‘Omnibus’ PPP law to cover govt, private infra eyed
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HE Marcos administration aims to create an “omnibus” public-private partnership law that will push for the consolidation of all infrastructure undertakings between the government and the private sector. In a briefing on Monday, National Economic and Development Authority (Neda) Undersecretary for Investment Programming Joseph J. Capuno said this law would consolidate several rules that currently exist on PPPs. Capuno gave assurances that the omnibus law will take into consideration efforts to safeguard the national interest and allocate the risk between the
private and public sectors. “We want to amend the law in such a way that we incorporate joint venture agreements between local governments and private sectors so that we don’t have too many laws, you know, governing public-private partnerships. We want one, as if it were an omnibus law that will govern all partnership agreements with the private sector,” Capuno said. Capuno added that the omnibus “shouldn’t only be probusiness; it shouldn’t be only progovernment” to protect all stakeholders. He said new policies will also be included in the law that previous rules have been silent on. In September, the govern-
ment released the latest version of the Build Operate Transfer (BOT) Law Implementing Rules and Regulations (IRR) which is expected to entice more private sector players to participate in public infrastructure projects. One of the major changes is on the definition of the Material Adverse Government Action (MAGA) which now covers all government actions, and not just the Executive branch. If these government actions discriminate against the proponent and have an adverse effect on its ability to undertake the project, the contract can be terminated and termination payment will be due to private proponents.
Apart from the omnibus law on PPPs, Capuno said a priority goal for Neda is to raise the minimum threshold or the thresholds for projects to be elevated to the Neda Board for approval, given the increase in inflation. In 2017, the Neda Board raised the Investment Coordination Committee (ICC) threshold to P2.5 billion from P1 billion. This meant only projects costing P2.5 billion and over will be evaluated by the Neda. However, Capuno did not indicate any proposed threshold as of press time, saying only that the minimum threshold will be raised to take inflation into account. See “Omnibus,” A2
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Tuesday, December 20, 2022 Vol. 18 No. 69
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By Cai U. Ordinario
SEC probes PLDT budget overruns, shares selloff
@caiordinario
HE traffic jams and Christmas decorations are among the few indicators that GDP growth in the fourth quarter will be robust, according to the National Economic and Development Authority (Neda).
In a briefing on Monday, Socioeconomic Planning Secretary Arsenio M. Balisacan said the economy has already exceeded the high end of the 6.5 to 7.5 percent target this year in the January to September period. Neda Assistant Secretary for Policy and Planning Sarah-Lynne S. Daway-Ducanes said base-effects, pent-up demand, and remittances will increase consumption and, consequently, GDP growth in the last quarter of the year. “Now we see consumption growth, now see our streets, right to the traffic jams in the streets and in the malls,” Daway-Ducanes said. “When we go to the mall we jokingly say now, ‘it’s the revenge of the Christmas trees, and the Christmas lights.’” T he strong consumption spending is expected to continue next year, despite the headwinds. Nonetheless, Balisacan said headwinds will prevent the economy from posting higher growth than the adjusted target of 6 to 7 percent. Balisacan said at least for the past decade, consumption has been the primary driver of economic growth. Strong consumption in the country is not expected to change next year or in the medium term. He added that agriculture of course is going to be another growth driver for the economy “to the extent that we can increase productivity there, and temper any pressures extended or exerted on food prices.”
By VG Cabuag @villygc
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MERALCO IN MOTION A Meralco lineman works on an electric cable in Las Piñas City to assure customers quality service as the holiday season nears. The company has asked a unit of SMC Global Power Holdings Corp.to pay the added cost it has been incurring for sourcing power from the spot market when the latter stopped supplying to electricity distributors. NONIE REYES
HE Securities and Exchange Commission on Monday said it is “closely monitoring” issues that have arisen from the recent disclosures of PLDT Inc. regarding what the company described as “budget overruns” totaling P48 billion over the last four years. “In this light, the SEC has immediately commenced an inquiry into the matter,” the agency said. The reported “budget overruns,” as well as the selloff in PLDT shares before the publicly listed company could make the official disclosure, are areas of concern for the SEC, being the regulator of the securities market and the champion of investor protection in the country. Among others, the SEC has ordered PLDT to clarify its disclosures to the SEC and the Philippine Stock Exchange Inc., in relation to statements attributed by the media to the company and its officers, especially with regard to the nature of the P48-billion expenditure. The SEC has also directed PSE and Capital Markets Integrity Corp. to submit initial reports on their See “SEC,” A2
DOLE’S ’23 FOCUS: HELP FOR MICRO ENTERPRISES By Samuel P. Medenilla @sam_medenilla
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OOS T I NG suppor t for micro enterprises and expanding skills training initiatives will be the focus of the government’s pandemic recovery roadmap which will start next year, according to the Department of Labor and Employment (DOLE). T he measures inc lude fo cusing on the skills needs of 10 key employment generating sectors and the release of updated implementing rules and regulations for Republic Act No. 11058 or the Occupational Safety and Health (OSH) Law,
which will ease its application for micro establishments. At DOLE’s yearend press conference on Monday, Labor and Employment Secretary Bienvenido E. Laguesma disclosed they decided to zero-in on micro firms since these comprise the majority of the country’s businesses. “We believe if we strengthen micro, small, and medium enterprises [MSME], they will be able to produce more jobs, which will increase the opportunities [of workers] to have a family income,” Laguesma said in Filipino. Based on the latest Department of Trade and Industry (DTI) data, there are 850,127 micro establishments—companies with less than
10 workers -- nationwide. This is 88.77 percent of 957,620 businesses, as registered by DTI in 2020.
Priority sectors
LABOR Undersecretary Carmela I. Torres said among their initiatives to promote economic growth will be to address the demand requirements of establishments in line with the Philippine Development Plan 2023-2028, which was approved on Friday. She said they coordinated with the Technical Education and Skills Development Authority (TESDA) to “align training regulations and competencies and requirements” of 10 priority sectors. See “Dole’s ’23 focus,” A2
See “Silver lining,” A2
PESO EXCHANGE RATES n US 55.7090
n JAPAN 0.4100 n UK 67.6920 n HK 7.1573 n CHINA 7.9869 n SINGAPORE 41.0047 n AUSTRALIA 37.3306 n EU 59.0070 n KOREA 0.0426 n SAUDI ARABIA 14.8135
Source: BSP (December 19, 2022)