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Renewable energy transition: Are we going in the right direction?

MACROVECTOR-FREEPIK

The Department of Energy (DoE) has recently revised the Philippine Energy Plan (PEP) 2023-2050, outlining key strategies to transition the country toward renewable energy (RE). The plan focuses on four main strategies: accelerating renewable energy development with an emphasis on offshore wind (OSW), developing a smart and green transmission system to support new RE capacity from 2024 to 2040, building port infrastructure to facilitate OSW and other marine-based energy sources, and voluntarily decommissioning or repurposing existing coal-fired power plants (CFPPs). These initiatives aim to meet the country’s growing energy demands while transitioning to a cleaner, more sustainable energy mix.

I developed an economic model to assess whether the PEP is balanced and reasonable given changes in the price of RE and battery storage, and the price of carbon and baseload fossil fuels. The model considers five critical factors: policy support, infrastructure readiness, the price and cost of renewable energy, and the risk and cost of fossil fuels. These variables provide insights into the dynamics of energy transitions and can be applied to other countries seeking to integrate renewable energy into their portfolios. My aim is to eventually create a global Renewable Energy Transition Index.

Policy support for renewable energy in the Philippines is already strong. The DoE has implemented renewable energy auctions, introduced feed-in tariffs (FIT), enabled net metering, and Congress opened up the sector to foreign investments. These policies have created a favorable environment for renewable energy investments by lowering entry barriers, attracting substantial foreign investments, and ensuring predictable returns for investors. Offshore wind, a cornerstone of the PEP, benefits significantly from these policies, as the high costs associated with its development demand strong investor confidence and financial backing. The World Bank estimates that the Philippines has an impressive 178 gigawatts (GW) of technical offshore wind potential, and the PEP aims to capitalize on this. However, the development of offshore wind projects faces a key challenge: infrastructure readiness. The Philippines lacks the necessary port infrastructure and transmission system upgrades to accommodate the scale of renewable energy planned, particularly OSW. Port upgrades and modernized transmission lines, which could represent up to 20-25% of the total cost of offshore wind projects, are critical for success. Without these improvements, delays in integrating new RE capacity into the grid could hinder the country’s ability to meet its renewable energy targets.

Despite the strong policy support, the high cost of renewable energy generation and storage remains a significant obstacle. While the price of renewable energy technologies has been steadily declining globally — solar energy costs have dropped by 89% since 2009, and wind energy by 70% — the cost of energy storage remains prohibitive. As of 2021, large-scale battery storage costs hovered around $137 per kilowatt-hour (kWh), a significant expense that adds to the overall cost of renewable energy systems. Until storage costs decrease, conventional energy sources will still be needed to provide backup power, particularly for managing the intermittency of solar and wind power.

A particular concern for the Philippines is the regressive impact of renewable energy on lower-income households. Renewable energy can be more expensive to develop, and without subsidies, these higher costs could be passed onto poor consumers, especially those who are off-grid. For example, the construction of costly port infrastructure for OSW risks exacerbating economic inequality. As recent data shows, lower-income households in countries with energy poverty can spend between 10-40% of their income on energy, and the cost per kilowatt-hour is significantly higher for them, especially when relying on renewable sources. To avoid burdening low- and middle-income households, the government should treat this infrastructure as a public good, subsidizing the costs through general taxation rather than passing them directly onto consumers.

The cost and risk of fossil fuels add further complexity to the energy transition. Coal currently accounts for approximately 57% of the power generation mix in the Philippines, with most of the coal imported from Indonesia, which supplies the bulk of the country’s coal imports. This heavy reliance on Indonesian coal makes the Philippines vulnerable to price shocks or changes in Indonesia’s export policies. The ongoing geopolitical tensions, particularly in the Middle East and Ukraine, coupled with global decarbonization efforts, have increased the price and uncertainty surrounding fossil fuel supplies, further underscoring the importance of transitioning to indigenous renewable energy sources, like OSW, to enhance the country’s energy security.

The economic model I developed suggests that given current policies, prices of RE, carbon and fossil fuels, the Philippines should be able to reach around 32% renewable energy in its energy mix by 2030. The PEP target is about 35%, which suggests that the plan is largely on track if things go as planned. Achieving the 35% target will depend on timely and effective investments in infrastructure, particularly upgrading ports and the transmission system to handle the increased renewable energy capacity. Moreover, maintaining a stable regulatory environment is essential to avoid additional costs or delays that could arise from new carbon pricing or regulatory burdens.

An additional critical factor in meeting these targets is the implementation of carefully designed hybrid green auction mechanisms. These auctions allow for a mix of renewable technologies, such as solar, wind, and storage, to be bundled together, promoting flexibility and cost efficiency. Hybrid auctions encourage innovation and allow project developers to propose combinations of technologies that can help stabilize the grid and reduce intermittency issues. By integrating diverse technologies, hybrid green auctions can also incentivize investment in underdeveloped areas, support regional development, and improve grid stability. Moreover, this auction model would promote competitive pricing, keeping costs manageable for consumers while contributing to the achievement of the 35% RE target in a timely and economically sustainable manner.

The success of the PEP will also depend on how well the government manages long-term risks. Some of the country’s coal-fired power plants are at least 20 years old, with a capacity of 3.8 GW, and could face the risk of stranded assets as the country shifts toward renewable energy. Moreover, technological advancements in renewable energy and storage could make fossil fuel investments obsolete, adding uncertainty to the future of coal and other conventional energy sources.

In addition to stranded assets, the Philippines faces the risk of fluctuations in fossil fuel supplies, especially due to changes in Indonesia’s coal policy and the escalating war in the Middle East. Any disruptions in coal imports from Indonesia could trigger significant price increases and energy shortages, complicating the country’s energy transition efforts. These risks highlight the importance of diversifying energy sources and reducing reliance on imported fossil fuels.

In conclusion, the Philippine Energy Plan 2023-2050 presents a balanced and reasonable approach to the country’s energy transition. It addresses energy security by promoting the development of indigenous renewable energy sources like offshore wind, while acknowledging the need to modernize infrastructure and reduce reliance on coal and oil. Notably, Bloomberg ranked the Philippines as 4th among developing economies for renewable energy development in 2024, further validating the country’s commitment to a sustainable energy future. However, the success of the plan will depend on timely investments in infrastructure, maintaining a stable regulatory environment, and managing the long-term risks associated with the energy transition. With careful planning and execution, the Philippines can meet its renewable energy targets while ensuring a sustainable and secure energy future.

 

Dr. Eduardo Araral  is an associate professor in Public Policy at the National University of Singapore, a former vice-dean and director at the Lee Kuan Yew School of Public Policy of the National University of Singapore, and a fellow of the Foundation for Economic Freedom.

His name in every bathroom

DAVID KOHLER, Chair and CEO of Kohler Co.

Kohler is in the business of keeping things clean – with style

A COLLEGE professor once told us that all of civilization started with the toilet. By no longer leaving their human waste in the ground, humans moved up a class above animals. By doing so, they liberated themselves from certain diseases: the decreasing mortality rate and the release from the burden of mere survival enabled humans to begin the very important business of building the rest of the world.

David Kohler, chair and CEO of Kohler Co., then runs a company that does not just make toilets — through a line stretching back to the 1800s, it could be argued that the Kohlers are helping to maintain civilization, one flush at a time.

The company is still owned and operated by the family — a release says that Mr. Kohler’s father Herbert Kohler and his aunt Ruth, both deceased, bought out 300 shareholders to consolidate ownership in their branch of the family. The company is headquartered in a town named after the company in Wisconsin, and aside from toilets, they make other bathroom fixtures too — also furniture and tiles. And the family has interests in energy through engines and generators.

On the note about toilets helping build civilization, Mr. Kohler told BusinessWorld, “I think it’s a really good point. The mission of our company is to help people live gracious, healthy, and sustainable lives.”

The company was co-founded in 1873 by Mr. Kohler’s Austrian ancestor John Michael Kohler (Mr. Kohler says that it originally meant “coal hauler” in German) to make farming implements out of metal. In 1883, however, the senior Kohler applied enamel to a water trough for pigs, transforming it into a bathtub and thus creating the company’s first plumbing product. 

Mr. Kohler is in the fourth generation of the family in the business.

“A big part of our business is health and hygiene. But I think where Kohler brings a twist to that is we bring fashion and inspiration and design to what could be a very (commodified) or mundane product line,” he said in an interview with BusinessWorld at the Admiral Hotel on Oct. 1. “We create something out of something that is incredibly important for everyday life.”

Every room in a house tells something about a person: for example, a living room would show off aspirations; a bedroom would show someone’s perception of themselves, and the things that make them comfortable. How then, can a person tell their story through their bathrooms, when their purpose is purely functional?

“Oh no, it’s not!” Mr. Kohler disagrees. “It’s your most intimate space. You spend your mornings there, your evenings there — it’s a very special place.

“Every room tells a story. Our customers really buy our products because of how it makes them feel. They love their home, they want to design an environment that’s right for them. Design is very personal. What creates emotion in you may be not what creates emotion in me. But great design should create emotion. It should make you feel good and pleasant about being in that space,” he said.

“These everyday moments — we live stressful lives, right? And hectic lives. These everyday moments — if we can make these everyday moments special, enjoyable, make you smile — we’ve done our job. We think, in life, finding these everyday special moments is really important.”

Kohler, while offering a range of products at all price points, is known (at least in the Philippines) for appearing in very important bathrooms, such as in hotels and grand houses.

The company also does custom work for very special clients: “We’ve done different gold products for famous people that I can’t name. We’ve had kings of countries that will send our products in advance to the hotel (where) they’re going to be staying, because they want to be surrounded by our products.”

Mr. Kohler discussed another important bathroom: his own. “I really like smart products. I have smart toilets, digital showering — I really like integrated news and music, so in my mirror that I use — I use a Kohler lighted mirror — I have an integrated TV screen in the mirror, because I like to catch up on news in the morning while I’m getting ready… that’s important to me.”

As the title of the story says, Mr. Kohler can find his name in almost every important bathroom in the world. “It’s a great honor. It’s a great responsibility. I really look at what I do as kind of my destiny, my service to our family, our company, and to the world, and trying to make a positive impact on the world in terms of what we do, and leading by example.”

Other companies founded by families in their time have lost both the companies and their names, but step into a bathroom and the Kohler name is still there, and will still be tomorrow. The Kohler story is the dream of every person in business — imagine: the family’s name creating recall, even in a person’s most private moments.

“I just want to leave the company in a much better place than I found it,” said Mr. Kohler.

“What’s helped us survive and thrive over 150 years is this combination of left-brain, right-brain,” he said. Perhaps that’s reflected in the family tree: politicians and businessmen, but quite a number involved in the arts (and even athletics: Mr. Kohler himself served as the General Chairman for the 2015 PGA Championship and the 43rd Ryder Cup at Whistling Straits, held in 2021). “Discipline on one side — disciplined people, disciplined thought, disciplined action — sticking to our principles of how we do business. But then, on the other side, being very creative, and entrepreneurial, and innovative. You can only survive 150 years if you adapt and change, and you innovate for the times, to stay relevant.” — Joseph L. Garcia

Lotus, positioned

The new home of Lotus in the Philippines is located at the corner of 38th Street and 11th Avenue, Triangle Drive, Bonifacio Global City. — PHOTO BY KAP MACEDA AGUILA

The sports car brand is back in the country with a new showroom and a new EV

AUTOHUB GROUP, holder of the Lotus Cars franchise in the Philippines, recently opened in a new location — still at Bonifacio Global City in Taguig — and took the opportunity to locally unveil the sports car marque’s first “four-door electric hyper grand tourer,” the Emeya.

Located at the corner of 38th Street and 11th Avenue, Triangle Drive, the “state-of-the art” facility, said Autohub Group President Willy Tee Ten, represents an “unwavering commitment to elevating the Lotus brand and delivering exceptional customer experience in the Philippines.” Meanwhile, Lotus Cars Asia Pacific, Middle East, and Africa President and CEO Dan Balmer declared in a press statement, “We are proud of our continued partnership with Autohub Group in the Philippines. Together with the professional team at Lotus Manila, we look forward to welcoming our new and existing customers to experience the complete Lotus model range at this dedicated space.”

During our conversations with Mr. Tee Ten, it became evident that the executive is a champion of electrification, and believes that additional EV-friendly government policies will further open the minds of people to the more earth-friendly powertrain. However, we asked him what this means for a brand like Lotus which has traditionally positioned itself as a driver’s car — one that has made a name through capable, visceral, and robust internal combustion engines (ICE).

“Actually, Lotus maintains that all their cars are all driver’s cars,” he insisted. “The Emira is the last of the ICE. And the Emeya and the Eletre (electric crossover) are both vehicles you have to test-drive to see that the drive sensation is still there. Lotus made sure of it.”

Lotus Manila shared that the Emeya “brings together Lotus’ design and engineering DNA, with the latest cutting-edge technologies to set a new benchmark for what it means to drive an electric car. Emeya seamlessly blends the excellent dynamic performance that Lotus is renowned for, with world-class refinement, comfort, usability, and connectivity — bringing drivers the ultimate grand tourer package.” The base variant is priced at P8 million, the S model is at P8.5 million, and the R model goes for P9.5 million.

The top-spec Emeya R boasts an impressive 905hp on tap, courtesy of an EDS 2 (high-power rear motor) two-speed transmission which helps the EV go from a standstill to 100kph in 2.78 ticks — onto a top rate of 256kph. WLTP-certified range for this is up to 485 kilometers between charging sessions. The base and S variants are meant for usability and range — promising up to 610 kilometers on a fully charged battery. Electric motors rated at 450kW enable a zero-to-100kph time of 4.15 seconds, and the claimed top speed is 250kph.

For now though, EVs exist alongside internal combustion mills in the Lotus portfolio — well and good for the myriad of customer profiles. “We’ve got our petrol heads who are into our iconic sports cars, and then we’ve got families who like to hang out with their friends. Then we go full circle with the electric vehicles which are geared more for lifestyle,” reported Lotus Asia Pacific Marketing and PR Manager Pei Leng Tan to “Velocity” in an exclusive interview. “This is exactly where we need to be; we’ve got the product offerings and we’re in the right place.”

She acknowledged that the Philippines is a “very diverse” market, and that there are multiple generations of customers from the old to the new, reckoning that Lotus EVs are attracting a younger demographic. “It’s pretty similar to the rest of the region that we look after, (and EVs) have a vast potential for performance in terms of sales and reach to our new target group.”

Ms. Tan added that she saw a lot of interest in the EVs — and the brand in general — when Lotus Manila recently had a pop-up display here. “I’ve seen the interest and desire for Lotus grow exponentially. We have a very diverse portfolio, so there’s a Lotus for everyone.”

Ms. Tan echoed Mr. Tee Ten’s sentiment about how Lotus EVs are similarly designed to appeal to drivers. “(The cars) look good, they would want to be seen in one,” she enthused. “From a technological perspective, we’re constantly innovating and introducing new technologies in our cars that will support the driver in having a similar experience (with ICE vehicles). That’s from an electric vehicle perspective; it’s still a Lotus through and through.”

Mr. Tee Ten promised about the Emeya, “It fits both former and current Lotus owners who love the feel of the car. It will still be there; the power will always be there. We, of course, cater to the more premium segment — the Lotus lovers and their children. Lotus is also for the younger generation such as successful entrepreneurs who want a good car with fantastic features and power.”

“We love the Philippines and definitely want to ramp up our presence here in the market,” concluded Ms. Tan.

T-bill rates may decline further as inflation slows

BW FILE PHOTO

RATES of the Treasury bills (T-bills) on offer this week could ease further after Philippine headline inflation slowed to an over four-year low in September, which giving the central bank room to continue its policy easing cycle.

The Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday, or P6.5 billion in 91- and 182-day papers and P7 billion in 364-day debt.

T-bill rates may drop further to track the movement of secondary market yields on Friday following the slower-than-expected September inflation print, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Ricafort said the slower September CPI “could fundamentally justify further or even more aggressive local policy rate cuts.”

“Some knee-jerk reaction was seen. However, heavy profit taking still dominated the market,” a trader added in an e-mail.

“We expect a defensive sentiment in the meantime on lack of local catalysts and as market is wary of the oil price surge on the back of geopolitical tensions in the Middle East,” the trader said.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills saw their yields decline by 14.25 basis points (bps), 8.96 bps, and 5.13 bps week on week to end at 5.1153%, 5.29225086%, and 5.5086%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Oct. 4 published on the Philippine Dealing System’s website.

Headline inflation sharply slowed to an over four-year low in September amid lower food and transport prices, the Philippine Statistics Authority reported on Friday.

The consumer price index (CPI) eased to 1.9% year on year in September from 3.3% in August and 6.1% a year ago.

This was the slowest CPI in 52 months or since the 1.6% print in May 2020.

The September print was also below the Bangko Sentral ng Pilipinas’ (BSP) 2%-2.8% forecast for the month and the 2.5% median estimate in a BusinessWorld poll of 15 analysts.

In the first nine months of the year, Philippine headline inflation averaged 3.4%, matching the BSP’s full-year forecast and within its 2-4% target range for 2024.

Analysts said the lower September CPI gives the BSP space to bring down benchmark interest rates further.

BSP Governor Eli M. Remolona, Jr. has said the Monetary Board could slash benchmark interest rates by 50 bps more this year and deliver two more 25-bp cuts at its next two meetings scheduled for Oct. 16 and Dec. 19.

The central bank began its easing cycle in August, cutting its policy rate for the first time in nearly four years by 25 bps to 6.25% from the over 17-year high of 6.5%.

Meanwhile, oil prices rose and settled with their biggest weekly gains in over a year on Friday on the mounting threat of a region-wide war in the Middle East, but gains were limited as US President Joseph R. Biden discouraged Israel from targeting Iranian oil facilities, Reuters reported.

Investors remained anxious about how Israel would respond after Iran fired missiles at it on Tuesday. Supreme Leader Ayatollah Ali Khamenei said earlier that Iran and its regional allies will not back down.

US crude settled up 0.9% at $74.38 a barrel and Brent settled at $78.05 per barrel, up 0.55% on the day.

Last week, the BTr raised P20 billion as planned from the T-bills it auctioned off as total bids reached P76.445 billion or almost four times as much as the amount on offer.

The Treasury borrowed the programmed P6.5 billion via the 91-day T-bills as tenders for the tenor reached P24.37 billion. The average rate for the three-month paper eased by 18.4 bps to 5.196% from the previous week, with accepted yields ranging from 5.15% to 5.248%.

The government also fully awarded P6.5 billion in 182-day securities, with bids reaching P26.245 billion. The average rate of the six-month debt was down by 47.5 bps to 5.005%. Accepted bid yields were at 5% to 5.02%

The Treasury likewise raised P7 billion as planned via the 364-day debt as demand reached P25.83 billion. The average rate of the one-year debt fell by 9.6 bps to 5.487% from last week, with accepted rates at 5.4% to 5.525%.

The BTr plans to borrow P145 billion from the domestic market in October, or P100 billion via T-bills and P45 billion through Treasury bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of economic output this year. — A.M.C. Sy with Reuters

USDA expects PHL raw sugar output to fall 3.6% this year

PHILSTAR FILE PHOTO

THE US Department of Agriculture (USDA) said Philippine raw sugar production is expected to decline 3.6% to 1.85 million metric tons (MMT) during the 2024 to 2025 crop year, with the decline partly offset by increased acreage planted to cane.

In a report, the USDA said the forecast is more bullish than that of the Sugar Regulatory Administration (SRA), which officially estimates output at 1.78 MMT.

The SRA said in Sugar Order (SO) no. 1 that it projects a 7.2% drop in sugar production from the 1.92 MMT reported during the previous crop year, citing crop damage sustained during the dry conditions brought by El Niño.

Sugarcane planting normally starts in October and ends in May.

The USDA on the other hand said that the expansion of acreage and a less severe El Niño than usual underpinned its own forecast.

The government weather service, known as PAGASA, declared the onset of El Niño in June 2023, bringing below-normal rainfall conditions, dry spells, and droughts. It ended in June.

The USDA added that the increase in Mindanao plantings could boost the area planted to cane to about 389,500 hectares from 388,000 hectares the prior crop year.

“The loss of area in Luzon due to land conversion to residential and commercial purposes will only partly offset area expansion in Mindanao,” it added.

SO 1 designated all sugar production for the 2024-2025 crop year as “B” sugar, for domestic use only.

The US maintained the Philippines’ export quota at 145,235 metric tons raw value of raw cane sugar under the tariff rate quota scheme of the World Trade Organization.

The SRA had earlier allowed the export of 25,000 MT of domestic raw sugar to fulfill the US quota after three years of noncompliance.

The USDA added that expects no further imports of sugar by the Philippines during the 2024-2025 crop year with the government seeking to protect Philippine producers. — Adrian H. Halili

DoE, DENR grant rights to access offshore areas for energy dev’t

INSUNG YOON-UNSPLASH

By Sheldeen Joy Talavera, Reporter

THE GOVERNMENT is seeking to fast-track the development of offshore wind projects in the Philippines, aiming to deliver power from these by 2028 by further streamlining permit processing.

The Department of Energy (DoE) and the Department of Environment and Natural Resources (DENR) signed a memorandum of agreement (MoA) on Friday last week, allowing access to offshore and auxiliary areas.

The agencies are granting rights to offshore areas covered by offshore wind energy service contracts, including auxiliary areas, to accelerate the exploration, utilization, and development of the projects, the DoE said in a statement over the weekend.

Under the agreement, developers with contracts will have access to the areas during the exploration, development, and commercial development phases of the projects, subject to necessary DENR requirements.

The DoE will provide the DENR with a list of identified offshore wind projects within 30 days after the execution of the agreement.

It noted that the list will be regularly updated, in collaboration with the DENR, to reflect new offshore wind service contracts and development activities.

The DENR has the right to impose additional conditions or deny access altogether if an area falls within an environmentally critical zone or is subject to prior vested rights, the DoE said.

“This landmark agreement streamlines the process of exploring, utilizing, and developing offshore wind projects, while ensuring that environmental safeguards are in place at every stage,” the agency said.

Under the current system, renewable energy projects are required to secure various compliances with the DENR, such as foreshore lease agreements, forest land use agreements, and miscellaneous lease agreements, before proceeding with exploration and development.

However, with the agreement, offshore wind energy service contracts now provide sufficient authority to advance these projects without needing separate agreements.

“This MoA is a crucial step in realizing the goal of the administration of President Ferdinand Marcos Jr. to deliver the first kilowatt-hours from offshore wind projects by 2028,” Energy Secretary Raphael P.M. Lotilla said.

“By streamlining the process for accessing critical areas, we are paving the way for a rapid and responsible rollout of offshore wind projects, which will contribute significantly to our clean energy transition,” he added.

While the Philippines is seizing opportunities that renewable energy can provide, DENR Secretary Maria Antonia Yulo-Loyzaga said the country “must also remain vigilant in addressing any unintended consequences on our ecosystems.”

“The exploration, development, and utilization of offshore wind resources have to be approached with care to protect our marine, terrestrial, and socio-economic environments as well,” she said in her speech.

The DoE has already awarded 92 offshore wind energy service contracts to 38 renewable energy developers with a total potential capacity of 66.101 gigawatts.

Last month, the DoE said that the Philippine Ports Authority (PPA) had initiated immediate steps to repurpose three priority ports to fulfill the operational requirements of offshore wind projects.

The DoE identified the Port of Currimao in Ilocos Norte, Port of Batangas in Sta. Clara, Batangas City, and Port of Jose Panganiban in Camarines Norte, given their proximity to high-potential offshore wind energy service contracts.

Energy Undersecretary Sharon S. Garin said the government will be able to determine the investment needed for the repurposing of ports after the completion of the asset evaluation.

“It won’t be a one-year project, probably a two-year project or multi-year,” she said.

Honoring Dodong Nemenzo

FORMER UP PRESIDENT FRANCISCO NEMENZO, JR.

“Dodong Nemenzo has been confined at the ICU. Are you aware of it?”

That was the first thing that my 94-year-old mother worriedly told me when I visited her more than a week ago.

It surprised me that my Mom learned about Dodong’s confinement at the ICU. (The latest development is that Dodong has been transferred to a regular room, but his state of health remains a cause of concern.) Although my mom knows Dodong and wife Princess, the last time they probably met was nine years ago, upon the passing of my wife Mae in 2015. My mom is fond of Dodong and Princess. She has not forgotten their visiting my dad’s wake and how they condoled with her.

I asked myself: How could my Mom have obtained the information when the Nemenzo family has avoided making any public announcement regarding Dodong’s health? Earlier, I was informed privately by Fidel (Dodong’s son) and wife Marivic about their father’s critical condition.

So, I asked my Mom where she got the information on Dodong. She said she was watching a public affairs program on TV where a guest on political affairs, in Marites (gossipy) fashion, broke the news of Dodong’s ICU confinement. The news anchor, according to my Mom, shifted the conversation to Dodong and family. The anchor even went off-topic and expressed his high opinion of Fidel, the son of Dodong, for his intelligence; for being a mathematician, a full professor, and a Doctor of Science; and for being a fraternity brod. (Dodong, Fidel, and the news anchor belong to Pan Xenia.)

I then called Fidel and narrated to him what my mother told me. Only then did Fidel become aware of the TV announcement regarding his dad’s health.

Our fervent hope or desire is for Dodong to recover and heal.

He is a survivor. He had experienced staring death in the face, but death blinked first.

In the years of living dangerously, especially in the early years of martial law, Dodong was in constant danger of being killed by the State’s merciless forces. Worse, because of inner-party struggles or antagonisms within the revolutionary movement, one faction attempted to physically eliminate Dodong (and the group succeeded in killing Dodong’s younger comrades).

And about 10 years ago, Dodong had bacterial meningitis, which caused him to become temporarily unconscious. It was a long ordeal that Dodong miraculously survived.

There is reason for Dodong to keep the will to live. A few months from now — to be exact, on Feb. 5, 2025 — Dodong will turn 90 years old. It will be a celebratory year.

Two books about Dodong and by Dodong will be published soon, on the occasion of his 90th birth anniversary. The first book is about Dodong’s life as a professor, a political scientist, and a University of the Philippines (UP) President. The second is a volume consisting of his works as a Marxist, a democrat, and a revolutionary.

Also anticipated, though still on the drawing board, is a collection of Dodong’s writings about his personal life — especially his being a husband to Princess; a father to Fidel, Leonid, and Lian; a grandfather to six apos; and a friend, neighbor, and mentor to many.

I suspect what society as a whole will remember most about Dodong is his illustrious life as an academic or as a revolutionary or as both.

Yet, Dodong has multiple identities, not just being an esteemed political scientist and University President or a freedom fighter and inveterate Marxist.

He is a fratman. Among his brothers in Pan Xenia are those associated with big business and those responsible for the economic collapse during the Marcos dictatorship (specifically Cesar Virata and Gerardo Sicat).

He is a Cebuano whom Tagalogs and Ilonggos treat as inferior. He and his cohorts from Cebu, like former UP President Emanuel V. Soriano and former Supreme Court Chief Justice Jun Davide (who incidentally is the brother-in-law of my mom’s sister Paula Davide), were on the same boat that transported them from Cebu to Manila as they all entered UP. They found solidarity and friendship in being Cebuano as they adjusted to a new but distant and intimidating environment that was Manila. And even as they later pursued different professional and political paths, their bond has lasted.

Society might perceive a dyed-in-the-wool Marxist like Dodong as doctrinaire and illiberal. But that ain’t him.

Being a Marxist and being a liberal are not binary; they can go together. Dodong is the personification of being a liberal and being a Marxist,

How can it be explained that Dodong, a thorough believer of scientific materialism and Fr. Ben Nebres, the Jesuit who seeks God in all things, are close friends? They are one in using the scientific method and obtaining scientific knowledge, advancing education. And they both have the calling of being a “man for others” (which can be done in different ways).

Or how come Dodong, the unarmed communist, is a friend of an anti-communist and militarist like Gringo Honasan? Well, they had a common enemy that was the Marcos dictatorship.

And even at the height of the anti-dictatorship struggle when he co-founded the socialist organization named BISIG, he likewise became a leader of the UP chapter of Kaakbay, a nationalist and democratic but non-socialist group that the late Ka Pepe Diokno established. It might seem odd that socialists like Dodong and Randy and Karina David would form Kaakbay’s UP chapter (My late mom-in-law Cil Manalang was likewise a proud member of UP Kaakbay.)

Also an oddity was the fact that UP Kaakbay attracted non-UP elite like the family that owned a well-established commercial bank.

The student activists among the Baby Boomers and the Gen X generation remember Dodong for marching shoulder-to-shoulder with them in protest actions. Moreover, as a University official, first as dean of the College of Arts and Sciences and later as University President, Dodong gave succor and protection to the protesting students.

As said by my activist friend Rene Raya: “Dodong exemplified a strong and principled defiance of dictatorial rule which he vehemently opposed in words and actions. Even at the height of martial law, I remember him continuing to lecture on Marxism, academic freedom, and student power. He stood on the side of the students rallying for student rights and against militarization.”

Dodong recalled to me an incident, many years after it had happened, that I had likewise forgotten.

This was circa 1977, at the time that the student movement was resurgent. The UP students were stretching the limits of protest actions, and student boycotts became frequent. He recollected that he requested me to convince protestors to take prudent action. He approached me, for I was then an official of the Committee on Student Affairs, which then acted as a quasi-student council. He told me that he received a phone call from General Prospero Olivas, head of the notorious Philippine Constabulary Metropolitan Command (Metrocom). General Olivas warned him that once the students exited the Arts and Sciences (AS) Building and marched on the streets, his troops would “break the skulls” of the protestors, Dodong did not want a tragedy to happen. He assured us though that he would allow the protests to continue for as long as we desired inside the AS building. But he did not want students being bloodied.

Being a stubborn and angry young activist that did not fear confrontation with the enemy, I initially resisted Dodong’s request. But ultimately, Dodong’s solicitude and persuasion prevailed.

When Dodong retold this story, I realized that he was no longer acting simply as a comrade but as a wise man trying to alter our infantile thinking and behavior, and, more importantly, as a father, expressing care and love for his children.

And so, when we celebrate Dodong’s 90th birthday in February 2025, we will celebrate not only his multi-faceted accomplishments. We will both be reaffirming our love for one another.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

Paris Fashion Week:  Flounces and layers at Louis Vuitton, tweed and birdcages at Chanel, recycled knit at Stella McCartney

PARIS — Louis Vuitton womenswear designer Nicolas Ghesquiere showed a lineup of layered looks with short, flouncy skirts and puffy-sleeved jackets for the label’s spring-summer outing last Tuesday, the last day of Paris Fashion Week.

Set up in a temporary venue in a courtyard of the Louvre Museum, the runway was fashioned out of a mishmash of trunk facades. It ran through the center of the space, and marked the start of the show by rising up into a podium. (See the show here: https://tinyurl.com/yc4dvu22 )

Out came the models, parading tops that were cinched at the waist, their long necklaces and loosely fastened neckties swinging.

The pace quickened through the show, even as the silhouettes grew longer to include robe-like overcoats that swept the floor and loose, bohemian trousers.

Handbags came in all shapes and sizes, with some models carrying more than one, stacked like jewelry.

Shoe styles nodded to the brand’s leatherworking background, with laid-back flats made of fat, mismatching leather straps while dressy heels featured patches of leather with a twist in the middle.

Sitting in the front row, LVMH Chairman and CEO Bernard Arnault broke into a grin when Ghesquiere bounced down the runway for his bow at the end of the show. Sitting next to him, French first lady Brigitte Macron, who is known to wear Vuitton for official outings, blew the designer a kiss.

CHANEL
Chanel took to the Grand Palais for its spring-summer runway show last Tuesday, marking its return to the soaring glass and steel monument with an eclectic collection of sparkly tweed ensembles and a singing performance from actor Riley Keough. (See the show here: https://tinyurl.com/mpsresbk)

Guests turned out in droves, emerging from a parade of black town cars, decked out head-to-toe in Chanel. After pausing for photos, they headed in through the grand entrance, freshly named after the label’s founder Gabrielle Chanel.

The site of late Chanel designer Karl Lagerfeld’s famously dramatic fashion show sets over the years, the building was closed for renovations in 2021 — funded by the brand — before reopening for the Paris Olympics fencing competition this summer.

For Tuesday’s runway outing, a giant bird cage sat in the center of the space, nodding to an advertisement for Chanel perfume in the 1990s starring Vanessa Paradis.

Models marched through the space, parading a range of tweed looks, including slit mini-skirts, loose trousers and dresses, amply decorated with light-weight capes, fringes, and bows. Some had tufts of featherlike accessories on the sides of their sunglasses, others clutched handbags resembling bird cages.

Keough was dressed all in black, with an airy cape and silver platform heels. She entered the set singing Prince’s 1984 hit “When Doves Cry” and was lifted on a swing high enough for models to walk underneath for the finale.

The collection was designed by Chanel’s studios as it awaits a new designer following the departure of Virginie Viard in June.

STELLA MCCARTNEY
Stella McCartney took to a market street on the Left Bank of Paris for her spring summer runway show last Monday, sending models out in airy dresses, boxy tailored suits, and fluffy, cloud-like knits made from recycled nylon.

Models marched down the pavement on pointy heels, backless flats, and a new, high top Adidas sneaker, the trains of their wispy dresses floating behind them, many with their backs mostly bare.

“It’s about having a lightness of touch, having that femininity,” she said after the show, speaking to journalists after greeting guests who included Greta Gerwig, Natalie Portman, and James McCartney.

“And then, you know, having the man in there — the masculinity,” she added, referring to the manly suits, which were loosely cut, often worn without a top.

The label calculated the percentage of materials in the show that it deemed sustainable. These included a silver handbag made from a mycelium leather alternative and chunky jewelry representing doves carved from gold and silver extracted from electronics and medical waste.

The figure was 91%,  McCartney said, noting the remaining 9% was likely metals like brass and belt buckles.

“Ask any other fashion house what [their] sustainability percent this week is and they won’t even know what you’re asking,” she said.

Birds were another theme; the show’s soundtrack featured Prince’s 1980s hit “When doves cry” interpreted by singer Patti Smith.

“I’m trying to tell everyone that those feathers you’re seeing on the runway — all is pointless,” said McCartney. — Reuters

Charge to experience

From left are BYD Philippines (importer) Country Head Aiffy Liu; BYD Cars Philippines (distributor) Managing Director Bob Palanca; BYD-Iconic Dealership, Inc. Chief Operating Officer Dennis Salvador; BYD Experience Hub’s first official buyer Dra. Edessa Dipasupil; ACMobility President and CEO Jaime Alfonso Zobel de Ayala; and ACMobility Head of Auto Retail and Distribution Antonio Zara III. — PHOTO BY ANGEL RIVERO

This BYD Cars hub is a fitting primer in electric mobility

By Angel Rivero

YES, IT’S ALREADY been a full year since ACMobility — the Ayala Group’s end-to-end mobility solutions provider — started its partnership with BYD Cars. We have watched its steady growth with the introduction of noteworthy, electrified vehicles that are clearly becoming increasingly popular among motorists (with the latest product being the affordable BYD Seagull EV).

And naturally, to match all this positive momentum, ACMobility and BYD Cars Philippines launched the nation’s first so-called BYD Experience Hub — the brand’s one-stop shop to explore everything that is BYD in the Philippines. It is located right inside the mall of Glorietta 1 (which frankly, seems to be the current trend as I have seen newer car dealerships popping left and right inside malls, in neighboring countries such as China and Thailand), just before the mall exit that fronts SM Makati. The hub is operated by Iconic Dealership, Inc., the retail arm of ACMobility.

“To celebrate our first year with BYD Car Philippines, we mark this milestone by bringing the future of mobility closer to Filipinos through the BYD Experience Hub,” shared ACMobility’s Chief Executive Officer Jaime Alfonso Zobel de Ayala during his speech at the grand opening. He added, “Every effort is a step closer to achieving our goal to build and sustain a better future for the next generation. As an innovative retail experience that demonstrates how sustainable mobility can uplift the lives of our customers, the hub will not only showcase our cutting-edge vehicles and technology, but will also serve as a gateway to explore the opportunities that come with an electrified future.”

It’s branded as an “experience hub” and not just your regular car showroom because the space has interactive things to offer for any curious visitor. Among them are guided tours, live BYD technology demonstrations to give a better understanding of how the brand’s products work, and technical conversations with expert staff. There are also displays that provide useful data comparing the efficiency of EVs with that of ICE (internal combustion engine) vehicles. But of course, the main goal of the hub is to showcase BYD’s latest vehicles alongside interactive displays that describe their key features, and even provide spec comparisons among the different models.

Test drives and other experiential opportunities with the products are most available at the BYD Experience Hub. “(It) is a novel way for us to reach out and explain to more people the advantages and benefits of electric mobility,” explained Iconic Dealership, Inc. (IDI) Chief Operating Officer Dennis Salvador. He continued, “As the BYD brand grows, IDI is always on the lookout for more opportunities to connect with our customers. The BYD Experience Hub provides a differentiated automotive experience in that mallgoers can learn about BYD products and services, and even avail of test drives on the spot. This new center provides an interactive touchpoint for mallgoers to understand how electric vehicles and the BYD brand can support their evolving lifestyle.”

Another brain-picking feature of the BYD Experience Hub in Glorietta is its display of its proprietary Blade Battery, which is at the core of what differentiates BYD from its EV competitors. BYD’s battery technology is often hailed as one of the best-performing in the industry… with top-notch efficiency, impressive durability and, most of all, proven safety.

Future-forward customers can also learn more about the simplicity of charging an EV via a practical and on-site demonstration of how it is done. They are also able to share data about existing charging infrastructure in the Philippines in order to help reduce range anxiety.

As a matter of fact, the top four new energy vehicles (NEVs) sold here from January to August 2024 are all BYD vehicles. BYD is currently the number-one NEV brand in the country, with an impressive market share of 70.5%. It is also the number-one BEV (battery electric vehicle) brand with a 66% year-to-date market share. That’s great news for a brand that only recently underwent a change of local management.

BYD Cars Philippines continues to expand its dealership network and has set a goal to have 25 dealerships by the end of the year. Eight more dealerships are expected to open by early 2025.

Like I said, that’s great momentum for BYD Philippines. Here’s to seeing more affordable EVs on our roads!

BSP reminds financial firms to comply with consumer protection standards

BANGKO SENTRAL NG PILIPINAS

THE BANGKO SENTRAL ng Pilipinas (BSP) has reminded its supervised institutions (BSIs) to comply with standards to protect consumers from fraudulent or unauthorized transactions and address related concerns promptly.

In a memorandum, the central bank advised its BSIs to “ensure full compliance with the Consumer Protection Standard of Conduct on the Protection of Consumer Assets Against Fraud and Misuse.”

“To mitigate the risks of fraud and misuse faced by financial consumers, BSIs, to the extent allowed by existing laws, rules, and regulations, must provide necessary assistance, including the provision of relevant information relating to fraudulent or unauthorized transactions,” it said.

“Further, BSIs must provide clear information on the actions taken or to be taken on a complaint, inquiry or request from a financial consumer involving fraudulent or unauthorized transactions.”

The central bank said that BSIs must “adequately inform financial consumers of their responsibilities, as users of financial products and services and provide timely transaction notifications which are essential in curtailing and detecting fraudulent or unauthorized transactions.”

Claims must be resolved in a fair, reasonable, timely and transparent manner, it said.

“Fraud-related concerns should be given utmost priority and should be resolved within a reasonable time commensurate to the complexity of the circumstances,” it added.

Consumers must also be provided with free and active reporting channels that must be available on a 24/7 basis, the BSP said. These can be in the form of a phone line, mobile number, online portal, e-mail address, chatbot, instant messaging or other communication channels.

For unauthorized transactions, concerns or disputes must be filed with the originating financial institution (OFI).

“Upon receipt of fund transfer disputes or alleged unauthorized transactions, the OFI shall immediately inform and provide relevant details to the receiving financial institution (RFI),” the BSP said.

Pending the result of an investigation of the dispute or allegations, OFIs and RFIs may implement measures to protect financial consumers, such as suspending the imposition of interest, fees or charges, if applicable and holding the disputed funds if still intact.

Other measures include providing reasonable accommodations to the financial consumer and performing other necessary actions to protect the financial consumers’ interest and assets, such as account blocking.

BSIs must inform the client formally of the result within three banking days from the conclusion of the investigation, the central bank said.

If the transaction is found unauthorized, the BSI must correct or reverse the transaction including any related interest, charges or fees and make permanent the provisionally-credited amount, if any.

The memorandum also noted that the recent Anti-Financial Account Scamming Act now allows BSIs to temporarily hold the funds subject of a disputed transaction for a period not exceeding 30 calendar days under certain grounds. — Luisa Maria Jacinta C. Jocson

Sugar rush leads world food prices to jump in September, FAO says

REUTERS

ROME — The United Nations’  (UN) world food price index jumped in September, data released on Friday showed, posting its biggest gain in 18 months on the back of surging sugar prices.

The price index, compiled by the UN Food and Agriculture Organization (FAO) to track the most globally traded food commodities, rose to 124.4 points in last month from 120.7 in August, the highest level since July 2023 and up 2.1% on the year.

The sugar index soared 10.4% month on month, driven by worsening crop prospects in Brazil and concerns that India’s decision to lift restrictions on sugarcane use for ethanol production may affect the country’s export availabilities, FAO said.

The cereal price index increased 3%, led by higher wheat and maize export prices, while rice prices declined 0.7%. Vegetable oil prices gained 4.6% on the month, with higher quotations registered across the board for palm, soy, sunflower, and rapeseed oils.

Dairy prices rose 3.8% in September, with quotations up for whole milk powder, skim milk powder, butter and cheese, while meat prices edged up 0.4%.

In a separate report, the FAO marginally increased its forecast for global cereal production in 2024 to 2.853 billion tons from a previous 2.851 billion tons.

The increase reflected upward revisions to rice and wheat outputs that outweighed a minor reduction in global coarse grains production, FAO said.

World cereal utilization looked set to increase 12.4 million tons in 2024/2025 to 2.853 billion tons.

By contrast, the agency cut its forecast for world cereal stocks at the close of the 2025 season by 1.7 million tons to 888.1 million. — Reuters

ComClark eyes PHL air traffic control

FREEPIK

By Ashley Erika O. Jose, Reporter

UY-LED ComClark Network and Technology Corp. has submitted an unsolicited proposal to manage the country’s air navigation, traffic, and control system, its chief executive officer (CEO) said.

“Yes, we’ve submitted a proposal to help the government in improving our air traffic systems,” ComClark CEO Dennis Anthony H. Uy said in a statement on Sunday.

Mr. Uy said the company, together with its “international partners,” has the technology, capability, and experience to ensure that the Philippines’ air transport system is safe and at par with other countries.

“It has to be evaluated, but nothing is final at the moment because the proposal is unsolicited,” Civil Aviation Authority of the Philippines (CAAP) Director General Manuel Antonio L. Tamayo told reporters last week.

Transportation Undersecretary for Aviation and Airports Roberto C.O. Lim said that the Department of Transportation is considering either creating an independent agency or forming a joint venture with government corporations under a public-private partnership (PPP) scheme to privately manage and operate the Philippines’ air traffic management system.

“[We want an entity] to privately manage and operate the country’s air traffic management system while at the same time satisfying the national security concerns,” Mr. Lim said during the European Chamber of Commerce of the Philippines Aviation Summit 2024 last week.

PPP Center Executive Director Cynthia C. Hernandez said the Air Traffic Services-Air Navigation Services project is also being evaluated for a solicited project.

Ms. Hernandez said this project involves the financing, design, construction, operations, and maintenance of air traffic services and air navigation services of the country’s airspace and international airspace managed by the Philippines.

“Although there’s an unsolicited proposal for the air traffic services-air navigation services project,” she added.

Mr. Lim said that the World Bank and the International Finance Corp. (IFC) are currently conducting a study on the management of the country’s air traffic control.

“We are hitting two birds with one stone. We are trying to decongest CAAP with the burden of operating a facility. As you have seen, there is an inherent conflict in the function of CAAP being a regulator and operator of airports and public facilities,” he said.

Allowing a private company or creating a separate entity to manage and control the country’s air traffic control system will relieve CAAP of its conflicting role, Mr. Lim said.

“It could be by putting it in another government authority or corporation, or it could be a joint venture between government and the private sector,” he added.

Further, Mr. Lim said the DoTr is expecting the World Bank and IFC to conclude their study on how to proceed with the management of air traffic services by next year.

Asked whether there is a local company qualified to manage the air traffic control system, Mr. Lim said: “There is no local company to our knowledge that has experience of air traffic management. So, you’d have to look outside, team up with a local company. It could be a telecom company.”

The DoTr wants CAAP to focus solely on being a regulator, Mr. Lim said, noting that currently, CAAP is responsible for both operating airports and managing air traffic control.

“We have identified these three areas that are inherently conflicting roles in one agency,” Mr. Lim said.

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