Metro Manila, citing the lack of direct access from the North Luzon Expressway. For the same reason, airlines have repeat-edly refused to operate out of the airport of the north, citing the apparent lack of demand. This is partly because Clark, whose main problem is the marketability of the facility, is situated two hours away from Manila. Based on their experience, airline executives said customers are not too keen on spending two hours on the road to the north for a two-hour flight, say for example, to Hong Kong. “The distance of 100 kilometers from the Manila City center to Clark is a major chal-lenge and the lack of surface land and/or rail transportation is a barrier to connectivity— that would be very expensive to fund—while minimum connection times for passengers at-tempting to transfer between flights at differ-ent airports would be extremely uncompetitive and uneconomic for airlines to operate com-pared with industry norms,” the International

Air Transport Association (Iata) said. It added: “The unfortunate reality is that that airport is not geographically positioned well enough to efficiently or effectively serve the needs of the traveling public.” The government also lacks political will to encourage airlines to operate commercial flights out of Clark. Local carriers Philip-pine Airlines and Philippines AirAsia used to have Clark as one of their hubs, but their experience of low load factors forced them to pack their bags and move to the Naia, de-spite its congestion problems both in airside and land operations. “Manila is sure revenue for the airlines. They would rather squeeze through with other air-lines in Manila because it will result in profits. I guess passenger experience is just secondary, at least from a business standpoint,” Clark In-ternational Airport Corp. President Emigdio P. Tanjuatco III said. He explained that such a scenario arose due to customer behavior and appreciation. Airline passengers, he said, have already accepted the fact that they will experience traffic congestion in Manila to the point that they have already factored in the logjam in their travel time. “They have already accepted the fact that they have to add two to three hours in their travel time, and we want that mind-set to be removed. It would be more convenient for passengers coming from the north of Quezon City to fly out of Clark instead of Naia. The travel time is almost the same, if not faster,” Tanjuatco said. To effectively market Clark, the government, according to aviation experts and airline execu-tives, must invest in a high-speed rail facility that will connect the airport to the capital. Train line more viable vs new airportCEBu Pacific Spokesman Paterno S. Mantaring said Clark can only be an attractive alternative gateway to Manila if a train system will con-nect the airport to Metro Manila. “Clark remains a strategic hub for Cebu Pacific’s operations and plays a key role in al-lowing us to serve North Luzon guests. Having

said that, Clark as an alternative gateway to Manila will only be viable if a high-speed rail line connects it to Metro Manila,” he said. He added that Clark has the long-term po-tential to expand as its size can accommodate three runways. However, it is worth noting that it is the farthest international gateway from a capital city, compared to other air-ports in the world like Bangkok, Hong Kong or Kuala Lumpur. “A rail line connecting Clark and Manila will require major infrastructure investment and a lot of government subsidy for fares to be affordable to more people,” Mantaring said. Cebu Pacific is the lone Filipino carrier op-erating out of Clark. Philippines AirAsia used to serve passengers via the airport, but decided to fold down its operations in 2013. Malaysia AirAsia now serves a few flights between Clark and Kuala Lumpur. AirAsia’s Fernandes explained that the deci-sion to terminate the Philippine unit’s opera-tions in Clark stemmed from the passengers’ perception of the airport. The general apprecia-tion for the facility, he said, is quite low given its location. “We tried to build a base there, but no one was willing to spend two hours to get to an air-port for a flight that will take two hours when the cost differential is not that great. I believe that a train line there would be great, and the cost of building a train line is much cheaper than building a whole new airport,” he said. House Speaker Feliciano R. Belmonte Jr., a former airline executive, agreed, saying what Clark lacks is the efficient shuttle service to and from the capital. “There are many countries where airports are not located at the heart of the city. It is a matter of providing good and efficient shuttle services to comfortably transport passengers to and from Manila and Clark which, after all, is not too far away considering road im-provements undertaken through the years,” he said. In 1998 the plan to build a railway line that will run from Pampanga to Paco, Manila, was conceived. It would have cut the two-hour travel time from the capital to Clark to 45 minutes,

much like the airport rails in Singapore, Ma-laysia and Hong Kong. But several decades later, the proposal re-mained to be a piece of paper, and was thrown in the back burner, to the detriment of Clark, which was envisioned as a substitute gateway to Manila. President Aquino, in a recent conference, said developing a railway to Clark is now be-ing reviewed, albeit building one would be too costly for the government. A Chinese company, he said, offered to do the job for $400 million, an amount that he said was too huge an invest-ment for a rail facility. “The viability of a railway system, espe-cially high-speed, the commercial viability of that is still under question. That, I think, is the major determinant. Clark now is envi-sioned to service basically both the central and northern Luzon markets to decongest the Naia a bit,” he said. Support infrastructure neededASIdE from a train line, Clark should also de-velop its support infrastructure, Philippine Airlines President Jaime J. Bautista said. “It is an alternate airport for us when we can’t land in Manila. I think Clark should be-come another gateway, because it has the run-way. All we need to do is to construct all the support infrastructure,” he said. By this, he meant infrastructure for cater-ing, ground handling, refueling and a terminal for full-service airlines. “Today, the terminal is considered low-cost. I think to decongest Naia, we can transfer low-cost flights to Clark in the meantime, like what the uK did in London,” he said, citing the dedi-cated budget airport terminal in the uK. But should Clark develop the support in-frastructure that a legacy airline needs, the national flag carrier can move a number of its operations to Clark. “If only the airport has the support infra-structure to make it more attractive—like refu-eling facilities, catering, ground handling, and a nice terminal, a terminal for a legacy carrier —maybe we can move some of our flights to Clark,” Bautista said.

NORTHEAST MONSOONAFFECTING NORTHERN LUZON

(DECEMBER 7, 5:00 PM)

news@businessmirror.com.ph BusinessMirrorTuesday, December 8, 2015 A2

BMReportscompiled by Bloomberg show. Japan, Asia’s second-biggest oil consumer, spent an average of $47.88 a barrel in Oc-tober for supplies, down from $113.47 in January 2014, according to data from the nation’s Ministry of Finance.

Good for consumers“This provides lot of relief for all big importing nations as this ensures sta-bility in prices,” J. Ramaswamy, the finance head at india’s third-biggest state refiner, hindustan Petroleum Corp., said in a phone interview. “This is good for consumers and also for refiners as it will stabilize refining margins.” Malaysia, the region’s biggest oil exporter, may be hurt the most. As the price of crude collapsed, exports as a share of Malaysia’s economy fell to 73 percent, from 78 percent in June 2014, and the country’s current account surplus shrank, according to Bi. While indonesia is also one of the region’s largest crude exporters and rejoined Opec this year after leaving in 2009, the boost to house-hold spending will help offset the drag from lower export revenue, Bi predicts. The oversupply is likely to continue in the new year. iran, for years under sanctions related to its nuclear program, has promised to lift its production to as much as 4 million barrels a day by the end of 2016.

Little incentive“TheRe still seems to be little incentive for the global supply-demand dynamic in oil to rebalance in the short term,” Angus Nicholson, a Melbourne-based market analyst at iG, said in a Bloom-berg TV interview. West Texas intermediate (WTi) tumbled 2.7 percent after Opec’s meet-ing and extended losses below $40 a barrel on Monday, dropping as much as 77 cents, or 1.9 percent, to $39.20 on the New York Mercantile exchange. Brent crude in London slid as much as 0.9 percent to $42.62. “Asia, which already bypassed North America as the biggest oil im-porting region in the world, should continue to be a big beneficiary of lower for longer oil prices,” said Gordon Kwan, a hong Kong-based analyst at Nomura holdings inc. Oil extended losses below $40 a barrel amid speculation a re -cord global glut will be prolonged as Opec abandoned its longtime strategy of limiting production to control prices. Futures dropped as much as 1.9 percent in New York after falling 4.2 percent last week. The Opec will keep pumping about 31.5 million barrels a day, President emmanuel ibe Kachikwu said on Friday after a meeting in Vienna. The group is setting aside its output quota of 30 million barrels a day, a target breached the past 18 months, until members gather again in June. Oil has slumped 40 percent since saudi Arabia led Opec’s decision in November 2014 to maintain output and defend market share against higher-cost Us shale producers. Global stockpiles have expanded to almost 3 billion barrels as the saudis, Russia and iraq increased supply, ac-cording to ieA. “There is significant excess supply capacity around the world now that if Opec give up their share, they’re just inviting someone else to take it,” Ric spooner, a chief analyst at CMC Markets in sydney, said by phone. “We’re far away from any situation where Opec might actually change the current position and move back to restraining supply.” WTi for January delivery declined as much as 77 cents to $39.20 a barrel on the New York Mercantile exchange and was at $39.56 at 11:30 a.m. hong Kong time. The contract decreased $1.11 to $39.97 on Friday. The volume of all futures traded was more than double the 100-day average. Prices are down 26 percent this year. Brent for January settlement slid as much as 26 cents, or 0.6 percent, to $42.74 a barrel on the London-based iCe Futures europe exchange. The european benchmark crude was at a premium of $3.19 to WTi. Bloomberg News

Clark holds key for PHL to reap rewards of ballooning air traffic. . . Continued from A1

Opec. . . Continued from A1

news@businessmirror.com.ph Editor: Dionisio L. Pelayo • Tuesday, December 8, 2015 A3BusinessMirrorThe Nation

SEN. Ferdinand R. Marcos Jr. on Monday said that the Philippines failed to respond to China’s offer for bilateral talks under the framework of inter-

national law. Marcos said Chinese Ambassador Zhao Jianhua made the offer a few months ago, the first time the offer was made since the Philippines brought China before the Permanent Court of Arbitration in The Hague. However, the government failed to take the initia-tive to pursue the offer, the senator said at the Kapihan sa Manila Hotel. “If you go back to the recent past a few months ago, it was the first time that the Chinese Ambassador [Zhao Jianghua] said ‘we are open to bilateral talks under the framework of international law,’ that is the first time that they have said that.” The senator said the offer was pointed out by

Department of Foreign Affairs officials to him. Marcos was responding to a question whether the South China Sea issue is one of his priorities if elected vice president in 2016. “Lahat iyan top priority, walang hindi importante di-yan, malaking-malaking bagay sa palagay ko if we have engaged the Chinese.” Marcos, meanwhile, said he will vote for Sen. Miriam Defensor-Santiago for president in the 2016 elections. Marcos has been linked to various presidential contenders, including Davao City Mayor Rodrigo R. Duterte and Vice President Jejomar C. Binay. Recently, former President and Manila Mayor Joseph Estrada, who said that he will run for president if Sen. Grace Poe and Binay were disqualified, wants Marcos as his vice presidential candidate. Recto Mercene

PHL snubbed China offer—MarcosJUSTICE Secretary Benjamin S.

Caguioa has been asked to recon-sider his memorandum ordering

the release and the recall of the warrant of deportation issued against Korean Kang Tae Sik. In an urgent request for reconsid-eration of Caguioa’s memorandum issued on November 6 to the Bureau of Immigration (BI), lawyer Alex Tan urged the justice department to uphold with finality the pending deportation order against Kang. On January 16, 1996, Kang was convicted on two counts of violation of the Anti-Bouncing Checks Law (Batas Pambansa 22). Tan pointed out that the BI’s Board

of Commissioners had rejected all ap-peals by Kang to stop his deportation. On October 28 Kang was arrested by Immigration agents on orders of Commission Siegfred Mison. The next day, Kang’s lawyer filed a motion to quash warrant of deporta-tion and, at the same time, asked the bureau of set Kang’s bail. On November 2 the Office of the Justice Secretary, through Chief State Counsel Ricardo V. Paras III, directed Mison to comment on the Motion within 10 days. However, four days later and without waiting for Mison’s comment, Caguioa ordered the imme-diate release of Kang from detention, without bail. Joel R. San Juan

Anakbayan National Chairman Vencer Crisostomo said the group fears the the Comelec could be con-ditioning the public for an adminis-tration “back-up plan” to sabotage the elections in case it fails to secure the victory of Liberal Party (LP) and

President Aquino’s anointed Manuel A. Roxas II by “hocus Pcos [precinct count optical scan]” and massive elec-toral fraud. In a statement, Comelec Chairman Andres D. Bautista said the May 9, 2016 may be postponed, blaming the

Youth group hits Comelec’s ‘no-el’ warning

Reconsider Korean’s release, DOJ asked

By Marvyn N. Benaning | Correspondent

YOUTH group Anakbayan on Monday assailed the Commission on Elections (Comelec) for warning

of a possibility of a “no elections [no-el]” or postponement of elections scenario in 2016.

Supreme Court (SC) temporary restrain-ing order (TRO) on the commission’s “No Bio, No Boto” policy. “The Comelec is using the ghost of no-el to blackmail the SC and the people into allowing it to implement an unconstitutional policy, which will disfranchise voters. Their reason, however, is illogical and question-able. The TRO should not slow down, but on the contrary, speed up the preparations for elections because we get rid of an unnecessary step or requirement. The voters’ list simply stays as is,” Crisostomo said. He added that Bautista himself an-nounced that no new system will be used for voter verification. “There will be no machines for bio-

metric verification anyway, Bautista himself admitted that the old system of voter verification will be used,” Crisostomo added. He suspects there are other mo-tives behind Comelec’s stubborn in-sistence of its policy requiring bio-metrics for voters. “Could the drawing up of a new vot-ers list in preparation for an upgraded ‘dagdag-bawas’ to favor Mar Roxas? We suspect that the ‘purging’ of the voters list could actually be used to remove voters known to support op-position candidates, or justify padding for certain administration candidates. Worse, it can be used to justify a no-elections scenario, like what Comelec is doing now,” Crisostomo warned.

By Rene Acosta

THE Air Force will temporarily base its acquired FA-50 “Golden Eagle” fighter jets at Clark Field, pending the rehabilitation of its facilities at Basa Air Base,

also in Pampanga. Two of the squadron of 12 FA-50 jets from South Korea have been turned over to the military on Saturday, while the rest are expected to be delivered by 2017. “For the next year, it’s going to be in Clark. The facilities, both in Basa Air Base in Pampanga and in Subic are not prepared to accommodate the FA-50. So what will happen is we’re going to fix those facilities, both Subic and Clark simultaneously,” the Air Force Chief of Staff Maj. Gen. Galileo Gerard Kintanar said. “By middle of next year, if things go well in the repair of some facilities in Subic, we might be able to transfer some of our operations there. In Basa, it will take longer,” Kintanar added. Basa Air Base used to be the base of the Fifth Fighter Wing and home of the Air Force aerobatic team “Blue Diamonds.” The Air Force official said the repair would include upgrading the current aerodrome facilities, runway and hangars at Basa Air Base. “By 2017 we see that Basa will be operationalized for fighter operations,” Kintanar said. Subic and Clark have been eyed as among the facilities eyed by the US to temporarily base its military assets and equipment under its pivot program for Asia once the RP-US Enhanced Defense Cooperation Agreement (Edca) is implemented. Several groups and individuals have questioned Edca’s constitutionality before the Supreme Court. Kintanar said the Air Force is also planning to base some of the fighter jets at the Antonio Bautista Air Base in Palawan, but its facilities would also have to be upgraded. “It’s going to be a simultaneous thing. We’re going to repair as well some of facilities in Palawan in Antonio Bautista Air Base, and, hopefully, as we train new pilots for the FA-50 and as soon as we call them combat ready, they would be deployed in those areas,” Kintanar said. “We know it’s going to be a difficult a step, but we’re getting there. We are going to train more pilots, we are going to get more aircraft. By 2017 and hopefully by 2018, we’ll see them deployed already in Palawan,” Kintanar added. Like Subic, the US military also wants to station its assets and equipment in Palawan, still under the Edca.

FIGHTER JETS To BE BASED IN ClARK

By Cai U. Ordinario

The national government spent P25 million for the 2015 updating of the list of establishments (ULe), according to the Philippine Statistics Au-

thority (PSA). PSA said the data collection, which started in October, will be completed this month. however, the results will be released in April 2016. The ULe will be conducted through the Statistical Sur-vey Review and Clearance System (SSRCS) that will be ad-ministered nationwide. “The ULe involves updating through comprehen-sive field work [door-to-door canvassing], feedback from previous censuses and surveys, and mail in-quiry,” the PSA said. The updating includes capturing and listing character-istics of “new” establishments; updating of the status and characteristics of “old” establishments; delisting “closed” establishments that should no longer form part of the Le; and identifying out-of-scope units on the Le database. The data obtained from the ULe provides an updated and reliable sampling frame for business and industry censuses and surveys. It also guides government plan-ning, policy-making and monitoring; used as basis for marketing plans, opportunities and prospects; and used as input to evaluation, market research and compara-tive studies. The PSA said the 2014 ULe showed that a total of 437,602 establishments were recorded in the Wholesale and Retail Trade and the Repair of Motor Vehicles and Motorcycles industry. The industry had the highest number of establish-ments, followed by the sectors on Accommodation and Food Service Activities with 127,600, and Manufacturing with 118,749 establishments. On the other hand, the PSA said Mining and Quarry-ing has the least number of establishments with only 987 firms.

BusinessMirror news@businessmirror.com.ph A4

Economy

The Asean Centre for Biodiversity (ACB) is pitching calls for increased budget alloca-tion for the protection of Asean heritage

Parks (AhPs), which represent some of the most important ecosystems in Southeast Asia. Rolando Inciong, head of the communication and public affairs unit of ACB, said a budget in-crease will enhance the management capacity of designated AhP managers in the region in the face of the increasing threats to the region’s rich biological diversity. The ACB is the secretariat of the AhP Pro-gram, and is mandated by the 10-member Asean to assess the management effectiveness of the AhPs. AhPs are selected protected areas in the Asean region that are known for their unique biodiversity and ecosystems, wilderness and outstanding values. AhPs were given the high-est recognition because of their importance as conservation areas. “Through the Asean Declaration on heritage Parks and Reserves, the Asean member-states agreed to effectively manage AhPs to maintain ecological processes and life-support systems; preserve genetic diversity; ensure sustainable utilization species and ecosystems; and maintain wilderness that have scenic, cultural, education-al, research, recreational and tourism values.” There are currently 37 AhPs, eight of which are found in the Philippines. These include Mount Apo Natural Park, Mount Kitanglad Range Natural Park, Mount Malindang Range Natural Park and Mount hamiguitan Wildlife Sanctuary, all in Mindanao; Mounts Iglit-Baco National Park in Occidental Mindoro; Mount Makiling Forest Reserve in Laguna; Tubbataha Reefs Natural Park in Palawan; and Mount Timpoong-hibok hibok Natural Monument in Camiguin. Norman Ramirez, ACB’s capacity-develop-ment specialist said most, if not, all of AhPs lack funding to ensure their sustainable development. “By increasing budget allocation, the parks’ day-to-day operation will be sus-tained,” Ramirez says. The Philippines has a total of 240 Pro-tected Areas (PAs), eight of which have been declared as AhPs. Despite their prestigious status as parks of regional importance, AhPs remain under threat by human pressures, in-cluding increased number of tourists; habitat destruction caused by human pressures, such as illegal logging, slash-and-burn farming, and harvesting of wildlife and other forest products. Many PAs in the country are heavily de-pendent through budget allocated by the Department of environment and Natural Re-sources and the Integrated Protected Areas Fund (Ipaf) or revenues generated in their day-to-day operation, such as rents and en-trance fees paid by visitors. A policy brief released by the Resources, en-vironment and economics Center for Studies Inc. said that, while the Philippines has more than 200 PAs but only about half of them are actually generating income, that is not enough to sustain their operations. The report said that from 1996 to 2010, only P198 million was remitted by PAs to the Ipaf, generated from 100 PAs, with the top 15 PAs contributing as much as 89 percent of the amount. It also cited a 2011 study, showing that the country’s PAs are the most understaffed and most underfunded in Southeast Asia. “It is only proper that Asean members will value the AhPs through budget allocation,” he said. Jonathan L. Mayuga

By Joel R. San Juan

GRAFT charges were filed before the Office of the Ombudsman against former Manila Mayor

Alfredo Lim and officials of two private corporations on Monday for allegedly entering into a 25-year contract for installation of parking meters and management devices in the city that caused the city government to lose P3.46 billion. In his complaint affidavit, former media man Ricardo Santos Cruz through his counsel, lawyer Moses Pua accused Lim, Tokagawa Global Corp. Vice President Rorie Cariaga and Matsuyama Corp. Managing Of-ficer Napoleon Ibalio of violation of Paragraphs (e) and (g), Section 3 of RA 3019, or the Anti Graft and Cor-rupt Practices Act. The said provisions prohibit gov-ernment officials and employees from giving any private party any unwarranted benefits, advantage or preference in the discharge of his official administrative or ju-dicial functions. The said law also prevents any public officers from entering into a contract, on behalf of the government, that is mani-festly and grossly disadvantageous to the latter. The case stemmed from the tripartite memorandum of agree-ment (TMOA) that Lim entered

i nt o w it h t w o c o r p o r at io n s , namely: Tokagawa Global Corp. and Matsuyama Corp. on Sep-tember 17, 2012, through which Matsuyama will provide parking meters and management devices which will be installed, operated and maintained by Tokagawa in the city of Manila. Based on the TMOA, he said, the city of Manila is entitled to 20 per-cent of the net proceeds, while 80 percent shall inure to both Tokagawa and Matsuyama as the contractors, with the TMOA’s effectivity lasting for 25 years. The complainant noted that, based in the city auditor’s re-port, Lim entered into the TMOA through “unsolicited proposal ” under RA 6957, as amended by RA 7718 (Government Procurement Policy Law). The report further stated that the respondents have failed to follow the procedure in the said law and have failed to pro-duce the necessary documents to support such action. “his manifest partiality in award-ing the contract for parking meters to respondent contractors is reflected by the fact that the project was entered into through an unsolicited proposal. The city auditor also noted that such project of a parking-meter system does not fall under any of the eligible types of projects under Section 2.2 of

RA 6957, as amended by RA 7718,” Cruz claimed. Furthermore, Cruz said the city auditor noted in his report that the TMOA and the project itself is grossly disadvantageous to the city because of the disparity in the amount of investment by the re-spondent contractors as compared to the return of investment. Cruz said the respondent contrac-tors only invested the amount of P11,587,923.20 to start the project and even failed to provide the city government any scope of work cov-ering the project. The complainant disclosed that, for a measly investment of P11.58 million, the respondent contrac-tors have already earned a total of P216,368,258.93 for operating only for two years since 2013. With the average earning per year at some P138,697,601 for the two years’ operation, Cruz said the deal could amount to about P3.46 billion for the entire 25-year contract. Upon the expiry of the TMOA, Cruz said the two contractors would have earned a total P2.77 billion, while the city government would likely get only a only a measly P693.48 million. “The city of Manila could have prof-ited more from this project, had it not been for respondent Lim’s machina-tions,” the complaint read.

This total disbursement is a growth of 19.3 percent from the to-tal disbursements during the same quarter the previous year, which only amounted to P468.4 billion.

Budget Secretary Florencio B. Abad said the growth in disburse-ments is due to the higher spend-ing on infrastructure projects, par-ticularly for the modernization of the military.

“ I n f r a s t r u c t u re - s p e nd i n g growth is 57.6 percent year-on-year in the third quarter, amounting to P93 billion compared to P59 billion in the same period in 2014,” Abad

said in a statement.The disbursements were used to

fund the aircraft acquisition of the Armed Forces of the Philippines Modernization Program, and infra-structure programs of the depart-ments of education and Tourism implemented by the Department of Public Works and highways, such as the Basic educational Facilities and the construction, repair and rehabili-tation of roads and bridges in tourist destinations.

The higher disbursements dur-ing the third quarter also went to maintenance and other operating

expenses spending, which grew by 46.8 percent year-on-year. This is mainly due to expanded mainte-nance expenditures in relation to the implementation of the Con-ditional Cash Transfer and other community-development pro-grams of the Department of Social Welfare and Development, the Pa-mana in the Autonomous Region in Muslim Mindanao program of the Department of the Interior and Local Government and the Bottom-Up Budgeting.

Abad said that higher govern-ment spending, said to be one of

the factors that can influence eco-nomic growth due to the big impact of government spending in boost-ing consumption, would continue up to next year’s election, as candi-dates scramble to spend money for projects as part of their strategies for reelection.

With the expected higher gov-ernment expenditures, Abad said it is still possible for the Philippines to achieve a 6-percent growth in the GDP for the full year, which is still below the 7-percent to 8-per-cent GDP target set by the govern-ment itself.

Tuesday, December 8, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Govt spending hits highest year-on-year Q3 growth

The government’s spending for the third quarter experienced the biggest year-on-year growth

from comparable periods the previous year, with total disbursements in the third quarter amounting to P558.5 billion, the Department of Budget and Management (DBM) said on Monday.

ACB pitches call for budget increase for heritage parks

Ex-Manila Mayor Lim, 2 others face graft charges over parking-meter deal

List of establishment survey to be released by April 2016

Sharing the ChriStmaS Spirit Former Senate President and Vista Land Chairman Manny Villar and Sen. Cynthia Villar lead the annual distribution of Christmas gifts by the Villar Social Institute for Poverty Alleviation and Governance to 200 children aged 2 to 13 from Baseco in Tondo, Manila, on Sunday at the Crosswinds in Tagaytay. PNA

By David Cahagastian

briefslower pump prices for diesel, kerosene

OIL firms announced on Monday a reduction in diesel and kerosene prices by P0.50 per liter and P0.70 per liter, respectively. There is no price adjustment in gasoline products. Eastern Petroleum Corp. will reduce the price of diesel P0.50 per liter at 6 p.m. on Monday. Fernando L. Martinez, Eastern Petroleum chairman and CEO, said the continuous downward trend in world oil price has prompted oil companies to adjust pump prices accordingly. “Analysts expect the ongoing oversupply would push prices to fall further, and that the effective removal of the Opec [Organization of the Petroleum Exporting Countries] quota would leave the market in a more vulnerable position,” Martinez said. Petron Corp., for its part, said the adjustment will take effect at 12:01 of December 8. Pilipinas Shell and Phoenix Petroleum are also implementing the same price adjustment, but the implementation will take effect at 6 a.m. of Tuesday. The oil firms said the latest price adjustment reflects the lower price of finished product in the world oil market.

Those involved are the Depart-ment of Science and Technology, Philippine Nuclear Research Insti-tute, National Power Corp. and the Department of Energy (DOE). “There are ongoing public con-sultations already. In fact, there were three public consultations held. There would be more public consultations since this is not a power issue anymore but a na-tional concern,” Energy Undersec-retary Donato Marcos said. Marcos also said that Congress should come up with a policy direc-tion on this. “We want the public to decide. We want a plebiscite, not in 2016 but in the near future. Con-gress should come up with a policy

direction on that. We don't have a law about nuclear. “We’re the only country with a nuclear power plant completed but not yet operated and we don't have any policy on nuclear energy," the DOE official said. In June, Lopez-led First Gen Corp. expressed apprehension over the possibility of building a nuclear power plant in the country, citing excessive cost and safety issues. First Gen Chairman Federico Lopez had said that the company has received many proposals for it to build a nuclear power plant but cited the difficulties a power firm has to face. First, he cited the cost.

By Claudeth Mocon-CiriacoCorrespondent

MORE than 26.2 million, or 67 percent, of 39.1 million employees work for 40 hours or more per

week, the latest statistics gathered as of July this year by the Philippine Statistics Authority (PSA) revealed. The new research by global workplace provider Regus showed that workers globally are most likely to carry out overtime on Mondays, when they most probably try to catch up from the weekend and to get ahead for the week, instead of Friday, when they are keen to get out and start the weekend. While most workers work two to four hours more each week, a committed two fifths put in a full extra day or even more, the study said. Lars Wittig, country manager of Regus Philippines said: “While the commitment of workers in the Philippines is admirable, it is worrying that a small proportion are working the equivalent of a seven day week. While it can’t be healthy to carry out so much overtime, it is also true that the location this work is carried out in plays an in important role in contributing to worker well being.” “If Filipinos are able to carry out an acceptable amount of overtime from a location closer to home, they will benefit from a shorter

commute at the end of the day and a more efficient use of their time. If instead, punitively long hours are combined with gruelling commutes, Filipinos could be facing burnout all too soon,” he added. This latest research, surveying over 44,000 businessmen from more than 100 countries, including the Philippines, reveals that working long hours has become the norm with most workers putting in at least a small amount of overtime every week. More than one in 10 (14 percent), however, is teetering close to burn out and putting in over 15 hours, basically working the equivalent of a seven day week. Key findings include: Most workers do around two to four hours more each week (19 percent); More than one in 10 (14 percent) report more than 15 hours overtime running very close to an additional two working days; At least 38 percent work a full extra day or more, confirming that daily overtime is the norm for many workers globally; The day workers are most likely to stay on longer on Mondays (16 percent) when workers catch up from the weekend and try to get ahead, while toward the middle of the week on Wednesday, only 9 percent do overtime; Workers are also keen to get out early on Friday, when only 9 percent commit to regularly doing overtime.

WITh the Philippines being one of the most vulnerable countries to disasters, the

Department of Energy (DOE) an-nounced on Monday that it would strongly push for “Energy Resilien-cy for Sustainable Growth” during the National Energy Consciousness Month (NECM). On the average, about 19 ty-phoons hit the Philippines every year, which also consequently bring about flash floods, storm surges, and landslides. The country, which lies within the Pacific Ring of Fire, is also prone to earthquakes. For 2015, the government, through the DOE, is aggressively pur-suing the thrust to ensure resiliency of energy systems not only in the Philippines but also among neighbor-ing and trading nations around the world, in international conventions, such as the Asean Ministers Energy Meeting in Malaysia, Singapore En-ergy Week and the 21st Conference of the Parties in Paris. The DOE also led the hosting of the Asia-Pacific Economic Co-operation 12th Energy Ministers’

Meeting held from October 12 to 14 in Cebu, in which member-econo-mies committed to build energy resil-ient communities to sustain growth. “Calamities do not only impede continuous flow of energy, but have a larger impact to economic growth and stability,” Energy Secretary Zenaida Y. Monsada said. In line with the NECM’s theme, the DOE will be hosting a series of activities in line with the NECM: Safety and health Association of the Philippine Energy Sector shar-ing of Best Practices and Awarding Ceremonies 2015 (December 3); Don Emilio Abello Energy Efficiency Awards (December 4); Oil and Gas Security Exercise (from December 7 to 9); DOE-Gender and Development Energy Toolkit Launch (December 9 and 10); Philippine Electricity Sum-mit 2015 (December 11); and the Presentation of Fuel Economy Run Results (December 17). The DOE Field Offices will also hold different activities in various provinces: Calibration Training for local government units in Bohol (December 2 and 3); Energy 101 for

Engineering Students in Bacolod (December 8); IECs on Energy Con-servation and Forum on Renew-able Energy in Negros Occidental (December 9); IECs on Students Exposure for Comprehensive on Renewable Energy Technologies and Downstream Oil Industry and Energy Conservation in Davao City (December 21). The DOE attached agencies will also be holding the following activi-ties in support of the NECM: Phil-ippine National Oil Co.-Renewable Corp.’s Solar Expo (December 4); National Electrification Adminis-tration’s EC Milestones and Rec-ognition Ceremony (December 2) and the Ceremonial Switch-on for 11 Millionth Consumer Connection (December 15). The NECM, an annual month-long celebration in accordance with Proclamation 1427, is spear-headed by the DOE. This event aims to increase public awareness on energy related campaigns, ac-tivities and programs, strength-ening the government’s policy on energy efficiency. Lenie Lectura

By Butch Fernandez

MALACAñANG is checking whether the Department of Energy (DOE) has plans

to reconcile government approvals of new coal plants with President Aquino’s commitment at last week’s Climate Vulnerable Forum (CVF) that he presided over in France to help reduce carbon emissions. “We need to verify with the DOE,” Secretary herminio B. Co-loma Jr. said on Monday. Asked if Mr. Aquino had giv-en marching orders to revisit recent ly approved coa l plant projects in the wake of his com-mitment at the Paris Forum, Coloma indicated the Palace is in the process of verifying the matter with the DOE. This even as Palace officials have yet to confirm if President Aquino himself is inclined to re-

view the long-term effect of coal plant-emisssions in affected areas. In Paris Mr. Aquino delivered statements at the 21st Confer-ence of the Parties (COP21) to the United Nations Framework Con-vention on Climate Change and the CVF high-Level Event. “Drawing from our experiences as a vulnerable nation, the Presi-dent put forward our view that there needs to be a just and wide-spread solution to climate change,” Secretary Edwin Lacierda said. he recalled that in President Aquino’s arrival statement, “the President shared the good news that France and Germany now sup-port the commitment to keep global temperature increase limited to 1.5 degrees Celsius.” Lacierda added: “The President also shared that the CVF, for which the Philippines serves as chair, has been joined by 23 additional

members, further strengthening our position on the rights of cli-mate vulnerable nations.” Lacierda reported that, while in Paris, Mr. Aquino also attended a series of business meetings with companies like Sanofi Pasteur, which seeks to release a vaccine for all four dengue strains in the Philippines. President Aquino also met with officials of CRh France, which in-vested around P60 billion in Lafarge-holcim in the Philippines, the Palace official said. From Paris, Mr. Aquino head-ed for Rome, where he met with President Sergio Mattarella and Prime Minister Matteo Renzi, af-ter which a labor agreement was signed between Italy and the Phil-ippine government to "formalize the granting of a preferential sta-tus to Filipinos seeking to work in Italy.”

news@businessmirror.com.ph Tuesday, December 8, 2015 A5BusinessMirrorEconomy

Energy dept pushes for sustainable energy growth in this year’s NECM

Palace checking plans to fulfill Aquino’s commitment at Paris climate forum

Second, strong opposit ion from environmental groups and other sectors should also be seri-ously considered. “The issue also goes beyond if the Philippines can make nuclear power. There is a very strong environmental sentiment against it so it’s not an easy thing go through, as well,” Lopez said. Besides, the First Gen official pointed out, there are few resources to sustain the operation of a nuclear- power facility. “There are so few nuclear plants built in the world. The number of students getting into that field is actually very little. For those in the field already, I think more than half of them are actually retiring,” Lopez said. Apart from the construction cost, another important factor to be con-sidered is the cost to actually operate a nuclear power plant. “The chain of supply is only pro-duced by few suppliers in the world. For instance, for the containment vessel there are only two compa-nies that do that. So, the cost will

be affected. Many nuclear plants around the world always end up with cost over runs, 50 percent to 100 percent more than originally estimated,” Lopez explained. There is a mothballed nucle-ar-power facility in the country, the Bataan Nuclear Power Plant (BNPP). Talks on BNPP's revival started last year when some sec-tors cited that the BNPP, which has a 600-megawatt capacity, could help ease the country’s power sup-ply problems. The $2.3-billion nuclear power plant was built between 1976 and 1984 on a 357-hectare government reservation at Napot Point in Mo-rong. The property, where the BNPP is located, is owned by the Depart-ment of Finance. Former Energy Secretary Carlos Jericho Petilla had said that it will take $400 million to $600 million to revive the facility. Petilla had said the decision to revive or not the BNPP was not his call. Instead, he said, a nuclear regulatory body should be formed to study the proposal.

DOE’s Marcos urges Congress to legislate law on nuclear power

By Lenie Lectura

Various government agencies have convened to conduct studies on the possibility of

utilizing nuclear power in the country.

At least 67% of workers do overtime regularly

senate approves bills renewing franchises of radio, television networksThE Senate on Monday approved on third and final reading five local bills seeking to renew the franchises of several radio and television broadcasting services for a period of 25 years.

Voting 14-0, the Senate approved house Bill 5531, 5532, 5532, 5391, 5226 and 5227 which, if passed into law, would allow the Radio Mindanao Network, Interactive Broadcast Media Inc., Aliw Broadcasting Corp., Christian Era Broadcasting Service International Inc. and Eagle Broadcasting Corp. to continue their operation for another 25 years, subject to amendment, alteration or repeal by Congress.

Sen. Sergio R. Osmeña III, acting chairman of the Senate committee on public services, said the continued operation of the five radio and television networks would generate additional jobs, create career opportunities for the people and continue to provide the Filipino people with additional access to information to help them in their daily lives.

“Radio and television continue to deliver effective means of educating our people and keeping them informed despite the advancement of the internet as our primary databank of information,” Osmeña said.

“Broadcast media is particularly important in areas where reliable Internet connection is lacking,” he added.

According to Osmeña, the five networks had complied the requirements prescribed by law. he said the Securities and Exchange Commission, as well as the National Telecommunications Commission, had also no objection to the renewal of the franchises. PNA

bill proposes 1% of lgu i.r.a. share for elderly, persons with disabilityA LAwMAkER is pushing for a measure mandating the local government units (LGUs) to allocate 1 percent of their Internal Revenue Allocation (IRA) for programs, projects and activities (PPAs) of the elderly and persons with disabilities (PwDs). Liberal Party Rep. Alfredo D. Vargas III of Quezon City, vice chairman of the house Committees on health and on Social Services and author of the bill, said approximately 6.263 million senior citizens and 1.442 million PwDs are expected to benefit from this proposed legislation. The bill defines elderly or a senior citizen as any resident of the Philippines who are at least 60 years old. The bill has been referred to the Committee on Local Government. Jovee Marie N. dela Cruz

kpmg briefing on asean Emmauel P. Bonoan, vice chairman and COO of KPMG R.G. Manabat and Co., briefs the media on the highlights of KPMG’s 2016 annual investment guide, titled “Moving Across Borders: The Philippines and the Asean Economic Community,” in Makati City on Monday. NONOY LACZA

Tuesday, December 8, 2015 • Editor: Angel R. Calso

OpinionBusinessMirrorA6

Is the 2016 election in jeopardy?

editorial

Once again, the Philippines has shown itself incapable of handling the processes of a participatory democracy. The Supreme court (Sc) has issued a temporary restrain-

ing order (TRO) directing the commission on elections (comelec) to “desist from deactivating registered vot-ers without biometric information.”

The order came from a petition for certiorari and prohibition filed by youth groups led by Party-list Rep. Terry Ridon of Kabataan. The petition argues that the implementation “no Bio, no Boto” policy violates the con-stitution, since it adds a substantive requirement for Filipinos to be able to exercise their right to suffrage. It seeks to reverse the comelec Resolutions 9721, 9863 and 1013, and Republic Act (RA) 10367, otherwise known as an “Act Providing for Mandatory Biometrics Voter Registration.” The law and the rules from the comelec require “the deactivation of voters without digital photograph, signature and fingerprints in their registration records.”

To those that filed the petition, we say “nice timing.” In your quest to reverse an “injustice” that “gravely violates due process as it is an unreason-able deprivation of the constitutional right to vote for millions of Filipinos,” you may have just killed the 2016 elections.

RA 10367 became the law of the land and was signed by President Aquino on February 15, 2013. Apparently, Ridon was not aware of the law when the 16th congress convened on July 22, 2013. Further, Kabataan party-list said: “While it is good that the Sc has addressed this grave and urgent concern speedily, the youth will remain vigilant and on guard until no Bio, no Boto is declared unconstitutional with finality.”

However, Ridon on October 15 asked the comelec for an extension of the period for voters to obtain biometric registration. When that request was denied by the comelec, now suddenly the law that he requested a change in the implementation rules becomes “unconstitutional.”

We will not dispute the validity or not of the claim that RA 10367 is un-constitutional. That is the job of the Sc. However, the timing of the petition could not be worse.

comelec chairman Andres D. Bautista warned of a possible postponement of next year’s elections if the Sc fails to lift the TRO on the comelec’s no Bio, no Boto campaign. While that may be an exaggeration, it is certainly true that the comelec needs all the time it can get to make sure the voters’ list is sound and truthful.

However—and this is critical—if the Sc is forced to eventually rule on the constitutionality of the law before an election can proceed, we would remind Ridon that it took 10 years to resolve the constitutionality issue of the 1995 Mining Act. We will wait for the petitioners’ response to that thought.

‘THOSe who do not remember the past are condemned to repeat it,” so said the Spanish philosopher known as George Santayana. His words are usually misquoted as

“Those who do not remember history...”

By Michael R. Bloomberg | Bloomberg View

THe two-week United nations (Un) conference on climate change is halfway over, and no matter what else happens, it has already been a clear-cut success in two critical areas.

2016: The year of political change

What Paris talks have accomplished so far

But what if the past—or history— naturally repeats as a cycle exactly as the progression of the seasons or life itself? Why should our economic and social world operate any differently than our natural world and even our own birth-life-death cycle?

The way that humans view cycles is important to consider. Sometimes a change from one cycle phase to another can be as pronounced as an intersection in the highway with flashing lights and, maybe, a whistle where you make a clear turn. Yet, we also know that night changes to day not like turning on an electric light switch but gradually as the sun rises.

What day did World War II start? Was it September 1, 1939, when Germany invaded Poland, or July 7, 1937, when the “Marco Polo Bridge Incident” led to war between Japan and china? Theoretically, we can only plot these events in 20/20 hind-sight. Or are there clear and definite cycles in order to “predict” the future?

A s a corol lar y to Mart in

Armstrong’s economic confidence Model that I have spoken of many times before, is a Political cycle of 52 years. The peaks of this cycle include 1860, 1912, 1964 and, of course, 2016. now you are going to say this is all coincidental, and the “facts” are being manipulated to fit the dates. So be it. But let’s look at those years from a US perspective, and if there might be some significance that changed the future political picture.

In 1860 Abraham Lincoln was elected president of the US, run-ning on a platform of opposition to allowing slavery to be expanded to US territories. Lincoln was supposed to be the moderate voice on the is-sue, but his election led directly to the American civil War. As a result of the war, political and government power began shifting from the states to the national government.

A less dramatic event that did not seem “political” at the time was the proposal of the Federal Reserve Act in 1912, passed in 1913. This single

As important as a global accord is, the most influential actors on climate change have been cities and businesses, and leaders in both groups made it clear that they will not wait for an agreement that, if it comes together, won’t even take full effect until 2020.

Mayors and officials representing more than 500 cities organized and attended their own summit in Paris (which Paris Mayor Anne Hidalgo and I cohosted). It was the first time local lead-ers had ever gathered in such numbers during a Un climate-change conference. They came not only to ensure that their voices were heard by heads of state, but also to express their determination to act on their own, and to learn from one another and share best practices.

cities account for about 70 percent of global greenhouse-gas emissions, and while some heads of state have been argu-ing over which countries should do more, cities recognize that reducing their emis-sions is in their own best interest. After all, when cities cut their emissions, they help their residents live longer, healthier

lives. When they improve the energy efficiency of their buildings, they save their taxpayers money. When they invest in modern low-carbon infrastructure, they raise their residents’ standard of living. Taken together, these actions make cities more attractive to businesses and investors. even if climate change were not a concern, reducing emissions would be smart policy.

city leaders rarely need to be con-vinced of the benefits of climate-related actions, and in Paris, they committed to doing more. By Saturday more than 400 cities had signed the compact of Mayors, which requires them to set bold climate goals, adopt a common measure-ment system for emissions and publicly report their progress. If so many cities can agree to these three actions, why not nations? The compact of Mayors is the best insurance we have against backslid-ing by central governments, and it’s the best hope we have—along with techno-logical innovation—for accelerating the pace of change in every region of the world over the next five years.

event evolved and cascaded around the globe, giving government power over economies and the banking sys-tem and, therefore, the way politics is conducted and its alliance with big business unlike any time in pre-vious history.

The civil Rights movement had been brewing for several years. But in 1964, the civil Rights Act was passed, outlawing discrimination in voting, employment and education, chang-ing the US political landscape forever.

In the Philippines, 1860 very quietly marked the first rumblings of Filipino nationalism. Around this time, both Fr. Pedro Peláez and Fr. Mariano Gómez began calling for Filipino priests to be treated equally with their Spanish counterparts. By 1864 Fr. José Burgos was attracting the attention of Spanish authorities.

In the US election campaign of 1912, the “Jones law,” giving the Phil-ippine full independence, was first proposed by Woodrow Wilson who would win that election. In 1913 the law was first passed in the US House of Representatives.

Finally, in 1964, Ferdinand Mar-cos campaigned for his first term as President of the Philippines.

Here are some other political events of 1964 that came with the po-litical cycle changing. nelson Man-dela is sentenced to life imprison-ment in South Africa. The Palestine Liberation Organization is officially established. nikita Khrushchev is de-posed as leader of the Soviet Union.

The year 2016 though marks a

change of a cycle even longer than 52 years because it also coincides with both other economic and war cycles. This is the period when the people lose faith in the current government establishment and turn even to the complete opposite. We are seeing this continually. Venezuela has just rejected the 19-year socialist party rule legacy of Hugo chavez. France’s anti-europe, anti-immigration party came first in six regions out of 13. In the last election they won in only one region.

We can add Venezuela and France to this list of nations that have or are poised to reverse their present political course going into 2016: Argentina, Brazil, canada, Guate-mala, Greece, Myanmar, Poland, Por-tugal and Spain. If the US presiden-tial election were held today, a man who has never held political office, Donald Trump, would beat the Grand Matron of the 30-year clinton politi-cal machine, in a landslide.

Here it is six months before the Philippine elections and we don’t even know who is legally running. The anointed candidate of the cur-rent administration is not close to leading the opinion polls. no, it is not a coincidence; it is a cycle.

  E-mail me at mangun@gmail.com. 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.

The private sector will drive tech-nological innovation, but the pace of change is being artificially slowed by a market failure: the inability of inves-tors to accurately value companies that carry climate-related risks. That will soon start to change.

On Friday in Paris, Mark carney, chairman of the Group of 20’s Financial Stability Board, announced the creation of the Task Force on climate Related Financial Disclosures (which I agreed to serve on as chairman). carney is creat-ing this industry-led task force, which will build on the work of other organiza-tions in this field, to bring transparency to the opaque risks that climate change presents to markets around the world.

Sea-level rise, storms, droughts—they all have harmful effects on business: delaying shipping, disrupting supply lines and damaging facilities. Yet, inves-tors are often flying blind when it comes to these and other climate-related risks.

The market cannot accurately value companies, and investors cannot effi-ciently allocate capital, without reliable data on the risks they face. Furthermore, as the world transitions to a low-carbon economy, structural shifts in carbon-heavy industries will occur that will affect their growth and employment. Investors ought to have reliable infor-mation about which, and to what extent,

companies are exposed to those shifts. That requires common measuring and reporting systems, which the new task force will work to create.

To be clear: Disclosure will be vol-untary, and the task force will not seek to change laws about what must be dis-closed by companies. Our aim will be to make disclosure easier, more complete and more useful to companies and in-vestors. We expect strong participation from the financial sector, because the true beneficiaries of this information will be financial firms and investors. The better data they have, the better chance we have of mitigating market volatility and instability that arises from climate change and the policy responses to it.

The work that cities and businesses are doing will play a central role in the fight against climate change. In fact, even though any global agreement may not hold the planet’s temperature rise to 2 degrees celsius, the events of the first week have the potential to narrow the gap between what nations are willing to do and what scientists tell us is necessary to avert to the most harmful effects of climate change.

cities and businesses can achieve re-ductions that go well beyond the pledges made by nations, and that will put the future of the planet— and markets—on firmer footing.

OUTSIDE THE BOXJohn Mangun

Tuesday, December 8, 2015

OpinionA7BusinessMirroropinion@businessmirror.com.ph

THE EnTrEprEnEurManny B. Villar

Why the government should stay in hospital business

Second of two parts

I surfed the Internet in search of information on recent or ongoing “government hospital construction projects.” I found none. Instead, I saw a PowerPoint presentation

from the department of Health (dOH) titled “Public-Private Partnership Program in Health,” which outlined the government’s health agenda.

The presentation listed numerous modernization projects, from the expan-sion of existing facilities to acquisition of modern medical equipment, which would be done in partnership with the private sector.

The last slide, which made me some-what apprehensive, stated that “Hospi-tals will reduce their dependence on the national subsidy for their operational needs [personal services and MOOe] and will move toward an efficient and effective fiscal discipline that will sup-port the hospitals’ operational needs.”

reducing government funding for the operations of public hospitals means transferring the financial burden to another. The last part of the statement, “move toward an efficient and effective fiscal discipline that will support the hospitals’ operational needs,” obviously points to the patients, or the public, as the new source of funding.

strictly speaking, that will make the government or public hospitals no dif-ferent from private hospitals. The state-ment did not use the word “privatization” but the first public-private partnership project of the dOH, the modernization of the Philippine Orthopedic Center,

gives the private partner a 25-year con-cession to operate the new facility. (Last month the contractor withdrew from the project.)

Let me reiterate that the entry of the private sector in the hospital business is a positive development for the health of the people. Also, the government alone cannot meet the requirements for new hospitals, which the Private Hospitals Association of the Philippines (PHAP) last year estimated at 100 for the next three years. According to PHAP, the country currently has 1,800 hospitals, both private and government-owned, with a total of 77,000 beds.

The Philippines, based on a report from Zuellig Pharma, has an average of 10 hospital beds for every 10,000 peo-ple, one of the lowest in the world, and much less than the average 20 beds for every 10,000 people in the united states and Britain.

As a businessman, I agree with the universal view that the government is a bad businessman, and it should leave business to the private sector. The pri-vate sector looks at a hospital as a busi-ness establishment, which is expected to generate revenues and yield profits from

treating and taking care of sick people who can afford to pay.

However, because of its constitution-al mandate, the government cannot treat a hospital as strictly business. section 15, under “state Policies” of the 1987 Constitution provides that: “The state shall protect and promote the right to health of the people…”

A study by the World Health Orga-nization (WHO) showed that about 60 percent of national health expenditures go to the private sector, which also em-ploys more than 70 percent of all health professionals in the Philippines.

The private health-care providers, which are largely market-oriented, pro-vide services to an estimated 30 percent of the population, who can mostly afford to pay the hospital and professional fees.

Thus, the majority, or 70 percent of the 100 million filipinos, still look at gov-ernment hospitals for consultation, diag-nosis and treatment when they get sick.

This is why I suggested in last week’s column that the government, taking advantage of the growing economy and its healthy finances, to continue build-ing hospitals in different parts of the country, so even those in remote areas will have access to affordable health care.

Aside from expanding the network of public hospitals, the government must also strengthen the national health insurance program, more commonly known as Philippine Health Insurance Corp. (PhilHealth). The program is al-ready benefiting a lot of filipinos, and it is fair to say that, because of PhilHealth, more filipinos are now encouraged to go the hospitals when they become ill.

The PhilHealth said that in 2014 it paid out a total of P78.18 billion in ben-efits. for the first six months of 2015, PhilHealth benefits amounted to P44.44 billion. And PhilHealth estimates that it now covers 99 percent (as members, dependents or beneficiaries) of the country’s estimated population of 101.45

million. except for the new service that allows PhilHealth members to get free medical checkups, the insurance pro-gram generally does not cover expenses for medicine and laboratory procedures unless the patient is confined.

PhilHealth must be flexible enough to reflect innovations in health care in its benefits package. for example, while PhilHealth subsidizes surgery or radia-tion therapy for some types of cancer, it does not extend financial help for the purchase of anticancer medicines for outpatients.

Oncologists in the Philippines are now prescribing newly developed chemo-therapy drugs in the form of tablets, which can be taken at home, instead of the intravenous (and more physically exhausting) chemotherapy medicines. The new drugs, however, are expensive, with the 200-milligram tablets costing as much as P2,500 each.

In the light of recent controversies re-garding schemes used by some hospitals or doctors to increase their PhilHealth claims, the agency must strengthen its monitoring and evaluation procedures.

PhilHealth subsidies are supposed to reduce the financial burden on patients but unscrupulous hospitals, instead of deducting the PhilHealth subsidy, may just add it on top of the regular bill. The patients (and PhilHealth) end up paying more.

The expansion of PhilHealth’s mem-bership and benefits has made it a reliable source of revenues for private hospitals. According to the WHO, private health- care providers derive a significant por-tion of their incomes from PhilHealth payments because majority of PhilHealth members are private-sector employees and usually go to private hospitals for health care.

For comments, e-mail mbv.secretari-at@gmail.com  or visit www.mannyvil-lar.com.ph.

Edgardo J. Angara

NegOTIATIONs for a legally binding deal on reducing global greenhouse-gas (gHg) emissions are under way in Le Bourget, Paris, where more than 100 world leaders,

including President Aquino, have convened for the 21st Conference of Parties (COP 21) to the united Nations framework Convention on Climate Change (uNfCCC). 

Decarbonizing the future

Over the weekend, negotiators revealed and adopted a draft of the global climate-change pact to the guarded optimism of many analysts and observers. Many contentious is-sues have yet to be ironed out.   

There is scientific consensus that the world needs to reduce current gHg emission levels by 70 percent before 2050 to keep the average rise of global temperatures below the 2°C threshold. global warming beyond that threshold spells global catas-trophe as typhoons are projected to become even fiercer and more frequent, and droughts hotter and lasting longer.

Past attempts at a global deal on reducing gHg emissions have failed. This time around, when av-erage global temperature had risen by 1°C, a “no deal” is not an option.  Analysts have noted that even while the two top emitters (China and the us) recently came to an accord, the combined commitments made dur-ing the Paris negotiations achieve only a third of what is needed.

And this is because one con-fronts a sticky reality—economic development, which every nation owes its communities, is still a carbon- and emissions-intensive endeavor. While some have called

for the roll-out of carbon taxes and “cap-and-trade systems” to manage emissions, a more long-term approach would be to focus on developing and deploying sus-tainable energy technologies—or as a recent New York Times article said, “…to help the world’s poor, and everybody else, onto a path to progress that doesn’t rely on burn-ing buried carbon.” 

One author proposes that a “space race approach” is needed for the plan-et, where large investments (both public and private) are directed and sustained toward researching and developing clean energy and energy- efficiency technologies. 

International energy Agency (IeA) executive director Maria van der Hoeven has pointed out in a speech this year, though, that ramp-ing up investments in clean energy development and deployment is not happening fast enough, noting that annual government spending today on energy research and development (r&d) was only $17 billion.

The IeA recommends that thrice this amount (roughly $51 billion) should be invested each year to keep global warming below the 2°C threshold by 2050.  This amount may

be staggering but is considerably affordable, considering that Oxfam International estimated that devel-oping countries could incur $1.7 tril-lion in economic damages each year if global average temperatures rise above the 2°C threshold by 2050. 

Hopefully, something positive may have occurred in Paris.  On the sidelines of COP 21 last Monday, “Mission Innovation” was launched as a 21-nation initiative (that includes the us, Britain, Australia, germany, China and Brazil) toward doubling the amount of public money going into clean-energy innovation, r&d. 

At the same time, Bill gates (cofounder of Microsoft), Mark Zuckerberg (cofounder of facebook), richard Branson (chairman of the Virgin group) and a host of billion-aires, philanthropists and entrepre-neurs announced they were creating a Breakthrough energy Coalition that hopes to pour billions of dollars into clean-energy start-ups in a bid to jump-start a clean-energy revolution.

Clearly, to achieve a future where economic development is “decarbon-ized,” the world needs to chart new technological paths.  

 E-mail: angara.ed@gmail.com.

PresIdeNTIAL aspirant sen. grace Poe need not fear that her name will be deleted in the official ballots for the 2016 polls after her recent disqualification by the second division

of the Commission on elections (Comelec).

When will Poe’s political woes end?

ABOuT TOWnErnesto M. Hilario

That is, if the poll body heeds the advice of its former chairman, sixto Brillantes Jr. Brillantes was our resource per-son at last saturday’s forum@Anna-bel’s and one of his key points was that Poe’s name should be included in the list of candidates in the 2016 presidential elections pending reso-lution of her disqualification case before the Comelec as she could bring her case all the way to the supreme Court (sC). According to Brillantes, it is not outside the realm of possibility that the sC might decide in favor of Poe: “If that would be the case, then how can you return Poe’s name in the ballots that were already printed.” should Poe lose in the High Tribunal, then the votes for her will simply not be counted or considered stray votes. Brillantes also urged the Com-elec to immediately resolve all the disqualification cases filed against Poe and fellow presidential bet davao Mayor rodrigo duterte before the of-ficial printing of the ballots or before January 15, while the sC is not yet in recess. The former poll chief explained that each candidate facing disquali-fication would surely appeal before the high court should the Comelec fa-vor the petitions filed against them. “They should move fast to resolve these cases immediately. Whatever their decision may be, all petitions should be consolidated for the su-preme Court to decide,” he said. With the sC usually taking a Christmas holiday break, then any appeal beyond december 15 would not be heard nor decided upon by the magistrates because they are in recess. After the Comelec’s second divi-sion granted the petition for Poe’s disqualification filed by lawyer estrella elamparo over an alleged material misrepresentation in her certificate of candidacy (COC), she urged the Comelec not to print Poe’s name on the ballots. elamparo said the Comelec should delay the print-ing of the ballots for the 2016 polls until after the high court decides with finality on the merits of the disqualification cases against Poe. Meanwhile, Comelec spokesman James Jimenez said Poe’s name might be included in the list of candidates that would be printed on the official ballots for the 2016 polls: “If there is a case that has not been resolved with finality, the tendency will be to put the name of the candidate on the list. It doesn’t matter who.” “If a person has a pending motion with anybody that may have an ef-fect on the candidacy, and they’re put on the ballot, it’s easier to ignore the votes cast for that person than to take them out of the ballot and then later on find out that they should have been on the ballot in the first place,” Jimenez added. It’s not only Poe who is facing a disqualification case before the Comelec. duterte also faces a similar case before the poll body, which is being asked to declare null and void the COC of Martin diño, who was originally PdP-Laban’s presidential candidate but later on withdrew his candidacy. Brillantes said the Com-elec should allow duterte to run in the 2016 polls. With the slew of disqualification cases versus Poe, duerte’s candidacy also being questioned, Binay already charged for alleged corruption and facing the threat of arrest, and san-tiago apparently not serious in her presidential bid, who’s going to be left standing by May 2016?

5 ways to restore peace in the South China Sea WITH our territorial dispute with China over some islands in the south China sea under international arbi-tration, we can probably pick up a thing or two from the “south China sea Peace Initiative” unveiled by re-public of China President Ma Ying-jeou in May this year. The Taiwan government seeks to uphold the basic principles of safeguarding sovereignty, shelving disputes, pursuing peace and reci-procity, and promoting joint devel-opment by exploiting resources in the south China sea in cooperation with the other parties. Taiwan has said it is prepared to actively participate in related dia-logue and cooperation mechanisms to resolve disputes through peaceful means, safeguard regional peace and promote regional development. To advance regional peace and prosperity amid rising tensions in the south China sea, Taiwan, draw-ing from its successful peace-mak-ing experiences in the east China sea, has proposed a five-point peace plan. first, exercise restraint, safe-guard peace and stability in the south China sea, and refrain from taking any unilateral action that might es-calate tensions. second, respect the principles and spirit of relevant international law, including the Charter of the united Nations and the united Na-tions Convention on the Law of the sea, peacefully deal with and settle disputes through dialogue and con-sultations, and jointly uphold the freedom and safety of navigation and overflight through the south China sea. Third, ensure that all parties con-cerned are included in mechanisms or measures that enhance peace and prosperity in the south China sea, e.g., a maritime cooperation mecha-nism or code of conduct. fourth, shelve sovereignty dis-putes and establish a regional cooperation mechanism for the zonal development of resources in the south China sea under integrated planning. And fifth, set up coordination and cooperation mechanisms for such nontraditional security issues as environmental protection, scientific research, maritime crime fighting, and humanitarian assistance and disaster relief. Taiwan says it is willing to work with the other parties concerned to implement the spirit of the south China sea Peace Initiative in order to resolve disputes and jointly de-velop resources, thereby making the south China sea a “sea of Peace and Cooperation” similar to the east China sea. “We provide a pragmatic and forward-looking course of action, before a major conflict breaks out,” Taiwanese President Ma told an international gathering of lawyers earlier this year. “Whether in the Taiwan strait, east China sea, or south China sea, our approach is the same—to resolve disputes through peaceful means.” Hassle-free travel Here’s a useful tip for harried mo-torists: You shouldn’t unduly worry over the long queue and the need to prepare exact amounts when paying toll as you can use the easytrip tag for North Luzon expressway and easy-drive rfId tag for Manila–Cavite expressway for a fast, cashless and hassle-free journey.

Opec’s divisions keep oil low and volatileBy Mohamed A. El-Erian

Bloomberg View

THe failure of the Organization of the Petroleum exporting Coun-tries (Opec) to reach any meaning-

ful agreement at their meeting in Vienna on friday confirmed that the historic storm besetting the oil market has mark-edly reduced this once-powerful group’s effectiveness and influence.

far from adding an element of sta-bility, an internally divided Opec will contribute to further volatility in  oil markets, with prices remaining low for longer than many anticipated.

The  oil market  is being battered by a perfect storm, as three distinct forces come together. The supply side has been destabilized by the rapid en-croachment of shale energy technol-ogy. The demand side is undermined by declining global growth in general, and the sharper relative fall in emerging

economies in particular. Third, the role of “swing producer” on the downside once played by saudi Arabia and some of its Opec partners—by reducing output when prices are low—has de facto been taken over by the us. This has shifted the mechanics of the market from dis-crete decisions on tightening supply to waiting for natural market supply and demand forces to set the pace.

The resulting collapse in  oil pric-es sharply reduces export earnings of all producers. But their resilience, including the ability to manage their economies with lower income, varies significantly.

some, such as saudi Arabia and the united Arab emirates, have sufficient financial reserves, other accumulated wealth, debt capacity and policy flex-ibility to manage the longer-term tran-sition to an oil regime in which many of the nontraditional suppliers will be knocked out by lower prices. Others, including Venezuela, are being desta-

bilized in ways that extend well beyond economic and financial factors and pro-duce a growing possibility of political and social turmoil. Put these two sets of actors together in a negotiating room and the scope for disagreements is con-siderable, if not guaranteed.

Hoping to camouflage the degree of internal division, Opec’s official state-ment on friday noted that, “in examin-ing the current status of the oil market, the conference respected the input and ideas of all member-countries to find ways and means to deal with the chal-lenges they are facing in the global oil market today.” But when it came to ac-tion, the statement offered rather feeble guidance: “Member-countries should continue to closely monitor develop-ments in the coming months.”

In the absence of any new agreement, Opec has officially kept in place exist-ing production quotas until the min-isters meet again in June. In practice,

individual member-states will not feel constrained by any Opec agreements on output levels. As a result, they all are likely to produce as much as they can, but each will be doing so for its own reasons.

for better-off Opec members, pro-ducing more today is intended to secure a better competitive position in the fu-ture, exchanging sacrifice now for the well-being of future generations. for the struggling countries, the goal is to generate as much income as possible, and as soon as possible, to avoid major inter-nal dislocations in the next few months.

Barring a major geopolitically driven shock, this set of dynamics will mean that oil prices will stay low and volatile for a while. Over time, this price configura-tion will drive out the higher-cost energy producers and encourage higher demand, which would restore Opec’s influence. In the short-term, however, the group will have little influence in stabilizing this unhinged oil market.

In an ADB Brief, the ADB said this estimate is based on new expec-tations that greenhouse-gas (GHG) emissions in Southeast Asia will be at least 60 percent higher in 2050 com-pared to the ADB’s earlier estimate.  “The economic costs of not reining in greenhouse-gas emis-sions are more serious than we previously estimated,” ADB chief economist Shang-Jin Wei said. “At the same time, this new study

also shows that reducing emissions and stabilizing the climate will produce benefits and avoid losses for Southeast Asia, which, in the long run, sharply outweigh the costs of action.” The ADB said the absence of poli-cies that seek to reduce future emis-sions has also increased energy-sector emissions by 300 percent in the region. It added that these losses add up from climate change’s ill effects on agricul-

ture, tourism, energy demand, labor productivity, catastrophic risks, health and ecosystems.  The study recommended that the region step up efforts on en-ergy efficiency with technologies that improve and reduce power use, which is found as the biggest source of long-term emissions reduction. To reduce emissions, the ADB said, addressing deforestation is needed. Preventing further de-forestation represents the lowest cost opportunity for emissions reduction and could generate half of the cumulative regional mitiga-tion through the mid-2030s. Reducing emissions is also con-tingent in developing and introduc-ing low-carbon energy technologies, which would allow the GDP cost of decarbonization to peak within 20 to 25 years.  “Carbon capture and storage is a key technology to reduce emissions that the region should explore fur-ther,” the ADB said.  Meanwhile, the study also quanti-fied the net benefits that the region can gain from initiatives to stabilize the climate, which are estimated at as much as five to 11 times more than

the net costs.  However, the ADB noted, only when emissions are reduced can benefits from climate change be obtained. These benefits include increased crop yields, improved air quality and better transportation. “Those steps are also found to cost less as a share of GDP than the region has already been spending on energy policies, such as fossil-fuel subsidies,” the ADB added. The ADB Brief, titled “Southeast Asia and the Economics of Global Climate Stabilization,” was released during the 21st session of the Confer-ence of Parties conference on climate change in Paris. The study looked at the economic impact of climate change across a range of scenarios, including a business-as-usual tack, and another that sees countries taking steps to limit their GHG emissions to keep temperatures from rising above 2 degrees Celsius.  The analysis focuses on the region’s five largest economies—Indonesia, Malaysia, the Philip-pines, Thailand and Vietnam—that account for 90 percent of the region’s emissions.

By Cai U. Ordinario

The Philippines and other Southeast Asian economies stand to lose 11 percent of

its GDP by 2100 if they operate under a “business-as-usual” scheme instead of dealing with climate change, according to the Asian Development Bank (ADB). 

A8

2ndFront PageBusinessMirror

www.businessmirror.com.phTuesday, December 8, 2015

ECONOMISTS TRIMFORECAST ON U.S.ECONOMIC GROWTHBusiness economists are slight-

ly less bullish about prospects for economic growth next year,

according to a survey published on Monday. The national Association for Busi-ness economics says the average fore-cast is for growth of 2.6 percent next year, down slightly from 2.7 percent in its previous survey conducted in september. But they expect the jobs market to continue strengthening, with the unemployment rate drop-ping to 4.7 percent by the end of 2016. The rate now stands at 5 percent. The survey, conducted from no-vember 6 to 8 among a panel of 49 business economists, struck a slightly downbeat note, as experts lowered ear-lier forecasts on a variety of measures of economic health, including housing starts and industrial production. Further out, two-thirds of those surveyed expect potential economic growth between 2 percent and 2.5 percent over the next five years. High-lights of the association’s survey: ■ Lower growth: in addition to the lowered forecast for GDP next year, economists cut their expec-tation for this year. GDP is now ex-

pected to grow 2.4 percent in 2015. A year ago economists expected robust growth of 3.1 percent this year, which would have been the strongest since 2005. ■ More hiring: employers are ex-pected to continue hiring more than 200,000 workers each month through next year. Pay for workers is expected to pick up, too. The average forecast is for hourly compensation to rise 2.8 percent next year, up from 2.2 percent expected this year. ■ Fed hike: Most of the econo-mists in the survey believe the Federal Reserve will begin raising short-term rates from record lows at its next two-day meeting starting on December 15. They expect steady, but modest increases next year. ■ Higher borrowing rates: The yield on a key government bond that impacts rates on car loans, mortgages and other types of loans is expected to rise sharply, but not as fast as ear-lier forecasts. economists expect the yield on the 10-year Treasury note to rise to 2.88 percent by the end of next year versus 2.27 percent on Friday. They had earlier forecast the yield to rise to 3 percent. AP

‘Business-as-usual tack on climate change costly’

YukiYa amano (left), director general of the international atomic Energy agency, and Science Secretary mario G. montejo lead the attendees to the Third Philippine nuclear Congress, with the theme “meeting Challenges through nuclear Science and Technology for Sustainable Growth.” NONIE REYES

By Lyn ResurreccionScience Editor

THE head of the United Nations International Atomic Energy Agency (IAEA) on Monday

said that, despite the nuclear-plant accident in Japan in 2011 that has led to the closure of all nuclear plants in that country, 441 nuclear power plants are still operational in 30 countries and 65 new reactors are being built. At the same time, IAEA Direc-tor General Yukiya Amano also said in his keynote address at the Third Philippine Nuclear Congress at a hotel in Manila that nuclear power could contribute to the mitigation of climate change, an issue which world leaders are currently discussing at a conference in Paris. Amano said nuclear power “does not emit climate-change gas” because it emits minimum carbon. It is one of the lowest emitters of carbon dioxide, when emissions through the entire life cycle are considered, he said. “It contributes to the mitigation of climate change,” he told the congress, which has the theme “Meeting Chal-lenges through Nuclear Science and Technology for Sustainable Growth.” Director Alumanda de la Rosa of the Philippine Nuclear Research Institute (PNRI) told the Business-Mirror that nuclear power is com-parable to wind power in emitting the least volume of carbon dioxide. “Despite the Fukushima Daiichi accident in 2011, many countries believe nuclear power can help them to achieve the twin goals of increasing electricity supply while curbing greenhouse-gas emis-sions,” Amano said. He added that many countries use nuclear power in their energy mix be-cause it can provide the steady sup-ply of baseload electricity needed to power a modern economy. Amano said: “There are 441 nu-clear power reactors in operation in 30 countries today, while 65 reactors are under construction. Most of the growth is happening in Asia.” He said safety is the key to the fu-ture development of nuclear power. The safety record of the nuclear in-dustry “is actually very good.” “But the Fukushima Daiichi ac-cident was a painful reminder that a terrible accident can happen any-where, even in a developed industrial

Despite Fukushima: 441 nuke plants still operational, 65 new plants being built

country,” he said. Five years after the accident, he said “necessary lessons have been learned.” He added that “extensive improvements in safety have been put in place all over the world” and “nuclear power is much safer [now] than it was before the accident,” al-though “nuclear safety will always be a work in progress.” Technologically, this is an “excit-ing time for nuclear power” because remarkable research is being done on new generations of reactors, which will be safer and generate less waste. “I am confident that technologi-cal developments already in the pipeline will make nuclear power

not just safer, but much more effi-cient. I look forward to the develop-ment of new nuclear technologies which can generate electricity at competitive prices, with reduced construction times and operating costs,” Amano said. Asked by the BusinessMirror at a news conference on whether the future of Bataan Nuclear Power Plant (BNPP) will be resolved in the nuclear congress, Science Secretary Mario G. Montejo said the decision would be based on inputs of differ-ent stakeholders. He expressed hope that the congress would provide update on the BNPP, which construction was finished in mid-1980s but was mothballed in 1986,

owing to protests. Montejo said the activation of BNPP might still be considered even beyond 2016. Amano said IAEA does not inter-vene in the position of each coun-try on nuclear power generation. “It is up to the government of the Philippines on whether it will use it [BNPP].” However, he said the agency pro-vides support for legal and regulatory framework, and offer know-how on the construction, commission-ing, start-up and safe operation of nuclear reactors. “We establish global nuclear safety standards and security guid-ance. We offer expert peer review

missions to assess the operational safety of nuclear power plants. We can help with the decommission-ing of plants at the end of their lifetimes and with waste disposal. The end-result, we hope, is that countries will be able to introduce nuclear power safely, securely and sustainably,” he said. On the controversial issue of re-pository of spent nuclear fuel and high-level waste, Amano said Fin-land has recently issued a licence for the construction of a deep geological repository at Onkalo. “Expected to be operational in 2023, this will be the first repository in the world for the permanent dis-posal of spent nuclear fuel,” he said.

“During Obama’s visit here, he instructed the USTR to talk to our trade department for the specific steps to our accession to the TPP. It’s good that our interest to join was welcomed, but the tangible steps are more important,” Rodolfo noted.  The Philippines had previously conducted technical discussions with Malaysia, the US, New Zealand, Australia, Mexico and Canada. Government officials and economists have long observed that the country’s nonparticipation in the TPP will lead to a significant disadvantage, including the expected trade and investment diversion to Vietnam.  Dr. Cielito Habito, former director general of the National Economic and Development Authority, cited a study noting that the TPP can increase exports by up to 42 percent and raise GDP by up to 5 percent. Traders need preferential agreements with the country’s trade partners, especially now that they face higher costs, as port operators are expected to implement hikes in cargo-handling fees by year-end.  At the Export Policy Reform updates session, Export Development Council Deputy Executive Director Emmerita Z. Mijares warned traders that their cost of doing business may go up again as Asian Terminals Inc. and the International Container Terminal Services Inc.  will increase their cargo-handling fees for foreign containerized and non-containerized cargo.  A memorandum circular issued by the Philippine Ports Authority on November 28 confirmed that it has approved an 8-percent upward adjustment for cost recovery on vessel and cargo charges and other handling charges for international containerized and non-containerized cargoes at South Harbor and Manila International Container Terminal.  The adjustments will take effect on December 28. 

TPP. . . Continued from A1