Manila Government will award ₱10-Billion Mactan, Cebu International airport project in Sept 2013

The Aquino administration is set to award the ₱10-billion contract for the Mactan-Cebu International Airport project in September to cope with the growing number of tourists using the gateway to enter the country.

The Department of Transportation and Communications and Mactan-Cebu International Airport Authority has invited prospective bidders to apply to pre-qualify and bid for the construction of a new passenger terminal; rehabilitation and expansion of the existing terminal; operation, maintenance and management of the terminals.

The project involves the construction of the new passenger terminal, apron for the new passenger terminal, rehabilitation and expansion of the existing terminal, installation of all the required equipment and other associated facilities, installation of the required information technology and other equipment commensurate with the operations as well as operation and maintenance of both the new and existing passenger terminals.

The pre-qualification, bids, and awards committee (PBAC) is set to hold a pre-qualification conference on Jan. 28 and prospective bidders are required to submit their qualification documents on or before Feb. 28.

The PBAC would then require pre-qualified bidders to submit both technical and financial proposals, a bid security, as well as other supporting documents on Aug. 2 that would be evaluated by the committee.

The PBAC would first review the bidders' technical proposals after which the committee would then evaluate the financial proposals of bidders whose technical proposals were rated passed.

The committee would then issue the notice of award to the winning bidder in Sept. 17 and the winner would have to comply with all the requirements within 20 days from official receipt of the notice.

Based on a PPP Center briefing paper, the Mactan-Cebu airport project involves the construction of a world-class passenger terminal building with a capacity of eight million passengers a year as well as the operation and maintenance of the old and new facilities.

The Mactan-Cebu international airport is situated in a 797-hectare property and has a single 3,300 meter runway that is complemented by a full-length taxiway.

The terminal building has a capacity of handling 4.5 million passengers annually on two wings, the domestic wing and the international wing. It is a major trade center in the south for both domestic and international traffic.

The passenger traffic for year 2011 was around 6.2 million passengers.  The deterioration in the level of convenience and lack of ability to handle more passengers may hinder further development  and growth of international airport.

To solve the problem, DOTC is set to bid a contract for the construction of a new world-class passenger terminal building with a capacity of about eight million passengers per year; and the operation of the old and new facilities.

The construction of a new world-class passenger terminal, including all related facilities, is proposed to separately cater to domestic and international operations with an initial investment of ₱10.3 billion and a future expansion of ₱12 billion.

Several companies including diversified conglomerate San Miguel Corp., the tandem of Ayala Corp. and Aboitiz Equity Ventures Inc. as well as Metro Pacific Investments Corp. have expressed interest in the airport project. (http://is.gd/RtTSaA)

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Philippine Navy sends first patrol ship to West Philippine Sea anew -beg China to respect its sovereign territory

China asked United States of America to respect its national interest in Asia; the Philippines asked China to respect its sovereign territory and it's 370 Kilometers from its coast or 200 Nautical Miles (NM) Exclusive Economic Zone as grants from UNCLOS: US will respect china's interest.

As published in the Business World Online Thursday, The Philippine Government once again calls for China to respect the "territorial sovereignty" and the exclusive economic zone after the former sent its first patrol ship to the West Philippine Sea (South China Sea), the Department of Foreign Affairs (DFA) said in a statement on Friday.

"The Philippines strongly objects to the Chinese patrol of Philippine maritime domain in the WPS [West Philippine Sea]," DFA Assistant Secretary and Spokesman Raul S. Hernandez said in a text message to reporters.

"Such patrol will not validate the 9-dash lines [China's claim] and is contrary to China's obligation under international law including UNCLOS [United Nations Convention on the Law of the Sea]," Mr. Hernandez added.

The government reacted to the reports that a patrol ship was sent from China in the disputed areas in the West Philippines Sea.

The dispute between the Philippines and China escalated after the Scarborough Shoal issue. Other countries such as Malaysia and Taiwan claim ownership of parts of the disputed seas. (read further in the Business World Online)

Philippines objections to new Chinese gunboat in the Spratly

MSN News also published that the  Philippines on Friday said it "strongly objects" to China's deployment of a new patrol vessel in the South China Sea, where the two countries have a seething maritime territorial dispute.

Such patrols will not boost China's claim to the disputed territory where the two countries have had a standoff since April, Department of Foreign Affairs spokesman Raul Hernandez said in a statement.

"The Philippines strongly objects to the Chinese patrol of Philippine maritime domain in the West Philippine Sea," the statement said, using the local name for the South China Sea.

It called on China to respect the country's "territorial sovereignty and EEZ", referring to the Philippines' 200-nautical-mile exclusive economic zone.

China's official Xinhua news agency said on Thursday an ocean-going patrol vessel equipped with a helipad would be deployed to the South China Sea, the first of its kind in the area.

In late November, China said it had granted its border patrol police the right to board and turn away foreign ships entering the disputed waters, raising fears of a confrontation.

Both the Philippines and China have overlapping claims over parts of the South China Sea, a major shipping route that is also believed to hold vast mineral resources.

Tensions between China and the Philippines have risen in the area since April after ships from both countries had a standoff over a rock outcropping known as the Scarborough Shoal.

While the Philippines has withdrawn its ships, it says China reneged on an agreement to pull out its own vessels.

China claims the shoal as well as nearly all of the South China Sea, even waters close to the coasts of neighbouring countries. The Philippines says the shoal is well within its EEZ. (read further in MSN News)

Philippines claims South China Sea islands, How Filipinos Discovered the Paradise in the Kalayaan Group of Islands?

Filipinos have settled on Thitu Island as a means to strengthen the country's claim on the Spratlys.

hitu Island is at the centre of one of the biggest territorial disputes in the world.

It is part of the Spratly Islands in the South China Sea, which are believed to be sitting on billions of dollars' worth of oil and gas reserves.

Six countries claim ownership of the tiny archipelago, including the Philippines, which has people living on Thitu Island as a means to strengthen its claim on the Spratlys.

Article published in Jazeera's Jamela Alindogan reports from the Spratlys in the West Philippine Sea (South China Sea).

Watch the Video of the Pagasa Island (Thitu Island) of the Paradise Kalayaan Group of Islands, Spratlys, Province of Palawan, (Old Sultanate of Sulu) Philippines.

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Philippine peso ends 2012 at ₱41.05 vs. US Dollars, up 6.5%

STRONG PESO. The chart pertains to the average peso-dollar exchange rates for every month of 2012. The chart was based on data obtained from the Bangko Sentral ng Pilipinas and PDEX

The Philippine peso, the best-performing Southeast Asian currency in 2012, settled at P41.05 against the dollar on the last day of trading in 2012.

This made the currency 6.53% stronger than the ₱43.919 it started trading at on January 2. This also brought the average exchange rate to around ₱42.228 for the entire year and posted the biggest annual gain since a 19% appreciation in 2007.

The strongest close of the peso for the year was on December 8 at ₱40.862 while the weakest was on January 2 and January 17 at ₱43.919.

While little changed from a week ago, the local currency had a boost from the Philippines' phenomenal growth of 7.1% in the 3rd quarter -- the fastest in Southeast Asia -- as well as expectations that the Philippines is on track to winning its first investment-grade rating.

However, the stronger peso has been a bane to the following sectors:

Overseas Filipino workers (OFW)

With the strong peso, the purchasing power of the funds that OFW send to their loved ones in the Philippines are diminished. This is because the dollars they send home is equivalent to less in terms of pesos.

In January 2 this year, if an OFW sent $100 to his or her family in the Philippines, this is equivalent to ₱4,391.90. Using the exchange rate for the last trading day of the year, the $100 will only be worth P4,105.

This means less pesos to spend for various needs such as education, basic needs like food and utilities, and other expenses. There is also less room for savings and investments.

Total dollar value of remittances, however, has been resilient, data from the Bangko Sentral ng Pilipinas showed. OFW remittances fuel consumer spending, which is a backbone of the Philippine economy.

Business Process Outsourcing (BPO) firms

An appreciating strong peso strikes at the heart of the industry's -- and the Philippines' -- cost competitiveness as an investment destination. Business Processing Association of the Philippines (BPAP) president and CEO Benedict Hernandez said the appreciation of the peso has made handicapped them as they combat challenges from top rival India.

Hernandez had said they would have still remained competitive if the exchange rate stayed at ₱42:$1, but not beyond that since it widens the cost difference between putting up a BPO firm in the Philippines and India.

"The combination of an appreciating peso and a depreciating Indian rupee has provided India with a meaningful cost advantage," the BPAP had said. The Philippines has already dislodged India as the call center capital of the world.

At stake are about 638,00 direct jobs from the voice-based (call centers) and non-voice-based BPOs. Before the exchange rate issue, the industry players were hoping to double this to 1.3 million direct jobs and hit revenues worth $25 billion by 2016.

Exporters

Manufacturers and retailers of products sold abroad are face with Philippine-made products becoming more expensive when the peso appreciates. They either increase the prices of their goods abroad at risk of reducing demand for these items and products, or maintain their dollar prices and suffer losses as their peso-based production costs soar.

While exports are one of the country's highest dollar earners, along with remittances, they are also a key generator of jobs that are put at risk when the business costs become unsustainable. Export groups said this has caused half of the country's small exporters to close shop.

University of Asia and the Pacific (UA&P) economist Victor Abola said the government should allow the peso to depreciate by around 20 centavos every month. "I believe that the peso is 20 to 30% overvalued. The peso should be around P50 to the dollar to make the country competitive as India, whose exchange rate is at 55 to a $1," Abola explained.

Local firms

A strong peso also encourages cheaper imports, which in turn would threaten local producers, according to Socioeconomic Planning Secretary Arsenio Balisacan.

"We have to be worried by the appreciation of the peso because it affects the lives of ordinary people. It affects employment," Balisacan said, stressing that a strong peso will threaten to erode the country's overall competitiveness.

On the other hand, Balisacan noted that a strong peso also encourages the flow of hot money or investments in stocks and bonds, which help develop the local capital markets. (Read more on Rappler http://is.gd/F07hb8)

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Philippine Peso Set for Best Year Since 2007 on Upgrade Prospect

₱ 100.00 Bill (One hundred Peso Bill)

In the Bloomberg report 27th December 2012,  the Philippine peso is set for its best annual advance since 2007, spurred by the fastest economic growth in Southeast Asia and speculation that the nation is on track to win its first investment-grade rating.

Standard & Poor's raised its outlook on the country's BB+ debt rating to positive from stable last week and said an upgrade is possible in 2013 as public finances improve. The peso reached its strongest level since March 2008 last month after official data showed the $225 billion economy grew 7.1 percent last quarter, the fastest pace in two years. Its rally in 2012, Asia's best exchange-rate performance after South Korea's won, prompted the central bank to impose limits this week on banks' non-deliverable currency forwards positions.

"The Philippines turned into the darling of investors in 2012 as growth exceeded expectations and further upgrades look imminent," said Dalmacio Martin, senior vice president at BDO Unibank Inc. (BDO), the nation's largest lender. "Benign inflation allowed the central bank to cut policy rates four times this year, while a narrowing budget deficit enhanced our allure."

The peso strengthened 6.7 percent this year to ₱41.075 per dollar at 10:37 a.m. in Manila, data from Tullett Prebon Plc show. That's the biggest gain since a 19 percent appreciation in 2007. The currency climbed 0.1 percent today and was little changed from a week ago. Philippine financial markets will be closed Dec. 31 and Jan. 1.

One-month implied volatility in the peso, a gauge of expected exchange-rate swings used to price options, fell to 4.4 percent from 7.75 percent a year ago.

Tobacco Tax

S&P's decision to bolster the nation's credit outlook on Dec. 20 came a few hours after President Benigno Aquino signed into law higher tobacco and liquor taxes, which are estimated to boost revenue by ₱184.3 billion pesos ($4.5 billion) in the first four years of implementation. The credit assessor last raised the rating by a notch in July to the highest sub-investment grade, followed by a similar move by Moody's Investors Service in October.

The country's inflation rate fell to a five-month low of 2.8 percent in November, according to the most recent data. The central bank reduced its benchmark overnight borrowing rate by a total one percentage point in 2012 to an all-time low of 3.5 percent. The government's 11-month budget deficit of  ₱127.3 billion pesos was less than half the 2012 ceiling, according to a report yesterday.

The Philippines will likely reach investment grade in 2013 and managing the currency would become "more challenging" by then, central bank Deputy Governor Diwa Guinigundo said Dec. 21, 2012.

Curbing Forwards

Bangko Sentral ng Pilipinas imposed a ceiling for non- deliverable forwards for local lenders at 20 percent of capital, and 100 percent for foreign entities, Governor Amando Tetangco said in a Dec. 26 briefing. Banks have two months to comply with the regulation, which will be reviewed after six months, Tetangco said.

Earlier this year, Bangko Sentral ordered lenders to provide more funds to cover risks on forward transactions and banned overseas investors from its special-deposit accounts. Capital controls won't be necessary at this stage, Tetangco said this month.

"Excess liquidity and lingering positive sentiment will remain as drivers, but it is difficult to replicate the same results next year as we have become relatively expensive," Martin said. "Regulatory prudential measures will also limit returns." read more in Bloomberg. 

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Leading American Health Insurers to transfer jobs to the Philippines KPO & BPO

Philippines seen to get jobs from US health insurers

UNDER pressure to slash costs, a greater number of American health insurers will likely transfer thousands of clinical support service and other back office jobs to the Philippines in the months ahead, House Deputy Majority Leader Roman Romulo said yesterday.

American health insurers such as Bloomfield, Connecticut-based Cigna Corp.; Louisville, Kentucky-based Humana Inc.; and Woodland Hills, California-based Health Net Inc. are bound to follow their rivals who have invested aggressively to build new back offices in Manila, according to Romulo, a congressional backer of Manila's business process outsourcing (BPO) industry.

Minnetonka, Minnesota-based UnitedHealth Group Inc., Indianapolis, Indiana-based WellPoint Inc. and Hartford, Connecticut-based Aetna Inc. have already put up back offices in the Philippines either on their own or via independent BPO providers.

"These top six American health insurers cover more than 130 million Americans. One could just imagine the claims they process every day as well as the clinical support services they require," Romulo said.

"Substantially lower cost is the biggest factor driving US health insurers to transfer jobs to Manila. Studies suggest they stand to generate around 30 percent in potential cost-savings once they convey the jobs here," he said.

"The huge cost-savings are impossible to ignore, especially since we are talking here of New York Stock Exchange-listed American health insurers under constant pressure to report ever-increasing profits to their public shareholders," he said.

That the Philippines has tens of thousands of college-educated, fluent English-speaking professionals, including nurses and other health practitioners, ready to staff the back offices is another advantage, according to Romulo.

He also said the Philippines' new Data Privacy Protection Law is helping to encourage outsourcing to Manila.

"The back offices of American health insurers handle and process a great deal of highly sensitive personal information of patients. Our new law assures them of adequate safeguards," he said.

Authored by Romulo, Republic Act 10173 compels all entities, including BPO firms, to protect the confidentiality of personal information collected from clients and stored in information technology (IT) systems, in compliance with strict international

privacy standards.

The back offices of US health insurers perform multifaceted support functions such as clinical quality analysis and management, medical billing coordination, medical data coding, claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business processing, and policy servicing, among others.

Romulo said another factor driving US insurers to relegate jobs to Manila is Obamacare, or the US Patient Protection and Affordable Care Act, which mandates reforms to simplify and cut down the cost of health care in America (http://is.gd/kHEWa9)

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Philippines to acquire helicopters, trucks in bid to modernize military

The Philippine's defense chief says the government has signed separate contracts worth 163 billion pesos (about $39 million) with Italian and South Korean companies to supply helicopters and trucks as part of efforts to modernize its poorly equipped military.

Defense Secretary Voltaire Gazmin said Thursday the Philippines will purchase three multi-purpose AW 109 helicopters for its navy from AugustaWestland SPA of Italy amounting to 1.33 billion pesos ($32 million).

He says Kia Motors Corp. will supply 60 field ambulances and 12 trucks all worth 300.78 million ($7.33 million) pesos.

Gazmin says the purchases show the country's "louder and clearer" intent to modernize its military.

The Philippine military is fighting a decades-long communist insurgency and battling Islamic militants while facing increasing tension over territorial disputes with China in the West Philippines Sea (South China Sea).

Posted in Washington Post, Copyright 2012 The Associated Press (http://is.gd/fY9RJY)

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CPP-NPA Rebels Call for Peace & Unity with Philippine Government - for a Cabinet post

Philippine rebels call for Aquino 'alliance'

Communist rebels said Thursday they have called for an "alliance" with Philippine President Benigno Aquino to undertake programmes aimed at ending a long insurgency that has killed tens of thousands.

There was no immediate official reaction to the reported offer, which chief rebel negotiator Luis Jalandoni said was made during "special track" talks in the Dutch city of The Hague on Monday and Tuesday.

"The 'special track' means the offer of alliance and truce offered by the National Democratic Front of the Philippines to the government of the Philippines," the exiled rebel told reporters in a statement.

Both sides would form a "Committee of National Unity, Peace and Development" to implement agrarian reform, rural development and national industrialization, he added.

"On the basis of the above-mentioned points, a truce would be declared and implemented," Jalandoni said.

The National Democratic Front is a communist-led rebel coalition.

Teresita Deles, who advises Aquino on peace talks, told AFP she could not immediately comment on the supposed offer. Chief government negotiator Alexander Padilla was unavailable for comment.

Padilla had told AFP last year that the Philippine government had rejected the rebels' offer in 2005 of a "coalition" government.

Last year Manila also denied local press reports it was considering offering cabinet posts to rebel leaders including their exiled founder, Jose Maria Sison.

Jalandoni and Sison met Padilla in The Hague this week and agreed to a 26-day nationwide truce from December 21 and another meeting early next year, said a statement by Norway, which mediated the meeting.

Both the military and the communist party's guerrilla arm, the New People's Army, have declared a separate shorter ceasefire over Christmas.

The communists have been waging a rebellion since 1969 and more than 30,000 people have died in the conflict, according to the government. (http://is.gd/jqz6rD)

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Philippine Bonds Gain after S&P Revises BB+ Outlook; Peso Declines

Philippine government bonds maturing in 2037 rose for a second day on speculation the nation will win an investment-grade rating next year after Standard & Poor's raised the credit outlook to positive. The peso dropped.

S&P, which ranks the Philippines BB+, the highest junk level, cited improved governance and public finances for the revision as official data showed Dec. 19 that tax revenue climbed to a record. President Benigno Aquino signed a law yesterday that will raise excise duty on cigarettes and alcohol, which Finance Secretary Cesar Purisima said will generate an additional 34 billion pesos ($826 million) in 2013.

"We had pretty good news yesterday with S&P's upgrade from neutral to positive," said Jill Singian, a bond portfolio manager at Bank of the Philippine Islands (BPI) in Manila. "It's giving a lot of support to buying interest but players will not make a bold move today. We are going into a long weekend."

The yield on the 6.125 percent notes due October 2037 declined two basis points, or 0.02 percentage point, to 5.64 percent as of 10:09 a.m. in Manila, according to prices from Tradition Financial Services. The rate advanced two basis points this week and has dropped 28 basis points since the securities were issued in October.

Local financial markets will be closed on Monday and Tuesday for the Christmas holidays.

The peso weakened 0.2 percent to 41.145 per dollar in Manila and declined 0.1 percent for the week, according to Tullett Prebon Plc. It appreciated 6.6 percent this year, the second-best performance among Asian currencies after the South Korean won.

Bangko Sentral ng Pilipinas will announce measures next week to manage capital inflows, Deputy Governor Nestor Espenilla told reporters in Manila late yesterday.

One-month implied volatility, a measure of expected moves in the exchange rate used to price options, was unchanged at 4.4 percent today and this week. It fell 335 basis points this year. (http://is.gd/Ue9eZd)

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Agency abused OFW Filipino teachers in USA win $4.5 Million Dollars lawsuit

Filipino teachers win $4.5 M in US suit

A US federal jury awarded $4.5 million USD or (₱185,085,004.00) to Filipino teachers who paid large fees to obtain United States jobs through a placement agency.

Jurors on Monday found that Los Angeles-based Universal Placement International Inc. and its owner, Lourdes Navarro, failed to properly disclose the fees for the 350 teachers who were recruited for $40,000-a-year jobs in Louisiana, mostly in East Baton Rouge Parish.

The teachers arrived in the US between 2007 and 2009 under a federal program that grants worker permits to foreigners with special skills. Most went to East Baton Rouge Parish but others went to Caddo, Jefferson and other parishes and to state-run schools in New Orleans.

In 2010, the American Federation of Teachers and the Southern Poverty Law Center sued on behalf of some teachers who complained that before ever leaving the Philippines, they had to borrow money to pay thousands of dollars charged by the company, as much as $16,000 in some cases—five times the average annual household income in the country.

The class-action suit claimed that more unexpected fees and expensive legal entanglements followed once the teachers arrived in the United States. For example, contracts were required in which the teachers agreed to pay a percentage of their monthly income to Universal, along with fees for arranging housing.

Passports and visas were confiscated to ensure the fees would be paid, the lawsuit said.

The suit claimed the threat of huge debt and loss of their visas amounted to forced labor under a federal law against human trafficking passed by Congress in 2000.

After a two-week trial, jurors rejected the human trafficking arguments but found the recruiting agency had negligently misrepresented the fees and violated California laws governing employment agencies and unfair business acts, attorneys for both sides said.

"The jury sent a clear message that exploitative and abusive business practices involving federal guest workers will not be tolerated," Mary Bauer, legal director for the Southern Poverty Law Center, said in a statement.

Don A. Hernandez, a lawyer who represented the company, said there was no intentional wrongdoing by his client regarding disclosure of fees. He called the lawsuit a "witch hunt."

"These teachers voluntarily took on whatever debt they did to pay the fees to come to the United States. They were not forced, the jury found," he said.

Hernandez said he would seek to have the award figure reduced because the Louisiana Workforce Commission earlier awarded return of the same fees. (http://is.gd/Ud5XNI)

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Miss Philippines first runner up, USA crowned Miss Universe

Miss USA Olivia Culpo (C) is congratulated by Miss Teen USA 2012 Logan West (L) and Miss Universe 2011 Leila Lopes from Angola after being crowned during the Miss Universe pageant at Planet Hollywood Resort and Casino in Las Vegas, Nevada December 19, 2012. Credit: Reuters/Steve Marcus

Miss USA crowned Miss Universe in eighth American win

A 20-year-old beauty queen who plays the cello and is a breast cancer advocate was crowned Miss Universe on Wednesday, the eighth time an American has won the pageant where the world's most beautiful women parade in bikinis and ball gowns.

Olivia Culpo, 20, a brunette from Rhode Island, was chosen by a 10-judge panel from 89 contestants representing countries ranging from India to Kosovo and Britain.

Culpo, wearing a red, long-sleeved dress for her final look, was the eighth winner from the United States in the contest's 60-year history, and the first Miss USA to take the title since 1997.

Miss Philippines, 23-year-old Janine Tugonon, was the runner-up and Miss Venezuela, Irene Sofia Esser Quintero, came third after the top five answered brief questions posed by the judges.

Miss Philippines, Janine Tugonon

Culpo takes the place of last year's winner Leila Lopes, who was the first ever Miss Universe from Angola.

Miss Guatemala, Laura Godoy, was chosen Miss Congeniality after the two-hour pageant that featured live performances by U.S. pop group Train and Nigerian-born Australian singer and dancer Timomatic.

Contestants must be aged between 18 and 27, unmarried and with no children.

The contest was broadcast live on U.S. television from the Planet Hollywood hotel and casino in Las Vegas and seen by an estimated 1 billion viewers on TV and online in 190 countries, organizers said.

Culpo will travel the world for the next year representing the Miss Universe Organization and a charity of her choice.

After reaching the top five, Culpo was asked to name one thing she would never do again. "Picking on my siblings growing up," she replied.

The contest, owned jointly by businessman Donald Trump and the NBC network, held a moment of silence for the 20 children and six staff gunned down at an elementary school in Newtown, Connecticut, on December 14, 2012. (http://is.gd/iXp9C2)

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Philippine New Navy chief vows safer Philippine waters

Newly installed for Philippine navy Vice Admiral Jose Luis Alano.

Philippines - Newly-installed Flag-Officer-in-Command (FOIC) Vice Admiral Jose Luis Alano on Wednesday vowed that he will do what is necessary, including employing methods never attempted before, to make sure that the country's territorial waters will remain safe.

"If we are achieve results never before accomplished, we must expect to employ methods never attempted before," Alano said in a speech after assuming command of the 23,000-strong navy from outgoing navy chief, Vice Admiral Alexander Pama.

President Aquino, as commander-in-chief, presided over the hand-over of navy's command from Pama to Alano held at the Philippine Navy (PN) headquarters along Roxas Boulevard in Manila on Wednesday afternoon.

Pama and Alano, as well as Armed Forces of the Philippines (AFP) chief Gen. Jessie Dellosa, belong to Philippine Military Academy (PMA) Class of 1979. Alano is retiring in May 2014. Pama on the other hand, is expected to join the civilian government as announced by the President.

Under "exciting times" without mentioning any, Alano said the Navy can make a major contribution to the AFP's missions and objectives.

"We should be a responsible partner in keeping our waters safe and secured by maintaining security stability in the (West Philippine Sea) so that freedom of navigation and international trade may continue to flourish," he said.

To do this, he said the Navy will continue to review its maritime security strategy of active archipelagic defense in such a way that true and accepted scientific and quantitative and qualitative processes are prioritized.

"The course has been plotted, sea details have been set and the command to cast off all lines has been given. Our personnel are our most major concern. What we need are not warm bodies but able-bodied sailors and marines who are motivated, disciplined and professionals," Alano declared.

He added: "It is but up for us (the Navy) to seize this golden opportunity since the presiding officer has taken helm as the President and our Commander in Chief," Alano said.

With the country's problem on insurgency on the downturn, Alano said strategic situation and the security environment now requires the defense department to be more active in the region in ensuring maritime security in Southeast Asia by being a responsible partner of keeping the country's territorial waters safe.

As a maritime nation, the Navy, amid its aging fleet of warships, has an enormous task of guarding the country's waters, including those in hotly-contested West Philippine Sea.

At present, the Navy has only four warships considered as real sea combat capable, to include the decommissioned Hamilton Class United States Coast Guard cutter, the BRP Gregorio del Pilar,the country has acquired from the US and commissioned as a frigate.

Del Pilar now serves as the Navy flagship. Another US Coast Guard cutter, the BRP Ramon Alcaraz, is due to arrive in April next year as it is still undergoing major repairs and refurbishment back in the US. (http://is.gd/uANtQC)

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Philippines' biggest ever government budget 2013 of ₱2 Trillion has been approved

Philippines' Department of Education has the biggest share in the 2013 Government Budget. ₱293.32 Billion has been allocated for DepED alone.

Aquino signs ₱2T budget for 2013

Philippines' President Benigno Aquino III signed on Wednesday the ₱2.006-trillion budget for 2013, the biggest budget ever approved in the country.

Calling it the 'empowerment budget,' the president said Republic Act 10352 is designed to give citizens the power to demand services from government agencies.

"The annual budget is an instrument to institutionalize accountability," Aquino said after signing the budget into law in Malacañang.

Out of the ₱2.006 trillion allotted for 2013, the Department of Education will get the biggest chunk at ₱293.32 billion.

Aquino said the budget aims to boost sectors that include agriculture, tourism, education, health and social services through the conditional cash transfer program.

"There is nothing impossible when you have the public's interest at heart," the president said, adding that it is the first time in seven years that not a single provision of the bill was vetoed.

He added that various sectors were consulted during the crafting of the national budget, in an effort to make the process more participatory.

"The result is a national budget that reflects the need of sectors and citizens," Aquino said. (http://is.gd/dvT9C9)

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Philippines lauds Indian navy Chief's Support for the West Philippine Sea

Philippines has welcomed Navy chief DK Joshi's recent comments on the South China Sea.

Manila hails Navy chief's stand on South China Sea

NEW DELHI: Navy chief, Admiral D K Joshi's recent comment on the South China Sea may not have warmed hearts in China, or in the South Block, but they have bolstered India's standing among Asean countries.

Welcoming the underlying sentiment as part of India's Look East policy, vice-president of the Philippines, Jejomar Cabauatan Binay, told TOI in an exclusive conversation, "In the present day, these issues are no longer of parochial interest. Freedom of navigation and lawful commerce are universal interests. The statement of the Admiral is a confirmation that it is a problem that India cannot turn its back to."

Last week, Admiral Joshi had responded to journalists' questions on the Navy's preparedness, saying, "Are we preparing for it? Are we having exercises of that nature? The short answer is "Yes. We, of course, will need government clearance. Should a requirement come, I am sure we will have that clearance,'' he said. The comment came even as National Security Advisor (NSA) Shivshankar Menon was in Beijing working on a border agreement with his counterpart Dai Bingguo. The ministry of external affairs (MEA) was livid and the blame was swiftly passed on to an "irresponsible" media after the comment reverberated in various parts of the world.

The Philippines, of course, is in a unique position and in direct line of fire. The sea that China describes as South China Sea is known locally as West Philippines Sea — China and the Philippines have faced off over the Scarborough Shoal earlier this year, sparking fears of a larger regional conflict. Although the Philippines has activated a mutual defence pact with the US, Manila's response to India, said analysts, could be a sign that the region was looking for a credible balancing power.

Recently, the Philippines "sought clarification from Beijing" after a news report suggested that from January, 2013, local police would engage in "search and seizure" of ships within China's claim line.

"But we haven't received any confirmation. Other countries too have sought a clarification," Binay said.

Making a big pitch for increased Indian investment in the Philippines, the vice-president said, "We look forward to Indian investment, tourism and culture. We also welcome Indian pharmaceuticals into Philippines, because India is very advanced in this sector. But more than that, we want to have a deeper political and security relationship with India."

However, the Philippines is also clear that the recent troubles are not the defining point of their bilateral relationship with China. Like India, the Philippines has a very deep and intricate relationship with China. Binay said, "The relationship is multifaceted. After all they are our neighbours. There has been continuous dialogue at the foreign ministry level. President Aquino met President Hu Jintao and they agreed this cannot be the sum total of relations between China and the Philippines." (http://is.gd/LbTArT)

The Times of India

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Philippines break records of 43,000 hectares demands in lease spaces for offices in 2012

Philippines office space demand bullish, up 18% in 2012 of 43,000 hectares and still rising till year end of 2012

43K hectares in lease spaces

The property market will continue to grow this year with record leased space of 430,000 square meters equivalent to 43 hectares.

Consultancy firm  Lang Jones Lang LaSalle Leechiu (JLLL) said that office space demand continue to grow.

Sheila Lobien, JLLL director for project leasing,  noted that between January and November, office space demand hit 425,000 sqm., 18 per cent more than the annual average demand of 360,000 sqm. recorded in 2011.

The demand continues to be driven by players in the business process outsourcing business,al though non-BPO multinational and local companies are increasingly taking up other demands, comprising nearly 25 percent of current demand in Metro Manila at 100,000 sqm.

"Even before preferred office buildings are completed, companies are committing to take up space, indicating strong optimism and heightened business activity projected by the leading real estate consultancy for 2013.  Pre-commitments are backed up by signed lease agreements between parties, and advanced rent and security deposits are paid," said JLLI.

Lobien said the office space market continue to be a sellers' market with pre-commitments more than doubled in January to November 2012 as compared to the same period in the year before.

The average base rent in Grade A office spaces in Bonifacio Global City and the Makati Central Business District for one went up 15-20 percent since 2011.

"In 11 months of 2011, we recorded pre-commitments of 68,358 sqm. In 2012, the figure over the same period shot up to 175,922 sqm.," said Lobien.

JLLL studies also noted that a number of companies pre-committed to office space that would be completed as far forward as 2014.

Up until 2015, office supply set to come online is estimated to hit 7.9 million with the current supply already at 6.2 million sq.m. Vacancy rate across Metro Manila business districts meanwhile stands at 5 percent, JLLL said.

The consultancy firm also said that should the Philippines post a "stable fiscal position and good credit standing by 2013/2014," it expects "other demand drives to create an additional demand of roughly 100,000-200,--- sq.m. of office space.

Phillip Anonuevo, associate director for Markets, said companies like Coca Cola and Aboitiz Group are bracing for expansion and moving to new corporate space in Bonifacio Global City.

Anonuevo noted that buildings in this highly preferred business district like Net Lima and NAC were fully leased out even before building completion.

Anonuevo meanwhile said the massive entertainment district development in the Bay Area has provided impetus for tourism development.

He noted that in May, JLLL tracked 10,536 hotel rooms in the pipeline from 2011 to 2016. An additional 5,000 hotel rooms has since been added to the figure in just six months.

"Investment in the hotels and hospitality real estate asset class is experiencing record growth. In addition, commercial properties such as Aseana One in the same district have become an attractive destination for firms seeking to do business in the proximity of the entertainment district," he said. Anonuevo said prospects for the office space and retail space remains good "at least going to be for the next three years." (http://is.gd/oHnL5F)

Malaya Business Insight

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Philippines House passes the Controversial RH Bill

Members of the Philippines House of Representatives are shown in Quezon City, in suburban Manila, earlier this year.

Lawmakers yesterday approved legislation calling for government-funded contraception and sex education classes in the Philippines, a first in the heavily Catholic nation.

"Our legislature took an historic vote today for women and families as it successfully passed the Reproductive Health Bill. We thank our senators and congressmen who voted for access to information and care," said presidential spokesman Edwin Lacierda.

A reconciliation committee must now work out differences in the versions of the legislation passed by each house before it is sent to President Benigno Aquino, who is expected to sign it.

Legislative leaders hope to finish their work and send the bill to Aquino by Wednesday before going on Christmas break, the official Philippines News Agency reported.

Despite widespread popular support, the Catholic Church has opposed the measure, saying it will destroy marriage and morality in the Philippines.

More than 80% of the Philippines' 96 million residents are Catholic.

Gabriel Reyes, bishop of the diocese of Antiopolo and chairman of the Episcopal Commission on Family and Life, said the passage of the bill marked "a sad day for the country."

But Lacierda said the legislation will help the country's citizens to raise families in a "just and empowered" way.

"The passage of the Responsible Parenthood Bill signals not only a new chapter in our agenda of inclusive growth; it also begins a process of healing for the wounds that may have been opened by an often feisty democracy," he noted.

Sen. Edgardo Angara, who voted for the measure, called the bill "an affirmation of human rights," according to CNN affiliate ABS-CBN.

"We have to consider that not all Filipinos are Catholics. We have Muslims, Protestants, Buddhists, nonbelievers," he said, according to ABS-CBN.

CNN

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