The remaining workers of the financially troubled Hanjin Heavy Industries and Construction-Philippines on Friday, March 1, accused the giant shipbuilder of barring them from entering the company’s premises in Subic.

Virgilio Rodrigo, general secretary of the workers’ group Samahan ng mga Manggagawa ng Hanjin, said 100 workers staged a protest rally at one of the company’s main gates at 7 am after they were not allowed to report for duty.

The workers said they could no longer swipe their company IDs at the facility’s entrance.

According to Rodrigo, the workers who were locked out of the shipyard belonged to the remaining group which refused to accept the voluntary retrenchment package previously offered by Hanjin management.

The protesting workers held banners demanding the company to give them their jobs back.

Rodrigo said 15 more subcontracting companies of Hanjin have issued notices of closure effective March 31.

He said the workers were given the promise that they would receive their salary for March and separation pay.

Hanjin had earlier declared bankruptcy because it owed some $400 million from Philippine banks aside from $900 million in debts from lenders in South Korea.

The Korean company filed a financial rehabilitation plan before the Olongapo City Regional Trial Court Branch 72.

Last month, the court granted its petition for receivership and placed the South Korean shipbuilding firm under corporate rehabilitation.

Its liquidity problem had forced it to lay off more than 7,000 workers in December last year.

Source: rappler.com

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Photo Credit: magnaanimaeducation.wordpress.com

A Department of Education (DepEd) order uploaded on the agency’s website has mistakenly removed graduation rites for Grade 6 students.

In a memorandum issued on Friday, Education Secretary Leonor Briones apologized for the confusion caused by the error, clarifying that Grade 6 students will still have their graduation ceremonies at the end of the current school year next month.

“The moving-up ceremonies instead of graduation for Grade 6 completers is under discussion by the executive committee,” she said. “Should this be approved, DepEd assures all concerned that this will be announced with sufficient lead time.”

Two versions of DepEd Order No. 2, series of 2019 dated Feb. 18, were uploaded by the agency on its website.

In the first version, only Grade 12 or senior high school students would have graduation rites, while kindergarten and Grades 6 and 10 completers will either have moving-up or completion ceremonies.

The newer version reverted to the previous set-up, where Grades 6 and 12 completers will take part in graduation rites while kindergarten and Grade 10 completers will have moving-up or completion ceremonies.

The error caused confusion among schools, with local offices such as the schools division in Tagum City issuing a memorandum saying only senior high school students will have graduation rites.

The end of school year ceremonies will be held between April 1 to 5 in public schools, while private schools have the discretion to set their own schedules.

Briones previously called for “simple but meaningful” ceremonies that would encourage civil rights, a sense of community and personal responsibility.

“While these rites mark a milestone in the life of the learners, these should be conducted without excessive spending, extravagant attire or extraordinary venue,” she said.

“No DepEd personnel is allowed to collect any kind of contribution or fee for graduation, moving up or completing ceremony,” added the DepEd chief in connection with public schools.

She also warned school officials against turning end of school year activities into political events.

“The end of school year rites and moving up or completion ceremony shall be conducted in an appropriate solemn ceremony befitting the learners and their parents and shall not be used as a political forum,” Briones said.

Source: philstar.com

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Nationalizing the strategic port could save jobs and build a national industry

It is high time for the Philippine government to build a domestic naval industry. © Hanjin Heavy Industries and Construction Philippines

The possible Chinese purchase of a strategic shipyard in the Philippines has provoked an angry backlash in the country, reflecting simmering anxieties regarding President Rodrigo Duterte’s Beijing-friendly stance. But there is an alternative solution which would save jobs, build a key national industry and maintain security.
Unable to service $1.3 billion in debt, the Philippine subsidiary of South Korean shipbuilder Hanjin filed for bankruptcy protection in January. It sought help from the Philippine government to rescue its Subic Bay facility, once the world’s fifth largest shipbuilding yard, and save the jobs of its 3,000 workers.

The Duterte administration then announced Chinese interest in the purchase of the 300-hectare yard. Ceferino Rodolfo, managing head of the Philippines’ Board of Investments, said last month that at least two Chinese companies had expressed an interest.
Without providing details, officials implied that the facility was being offered for a bargain price, having lost close to 80% of its value in the past two years alone. The identity of the two Chinese bidders has not been disclosed, reflecting government concern over a potentially negative public response. The authorities have mentioned no other potential bidders.
The Subic complex, once home to America’s largest overseas naval base, is a highly strategic site facing the South China Sea. The U.S. Navy continues to enjoy regular access to the area with its prized deep-water port facilities, which also host visiting warships from Manila’s traditional allies, including Japan and Australia.

Unsurprisingly, the Philippine military establishment has vehemently opposed a Chinese takeover of the site, reflecting lingering concerns about Beijing’s intentions. Defense Secretary Delfin Lorenzana has instead advocated for Philippine Navy takeover of the facility than handing a strategic shipyard to the Chinese.

Since the launch of the Belt and Road Initiative in 2013, Chinese companies have become involved in the construction and operation of more than 40 ports in 34 countries. Two Chinese companies, China Ocean Shipping Company (COSCO) and the China Merchants Group, have taken over operations at a number of strategic port facilities across the world, from Piraeus in Greece to Darwin in Australia.

On paper, the acquisitions are purely for commercial purposes, with Chinese companies providing capital and logistics capacity for the sustained operation of several busy ports.

Yet, there are legitimate fears that China’s intentions transcend purely commercial purposes and are intended for different ends, namely securing a grip on strategic assets and facilities on global shipping lanes.

In particular, the Philippines defense establishment is concerned about replicating the experience of Sri Lanka, where the state-affiliated China Harbor Engineering Company has secured a 99-year-lease over the Hambantota port under a controversial debt-for-equity settlement.

During a visit to Manila in November, Chinese President Xi Jinping signed a package of agreements, including on Philippine participation in the BRI. The Hanjin port facility takeover is likely part of China’s broader efforts to secure access to key facilities in the Philippines under a Beijing-friendly presidency.

Duterte has warmly welcomed big-ticket Chinese investments, including the prospective entry of China Telecom into the heavily protected telecommunications sector. The State Grid of China already has a 40% stake in the Philippines’ national grid.
Chinese companies have also stepped up investment in sensitive locations, including the Clark special economic zone, the former site of America’s largest overseas air base, as well as in the vicinity of key military bases such as the Bautista air base, which lies close to several disputed features in the Spratly Islands.

Filipino strategists fear an “economic cabbage strategy,” similar to what has occurred in the South China Sea, where Chinese entities surround and dominate an area layer by layer with an expansion of their investment footprint.
Subic, which lies less than 100 km northwest of Manila and just over 100 nautical miles from the contested Scarborough Shoal, is an enticing prospect for China. Under a previous administration, Manila proposed American positioning of equipment as well as upgrading military facilities in the area.

At least two Chinese companies had expressed an interest in the purchase of the 300-hectare shipyard. © Hanjin Heavy Industries and Construction Philippines

Duterte, however, has blocked the move, limiting American access to visits by its warships. Now, China has a historic opportunity to take over large portions of the area and monitor other countries’ military activity in the area.
Leading legislators such as Senator Grace Poe have openly opposed any Chinese takeover of “critical and strategic national assets.” Last month, senators, led by deputy senate President Ralph Recto, cited national security considerations in blocking a $400 million deal between the China International Telecommunication Construction Corporation and Philippine security agencies for the installation of 12,000 surveillance cameras across the country.

The Philippine defense establishment has instead proposed nationalization of the shipping yard to save the jobs and develop the industry.

Recognizing public sentiment and sensitive to the demands of the military, Duterte seems to have welcomed the suggestion. Under Phase 2 of the Philippine defense modernization program, the country is allocating $5.6 billion for new acquisitions, with growing focus on naval assets and platforms.

With defense spending rising and a generally healthy economy, it is high time for the Philippine government to build a domestic naval industry. The Duterte administration has consistently touted the need for an “independent” foreign policy and build-up of domestic steel and manufacturing sectors.

Conscious of the risks of nationalizing the industry, the Philippine government is considering some private non-Chinese investment in the yard, which will not only save jobs but also contribute to the development of domestic shipping for commercial and military purposes.

Neighboring countries such as Indonesia have already produced their own warships, with the Philippines among their clients. By taking over the Hanjin shipyard, potentially through a public-private consortium, Manila would acquire greater strategic self-reliance, build new employment opportunities, and gradually scale up a nascent military-industrial complex. Above all, it would protect strategic Philippines assets and facilities from potentially hostile actors.

Source: asia.nikkei.com

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(Part 1)
MANILA, Philippines — The Philippines may not be the most populated country in Southeast Asia, but its capital, Manila, is now the most densely populated city in the world.

Manila has over 42,000 inhabitants per square kilometer with the city’s population estimated at 21.3 million, according to the Philippine Statistics Authority in an October 2018 report.

It’s no wonder that many private companies – local and foreign – are offering reclamation as a viable solution to decongest the metropolis.

But Manila is just one. There are so many other dense cities in the country and in many of these places, reclamation is also actively being pursued by various proponents.

Reclamation 101

Reclamation is the process of creating new land from oceans, riverbeds, lakebeds, or other bodies of water.

It’s also happening in many parts of the world, including dense places such as Hong Kong and Singapore.

In the Philippines, there are at least 19 reclamation projects in various stages of permitting, development and implementation, according to the Philippine Reclamation Authority (PRA).

These include the Horizon Manila Reclamation, a 419- hectare joint venture project between the local government of Manila and JBros Construction Corp.

The City of Pearl Reclamation Project, a 407-hectare project is another reclamation development, also by the local government of Manila and UAA Kinming Group Development Corp.

The Manila Waterfront City Reclamation Project is another project. It is a 318-hectare reclamation venture by the local government of Manila and its private sector partner, Waterfront Manila Premier Development Corp.

Another reclamation venture is the Tieng family’s Manila Goldcoast Development Corp. (MGDC), called the Solar City, which is a 148-hectare project. It is also joint venture with the Manila local government unit.

The Sy family’s SM Prime Holdings Inc., meanwhile, is the private sector partner of the local government of Pasay for the “SM Project” which covers 360 hectares.

Another project is Davao-based businessman Dennis Uy’s Pasay Harbor City reclamation which covers 265 hectares. It is also a joint venture with the Pasay local government.

The project is being developed by Uy’s Udenna and the China Harbor Engineering Co.

There are several other reclamation projects in the pipeline not just in the city of Manila, but in other parts of the country as well including Cavite and Cebu.

Tasked to regulate reclamation is the PRA, which was formerly the Philippine Estates Authority (PEA). It acts as the primary regulatory agency of the government to assess the technical, environmental, financial, and socio-economic merits of such projects.

Proponents of reclamation projects are the local government units (LGUs) and their private sector partners.

The PRA, in advocating for reclamation, believes that adding land area to Metro Manila will address the problem of “urban sprawl” and provide agglomerative effects that will eventually boost economic growth.

“Thousands of Filipinos have benefitted from completed reclamation projects that include the Cultural Center of the Philippines, Philippine International Convention Center, the financial center area – which includes the Philippine National Bank, Government Service Insurance System, the Senate and the Department of Foreign Affairs – the Mall of Asia complex, Cavitex, the South Road Project (SRP) in Cebu and numerous ports and causeways nationwide,” PRA general manager and CEO Janilo Rubiato said.

He said LGUs bordering Manila Bay are all in need of additional space because of rapid growth.

They cannot encroach on the areas of their neighboring LGUs.

“The natural tendency, therefore, is to explore the possibility of a seaward extension within the area of the LGU’s territorial jurisdiction,” Rubiato said.

He noted that it is the waterfront that has attracted settlements and economic activity for generations all over the world.

“Most developed countries have responsibly utilized their waterfronts for coastal development, while at the same time protecting the environment and the welfare of their people,” he said.

Target

The PRA’s target, based on its 2016 annual report, is to contribute and promote economic and social progress through environmentally sustainable land reclamation of approximately 700 hectares and effective public estates development and management by 2020.

Despite trumpeting the benefits of reclamation, however, the PRA and reclamation proponents have constantly faced stumbling blocks for the different projects.

The issues are varied as they are endless – environmental issues, livelihood and disaster risks, among others.

EO 146 vs EO 74

Because of the controversies, the administration of former president Benigno Simeon Aquino III issued EO 146, a law that tightened the noose on reclamation projects.

The order designated the National Economic and Development Authority (NEDA) Board as the final approving authority on reclamation projects.

At the time, business groups such as the Makati Business Club (MBC) and the Management Association of the Philippines (MAP) lauded the measure, saying that “it is a prudent response to public apprehension over the risks posed by proposed reclamation projects, most extensively along Manila Bay.”

The EO essentially limited the PRA’s regulatory role to evaluating and recommending to the NEDA Board the approval of all proposed reclamation projects.

The business groups said “EO 146 sends an encouraging signal that the national government is more conscious of pursuing a holistic approach to progress, one that balances the need to generate government revenue streams and employment with the protection of the environment and public safety.”

However, reclamation proponents did not like the EO, as their unsolicited proposals had to be subjected to a second round of bidding.

Some players said this was the reason many reclamation projects did not progress during the Aquino administration.

Industry sources also believe that some sectors, including other property developers, were the ones who lobbied for the passage of E0 146.

“A certain property company felt threatened by the competition that reclamation developments would bring,” one source noted.

The Duterte administration, in stark contrast to the Aquino government, issued EO 74 which effectively rescinded EO 146.

Under the EO, the authority to approve reclamation projects now rests with the Office of the President and no longer with the NEDA.

The real reason behind the EO is not clear.

Officially, the Duterte administration said it would pave the way for a more streamlined process, while at the same time ensuring better scrutiny of the projects.

Whatever the reasons are, industry players welcome EO 74. They said this would speed up the process instead of going through the NEDA which takes so much time.

“It will also remove corruption at the local government level,” a chairman of a company involved in reclamation told The STAR in an interview last Feb. 18.

Dennis Uy’s reclamation project

Meanwhile, in a society that loves gossips, sources said EO 74 may have been issued to benefit the Duterte administration’s friends, including his long time pal from Davao, businessman Dennis Uy.

Some believe that Uy may be interested in doing other reclamation projects aside from the one he is already pursuing. An expedited process would thus benefit his group.

But Uy dismissed talks that he is interested in other projects. “No,” he told The STAR when asked to comment on the rumors.

“Udenna is not looking into, or considering any land reclamation project at this point other than what’s already publicly known,” Udenna head of investor relations Leo Venezuela said.

A ranking official from his group also said that Uy is simply doing business and is not afraid to looking into different opportunities in different sectors.

The official said it was unfair to question Uy’s actions just because he is from Davao.

Whatever the reasons are for changing the regulatory environment surrounding reclamation projects, industry players hope the new EO would, indeed finally, pave the way for the different developments to proceed.

Source: philstar.com

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Many have claimed to have the solution to Metro Manila’s traffic problem, but the daily snarl continues to plague the lives of everyone who lives in the city—buses still overload passengers, and there are constant kilometric lines at the train stations, thanks to either shortage or poor maintenance, or both. But there might be a bit of hope left for us: The construction of the Metro Manila Subway is set to begin tomorrow, February 27, and with a Filipino-Japanese consortium helming the project, we might just have a train system similar to that of Japan’s by 2025.

The first three stations to be built will be along Quirino Highway, Tandang Sora, and North Avenue. The first phase of the construction also includes tunnel structures, a depot in Valenzuela, and the building and facilities for the Philippine Railway Institute. Partial operations for the three stations are planned for 2022.

The Metro Manila Subway (MMS) is envisioned as the most expansive railway system in the Philippines, spanning 36 kilometers across 15 stations running from Quirino Highway to NAIA Terminal 3 in Pasay and FTI in Taguig, the Department of Transportation said in a statement. It will also have stations at the city’s business districts in Makati, Ortigas, and Bonifacio Global City.

Hailed as the first underground railway in the Philippines, the MMS is expected to serve up to 370,000 passengers per day, with a capacity of up to 1.5 million passengers per day once it starts its full operations. It is designed to run trains at the speed of 80 kilometers per hour.

Source: spot.ph

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