Facebook Instagram Linkedin X Youtube
Home Blog Page 10785

Speakership scheme could stunt reforms

By Charmaine A. Tadalan
Reporter

THE PLANNED term-sharing of speaker aspirants Taguig 1st district Rep. Alan Peter S. Cayetano and Marinduque Rep. Lord Allan Jay Q. Velasco could disrupt reform impetus in the remaining three years of President Rodrigo R. Duterte’s term, analysts said on Thursday last week.

Mr. Duterte on Monday last week stepped in to end an impasse between the two speakership bets by endorsing Mr. Cayetano to lead the House of Representatives in the first 15 months, and Mr. Velasco for the remaining 21 months of the 18th Congress.

While both lawmakers vowed to push the President’s legislative agenda, University of the Philippines political science department chairperson Maria Ela L. Atienza said in an e-mail that “based on recent history and the fact that alliances in Congress are usually based on the popularity of the President, personal interests of legislators and the lack of programmatic and disciplined political parties, changes in House leadership as well as committee chairs and memberships can cause discontinuities in policy agenda, resentments and infighting within the coalition.”

“We also do not know if, by the time there will be a change in speakers, there will still be high presidential approval ratings and a supermajority coalition.”

Ms. Atienza also noted that the 2022 national elections could also distract lawmakers who will seek reelection or higher office.

“This is also true as the coming 2022 elections is an important consideration for legislators. They balance their own interests for survival and desire for reelection or election to higher posts vis-a-vis the president’s popularity, public sentiments, and strength of possible allies and interest or pressure groups.”

Michael Henry Ll. Yusingco, senior research fellow at the Ateneo Policy Center, said different objectives of two presumptive House leaders could impact desired reforms.

“For sure the priority measures by the administration will be negatively impacted by the term-sharing because the two speakers have different objectives,” Mr. Yusingco said.

“They clearly are not on the same page as far as the direction of the House is concerned,” Mr. Yusingco said in a separate e-mail.

“A lack of coherence will be palpable in the leadership of the HoR. Lawmakers will likely just sit tight and do nothing. Their minds will already be focusing on 2022. So they will be concerned only about whatever pork they can get.”

Leyte 1st District Rep. Ferdinand Martin G. Romualdez, who is being eyed for the post of majority leader, for his part, said discussions are under way to try to limit House leadership changes after Mr. Cayetano’s term.

“We are going to study the proposal of incoming Speaker Cayetano to limit the leadership change after 15 months to his position and [to] the head of the House committee on accounts so that legislative operations will remain unhampered,” Mr. Romualdez said in a mobile phone message, referring to the committee that tackles the internal budget of the House.

“We will wait for the positions of other House leaders from various political parties and influential blocs to determine if this is a workable solution to ensure a strong, stable and non-disruptive House leadership.”

Senator Aquilino L. Pimentel III, who heads the ruling Partido Demokratiko Pilipino-Lakas ng Bayan as president, said leaders of the party met with Mr. Cayetano’s camp on Thursday evening to discuss ways to ensure smooth transition amid a House leadership change.

“If matagal nang na-decide ‘yung (If it had been long decided by the) entire body na we will change our leader [in the House], but we will not change our agenda, we will not change our working style, we will not change a lot of things, we are clear about the changes, then walang manggugulo (it shouldn’t be a messy transition).”

Port regulator caps time to decide on proposals

THE PHILIPPINE PORTS AUTHORITY (PPA) is limiting the time to decide on unsolicited proposals from private groups seeking to develop local ports.

PPA General Manager Jay Daniel R. Santiago told reporters last week that Transportation Secretary Arthur P. Tugade had ordered capping the period of negotiations with private proponents to 60 days, after which a decision must be made to accept or reject proposals.

“Actually under NEDA (National Economic and Development Authority) guidelines, we have 30 days (to review proposals), but you can extend it hanggang (at the) discretion of the agency. Pero may instruction si Secretary (But Mr. Tugade gave instruction] to limit yung extension na yun [that extension] up to a maximum of 60 days total,” Mr. Santiago said.

“In 60 days you have to make a decision whether to accept or reject. No ifs, no buts.”

The new rule comes as the PPA is evaluating unsolicited proposals from Dennis A. Uy-led Chelsea Logistics and Infrastructure Holdings Corp.; Razon-led International Container Terminal Services, Inc. and Davao-based Kudos Trucking Corp. to develop Davao City’s Sasa Port, two Iloilo ports and the General Santos Port, respectively.

Mr. Santiago said the PPA gave Chelsea a letter earlier this month indicating the company’s completion of submission of documents for its P11.2-billion unsolicited bid to rehabilitate Sasa Port. This signals the start of the 60 days to negotiate the terms of the project.

“No later than first week of September dapat may decision dyan (there should be a decision on that),” he said, referring to awarding of original proponent status to a private proponent.

For ICTSI’s P8.7-billion unsolicited proposal for the Iloilo Port Complex and the Port of Dumangas in Iloilo, Mr. Santiago said regulators are still waiting for more requirements.

For Kudos’ unsolicited proposal for the Port of General Santos, the PPA chief said the letter indicating completion of its proposal requirements could be given within the month.

While talks on project terms will be limited to 60 days, Mr. Santiago said there is no deadline for companies to complete submission of proposal requirements to the PPA.

However, by the end of the Duterte administration, all incomplete proposals will automatically be considered denied.

“Secretary Tugade gave a deadline for all of the proponents and for the agency na pagdating ng June 30, 2022 at hindi ka pa lumalampas sa kahit na ano, considered rejected ‘yan (if a proponent has not completed submission of requirements by June 30, 2022, the unsolicited proposal will be considered rejected]. So when we leave by June 30, 2022, there will be no pending unsolicited proposal,” Mr. Santiago said.

Aside from the tighter timetable for negotiations with proponents, Mr. Santiago said other rules for unsolicited proposals include prohibiting government guarantee and viability gap funding (for projects that are economically justified but are not financially viable).

The stricter rules on unsolicited proposals for ports comes as the Department of Transportation ordered all private proponents for the development of airports to submit concession terms patterned after the agreement the government signed for the Clark International Airport. That set back proponents such as the consortium of seven conglomerates offering to upgrade the Ninoy Aquino International Airport, whose concession terms were returned for revision a few weeks ago — after about nine months since it started negotiations with the government.

Meanwhile, the PPA aims to release within the year a new tariff system for ports under its jurisdiction which will change the basis of handling fees from cargo type like prime and non-prime commodities — which it says could be prone to irregularities like misdeclaration — to bulk, break bulk, containerized and roll-on, roll-off (RoRo) shipments.

“I want to make the pricing uniform insofar as the packaging and handling is concerned,” Mr. Santiago said.

“… [Y]ou have one whole container of rice and one whole container of general merchandise, why should the pricing be different… eh it requires the same effort?” he explained.

“… [I]t’s a source of corruption pa. You allow the possibility na people on the ground will have different and subjective appreciation of what that cargo is. You don’t know what’s inside the container…”

This new tariff structure will be embedded in concession terms the PPA will agree on with private proponents, as well as for other ports the PPA aims to bid out for terminal leasing.

“We’re looking at about two or three (terminal leasing contracts) to be awarded this year. At least for those two or three, we should be able to embed that new tariff structure,” the PPA chief said.

For existing concessions, the new tariff system will be imposed once the concessionaires apply for a tariff increase. — Denise A. Valdez

Regions still dependent on National Revenue

Regions still dependent on National Revenue

Gov’t finalizing rules for renewable energy suppliers in option program

THE DEPARTMENT of Energy (DoE) targets to finalize in about two months a circular that will set the guidelines for the issuance of operating permits for renewable energy suppliers under the agency’s green energy option program (GEOP).

Mylene C. Capongcol, director of the department’s Renewable Energy Management Bureau (REMB), said the circular should be up for signing by Energy Secretary Alfonso G. Cusi after her unit completes gathering comments from stakeholders.

“[A]fter the 25 July pub-con (public consultation) in Clark, REMB will be consolidating and reviewing all comments and suggestions raised in the [Luzon, Visayas and Mindanao] consultations so they could come with an updated version for the Secretary’s consideration by September,” she told reporters in an online message.

On July 11, the bureau conducted the third leg of public consultations on the draft department circular that would guide end-users, renewable energy (RE) suppliers and network service providers in facilitating the option taken by end-users to choose RE resources to supply their energy needs.

Mr. Cusi had said that the DoE was committed “to establish an energy-secure future and bolstering our country’s RE resources is one avenue to achieve this. I am confident that the GEOP will give rise to a reliable market for RE generation and enhance competition among RE and other power suppliers.”

The draft circular providing the “Guidelines Governing the Issuance of Operating Permits to Renewable Energy Suppliers under the Green Energy Option Program,” serves to support the implementation of DoE Circular No. 2018-07-0019 entitled “Promulgating the Rules and Guidelines Governing the Establishment of the Green Energy Option Program Pursuant to the Renewable Energy Act of 2008.”

The public consultation focused on the guidelines and procedures in the issuance, administration and revocation of operating permits to renewable energy suppliers.

Under GEOP, electricity end-users opting to participate in the program have to inform their host distribution utility of their plan to source power from renewable energy resources. The distribution utility and renewable supplier are to inform the end-users of the technical, commercial and legal arrangements necessary to implement GEOP.

The public consultation in Batangas City was led by Ms. Capongcol and Monalisa C. Dimalanta, the recently appointed chairperson of the National Renewable Energy Board. The discussions covered sections on renewable energy supplier qualifications, application requirements, processing and approval procedures, and the revocation or cancellation of operating permits.

Previous public consultations were conducted in Cebu City and in Davao City.

The final leg of public consultations will be held on July 25 in Clark, Pampanga. — V. V. Saulon

Overtaxation seen driving POGOs away

THE government runs the risk of losing investment from the online gaming industry if it stiffens regulation and raises tax rates, industry analyst Asia Gaming Brief said.

“A lot of companies perhaps, are feeling the pinch of increased regulation, increased taxes, pressure from different government agencies… They may be moving some of their operations out of the Philippines to other jurisdictions,” Rosalind Wade, AGB Managing Director, said in a briefing late Saturday.

“If you’re going to set your tax rate at 60%… That’s just not viable from an RoI (return on investment) point of view for any kind of investor,” according to Ms. Wade.

Last week, Philippine Amusement and Gaming Corp. (PAGCOR) Chairperson and Chief Executive Officer Andrea D. Domingo said that the Department of Finance (DoF) and the Bureau of the Internal Revenue (BIR) will not overtax POGOs to the extent of losing investment.

Ms. Domingo noted that the Philippines is new to the offshore gaming industry, and the government has little experience with effective regulation.

“I’m sure that they (DoF and BIR) are all very intelligent… (and) will not overtax so that we lose whatever good (the industry brings).”

“If you kill (the industry) with unreasonable measures, then you lose everything, so we have to maintain it while observing everything that is legal. We also want to make it a good place to invest in,” she said.

The BIR is currently running after unregistered POGO (Philippine Offshore Gaming Operations)workers in order to better tax them.

The DoF has said that the government is losing around P2 billion a month for every 100,000 workers, which amounts to P24 billion a year.

Ms. Wade noted that the gaming operators, including foreign workers, also generates income for other industries such as restaurants and real estate.

“They have restaurants, they have bars, they have laundry services, they have many of the businesses, that they are contributing to the local economy here. So if all those went [away], it would create a huge hole,” Ms. Wade said.

Meanwhile, offshore gaming company Oriental Group said that it wants to hire more Filipinos for its operations, as long as they speak Chinese.

“We are trying to increase the number of Filipinos,” Kevin Wong, Oriental Group General Manager, said in a briefing on Friday.

“Actually, now we plan to set up an association where we can also try to teach the Filipinos how to speak Chinese [so that] we can remove the hurdle of language. Actually we can hire all Filipinos. Why not? But then, language is very crucial,” Mr. Wong said. — Reicelene Joy N. Ignacio

Travel industry sees job growth outperformance

THE TOURISM and hospitality sector expects to outperform in terms of job growth in the next few years, outstripping the global average, industry officials said.

Rajah Travel Corp. (RTC) and its online tourism data platform Tourism Knowledge Center (TKC) issued the projection during the second edition of its Travel Talk Series, which discussed the state of tourism jobs amid the disruptions of new technology.

Chairman and President Aileen C. Clemente said that the Philippines will not be left behind in terms of jobs and expects work opportunities to enter a boom period.

“Global tourism is growing at 5.6% and the Philippines is growing at 7.65% in terms of tourist arrivals so we’re still ahead. In terms of jobs we’re still ahead on the average of the global tourism industry. We (also) have a higher share in the Philippines,” she said.

“Nothing can replicate tour guides,” she said. “We have to have different promotions for every destination so there is a constant process of thinking about how to make it attractive and how to give an experience to somebody.”

According to the World Travel and Tourism Council (WTTC), the global travel industry accounted for $8.8 trillion or 10.4% of total GDP. It is considered one of the fastest-growing sectors behind the manufacturing industry. The WTC projects that 100 million jobs in the industry will be added globally in the next decade or 429 million jobs in total by 2029.

In the Philippines, Ms. Clemente said the tourism sector was responsible for 12.7% of GDP and 13.8% of the labor force in 2018.

TKC Executive Director Rolando T. Cañizal said that the industry is already seeing signs of encoraching technologies particularly with visitors demanding ever-newer services.

“In our travel and tourism industry, we are now seeing the great impact of technology… to develop new markets and at the same time, the rise of new travelers and tourists who are more technology-savvy and digitally oriented. In this regard, many businesses have started to adapt certain technological systems to better serve our guests and promote their products in the market,” he said.

TKC Review Committee and Asian Institute of Management (AIM) Dr. Andrew Tan Tourism Center Board of Advisor Member Maria Cherry Lyn S. Rodolfo said that like in other industries in which jobs in the tourism sector will also witness some loss, jobs in the industry will also evolve with the times.

“Jobs will not dissipate at one time. Yes, there will be some reduction of traditional jobs but these jobs will evolve,” she said.

While careers in sectors of the tourism industry such as travel agencies, hotels, and MICE (meetings, incentives, conferences and exhibitions) will still stay for the meantime, newer job expertise will need to be added to their roles because of more travel innovation.

Andy Michaels Lim, Managing Director of Amadeus IT Group, said that humans will still play a crucial role to the tourism industry even with the technological innovation.

“Technology doesn’t work without people,” he said, adding new roles that will be required in the travel industry will be digital marketer/strategist; partnerships manager; UX/UI Programmer; Web/graphic designer; and content strategist.

Even with new roles, some skills will remain irreplaceable especially if they are soft skills. Ms. Clemente said, “Technical skills we have mastered a lot of that but we need to concentrate on soft skills like analytical thinking, critical thinking, empathy, integrity, stewardship. These are things that are needed especially in the services industry.” — Gillian M. Cortez

Ortigas not keen on IPO for now

The Galleon will rise along ADB Avenue in Ortigas Center.

ORTIGAS & Co. is holding off plans for an initial public offering (IPO) at least until 2024.

“It’s premature to talk about that right now because if you look at our five-year plan, a lot of it is really internally financed,” Jaime E. Ysmael, president and chief executive officer of Ortigas & Co., told reporters after a recent briefing.

The developer of Greenhills Center earlier said it was allocating around P12 billion for capital expenditures this year. The bulk or P11 billion will be used to develop a mixed-use project called The Galleon, located along ADB Avenue in Ortigas Center.

“We’re just looking at using our balance sheet as well as pre-selling and existing rentals or development proceeds to fund our expansion program and we can actually do it without having to do any capital market issue,” Mr. Ysmael said.

The property firm, which is controlled by the Ayala, Sy and Ortigas families, had previously floated the idea of going public to raise funds for its projects.

Mr. Ysmael said Ortigas & Co. is looking to spend around P12 to P15 billion in capex for the next five years, as it ramps up expansion.

“I think in the next couple of years, we’ll see P12 to P15 billion in capex, for the next five years as we pursue expansion plans,” he said.

“We can finance our requirements so there is really no reason why we should look at the market exercise,” he added.

Mr. Ysmael said the company, like other developers, is studying the possibility of conducting an IPO but “no plans.”

Last week, Ortigas & Co. launched The Galleon, which will be developed in two phases. The first phase, an office building, is expected to be completed by the fourth quarter of 2025.

The residential condominium is scheduled to be launched early next year. — Vincent Mariel P. Galang

Congress to probe price, supply bottlenecks for biofuels

THE Joint Congressional Oversight Committee on Biofuels is set to investigate the biofuel industry over price increases in molasses when the 18th Congress opens its first regular session.

Senator Sherwin T. Gatchalian, chair of the energy committee, said the inquiry will also look into the sugarcane industry’s production of molasses, to help reduce bioethanol prices.

“We plan to convene the Joint Congressional Oversight Committee on Biofuels to look into the feedstock and pricing problem, and, in the end, come up with long-term solutions to this perennial problem,” Mr. Gatchalian said in a statement Sunday.

The Senate probe will be conducted with Department of Agriculture as well as other government agencies that are members of the National Biofuels Board. The 18th Congress will be opening its first regular session on July 22.

The Senator reported that the current price of molasses is P11,500 per metric ton, which in turn helps bring the price of bioethanol to around P59 per liter or higher.

“They say that they might soon be left without a choice but to stop the production of bioethanol since oil companies no longer buy from local ethanol plants if the price of bioethanol is too high,” he said.

“In fact, they are saying that there’s already a plant that is no longer producing bioethanol because of the high price of molasses.”

The joint committee will also tackle solutions to increase feedstock provided to ethanol plants as well as to intensify research and development for long-term solutions.

Citing data from the Department of Energy (DoE), Mr. Gatchalian said existing bioethanol plants produce 270 million liters of bioethanol, well under their capacity of 365 million liters. The DoE also noted a shortfall in molasses production, prompting the government to import 50.91% of the bioethanol requirement. — Charmaine A. Tadalan

Reissued seven-year T-bonds to fetch lower rates

THE GOVERNMENT will likely see lower yields for its reissued seven-year bonds to be auctioned off tomorrow, as market participants price in possible interest rate cuts from the local and US central banks.

The Bureau of the Treasury (BTr) is offering on Tuesday P20 billion worth of reissued seven-year bonds with a remaining life of six years and seven months.

Kevin S. Palma, Robinsons Bank Corp. peso debt trader, expects the debt papers to fetch lower rates from the previous offer.

The Treasury made a full award of the of the seven-year bonds when they were last auctioned off on May 15. The IOUs fetched an average rate of 5.743%, 19.1 basis points (bp) lower than the 5.934% fetched in the previous offer.

Mr. Palma expects the rate of the seven-year bonds to land between 4.825% and 4.925%, while another trader said the debt notes will likely fetch an average rate from 4.95% to 5%.

“This auction could potentially have a very strong reception as market expects the Fed (US Federal Reserve) to cut its policy rates by at least 25 bps this coming Federal Open Market Committee (FOMC) meeting by the end of July,” Mr. Palma said in a phone message on Sunday.

Fed chair Jerome Powell, in a testimony before the US Congress last week, hinted on a possible cut in benchmark rates, saying the central bank will “act as appropriate” to sustain expansion as “crosscurrents” such as trade tensions and concern on global growth are weighing on the world’s largest economy.

The US was embroiled in a trade war against China as both countries hurled tariffs against each other’s imports. However, tensions cooled late last month after Washington and Beijing agreed to resume negotiations.

Mr. Powell’s dovish cues were reinforced by the minutes of FOMC’s June 18-19 meeting, wherein several Fed officials said a near-term interest rate cut is warranted to quell the effects of possible economic headwinds.

Apart from a possible Fed rate cut, Mr. Palma added that the auction on Tuesday will likely receive robust demand due to possible policy easing by the Bangko Sentral ng Pilipinas (BSP) as early as the Monetary Board (MB) meeting on Aug. 8.

BSP Governor Benjamin E. Diokno said the local central bank will likely cut policy rates in the second semester before moving to reduce banks’ reserve requirement ratio (RRR).

On May 9, the MB reduced interest rates by 25 bps amid a tamer price outlook after it implemented 175-bp worth of increases last year in five consecutive meetings due to a spike in inflation.

However, it took a “prudent pause” at its June 20 meeting to assess the impact of its prior monetary adjustments.

The government is set to borrow P230 billion from the domestic market this quarter through a mix of Treasury bills and T-bonds, lower than the P315 billion planned in April-June and the P300 billion placed on the auction block in the same period last year.

It is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — Karl Angelo N. Vidal

Greater use of GSP program driving exports growth to US, DTI says

PHILIPPINE exporters are learning to maximize their use of a Generalized System of Preferences (GSP) arrangement with the US, resulting in increased exports overall to that country, the Department of Trade and Industry (DTI) said.

Exports to the US rose 15.83% in 2018 to $1.73 billion, with exporters filling about 72% of the available $2.41 billion that could have been taken in by the US. In 2017, the corresponding usage rate was 67%.

In an e-mail, Assistant Secretary of the DTI’s Industry Development and Trade Policy Group Allan B. Gepty said that the increase in exports was due to the inclusion of a number of travel goods categories for export to the US starting July 2017.

“Philippine exports to the United States under the US GSP scheme continued to increase. One of the major reasons for this is the increase in exports of travel goods (e.g. handbags, travel, sports and similar bags, cases, bags and containers) which were included in the coverage beginning July 1, 2017.”

Some travel goods were among the top exports to the US in 2018, with handbags with plastic sheeting placing fourth ($64.24 million), handbags with leather composition placing fifth ($62.95 million), travel and sports bag eighth ($47.98 million) and cases, bags and containers placing ninth ($44.97 million).

The top export to the US under the GSP arrangement in 2018 was pneumatic radial tires for motor cars, amounting to $119 million, up from $113.7 million a year earlier.

“It was also noted that exports of electric motors, insulated electric conductors, and telescopic sights significantly increased in 2018,” Mr. Gepty said in the e-mail.

Telescopic sights were the number two export to the US in 2018 at $96.17 million, up 9% from a year earlier. Insulated electric conductors amounted to $64.33 million, up 10%.

“Other” cane sugar products, however, declined 42.24% amounted to $60.82 million.

“One of the reasons for the decrease was due to the reduction of allocation for the US market as a result of an increase in the domestic demand for sugar,” said Mr. Gepty.

The DTI is optimistic on the outlook for US trade relations. In 2018, trade with the US was worth $18.7 billion, accounting for 10.3% of total trade. He expects the growth to be “sustained.” — Katrina T. Mina

Supra natural sports car

Text and photos by Kap Maceda Aguila

THE FIRST-EVER SUPRA to be retailed in the Philippines is here — taking its place as the flagship sports car of Toyota.

The all-new, fifth-generation Toyota GR Supra — also known as the A90 or Mk. V — also marks Toyota’s entry into the so-called specialty passenger car segment, which is currently able to move 60 to 85 units a month, per TMP.

Significantly, the new Supra earns a “GR” prefix, which stands for Gazoo Racing. This “embodies Toyota’s commitment to overcoming every limit to make even better cars by forging new technologies and solutions under the extreme conditions of motorsports,” according to a company release.

In a speech, TMP President Satoru Suzuki said that “only a limited number of units will be available through 16 certified GR Performance dealerships nationwide,” and expressed confidence that “the Philippine market will be receptive, considering how (TMP has) steadily recovered for the first half of 2019.” The executive shared that TMP has already sold a total of 73,454 vehicles across its portfolio, and considers the GR Supra “the perfect bookend to our three decades of meaningful partnership that has set the standards for the entire automotive industry,” as the company nears its 31st anniversary this August.

Meanwhile, TMP Supervisor for Product Planning Jovie Roqueza posited to BusinessWorld that the niche the GR Supra enters is one fraught with uncertainty, while bearing potential for high rewards. “This segment is made up of non-cyclical buyers. Other segments are pretty easy to forecast because every five years, these people tend to replace their classic cars.”

Toyota is hoping to recreate its past success in the 86 when it debuted in 2013. “The segment grew 500% higher than the actual monthly demand. We can also foresee the Supra creating this type of segment-shaking impact, but the exact number we cannot disclose since we’re still doing pre-selling,” Mr. Roqueza said.

In a release, TMP First Vice-President Cristina Arevalo averred, “Bringing the legendary Supra here is something we have always wanted to do, and we are positive that there are countless Toyota fans out there who share the same enthusiasm.”

The new-generation Supra arrives after a lengthy 17-year hiatus, and first debuted globally in Detroit, USA in January. All units come direct from the Magna Steyr plant in Graz, Austria. Toyota reported that the GR Supra is “true to its Japanese DNA, which hailed from early grand tourers like the A40 to the futuristic concept car FT-1.”

To be sure, there is much talk about the fact that the Supra shares its engine and platform with the BMW Z4. And a Car and Driver article said that “Supra loyalists weren’t shy in expressing their indignation about the union… that a co-developed car was destined to be viewed by history as nothing more than a Toyota badge slapped onto a BMW.”

But while an in-line 3.0-liter six-cylinder B58 heart from BMW resides in the Supra’s engine bay, and both have the same transmission, dampers, and steering rack, to say that they’re siblings or even twins is erroneous.

“In the Supra, we partnered with another brand because the straight in-line six is an engine not existing in the Toyota lineup,” reported Mr. Roqueza. “For Toyota to develop its own in-line six would cost a lot of money, and that will defeat the whole purpose of the Supra as being a possible or attainable pure sports car.” He shared that the Toyota and BMW co-development stopped “four to five years ago because BMW saw the Z4 moving one way, and our Supra another.”

Mr. Roqueza maintained, “The key message is that they’re totally different — shifting patterns, gear ratios, tuning, how the engine performs.”

That’s indeed a main raison d’être for the Supra — to make a pure sports car just a little more affordable for the market, while channeling the legend of the storied Toyota nameplate. When compared to the 86, the Supra, according to Mr. Roqueza, “is a different concept.”

He maintained, “Of course, the 86 is looking at the AE86. That being its heritage, it’s geared towards mid-speed cornering and drifting. The Supra itself (is about having) driving resonance… it’s basically unifying the driver intention with the vehicle feedback. Designers wanted to make the driver feel that he’s in full control of the vehicle, and not have the vehicle control him.”

There was much at stake in the development of the Supra, with no less than Toyota Motor Corporation President Akio Toyoda himself scrutinizing the goings on. “The Supra is actually the car that he grew up driving, so this fifth-generation Supra is his brainchild, his baby,” explained Mr. Roqueza. “So, it was all hands-on deck in Toyota, especially the GR team. They had a lot of expectations and big name to live up to.”

The new GR Supra’s athleticism is clear from the get-go as it is stands low and wide, a look that Toyota engineers call “condensed extreme.” A large grille is flanked by large air intakes, and character lines extend to the flared spoilers and trapezoidal bumper with dual exhaust pipes and diffuser. It runs on large 19-inch forged aluminum wheels with custom-made Michelin tires. The headlamp assembly features six-lens LEDs integrating daytime running lights and turn signals, while the rear lamps combine turn, tail, and stop into one main ring. Dot-type LED backup lamps are located in the center of the lower bumper. A Follow-Me-Home lighting feature is also available.

The cabin is rendered in black with muted carbon accents. Alcantara sports seats are equipped with lumbar support and eight-way power memory adjust. The three-spoke leather steering wheel has both manual tilt and telescopic adjustment. A narrow, sectioned dashboard helps to facilitate forward visibility. Advanced heads up display (HUD), paddle shifters, 8.8-inch TFT-LCD touchscreen multi-information display, Bluetooth and USB connectivity, dual-zone push-type air-conditioning, and a 12-speaker high-fidelity surround sound system powered by JBL complete the accoutrements within.

The all-new Toyota GR Supra is priced as follows: P4.99 million (Prominence Red), P5.05 million (Lightning Yellow, Deep Blue Metallic, White Metallic, Silver Metallic, Ice Gray Metallic, and Black Metallic), and P5.09 million (Matte Storm Gray Metallic) and is available at Toyota Alabang, Toyota Commonwealth, Toyota Makati, Toyota Manila Bay, Toyota Otis, Toyota Pasong Tamo, Toyota Quezon Avenue, Toyota Bacoor, Toyota Batangas, Toyota Calamba, Toyota La Union, Toyota San Fernando, Toyota San Pablo, Toyota Cebu, Toyota Mabolo, and Toyota Davao City.

Energy efficiency group identifies priority tasks

By Victor V. Saulon
Sub-Editor

THE Philippine Energy Efficiency Alliance (PE2) will have to bolster its partnership with the government for at least four priority tasks, including making the organization the sector voice of market stakeholders as the Energy department crafts the implementing rules and regulations (IRR) of Republic Act No. 11285.

These tasks are among the immediate action plans of PE2, which claims to be the biggest group involved in energy efficiency in the country, after the passage of RA No. 11285 “An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects.”

In an e-mail interview, PE2 President Alexander Ablaza said his group seeks to be the sectoral voice of energy efficiency market stakeholders — whether energy efficiency end-users, investors or providers of energy efficiency technology, solutions or services.

RA No. 11285 was signed on April 12, 2019, with the Department of Energy (DoE) tasked to issue an IRR in the next four months.

Congress, for its part, has expanded the scope of the Joint Congressional Power Commission (JCPC) to reflect the expansion of its oversight powers to the entire energy sector. JCPC will be renamed the Joint Congressional Energy Commission (JCEC) in line with the passage of RA No. 11285.

“Next, PE2 would have to complement government’s efforts in increasing awareness of the law among market players, especially those which now have new obligations under the law,” Mr. Ablaza said.

“Third, it would have to assess the baseline market competencies and mobilize resources toward building capacities in the energy service company (ESCO) sector, and toward the training and certification of professionals tasked to perform energy management, measurement and verification and other ESCO specialists,” he added.

Lastly, Mr. Ablaza said PE2 would need to ensure that the new law will be implemented and enforced without delay and that the intent of legislation would have to be preserved through the next decade and beyond.

He said the market would be catching up with the new law and its IRR through the first two years.

“After switching back to mandatory implementation from a 29-year voluntary market regime, stakeholders will be adjusting to the obligations under the new law, staffing up with energy efficiency expertise, identifying energy efficiency project opportunities and seeking sources of capital to finance these new projects,” he said.

He expects the first “real market momentum” to be experienced only from years three to five after the passage of the law, even though several, smaller, and “lower-hanging” project opportunities could be accelerated for implementation in the first two years.

Mr. Ablaza said PE2 believes that two-thirds of the P12-trillion capital requirement for energy efficiency investments for the country to meet the DoE’s energy efficiency and conservation roadmap targets by 2040, would have to be mobilized from non-traditional self-financed or debt-financed means.

He said about P8 trillion would have to flow through off-balance sheet channels such as ESCO performance contracts, public-private partnership transactions and other large-scale bulk procurement and distribution programs for the government and residential sectors.

“PE2 hopes that the [IRR] will effectively make such non-traditional capital flows commercially viable, as Government is not expected to afford to bridge the capital gap through its annual budget appropriations,” he said.

He said PE2 hopes that fiscal incentive guidelines would fully respond to the needs of third-party investors, and allow an unrestricted range of technologies and solutions backed by detailed energy audits to be performed by DoE-accredited ESCOs.

“PE2 is likewise hopeful that the IRR would open the doors for more innovative procurement guidelines for the public sector to allow private capital and energy savings to finance energy efficiency retrofits in government facilities through multi-year performance contracts,” he said.

1...10,78410,78510,786...14,278Page 10,785 of 14,278
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube