Boracay ₱126 Million submarine water pipelines commissioned

Boracay, Philippines - With thousands of holiday revelers expected to converge on the world's famous resort island of Boracay this Holy Weekend, they can be assured of better access to clean, fresh water with the recent inauguration of a ₱126 Million submarine water pipeline.

The 1-kilometer pipeline constructed by the Boracay Island Water Co., (BIWC) a subsidiary of the Manila Water Co. Inc., runs from Caticlan to Boracay, and will augment the current 13-year-old pipeline which supplies water to the island from the mainland Malay town in Aklan.

Manila Water is a unit of the publicly-listed conglomerate Ayala Corp., and commonly known as the East Zone water concessionaire of Metro Manila.

During the inauguration ceremony for the pipeline on Friday, March 30 2012, Tourism Secretary Ramon Jimenez Jr. lauded BIWC for the improved water services and wastewater management in Boracay since the company began operating there in 2009.

Boracay as the world's famous beach resort must always offer the world class standard services and facilities to accommodate the Million visitors from the Philippines and International visitors to prove that It is more fun in the Philippines.

He said 96 percent of the island population on the island now enjoys 24/7 round-the-clock water supply, with the quality of its tap water 100-percent compliant with the strict criteria set out by the Philippine National Standards for Drinking Water.

"I salute the partnership between Boracay Water, the local government and the [Tourism Infrastructure and Enterprise Zone Authority] for turning things around and making things happen here in Boracay. As the premier tourist destination in the country, we need to ensure that the basic services such as water and wastewater services for the locals as well as tourists are well-provided.   This is also ensuring the sustainability of the island paradise for the years to come," he said.

The BIWC has been upgrading the wastewater management system of the island and hopes to reach its 52-percent target coverage by the end of the year from the current 31-percent coverage. The company's ₱ 78 Million project, inaugurated in April 2011, aims to improve the island's treatment plant located in Barangay Balabag to a world-class facility, and ensure the treated wastewater being flushed back into natural waters is within the strictest environmental standards that will keep its beach pristine.

Last August 2011, BIWC received a ₱ 500 Million loan from the Development Bank of the Philippines and Security Bank and Trust Corp. to finance its capital expenditures for its projects in Boracay Island.

The loan, obtained through the Philippine Water Revolving Fund, has the option to be increased to ₱1 Billion. The PWRF is a joint project between the national government, the United States Agency for International Development, and the Japan International Cooperation Agency. The fund was set up to help the country meet its own economic and human development targets under the Millennium Development Goals, a United Nations initiative, by 2015.

Boracay Island is the most popular tourist destination not just in the Philippines but already claimed its fame all over the world with 908,875 visiting in 2011, up 16.6 percent from 2010. In December 2011 alone, arrivals shot up by 34 percent from 2010 figures, generating P1.43 billion in tourism receipts for the government.

From only one airline serving the destination in 2006, now all major Philippine carriers as well as chartered international flights are bringing in local and foreign tourists direct to Kalibo, the capital of Aklan, or Caticlan, the jump-off point to Boracay Island Paradise.

Last year business tycoon Ramon Ang of San Miguel Corp. also funded the renovation of the Caticlan airport terminal, while its main runway is now being lengthened to accommodate jets.

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Taxation - Mining Laws in the Philippines, Copper, Gold, Zinc

With an estimated population of about 94 million people, the Philippines is the world's 12th most populous country. An additional 11 million Filipinos live overseas.

The national economy of the Philippines is the 45th largest in the world, with an estimated 2011 gross domestic product (nominal) of $216 billion. Primary exports include semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits. Major trading partners include the United States, Japan, China, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand. Its unit of currency is the Philippine peso (₱ or PHP).

Philippine Finance Minister Cesar Purisima said new rules governing mining in the Country, home to some of World's richest deposits of Copper, Gold, Zinc and Nickel, are likely this summer (March – May 2012), but that the government does not intend to block contracts from going forward in the interim.

The new rules are aimed at eliminating corruption and improving environmental protection. They will require mining operators to turn over around 50% of net profits to the government, Mr. Purisima said.

He added that existing contracts will not be reopened, but will be subject to the stricter environmental rules.

Philippine President Aquino during an interview said the mining in the Philippines is just about exploiting the resources and after that it's no more, in fact mining is only 2% of Economic contribution to the Philippines so it is better to prioritize the tourism and ban the mining in all tourism areas.

Mr. Purisima, speaking on the sidelines of a meeting of finance ministers of the Association of Southeast Asian Nations in Cambodia, said the International Monetary Fund's charter should be expanded to give it more oversight over Global financial risks such as the derivatives market.

"Given the huge amounts, the uneven regulation, an institution such as the IMF can take the lead in helping harmonize things," Mr. Purisima said.

He said the Philippines pays investment grade returns on its debt and he expects it will get an upgrade from the 3 major ratings firms.

"Here we are focusing on things we can control: strengthening revenues, continuing to improve our budget, and setting the proper environment for a faster growth rate," he said.

Mr. Purisima noted the Philippine's reserves are at historic highs, its current account surplus remains strong, due largely to remittances from overseas workers, and its banking sector is well capitalized.

The new laws eliminate some tax incentives and raise taxes on tobacco and alcohol, and are expected to strengthen the Philippines' fiscal situation boosting the case for a ratings upgrade, he said.

A newly industrialized country, the Philippine economy has been transitioning from one based on agriculture to one based more on services and manufacturing. Of the country's total labor force of around 38.1 million, the agricultural sector employs close to 32% but contributes to only about 13.8% of GDP. The industrial sector employs around 13.7% of the workforce and accounts for 30% of GDP. Meanwhile the 46.5% of workers involved in the services sector are responsible for 56.2% of GDP.

The economy is heavily reliant on OFW remittances which surpass foreign direct investment as a source of foreign currency. Regional development is uneven with Luzon—Metro Manila in particular—gaining most of the new economic growth at the expense of the other regions, although the government has taken steps to distribute economic growth by promoting investment in other areas of the country. Despite constraints, service industries such as tourism and business process outsourcing have been identified as areas with some of the best opportunities for growth for the country. Goldman Sachs includes the country in its list of the "Next Eleven" economies.

Bank lending expanded by 19.3 percent by the end of 2011, a pace of growth that the central bank said should help speed up growth of the Philippine economy in 2012.

The Bangko Sentral ng Pilipinas reported that outstanding loans of universal and commercial banks in the country amounted to P2.79 trillion by the end of 2011, up by 19.3 percent from that registered the year before.

The rise in bank lending aided the 6.3-percent growth of overall liquidity within the domestic economy, the BSP also said. It reported that "M3? – a broad measure of liquidity that includes currencies in circulation, savings and other types of deposits, money-market funds, etc. – amounted to P4.7 trillion by the end of 2011, up 6.3 percent year on year.

The credit growth of 19.3 percent is considered robust by central bank officials, as bank lending was growing by only around 10 percent in the previous two years.

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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North Korean Rocket debris will land off the Philippines Archipelago – Protests!

The Philippines said Sunday it had filed diplomatic protests over North Korea's planned rocket launch with the UN, China, and Southeast Asian nations which hold a summit this week.

A top US diplomat has previously said that debris from the launch are expected to land off the Philippines, an archipelago made up of thousands of islands.

Foreign Secretary Albert del Rosario said that Manila's diplomatic missions at the United Nations and in China, Pyongyang's closest ally, were asked to lodge the protest with their North Korean counterparts.

Del Rosario said protest letters were also sent to North Korea's diplomatic posts in members of the Association of Southeast Asian Nations (ASEAN), of which the Philippines is a member, before a meeting of the bloc this week.

The Philippines established diplomatic ties with North Korea in 2000, but Pyongyang has no embassy in Manila and is represented by a non-resident envoy based in Thailand.

"I will look for an opportunity to raise our position in Cambodia at ASEAN," said del Rosario, referring to the group's annual summit, a two-day meeting which starts in Cambodia on Tuesday.

He added that the rocket launch was in clear violation of UN resolutions.

Kurt Campbell, the US assistant secretary of state for East Asian and Pacific Affairs, said last month the rocket launch would impact "in an area roughly between Australia, Indonesia and the Philippines."

He made the comments in a message to Australia's Foreign Minister Bob Carr, according to a report by the Sydney Morning Herald.

Pyongyang announced last month it would launch a rocket between April 12-16 to place a satellite in orbit, sparking alarm in the region.

The United States and other nations say the launch is a disguised ballistic missile test, and would breach a UN ban on North Korean missile launches.

Washington has also said that a launch would breach a February deal, under which Pyongyang had agreed to a partial halt to nuclear activities and an end to missile tests in return for food aid.

The US has since suspended plans to provide food aid.

Del Rosario said the Philippines had already asked the United States to help share intelligence information on the rocket launch, while the militaries of both sides were coordinating to track its path.

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