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A functional wine toy

CORAVIN inventor Greg Lambrecht demonstrating his device wine preservation device with a attached Coravin Aerator.

LIKE EVERY wine enthusiast out there, I am fascinated by wine gadgets and accessories — from the Vinturi wine aerator, stemless crystal glasses, to handcrafted decanters — but none of these impresses me more than the Coravin wine preservation system.
I first came across Coravin on a trip to Hong Kong a few years back, but only saw its actual demonstration in Malaysia earlier this year. Coravin is a modern scientific wine preservation system that basically has the same application as the large and bulky Italian made Enomatic wine dispensing machine (and a few other similar brands), but packaged in a portable and cooler looking device. I was very fortunate to be given the chance to interview the inventor and founder, American Greg Lambrecht in Hong Kong.
WHAT IS CORAVIN?
Coravin is a high-tech wine preservation device that uses a hollow needle (similar to an epidural needle) which is inserted through the cork, even with the foil capsule intact, to pour the wine out, while the bottle is simultaneously filled with pure argon gas to prevent oxidation. Once the needle is removed from the bottle, the cork reseals and the wine can be preserved as if it was never opened. Replacement argon gas capsules are sold separately when the device’s build-in argon gas is used up.
The Coravin name — as founder and Paul Rudd (Marvel’s Antman) look-alike Greg Lambrecht enlightened me — is a portmanteau of two Latin words: “cor” which means “heart,” and “vin” which means “wine.” Greg sees Coravin as the heart of wine, because the heart of enjoying wine is to have variety. The Coravin device allows wine drinkers to drink portions of the wine without committing to finishing the whole bottle. Therefore, at any given time, with Coravin a wine consumer can open a few bottles of different wines and drink only a glass or half a glass of one bottle and switch to another bottle without worrying about the wines losing their luster when saved for another day of drinking.
HOW WAS CORAVIN INVENTED?
“The idea for this invention got hatched when my wife decided to give up drinking wine, and I love wines but now I have no one to share a bottle with at home. I feel that this is an unmet need that many wine drinkers are faced with. It makes no sense for a person to finish a whole bottle when all he or she wants is to have a glass or two,” Greg recalled.
And very fortunate for all of us wine lovers, Greg Lambrecht had the technical background to make this happen. Greg worked in the medical field all his professional career. Early in his career, he was working on a chemotherapy delivery system that was implanted underneath the skin using needles. The needle was used to deliver chemotherapy repeatedly to an affected cancer area over a long period of time. This is basically how Coravin works, Greg explained. “You look at our needle, it is closed at the end, holes cut on the side, so it doesn’t remove material while it pierces and dilates the cork. And because corks are elastic, it closes again. The elasticity of the cork remains the same, sealing against the glass bottle after use.”
It did take around 11 years before the Coravin idea came to fruition. Greg admitted working on this idea in his basement at night, while his daytime was spent on his medical business. He tried several different gasses and needles, and was able to make his first prototype as early as 2003. It was in 2013 that Coravin was officially launched in the US market, and the company has grown rapidly since, with Coravin penetrating Europe, and most recently the Asia Pacific region just two years ago. Greg still runs both his medical company and Coravin.

MORE VERSATILE USAGE
Personally, Coravin seems like a lot more than a wine preservation system. Coravin replaces the foil cutter, the corkscrew, the pourer, and any wine preservation system that is available, whether it be the wine pump, the inert gas can, or even the big dispensing machines. It therefore makes a lot of sense for Coravin to be used in on-premise establishments, wherein now a very stiffly priced premium wine can be offered by the glass, without worry that the wine will get oxidized.
This is exactly the same purpose of the Enomatic machines, but with more flexibility. As mentioned in a previous column on wine dispensing and presevation machines, I have been saying all along that the nature of physically replacing a finished bottle in a wine dispensing machine is too much of a hassle that is, sadly, not rectifiable. With the Coravin system, you not only save space as the gadget can be removed from the bottle after each use, but, if needed, the bottle can be brought straight to the table for pouring in the customer’s full view. Aesthetically the Enomatic machine looks more stylish and can complement any nice interior, but functionally, the Coravin can do the same job at better efficiency, not to mention, at much better price. I saw Coravin being used in the Okada Casino Hotel, and more hotels and restaurants in Metro Manila would surely follow soon.
TWO SIGNIFICANT ADDITIONS
When I met Greg I had two concerns about Coravin, both of which I was surprised to find out were already addressed by his company.
The first one involved aeration. As we all know, many of the full-bodied, high-tannin wines need time to breathe before being enjoyed, thus the use of decanters or even the Vinturi aerator. Immediately Greg proudly showed me the Coravin Aerator, an accessory that can be attached to a Coravin device that looks like a faucet shower-head adapter. Greg demonstrated the aerator, which he called his coolest invention to date, and it was like a beautiful sprinkler in action.
“Aeration is a factor of time and surface area, and by increasing surface area, you accelerate aeration exponentially. What we did was we created small holes spaced around the diameter and broke the single stream into 24 streams. We can still alter the diameter, the droplet size, the number of streams if needed,” he added.
My second concern was Coravin’s usefulness with screw-capped wines since this closure is not made from cork, and, voila, Coravin had already created the Coravin Screw Cap, which is made with self-sealing silicone and can be used to replace any screw caps in wine bottles. The Coravin Screw Cap can be conveniently used with any Coravin devices.
With such top-notch R&D always searching for user benefits, and Greg’s indefatigable energy and vision, Coravin will keep on improving. Their newest version, the Coravin Model Eleven, is their best model to date. This comes after the 2nd generation Coravin Model Two. The Coravin Model Eleven has a sleeker look and comes with a light ring that will turn green when the wine has been penetrated by the needle and is ready to pour. And by gently tipping the bottle, the wine will automatically pour. Coravin Model Eleven also provides two pouring options for a full glass or a smaller sampling portion. The Coravin Model Eleven retails just slightly below $1,000 per unit.
THE LAST HURDLE
I was planning to bring a Coravin back home from Hong Kong, where the Coravin system’s manufacturer is located (the needles come from the US, and argon gas comes from Austria), as presumably it would be cheaper — but I was told that because Coravin contains gas, it was prohibited from being hand-carried or checked-in when traveling. I heard that even in the US where Coravin is from, you are not allowed to fly with the device unless the argon capsule is removed. According to the Coravin founder, the company is still working with the airlines, the countries, and even the TSA to see how this can be addressed.
Argon gas is actually non-flammable, non-toxic, and even odorless, but, as Greg pointed out, justifiably, there is no way for airport authorities to really know what is inside the Coravin capsule that says argon gas unless they puncture it or have some gas detector machine. So this one is still a work in process.
While I am one of the strongest advocates of wine being a social drink, meant for sharing, and therefore a bottle should be drunk with friends, there are also moments that I want to be a bit selfish. Sometimes, I just want to savor my Chateau Haut-Brion 1990 half a glass at a time, till it vanishes into oblivion.
The author has been a member of the Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux or FIJEV since 2010. For comments, inquiries, wine event coverage, and other wine-related concerns, e-mail the author at protegeinc@yahoo.com. He is also on Twitter at twitter.com/sherwinlao.

Megaworld to launch second residential tower in Taguig

MEGAWORLD Corp. is unveiling a second residential tower worth P7 billion in sales within its Taguig township, after quickly selling out the first phase of the Park McKinley West project this month.
In a statement issued Wednesday, the listed property developer said Park McKinley West’s second tower will offer 478 rooms across 25 floors.
Units range in size from 48.5 square meters (sq.m.) for one-bedroom, up to 110 sq.m. for two-bedroom, up to 212 sq.m. for three-bedroom, up to 229 sq.m. for four-bedroom, and up to 336 sq.m. for five-bedroom penthouse units.
Amenities include a lap pool and kiddie pool with a pool deck and lounge, fitness center, function rooms, yoga room and outdoor yoga deck, outdoor sitting areas, water features, children’s playground, game room and sky garden.
The property unit of tycoon Andrew L. Tan expects to complete the project by 2023.
The launch of the second tower follows the strong sales of Park McKinley West’s first residential building worth P6.5 billion, which has already been sold out two months after its launch in May.
Megaworld noted that rising prices for property units in the 34.5-hectare McKinley West township have not dampened demand, as investors are looking at the development’s prime location.
McKinley West is located in the southern part of Fort Bonifacio in Taguig, beside Forbes Park and the Manila Polo Club.
“At present, unit prices of Park McKinley West already rose 15% to P250,000 per square meter because of the huge demand for residential properties in McKinley West. We somehow expected this considering the remarkable take-up of lots in McKinley West Village, and the brisk sales of units in St. Moritz and The Albany. McKinley West is truly on a roll,” Megaworld Senior Vice President for Sales and Marketing Noli D. Hernandez said in a statement.
Megaworld now has four residential projects in the township, with the first being the McKinley West Village launched in 2010. The company noted that prices of lots in the upscale residential village have already tripled to around P200,000 per sq.m.
Its other residential offerings in the township are the St. Moritz Private Estate and The Albany. Megaworld said prices of units in both properties have already increased by 40% since their respective launches.
Megaworld’s net income attributable to equity holders of the parent rose by 11% to P3.2 billion in the first quarter of 2018, following a 10% increase in revenues to P13.1 billion for the period.
Shares in Megaworld jumped 2.35% or 11 centavos to close at P4.80 each at the stock exchange on Wednesday. — Arra B. Francia

How PSEi member stocks performed — July 25, 2018

Here’s a quick glance at how PSEi stocks fared on Wednesday, July 25, 2018.

Giltbox re-launches its online store

Here’s good news for makeup enthusiasts and online shoppers: Giltbox, the Philippines’ first and leading lifestyle subscription box service, is re-launching their online store!
But wait a minute, if you haven’t heard what Giltbox is, allow us to introduce it to you!
It’s a 360-degree lifestyle discovery platform — when one subscribes to their sampling service, they will receive a monthly delivery of the best beauty, grooming, and lifestyle products from prestige brands around the world. Yes, you read that right, around the world!

You probably never heard of “discovery subscription” — well, Giltbox is essentially like that. With Giltbox, you will have the chance to discover beauty and lifestyle products that are personalized just for you! By filling out your very own “beauty profile” (for women) and “grooming profile” (for men) — the Giltbox team will customize products according to your preference and data.  Isn’t that amazing? You know it is! 😉
In the Giltbox Shop, customers can buy find full-size versions of some of the products sampled as well as other editor-approved products from a vast list of brands. Shop from their list of 100+ brands and 1000+ products!
The Giltbox Shop is actually very user-friendly. You can easily find what you’re looking for in the “Shop”tab such as makeup, skin care, bath & body, hair, fragrance, and lifestyle.

You can also check out the contents of the previous boxes under the “Featured” tab. If you want to know the products that are currently on sale, don’t worry! Just click on the “Sale” button under the “Featured” tab.

Since Giltbox also has an online magazine designed to educate and inspire customers, from how-to videos, to beauty and style articles, to influencer collaborations — one can really appreciate and try out the products based from their pegs.
Giltbox’s innovative approach allows brands and consumers to connect in a unique, intimate, and fun way!
What are you waiting for? Go check out their store here and see what awesome products awaits you:https://www.giltbox.ph/shop.
 
Follow Giltbox online: @giltboxph, @giltboxman

How efficient is the Philippines in moving goods within and across its borders?

180726Logistics_Performance_Index_FINAL

IRA ruling appeal looms as DBM says 2019 budget priorities set

THE GOVERNMENT will ask the Supreme Court to reconsider its ruling expanding local government units’ (LGUs) share of the national government’s revenue, saying that the 2019 budget priorities have been set.
Budget Secretary Benjamin E. Diokno said that the high court’s decision was “too late to insert” after President Rodrigo R. Duterte submitted to Congress on Monday the proposed budget approved by the Cabinet.
“The DBM (Department of Budget and Management) in coordination with the Office of the Solicitor General will file a motion for reconsideration within 15 days from the receipt of the decision,” he said.
“The President’s budget reflects the administration’s budget priorities. So we feel that undue application of the ruling to the incoming fiscal year 2019 budget might distort the funding earmarked to priority programs and projects identified by the national government,” Mr. Diokno said.
He said that the DBM has yet to formally receive a copy of the Supreme Court resolution, which was released to the media on Monday.
Mr. Diokno said the DBM has insufficient time to reconfigure the 2019 budget, given the short 30-day window for the budget submission beginning with the resumption of the Congressional session on July 23.
The court in its final resolution ordered the “automatic release without further action” of LGUs’ “just share” of all national government revenue, including taxes collected by the Bureau of Customs. It also ruled that the national government should implement the ruling prospectively.
Mr. Diokno said that complying with the ruling would mean an additional P160 billion for LGUs in the form of Internal Revenue Allotments (IRAs) on top of about P600 billion initially budgeted for 2019.
Mr. Diokno has said that had the ruling been interpreted to be retroactive from 1992, it would cost the government at least P1.2 trillion.
Republic Act No. 7160, or the Local Government Code of 1991, provides for IRAs amounting to 40% of “national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year.”
Mr. Diokno said that the government will not implement the order until such time that the SC has responded to the motion for reconsideration.
“Nevertheless, the DBM will faithfully comply with the SC decision once it has become final and executory,” he said.
Mr. Diokno said that the government will devolve some functions to LGUs, especially conditional cash transfers (CCTs), farm-to-market roads, and local health care programs, as well as the corresponding budget for these functions, doing away with the need to spend more.
“There are many items there that were supposed to be performed by LGUs. CCT — that is supposed to be local but we are providing for it. So there’s a possibility that we might realign. We give that expenditure responsibility to them because the law says that’s theirs. Somewhere along the way, they got taken over by the national government,” he said.
“There’s a way of reallocating resources so LGUs will take over what they’re supposed to do. There are many things that they are not doing right now. And we’ll give it to them,” he added.
Sought for comment, the office of lead petitioner Hermilando I. Mandanas, a former Batangas governor and former representative of the province’s 2nd district and now Chairman of the Luzon Regional Development Committee, replied in a mobile phone message: “Gov. Mandanas would like to thank the SC for their wise decision.”
When asked to comment on the implications of the devolution for federalism, Mr. Diokno said: ”Let’s not complicate this with federalism. If you bring up federalism, then we will end up discussing this forever. So let’s set aside federalism. That’s a long way to go.” He added that he is still studying the draft constitution.
Finance Secretary Carlos G. Dominguez III and Socioeconomic Planning Secretary Ernesto M. Pernia have raised possible concerns about the ability of LGUs to deliver projects. — Elijah Joseph C. Tubayan

UBS sees PHL less affected by trade war, cuts 2019 growth view

THE PHILIPPINES is less likely to be affected by the trade war between the US and China compared with other more open economies in the region, but the dispute could still dampen growth prospects next year, UBS AG said.
In a media conference call, UBS economist Alice Fulwood said the Philippine economy is relatively resilient to the looming tariff war between the two major economies, but the disruption caused to trade could still weigh down growth for 2019.
UBS maintained its growth forecast for the Philippines at 6.8% this year, but slashed its 2019 estimate to 6.4% from 6.6% previously. This is significantly lower than the government’s 7-8% growth target.
“We now believe an escalation of US-China trade tensions with a meaningful fallout on growth is more likely than not,” UBS also said in a research note published last week.
“The more open economies of Singapore, Thailand and Malaysia see a more significant impact than the more closed economies of Philippines and Indonesia. Vietnam looks best placed to benefit from export market share gains.”
US President Donald J. Trump imposed tariffs on billions of dollars worth of goods brought in from China, particularly aluminum and steel items. China has retaliated with a 25% tariff on US soybeans.
Ms. Fulwood said the reduced forecast for the Philippines is the “direct result” of the potential impact of the trade war, and is less severe compared to downgrades for other Southeast Asian economies.
Singapore, which has a bigger exposure to the US and China, is expected to grow by 2.2% next year, down from the original 3.2% forecast. Malaysia’s growth is also projected at 4.2% from 5.1% previously.
UBS said manufacturers of cars, electronics and electric machinery may be affected by the US-China trade war, although the Philippines is “less exposed” to the global supply chain for these sectors.
Philippine inflation is estimated to average 4.7% this year, easing to 3.8% by 2019. These compare with a 2-4% target band of the Bangko Sentral ng Pilipinas (BSP).
UBS expects two more rate hikes from the BSP during its August and September policy meetings. If the forecast pans out, this will bring rates to 3.5-4.5% by year’s end following back-to-back increases in May and June.
“Higher interest rates can put downward pressure on the economy, but it will be resilient. We do not expect growth to slow too much,” Ms. Fulwood said.
The impact of the trade tensions may also be felt through the exchange rate. Ms. Fulwood said they expect tariffs to be met with a “risk-off” attitude against Asian currencies and lead to a stronger dollar.
UBS expects the peso to breach the P54 to the dollar level this year, and possibly weakening further to P56 next year. — Melissa Luz T. Lopez

Farm damage from storms tops P1 billion

CROP damage caused by two storms and a tropical depression has topped P1 billion, according to the Department of Agriculture.
According to data from the DA’s disaster operations center, as of Wednesday, damage to agriculture caused by Tropical Storm Henry, Severe Tropical Storm Inday and Tropical Depression Josie was estimated at P 1.12 billion.
Rice, corn, high-value crops, fisheries and livestock were among those affected, while the main areas affected by the storms were all of Region III as well as the province of Oriental Mindoro and parts of Northern Luzon, Negros Island and Panay, the DA said in a social media post.
Damage to rice made up 83% or P925.99 million of the total, amounting to 12,111 metric tons (MT). Meanwhile, palay in washed-out seedbeds was estimated at 5,137 bags.
The damaged area planted to rice was 30,274 hectares in the provinces of Pangasinan, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Batangas, Rizal, Laguna, Occidental Mindoro, Negros Occidental and Aklan.
Some 37,927 rice farmers were affected, with those from Central Luzon recording losses worth P569.83 million, with Tarlac accounting for P362.46 million.
Damage to corn was estimated at 93 MT, valued at P1.47 million. The damaged cornfields were largely found in Pangasinan, Nueva Ecija and Pampanga.
Damage to high-value crops was estimated at P18.66 million, or 594 MT in vegetables across 116 hectares.
Livestock damage was P700,000,incurred in Pangasinan and consisting of 13 head of cattle and one carabao.
Fisheries damage was mainly in the form of fish and fishing equipment, accounting for P172.46 million of the total and spanning various regions of Luzon.
“The Regional Field Offices of the Department are now conducting field validation to determine the extent of the damage and losses brought by the three weather disturbances, as well as the needs of the affected farmers and fisherfolk,” the operations center said. — Janina C. Lim

World Bank bats for cash transfer expansion in 2019

THE WORLD Bank is recommending an expansion in the coverage of the government’s cash transfers, known as the Pantawid Pamilyang Pilipino Program, due to their effectivity in reducing poverty.
“The Bank considers that there are enough arguments to expand coverage of Pantawid to cover additional families in 2019, taking into account the large number of poor families with children that have not yet been covered (about 2 million),” the bank said in an implementation and status report dated July 17.
The World Bank is helping fund the payouts to CCT beneficiaries from 2016 to 2019 under the Philippines Social Welfare Development and Reform Project.
The bank provided $450 million worth of financing for the government, which covers 7% of the CCT payout.
“Considering the ambitious national goal of reducing poverty from 21% to 14% in 2022, Pantawid has already demonstrated important poverty reduction impacts,” it noted.
“The Bank continues to note with concern the diminishing number of children covered by the program over the years, especially those who are below the age of five and at high risk of malnutrition. This highlights the unrealized potential for Pantawid to play a leading role in addressing the Philippines undernutrition crisis,” the bank said.
The World Bank noted that a third of Filipino children under five are stunted, indicating undernutrition.
“Following the example of Peru, which cut its stunting rate in half in less than a decade, the Bank team has recommended that DSWD establish an interagency committee to enhance the impact of Pantawid on nutrition,” it said, referring to the Department of Social Welfare and Development.
However, it also flagged some delayed payouts due to logistical issues with the Land Bank of the Philippines, which it noted as a “critical aspect that has not been solved yet.”
“Many beneficiaries and DSWD local personnel express frustration over payouts being canceled at the last minute, ATMs without sufficient funds to disburse money to beneficiaries, and perennial delays in issuing and replacing cash cards,” the bank said.
“The Bank has recommended exploring additional/alternative payment providers to achieve more efficiency in the download of grants to the beneficiaries and, in the long-term, achieve 100% use of cash cards or point of sale terminals,” he added.
“DSWD should prioritize completing Listahanan 2015 with the missing Pantawid families that were not assessed,” it added, referring to the database of targeted beneficiary households. “For the Listahanan to stay relevant, the Bank has recommended DSWD to consider the need for a more dynamic registry, which is reflected by the requirements of its biggest users.”
It also noted that the national ID system will help plug leakages to the conditional cash transfer program.
It said the progress made towards reaching the project’s objectives as well as the implementation progress are “moderately satisfactory.” — Elijah Joseph C. Tubayan

NGCP seeks approval for contingency reserve power deals

PRIVATELY OWNED National Grid Corp. of the Philippines (NGCP) has asked the Energy Regulatory Commission (ERC) for provisional authority to implement its ancillary services procurement agreement (ASPA) with a power plant in Luzon and another in the Visayas.
In a joint application filed with the ERC, the power grid operator and Therma Luzon, Inc. (TLI) have sought approval for the 60 megawatts (MW) that NGCP will buy from the power plant’s units 1 and 2 in Pagbilao, Quezon province on a firm basis, and another 60 MW on a non-firm, or as needed, basis.
Separately, NGCP and Palm Concepcion Power Corp. (PCPC) are asking approval for an ASPA for 15 MW on a firm basis, and 15 MW on a non-firm basis. Both applications sought provisional authority ahead of the ERC’s final approval.
NGCP forges agreements to procure “ancillary services” — in this case power supply — to ensure reliability in the operation of the transmission system and consequently, in the reliability of the electricity supply in the Luzon, Visayas and Mindanao grids.
Ancillary services are necessary to support the transmission of capacity and energy from energy resources to electricity load centers, while maintaining the reliable operation of the transmission system.
NGCP said the ancillary services to be sourced from TLI and PCPC are to be used as contingency reserve, or power that will be allocated to immediately answer any reduction in supply when the largest power generating unit online fails to deliver.
“In view of the need for NGCP to procure ancillary services from PCPC, the Applicants on 23 December 2017, executed the ASPA. NGCP agreed to procure and PCPC agreed to supply Ancillary Services in the form of CR for a period of two (2) years under firm and non-firm arrangements,” the joint NGCP-PCPC application stated.
The agreement with TLI, meanwhile, is an extension of a previous ASPA forged in March 2013 with a term of five years. The past deal was granted provisional authority by the ERC. The commission oversees power supply deals to regulate future cost recovery.
“In view of TLI’s proposal to continue providing ancillary services, NGCP agreed to procure and TLI agreed to supply Ancillary Services in the form of Contingency Reserve… under firm and non-firm arrangements,” the companies said.
During the period of negotiation, NGCP conducted several tests on the TLI power plant, and certified that it had met and complied with the standard ancillary services technical requirements as capable of providing contingency reserve. The new procurement agreement between the two was forged on May 29, 2018.
TLI is the independent power producer administrator of the 700-MW coal-fired power generation plant in Pagbilao. PCPC is the owner and operator of the 135-MW coal-fired power plant in Barangay Nipa, Concepcion, Iloilo province. The ERC is set to hear both applications next month.
Separately, NGCP said on Wednesday that it had energized the newly constructed Aurora-Polanco 138-kiloVolt (kV) transmission line 1 on June 20, and line 2 on July 22, 2018 as part of its efforts to continuously upgrade its facilities and to address the recent voltage fluctuations in Northern Mindanao.
The company said it has started several projects to mitigate congestion and voltage issues in the area and ensure the integrity of the entire grid arising from Mindanao’s rapid load growth in recent years.
The Aurora-Polanco 138-kV project is one of NGCP’s initiatives to reinforce power transmission services in the Zamboanga del Norte area.
Dipolog City, Dapitan City, and the Municipality of Polanco are three important load centers in the Zamboanga del Norte area, which have been growing in power consumption year after year, it said. — Victor V. Saulon

Meralco seeks permission to recover new Biñan franchise tax

MANILA ELECTRIC CO. (Meralco) has asked the Energy Regulatory Commission (ERC) to factor in the new local franchise tax rate imposed by Biñan City in Laguna province, and reflected in its customers’ electricity bills in the area.
Meralco said the city government imposed a higher tax on businesses enjoying a franchise as computed based on their gross annual receipts, which include both cash sales and sales on account realized during the preceding calendar year within Biñan.
The distribution utility is also asking that it be able to recover the differential local franchise tax for 2017 from customers in the said city.
The company said on Nov. 22, 2016 that the city enacted an ordinance that imposed a local franchise tax (LFT) on businesses enjoying a franchise at a rate of 75% of 1% of the gross annual receipts. The previous rate was 50% of 1%, which took effect on Aug. 12, 2010.
“Subsequently, the Office of the City Treasurer of Biñan, Province of Laguna issued a Notice of Assessment to the Applicant in the amount of P32,560,202.99. As [Meralco] was already able to pay the amount of P16,280,101.49 for LFT for the 1st to 3rd Quarter of 2017 based on the old rate at the time of the assessment, [it] only needs to settle/pay the balance… of (P16,280,101.50),” the company said.
It said the balance is broken down as P5,426,700.50 for the LFT due for the fourth quarter of 2017 using the old rate; and the amount of P10,853,401 representing the differential LFT or the difference between the old and the new rate, on or before Oct. 20, 2017 to avoid the imposition of surcharges and penalties.
Meralco is seeking authority to recover the differential LFT at a rate of P0.0117 per kilowatt-hour (kWh) and carrying cost in the amount of P352,781 at a rate of P0.0004/kWh or the total amount of P11,206,182 at a rate of P0.0121/kWh from the customers of Biñan for a period of 12 months.
Meralco has a legislative franchise to operate and maintain a distribution system in the cities and municipalities of Metro Manila, Bulacan, Cavite and Rizal, and certain cities, municipalities and barangays in Batangas, Quezon, Pampanga and Laguna.
As such it is authorized to charge all its customers for their electric consumption at the rates approved by the ERC.
Meralco is not authorized to unilaterally change the franchise fee rate component on customer’s bills. If it needs to change the rate due to any changes in franchise fee obligations, it is required to petition the ERC for such authority and include in its filing all documentation necessary to verify the changes.
Under ERC regulations, a distribution utility is to await the commission’s clearance before the inclusion and imposition of local government taxes in its customer’s retail rates. — Victor V. Saulon

ISOC proposes cell tower building program to DICT

ISOC INFRASTRUCTURES, Inc., a unit of ISOC Holdings, Inc., has submitted an unsolicited proposal to the Department of Information and Communications Technology (DICT) to build 25,000 common cellular towers over seven years.
In a briefing at the DICT office on Wednesday, Acting Secretary Eliseo M. Rio, Jr. said it is the first time the agency has received an unsolicited proposal to accredit a common tower provider, and needs to consult its legal department for a thorough review.
“Remember the government will not spend anything here. It will just give permission for the proponent to put up common towers. It will be up to them to convince telcos (to use them),” he said.
Mr. Rio also noted the DICT may accommodate up to two common tower companies, which would also have to submit a proposal and go through the process to which it will subject ISOC Infra.
“Basically, this will be considered initially as a public-private partnership (PPP). The PPP rules set up by our laws will be applicable. This will be subject to a public hearing, and then a Swiss challenge will then be conducted,” the DICT Legal Office said.
Under a Swiss challenge, other companies may submit counter-proposals but ISOC Infra, as original proponent, has the option to match any counter-offers.
Mr. Rio also said unlike other PPP, ISOC Infra will be allowed to operate, maintain and lease its towers should it be accredited by the DICT.
ISOC Infra is chaired by Megawide cofounder Michael C. Cosiquien. During the briefing, he said the company is investing P100 billion over seven years at an estimated P3.5 million to P6 million per tower.
Mr. Rio said the department encourages the sharing of towers, as opposed to the practice of Globe Telecom, Inc. and PLDT, Inc. of building towers for their exclusive use.
Mr. Rio said sharing of towers will be more economical, and hopes a common tower policy will make telecommunications services more affordable.
“This is what we are trying to do — bring down the costs. Because right now, the cost of Globe and Smart is (such) because they are not sharing towers. They are passing on to the consumers the cost of putting up a tower,” he said.
But he added that the two companies are still allowed to build their own tower should they want to, as their franchises from the National Telecommunications Commission (NTC) allow for it. — Denise A. Valdez

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