Category: Business Mirror

The Bureau of Customs (BOC) bucked weaker import volumes in August as it collected more revenue than a year earlier on higher-valued non-oil shipments and stronger petroleum trade. However, revenues still fell short of the agency’s target for the month.

Preliminary data from the second-largest revenue-generating agency showed that it collected P81.350 billion in August, up by 5.1 percent from the P77.436 billion it raked in during the same month a year ago.

These collections came from import duties and taxes, value-added tax on imports and excise taxes on petroleum products.

‘Revenue growth stemmed from higher valuations of non-oil imports despite lower volumes, while increased oil shipments and favorable global prices further lifted petroleum trade values,’ the BOC said.

‘Combined, these factors reinforced the revenue base and emphasized the Bureau of Customs’ vital role in sustaining fiscal stability,’ it added.

However, the August collection was 1.97 percent below the bureau’s P82.943-billion target for the month, resulting in a shortfall of P1.593 billion.

Of the 17 collection districts under the BOC’s watch, 12 surpassed their respective collection targets.

These included the ports of Aparri, Legazpi, San Fernando, Iloilo, Tacloban, Clark, Subic, Davao, Cagayan de Oro, Limay, Cebu and Zamboanga. The remaining five-Batangas, Manila and Surigao, as well as the Manila International Container Port and Ninoy Aquino International Airport-missed their targets.

Still, the border control agency amassed a total of P664.764 billion in revenues from January to August this year.

This was 6.98 percent higher than the P621.387 billion it collected during the same eight-month period a year earlier.

The BOC has been benefiting from higher duties and VAT collections on imports due to the stronger US dollar and higher crude oil prices as the conflict between the United States and Iran escalated in February.

The Philippine peso fell to a new record low of P62.59 against the dollar last Friday, September 4, weaker by 7 centavos from Thursday’s close of P62.52.

Renewed fighting in the Middle East has also sent global crude oil prices to near three-month highs, with Brent crude trading at $96 per barrel.

Nonetheless, the BOC is expected to hit its P1.011-trillion revenue target for this year, which was raised from its earlier goal of P1.003 trillion to take into account the stronger US dollar, higher oil prices and increased imports.

‘We’re confident we can still hit the additional adjusted revenue target,’ Customs Commissioner Ariel F. Nepomuceno said earlier, banking on improved revenue collection and tightened assessment processes.

Next year, the BOC’s revenue collection is projected to reach P1.074 trillion and hit P1.134 trillion in 2028.

JUST as the Philippines appears to be getting a break from soaring inflation, economists warned that rising global oil prices due to renewed tensions in the Middle East are threatening to spoil the reprieve.

Last week, the Philippine Statistics Authority (PSA) reported that inflation eased to 6.1 percent in August, marking its fourth straight month of slower price increases after inflation peaked at 7.2 percent in April.

But Ateneo de Manila University economist Luis F. Dumlao said inflation could climb as high as 7.6 percent in September as higher global oil prices push up domestic pump prices.

In the last two weeks of August, the Department of Energy (DOE) announced back-to-back fuel price increases. On August 18, gasoline prices rose by P2.49 per liter, diesel by P3.84, and kerosene by P5.01.

A week later, gasoline increased by another P1.08 per liter, diesel by P2.31, and kerosene by P0.95.

Industry estimates also point to further increases next week, with diesel potentially rising by P4.50 to P5 per liter and gasoline by P4 to P4.50 per liter, according to the Philippine News Agency.

‘It’s a matter of time. It’s going to be passed on, and it’s usually passed on first to passenger transport…that means usually people who drive, who pay their own gasoline,’ Dumlao said in a recent interview.

Dumlao said fuel price increases are felt more quickly by private motorists because, unlike regulated public transport, they have no fare mechanism that shields them from changes in pump prices.

As fuel costs rise, the impact can also spread to other parts of the economy through higher transport and delivery costs, as well as more expensive farm inputs, eventually putting further pressure on consumer prices.

University of Asia and the Pacific economist Marco C. Agonia likewise warned that peso volatility could add to inflationary pressures by raising the local cost of imported fuel.

‘Peso-dollar rate volatility may build inflation pressures through the fuel channel in the short term, especially with resurgent US-Iran tensions widening the uncertainty premium,’ Agonia told the BusinessMirror.

PSA data showed that transport was among the biggest contributors to August inflation, with inflation in the group accelerating to 13.5 percent from 11.9 percent in July.

Food and non-alcoholic beverages also contributed significantly to overall inflation at 4.6 percent, while housing, water, electricity, gas and other fuels registered 7.9 percent.

Long way to go

Agonia said inflation also faces a longer-term risk from El Niño, which could disrupt rice production and keep food prices elevated.

Rice inflation accelerated to 19.4 percent in August, its highest since July 2024.

‘That said, assuming oil risks wind down and agricultural disruptions remain within tolerable levels, inflation may settle down by late 2027 or into 2028,’ he added.

Meanwhile, Dumlao warned that persistently high inflation could make businesses more cautious about expanding their workforces.

‘They have to talk it out. Unfortunately, the government does not have much resources…but it has to be very structured. How do we lay off? Is it a lateralized layoff? But as much as possible, freeze hiring rather than layoff people,’ he said, when asked how the government and business sector can work together to mitigate the potential impact of elevated inflation on the labor market.

For households, Dumlao said there may be little choice but to ‘tighten our belts’ as higher prices continue to squeeze budgets.

‘Sometimes some people don’t have the luxury, but they have to either work more, double jobs, or for some people, they have to resort to borrowing,’ he also said.

THE House impeachment prosecution panel is considering the dropping of the bribery charge against Vice President Sara Z. Duterte as her impeachment trial before the Senate Impeachment Court continues, but prosecutors emphasized that a conviction on even one Article of Impeachment would already be sufficient to trigger the penalties imposed by the tribunal, including removal from office and perpetual disqualification from holding public office.

Prosecutors said the possible withdrawal of Article III, which involves allegations of bribery, is part of efforts to shorten the proceedings and focus on the remaining Articles of Impeachment.

However, they stressed that each of the four articles stands independently and that the remaining charges would continue even if one article were removed.

House prosecution counsel Benjamin Tolosa Jr. explained that the prosecution does not need to prove all allegations for a conviction to occur.

‘We have four Articles of impeachment, but it only takes a finding of guilt on one article for the penalty of removal from office and perpetual disqualification to take effect,’ Tolosa said.

He added that the prosecution does not need to secure a conviction on all articles for the Senate to impose the constitutional penalties.

The possible withdrawal involves Article III, which accuses Duterte of alleged bribery involving monetary gifts or payments to Department of Education officials during her tenure as Education secretary. Prosecutors said no final decision has been reached as they continue reviewing their evidence and trial strategy.

The impeachment complaint against Duterte contains four separate allegations. Article I involves the alleged misuse, misappropriation, and irregular liquidation of P612.5 million in confidential funds from the Office of the Vice President and the Department of Education. Article II concerns allegations of unexplained wealth and incomplete financial disclosures, while Article IV involves alleged grave threats against President Ferdinand Marcos Jr., First Lady Liza Araneta-Marcos, and former Speaker Ferdinand Martin Romualdez.

The prosecution is currently completing its presentation on Article I, which focuses on the confidential fund allegations. The House lead prosecutor, Batangas Rep. Gerville Luistro, said the panel was targeting September 9 to finish presenting evidence related to the alleged misuse of confidential funds.

The confidential fund allegations involve P500 million released to the Office of the Vice President and P112.5 million allocated to the Department of Education while Duterte served as Education secretary. Prosecutors are examining how the funds were released, handled, and liquidated.

Several witnesses have already appeared before the Senate Impeachment Court, including government officials, auditors, and military personnel. Former Office of the Vice President special disbursing officer Gina Acosta testified that she transferred four P125-million confidential fund tranches to then-security chief Col. Raymund Dante Lachica upon Duterte’s instruction.

The prosecution is also preparing to present evidence under Article II involving allegations of unexplained wealth.

The House prosecution spokesperson, Lanao del Sur Rep. Zia-ur Rahman Alonto Adiong said the panel has sufficient documents and materials to support its claims but declined to disclose details before they are formally presented in court.

Another issue being discussed in the trial is the Senate voting requirement for conviction. The Constitution requires the concurrence of two-thirds of all Senate members for an impeachment conviction, traditionally interpreted as 16 votes in a 24-member chamber.

THE Philippines will have to turn delayed infrastructure projects into actual construction if it wants to get economic growth back on track, the Asian Development Bank (ADB) said.

ADB President Masato Kanda said the Philippine economy could still grow by 3.8 percent this year, but only if public investment sees a ‘significant acceleration’ in the second half.

The forecast, while slower than the 4.4 percent growth recorded in 2025, remains within the government’s recalibrated 3.5- to 4.5-percent growth target for 2026.

‘The primary challenge facing infrastructure is increasingly related to execution rather than financing. Public construction fell in the second quarter, despite the budget being in place, largely due to the time abuse and oversight,’ Kanda said during a media briefing on Monday.

While stronger oversight of infrastructure projects is necessary, Kanda said this has also slowed project implementation, making faster and more efficient delivery critical to sustaining public investment.

‘Oversight is the right direction. We’ve got to do that,’ he added.

The slowdown in project implementation came as the broader economy weakened further in the second quarter, with growth easing to 2.3 percent from 2.8 percent in the first quarter and 5.4 percent a year earlier.

The weakness was reflected in both domestic demand and investment. Household consumption growth slowed to 2.8 percent, while investment contracted by 9.2 percent.

Construction, in particular, became a major drag on growth, contracting by 14.8 percent year-on-year in the second quarter, significantly steeper than the 4.3-percent decline in the previous quarter.

Kanda said the multilateral lender is now working with the Department of Public Works and Highways and the Department of Transportation to improve project delivery, including procurement and contract management.

The push to accelerate infrastructure spending, however, comes with external risks that could further weaken growth.

Kanda said a resurgence of the conflict in the Middle East could weigh on the Philippine economy through higher energy, food and fertilizer prices, as well as tighter financial conditions.

The conflict could also affect remittance flows and tourism, he said.

Addressing corruption

Kanda stressed that the push to accelerate project implementation must be matched by strong safeguards against corruption-a balance that ADB also applies to the projects it finances.

He noted that the ADB maintains a strict zero-tolerance policy toward corruption in projects it finances, with risks managed through strong procurement systems, independent oversight and clear accountability.

He said the bank investigates issues when they arise and takes corrective action to ensure those responsible are held accountable.

Beyond individual projects, Kanda said stronger public financial management is essential to preventing corruption by making government spending more transparent and easier to track.

‘A key component of this effort of the public financial management reform is strengthening transparency through the digitalization of the public sector management roadmap. By monitoring the system, we help ensure that public funds are budgeted, monitored, and spent transparently,’ he added.

Kanda said the ADB supports the Philippine government’s public financial management reforms as part of a longer-term effort to strengthen transparency and accountability in public spending.

If public spending normalizes and inflation eases, Kanda said growth could accelerate to 5.3 percent in 2027.

‘Over the medium term, the growth outlook remains somewhat positive, supported by reforms, including expanding opportunities for foreign investment, which ADB will strongly support,’ he said.

After roughly 30 years in the Philippine entertainment landscape, A-list celebrity Dingdong Dantes has truly mastered the art of balance in his many creative and business undertakings.

‘Many will reason that in this business, you have to strike while the iron is hot. I totally understand where that is coming from, because being in this industry gives you no real assurance that you will remain hot and sought-after for a long time. Lucky are the ones who survive and stay long. Luckier are they who have saved and invested, live to see these investments grow, and enjoy the benefits of their hard work,’ said Dantes.

He added, ‘But I always tell myself to take care of the basic needs first: proper rest, healthy eating, regular exercise, recreation, and quality time with family and those who matter most. These are your non-negotiable anchors because they keep you centered when life becomes demanding and overwhelming.’

Dantes continues to discover and learn how to work with his ‘personal strengths.’ His hosting skills on the GMA game show Family Feud are so polished now and he has successfully elevated communicating with his guests, plus both live and TV audiences, to a level that has become so natural, comfortable and effortless.

‘I am enjoying Family Feud so much, and I never feel drained even if we tape two to three episodes in a single day. I guess it’s because everything is spontaneous, and the answers of the guests add spice, depth and humor. That’s why the flow is so natural and so engaging,’ Dantes revealed.

Then there’s the core of his being in this business: acting. Dantes plays the titular character in the top-rating TV action drama series The Master Cutter, also on GMA, which has been extended to another season because of its wonderful ratings. Then there is the new movie with his wife Marian Rivera, titled Remember, shot partly on location in Canada. ‘Acting is in my core because I am one person who loves to create, and getting into a character allows me to be part of the creation process, of giving life to a fictional individual, giving him a wide range of emotions in the process, where real life is being imitated,’ he explained.

Dantes added, ‘You know what keeps me going? It’s the hunger to create. It’s thae same hunger to tell stories on different platforms, to different people; that kind of indescribable passion to create something meaningful, something relevant, something real. I feel that as long as I continue to search for meaning in everything I do, then only can I find true fulfilment and the drive to keep going.’

Now comes the new season of The Voice Kids on GMA where Dantes is back as the show’s central host. ‘I get excited every time I work with kids. I am amazed by the amount of talent our country has when it comes to these children. I actually learn a lot from them-their sincerity, their rawness, their ability to adjust, their courage. That’s why I am back as host because I cannot let this opportunity pass, even if my work schedule remains very tight at this time,’ he said. The Voice Kids premieres on Sunday, September 13, on GMA.

His integrity in the workplace all these years has certainly resulted in both respect and abundance, not only in showbiz circles but also in many societies. Dantes is a major proponent of the league of actors known as Aktor PH, an organization that protects actors’ rights and safeguards their work conditions. He also champions environmental protection and preservation, disaster resilience, youth empowerment, and work-life balance through various organizations and foundations where he is actively involved.

‘It’s not difficult to lend your voice and your presence. It is my privilege to be a blessing to others in my own small way. I continue to be grateful because I am blessed beyond measure,’ he told us.

Dingdong Dantes’ current state of abundance in the many aspects of his personal and professional life emanates and grows from within, then manifests outwardly in the most organic ways. He continues to cultivate abundance because he is centered in gratitude, work ethics, service and generosity. And he has truly mastered the art of balance in living his beautiful life.

THE casualty count attributed to storms Luis, Maymay, Neneng and Pilandok, and the southwest monsoon continues to climb.

The National Disaster Risk Reduction and Management Council (NDRRMC) said the latest figure, as of 5:00 p.m. on Sunday, since the nonstop rain started on August 1, has climbed to 43 dead, 20 injured, and five missing.

While Pilandok is already outside the Philippine Area of Responsibility (PAR), the southwest monsoon, locally known as habagat, continues to threaten Luzon with intermittent rains that threaten to trigger flash floods, landslides, and cause more flooding in low-lying areas, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) said.

The state weather bureau said moderate rain of 50 to 100 mm is forecasted over Zambales, Bataan, and Occidental Mindoro, until September 9. Cavite and Batangas are also expected to experience moderate rain from September 7 to 9.

The southwest monsoon, a weather system that usually begins between late May to early June, brings warm, humid air, frequent heavy rainfall, and southwesterly winds, primarily affecting the western parts of the country like Metro Manila, Zambales, and Palawan. It usually wraps up or ends between late September and the second week of October.

Because of the nonstop rain, the flood-affected population grew to 2.9 million families or 10.2 million people in 697 barangays.

As flooding subsides in some areas, some families have started to return home. A total of 18,100 families or 62,300 people remain in 807 different evacuation centers.

According to the NDRRMC, a total of 552 areas remain flooded. At least 180 cities and towns remain under a state of calamity.

The landslides and flooding have damaged 4,467 houses.

Meanwhile, the NDRRMC said damage to public and private infrastructure has now reached P7.79 billion, while damage to crops has now reached P4.4 billion.

The government said the cost of assistance provided to affected families has reached P2.59 billion.

The clearance of the Mynt’s IPO includes the grant of its request for a lower minimum initial public float of 12 percent-as opposed to 15 percent-in accordance with SEC Memorandum Circular 11 (series of 2026), or the ‘Minimum Public Ownership Rules for Issuers of Shares of Stock to be Listed on an Exchange.’

Under the ruling, the agency may approve, upon recommendation of the Philippine Stock Exchange, the lowering of the public float of issuers with exceptionally large expected market capitalization at the time of listing. Mynt’s expected initial market capitalization upon listing is P668.96 billion, according to data submitted to the SEC as part of its registration.

This exceeds the P200-billion initial market capitalization threshold under MC 11.

The company will offer up to 1.61 billion common shares as part of the primary offer, while up to 6.42 billion shares will be offered and sold by a selling shareholder. The offer also includes an overallotment option of up to 1.2 billion shares.

The shares will be sold at an indicative price of up to P10 apiece.

Assuming the overallotment option is oversubscribed, the company looks to net up to P89.25 billion from the total offer.

Around P14.95-billion worth of net proceeds is expected from the primary offer, which will be used for digital financial services growth, product development and general corporate purposes.

The offer period will run October 6 to October 12, in time for the issuance and listing on the Main Board of the PSE under the ticker ‘GCASH’ on October 20.

Mynt has picked BPI Capital Corp. and BDO Capital and Investment Corp. as the domestic lead underwriters and joint bookrunners for the offer.

Jefferies Singapore Ltd., CLSA Ltd. and The Hongkong and Shanghai Banking Corp. Ltd.-Singapore Branch will serve as international joint bookrunners. Morgan Stanley and Co. International Plc., J.P. Morgan Securities Plc. and UBS AG-Singapore Branch will serve as joint global coordinators and joint bookrunners.

The Department of Energy (DOE) has received 14 offers from 12 firms interested in joining the special Green Energy Auction (GEA) for waste-to-energy (WTE) projects.

Companies that submitted bids include Green Atom Renewable Energy Corp., LECRA Eco Sustain Philippines Inc.; Manila Integrated Environmental Corp., San Mateo Sanitary Landfill and Development Corp. (which submitted two offers), and International Solid Waste Integrated Management Specialist Inc. (also with two offers).

MetPower Venture Partners Holdings Inc., Prime Integrated Waste Solutions Inc., Forza Development Corp., North Maharlika Energy Corp., the City Government of Davao, and two offers from Pan Pacific Renewable Power Phils. Corp. (PPRPC) are also interested in the WTE auction.

‘We already released the list of qualified GEA-WTE bidders last September 4. We have 14 projects and 11 qualified bidders. The pre-bid conference is on September 15, the auction proper is on October 13, and the issuance of the certificate of award will be from December 16 to 18,’ DOE Undersecretary Rowena Guevarra said during an online press briefing held Monday.

The DOE adjusted the installation target capacity from 230 megawatts (MW) to 400 MW. However, this adjustment does not automatically translate into project awards. The DOE said projects must demonstrate ‘an adequate and sustainable waste supply, technical and financial capability, environmental compliance, competitive costs, and the ability to meet required development timelines.

As an emerging renewable energy (RE) technology, WTE project development is one of the country’s strategies to address solid waste management, mitigate floods, and provide additional clean energy.

Metro Manila alone generates an estimated 9,000 metric tons of municipal solid waste daily. Based on DOE estimates, the current waste stream in the metropolis could support around 200 MW of WTE capacity, subject to the availability and suitability of feedstock and other technical requirements.

The DOE said, however, that WTE is still subject to strict evaluation to ensure long-term viability and environmental safety.

President Ferdinand Marcos Jr. called on local government units (LGU) to emulate the solid waste management initiatives of Marikina, which he said is a good example of a circular economy, to rid trash from their waterways as the government ramps up its anti-flooding campaign.

The Chief Executive made the statement after he inspected ongoing construction of the Marikina River Linear Park and the and the Centralized Materials Recovery Facility (MRF) in Barangay Sto. Niño, Marikina City last Monday.

The 11-kilometer park will integrate 428.57 hectares of urban green spaces and will serve as bio-shield, localized flood buffer and natural cooler, as well as physical barrier for illegal waste dumping to prevent flooding in Marikina.

Marcos lauded the comprehensive flood control measures of Marikina, which includes implementing a no build zone, installation of trash catcher in the Marikina River, as well as composting or recycling waste.

‘Food waste is turned into compost, while plastics are used to make bags and bricks,’ he said in Filipino.

The initiative is backed the Department of Environment and Natural Resources (DENR) in terms of the installation of the floating trash traps and the deployment of ‘estero’ rangers for waterway clean up in 12 barangays in Marikina.

Marcos said Marikina’s solid waste management initiatives is a good example of a circular economy, wherein the wastes are segregated and then reused, repaired, refurbished, and recycled.

‘This should serve as the template-and is indeed becoming the template-for various cities across the Philippines, especially, of course, here in the NCR [National Capital Region],’ Marcos said.

He earlier said he wants LGUs to intensify their efforts in implementing the ‘no build zone: law, as well as solid waste segregation, to reduce incidents of flooding, which was worsened because of extreme weather caused by climate change.

Palace Press Officer Claire Castro said the President ordered DENR to ensure LGUs comply with solid waste management and for the Department of the Interior and Local Government to encourage local officials to replicate the model used by Marikina City.

She said Marcos also emphasized the important role of the public cooperation with authorities in terms of waste disposal.

Two years ago, during a break in my radio-TV program, I spoke with former Public Works Secretary Rogelio ‘Babes’ Singson. I didn’t attach much importance to that conversation then, but I do now. Singson told me President Ferdinand Marcos Jr. was looking at the possibility of creating a department devoted to water. He was being considered to head it, he said, but had declined.

The conversation returned to me this week for an unexpected reason. Scrolling through Facebook, I came across an old video of a 2023 meeting between President Marcos and Pampanga officials following another episode of severe flooding. Singson was there. And so was an argument that sounds remarkably contemporary three years later.

Singson had revived a proposal developed during his tenure at the Department of Public Works and Highways: take roughly 200 hectares of the 2,000-hectare Candaba Swamp and examine whether it could become an impounding area for excess water.

There was fierce resistance. Pampanga Rep. Anna York Bondoc warned about the livelihood of farmers and at one point threatened to walk out. Marcos listened and asked the question that matters in public policy: if not this, what do you propose? Dredging was offered as one answer.

The President’s response was instructive. Dredging might have to be done, he acknowledged, but it’s expensive and temporary. After several months, sediment returns and government dredges again.

Three years later, Pampanga was flooded again. And perhaps that old exchange contains the beginning of a different way of thinking about flood control. Instead of asking first what structure should we build, perhaps the government should ask: Where does the water come from, where should it go, where can some of it safely wait, and what prevents it from getting there? That question takes us upstream.

In Baras, Rizal, the National Bureau of Investigation arrested two individuals last April following surveillance of an alleged illegal quarrying operation in Barangay San Salvador. The NBI said mining authorities certified that no permits for mineral extraction in the municipality had been issued.

Now, it would be scientifically irresponsible to say that illegal quarrying in Baras caused the flooding now occurring in Pampanga. They belong to different river systems.

But Baras raises a question that belongs inside every modern flood-control study: What is happening to the land where rainfall first meets the ground? Forests, vegetation, soil, slopes and geology influence how quickly water moves through a watershed. Disturb those conditions and the hydrological equation can change.

Now travel downstream to Pampanga. That provides a reason for the government to go upstream, possibly in Baras, Rizal to see how quickly water enters the system. And that perhaps raises the possibility of President Marcos paying a visit to what had been tagged by the NBI as an illegal quarrying operation. That explains how water from the watershed travels and how fast because of uncontrolled quarrying.

President Marcos has now directed the government to return to flood-control studies that have accumulated over decades. Malacañang says DPWH is updating master plans and feasibility studies for the country’s major river basins, with 16 already updated and the Cagayan and Pasig-Marikina-Laguna de Bay plans targeted for completion this year.

That review should not become another exercise in producing studies. It should begin by asking what happened to the studies already produced. What was recommended? What was built? What was abandoned? What changed? What assumptions about rainfall are no longer valid? And what did we learn when the water finally tested what the government had constructed?

The old Candaba proposal deserves examination under that discipline-not automatic approval. Map the basin. Model the water. Protect the watershed. Identify where excess water can safely wait. Keep rivers and drainage paths capable of carrying what must move.

Perhaps Singson’s idea of putting

water under one institutional roof deserves another look as well. The Philippines currently divides responsibility for water among agencies concerned with public works, irrigation, environment, drinking water, dams, local government and disaster response.

Yet the same raindrop can pass through the jurisdiction of several of them before reaching Manila Bay. Maybe the deeper question is not whether the country needs another department. It is whether somebody in government must finally be responsible for the entire journey of water.

Baras reminds us to look at where that journey begins. Candaba reminds us that sometimes water needs somewhere to wait. Macabebe reminds us that eventually water needs somewhere to go.

And the floods now confronting the country may be telling us something that decades of individual projects have obscured: Flood control should not begin with concrete.

It should begin by following the water.