Duterte: Congress to decide on TRAIN law suspension

Published 2:04 AM, June 03, 2018

'There's no value in giving so much importance of what I want because, kung sabihin ko naman na, huwag, it would be
needed for the 'Build Build Build,' at kung sabihin nila, talagang palitan natin, wala naman akong magawa,' says
President Rodrigo Duterte.

MANILA, Philippines – President Rodrigo Duterte said on Sunday, June 3, that it would be up to Congress to decide on
calls to amend or suspend the tax reform law amid rising prices of fuel and basic commodities.

"I leave it to Congress whether or not to amend, suspend or modify the law," Duterte said in a news briefing at the
Ninoy Aquino International Airport Terminal 2 before he boarded a flight to South Korea for an official visit.

The President was asked for his position on calls to suspend the Tax Reform for Acceleration and Inclusion (TRAIN) law,
in view of higher prices.

Duterte said his position on TRAIN should not be given "so much importance" as lawmakers would have the final say on
the law they had enacted.

"There's no value in giving so much importance to what I want because, kung sabihin ko naman na, huwag, it would be
needed for the 'Build Build Build,' at kung sabihin nila, talagang palitan natin, wala naman akong magawa," he said.

(If I say, no, it would be needed for the Build Build Build, but they say, let's amend it, I can't do anything.)

"At kung sabihin naman nila na, well, we'll just have to bite the bullet and go on, e wala rin akong magawa kung iyan ang
decision nila (And if they say, well, we'll just have to bite the bullet and go on, I also can't do anything because that is
their decision)," he said.

Some groups and lawmakers are calling for the suspension and amendment of the TRAIN law in view of the price
increases of fuel and basic commodities.

Senator Grace Poe, who has led hearings on the impact of the law in several regions, has urged government agencies to
release subsidies provided under TRAIN.

Inflation reached 4.5% in April, the highest in 5 years, owing to higher world oil prices which amplified the impact of
TRAIN, especially on the poor.

The TRAIN law, which imposed higher taxes on fuel, vehicles, and sweetened beverages, was implemented on January 1,
2018.

– Rappler.com
DOF criticized for 'misleading' inflation graph
Ralf Rivas
Published 7:50 PM, June 10, 2018

Ex-Department of Finance undersecretary Sunny Sevilla says he is 'dumbfounded' by his former agency's 'tone-deaf,
misleading economic commentary'

MANILA, Philippines – Ex-Department of Finance (DOF) undersecretary Sunny Sevilla slammed his former agency for
posting a "tone-deaf" and "misleading" graph showing inflation in the Philippines over the last 30 years.

The DOF's Facebook post stated that inflation in the country stood at 6.3% on average over the past 3 decades, and
4.1% year-to-date. (READ: Philippine inflation spikes at 4.6% in May 2018)

It also showed that average inflation during former president Corazon Aquino's term stood at 10.2%, while it has just
been 2.8% during President Rodrigo Duterte's term. The post did not indicate the average inflation rate during the
dictatorship of Ferdinand Marcos.

The DOF even went on to explain in the comments section that the graph was intended to show that the government is
supposedly "doing quite well in making our inflation low and stable." (READ: [OPINION] Higher inflation: Is TRAIN to
blame? [Part 1] and [Part 2])

It also attempted to appease growing concerns over the Tax Reform for Acceleration and Inclusion (TRAIN) law.

"Implementation of measures to help the poor, such as the unconditional cash transfers under the TRAIN law... are
being accelerated by various government departments so no one will be left behind in the race towards a
#ProgressivePH," said the DOF in its Facebook post. However, Sevilla said he was "dumbfounded" by the finance
department's commentary.

What's wrong with it?

Sevilla said the DOF was wrong to directly link presidential terms to inflation. He also questioned the agency's move to
compare Duterte's term – just about to wrap up its second year – to the average inflation of the full terms of past
presidents. "These are such obvious indicators of economic illiteracy and political sycophancy that they shouldn't be
taken seriously," Sevilla said.

Meanwhile, economics PhD candidate and Rappler columnist JC Punongbayan explained that comparing the average
inflation rate across administrations was "uninformative because inflation is due to many factors that are not
attributable to any one president."

"Although inflation has been going down in the past decades, this doesn't remove the fact that there's continuous
acceleration of prices in recent months, partly due to TRAIN," Punongbayan said. According to Punongbayan, the DOF's
graph does not give the full picture of the history of inflation in the Philippines. "Right before Cory [Aquino], inflation
reached more than 50%, and right before Duterte's [term], inflation was almost 0%," he said. "[The rise of prices]
started late 2015, [but the] DOF is burying this fact by showing the annual inflation figures plus the averages per
president," he added.

What the DOF should have posted

Sevilla offered an alternative Facebook post for the agency to use. "'Dear Filipinos, we get it. We didn't expect inflation
to be this high. We were mainly unlucky. We had no idea oil prices would go up to this level. But some of this is our
fault. We messed up on the rice situation and didn't import enough on time,'" he said. Sevilla also recommended that
the DOF assure Filipinos they are not viewed as "crybabies" for expressing their concerns about rising prices. The former
finance undersecretary said the government's economists must be "more sensitive to the potential negative effects of
further rounds of [tax] reform."

– Rappler.com
Why Pagcor 'provisionally' approved Chinese firm's Boracay casino
Chrisee Dela Paz
Published 7:55 PM, April 11, 2018

The Philippine Amusement and Gaming Corporation clarifies Galaxy Entertainment Group and its local partner still need
to follow a 'long and tedious' process before getting a regular casino gaming license

MANILA, Philippines – The operator of a soon-to-be $500-million, 23-hectare integrated resort and casino in Boracay
recently bagged a provisional license from the Philippines' gaming regulator, raising concerns about its timing with the
island's impending 6-month closure. Boracay Philippines Resort and Leisure Corporation (BPRLC) – a joint venture
between Chinese casino operator Galaxy Entertainment Group and Leisure & Resorts World Corporation – on March 21
bagged a provisional gaming license. This was just a few days before President Rodrigo Duterte ordered the 6-month
closure of the island starting April 26. Boracay stakeholders and economists have questioned the government's
intentions for closing Boracay to tourists.

Initial requirements met

Defending its decision, the Philippine Amusement and Gaming Corporation (Pagcor) said it granted BPRLC the
provisional license after the group met the initial documentary requirements, including a Certificate of No Objection and
a minimum investment commitment of $300 million. "Pagcor, being a government entity under the Office of the
President, abides by the laws and orders of the land," the gaming regulator said in a statement on Wednesday, April 11.
"As regulator, it ensures that its licensees comply with pertinent laws, rules, regulations, and ordinances promulgated by
authorities relative to the establishment and operation of casinos," it added. It was on August 3, 2017 when AB Leisure
Global Incorporated, a subsidiary of Leisure & Resorts World, formally applied for a license to operate a casino in
Boracay. "The Letter of Intent was received by Pagcor together with a Certificate of No Objection from the local
government of Malay, Aklan," Pagcor said. A deed of assignment between AB Leisure Global and BPRLC was then signed
on January 9, 2018. Pagcor said BPRLC's application was favorably considered, as "Boracay falls under the Greenfield
zone category," The Greenfield zone category refers to an area within rural provinces, cities, or municipalities with high
potential for tourism development and no existing casino.

Start of a long process

"The provisional license is only the start of a very long and tedious process of compliance," Pagcor said. The regulator
added that the license is temporary until the group increases its minimum investment commitment to $1 billion and
completes the project. If it meets these two requirements, only then would it be granted a regular casino gaming
license. Pagcor said every integrated resort operator must receive a provisional license first before it gives a Notice to
Commence Casino Operations and eventually, a regular casino gaming license. Regardless of location, Pagcor said the
group is "only allowed to allocate not more than 7.5% of the total gross floor area for gaming." "Moreover, allowable
gaming facilities are restricted based on the number of hotel rooms – 4 standard room keys are required for every
gaming table while two standard rooms are required for every 3 electronic gaming machines," it added. Pagcor said
BPRLC still needs to submit proof of ownership or lease of the land where the casino-resort would be built, a detailed
project implementation and development plan, and an escrow account.

The resort and casino operator is also required to submit a performance assurance, surety bond, financial statement,
and documentary requirements, among others. Galaxy Entertainment Group will be in charge of the development and
operations of the Boracay project. Since Duterte imposed a moratorium on new casinos effective January 13, 2018,
Pagcor has also stopped accepting and evaluating applications. Back in December 2017, Galaxy Entertainment chairman
and founder Lui Che Woo paid a courtesy call on Duterte to discuss his firm's plan of investing as much as $500 million
for a "low-rise, eco-friendly resort development" in Boracay.

Galaxy Entertainment vice chairman Lui Francis also said: "We are very excited about the prospect of investing up to
$500 million into a proposed premium quality, low-rise, eco-friendly resort development located in Boracay, the world's
premier beach destination."

– Rappler.com
LTFRB wants Metro Manila Council to ban tricycles as school service
Aika Rey
Published 10:29 PM, June 09, 2018

The Land Transportation Franchising and Regulatory Board wants to ban tricycles as school transport service, citing
children's safety on the road

MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) will ask the Metro Manila
Council to ban tricycles as school transport service.

In a message to Rappler on Saturday, June 9, LTFRB Board Member Aileen Lizada confirmed that they will write a letter
to the Metro Manila Development Authority (MMDA) to propose the ban to the Metro Manila Council.

The council, which the MMDA presides, will convene on June 22. Metro Manila mayors and legislators are part of the
council.

"We will present this to MMDA requesting, among others, that tricycle be banned as a school transport service because
we already have a denomination in the LTFRB for the safety of the children," Lizada told Rappler in a mix of English and
Filipino.

LTFRB will be strictly enforcing Memorandum Circular 2015-007, which excludes side-facing passenger vans as school
transport service. It only allows vans that have front-facing seats with individual seatbelts for passengers, as well as
minibuses, coasters, coaches, and buses.

Lizada said that side-facing passenger vans will have to be phased out, following the guidelines stipulated under the
circular. The vans will have to be replaced with vehicles that have front-facing seats.

In 2015, when the circular was issued, existing side-facing passenger vans were allowed to operate until the end of their
phased-out years, provided that they install seatbelts for the passengers.

The circular also directed that units that will be phased out in 2016 onwards must be replaced with units that are not
more than 3 years old from the date of manufacture.

Regulating fares

Lizada also said on Saturday that the LTFRB may need to review the fare structure of school transport services.

Currently, operators set how much the fares would be, depending on the distance of the student's home to the school.

"It appears that the previous Board tried to establish [fare setting] but they had a difficult time coming up with a
formula because of the many factors. Nonetheless, it is time for the Board to review the fare structure," she said.

Lizada said they will schedule a consultation with school transport operators on the matter. (READ: Back to school for
20.9M public school students)

For now, Lizada said they may consider "zonal rates" similar to airport coupon taxis, which charge passengers depending
on the area of destination.

They may also consider whether a student is enrolled in a private or public school in setting the fare scheme.

The LTFRB may also have to take into account that the school calendar runs for about 10 months, since drivers and
operators of school transport services do not have income for 2 months.

"Let's have some uniformity [in fares] by starting with a dialogue," Lizada added.

– Rappler.com
DOTr to scrap bus rapid transit project
Aika Rey
Published 8:04 PM, June 08, 2018

The Department of Transportation requests for the cancellation of the bus rapid transit projects in Metro Manila and
Cebu, citing infrastructure limitations. But officials and experts are not sold with the idea

MANILA, Philippines – There might no longer be a bus rapid transit (BRT) project in Metro Manila and Cebu,
transportation officials confirmed. In a message to Rappler, Road Transport Undersecretary Thomas Orbos said that the
Department of Transportation (DOTr) had submitted their recommendation to the National Economic and Development
Authority (NEDA) to cancel the multi-million project. "We submitted our recommendation to cancel the project, but
please note that it still has to go to the proper project cancellation process, which will be handled by the NEDA ICC
(Investment Coordination Committee), and eventually by the NEDA Board," Orbos said on Thursday, June 7.
Transportation Undersecretary Ruben Reinoso said constructing a BRT in Metro Manila will face physical constraints,
citing a preliminary study conducted by the Asian Development Bank (ADB). "[I]t may be technically difficult or
technically not feasible to implement because of the presence of too many flyovers," Reinoso said. But legislators,
government officials, and experts are not sold on scrapping the idea.

No Metro Manila BRTs?

The House committee on Metro Manila development raised a concern over the cancellation of the project in a meeting
with the DOTr, NEDA, and Department of Finance (DOF) on Wednesday, June 6. Two BRT projects were supposed to be
implemented in Metro Manila. Line 1 was supposed to run a 12.3-kilometer route from Quezon City Memorial Circle to
Manila City Hall via Quezon Avenue. Meanwhile, Line 2 was supposed to cover a 48.6-kilometer route along EDSA, with
integrated routes along the Ortigas and Makati business districts and Bonifacio Global City. The DOTr had written to the
DOF, seeking the cancellation of the project in a December 7, 2017 letter. The DOTr also wrote to NEDA in May 28,
affirming its support for a railway project instead, covering similar planned routes for BRT Line 1. During the meeting on
Wednesday, Transportation Assistant Secretary Arnulfo Fabillar said that the projects had been shelved, subject to
further studies.

Quezon City 2nd district Representative Winston Castelo, who chairs the Metro Manila development committee,
slammed the DOTr's position on the issue. "You're asking the public to suffer for the reason we don't know... You have
requested funding from Congress, only to reverse your decision after so many years," Castelo said. The lawmaker
suggested that the funds allocated for the BRT project be transferred to the Metro Manila Development Authority
(MMDA) instead, for the agency to implement the project. Under the 2018 national budget, an initial P274.78 million
had been allocated for the Metro Manila BRT Line 1, while Line 2 received a budget of P300 million. NEDA had approved
both BRT projects. In 2017, the Board identified these as part of the 75 high-impact priority projects of the government.

No Cebu BRT too?

In a document acquired by Rappler, a letter to Finance Secretary Carlos Dominguez, dated April 12, 2018, signified the
DOTr's request to cancel the P11-billion Cebu BRT project. The DOTr argued that Cebu City's road infrastructure is not fit
for the BRT project, citing the narrow city roads and lack of depots and stations for the project. "As a result of the city's
limited road infrastructure, the BRT project would be forced to operate on mixed traffic, thus, making the service
inefficient. This runs counter to our mandate to provide an efficient, effective, and reliable public land transportation
system," the letter said. The letter was signed by Transportation Secretary Arthur Tugade and Presidential Assistant for
the Visayas Michael Dino.

In response, Cebu City Mayor Tomas Osmeña, in a letter to Dominguez on April 18, 2018, requested for the
"reinforcement" of the BRT's approval. The city mayor argued in his letter obtained by Rappler that "Cebu City will have
to suffer for the next 15 years with worsening traffic congestion if the Cebu BRT is cancelled without any viable
alternative." NEDA Secretary Ernesto Pernia, in response to Osmeña's letter, said they had instructed the DOTr to review
the technical requirements of the BRT project to be completed in the next two months. NEDA also asked the DOTr to
come up "with a more robust evidence including quantitative analysis" to support their recommendation to cancel the
project. An alternative proposal was also sought from the DOTr to be submitted to the NEDA Board by June 30.
Support for railway?

The transportation department has been eyeing a 25-kilometer subway project that will cross Mindanao Avenue in
Quezon City to the Ninoy Aquino International Airport in Pasay City. Tugade, in earlier statements, said the
groundbreaking ceremony for the project has been scheduled for the end of 2018. Tugade wants the subway project
done before 2022. In a recent forum, Tugade also signified disinterest in the BRT project, saying that assigning a
dedicated lane would also worsen traffic congestion on Metro Manila roads. "It is known that I was not inclined to
approve a BRT system at EDSA and Cebu...Can you dedicate one more lane in a place where there are only 3 lanes? Can
you dedicate a lane in a system like EDSA, where you have 6 lanes but are already overcrowded?" Tugade said.

In Cebu, a similar railway project is being looked at, but no official proposals have been made, according to
transportation officials. Dino, a known critic of BRT, said in a Facebook post that the project will "not solve the traffic
problem but will only worsen it." What the Presidential Adviser for the Visayas wants for Cebu City is a railway project
instead. Yet Tugade said that the department will make a "last-ditch effort" to push for the BRT project by meeting
World Bank representatives on Friday, June 8. Osmeña, a staunch supporter of the BRT, was not invited, according to a
Cebu Daily News report.

Is BRT the solution?

Some experts had earlier described the BRT project as a "fiasco in the making," citing infrastructure limitations in cities.
But Dayo Montalbo, Associate professor at the University of the Philippines School of Urban and Regional Planning, said
BRTs could help bring more people to their destinations because of their capacity. Montalbo, a faculty fellow at the
National Center for Transportation Studies, was part of the team that conducted the feasibility studies for Manila-
Quezon Avenue and Cebu BRT projects. Montalbo pointed out that BRTs have light infrastructure requirements
compared to railway projects, which take years to implement. "The BRT has light [infrastructure] requirements
compared to rail-based projects which have civil works requirements – not to mention the higher cost," he told Rappler
in a phone interview on Friday. He said that BRTs will definitely have dedicated lanes – which shouldn't be seen as a
problem if the priority is mass transit. With the planned cancellation of BRTs, he said that the government is "implying a
support for private vehicles" which is not consistent with sustainable transport policies.

He said that the physical constraints being cited by the DOTr are not necessarily detrimental to the BRT project: "The
BRT can be planned around that, if those are recognized as physical constraints." The transportation expert also said
that implementing the BRT project complements the objectives of the public utility vehicle (PUV) modernization
program. "Who doesn't want to change the bus system? BRT offers a golden opportunity for reform," he said.

– Rappler.com