Rice imports still under study after typhoons

Posted on December 28, 2016

THE GOVERNMENT is waiting to assess the impact of three

typhoons on major rice-producing provinces in the fourth
quarter before deciding whether it will resort to rice
imports next year, the National Food Authority (NFA) said.

The NFA said it has a pending proposal for another 250,000 metric tons of government-to-
government rice imports in the first quarter of 2017, which remains subject to approval.

The NFAs recommendation for rice importation is still for evaluation of the NFA Council,
said Marietta J. Ablaza, spokesperson for the state-run agency, in a phone interview last
week.

Among the factors being evaluated were the impact on production of typhoons Karen and
Lawin, which hit the country in October, and typhoon Nina this week.

The importation deal, should it push through, will be slated under a government-to-
government procurement scheme.

Typhoons Karen and Lawin caused estimated losses of 516,133 MT of palay, or unmilled
rice, valued at P11.03 billion, according to the Department of Agricultures Nov. 4 damage
report.

The Philippine Statistics Authority reported that palay output may come in at 17.91 million
MT for 2016, lower than the 2015 total of 18.15 million MT, after a prolonged dry spell
reduced the area harvested this year.

In a statement released over the weekend, the NFA, however, assured that rice stocks are
sufficient in typhoon Nina-affected areas with the agencys release of more than 10,000 50-
kilo bags for distribution to typhoon victims.

The National Economic and Development Authoritys (NEDA) director for agriculture,
natural resources and environment, Mercedita A. Sombilla, who chairs the NFA Council, said
that the domestic supply and demand situation of rice will still have to be assessed some time
in January.

Even in light of the recent typhoon, Ms. Sombilla said that the government sees no urgent
need for the Philippines, one of the worlds top rice importers, to open up orders for imports.

We are still assessing damage to agri. I would think (it is) not necessary since all rice planted
are supposed to be harvested now, Ms. Sombilla, also a NEDA Assistant Secretary, said in a
text message on Tuesday.

On Monday, the typhoon cut through southern Luzon and the eastern Visayas, according to
the Philippine Atmospheric, Geophysical and Astronomical Services Administration, the
weather bureau also known as PAGASA.

The country has 250,000 metric tons remaining from a standby authority to import 500,000
MT approved by the previous government.

As of Nov. 1, rice stocks stood at 3.30 million MT, sufficient for 97 days of consumption.

The initial 250,000 MT standby authority was awarded to the worlds top rice exporters on
Aug. 31 -- with Thailand and Vietnam winning 100,000 MT and 150,000 MT, respectively,
under the government-to-government import scheme.

In addition, the NFA in September opened up to private traders the importation of an

additional 805,200 metric tons of rice under the minimum access volume (MAV) scheme.

The MAV rice importation program allows private traders to apply for the delivery of
293,100 MT each from Thailand and Vietnam.

Under the omnibus origin scheme, importers can also buy up to 50,000 MT each from China,
top suppliers India and Pakistan, up to 15,000 MT from Australia, up to 4,000 MT from El
Salvador, and 50,000 MT from any other country.

In its list of applicants posted Dec. 21 on its Web site, the NFA has so far authorized
shipments totaling 641,080 tons from Thailand, Vietnam, Pakistan, and India.

All rice under the MAV importation scheme is expected to arrive in the country not later than
Feb. 28 next year and is subject to a 35% tariff. -- Janina C. Lim

Population projected at 105 million by end-2017

Posted on December 30, 2016
THE population of the Philippines is projected at 105 million by the end of 2017, driven
by continuing high levels of fertility among women of childbearing age.
According to the Commission on Population (POPCOM), the expected Philippine population
will reach 105.759 million by Dec. 31, 2017.

The continuing increase in population is due to relatively high fertility rates of Filipino
women which is 3 children on average, POPCOM Executive Director Juan A. Perez III said
in a statement.

Mr. Perez added that of the 17 regions in the country, eleven have fertility rates higher than
the national average.

ARMM, Bicol and Western Visayas continue to have rates ranging from 3.8 in Western
Visayas to 4.1 in Bicol and 4.2 in ARMM, said Mr. Perez.

There will be an increase in the number of adolescent girls aged 10 to 19 as POPCOM

expects the fertile female population in that age group to reach 27.293 million.

By 2022, the population commission expects the number of women of reproductive age to
peak at 29.11 million while adolescent girls of reproductive age will hit 11.3 million.

The figures for women of reproductive age and adolescent girls continue to be the highest
numbers on record, said POPCOM.

Meanwhile, the number of schoolchildren is projected to increase to 31.5 million next year.
On the other hand, people who are over 65 years old will total 5.2 million.

POPCOM also expects a labor force of 66.7 million by the end of December 2017.

The Philippine Statistics Authority (PSA) earlier projected the number of births in the
Philippines at 1.692 million in 2017 with the number of Filipinos born every minute to fall to
3.22. -- Danica M. Uy

Port development to focus on Ro-Ro connectivity

Posted on December 30, 2016

THE PHILIPPINE Ports Authority (PPA) is looking to rehabilitate and develop more
ports next year in a bid to further push inter-island connectivity via roll-on, roll-off
(RoRo) ferry services.
PPA General Manager Jay Daniel R. Santiago said the agency will pursue some port
rehabilitation projects left by the previous government.

We have a lot of port developments by next year, were finalizing all of the development
plans that were doing, there are a lot of proposed port facility developments which has been
left by the previous administration and which weve studied and some of them we will
pursue. There will be new locations that we will build on, but then there are a lot of ports also
which need rehabilitation -- so we will either rehabilitate or upgrade the ports, Mr. Santiago
told reporters recently.
In particular, he said the agency will rehabilitate the Iloilo port and Abra de Ilog in Mindoro,
expand the port in General Santos City, while pursuing an ongoing rehabilitation and
construction of a passenger terminal building in Cagayan de Oro.

The PPA also announced it is looking to start the development of the Davao Sasa Port by
early next year and possibly fund the project -- estimated to be about P4.7 to about P4.9
billion -- internally.

Well rehabilitate and develop both big and small ports, since were trying to pursue the
need for inter-island connectivity through the RoRos, Mr. Santiago said.

PPA is also looking to develop more international container terminals nationwide to improve
volume particularly in the Visayas and Mindanao.

Were planning to look at and develop more container, more international container
terminals in locations outside of Manila -- in the Mindanao area. Were also looking at
putting up in international container terminal in Central Visayas in order to improve the
volume, he added.

The planned international container terminals will be owned and operated by the PPA, he
added.

The volume of cargo passing through the countrys ports rose 9% in the first nine months of
the year, PPA earlier reported, citing the growing economy and the rush to have goods in
stores by the Christmas season.

Throughput hit 183.73 million metric tons (MMT) in January to September period compared
with the 168.074 MMT logged a year earlier. Foreign volumes rose by 12.72%, boosted by a
15% increase in exports to 55.134 MMT for the period in review. Domestic volume,
meanwhile, grew modestly by 3.87% to 67.139 MMT.

PPA said the increases in cargo volume were observed at ports in Agusan, Mindoro, Bicol,
Western Leyte/Biliran and Negros Oriental. Siquijor and the North Port remains the top
performer in terms of domestic cargo volume, followed by Cagayan de Oro, Davao and
Zamboanga.

Container traffic, on the other hand, registered a 9.36% increase in volume for the nine
months with 4.684 million twenty-foot equivalent units (TEUs). -- Imee Charlee C. Dela

PSEi up on 2017s first trading day

By: Doris Dumlao-Abadilla - Reporter / @philbizwatcher
Philippine Daily Inquirer / 05:42 PM January 03, 2017

The local stock barometer closed higher in thin trading on the first working day of 2017, as
upbeat China factory gauge brought good tidings to regional markets.

The Philippine Stock Exchange index gained 20.67 points or 0.30 percent to 6,861.31 on the
first trading day of the year.

For the third straight session, foreign investors were in a net buying position on upbeat
prospects for the new year. Net foreign inflows to the local stock market stood at P319 million
for the day.

Value turnover for the day was meager at P2.68 billion as many investors were still on a
holiday break after the New Year turnover.

The year ahead could once again be challenging. However, I believe that challenges offer us
opportunities. Challenges hone our skills, develop our character, and allow us to appreciate the
things we have, PSE chair Jose Pardo said in his welcome remarks during the bell ringing
program on Tuesday.

All counters ended higher except for the services counter which slipped modestly.

There were 89 advancers that edged out 79 decliners while 42 stocks were unchanged.

Jollibee and JG Summit led the PSEi higher, both rising by over 3 percent while GT Capital
was up by 2.36 percent.

Globe Telecom, PLDT, SM Prime, URC, AP, Metrobank and Security Bank also contributed to
the days gains.

On the other hand, MPI fell by 2.4 percent while Ayala Corp., BDO, SM Investments and
Megaworld also slipped.

Elsewhere in the region, investors took heart from the rise in the official China manufacturing
purchasing managers index (PMI) to 51.9 in December, the fastest improvement since 2013.

A score above 50 indicates expansion while a reading below indicates factory contraction.

Asia markets up on first trading day of year

Agence France-Presse / 04:07 PM January 03, 2017
HONG KONGMost Asian markets were higher Tuesday on the first trading day of the year,
continuing their trajectory from the end of a volatile 2016.

Overall, world markets ended last year in the black despite shock votes in Britain and the
United States. But Shanghai was the exception with a slump of more than 12 percent and
Japans Nikkei posted only modest gains.

However Chinese stocks finished solidly higher Tuesday after an independent research firm
showed manufacturing activity expanded in December at its quickest pace in nearly four years,
a sign of improving health for the worlds second-largest economy.

The benchmark Shanghai Composite Index gained 1.04 percent, while the Shenzhen
Composite Index, which tracks stocks on Chinas second exchange, increased 0.86 percent.

Sydney and Seoul both closed up around one percent, while Hong Kong was tracking slight
gains in afternoon trade after opening flat.

Markets in Japan were closed for the final day of an extended New Year holiday.

The dollar was mixed against most key Asia-Pacific currencies but was projected to continue its
climb over the longer term, on expectations of more US interest rate rises this year and Donald
Trumps inauguration as US president.

The US dollar should remain strong in 2017. Growth and inflation in the US will be the
strongest amongst the G3 economies (US, Japan and the EU), Singapores DBS Bank said in a
note.

We expect the Fed to hike four times this year whilst the eurozone and Japan maintain their
quantitative easing policies, it added.

Donald Trump will be inaugurated on 20 January as US President. The US dollar should

appreciate in anticipation of his plans to reflate the US economy with infrastructure spending,
tax cuts and fiscal stimulus.

Malaysian lender Maybank said the dollars retreat against some other currencies was a
technical correction following its strong showing last year.

The dollar corrected into the new year but dips were noticeably shallow even in the midst of
lighter holiday volume, it said in a note.
Oil prices rose as an agreement by major producers to cut output took effect.

OPEC members led by Saudi Arabia and non-OPEC producers like Russia late last year agreed
to slash output to try to shore up prices weighed down by an oversupply since mid-2014.

The outlook for 2017 looks robust as the Brent crude futures chart indicates the price to rise
slowly to around US$59 per barrel by the end of 2017, said EY oil and gas analyst Sanjeev
Gupta.

Key figures around 0730 GMT

Tokyo Nikkei 225: closed

Hong Kong Hang Seng: UP 0.72 percent at 22,160.47

Shanghai Composite: UP 1.04 percent at 3,135.92

Dollar/yen: UP at 117.75 yen from 117.42 yen

Oil West Texas Intermediate: UP 31 cents at $54.03 per barrel

Oil Brent North Sea: UP 33 cents at $57.15 per barrel

New York Dow: closed

London FTSE 100: closed

DENR seeks to widen impact of miners

social devt funds
Posted on December 28, 2016

THE Environment department is drawing up new guidelines for the

utilization of mining firms social development and management program
funds (SDMP) to benefit more people beyond miners host communities.

Secretary Regina Paz L. Lopez said that the department

will release the guidelines as early as years end after
mining companies have agreed to her proposal in principle.

Today, it was agreed that we use the SDMP funds in an area development format... We want
to help the mining companies that passed the audit to use the SDMP funds in a more
impactful way, she said in an interview with BusinessWorld earlier this month.

The SDMP is funded with the equivalent of 1.5% of miners operating costs. The mineral
contractor commits to the sustained improvement in the living standards of the host and
neighboring communities.

Social development impact was one of the criteria used in assessing miners operations during
the nationwide metal mines audit the government started in July.

The review, now in its final phase with results targeted for release next month after numerous
delays, intended to weed out from the industry mining companies that employ substandard
environmental practices. It has left 20 mining firms facing possible suspension.

This brings to more than three-quarters of the countrys 41 metal mines either facing
suspension or under threat of such an order. The government also suspended 10 mines prior
to the audit.

Some metal miners were left unsanctined despite alleged infractions, which were deemed not
severe enough to merit suspension.

Companies that were not recommended for suspension were Rio Tuba Nickel Mining Corp.,
Philex Mining Corp., Philsaga Mining Corp., Techiron Resources, Inc., Cagdianao Mining
Corp., Taganito Mining Corp., Platinum Group Metals Corp., Greenstone Resources Corp.,
Pacific Nickel Philippines, Inc., Apex Mining Co. Inc., Atlas Consolidated Mining and
Development Corp. -- Janina C. Lim

Trade dept to short-list five microfinance

firms for P1-billion lending program
Posted on December 28, 2016

THE Department of Trade and Industry (DTI) will work with five leading
microfinance institutions (MFIs) to allocate an initial P1 billion to micro,
small and medium-sized enterprises (MSMEs), a measure intended to
discourage them from tapping usurious lenders.
DTI Secretary Ramon M. Lopez told reporters that the government will select the top five
microfinance institutions in the country, using their already established network to channel
the funds into areas that most need it.

We are studying now the top five microfinance institutions who have the widest networks,
he said in a media briefing on Dec. 20.

CARD MRI is identified as one, he said, referring to CARD Mutually Reinforcing

Institutions. They are number one, the second to fifth are still being identified. Were still
doing our homework. Anyway the money isnt here yet, he said.

Were going to channel it through MFIs because they have a network of collection.
Immediately, we can issue loans.

Apart from tapping microfinance institutions, Mr. Lopez said that the department will also
look into well-run cooperatives.

When we say well-run, they really have this lending system and collection, they have huge
funds, and we are creating a separate program for this to support more borrowing.

In November, Mr. Lopez said that the government is planning to release a pool of funds next
year that will be lent to MSMEs, providing them an accessible alternative to usurers.

State-owned Small Business (SB) Corp., which falls under the trade department, will be
responsible for distributing the funds to conduct institutions like MFIs and cooperatives.

The initial P1 billion budget, which is expected to increase in the coming years, will be
available in February. The plan is to eventually fund the program up to P18 billion, or P1
billion for every region.

No specific timetable has been set yet for the increase in the budget, since the government
will have to see the success of this first.

We will tell the MFIs to address to the poorest provinces and municipalities. The funds
should reach those places so that the marginalized can feel the assistance extended by the
government.

According to Mr. Lopez, nearly all the funds will be reserved for micro firms. Around 10% of
the borrowers will be from the category of small and medium-sized firms, borrowing between
P100,000 to P200,000 while the remaining will go to the very small borrowers, the P5,000
and P10,000 type. -- Roy Stephen C. Canivel
Devt plan to address brain drain, reliance
on worker remittances
Posted on December 28, 2016

THE Philippine Development Plan (PDP) for 2017-2022 aims to address the
issue of brain drain and cut the economys dependence on overseas
remittances, targeting expansion of opportunity in sectors like culture, the
arts, science and technology.

That is one of the objectives (decreasing brain drain). In fact, we have a planning committee
also that deals with migration and development, but it will be mainstreamed in all the other
chapters, said Rosemarie G. Edillon, Undersecretary of Policy and Planning, in an interview.

The PDP that the National Economic and Development Authority (NEDA) wants to finish by
January will contain a chapter on science, technology and innovation which will highlight
investment in cutting-edge technology as a government priority.

The intent is to encourage Filipinos to remain in the Philippines and create a science and
technology-friendly environment to which overseas workers will want to return.

For this particular chapter, we would like to talk about cutting-edge technology like artificial
intelligence, like robotics. Were talking about drug-formulation, having a disaster risk
reduction and management research center in the country. (Its time to start) developing that
particular aspect of innovation, said Ms. Edillon, adding that by the next PDP, NEDA hopes
science, technology and innovation will support viable businesses.
However, this will take a long time to develop and will be incorporated further in the
following PDPs as the chapter that NEDA is formulating is merely a foundation.

Feasible in the medium term but it will be very difficult to see results immediately because
there are technologies that we still do not have... I think its a long process, but its definitely
feasible, said Land Bank of the Philippines Chief Economist Guian Angelo S. Dumalagan.

According to Mr. Dumalagan, the Philippines might have to acquire expertise abroad by
hiring people from Japan for the meantime because the country doesnt yet have the skills and
technology.

Asian Institute of Management Economist Emmanuel A. Leyco said that remittances remain
important to the economy, being largely responsible for consumption spending, which is the
main driver of the economic growth.

I just want to caution the government that the economy needs to be able to create jobs that
will absorb STEM (science, technology, engineering and mathematics) graduates, Mr. Leyco
added.

Ms. Edillon also said that NEDA wants to reintegrate overseas workers because they can
bring into the country the skills and knowledge in science and technology that they have
acquired overseas.

The PDP 2017-2022 aims to reduce inequality and pave the way for more inclusive growth
and is targeted to be completed by the end of January. -- Danica M. Uy

Bids solicited to prepare Sangley for transfer of

general aviation
Posted on December 29, 2016

THE GOVERNMENT yesterday invited parties to bid for the P553-million Sangley
Airport Development Project, with the intention of immediately decongesting air traffic
in the countrys main gateway.
An invitation to pre-qualify to bid for the Sangley Airport project -- published in newspapers
yesterday -- showed that the contract involves rehabilitation, an asphalt overlay over the
existing runway, reblocking of pavement, construction of ramp and drainage system, the
construction of four hangars, a passenger terminal building and other facilities.

The project intends to alleviate the air traffic congestion in the NAIA (Ninoy Aquino
International Airport) by transferring its general aviation services to Sangley airport,
according to the invitation to bid.

Phase I of the project shall involve the rehabilitation of the existing 2.4 kilometer (km)
runway, construction of ramp, drainage system, four hangars with a floor area of roughly
1,600 sq. m each, construction of an 800 sq. m passenger terminal building and with offices
and vehicular parking area and other building facilities, it added.

The approved budget for the contract is P552.867 million -- included in the P3.35-trillion
budget next year -- with a project duration of 270 days.

Sangley Airport is located in San Antonio, Cavite City, on a peninsula jutting out into Manila
Bay.

DoTr said the pre-bid conference is set for Jan. 5, while bid documents will be issued starting
Dec. 28 to Jan. 23, 2017, which will also be the date for opening of bids.

The main gateway, the NAIA, suffers from congestion, with 36.68 million people passing
through the countrys four terminals, well over its designed capacity of 30.5 million
passengers per annum, the Civil Aviation Authority of Philippines said in June.

Earlier this month, the Tieng-Sy consortium that earlier proposed a $50-billion project to
develop an airport and economic zone off Sangley Point, had a similar proposal to use the
Danilo Atienza Air Base in Cavite to immediately decongest the NAIA, while awaiting the
construction of a new airport.

All-Asia Resources & Reclamation Corp., (ARRC) -- which teamed up with the Sy familys
Belle Corp. -- said the company resubmitted to the government its P1-billion proposal to
redevelop the air base, an unsolicited proposal seen as more immediate which was
previously part of its Philippine Global Gateway project submitted to the government on Aug.
1.

Their proposal however envisioned Sangley Airport as a general aviation and scheduled/low
cost airport -- freeing up much-needed capacity at NAIA.

Mr. Lim noted that moving the scheduled/low cost flights to the airport in Cavite would also
give other firms an incentive to build a road connecting to Manila-Cavite Expressway
(CAVITEx) rather than the governments earlier plan to move general aviation operation to
Sangley.

Low cost carriers would mean more volume and more business incentives for road builders.
Of course, the government can try to do it on their own, but why would the government need
to put up that money when there are other people who are willing to do it? And theyre only
doing general aviation, that wont solve the problems in NAIA, ARRC Vice-Chairman
Edmundo T. Lim told reporters in a Dec. 12 briefing.

The International Air Transport Association has urged the new government to come up with a
master plan for the countrys aviation sector -- either to build another gateway or maximize
other airports outside Metro Manila -- in order to boost the sectors potential contribution to
the Philippine economy. -- Imee Charlee C. Delavin
DoE assessing damage to power plants from typhoon
Nina
Posted on December 30, 2016

THE Department of Energy (DoE) is assessing the damage brought by typhoon Nina on
power plants and other energy assets as well as the cost to be incurred in restoring
them, which could result in an increase in electricity rates in the long-term.
Energy Undersecretary Felix William B. Fuentebella said a power plant in Tiwi, Albay was
reported to have a problem with one of its cooling towers. He said the department was also
checking the Ilijan power plant in Batangas, one of the few commercially operating natural
gas-fired power plants in Luzon.

We will check on these generation companies, he said.

Bac-Man seems okay, he said, referring to the Bacon-Manito geothermal production field
in the provinces of Albay and Sorsogon.

He added that based on initial assessment, areas under the small power utility group (SPUG)
that are not connected to the electricity grid were not heavily damaged.

He said offhand, demand for electricity is low because power lines are out, thus the impact
on rates may not be significant.

However, an industry source said distribution utilities with existing contracts with the Tiwi
power source would have to buy electricity from the wholesale electricity spot market, where
rates are market-driven and are usually higher than those under agreed deals.

So, there will be a pricing issue, the source said. Thats why every time theres a plant
thats out, there is a price issue.

For its part, grid operator National Grid Corporation of the Philippines (NGCP) is allowed to
recover the cost incurred from force majeure events such as typhoons to consumers, but only
after securing approval from the Energy Regulatory Commission (ERC).

[Based on the] regulatory framework of NGCP, we are allowed to recover [cost arising
from] force majeure. But we have one year to assess and make a filing with the ERC, said
Cynthia P. Alabanza, NGCP spokesperson.

Force majeure events will fall under this mechanism, she said.

Mr. Fuentebella said the ERC would have to assess the details of cost-recovery filings by
NGCP to determine costs that can be subsidized and those that can be passed on to electricity
consumers.

As of Thursday, only First Gen Corp. has provided an update on the status of its plants in the
aftermath of the typhoon. It told the stock exchange on Dec. 27 no damage was sustained by
its 1,000-megawatt (MW) Santa Rita, 500-MW San Lorenzo, 414-MW San Gabriel and 97-
MW Avion power plants.
The natural gas power plants are within the First Gen Clean Energy Complex in Batangas
province, which was one of the areas hit by the typhoon. The company earlier said that all
power plant units are running and supplying electricity to the grid.

On Thursday, NGCP said it had restored 20 transmission lines and other facilities, including
two 500-kilovolt (kV) lines -- the Tayabas-Ilijan and Ilijan-Dasmarias, And a substation in
Naga City and another in Labo, Camarines Norte.

Nine 230-kV transmission lines are up for restoration, namely: Labo-Naga lines 1 and 2;
three lines from Naga City to Tiwi in Albay; Daraga-Tiwi; Daraga-Bacman; and Tiwi C-Tiwi
A lines 1 and 2.

Six 69-kV lines are also for restoration: Naga-Iriga; Naga-Lagonoy; Naga-Libmanan;
Daraga-Ligao; Tiwi-Pawa-Tabaco; and Ligao-Pawa.

NGCP also said that the Daraga substation and a switching station in Sorsogon were still
down, along with the Iriga-Barit hydro-electric 13.8 kV line.

Typhoon Nina made landfall on Catanduanes island in the Bicol region on Christmas day. It
left the Philippine area of responsibility on the night of Dec. 27. -- Victor V. Saulon