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The Bangsamoro

By Benjamin R. Punongbayan

THE NEW autonomous region in Muslim Mindanao, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), would have been inaugurated by the time this commentary gets into print. I am happy about this development, and I hope it will usher in a much more successful autonomous Muslim region than its predecessor had been. The entire country needs and, I am sure, wants it to be so.

To be sure, there are a lot of difficult problems and challenges that BARMM (Bangsamoro) will face and it will deal with all these practically entirely by itself. In a lunch meeting several days ago at the American Chamber of Commerce, the guest speaker, the well-known Amina Rasul-Bernardo, presented, among others, a list of these difficult challenges. Among these problems, I thought the most fundamental is the current extent of illiteracy in the region — about a third of the entire population cannot read and write. That, by itself, is a humongous restraining factor in trying to drive and achieve a reasonable rate and pace of economic, social, and political developments in the region over the near term.

The other great obstacle is the probable continuing occurrence of violence, especially of the kind induced by foreign elements who may likely try to exploit the current weakness and instability in the region. Of course, the national government will be the spearhead in dealing with this problem, but occurrences of violence will certainly disrupt or even set back development efforts in the region. Clearly, our Bangsamoro brothers and sisters will have their hands full. They need all the help the rest of us Filipinos can give them.

On the brighter side, Bangsamoro got a good break in getting its allocation of funds from the national government. Of course, any amount of funds it receives may still not be enough to meet the funding requirements of the activities Bangsamoro wants to do right away. But I thought Bangsamoro got a good deal, considering that the national government itself is very much wanting in financial resources and there are so many competing uses for the available funds.

Bangsamoro will keep all the local taxes it itself imposes, including some national taxes collected in its jurisdiction but now wholly ceded to the region (capital gains tax, donors tax, etc.).

From the national tax collections, the biggest item the region will receive from the national government is an annual block grant computed at 5% of all BIR and Customs collections after deducting all local government unit (LGU) allotments, determined based on actual amounts three years earlier. After 20 years, certain deductions will be made from the annual block grant. However, the total of these deductions would not be substantial. In addition, Bangsamoro will also keep 100% of all national taxes collected in its jurisdiction for the first 10 years, reduced to 75% thereafter. Income from exploitation of natural resources within the jurisdiction of the region accrues to it in full, except for income from fossil fuel and uranium, which goes to the national government.

To get an idea of the magnitude of the funds going to Bangsamoro from the national government, let us translate the foregoing provisions to estimated annual amounts for the first year of its operation while in transition. The block grant would amount to P77.3 billion for the first year and the BIR tax collections from the region based on the BIR collections budget for 2019 amount to P4.0 billion (not including the BIR collections budget for Basilan, which does not show a breakdown between Basilan City and the rest of the island); or a total of P81.3 billion for the first year. (Note that this total does not include any Customs collections budget for 2019 for the sub-ports located in Bangsamoro as these are not yet obtainable.) The overall effect of all the omissions mentioned above would not be significant and, had these been included, the result would further support the conclusion in this commentary with regard to the Bangsamoro funds coming from the national government.

To appreciate the significance of this estimated annual amount of P81.3 billion fund allocation, it is equivalent to P19.7 thousand per person in Bangsamoro. In comparison, the 2019 internal revenue allotments (IRA) budget for all LGUs in the country, including Bangsamoro’s predecessor, adjusted to include the share of LGUs in Customs collections, translates to P6.8 thousand per capita. Therefore, on a per capita basis, the allotment from national taxes of Bangsamoro is practically triple that of the LGUs in the rest of the country. (The 2019 IRA budget appears to still not include the share of LGUs in Customs collections, as was decided by the Supreme Court last year; the adjustment was made to make the numbers comparable. The population figures used in the foregoing calculations were based on the total population forecast for 2019, and was extrapolated to obtain the equivalent 2019 population forecast for Bangsamoro, including Cotabato City, based on the 2010 Census.)

On the basis of fund availability, therefore, Bangsamoro has a good start indeed.

I thought I would express a few observations regarding the government structure of BARMM. The overall structure is a parliamentary system, which fuses the executive function with the legislative. The legislative body, the Parliament, stands alone and does not have any other legislative chamber that works with it. The fusion of the executive and legislative functions is a good choice, as it may bring more effective results; legislation and execution can be done much more quickly as compared to that of the national government, where there is a separation of such powers. However, I feel that a one-chamber legislature fused with the executive may tend to lead to abuse of power. It may be more effective to add another legislative chamber, call it a senate, which participates in the approval of legislation and, therefore, provides a check on the main legislative body. This is usually the structure of most parliamentary systems around the world. There are a number of ways of how a second chamber in a parliamentary system participates in the legislation process. One of these may fit the cultural, social, and political settings of Bangsamoro.

There is another good feature of the Bangsamoro Parliament. Fifty percent of the members of Parliament are elected through political party proportional representation. This will strengthen the political parties in the region and avoid a political circus — something that the national government badly needs.

Part of the Bangsamoro government structure is the position of a ceremonial head of government that is given the title of Wali. The Wali is chosen by consensus by Parliament and has a regular term of six years. Not knowing any negative impression of the present Sultan of Sulu by the people of Bangsamoro, I thought the Sultan of Sulu would have been a good choice as Wali and which should have been provided in the BARMM organic law. The Sultan as Wali can provide political benefits in two ways — as a factor and symbol of unity among the Bangsamoro people and as an excellent posturing with regard to the Philippine claim of Sabah, assuming that there is a continuing desire to pursue the claim. I realize that there could be an obstacle to this scenario. There seems to be tension in Bangsamoro between its two major ethnic groups. I thought, though, that the group now in political power may create a similar position as that of the Sultan of Sulu and that these two persons can rotate as Wali in a way similar to the rotation of the King of Malaysia among the Malaysian Sultans.

It is now clear that there is a problem with the integration of the Sulu region into Bangsamoro. This problem could be both political and ethnic in nature and which should have been anticipated. Nevertheless, the solution that is being proposed is to restructure the entire Philippines into federalism to accommodate the Sulu region as a separate state. I thought this proposed solution is like using a sledgehammer to drive a small nail. I am not trivializing the issue; not at all. On the contrary, I believe it is a very serious one. What I mean is that such a solution is forcefully drawing all 108 million Filipinos into a minimally-analyzed adaptability of an untried structure to deal with a problem involving about 1.3 million of our brothers and sisters. It is a horrible way of solving a problem, no matter how serious the problem is.

We need a solution that is dedicated to the problem. That solution is right before us to take and is much easier to implement. All that is needed is to split the present Bangsamoro into two parts, into two mirror-image-like autonomous Muslim regions: the mainland part and the Sulu archipelago part. I realize that such a step requires a constitutional amendment and a referendum involving the entire Filipino nation. But so with the so-called federalism solution.

I assume that there is no problem between the two major ethnic groups with splitting Bangsamoro into two parts, because that is what it will be under the so-called federalism solution. Let us do it then. Let us amend the Constitution accordingly by ConAss and hold a referendum — but for that proposal only and for no additional other. Let us not overcomplicate things.

The Philippines is beset by too many serious problems. At least, we seem to be getting one fixed — Muslim Mindanao.

Let us all wish our brothers and sisters in Bangsamoro well in their difficult endeavors!

 

Benjamin R. Punongbayan is the founder of Punongbayan & Araullo, one of the Philippines’ leading auditing firms.

ben.buklod@yahoo.com

First 3 PPP festival films identified

THE Film Development Council of the Philippines (FDCP) has announced the first three entries to this year’s Pista ng Pelikulang Pilipino (PPP), which will be held from Sept. 13 to 19 in cinemas nationwide.

The first three films selected are: Cuddle Weather by Rod Marmol, about two sex workers forming a relationship as “cuddle partners” only to realize they want something more; LSS (Last Song Syndrome) by Jade Castro, a story about two people finding themselves in a series of almost-but-not-quite romantic encounters as they follow fast-rising indie-folk band, Ben&Ben; and, Three Panti Sisters by Perci Intalan, the story of three gay sons who are called back by their estranged and terminally ill father and told that they can have their part of the P300-million inheritance in exchange for each of them giving him a grandchild.

The other five entries will be announced in June.

The PPP, considered the flagship program of the FDCP is a week-long celebration screening “quality Filipino genre films.” This year’s festival is also part of Sandaan celebration of 100 years of Philippine cinema.

Jose Nepomuceno’s 1919 movie Dalagang Bukid is said to be the first Filipino film ever made.

FILM GRANT
In all, the annual film festival will have eight entries — three of which are in an “advanced stage of development or production,” according to a press release, and five more films which have been finished or are in post-production are set to have their Philippine premiere in the festival. Each entry will be given a co-production and marketing fund of P2 million which includes production equipment worth P1 million.

Last year, only select entries were given a chance to apply for a marketing and distribution grant from the FDCP, but this year, all entries will be given a grant.

“One of the changes we introduced in this year’s PPP was our method of selection. After last year’s run, we wanted this year’s installment to be more inclusive,” Mary Liza Diño-Seguerra, FDCP chairman and CEO, said in vernacular during a press conference on March 28 in Gloria Maris restaurant in Cubao, Quezon City, as streamed on the festival’s Facebook page.

The changes, she explained, were made after “numerous consultations” with film producers in order to see how the festival “can help give them a platform to reach a wider audience.”

“At the end of the day, PPP is not just a celebration of Philippine cinema,” she said.

COMMERCIAL RIGHTS
Aside from the co-production fund, Ms. Diño-Seguerra also announced that, unlike other film festivals, the FDCP is giving the full commercial rights of the film to the production company which made it.

“We’re not going to take any rights [away] from them, this is the full support of the FDCP so we can help them address [not having] marketing and distribution funds for their films,” she explained.

Another change they implemented with this year’s run is giving student ticket discounts because “the market of PPP are the students,” said Ms. Diño-Seguerra, and lower cinema admission rates for provincial cinemas. — Zsarlene B. Chua

Entertainment, announcements to be shown on in-train system

IT’s all systems go as PHAR Philippines launches TUBE, an in-transit media platform which offers GPS-triggered passenger information and exclusive entertainment content, in three of Metro Manila’s train systems: LRT-1, LRT-2, and MRT-3.

“The LRT-2 [system] has been operational for about a year but we’ve done some tweaking in terms of the hardware as well as the software and the new units are [now] up in the MRT-3 trains,” Prem Bhatia, managing director for Asia and CEO of PHAR Partnerships Philippines, told the media during the launch on March 27 at Penthouse 8747 in Makati City.

PHAR Partnerships is an international media and marketing agency specializing in transport and infrastructure and digital media.

Mr. Bhatia added that he expects full installation of units will be completed within the week and shortly after that they will work on installation on the LRT-1 trains. The LRT-1 project will be finished in “early July,” he said.

In all, the company aims to install over 1,000 LED screens on the three train lines, bringing information and entertainment content to the 1.3 million passengers taking the trains every day. Each train car will have “between six to 10 screens,” he said.

Some of the challenges the company addressed when putting up the system was the problems with the GPS signal “because there are parts of Manila which are ‘dark’ (no GPS signal).”

“That’s been technically quite difficult to solve but the part that we’ve spent the most amount of time on in terms of software development is the emergency messaging system,” he said.

The emergency messaging system works whenever a train breaks down (“which happens on occasion,” he said), or the station is overcrowded, or if there’s a weather issue. Mr. Bhatia said they wanted to make sure that they could “inform the passengers within seconds.”

He explained that the alerts will come from the train management which will then be passed on to them and they will then inform the passengers through the screens.

In all, the TUBE system they developed costs north of “P350 million in the development of the software, importing the screens from China, and making it custom made,” said Mr. Bhatia.

Aside from delivering passenger information, TUBE also offers exclusive content from a select roster of online content creators like Michelle Dy (known for creating lifestyle and beauty content), Richie Zamora (known for his food reviews and vlogs), and singer Julz Savard, among others.

PHAR has tapped these content creators to create 60-second videos covering a diverse range of topics including lifestyle, gaming, sports, travel, grooming, and style.

“On average, a commuter spends 60 minutes of their time every day riding the train,” said Mr. Bhatia explaining the need for entertaining content on the service.

He said that half of the content screened on the TUBE will be original and half will be ads, while a part of the screen will be dedicated to important passenger information.

Mr. Bhatia said that the Philippine-made system is starting to gain attention from other countries as well — after officially launching the system, they received “calls from two different governments” asking if they can look into installing the same system in their country’s trains.

“It would be amazing if a Filipino software started powering trains in other countries,” said Mr. Bhatia. — Zsarlene B. Chua

The wide awakening

By Cecile Santillan-Visto

Concert Review
Invitation from Nightmare City in Manila
March 24
SM North EDSA Skydome

Insofar as weird concert titles go, Dreamcatcher’s Invitation from Nightmare City is one of the most unusual. A play of words inspired by the K-pop group’s debut album, Nightmare, and the resulting trilogy following the “dream” concept, the concert series was hardly horrific but was a pleasant showcase of the talent of the all-girl band.

Dreamcatcher members JiU, SuA, Siyeon, Handong, Yoohyeon, Dami, and Gahyeon made sure that the audience was wide awake during the entire two-hour show even as the recurring theme of their songs revolved around sleep, dreams, and everything in between.

It was the group’s first visit Manila and their fans, called Insomnias, were given the opportunity to meet them up close through a fan signing prior to the showcase and a high touch session right after.

The R&B-pop-metal band opened strong with “What,” from the Alone in the City album released in 2018, followed by “Sleep-Walking” from the 2017 Prequel, and “Chase Me,” from Nightmare of the same year. The three-song set somehow demonstrated how the group evolved from newbies (they were still known as MINX before their relaunch two years ago) to the experienced act that they are now.

Although it was not a full house, the fans accompanied Dreamcatcher with loud chants, to the visible delight of the group members. They were surprised that the fans knew the lyrics to their Korean songs.

In return, the girls performed “Wonderland,” “Daydream,” “Goodnight,” and “Lullaby” in their next set with much passion and gusto.

They also had unit performances, which allowed the girls to showcase their skills in smaller groups, starting off with SuA and Yoohyeon’s cover of Charlie Puth’s “Attention.”

Not to be outdone, Siyeon, Handong, and Gahyeon dished out Justin Bieber’s “As Long As You Love Me,” with JiU and Dami rounding up the sub-group presentation with their version of “I Don’t Like It, I Love It,” by Flo Rida.

Their English rendition was far from flawless and needs a lot of work, but they should be lauded for the effort put into the covers.

While sassy and all-attitude in most numbers, Dreamcatcher turned playful during the encore where they sang “And There Was No One Left” and “Wake Up.” They sang 18 songs in all.

Dreamcatcher’s Invitation from Nightmare City in Manila was, by far, the simplest K-pop concert staged in Manila. There were no costume changes — the ladies wore the same black-and-white outfits throughout the show. The stage was bare, save for the stage lights, which unfortunately were often too strong and unflattering. LED screens and even pyrotechnics — which are standard in most Korean concerts — were set aside but more likely due to the Skydome’s relatively small size.

To compensate, producer MyMusicTaste moved the stage closer to the audience so that the fans had a better look at the lovely ladies.

A comparison with the Blackpink, another Korean girl group that was in Manila recently, is also inevitable. Although Dreamcatcher does not have the same jaw-dropping effect as Blackpink yet, the band has its own, less jolting style of entertainment, which their fans loved.

Dreamcatcher came to Manila as there was sufficient clamor from Filipino fans to do so. However, at least for this concert, the crowdsourcing concept fell a bit short. Hundreds of fans who requested that the group come over ended up not going to the concert.

But thumbs-up to Dreamcatcher who nonetheless gave 101% for the supporters who managed to attend. As they have clearly demonstrated that they have the chops sufficient to sustain an Asian tour, their next Philippine stop should be able to draw a bigger crowd.

Energy dep’t issues draft storage rules to support renewables

THE DEPARTMENT of Energy (DoE) has released a draft circular covering the regulation and operation of energy storage systems (ESS) after proponents of the technology raised concerns about the lack of a governing policy framework.

In its draft rules, the DoE said among the reasons for drafting the circular is the continued load dropping in the Visayas power grid because of the intermittency of the operations of variable renewable energy generating plants in the area.

It said the experience in the Visayas resulted in the recognition of energy storage systems as a technology to manage intermittent operations of the variable RE plants’ output, thus ensuring system stability.

The agency also said the circular recognizes that some forms of ESS contain chemicals that are potentially harmful to human life and the environment.

“The recycling and proper disposal of ESS facilities and components shall be under the responsibility of the ESS proponent,” it said.

It said ESS will be one of the key elements in the proposed smart grid roadmap, which the DoE is promulgating to guide the power industry in implementing initiatives to modernize the power system.

It said in other jurisdictions, ESS technologies are applied to serve a variety of functions in the generation, transmission and distribution of electric energy.

The draft circular applies to power industry participants, including power generation companies owning and/or operating ESS.

The covered technologies include battery energy storage system; compressed air energy storage; flywheel energy storage; pumped-storage hydropower; and other emerging technologies that may be identified, qualified, and approved by the DoE as ESS.

The rules are also applicable to customers and end-users owning and/or operating ESS, which include distribution utilities; and directly connected customers.

The circular also applies to qualified third parties; transmission network providers; system operators; market operators; and Philippine Electricity Market Corp.

The DoE is requesting interested parties to submit their comments on the draft department circular by April 5, 2019. It issued the draft on April 1.

On the same day, the DoE announced another international roadshow for its Philippine Conventional Energy Contracting Program (PCECP). It will kick off at the International Road Show for 2019 at the Southeast Asian Petroleum Exploration Society (SEAPEX) Exploration Conference and Farmout Forum in Singapore on April 2-5. These will be followed by roadshows in the United States, Canada, Abu Dhabi, and Argentina.

Energy Secretary Alfonso G. Cusi said: “For an energy-secure future, the DoE is committed to establish a strong ‘Explore, Explore, Explore’ program by harnessing indigenous energy resources. It is urgent that we intensify our exploration and development activities. We need to become energy self-sufficient so we are better protected from international price market volatilities.” — Victor V. Saulon

City of Dreams Manila revenues drop amid VIP market slowdown

THE operator of City of Dreams Manila reported a six percent decline in revenues last year, as the VIP market’s slowdown tempered the growth in the mass gaming segment.

In a disclosure to the stock exchange on Monday, Melco Resorts and Entertainment (Philippines) Corp. said net revenues stood at $612.9 million in 2018, lower than the $649.3 million it booked in 2017.

The VIP gaming segment saw rolling chip volume of $11.097 billion, 3.6% lower year on year. Win rate also improved to 3.2% from 3.1% a year ago.

Mass market table drops reached $787.3 million, 14.6% higher than the $686.9 million posted in 2017. Hold percentage was also higher at 31.7% against 29.6% last year.

For gaming machines, volumes amounted to $3.55 billion, 16.6% higher compared to 2017’s $3.04 billion. Win rate slowed to 5.5% versus 5.8% last year.

As of end-2018, the City of Dreams Manila had an average of 1,708 slot machines, 221 electronic gaming tables, and 300 gaming tables.

Meanwhile, non-gaming revenues were flat at $117.1 million for this year.

Despite the lower net revenues, adjusted earnings before interest, taxation, depreciation, and amortization firmed up 15% to $269.2 million.

“In the Philippines, City of Dreams Manila delivered another solid year underpinned by robust mass gaming revenue growth,” Melco International Development Ltd. Chairman and Chief Executive Officer Lawrence Yau Lung Ho said in a message to shareholders disclosed on the Hong Kong Stock Exchange.

Melco International is the largest shareholder of Melco Resorts & Entertainment Ltd., which in turn is the largest shareholder of MRP.

Melco International said it will continue to expand its premium offerings in the country due to the integrated resort and casino’s stable growth performance alongside the development of more transportation infrastructure projects.

“(T)he Group anticipates continued growth in this market since it is expected that regional and global tourist arrivals, overnight visitors from ASEAN countries and overall gaming activity at our resort in Manila will be further boosted,” the company said.

The City of Dreams Manila is one of three integrated resort and casino complexes inside the Philippine Amusement and Gaming Corp.’s Entertainment City in Parañaque City. It stands alongside Bloomberry Resorts Corp.’s Solaire Resort & Casino and Universal Entertainment Corp.’s Okada Manila.

Trading of shares in MRP are currently suspended as the company has yet to comply with the minimum public ownership rule set by the Securities and Exchange Commission. — Arra B. Francia

AppleOne Properties develops integrated complex in Cebu

By Mark Louis F. Ferrolino
Special Features Writer

LAPU-LAPU CITY — Developer AppleOne Properties, Inc. (API) started the construction of its Mahi project in Cebu, which is envisioned as a lifestyle destination.

The project will stand on a 7,500-square-meter lot in Mactan Export Processing Zone (MEPZ) 1 owned by the Philippine Economic Zone Authority (PEZA) in Lapu-Lapu City.

API has earmarked around P1 billion for the construction of Mahi, where 41% of the space will be used for a hotel and retail area, 30% for information technology (IT) industry, and 29% for common utilities and facilities.

“This development is a proof of our commitment to delivering innovative projects. And by this, we’re raising another game changer with an iconic brand at the heart of Mactan, and contributing to Mactan’s economic progress,” Ray Go Manigsaca, API president and chief executive officer, said during the groundbreaking ceremony for Mahi on March 20.

“In two to three years from now, this area will be a site to behold and a true landmark,” he added.

Mahi will include a five-storey building with two floors of office spaces, three floors of commercial and retail spaces, a function room, and a rooftop bar and restaurant.

The project will also house a 12-storey hotel with 180 rooms to be managed by Marriott International, Inc. It will operate under the brand name “Fairfield by Marriott.”

Steve Baek, senior director of hotel development of Marriott International-Asia Pacific, is optimistic about the hotel’s prospects in Cebu because of its market — a good balance of corporate and leisure travellers.

“When I see the market segment in Cebu, there are a lot operating there — the MICE (Meetings, Incentives, Conventions and Exhibitions) and the leisure — which is actually great for the hotel business,” Mr. Baek told reporters on the sidelines of Mahi’s groundbreaking ceremony.

Marriott International, he said, is looking forward to a successful working relationship with API in more business opportunities.

“API is a very renowned contractor and developer in the market with a great reputation and track record. Marriott International is so glad to have a chance to work with such a great business partner and owner,” Mr. Baek said.

Meanwhile, PEZA Director-General Charito B. Plaza said that Mahi will help modernize the face of Mactan ecozone.

“The Mahi by AppleOne Properties, Inc. is really a welcome venture that will change the face of not just Mactan Economic Zone but Lapu-Lapu City, and a big contribution to our development,” she said in a speech during the event.

Ms. Plaza added that the project is very timely since PEZA is starting to transform economic zones into townships, which will have industrial, commercial, and residential components.

In the years to come, Cebu-based API, according to Mr. Manigsaca, will continue its expansion in the mixed-use market and will bring in more international hotel brands in Cebu to cater to the province’s growing tourism sector.

API’s subsidiary, AppleOne Mactan, Inc., is the developer of the forthcoming five-star Sheraton Cebu Mactan Resort and the first Sheraton-branded residence in Southeast Asia, The Residences at Sheraton Cebu Mactan Resort.

Dumbo reviews suggest live-action remakes don’t always fly

DUMBO, a live-action remake of Walt Disney Co.’s 1941 animated classic, hit theaters Friday, but many reviewers declared the film a snoozer even before it opened.

The picture, about a lovable elephant whose oversize ears allow him to fly, is “abysmally scripted and hamily acted,” according to the Globe and Mail. It’s “ostentatious and overworked,” said Time magazine. “Painfully de-tusked,” the Guardian offered. Overall, just 54% of critics recommended the film, according to Rotten Tomatoes.

The reviews suggest remaking classic animated films using real-life actors and computer-generated characters is far from a sure thing. Some have done spectacularly well, such as 2017’s Beauty and the Beast, which took in $1.26 billion worldwide. Christopher Robin brought in a disappointing $198 million last year. Three more are due out soon: Aladdin in May, The Lion King in July, and Mulan in March 2020.

Disney didn’t immediately respond to requests for comment.

Dumbo had an underwhelming liftoff at the North American box office. The live-action remake debuted with $45 million from 4,259 North American theaters, below expectations heading into the weekend.

While that was easily enough to top the domestic box office, it marked the lowest start among the studio’s recent live-action remakes of Disney classics. To compare, 2017’s Beauty and the Beast debuted with $174 million, 2016’s The Jungle Book opened with $103 million, and 2015’s Cinderella launched with $67 million.

Heading into the weekend, Dumbo was expected to surpass $50 million in its first three days of release. Part of the reason for the softer opening is likely because the original Dumbo cartoon came out 80 years ago, making the lovable elephant seem slightly less relevant than newer classics like Beauty and the Beast and The Jungle Book, which both became huge successes for the studio.

Dumbo carries a $170-million production budget. The high-flying elephant will have to resonate overseas should Dumbo not pick up steam at the domestic box office. The movie launched in most international territories this weekend, amassing $71 million from foreign markets for a global start of $116 million.

Not all reviewers were down on Dumbo, which was directed by Tim Burton, a stylist whose work includes Edward Scissorhands. The Atlantic and Vulture both praised the director’s take on the film, particularly the flight scenes.

Mr. Burton gets credit in part for inspiring Disney’s recent live-action remakes. His 2010 Alice in Wonderland, a reimagining of the 1951 classic, grossed more than $1 billion worldwide.

There are many reasons for Disney to pursue the remake strategy, besides just box-office performance. The Burbank, California-based entertainment giant needs to keep characters such as Cinderella and Snow White fresh in children minds’ because of the roles they play in the company’s theme parks and merchandising business. — Bloomberg/Reuters

Sotto says House members trying to avert budget veto

By Charmaine A. Tadalan
Reporter

SENATE President Vicente C. Sotto III said the House of Representatives is making a “last-ditch effort” to save its post-ratification realignments in the P3.757-trillion national budget from being vetoed.

House appropriations committee chair and Camarines Sur 1st District Rep. Rolando G. Andaya, Jr., on Monday accused the Senate of sabotaging the government’s “Build, Build, Build” program, after reducing the allocation for the Department of Public Works and Highways (DPWH) and the Department of Transportation (DoTr), among other agencies.

“It’s a last-ditch effort to obfuscate the issue and try to prevent the President’s veto of their illegal realignments,” the Senate President told reporters in a phone message on Monday. “Even their colleagues know. No excuses necessary because the President knows everything.”

The budget, ratified on Feb. 8, is awaiting President Rodrigo R. Duterte’s signature after Mr. Sotto on March 26 signed the bill, ending the impasse between both Houses which has stalled budget enactment for the first quarter of 2019.

This delay has prompted the interagency Development Budget Coordination Committee to slash its growth forecast for 2019 gross domestic product (GDP) to 6-7% from 7-8%, while the National Economic and Development Authority projected separately that the full-year GDP growth will decline to 6.1-6.3% if the reenacted 2018 budget remains in force until April.

Mr. Sotto, despite signing the national budget, noted his “reservations” about the post-ratification realignments made by the House, amounting to P95 billion. Of this amount, he said P75 billion has been realigned to programs and projects under the Local Infrastructure Program of the DPWH.

“The House introduced amendments increasing the budget for infrastructure projects without breaching the total amount pegged by the National Expenditure Program,” Mr. Andaya said in a statement on Monday.

“It is the Senate that may find itself liable to accusations of sabotage when it decided, unilaterally, to cut down the allocation for the President’s ‘Build, Build, Build’ Program and other priority projects.”

Mr. Andaya identified, among others, the Senate slashed P5-billion and P11.033 billion from right-of-way projects under the DoTr and the DPWH, respectively; and some P2.5 billion for Foreign Assisted Projects, also under the DPWH.

Meanwhile, conflict rose among House members over the weekend after Camarines Sur 2nd District Rep. Luis Raymund F. Villafuerte, Jr. alleged that P92.3 billion was realigned to districts favored by the current leadership. House Majority Leader Fredenil H. Castro of the 2nd District of Capiz later addressed this in a March 30 statement, saying Mr. Villafuerte is “peddling fake news.”

Senator Panfilo M. Lacson, for his part, told reporters in a phone message: “The infighting brought about by the ‘spoils for the victors’ actually exposed the indiscretions of the House leadership in whimsically realigning pork insertions even after the ratification of the bicam report.”

“On a positive note, this is good for us and the Filipino taxpayers since it could make it easier for Malacañang to discern when the president exercises his line item veto authority,” he added.

AEV prepares P5-B bond issue

ABOITIZ Equity Ventures, Inc. (AEV) will be issuing P5 billion worth of bonds within the first half of this year for debt refinancing.

In a disclosure to the stock exchange on Monday, the listed conglomerate said it has filed the registration statement for the first tranche of the P30-billion bonds under its debt securities program.

The first tranche will consist of P3 billion with an oversubscription option of up to P2 billion. Upon issuance, the bonds will be listed at the Philippine Dealing and Exchange Corp.

“Proceeds from the first tranche of the Bonds will be used as part of the refinancing plan of the medium-term loan of AEV International Pte. Ltd., a wholly owned subsidiary of AEV,” the company said.

AEV International had earlier acquired a loan worth $338 million to finance the acquisition of a 75% equity interest in Gold Coin Management Holdings Ltd. by another AEV subsidiary, Pilmico International Pte. Ltd.

Pilmico International acquired a majority stake in Singapore-based Gold Coin last year, tightening its grip on one of Asia’s largest privately owned agribusiness corporations. It currently operates 20 livestock and aqua feed mills across 11 countries in the Asia-Pacific region.

AEV said it will invest up to $200 million in the next two to three years to further expand Gold Coin’s factories in the region.

BDO Capital & Investment Corp. and First Metro Investment Corp. were tapped to act as the offering’s joint issue managers, joint bookrunners, and joint lead underwriters.

AEV Chief Finance Officer Manuel R. Lozano earlier said that they may issue P10 billion worth of bonds every year, since the shelf registration lasts for three years.

AEV plans to spend P81 billion in capital expenditures this year, 65% higher than its actual spending of P49 billion in 2018. About 63% of this budget will go to power projects, while 37% will be for non-power items.

The company is currently constructing the P12.6-billion Apo Agua bulk water project in Davao City. The project will have the capacity to process 347 million liters of water per day, making it the largest bulk water project in the country. It also comes with a 2.5-megawatt hyroelectric power plant to support its operations.

AEV looks to start operations for the bulk water facility by 2021.

AEV’s net income grew by three percent to P22 billion in 2018, following a 24% increase in revenues to P187 billion.

Shares in AEV jumped 1.44% or 85 centavos to close at P59.80 each at the stock exchange on Monday. — Arra B. Francia

Palay prices continue to drop at farmgate despite El Niño losses

RICE prices continued to decline at farmgate level, the Philippine Statistics Authority (PSA) said, despite mounting losses to domestic production caused by El Niño, ahead of the entry into the market of more foreign rice imported by the private sector.

The average farmgate price of palay, or unmilled rice, dropped for a fourth consecutive week to P18.98 per kilogram (kg) in the third week of March, down 0.26% week-on-week, according to PSA data released on Monday.

The average wholesale price of well-milled rice fell 0.37% week-on-week to P40.66 per kg.

At retail, the average price of well-milled rice fell 0.20% week-on-week to P44.33 per kg.

The average wholesale price of regular-milled rice fell 0.35% week-on-week to P37.18 per kg, while the average retail price fell 0.25% to P40.30.

The average farmgate price of yellow corn grain fell 0.07% week-on-week to P13.83 per kg.

At wholesale, the average price of yellow corn grain rose 0.27% week-on-week to P18.50 per kg. The average retail price rose 0.04% to P24.

The average farmgate price of white corn grain rose 1.14% week-on-week to P15.13 per kg. The average wholesale price rose 2.36% to P22.16.

The average retail price of white corn grain rose 0.70% week-on-week to P28.72 per kg. — Reicelene Joy N. Ignacio

New Spanish tile collection uses inkjet technology

By Vincent Mariel P. Galang
Reporter

CEBU Oversea Hardware Co., Inc. (COHCI) recently introduced its latest tile and bathroom collections at the World Building and Construction Exposition (WORLDBEX) 2019.

Established 60 years ago, the Cebu-based hardware construction and finishing materials supplier has been importing tiles for about 20 years.

Its latest tile collection includes Spanish brand Baldocer, which offers big porcelain tiles called B Plus. This collection utilizes inkjet technology that allows it to put on designs on the tiles. This allowed the company to produce tiles that look like real marble, making it a cheaper alternative. These tiles are now available in variants of 80×160 and 120×120 in the Philippines, which makes it easy to transport.

“Since the digital technology came… and we can print on the tiles any design that is suitable. You can print wood, you can print marble, you can print cement, you can print stones. Everything is printed now, so the beauty of the technology now is to be able to produce marbles since they are extremely expensive,” Oscar Vilar, Asian market export director of Baldocer, told reporters during a media briefing.

Tile alternatives such as vinyl have not affected sales for porcelain and ceramic tiles with this technology.

”As of now it doesn’t show because one, the demand for ceramic and porcelain tiles go with the growth in the construction industry, but more especially with the advent of new inkjet technology that has been applied to ceramic and porcelain tile. It was able to get market and substitute for other tiles,” Michael Co, vice president for sales and marketing of COHCI, said in an interview with BusinessWorld.

For instance, the expensive onyx marble can be substituted with porcelain tiles printed with onyx marble texture. One can pay as much as $500 per square meter of onyx marble purchased from quarry, while the porcelain tile can cost 10-20% of the price.

“We are able to imitate exactly that marble, but in tiles to make it affordable,” Mr. Vilar noted. “In Spain, when we destroy a building, those material we bring to the clay factory. What we do is we recycle the old dust… be compressed to [be] used again as a tile.”

The tiles also undergo direct press to make sure that the surface is even.

COHCI also has an in-house brand Luxe, which is a collaboration with Italian designers and some Asian producers. “Most of the designs for Luxe are patterned after Italian designers so we buy the film from Italian suppliers and we put them into production,” Maria Cyrina Pascual, brand development manager of COHCI, said.

Other Spanish brands brought in by the company are Alaplana, Argenta, and Cicogres which are available in different sizes. COHCI also offers brands such as Capucino and Studio.

For the bathroom products, the company introduced a water closet that does not require users to touch it. Instead, a remote control is used, making it more kid-friendly.

“Tile and bath always go together, so after we are able to develop ceramic tiles, we developed Cool Bath System,” Ms. Pascual noted.

The Foss Newton Intelligent Toilet Innovation (INTELLET) feature auto-flush and pre-flush smart features, wireless remote control, heated seat and deodorizer. It can function both through electricity and through battery.

Other bathroom products included in the collection are GlazeProtec toilet series with nano-technology, which prevents bacteria from settling on the equipment, and pristine bathtub and brass fittings.

COHCI introduced its retail channels starting 2002, namely CW Home Depot (Manila), Cebu Home and Builders Centre (Cebu), and Living N’ Style (Manila) which is also its showroom. Tile products come from countries like Malaysia, Thailand, Vietnam, Indonesia, and Spain.

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