WeeklyPhilippine Update

WEEKLY UPDATE WE TELL IT LIKE IT IS

VOLUME VII, NO. 5 Feb. 01 - 05, 2016 ______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

Poe panel recommends graft raps vs Abaya over MRT... For entering into contracts that may endanger the safety of Metro Rail Transit (MRT) 3 "Quotes commuters, a Senate subcommittee recommended the filing of graft charges against top of the Week" officials of the Department of Transportation and Communications (DOTC) led by Secretary Joseph Emilio Abaya. The Senate’s subcommittee on public services chaired by Senator Grace Poe recommended the filing of charges for violation of Republic Act 3019 or the Anti-

Graft and Corrupt Practices Act against Abaya and other officials “directly involved” in forging “The latest Pulse Asia survey is both contracts in the DOTC. Sen. Poe’s panel cited the “badges of negligence and inactions of the overwhelming and humbling. It echoes DOTC led by Secretary Abaya indicating insensitiveness, callous indifference and acts the voice of the people who trust and disadvantageous to the commuters, the Filipino public and the government.” believe in my capacity to be a leader no matter what hurdles are thrown my ... as Vitangcol wants to know why ombudsman spared Abaya way.” Former Metro Rail Transit Line 3 (MRT-3) general manager Al Vitangcol III has asked the Sandiganbayan to order the Office of the Ombudsman to produce the records of its Senator Grace Poe on regaining the top investigation pertaining to Transportation and Communications Secretary Joseph Emilio spot in the latest Pulse Asia survey. Abaya. Wanting to know why Sec. Abaya was cleared of graft charges while he was indicted, Mr. Vitangcol said the anti-graft court should direct the production of documents relevant to "Mining, the best that I can see now is the case. He claimed that the department chief’s counter-affidavit when the case was still the Australian standard, just follow the Australian standard. Just take care of under investigation would help “negate the wrongful accusations of the ombudsman.” the environment."

MILF decommissioning won’t continue sans BBL Davao City Mayor Rodrigo Duterte The decommissioning of the Moro Islamic Liberation Front (MILF)’s combatants and weapons expressing his support for responsible will no longer continue without the passage of the Bangsamoro Basic Law (BBL), the mining during last week’s dinner with government said. But Presidential Communications Operations Office Secretary Herminio the Wallace Business Forum. Coloma Jr. welcomed the statement of MILF’s chief negotiator Mohagher Iqbal that the non- passage of the BBL was not the end of the world for the MILF and that they would continue to “These results once again affirm our pursue a peace settlement. Presidential Adviser on the Peace Process Teresita Deles said belief that good governance is good “the political-legal track centered on the passage of the BBL is at the heart” of the economics.” Comprehensive Agreement on the Bangsamoro (CAB) signed by the government and the MILF on March 27, 2014, concluding 17 years of peace negotiations. The BBL is the legal Presidential Spokesperson Edwin translation of CAB. If enacted, the BBL will be the legal basis for the creation of an Lacierda on the country’s improved autonomous Bangsamoro region to replace the Autonomous Region in Muslim Mindanao ranking in the 2016 Index of Economic Freedom. (ARMM).

Makati court issues arrest warrant against Trillanes The Makati Regional Trial Court Branch 142 has issued an arrest warrant against Senator Antonio Trillanes IV in connection with the libel complaint filed by dismissed Makati City Mayor Jejomar Erwin “Junjun” Binay, Jr. The warrant was issued after the court found probable cause to charge the senator for the criminal offense. Sen. Trillanes’ lawyer, Atty. Reynaldo Robles, said the senator is on an official trip abroad for an international forum. But upon his arrival, he will “voluntarily submit himself to the jurisdiction of the Honorable Court, if so required.” For his part, Sen. Trillanes was quoted as saying he will continue to “expose the truth” about the supposed anomalies in Makati City under the rule of the Binays, regardless of the libel charge.

DISCLAIMER The articles in this Philippine Weekly Update (PWU) have been culled from various media sources. We cannot, therefore, vouch for the accuracy of what is reported.

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Binay camp downplays Blue Ribbon report on graft raps FINANCIAL INDICATORS Latest Week Week-ago Year-ago The camp of Vice President Jejomar Binay downplayed the recommendation of the Senate Blue Ribbon subcommittee to file criminal T-Bill Rates (February 01, 2016 average) charges against him and his son, dismissed Makati mayor Jejomar Erwin 91-day N.T. N.T. 1.541 “Junjun” Binay. The charges stemmed from the alleged anomalous 182-day N.T. N.T. 1.758 construction of the Makati City Hall Building II. The Senate subcommittee 364-day N.T. N.T. 1.947 said there was “plunder through grand conspiracy” in the overpricing of the building, which was constructed when the elder Binay was mayor. The subcommittee report was presented in the plenary on Monday (Feb. 1), 2 PESO DEPOSIT RATES (% p.a., January 18 – 22, 2016) days before Congress adjourned. Sen. Aquilino Pimentel III, chairman of Savings Deposit 0.00 0.00 0.00 the subcommittee, previously handed out copies of the partial report to Time Deposit the media after getting the signatures of 10 senators who were members Below 1 year 1.51 1.60 1.27 of the Blue Ribbon committee. He only presented the partial report to the 1 - 2 years 3.46 2.08 2.11 2.40 Over 2 years 3.81 3.15 3.18 plenary for debates last week. DOLLAR DEPOSIT RATES (%p.a., January 18 - 22, 2016)

Sereno grills Comelec on foundlings Savings Deposit 0.18 0.18 0.22 Chief Justice Maria Lourdes Sereno’s interpellation of the Commission on Time Deposit Elections (Comelec) centered on the implications of Senator Grace Poe’s 60 days & below 0.54 0.58 0.61 case on the rights of foundlings. Even then, Commissioner Arthur Lim, 61-90 days 0.62 0.61 0.71 who represented the poll body, said it would rather not “lose focus” on the 91-180 days 0.72 0.71 0.81 181 days & above 0.95 0.92 1.00 core issue that led to the cancellation of Sen. Poe’s candidacy -- material misrepresentation. “Let us not lose sight of the fact petitioner is seeking LIBOR/SIBOR (% p.a., February 01 - 02, 2016) the highest position in the land,” Commissioner Lim said during the 3rd round of oral arguments. “The sad life of foundlings is not the issue in this Libor 90 days 0.62 0.62 0.25 case.” But Chief Justice Sereno questioned the notion that the high court Sibor 90 days 1.25 1.25 0.66 Libor 180 days 0.86 0.87 0.36 should treat the case by zeroing in on just Sen. Poe’s alleged lapse. She Sibor 180 days 1.31 1.31 0.73 said any ruling on the senator’s status as a natural-born citizen will not only apply to her but to other foundlings too. Pointing out the wide FOREIGN EXCHANGE RATE (% p.a., February 05, 2016) reaching implications of the case, she wondered if the high court could “canalize and quarantine the effects on foundling rights to only one PDS Weighted Ave. (P/US$) 47.71 47.69 44.16 Blackmarket (P/US$) 48.00 47.95 44.25 person.” PDS Weighted Ave. (P/EURO) 53.53 52.32 50.67

Comelec division junks disqualification cases against PRIME LENDING RATE (% p.a., February 05, 2016)

Duterte Bank of America 5.84 5.84 5.54 Voting unanimously, a division of the Commission on Elections (Comelec) BPI 5.40 5.40 5.25 dismissed all disqualification cases filed against presidential aspirant Citibank 5.43 4.71 4.79 Davao City Mayor Rodrigo Duterte. In its resolution, the commissioners of BDO 5.34 5.34 5.27 the 1st Division denied for lack of merit the 4 petitions seeking to Hong Kong & Shanghai Bank 4.58 4.75 5.88 ING Bank 4.50 4.90 4.30 disqualify Mayor Duterte from the presidential race. The poll body Metrobank 6.25 6.25 7.00 consolidated the petitions filed by broadcaster Ruben Castor, University PNB 7.90 7.90 6.90 of the Philippines Student Council head John Paulo de las Nieves, and RCBC 6.75 6.75 6.75 disqualified presidential bets Elly Pamatong and Rizalito David. The Security Bank 6.13 6.13 7.40 petitioners questioned Mayor Duterte’s substitution for Martin Diño as Standard Chartered Bank 4.11 3.90 4.36 UCPB 6.00 6.00 6.00 standard bearer of the Partido ng Demokratikong Pilipino-Lakas ng Bayan Union Bank 6.00 6.00 7.50 since the latter indicated in his Certificate of Candidacy that he was running for mayor of Pasay City and not for president. L/C SELLING RATE-IMPORT (P/US$, February 05, 2016)

Bank of America 47.75 47.73 44.20 Economy BPI 47.85 47.73 44.30 Citibank 47.65 47.64 44.08 Domestic spending to offset El Niño Equitable PCI Bank 47.90 47.85 44.25 Economic expansion will likely pick up this year despite a slump in farm Hong Kong & Shanghai Bank 48.47 48.42 44.45 output and a tapering of cash remittances as household and election- ING Bank 47.85 47.80 44.20 Metrobank 47.90 47.90 44.18 related spending push growth above 6%. Ateneo de Manila University PNB 47.85 48.00 44.35 (AdMU) economics professor Alvin Ang said he expects gross domestic RCBC 47.76 47.79 44.17 product (GDP) to expand by 6.4% in 2016 -- taking off from 2015’s 5.8% - Standard Chartered Bank 47.80 47.95 44.15 - with uncertainty related to the May elections that will cause investors to Security Bank 47.76 47.73 44.16 stay momentarily on the sidelines seen as a mere hiccup to the current UCPB 47.90 47.93 44.30 Union Bank 47.90 47.95 44.55 growth momentum. He said economic growth will likely be increasingly buoyed by booming business process outsourcing (BPO) receipts that are expected to outpace remittance growth in the next 3 years, robust *T-Bills transaction is every two weeks household demand and spending by tourists.

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Moody’s upbeat on PH credit score CORPORATE BRIEFS The economy’s strong showing in the past quarter bodes well for the

Philippines’ creditworthiness as that performance stands as a Ayala Land, Inc. (ALI) plans to sell long-term bonds for the initial testament to the country’s resilience amid external headwinds. In its tranche of its P50 billion debt securities program. The real estate arm credit outlook released, Moody’s Investors Service said the faster- of the Ayala group will raise P8 billion from the issuance of fixed-rate than-expected growth of 6.3% seen during the last 3 months of 2015 bonds due 2026, according to a preliminary prospectus filed with the showed the economy’s relative strength despite the global volatility. Securities and Exchange Commission (SEC). Ayala Land will use the net proceeds of P7.9 billion to fund the investment in Malaysian “The strong growth is credit positive because it demonstrates the development and construction MCT Bhd. (P2.9 billion), acquisition of a economy’s resistance to global shocks and points to the government’s 26-hectare (ha) property at the South Road Properties in Cebu (P1.3 ability and willingness to shore up domestic demand amid a weak billion) and construction of mall, office and hotel projects at its mixed- external environment,” Moody’s said. Moody’s currently rates use developments Vertis North in Quezon City, Circuit in Makati and South Park District in Muntinlupa (P3.5 billion). Philippine sovereign debt a “Baa2,” a notch above minimum investment grade, with a “stable” outlook. The 4th quarter growth in The Bank of the Philippine Islands (BPI) and the International gross domestic product (GDP) is the fastest pace tallied for the year -- Finance Corp. (IFC) have renewed a risk-sharing facility worth up to up from the upwardly revised 6.1% in the 3rd quarter -- which brought P3.5 billion. The facility will fall under the bank’s Sustainable Energy the full-year average to 5.8%. That’s largely after revived stimulus Finance (SEF) program, which provides loans and technical advice to clients investing in energy projects to help reduce energy costs and cut from government spending and an uptick in domestic consumption. greenhouse gas emissions.

Business Coca-Cola FEMSA Philippines, Inc. has committed to invest $800 million in its local business from this year until 2020 as it expects sales

to expand along with the country’s growing middle class. “This venture Bid to cut freight rates nixed is very important because if we turn around this company we will show An umbrella group for Philippine truckers thumbed down a proposal to to The Coca-Cola Co. and to our shareholders that we can work in slash freight rates by more than 30% to the dismay of exporters that Asia,” chief executive officer Fabricio Ponce. Mexico’s Coca-Cola FEMSA S.A. de C.V. entered the country in 2013 when it acquired 51% of need their logistics service. The Confederation of Truckers Coca-Cola Bottlers Philippines, Inc. from Atlanta-based beverage giant Association of the Phils., Inc. (CTAP) regrouped following media The Coca-Cola Co. reports that it had planned to lower trucking rates to P8,000 per 20- foot equivalent unit (TEU) from the current P12,000 TEU. “Our rates Energy Development Corp. (EDC), through subsidiary BacMan were already reduced by 20% last year. It was decided by the board Geothermal, Inc. (BGI), will receive from contractor Weir Engineering Services Ltd. over $5 million in damages following a favorable decision this afternoon that we will not reduce it anymore,” CTAP Chairman from the International Chamber of Commerce (ICC). EDC said the Rodolfo De Ocampo said. Weak trade volumes, he noted, have been ICC’s International Court of Arbitration on Feb. 1 has made partial forcing at least 5,000 trucks to stay grounded daily. The proponent of award in favor of BGI for Weir’s breaches of contract. Weir was ordered lower freight fees was CTAP Director Ruperto Bayocot who argued to pay BGI $4.4 million within 7 days of the date of the partial award, together with post-award simple interest rate of 5.33% per annum. that what could have been a new rate was based on “current market demand.” Manila Water subsidiary Laguna Water Corp. is alloting P1.4 billion this year for service expansion and to grow its customer base in the Small companies to start 2016’s first IPO wave province. In a statement, Laguna Water said the bulk of its 2016 budget would be allocated to water source development, water Two small and medium enterprises intend to brave the volatile network expansion, and improvement and rehabilitation projects. equities market with their respective initial public offerings (IPO) worth Furthermore, it has started the construction of the P1.6 billion Laguna a combined P1.4 billion. Philippine Primark Properties, Inc. and Well Field project that would provide as much as 100 million liters of Philstocks Financial, Inc. remain hopeful they can launch their IPOs in water per day mid-2015. the 1st quarter of the year, Unicapital, Inc. Managing Director The Laguna Water District (LWD) and an investment holding company Leonardo Arguelles, Jr. Said. Both firms are applying to be listed on of Metro Pacific Investments Corp. (MPIC) have signed an the Small, Medium and Emerging (SME) Board of the Philippine Stock agreement to invest in a company that would respond to financial, Exchange (PSE). technical, and manpower concerns for the expansion of LWD’s services. A memorandum of agreement was signed recently between LWD and Equipacific HoldCo. Inc., an investment holding company composed of PCCI urges bigger budget for DTI Equi-Parco Construction (EPCC) and Metropac Water Investments The Philippine Chamber of Commerce and Industry (PCCI) wants the Corp. (MWIC) owned by MPIC. The new entity, Laguna Water District national government to allocate a bigger budget in the coming years Aquatech Resources Corp. (LARC) was subsequently listed in the to the Department of Trade and Industry (DTI), citing the agency’s Securities and Exchange Commission (SEC) on Dec. 8, 2015. significant role in stimulating the economy. In an interview, PCCI The Gaisano-led Metro Retail Stores Group Inc. (MRSGI) plans a president George Barcelon said the DTI should be given a much P2.5 billion expansion until 2017, which includes opening at least 3 larger budget than what it has been given in recent years to function more department stores and 2 supermarkets in Metro Manila and the even more effectively, particularly in promoting the country as a trade Visayas. MRSGI chairman and chief executive officer Frank Gaisano and investment destination. “I hope in the next administration, DTI said one of the department stores with supermarket will be at an Ayala-owned shopping mall that will soon open in the Pasig-Marikina should be given a bigger budget. If you look at the government area. Mr. Gaisano said the 2 other department stores would be in allocation, the DTI is not exactly one of the darlings,” Mr. Barcelon Bacolod City and Iloilo. Two more supermarkets will also be opened in said. Based on the General Appropriations Act for 2016, the total new Mandaue and Cebu. appropriations of the DTI stood at P4.2 billion, slightly higher than the U.S.-based software provider Red Hat, Inc. is looking to establish a P3.7 billion allocation last year. subsidiary in the Philippines as it sees growing adoption of open source solutions here, especially in the financial sector. Red Hat senior Import growth, cheap oil lure investors: DoF director and general manager for ASEAN Damien Wong said, “Our The Philippines could cite robust domestic demand and depressed oil preferred approach is to set up subsidiaries in markets where we want to grow our presence in.” The company just established units in prices as selling points in attracting more investments that could Malaysia and Indonesia in 2015 and 2014, respectively.

The Wallace Business Forum, Inc. 3 Feb. 01 - 05, 2016 Weekly Update subsequently cushion the possible retrenchment of overseas Filipino workers (OFWs) in the Middle East amid the oil price slump. The CORPORATE BRIEFS sustained increase in the country’s importation of intermediate goods and capital equipment indicates that local companies are maximizing or even expanding their capacities to take advantage of the robust Robinsons Land Corp. (RLC) is gearing up for the launch of as much domestic demand, Department of Finance (DoF) Undersecretary Gil as P14 billion worth of residential projects in the fiscal year 2016, Beltran said. Latest data from the Philippine Statistics Authority show the although the Gokongwei-led property developer says it is keeping a Philippines increased its merchandise imports for the 6th consecutive “cautious” eye on the market. “We have in the pipeline maybe 6 to 8 projects that we can launch but whether we launch them or not, we month in November. The country brought in goods worth $6.1 billion or always play it by ear,” RLC president and chief operating officer 10.1% above the $5.54 billion recorded a year earlier. The November Frederick Go said. These upcoming projects have a combined sales shipments brought the year-to-date total 4.5% higher at $62.63 billion value of P14 billion, Mr. Go said. when compared from the $59.93 billion reported for the comparable SM Prime Holdings Inc. will open at least 4 new malls this year as 2014 period. part of efforts to further expand its footprint nationwide and improve consumers’ mall experience. “We will surely open 4 more branches this Green Jobs Act awaits President's signature year. We have the San Jose Del Monte (Bulacan), the Trece Martirez, President Benigno Aquino III is set to sign anytime soon the proposed East Ortigas and the one in Cherry Foodarama where we will have a mall,” SM Prime Holdings president Hans Sy said. The company earlier Green Jobs Act which seeks to open employment opportunities in the announced it was setting aside P65 billion in capital expenditures field of green technology and environment conservation. Davao City (capex) this year, bulk of which or 52% would be used for its mall Representative Karlo Alexei Nograles, chairman of the House expansion projects. This year’s capex is P1 billion higher than this Committee on Labor, said the measure was to be transmitted to Pres. year’s allotment. Aquino for his signature. Rep. Nograles, the principal author of the bill, said through the measure so-called “green companies” or business enterprises involved in the production of environment friendly products, and those that offer services to promote environmental protection and conservation are entitled to fiscal incentives that may include additional deduction of labor expense and duty free importation of capital equipment. The bill also grants fiscal incentives and tax perks for individuals and enterprises that participate in the creation of green jobs, practice the use of environment-friendly technologies and produce green goods and services.

Weekly Indicators

Government debt piles up to P6Tn Higher issuance of government securities and declining peso value pushed the debt pile of the National Government to nearly P6 trillion last year, the Bureau of the Treasury reported. Total liabilities reached P5.954 trillion by the end of December 2015, up 3.8% from the previous year. On a month-on-month basis, national government debt inched up by 0.03%. Domestic debt rose 1.7% to P3.88 trillion while foreign obligations increased 8.1% to P2.07 trillion. The government incurs debt when it borrows from both the local and foreign markets to finance its budget deficit. It also seeks funding to settle existing debts. According to Treasury data, the increase in local debts came entirely from higher Treasury bills and bond issuances made every two weeks last year.

‘Sin’ tax take grows at record pace to P141Bn The 3rd year of excise tax reforms pushed tobacco and liquor revenue collections to their fastest growth on record last year, the Bureau of Internal Revenue (BIR) reported. The so-called “sin” taxes hit P141.84 billion, up a quarter from the previous year’s P112.81 billion. The growth rate was the fastest on record tracing back to 1983, according to separate BIR data. Broken down, revenues from cigarettes surged 32% to P100.02 billion, while those from fermented liquors increased 14% to P28.26 billion. Collections from distilled spirits and compounded liquors, meanwhile, rose 7% to P13.51 billion, while those from wines went up a quarter to P500 million.

Over half of the country's ports exceed 2015 target Despite missing its collection target last year, the Bureau of Customs (BoC) said more than half the country's ports exceeded their collection targets. In a statement, the customs, which traditionally accounts for a fifth of state revenues, said 7 of its 12 ports beat their yearly collection goals in 2015. Leading the way are the ports of Iloilo and Cebu, which surpassed their targets by nearly P1 billion. The Cebu port, in particular, collected the highest amount at P16.529 billion, up by P924 million from its P15.605 billion target. Its Iloilo counterpart, meanwhile, breached its P1.349 billion goal by contributing P2.308 billion. The Davao port collected P598 million more with the 2nd biggest haul of P11.56 billion. Another billion-peso collector was the Port of Clark in Pampanga, the BoC said. The port raked in P1.284 billion, ahead of its P1.160 billion target for 2015.

Infrastructure

Biggest PPP project attracts 5 firms Five firms have so far expressed interest in the P171 billion South Line of the North South Railway Project (NSRP) under the public- private partnership (PPP) program. “The complete list of those who have bought NSRP documents are Ayala Corp., Metro Pacific

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Investments Corp., San Miguel Corp., IL&FS, and Fluor Daniels,” PPP Center executive director Cosette Canilao said. The project involves the construction, rehabilitation, extension, as well as operation and maintenance of the proposed South Line of the Philippine National Railways (PNR). The proposed NSRP South Line covers Metro Manila to Legazpi City, Albay, plus a number of existing and proposed branch lines totaling approximately 653 kilometers (km). The project will have commuter railway operations between Tutuban and Calamba in Laguna, and long-haul railway operations between Tutuban and Legazpi, including extended long-haul rail operations on the branch line between Calamba and Batangas and extension between Legazpi and Matnog in Sorsogon.

Pre-bidding for P65Bn LRT-6 project The Department of Transportation and Communications (DOTC) is set to hold the pre-qualification conference for the P65.09 billion Light Rail Transit (LRT) Line 6 public private partnership (PPP) project this month. In General Bid Bulletin 01-2016, DOTC Undersecretary and chairman for the Pre-qualification, Bids and Awards Committee Edwin Lopez said the pre-qualification conference for the project is scheduled on Feb. 15. The LRT Line 6 deal covers the construction of the proposed 19-kilometer (km) railway from Bacoor (the terminus of the LRT Line 1 Cavite extension) to Dasmariñas City. The proposed railway covers 7 stations such as Niyog, Tirona, Imus, Daang Hari, Salitran, Congressional Avenue, and Governor’s Drive. The winning bidder will be in charge of the financing, design as well as construction of the rail line.

Submission of prison PPP bids postponed to March 7 The Department of Justice’s (DoJ) procurement body has moved to March 7 the submission of bids for the P50.2 billion prison facility to be built via public-private partnership (PPP). The DoJ Pre-qualifications, Bids and Awards Committee granted the “request of a pre- qualified bidder” to postpone the bid submission for now, legal officer Senior State Counsel Rosario Elena Laborte-Cuevas said. Acting Justice Secretary Emmanuel Caparas elaborated on the bidder’s request in a recent briefing. “Apparently, one of the bidders asked for an extension to give it more time to analyze the project better so that it could submit a more responsive bid, and that’s allowed,” he said. At the same time, Ms. Laborte-Cuevas said the Office of the Solicitor-General and the Department of Finance asked for more time to review the contract.

Consumer group asks CoA to suspend MRT-Busan contract A consumer rights group asked the Commission on Audit (CoA) to suspend the P3.8 billion maintenance deal of the Metro Rail Transit (MRT) Line 3, which the Department of Transportation and Communications (DOTC) awarded to a Korean-led consortium. “[T]he negotiated procurement is highly irregular considering that the upgrading of the signaling system has already been awarded to Bombardier in September 2015, a highly regarded original equipment manufacturer,” read a copy of the Feb. 2 letter sent by lawyers of the Alliance for Consumerism and Transparency (ACTION) to DOTC’s Supervising Auditor Abenilda Torres. On Sept. 29, 2015, the agency awarded a P53.37 million deal to Canada’s Bombardier Transportation Signal Ltd through direct contracting. Under the 7-month contract, Bombardier will upgrade the MRT-3’s signaling system to ensure safe distances between trains and control their speed.

Congresswatch

Senators Drilon, Sotto score perfect attendance Senate President Franklin Drilon and Senator Vicente Sotto III registered perfect attendance among the 24 senators from the 1st regular session in July 2013 until December last year. Among senators who were not in detention or undergoing major medical treatment, Senate Majority Leader Alan Peter Cayetano and Sen. Teofisto Guingona III were the top truants in the chamber. The 2 are at the tail-end of Senate attendance records, being present in just a little over half of 214 total session days from July 2013 to Dec. 16 last year, spanning most of the 16th Congress. If Sen. Cayetano is unable to attend session, the Senate taps Senators Juan Edgardo Angara or Paolo Benigno Aquino IV to assume the post as majority leader. The post is critical because the majority leader assists the Senate President during open session. Senators Gregorio Honasan and Nancy Binay ranked number 3 and 4, respectively in terms of high attendance. Sen. Honasan was absent only a day while Sen. Binay reported for work 208 days.

House OKs PPP bill The House of Representatives has approved on 2nd reading a bill seeking to institutionalize the public-private partnership (PPP) program in infrastructure and development projects. House Bill 6331, or the proposed “Public-Partnership Act” was endorsed for plenary approval by the committees on appropriations; public works and highways; and ways and means. Speaker Feliciano Belmonte Jr. said the bill seeks to amend Republic Act 7718, otherwise known as “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects By the Private Sector, and For Other Purposes,” to further strengthen the basic legal framework in undertaking PPP projects.

Agri fund extension, halal bills approved by House on 3rd reading The House of Representatives gave 3rd reading approval for a measure seeking to extend the use of a special agricultural fund to 2022. House Bill 6162 states that the Agriculture Competitiveness Enhancement Fund (ACEF) “shall continue to be set aside up to the year 2022, after which the election of duties from the minimum access volume (MAV) mechanism and the setting aside of the amount collected for the purpose shall terminate.” The ACEF, which was set to end in 2015, was first created in 1996 through Republic Act 8178. Its original termination date was 2007. The law funds ACEF mainly via duties collected on the importation of agricultural products under the MAV mechanism. The sources also include unused balances and repayment by loan beneficiaries including interest.

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Senate eyes broader wiretapping law vs drugs Anti-narcotics units will be allowed to conduct wiretapping on suspected drug syndicates under a proposal being tackled in the Senate to amend the anti-wiretapping law. Senator Grace Poe, chair of the Senate committee on public order and dangerous drugs, said she would report out the proposal in the plenary before Congress goes on recess for the long break for the election campaign. Senate Bill 2139 seeks to amend certain sections of Republic Act 4200, also known as the anti-wiretapping law, which would allow anti-drug units like the Philippine Drug Enforcement Agency (PDEA) to conduct electronic surveillance on suspected drug lords and drug traffickers but with a court order. Sen. Poe expressed optimism that the amendments to the anti-wiretapping law would give anti-drug units more teeth to go after big fish involved in the illegal drug trade. The measure also provides safeguards against abuse by lawmen.

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