Philippine Weekly Philippine Update

WEEKLY UPDATE WE TELL IT LIKE IT IS

VOLUME II, NO. 1 Jan. 17 – 23, 2011 ______PHIL. Copyright 2002 _ THE WALLACE BUSINESS FORUM, INC. accepts no liability for the accuracy of the data or for the editorial views contained in this report.__ Political "Quotes Jockeying is on for Armed Forces, police chief posts of the Week" Eight contenders will be vying to replace outgoing Armed Forces Chief of Staff Ricardo David when he reaches the mandatory retirement age of 56 on March 8, Defense sources. On the other hand, two police generals will reportedly be competing to get the post of Philippine National Police Chief Raul Bacalzo when he decides to step down. The eight contenders for Gen. David’s post are all members of the Philippine Military Academy Class of 1977 like Armed Forces Vice Chief of Staff Lt. Gen. Reynaldo Mapagu, Armed Forces Deputy Chief of “We need fresh foreign capital to trigger Staff Lt. Gen. Eduardo Oban, Army chief Lt. Gen. Arturo Ortiz, Air Force Chief Oscar Rabena, economic activity and fund infrastructure Northern Luzon Command chief Lt. Gen. Gaudencio Pangilinan, Southern Luzon Command to lure investments.” chief Lt. Gen. Roland Detabali, Eastern Mindanao Command chief Lt. Gen. Raymundo Ferrer, and Western Command chief Lt. Gen. Juancho Sabban. The candidates tipped to Majority Leader Neptali Gonzales II on the need to amend economic provisions of replace Dir. Gen Bacalzo are Directors Benjamin Belarmino, the deputy chief for Operations, the Constitution. and Rey Lanada, head of the Directorate for Comptrollership.

House pushes economic Charter change “My conversations with the President are House leaders have vowed to convene Congress into a constituent assembly to amend the privileged and confidential.”

Constitution this year, saying it is a safer and more economical way to bring about reforms Former Senator Manuel Roxas II than a constitutional convention. House Deputy Speaker Jesus Crispin Remulla and Majority saying he has begun advising President Leader Neptali Gonzales II said the revisions would focus only on the economic provisions. Aquino on a number of matters as “chief By contrast, a constitutional convention would open up the entire Charter, including political troubleshooter”. provisions, to change. “We really need Charter change, particularly on economic provisions. “We welcome all kinds of help we can get.” We need it done this year,” said Rep Gonzales, a member of the ruling Liberal Party. He said the House would ask to meet with the Senate to discuss issues that needed to be taken up Executive Secretary Paquito Ochoa Jr. saying he didn’t feel threatened by the before calling for a constituent assembly. entry of former Senator Manuel Roxas II

into the Cabinet as President Aquino’s chief Pres. Aquino rejects death penalty troubleshooter. Citing the imperfect justice system in the country, President Aquino rejected a proposal to revive the death penalty. Calls for death penalty revival followed the wave of heinous crimes “How can you turn back the clock if a man wrongly convicted is already executed?” and the abduction and murder of car dealers like the son of lawyer Oliver Lozano. Mr Aquino expressed fear that a person can be wrongly convicted, especially if that someone does not President Aquino on his rejection of a have the capability to secure competent counsel for his defense. Leading the call for death proposal to revive the death penalty. He expressed fear that a person can be penalty revival, the Volunteers against Crime and Corruption founding chairman Dante wrongly convicted, especially if that Jimenez said it is high time the capital punishment was restored because of the resurgence someone does not have the capability to of heinous crimes. The spate of murders has prompted the Senate to conduct a series of secure competent counsel for his defense. inquiries on the crime wave beginning next week. For his part, Senator Juan Miguel Zubiri said the recent incidents convinced him to push for the reimposition of death penalty, especially on drug traffickers and multiple murderers.

Gov’t agrees to send 116 witnesses to HK The Justice Department said it had agreed to grant the Hong Kong government’s request to send witnesses to its investigation of the Aug. 23 hostage-taking in Manila, where eight of its nationals were killed following an inept police rescue attempt. The proceedings would start on DISCLAIMER Feb. 14 and run for 25 days, Justice Secretary Leila de Lima said, adding Hong Kong would shoulder all the witnesses’ expenses. She said she made the decision after Hong Kong assured her that the 116 people who had been summoned to testify would not be prosecuted. The articles in this Philippine Weekly Update (PWU) have been culled from various media The Filipino witnesses could not be forced should they refuse to cooperate since their sources. We cannot, therefore, vouch for the participation would be voluntary, Sec. de Lima said. She had also insisted that the accuracy of what is reported. proceedings be covered by the Mutual Legal Assistance Treaty. The witnesses who have

1 The Wallace Business Forum, Inc. Jan. 17 - 23, 2011 Philippine Weekly Update been asked to testify include Manila Mayor Alfredo Lim, Interior rights. Negotiations were scuttled five years ago after the Undersecretary Rico Puno, former Philippine National Police chief communists accused the government of providing information Jesus Versoza, Manila Vice Mayor Francisco Moreno, and GMA 7 that led to their inclusion in the list of terrorist organizations of the

News reporter Susan Enriquez. United States and the European Union. Earlier, the Aquino administration sought to remove another obstacle to the talks: De Lima reopens Mendiola case over Palace’s the communists’ insistence that 14 of their leaders be released objection as a sign of goodwill before the talks began. The Aquino Justice Secretary Leila de Lima ordered the Task Force on Extra- administration has vowed to review the cases of the detained Judicial Killings to determine whether there were grounds to re- rebels. The previous administration of President Gloria Arroyo investigate the 1987 Mendiola massacre. “They are studying that had rejected communist demands that the rebels facing criminal [reinvestigation] option,” she said when asked about the request charges be released. of farmers’ groups to re-investigate the killings that took place on Jan. 22, 1987. Still, presidential spokesman Ramon Carandang Economy said Malacañang wasn’t keen on re-investigating the case because there was “no practical point” in bringing it up again. He Economy likely grew by 6.5% in 4Q - NEDA said the case had been resolved, but the Justice Department was Economic growth likely stayed steady at 6.5% in the last quarter of 2010, allowing for full-year growth of slightly above 7% that free to do what it thought best. Earlier, the left-leaning Kilusang Magbubukid ng Pilipinas asked the Justice Department to re- tops the government’s 5-6% target, according to Socioeconomic investigate the case so that those responsible for the killing of the Planning Secretary Cayetano W. Paderanga at the sidelines of a 13 peasants who had been protesting near Malacañang could be Foreign Correspondents’ Association of the Philippines event. "If held criminally liable. The victims had been participating in a it stabilizes, then we will get 7% or slightly better than that for the multi-sectoral march to ask the late President Corazon Aquino, full year of 2010," Mr. Paderanga added. Surprisingly strong first mother of President Benigno Aquino III, to implement a genuine half growth -- 7.8% and 7.9% in the first and second quarters, land reform when they were shot down. Mayor Alfredo Lim was respectively -- was followed by a 6.5% result for the third quarter. If the expansion does not ease anew during the final quarter, then head of the Manila Police District. growth for the year would end up just above 7%. Mr. Paderanga Speaker gives way to Roxas as Liberal Party was also optimistic the 2011 growth goal of 7-8% would be met, although he stressed that the government had prepared its president budget for the year using a more modest goal. Former Senator Manuel Roxas II will be re-elected Liberal Party president as the new Liberals stopped contesting the position ..while UN forecasts below-target growth for 2011 after House Speaker Feliciano Belmonte Jr. rejected the offer to Philippine economic growth will likely slow to 4.6% this year lead the party, Leyte Rep. and Belmonte ally Sergio Apostol said. before picking up to 5.1% in 2012 as a global deceleration At the resumption of the congressional session, Speaker continues, the United Nations said. The country forecasts, Belmonte met with Rep. Apostol and the key leaders of the 81- contained in the UN’s World Economic Situation and Prospects strong new Liberals and asked them not to pursue his nomination 2011 report are lower than the government’s 7-8% target and the but instead to unite behind Mr. Roxas, Rep. Apostol said. As to 5% assumed in this year’s budget. It is also lower than World the threat of the Lakas-Kampi CMD party of the former Arroyo Bank’s 5% and 5.4% outlooks for 2011 and 2012, respectively, administration, Rep. Apostol said Speaker Belmonte had assured that were earlier announced. The UN, which expects the them that Leyte Rep. Martin Romualdez, the Lakas-Kampi CMD Philippines to have grown by 6.8% last year -- above the 5-6% president, would not pose a threat because the Lakas-Kampi target -- said East Asian economies should expect growth to CMD had declared its “cooperation” with the administration. Of moderate this year as external demand weakened. The region’s the 109 elected Lakas-Kampi CMD members, some 30 had exports, which rebounded last year, could "slow down markedly already switched to the Liberals. And of the 79 that remained with in 2011." Growth forecasts for the region were set at 7.2% and the party, another 41 had chosen to ally with the majority, Rep. 7.4%, respectively, for this year and the next, while those for the Apostol said. world were set at 3.1% for 2011 and 3.5% for 2012.

Land reform, privatization contentious issues in BOC misses 2010 collection goal peace talks As widely expected, the Bureau of Customs missed its collection Mr. Luis Jalandoni, a communist negotiator, said land reform and goal for 2010 of P280 billion. Citing preliminary data, Customs the privatization of state assets were contentious issues that must Commissioner Angelito Alvarez said that the agency’s cash be addressed during the Oslo peace talks between the rebels and collections in 2010 amounted to only P227.7 billion, way below the government. “The difficulties ahead should not be the cash revenue target of P241 billion. The agency has yet to underestimated because of the wide divergence in the two disclose its overall collections for last year comprising of cash parties’ current positions on such issues as land reform, national and non-cash component. Last year’s cash collections exceeded industrialization and assertion of national sovereignty,” he said. the 2009 cash collection figures of P198.9 billion. “The 2010 The latter added that the agenda for next month’s meeting cash collection level is the highest in the history of Customs,” Mr. included socio-economic reforms and the reconvening of a joint Alvarez said. For this year, he conceded that the higher revenue committee to monitor adherence to an agreement on human goal of P320 billion would be difficult to achieve.

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Optimism near record high FINANCIAL INDICATORS Latest Week Week-ago Year-ago Optimism among Filipinos remains very high and has improved slightly to just short of the record hit before the Aquino administration assumed T-BILL RATES* (%, January 17, 2011, average) power, a Social Weather Stations (SWS) survey showed. Results of the 91 day N.T. 0.700 N.T. end-November 2010 poll found 42% of the respondents saying they 182 day N.T. 1.563 N.T. expect the personal quality of their lives to improve in the next 12 364 day N.T. 2.456 N.T. months, compared to the 7% who claimed otherwise. Significant gains were recorded among the ABC class in the survey, which also asked PESO DEPOSIT RATES (% p.a. Nov. 29 – Dec. 03, 2010) interviewees about their outlooks on the economy and the change in Savings Deposit 0.05 0.05 0.10 their lives over the last 12 months. The net personal optimism score -- Time Deposit the difference between optimists and pessimists -- rose to +35, up from Below 1 year 3.26 3.16 3.20 1–2 years 3.75 4.00 3.68 +32 three months earlier and just a point below the record +36 posted a Over 2 years 1.52 1.57 2.00 month before President Benigno S. C. Aquino III took his oath of office. DOLLAR DEPOSIT RATES (% p.a., Nov. 29 – Dec. 03, 2010) All three scores are classified as "very high" by the SWS, which also said that since Sept. 2009, net personal optimism has remained above Savings Deposit 0.34 0.34 0.45 +20 ("high"). Time Deposit 60 days & below 0.83 0.85 1.13 61–90 days 0.94 0.99 1.34 Electronics boost seen with removal of EU tariffs 91-180 days 1.07 1.03 1.38 Electronics investments and exports could enjoy a boost this year with 181 days & above 1.20 1.22 1.43 the European Union poised to eliminate tariffs on several high-tech goods by June 30 in compliance with a World Trade Organization LIBOR/SIBOR (% p.a., October 11 – 15, 2010)

(WTO) ruling. The EU committed to the timetable to settle complaints Libor 90 days 0.29 0.29 0.28 against its practice of imposing duties -- contrary to an international Sibor 90 days 0.30 0.31 0.29 treaty -- on imported flat panel monitors, multifunction fax machines and Libor 180 days 0.45 0.46 0.59 Sibor 180 days 0.47 0.48 0.61 TV set top boxes. This is expected to encourage more investors to put up factories in the Philippines and also increase demand for electronic FOREIGN EXCHANGE RATE (January 21, 2011) components -- the country’s largest export earner -- with EU tariffs to be slashed well ahead of the holiday shopping season. The EU was PDS Weighted Ave. (P/US$) 44.46 44.19 46.24 ordered in August 2010 to "bring the relevant measures into conformity Blackmarket - 45.00 46.50 PDS Weighted Ave. (P/EURO) 59.91 58.85 64.85 with its obligations" when the bloc lost a case filed by the US, Japan and Taiwan. The EU was found to have violated the International PRIME LENDING RATE (% p.a., January 21, 2011 average) Technology Agreement which requires zero tariffs on high-tech goods. Bank of America 4.70 4.70 7.91 BPI 4.60 4.60 6.83 Business Citibank 4.84 5.29 8.50

BDO 4.68 4.60 7.88 Firms could get caught in Asia as corruption rules tighten Hong Kong & Shanghai Bank 3.81 2.23 5.96 Multinational firms trying to get a bigger piece of the Asia growth story ING Bank 7.90 7.69 8.69 Metrobank 8.00 8.00 8.50 face a rising risk of becoming embroiled in corruption scandals unless PNB 8.30 8.30 8.30 they enforce stricter compliance norms and new regulations. The region RCBC 4.70 4.78 7.91 may have moved center stage in many companies’ growth strategies as Security Bank 7.40 7.40 7.91 developed economies struggle but firms are also scrutinizing projects Standard Chartered Bank 8.31 6.69 9.31 UCPB 6.13 6.25 8.13 even more and stepping up due diligence before jumping into new joint Union Bank 4.70 4.70 7.91 ventures and M&A. The US has ramped up enforcement of the Foreign and Corrupt Practices Act (FCPA), while the UK’s new Bribery Act L/C SELLING RATE-IMPORT (P/US$, January 21, 2011) comes on stream in April. Avoiding corruption in Asia is notoriously Bank of America 44.45 44.26 46.28 tricky given the woeful record many countries have when it comes to BPI 44.46 44.25 46.20 tackling bribery. Citibank 44.50 44.21 46.10 Equitable PCI Bank 44.70 44.40 46.45 …as 343 companies sign up for integrity initiative Hong Kong & Shanghai Bank 44.84 44.56 46.30 ING Bank 44.90 44.60 46.60 Over 300 firms in the Philippines have signed a pledge against bribery Metrobank 44.70 44.25 46.40 and other unethical practices under a private sector campaign seen PNB 44.45 44.30 46.45 complementing the government’s anti-corruption efforts. The list of the RCBC 44.39 44.35 46.22 343 "Integrity Pledge" signatories, however, includes only one of the Standard Chartered Bank 44.70 44.25 46.30 Security Bank 44.42 44.27 46.30 country’s top 10 businesses and none of the top 10 construction UCPB 44.53 44.30 46.40 companies, a check against the BusinessWorld Top 1000 Corporations Union Bank 45.00 44.80 46.25 in the Philippines 2010 found. Under the pledge, firms agree to ban bribery, maintain a code of conduct for employees, conduct ethics *T-Bills transaction is every two weeks training programs and prepare accurate financial statements. Signatories also promise to shun business with unscrupulous firms and

3 The Wallace Business Forum, Inc. Jan. 17 - 23, 2011 Philippine Weekly Update also forge integrity pacts with state agencies for procurement contracts. The campaign aims to culminate in an "integrity certification Corporate Briefs system" that the government can use to narrow down eligible bidders Energy Development Corp. (EDC) is liable for the death of foremost for state projects. Filipino botanist Leonardo F. Co and two companions in a shoot-out in Leyte province last year, according to a panel probing the Rationalizing perks for oil search ventures incident…"The evidence points that the liability rests with EDC being To entice more investors, the Department of Energy (DOE) is pushing the employer of the casualties at the time of their death," Justice Secretary Leila M. de Lima said, quoting the panel report…in its 26- for a bill in Congress that would rationalize incentives for the country’s page report, the panel suggested the filing of reckless imprudence upstream oil industry. DOE Undersecretary Jay Layug said they may charges against EDC because -- despite warnings from the military of seek the help of the legislators with regard to this proposal. “This communist activity in the area -- it failed to provide enough security for the group of Mr. Co, Sofronio G. Cortez and Julius Borromeo who year, what we plan to do is to pass an exploration bill to be a law, were killed in a crossfire between soldiers and rebels on Nov. 15, which will serve to address all the issues and provide more incentives 2010…San Miguel Corp. said power subsidiary SMC Global Power to exploration companies,” he said. The proposed law aims to Holdings Corp. has named 3 banks to manage a proposed offshore rationalize provisions under the Oil and Gas Exploration Act of 1972 bond sale…San Miguel said its subsidiary plans to issue 5-year bonds…the power unit has mandated ANZ, HSBC and Standard or Presidential Decree (PD) 87, which was legislated during the Chartered Bank as joint book runners and joint lead managers for a Marcos administration. proposed U.S. Dollar benchmark 5-year bond issue…Royal Dutch Shell Plc. is considering at least $1 billion worth of fresh investments Separate loan limits for oil companies in the Philippines…"[We plan to spend] $1 billion in two to three years for potentially significant investments in the Philippines," Royal Dutch The Bangko Sentral ng Pilipinas (BSP) has approved an additional Shell Chief Financial Officer Simon P. Henry told a joint membership single borrower’s limit (SBL) for exposures of banks to oil companies meeting of the Makati Business Club and the Management Association of the Philippines…Energy Secretary Jose M. Layug, Jr. said the to finance their importations as part of an effort to ensure there is adequate supply of oil and petroleum products in the country. In a investment involved the Malampaya project off Palawan…Maynilad Water Services Inc. controlled by Metro Pacific Investments Corp. statement, the BSP said the Monetary Board has approved an (MPIC) and DMCI Holdings Inc., has more than doubled its 24-hour additional SBL of 15% for exposures of banks to oil companies on top service coverage…prior to the takeover by MPIC and DMIC of the West of the regular 25% limit as the central bank considers the oil industry Zone water utility firm in 2007, only 32% of Maynilad’s customers enjoyed 24-hour supply. Furthermore, only 46% had at least seven as a business vital to the national interest in order to ensure adequate pounds per inch (psi) of water pressure…Holcim Philippines Inc. has supply of oil and other petroleum products in the country. “The reopened its facility in Calaca, Batangas to take advantage of an anticipated surge in demand for new buildings and infrastructure in ultimate objective is to encourage oil companies to gradually resort to the capital markets for their funding needs,” the BSP added. The Metro Luzon…Holcim senior vice-president for commercial Ed Sahagun said the company spent about P63 million to revive the terminal and central bank explained that the additional SBL limit would only be install modern operating systems and equipment such as filters to available for borrowings of oil companies to finance oil importation for reduce dust emissions…he pointed out that the Metro Luzon cement a non extendable period of two years. market, which includes the National Capital and Southern Tagalog regions, is poised to grow further this year, driven by both private and public construction spending…the Commission on Human Rights (CHR) Concessions needed in proposed U.S. garment bill recommended to the Aquino administration the revocation of the The Philippines has to accept the fact that its benefits under a Financial and Technical Assistance Agreement (FTAA) issued to foreign proposed trade scheme favoring its garment exports to the US will mining company Oceana Gold Philippines Inc. (OGPI) for the firm’s alleged violation of the rights of the indigenous people of Barangay have to be cut if the measure is to have a better chance of getting Didipio in Kasibu, Nueva Vizcaya…in a resolution, the CHR also approved by the new Congress there, government and private sector ordered all concerned agencies, particularly the National Commission officials said. But in the meantime, garment giant Luen Thai Holdings, on Indigenous Peoples, the Mines and Geosciences Bureau of the Inc. said it has shelved plans to put up a $5-million jean factory in the Department of Environment and Natural Resources, the PNP and the AFP to report on concrete actions they have taken to protect the rights country, after the previous US Congress failed to pass the preferential of the affected community in Didipio…the FTAA allows a mining firm to program before its term ended last month. The proposed "Save our go on full-scale commercial production and utilization of gold, copper, Industries Act," first filed in Washington in 2009, would have allowed nickel, chromite, lead, zinc and other minerals except for cement raw materials, marble, granite, sand and gravel and construction Philippine-made garment exports to enter the US duty-free as long as aggregates…personal care products manufacturer Splash Corp. has these used American textiles. There were also provisions that would increased planned capital spending for the year by more than 11 times have reduced import duties on Philippine garments that use textiles to expand production…the board of directors of Splash has approved a woven from US yarns. 2011 capital expenditure budget of P426 million…the Court of Appeals has junked a P1.5-billion civil case filed by local automobile dealers

against German car maker Audi AG, saying Philippine courts do not …while gov’t plans revival of garments ecozone have jurisdiction over the business dispute…in a 27-page decision The government could revive plans to establish economic zones for promulgated on Nov. 17, 2010, the appellate court’s third division garment exporters as growing demand from China may spark a flurry affirmed the Alaminos, Pangasinan Regional Trial Court Branch 54’s dismissal of the charges filed by Auto Prominence Corp. and Proton of factory expansions, a Board of Investments (BOI) official said. The Pilipinas Corp. against Audi AG, seeking the enforcement of a zones will be needed even as efforts to gain preferential access to the distribution contract signed by the parties…Lucio Tan said he is willing United States market has stalled and left projections of increased to sell local carrier Philippine Airlines (PAL) to San Miguel Corp. president Ramon Ang or other buyers at the right price…“Everything is export sales and investments unrealized, BOI Executive Director for sale if the price is right,” Tan said at the sidelines of the Bangko Lucita P. Reyes said. The plan was to establish 3 zones in Clark, Sentral ng Pilipinas’ 2011 Bankers’ Night held at the Fort San Antonio Cavite and Cebu where players across the garment supply chain -- Abad in Manila…it was reported last week that Mr. Ang is interested in from textile mills to garment assemblers and logistics firms -- would PAL as he wants to get into the airline business…in a Jan. 13 disclosure by PAL Holdings, the listed firm that owns 85 percent of PAL be clustered. A decision could be made in 2 months after ongoing confirmed that the management of the local carrier is in talks with studies are completed. potential investors or white knights.

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Calls to lift South Cotabato mining ban grow percent is owed to domestic creditors, data also showed. Theoretically, at this level, each of the 94 million Filipinos is The Mayor of Tampakan, South Cotabato has joined other local government executives in calling for a review of South Cotabato indebted by P49,776. The Treasury said the increase in the province’s ban on open-pit mining, which has stalled the National Government’s foreign debt of P16 billion largely massive Tampakan gold-copper project. Mayor Leonardo contributed to the increase in the debt stock. However, this was Escobillo made the call in a press release sent by a public partially offset by the P36 billion appreciation of the peso against relations group working for the Tampakan project. “We need to the dollar. open our eyes to reality and be more sensible. We need this BCDA revenues from sale of military camps down project,” Mr. Escobillo was quoted as saying. South Cotabato’s provincial board passed a new environment code banning open- 43% pit mining early last year, effectively stopping the $5.2-billion Revenues of state-run Bases Conversion Development Authority Tampakan project operated by Sagittarius Mines, Inc., a joint (BCDA) from the sale of military lands in Metro Manila contracted venture between Switzerland’s Xstrata Plc and Indophil by 43% to P3.28 billion in 2010 from P5.8 billion in 2009. The Resources NL of Australia. BCDA said the 2010 proceeds brought total earnings from the sale of Metro Manila camps to P50.822 billion since privatization Weekly Indicators started in 1993. At the same time, the company is expecting to earn P26 billion more from joint venture transactions already BOP surplus hits record $14.4Bn in 2010 entered into for the development of Bonifacio properties. The country posted a balance of payments (BOP) surplus of $1.23 billion in December, bringing the full-year 2010 surplus to Infrastructure a record $14.4 billion amid the strong recovery of the export sector as well as robust remittances from Filipinos abroad, the PPP deals to be eligible for incentives Imported trains, tracks and other components for priority railway Bangko Sentral ng Pilipinas (BSP) reported. BSP Governor Amando M. Tetangco Jr. said the BOP surplus last year was projects could soon enter the country duty-free under a Board of almost 4 times the original projection of $3.2 billion and $6.2 Investments (BoI) proposal filed with the Tariff Commission. The billion higher than the latest revised forecast of $8.2 billion. items were added in a draft executive order (EO) which, if Originally, the BSP expected the BOP surplus to hit $3.2 billion approved by Malacañang, will extend for another five years the this year. As early as June last year, the original BOP surplus duty-free capital equipment incentive enjoyed by qualified firms, a target of $3.2 billion set by the BSP for 2010 was already notice posted on the Tariff Commission website showed. This is in "support of the public-private partnership (PPP) projects," BoI breached prompting authorities to raise the target to $3.7 billion and later to $8.2 billion. Latest data from the National Statistics Executive Director Efren V. Leano said, referring to infrastructure Office (NSO) showed that the country’s trade deficit plunged by deals the administration plans to bid out to the private sector. 57.5% to $1.74 billion in the first 10 months of last year from These include the extensions of the Light Rail Transit (LRT) Line 2 $4.1 billion in the same period in 2009 as exports grew at a eastward to Rizal and the LRT Line 1 southward to Cavite as well faster rate of 37.2% compared to the 26.3% expansion of as the integration of the Metro Rail Transit (MRT) Line 3 to the imports. LRT network. The BoI proposal dovetails with the state agency’s

plans to include PPP projects among the business activities BTr sells P4.125Bn 20-year T-bonds eligible for incentives under the 2011 Investment Priorities Plan. The Bureau of the Treasury (Btr) sold P4.125 billion worth of 20- year Treasury bonds (T-bonds) in an auction this week, its first Congresswatch sale of a 20-year debt paper for 2011. The government’s auction committee had to settle for a partial award of the P9 billion that it 12 priority measures to be pushed had planned to sell but investors tendered only P8.021 billion, Twelve bills at the most will be pushed by Malacañang as priorities when the Legislative Executive Development Advisory lower than the programmed debt sale. Had the committee awarded P8.021 billion, the average rate would have risen to Council (LEDAC) meets later this month, President Benigno S. C. 8.155% or beyond secondary market levels. The reissued T- Aquino III said. A Palace workshop last week drafted a preliminary bond fetched an average rate of 8.024% or 49.7 basis points list of 32 measures that was tackled by the Cabinet this week. No lower than the previous rate of 8.521%. Bids ranged from decisions were reached that day, however, as Mr. Aquino called 7.625% to 8.125%. National Treasurer Roberto Tan said for further refinements. Among the bills discussed during the investors are still waiting on the sidelines as they expect inflation Cabinet meeting was a measure reviewing agencies and entities "imbued with national interest ... to ensure that there’s harmony to rise later in the year. Inflation hit 3% in December, same as the rate posted the previous month, latest data from the National with our developmental plans." Another proposed priority is the Statistics Office (NSO) showed. rationalization of officials’ pay at state-owned firms, Mr. Aquino said. The president singled out excessive compensation at Gov’t debt hits P4.679Tn as of October 2010 government-owned and -controlled corporations (GOCCs) when The National Government’s debt stock hit P4.679 trillion as of he took office last year. An executive order suspending perks end-October last year, higher by P15.3 billion or 0.3% from the enjoyed by members and trustees at these firms remains in effect end-September 2010 level of P4.664 trillion, latest data from the and will expire on Jan. 31. Bureau of the Treasury showed. Of the total debt, P1.982 trillion or 42.4% is owed to foreign creditors and P2.697 trillion or 57.6 5 The Wallace Business Forum, Inc. Jan. 17 - 23, 2011