Nation at a Glance — (11/01/19)
News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
3,500 gather at Smart Araneta Coliseum for world’s largest hackathon attempt
After months of anticipation, Impact Hub’s Impact Hackathon finally kicked off on October 30. Serving as an official attempt at the Guinness World Records for biggest hackathon, the 24-hour activity gathered 10,000 participants across the Philippines and Asia-Pacific, with 3,500 stationed at the Smart Araneta Coliseum, its main venue.
The challenge is to create sustainable, tech-based solutions for climate change, education, agriculture, smart cities, and health and wellness. Aside from being anchored on the United Nations Sustainable Development Goals, these five problem areas were also chosen for their pressing relevance in the country and region.
For example, the smart cities vertical presents various problems from specific locales. This includes the need for solid waste management measurement system in Manila Bay and easier data-sharing and –monitoring within Quezon City Hall.
Upon code freeze, when all participants must stop developing their projects, the solutions will be judged against four criteria:
- technical viability, or impressiveness of the technology utilized
- business viability, or the solution’s feasibility and scalability in the local market
- social index, or the ability of the solution to actually solve the given problem
- and design and learning stretch, or the learning curve that the team underwent during the hackathon.
Starting small
It’s par for the course during hackathons that the solutions should try to make the world a better place. But according to Donald Lim, Country CEO of Dentsu Aegis Network Philippines, it’s time for innovators to aim bigger and go for saving the world.
“Do not create band-aid solutions… Small improvements will not make you win,” he said. “If you think that the problem lies in a particular segment, try to find a transformation solution rather than just making small improvements.”
While the gravity of the goal suggests that the solutions must be global in scale, participants were called to look a little closer to home. “What’s closest to our heart are the [problems] that we experience in our everyday lives,” said former senator and social entrepreneur Paolo Benigno “Bam” Aquino IV. “Start from there… what situations here in the Philippines can help produce solutions that may be used in other countries?”
Ultimately, saving the world is a collective effort—one that starts from within a team and can bloom into something bigger.
“Everyone here is competing… but after the time is up and you’ve pitched, I hope that you will find ways to cooperate and collaborate with each other,” said Aquino. “Nobody usually gets the solutions right the first time. But [after] the second and third try, [and] this time powered and supported by other individuals, that’s what usually creates the solutions that can really change the world.”
Gov’t eyes checks on imported plywood
By Jenina P. Ibañez
THE DEPARTMENT of Trade and Industry (DTI) is studying the possibility of putting plywood back on the list of products under mandatory certification in a bid to curb importation of substandard products.
In a statement on Wednesday, DTI said that it had consulted plywood industry stakeholders for their observations and recommendations about the influx of the product into the country since it was removed from the list in 2015.
The department is now considering drafting a Department Administrative Order (DAO) to put the product back on the list of those that need to be certified as meeting standards.
Imported plywood, which are not tested for quality, grew nearly fourfold from 2015 to 2019, DTI noted in its statement. According to DTI’s Bureau of Philippine Standards (BPS), imported plywood increased to 32,768 metric tons (MT) worth around $12.75 million as of July from 8,624 MT worth around $4.5 million in the same seven months in 2015.
“In a three-year period since plywood was removed from the list in 2015, imports have rapidly increased and these are not tested for standard compliance,” the department’s statement quoted Trade and Industry Secretary Ramon M. Lopez as saying in his speech at the 2nd Philippine Consumer Congress on Oct. 25.
“We are adding more products in the mandatory compliance since many of them were released from the list. Since then, we saw import surges of these products. And since they are not subjected to mandatory testing, substandard products can come in.”
The Philippine Wood Producers Association (PWPA), which represents both local companies and importers, supported DTI’s move. “[DTI] is putting plywood back into the mandatory certification [list] because it’s their mandate for construction materials. Substandard products will be a risk to safety,” PWPA Executive Director Maila R. Vasquez said in mix of Filipino and English during a phone interview. “Standards would assure consumers that all products coming in the domestic market are the right quality.”
“We’re not saying that [imports] do not make the standard, but there are many that come in that don’t have the best standard,” Ms. Vasquez added.
DTI said in the statement that the objective is to ensure consumer safety by eliminating the sale of substandard plywood products. “Substandard plywood is ‘unfair to all of us’ and threatens both public safety and the local manufacturing industry,” Mr. Lopez said.
He added that local plywood companies are forced to either sell at a loss or stop operations because substandard plywood can be sold at low prices. “This, in turn, may shrink the country’s manufacturing base and widen the trade deficit.”
During their consultation with DTI, the PWPA asked for more efficient testing for certification so as not to delay entry of plywood. “The concern is, of course, how do we quickly bring out both the local and imported products under testing,” Ms. Vasquez said. “PWPA, of course, we follow the requirements of the government. Our concern is it that it should not affect the business. In business, time is gold; every minute counts… [DTI] should ensure that there will be no delays.”
The DTI, according to Ms. Vasquez, is considering speeding up the process of accrediting plywood testing centers, since there are only two with such permit currently.
Under the possible DAO, plywood products must comply with the Technical Regulation for Mandatory PS Licensing Scheme under the International Standard for Plywood, PNS ISO 12465:2017.
The BPS will then test plywood samples before issuing PS Quality or Safety Certification marks to local manufacturers and Import Commodity Clearances to importers.
DTI has issued new technical regulations for cement, steel bars, and glass. The department is working on drafting a DAO for ceramic tiles and is holding consultations for regulations on black iron and galvanized iron, steel pipes and steel sheets.
Philippines to present nuclear plan to IAEA
By Charmaine A. Tadalan
Reporter
THE GOVERNMENT will present a plan to revive the country’s nuclear energy development program in a meeting next month with the United Nations’ International Atomic Energy Agency (IAEA), Energy Secretary Alfonso G. Cusi said at the handover event of the phase one report of the Integrated Nuclear Infrastructure Review (INIR) mission at the F1 Hotel Manila in Taguig City.
The IAEA on Wednesday officially turned over to the Department of Energy (DoE) its 19-point INIR on the Philippines’ readiness to develop nuclear energy as a resource.
It cited the Philippine government’s need to hold more public consultations, legislate a legal and regulatory framework, and address infrastructure and other concerns related to a nuclear power program.
“The Philippines needs to involve a broader range of stakeholders in completing the work required to enable a national commitment to introduce a nuclear power,” Milko Kovachev, IAEA head of Nuclear Infrastructure Development Section, said during his presentation of the INIR report in Taguig City, Wednesday.
Another key area of concern cited by the report is the lack of a comprehensive framework that involves, among others, establishment of an independent regulatory body as well as steps to address nuclear security and radioactive waste.
A measure providing a regulatory framework for nuclear energy development and use nearly hurdled the 17th Congress, after it secured third-reading approval in the House of Representatives, but failed to hurdle the Senate when session adjourned on June 3. So far, there are three bills filed now in the House seeking to establish a comprehensive nuclear regulatory framework, but none in the Senate.
The IAEA said the government should also address other requirements of a nuclear power program, such as human resources, leadership development, and a coordination mechanism for emergency preparedness and response.
President Rodrigo R. Duterte in his visit to Russia in May sealed an agreement with state-owned Rosatom for the conduct of a pre-feasibility study for small modular nuclear plants.
“We go in phases,” Mr. Cusi told reporters on the sidelines of the INIR hand-over ceremony.
“As what we have done here, we finished our survey, they have submitted to us their observation,” he added.
“Ngayon naman gagawa kami ng action plan, ipi-present namin ‘yan sa December sa kanila, lalagyan ng (Now we will prepare and action plan which we will present to IAEA in December, complete with) timeline when it will be accomplished.”
The DoE tapped the Social Weather Stations to conduct a survey on the acceptability of nuclear power among Filipinos. Mr. Cusi said the poll, held in May, showed 79% of Filipinos are in favor of nuclear energy.
“The report says that 79% of the Filipinos favor nuclear,” Mr. Cusi said during the ceremony.
“The only problem is that, ang sinasabi (the survey respondents said), ‘not in my own backyard,’ but 79% of the Filipinos favor. Then sinasabi sa survey (says), also is that 72% would follow or would believe the decision of the president.”
In October 2016, Mr. Cusi called for the creation of the DoE-Nuclear Energy Program Implementing Organization to comply with IAEA’s policy guidelines. The organization led “unified and coordinated” efforts and activities in holding studies and research on the feasibility of nuclear energy development.
On Dec. 10, 2018, the mission’s first phase was held in Manila, during which the DoE presented its self-evaluation report outlining the progress made in meeting the 19 requirements, which serve as a guide for countries considering the adoption of nuclear power.
The mission’s phase one report, which is the first of three, contains IAEA’s initial findings on the country’s existing good practices and the improvements it had undertaken.
It also covers the agency’s recommendations and suggestions for the DoE-NEPIO’s preparation of an integrated work plan, which will answer IAEA concerns should the government decide to pursue the use of nuclear power as a potential source of energy for the country.
The DoE said a meeting between the IAEA and the DoE-NEPIO, with the assistance of officials of the Philippine Nuclear Research Institute, is scheduled on Nov. 12-15 in Vienna, Austria. The local delegation will be led by DoE-NEPIO Vice-Chairman and DoE Assistant Secretary Gerardo D. Erguiza Jr.
“With energy security at the cornerstone of our country’s energy agenda, we need to bring to the forefront, intelligent, informed, and comprehensive dialogue on whether we could safely utilize nuclear power as one of our alternative sources to meet our ever-growing energy requirements,” Mr. Cusi said.
“But why nuclear? Nuclear is another source of energy that has been proven very dependable, very efficient.”
Mr. Cusi said had the country used nuclear energy in the late ‘60s or the early ‘70s, the Philippine economic landscape would have been different.
He said the discontinued Bataan Nuclear Power Plant (BNPP) had been “demonized” and continues to affect Filipinos.
“But as I’ve said before, all the accusations, all the allegations about the nuclear, about the BNPP had been proven wrong,” he said.
The government has been advised against reviving the BNPP.
“It still needs investigation,” IAEA Deputy Director General H.E. Mikhail Chudakov told reporters.
“My personal experience, not. You need to construct new nuclear power plant.”
Asked for his assessment on the Philippines’ move to revive nuclear energy development, Mr. Chudakov replied: “It depends on the country, it depends on existing infrastructure.”
“I must say that the Philippines is actually not absolutely a new comer for the nuclear power.” — with Victor V. Saulon
Farm output could have recovered in Q3 — economists
By Vincent Mariel P. Galang
Reporter
AGRICULTURE PRODUCTION could have recovered slightly in the third quarter from contractions in the preceding three months and a year ago, economists said when asked for expectations on farm data which the Philippine Statistics Authority (PSA) will report on Nov. 6.
Rolando T. Dy, executive director of Center for Food and Agri-Business of University of Asia and the Pacific (UA&P), said “[i]t looks like agriculture is heading towards near one percent” growth, with some pullback from palay which contributes nearly a fifth of value of farm output that was partly offset by corn.
The PSA last month estimated that production of palay dropped 4.7% to 3.05 million metric tons (MMT) in the third quarter from the 3.2 MMT produced in 2018’s comparable three months, while corn output increased by a fourth to 2.76 MMT from 2.2 MMT.
Agricultural output, which accounts for a fourth of the country’s jobs but contributes just a tenth to gross domestic product, dropped 1.27% in the second quarter and by 0.87% in last year’s third quarter. The sector’s production managed to edge up by 0.64% in this year’s first three months.
These brought first semester farm performance to a 0.24% contraction, versus a 0.63% gain in last year’s first six months. That compared to the 2.5-3.5% target range for farm output growth under the 2017-2022 Philippine Development Plan.
In a telephone interview, UA&P Professor Victor A. Abola said he expected third-quarter farm output to have posted “a recovery from last year” with a 1.2% expansion.
University of the Philippines School of Economics Professor Ramon L. Clarete did not give an estimate for third-quarter farm performance, but noted that the third quarter every year is considered a lean season for palay production and that a dry spell aggravated the situation.
Michael L. Ricafort, economist at Rizal Commercial Banking Corp., said in a mobile phone message that “agriculture growth could still be modest at low single-digit year-on-year growth rate in third quarter 2019” with rice production reeling from increased importation under a recently liberalized regime.
IMI slumps to loss in 3rd quarter
INTEGRATED Micro-Electronics, Inc. (IMI) slumped to a net loss in the third quarter as it continued facing a global slowdown in its main market segments.
The Ayala-led manufacturing firm reported yesterday an attributable net loss of $5.33 million in the three months ending September, a turnaround from the $9.78 million attributable net income it posted in the same period last year.
Revenues in the three-month period declined 11% to $303.88 million, alongside an 8% drop in cost of sales to $281.74 million.
Year to date, IMI’s attributable net income was slashed to $451,000 from $41.35 million last year. Revenues in the three quarters slipped 7% to $939.57 million, while cost of sales dropped 5% to $860.48 million.
In a statement, the company pointed to the industry slowdown and various geopolitical issues that dragged its performance during the period.
“A lingering contraction in the automotive space, particularly in China, has brought down customer demand forecasts that led to challenged margins as new manufacturing lines are temporarily underutilized,” IMI said.
“China’s domestic market challenges prove to be the biggest drag, with IMI’s factories in the region showing a 22% decline versus the same period in 2018,” it added.
IMI said its wholly owned businesses posted a revenue of $755.2 million during the period, down 3% from last year.
Revenues from Via Optronics and STI Enterprises, Ltd. also went down 20% to $184.4 million due to production delays in the company’s consumer laptop business and political tensions in United Kingdom.
However, IMI Chief Executive Officer Arthur R. Tan believes the company is strong enough to power through the “cyclical nature of the industry.”
“Despite market challenges and geo-political uncertainties, technology and electronics remain to be the biggest drivers in the future of society. We remain committed to our long-term strategy of establishing ourselves in emerging technology platforms,” he was quoted in a statement as saying.
“I am confident that we have the right strategies in place, and that our experience, technological flexibility, and wide global footprint will enable us to seize the many opportunities ahead despite the headwinds affecting the entire industry,” he added. — Denise A. Valdez
A $500 Rye Whiskey?
WHEN Samurai Scientist, the latest release from WhistlePig Whiskey’s Boss Hog series, arrives on shelves later this month, it won’t stay for long. It’s the world’s first rye finished in Japanese Umeshu barrels, and the name — and its pewter samurai topper — is a nod to Jokichi Takamine, the “samurai chemist” who’s credited with sharing traditional Japanese fermentation techniques with western whiskey makers in the early 20th century.
It also matches the most expensive price that the Vermont-based distillery has ever charged for its rye. Even at $500, it’s still less than what you’ll find on the secondary market, the purview of collectors and connoisseurs. In 2016, WhistlePig released an Armagnac-finished liquid that now fetches upward of $1,000 on resale sites; Boss Hog V, from 2018, was finished in Calvados barrels and can be found online for about $675.
The release highlights the changing fortunes of rye over the last decade as the spirit shakes off its reputation as a less-expensive alternative to bourbon. Bottles are now carrying price tags typically worn by single malt scotch.
There’s been a parade of rye offerings seasoned with everything from rum (Angel’s Envy) to red wine (Sagamore Spirit). These labels have lifted expectations of what a rye can be — and with them, commanding prices.
“It was an uphill battle when we were selling $50-a-bottle rye around the year 2000,” recalls Joseph J. Magliocco, president of Michter’s Distillery. His brand’s Toasted Barrel Finish US*1 Rye now retails at $80. “It’s a bit embarrassing, but the first month that we sold 50 three packs — 150 total bottles — of all our rye in the entire US market in one month, we were so excited that we had a party in the office.”
In reality there wasn’t much to celebrate. Once the most consumed style of spirit in the US, rye had been in steady decline since Prohibition. By 2006, an estimated 150,000 nine-liter cases of rye whiskey were sold in the country, compared with 14.7 million cases of bourbon, according to the Distilled Spirits Council.
The modern cocktail renaissance changed all that. Bartenders interested in resurrecting turn-of-the-century recipes discovered many that were built around rye. Distillers and distributors lined up to get the liquid into back bars and onto menus. Since 2009, sales have increased 1,100%, growing to 1.1 million cases in 2018.
Good whiskey requires a minimum of two years to be labeled as “straight” (a baseline threshold of quality for bourbon and rye), and typically double that to merit praise. The rye revival caught producers off guard, and many had to scramble to get juice to bottle. En masse, they turned to MGP, a massive Indiana-based distillery that specializes in rye for private label sales. Operating continuously since the end of Prohibition, the industrial facility had ample stock to unload.
Since so much supply was coming from a single source, barrel finishing became a way for brands to distinguish themselves. In 2014, High West launched a barrel select program as a platform for experimentation. The Utah-based distillery placed its already popular Rendezvous Rye blend into oak pipes that had previously held port. The result, A Midwinter Night’s Dram, went for $90 a bottle.
“We’re not trying to change flavors in barrel finishing,” says Brendan Coyle, High West’s master distiller. “Our goal is to accent the overall profile while not drowning out the base spirit. Wine barrels are a natural fit. They exhibit a red fruit and vinous character that pairs well with the spice elements of the rye.”
Transferring spirit into a secondary barrel after initial maturation is not unique to rye. The category just happens to be better suited to the practice than many of its casked counterparts. “Given the innate qualities of rye and the different styles you can produce — from spicy, to soft and floral, to fruity and baking spice-forward, and everything in between — it stands up beautifully to a variety of finishes,” says Pete Lynch, WhistlePig’s master blender.
Dave Pickerell would have agreed. The late WhistlePig master distiller presided over the birth of premium rye in 2007. His original 10-year-old product disrupted the market with its $75 price tag — more than three times the cost of most preexisting entries in the category. Next he unveiled Old World, a blend of MGP rye aged in barrels once belonging to Sauternes, Madeiras, and ports. It sold for $120 and has been in limited supply since.
Even more scarce is the Boss Hog series that Pickerell launched in 2013, now overseen by his protégé Lynch. Less than a hundred barrels, matured in oak for upward of a decade, are made. Each edition has showcased flavors far beyond the typical bounds of the category, both stylistically and geographically.
Initially, he sought out Mizunara, a rare Japanese oak that is trending in premium whiskey circles. But after tasting a barrel-aged plum wine at Kitaya, he saw something with greater potential to enhance flavor. “Umeshu isn’t usually aged, whereas this one had sat for over 11 years,” Lynch recalls. “It was a very sweet, tart liqueur with an umami-like quality that comes from spending so much time with the fruit.” Those same notes round out the tongue-tingling spice of a big, barrel-forward, 16-year-old rye clocking in at 120-proof. Unusual to most fans of the style in the US will be a chewy mouthfeel, elongating rich, ripened edges.
As stocks of the spirit mature in warehouses across North America, the value of what’s in those barrels continues to soar. A $500 bottle might soon seem like a bargain for a rye that perhaps spent time in casks formerly belonging to ice wine, walnut liqueur, or amaro. When it comes to funky finishes, this category is just getting started. — Brad Japhe, Bloomberg
ALI to invest P8B in QC estate
AYALA LAND, Inc. (ALI) is investing P8 billion in a new mixed-use district in Novaliches, Quezon City.
Stephen S. Comia, senior division manager for ALI’s strategic landbank management group, said The Junction Place is a 11-hectare “pocket urban development” located in Barangay Talipapa between Quirino Highway and Tandang Sora Avenue.
“Total investment is about P8 billion. Since we are doing the projects at the same time, it is also our five-year plan,” he said during a press briefing in Makati City, Wednesday.
The Junction Place will feature residential, commercial and recreational components.
Of the total investment, ALI is spending P500 million for land development, including the construction of a four-lane road connecting Quirino Highway and Tandang Sora.
“The site is located in between two major thoroughfares… So we plan to construct a spine road called Junction Place Boulevard, and open up that connection from Tandang Sora you don’t have to go to the intersection of Tandang Sora and Quirino, you can go through the spine road and exit to Quirino,” Mr. Comia said.
ALI has already sold around 8,000 sq.m. of commercial lots facing the spine road, as it hopes this will spur economic activity in the area.
At the same time, ALI is building a transport hub and UV Express terminal to boost the estate’s connectivity to other parts of Quezon City and Metro Manila.
“We will also benefit greatly from the Metro Manila Subway Project, and there will be two stations 800 meters from the project. The first three stations will be operational by 2022,” Mr. Comia said.
The Junction Place will be anchored by an Amaia Land residential development. Amaia Land is planning a five-tower development on a 1.7-hectare lot near the estate’s Tandang Sora Avenue exit.
“(Amaia Land) fits the market in the area. Amaia is known for affordable, reliable and quality homes… Initial plan is five towers in total, mid-rise (towers),” the ALI executive said.
WalterMart is also set to start construction on a 5,000-square meter (sq.m.) mall in The Junction Place by December.
“Waltermart is located on the side of Quirino. They will be constructing a mall with 5,000 sq.m. of leasable space. We partnered with them because it fits the market of the area… Anchor tenants include Waltermart, W Department Store, Abenson, Homeplus, and Food Choices,” Mr. Comia said. — Cathy Rose A. Garcia
Today’s wedding venue was originally an anniversary gift
IT WOULD HAVE been easier for the Liamzon family to sell Villa Milagros, the one-hectare property their grandparents built up at the foothills of the Sierra Madre by Rizal province.
Isidoro Liamzon, a banker from the 1960s, had the house built between 1965-69 as a 35th wedding anniversary gift to his wife, Milagros.
It is a grand house, for sure: think a port-cochere with a separate portico, multiple staircases, marble flooring in two stories, and grand chandeliers made with porcelain flowers that the late Mr. Liamzon chose with his wife during a trip in Europe.
The house, which had served as a weekend home for the senior Liamzons, had been abandoned for 45 years, with Andrea Liamzon describing it as a white elephant.
“He died when my dad was 13,” said Ms. Liamzon. “His lifetime goal was to build 11 banks for all of his kids — it didn’t happen. He passed away after building the 7th one.” Ms. Liamzon is Isidro’s granddaughter, and Managing Director of Villa Milagros.
The younger Ms. Liamzon quit her corporate job, set up a company to formally manage the house, and spent two years cleaning, rewiring, and renovating. The house opened in 2017 as an events venue, and has had the honor of hosting events for people such as Francis Libiran, Bangs Garcia, and Mike Tan, and will probably be remembered as the venue of the wedding between Aljur Abrenica and Kylie Padilla.
Ms. Liamzon took BusinessWorld and other guests on a tour of the house last month. It’s about a 30-minute drive from Commonwealth’s Sandiganbayan, and the sound of trickling water from fountains, as well as the very obvious view of the house’s tower greeted us and set expectations.
Ms. Liamzon showed us the bridal suite, which was the house’s former library, done up in pale colors and dominated by a bed. Photographs of the family were up on the shelves in silver frames. “We just wanted to remind people that this used to be a family home,” she said.
She took us to three more bedrooms, which could serve as bedrooms for the bride’s entourage, noting that the furniture is a mix between her own family’s collection of antiques, as well as a few new pieces. “They really feel like they’re at home. That’s kind of what we were going for,” she said.
Ms. Liamzon then took us to the gardens, with covered walkways and such, with the tour ending at the former poolhouse, now called the North Wing. Measuring 400 sqm., with a ceiling six meters high, it serves as the banquet hall.
In practical terms, this is where the magic of Villa Milagros is: at the base price of about P150,000 (it can go up, depending on the season), a family gets three amenities: the bedrooms, the gardens, and the banquet hall, which would have taken three separate bookings in other venues. Moreover, the events place only accepts one booking per day, lending exclusivity to a special day. One can even have the house and grounds hired for photoshoots, at about P20,000 for six hours.
Of course, we wouldn’t call it magic if it were simply about the prose of practicality.
“It’s really about the feeling. Weddings are very sentimental events. It’s like they come here, they fall in love,” she said. Perhaps it also goes back to the story of love that built the house in the first place: “You can feel that my grandparents really wanted to build something that would last.”
More than the promises of romantic love, however, the house’s revival as a padlocked property is a story of family and heritage. “We unlocked it, and made it accessible to people for it to be enjoyed,” she said.
Reflecting on the two years of renovation and the continuing work that it takes to keep the place, BusinessWorld asked if selling the house was ever an option. “It would have been easier… but then we would have lost our heritage.” — Joseph L. Garcia
Part of Cavite-Laguna expressway now open
MOTORISTS can now use the first 10 kilometers of the Laguna segment of the Cavite-Laguna Expressway (CALAX) from the Mamplasan Toll Barrier to the Santa Rosa-Tagaytay Interchange, the Department of Public Works and Highways (DPWH) said on Wednesday.
“We all know that (All Saints’ Day) is a time we all pay respects to family and friends who have passed on, and with November 1 falling on a Friday, I’m sure many of our kababayans will take advantage of the time to do some family bonding and go on a road trip. I only see benefits in opening CALAX even on a single lane basis to decongest Laguna Boulevard, Aguinaldo Highway,” Public Works Secretary Mark A. Villar said in a statement on Wednesday.
“We are at 90% completion, the remaining 10% of the works are being fast- tracked while in operations, we hope to fully open before December steps in.”
Mr. Villar said around 10,000 vehicles are expected to enter and exit through the two access points — Mamplasan and Sta. Rosa-Tagaytay Interchange.
“This section will take 10 minutes to drive. A big cut on travel time compared to the 45 minutes it currently takes to travel Mamplasan to Sta. Rosa-Tagaytay road,” he added.
The single lane on the CALAX opened on Wednesday (Oct. 30), but only until 10 p.m.
In a statement, MPCALA Holdings Inc. (MPHI) President and General Manager Roberto V. Bontia said the lane will also be open from 6 a.m. to 10 p.m. from Oct. 31 to Nov. 2.
“For the daily access time starting November 3, we agreed with (Department of Public Works and Highways) that it will be Sunday to Thursday 6:00 a.m. to 6:00 p.m. and giving extended time on weekends, Friday to Saturday 6:00 a.m. to 10:00 p.m. This will only be temporary, until the remaining works for these first subsections are completed,” he said.
Mr. Bontia reminded motorists to drive safely and observe traffic rules while using the partially opened lane.
“Upon issuance of the relevant certifications and permits from DPWH and Toll Regulatory Board (TRB), full access to the completed lanes and other interchanges and 24-hour commercial operations shall be possible,” he added.
The entire length of CALAX project will connect the Manila-Cavite Expressway (CAVITEx) from Kawit, Cavite to the South Luzon Expressway (SLEx) at the Mamplasan Interchange in Biñan, Laguna.
MPCALA Holdings is a subsidiary of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of Hong-Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin
Term deposits fall after reserve requirement cut
By Luz Wendy T. Noble
YIELDS on the central bank’s term deposits mostly fell on Wednesday after another reserve requirement ratio (RRR) cut last week.
The rates also dipped as the market waits for economic data releases and another Monetary Board policy meeting in November.
Bids for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility — a tool to shore up excess liquidity in the financial system and to better guide market interest rates — reached P82.093 billion, higher than the P80 billion in auction, central bank data showed.
The bids were still lower than the P100.489 billion worth of tenders the central bank received on Oct. 30 for the P90 billion it sold.
Tenders from banks for the seven-day notes amounted to P30.189 billion, slightly higher than P30 billion on offer but lower than last week’s P32.563 billion bids against the P20 billion in auction.
Accepted yields for the tenor ranged from 4.15% to 4.225%, compared with last week’s 4.138% to 4.225%.
This resulted in an average rate of 4.2053%, 0.02 basis point lower than last week’s 4.2055%.
Meanwhile, the 14-day paper attracted bids worth P22.925 billion, higher than the P20 billion on offer. This was lower than the P30.24 billion in tenders for a $30 billion offer volume last week.
Lenders went for returns of 4.15% to 4.283%, thinner than 4.15% to 4.3% a week earlier, data showed. The average rate for the two-week notes slipped to 4.2451% which was 0.29 basis point short of last week’s 4.248%.
On the other hand, 28-day term deposits got tenders worth P28.979 billion, lower than the P30 billion on offer. This was also lower than the P37.686 billion in tenders last week.
Accepted yields for the tenor ranged from 4.21% to 4.5%, increasing from the previous auction’s yields of 4.18 to 4.45%. This brought the one-month paper’s average rate to 4.2886%, 4.06 bps higher than last week’s 4.248%.
The lower yields in the seven- and 14-day debt paper come ahead of data releases and the policy meeting this November.
“The decline in the seven- and 14-day tenors was caused by participants preferring the shorter deposit tenors ahead of major local economic releases next week and the Monetary Board meeting by mid-November, which has also eased off some demand toward the longer 28-day tenor,” a trader said in an email.
Rizal Commercial Banking Corp. chief economist Michael L. Ricafort traced the mostly marginal lower auction yields to last week’s surprise reserve requirement ratio cut.
“BSP TDF auction yields were mostly marginally lower after the surprise 1-percentage point cut in larger banks’ reserve requirement ratio on Oct. 24 effective December 2019 that would result in additional peso liquidity,” he said.
“More peso funds would still lead to some easing of short-term interest rates,” he added.
The policy-making Monetary Board cut the ratio for the fourth time this year by another 100 basis points, which will be effective by December.
This will bring the reserve ratio of universal and commercial lenders as well as nonbank financial institutions to 14%, while that of thrift banks will be at 4%. The 3% reserve requirement ratio for rural banks was kept.
The central bank earlier said the cut was in line with its reform agenda to promote a more efficient financial system by lowering financial intermediation costs. It would also ensure sufficient domestic liquidity in support of economic activity, it said.
The Monetary Board has two more policy meetings left for the year, scheduled for Nov. 14 and Dec. 6.
The Philippine Statistics Authority (PSA) is set to release October inflation data and third-quarter gross domestic product (GDP) figures on Nov. 5 and Nov. 7, respectively.
New World vs. Old World wine, style vs. substance
THERE ARE two important Judgments of Paris, both of which changed the world, depending on what you’re reading. First, there’s the Judgment of Paris of Greek mythology, where the lost prince of Troy, Paris, had to choose who the fairest was between goddesses Hera, Aphrodite, and Athena, and the consequences of that launched the Trojan War. Secondly, there’s the Paris Tasting of 1976, a competition by a British wine merchant, where California wines flushed out their French counterparts in a blind tasting by French judges. This competition paved the way for New World wines to be taken more seriously.
BusinessWorld took a walkthrough earlier this month at Discover California Wines, an event featuring 40 wineries and more than 60 labels, organized by the US Department of Agriculture and the California Wine Institute. While walking among the numerous wine labels, and sipping and sniffing about, we asked a stakeholder if the dichotomy between Old World and New World wines still exist.
Over at the Robert Mondavi booth, we tasted the Bourbon Barrel-Aged Cabernet Sauvignon, an innovation from the winery’s Private Selection line. (The wine was so fragrant that this reporter had to let go of the glass for a moment. The scent reminds one of a boudoir from the 1930s, with the scent of blond wood and Guerlain, and after you get used to the first whiff, there’s a bit of a temptation to dab the wine on yourself. It had a rounded taste with little sharpness, a silky mouthfeel, but a well-nuanced flavor with a peppery endnote.)
Eric G. Kahn, Marketing Director for Wines for Future Trade International (which distributes Robert Mondavi in the Philippines), had a few things to say about the dichotomy between Old World and New World wines. For example, one might think that French wines still reign supreme when it comes to price, but he says, “Not necessarily anymore.”
Of course, a lot of what makes wine has taken place well outside the bottle: the sun, the soil, and the climate have all touched the grape well before its juicing. “The soils differ. The plants around differ. They have their own unique taste,” said Mr. Kahn.
“When you say Old World wines, you’re talking more of style. The New World style is more fruit-forward. The Old World style is more subtle.”
Meanwhile, Michael William Reyes, General Manager of The Wine Club, which distributes wines from Vintage Wine Estates in the Philippines, shared the same point. “At the end of the day, it all comes down to the fruit. Fruit grown in California has a different profile than a fruit grown in France,” said Mr. Reyes. “You see a lot more fruit-forwardness.”
Furthermore, Mr. Reyes points out differences in industry practices in New World wines and Old World wines: labels in French wines, for example, would display the region where the wine was made, while labels of New World wines display the varietal that went into the bottle. “A lot of [the difference] is [in] the traditions,” he said.
A changing buying climate, however, is changing the business. Mr. Kahn says, “The thing is now, because of the growing acceptance of wine around the world, all the countries now try to capture each flavor profile of each race, culture, and country. So now, you have French [brands] that make fruit-forward wines, only because they want to capture a certain market.” — Joseph L. Garcia