MPIC logistics unit aims to break even this year

March 11, 2019 | 12:10 am

By Arra B. Francia
Reporter
THE logistics unit of Metro Pacific Investments Corp. (MPIC) hopes to break even this year, as it continues its expansion to become a leading player in the country.
The listed infrastructure conglomerate said that its logistics and systems group, which includes MetroPac Movers, Inc. (MMI), recorded a net loss of P642 million in 2018.
“They’re targeting to break even this year, so maybe next year they can be profitable,” MPIC President and Chief Executive Officer Jose Maria K. Lim told BusinessWorld on the sidelines of the company’s press briefing last week.
“At this time it’s still generating losses because it’s already building up it’s organization for full service but it hasn’t got enough contracts to sustain their bottomline.”
MPIC initially entered the logistics sector in 2016, when it acquired the assets of midsized corporate logistics provider Basic Logistics. MMI was established in partnership with the shareholders of Basic Logistics to provide shipping, freight forwarding and e-commerce services.
MMI has since acquired more than 400,000 square meters (sq.m.) of land in Cavite and Bulacan, which will be developed into covered warehouse spaces.
Mr. Lim said during a press briefing last week that MMI has increased its clients to 70 accounts from just six when they started out. These clients are mostly in the fast-moving consumer goods sector.
The logistics unit reported that average warehouse dispatch climbed by 3% to 60.2 million cases in 2018, as it focused on increasing its clients and broadening its services.
MMI’s strategy includes the construction of mega distribution centers and having a trucking fleet to support them.
“That would include cold storage capability. They’re midway through the strategy to get a larger chunk of the business from their existing clients,” Mr. Lim said.
“Because clearly the margins in that business are very competitive. They need to get a larger share to make it worthwhile for them,” he added.
While MMI’s operations are currently centered in Luzon, Mr. Lim said they would also like to expand to Mindanao. The company earlier said it is studying plans to purchase a 10-hectare lot in Davao City.
MPIC has also been expanding its logistics unit by acquiring existing firms, such as Ace Logistics in 2017 and Air21 in 2018.
The conglomerate booked a core net income of P15.1 billion in 2018, seven percent higher than the P14.1 billion it generated in the previous year. It attributed the increase to its expanded power portfolio alongside steady volumes from its toll road and water businesses.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

DMCI Homes plans to launch 2 condos in QC

March 11, 2019 | 12:09 am

THE property unit of DMCI Holdings, Inc. is planning to develop more residential condominiums in Quezon City, as it expects housing demand to be driven by government infrastructure projects.
In a statement, Dennis O. Yap, assistant vice-president for project development of DMCI Homes, said the company is looking to launch at least two more residential condominiums in Quezon City this year.
“Strong reservation sales of our ongoing projects indicate immense interest in the Quezon City property market and we are optimistic that the trend will continue in the coming years,” he was quoted as saying.
DMCI Homes earlier reported reservation sales rose 7% to P33.48 billion during the first nine months of 2018.
The company said it will launch Cameron Residences, located in Mapalad Street, Roosevelt Avenue, this year.
The 45-storey residential tower is located near the Unified Grand Central Station being built in North Avenue. The station will link the Light Rail Transit (LRT) Line 1, Metro Rail Transit (MRT) Lines 3 and 7, and eventually, the Metro Manila Subway.
DMCI Homes is still finalizing plans for another residential project in Quezon City.
“At present, we have three ongoing residential condominium projects in Quezon City, all of which are almost sold-out. All in all, we have 12 projects in the city which makes it the biggest host of our projects in Metro Manila,” Mr. Yap said.
Property consultancy firms have been pushing developers to put up more residential developments, especially in the Quezon City area, to take advantage of the opportunities brought about by the “Build, Build, Build” program by the government. — Vincent Mariel P. Galang

Better-than-expected profit boosts Metro Pacific’s share price

March 11, 2019 | 12:08 am

BETTER-THAN-EXPECTED earnings and renewed investor interest made the Metro Pacific Investments Corp. (MPIC) stock one of the most actively traded last week.
Data from the Philippine Stock Exchange showed that MPIC was the eighth most traded stock with a total of P881.31 million worth of 179.48 million shares having exchanged hands on the trading floor from March 4 to March 8.
Shares in MPIC closed at P4.92 apiece on Friday, down 1.2% from the previous day and up 7.7% on a week-on-week basis. For the year, the company’s shares were up by 6.7%.
In an e-mail interview, Unicapital Securities, Inc. Research Head Wendy Estacio ascribed the stock’s price movement to “better-than-expected earnings” driven by MPI’s power and toll road businesses.
“Investor interest in the stock was boosted by a recent grant of its petition to increase toll fees, particularly as it happens ahead of next month’s travel-frenzied Holy Week break,” Philstocks Research Head Justino B. Calaycay, Jr. said in an e-mail.
Last Wednesday, NLEX Corp. said it received the Toll Regulatory Board (TRB) go signal to collect P10 in additional toll fees in its open system or the fixed rate for vehicles traveling within Quezon City, Caloocan City, Valenzuela City, Malabon, Meycauayan and Marilao. The company was also allowed to collect an additional P0.18 per kilometer in its closed system, or the rates which are based on distance traveled. The higher toll rates will take effect on March 20.
In an e-mail, Luis A. Limlingan, managing director at Regina Capital Development Corp., noted of MPIC hospital unit’s plans to raise up to P20 billion in capital by late this year or early next year.
Metro Pacific Hospital Holdings, Inc. (MPHHI) is looking to raise P15-20 billion in fresh capital in the next two years to support its plan of having 30 to 40 hospitals in the future. In a press briefing last Tuesday, MPIC Chief Finance Officer David J. Nicol said the parent company is evaluating whether MPHHI should pursue an initial public offering or private placement to secure the funds.
MPHHI currently has 14 hospitals offering about 3,200 beds under its network. The company targets to further increase this network to 5,000 beds.
Meanwhile, MPIC reported its net income attributable to parent rose 7% to P14.1 billion last year compared to P13.2 billion in 2017. The company also noted its core net income of P15.1 billion in 2018, 7% higher than the P14.1 billion it posted in 2017 on account of a 10% increase in operating income.
Its power business contributed P10.8 billion, or 55% of net operating income, followed by those in toll roads (P4.4 billion); water (P3.8 billion); and hospitals (P771 million). On the other hand, its rail, logistics, and systems group reported a P248-million net loss during the period.
“We see consistent growth for the company as its businesses continue to be profitable. Such businesses are in essential industries such as water utility, electricity, toll roads, and hospitals. To an extent, these are inflation-resistant sectors as it delivers on basic necessities,” said Philstocks’ Mr. Calaycay.
Mr. Calaycay also noted MPIC’s toll roads business as a “consistent contributor” to the company’s top line and that the increase in toll fees “should push the year-on-year numbers from second quarter going forward.”
“[MPIC] is also continuing to be aggressive in investing in its healthcare business as it gears up towards its goal of 30-40 units over the next two years,” he added.
Moving forward, Unicapital’s Ms. Estacio noted MPIC’s growth drivers to remain in its power and toll road segments. “We are bullish on the group as utilities sector remains defensive,” she said.
Ms. Estacio forecasts MPIC’s revenue and net income to grow by 7% and 3% this year, respectively.
She placed the company’s support level at P4.50 per share and resistance level at P5.18 per share. “The trend is still consolidation phase and will be bullish if it stays above P5.00 per share in the short term,” she said.
For Philstocks’ Mr. Calaycay, the stock price “continues to be capped within the P5-P5.10 range.”
“If volumes are sufficient to support a break past this range, we could see the stock pushing towards a recent peak at P5.15, and onto P5.30,” he said.
“Given current market conditions however, and with its 2018 numbers posting but incremental gains, investors will require more impetus to propel the shares towards those points. As the euphoria over the rate adjustment in toll fees fade, share price may tend to continue consolidating just below the P5.00 [per share] mark.”
Regina Capital’s Mr. Limlingan pegged MPIC’s support and resistance levels at P4.80 per share and P5 per share, respectively.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Lourdes O. Pilar

Voyager turnaround expected by 2021

March 11, 2019 | 12:07 am

PLDT, Inc. said it may have to wait until next year or 2021 to see a turnaround in Voyager Innovations, Inc., after the digital innovations unit welcomed new foreign investors last year.
Voyager
Manuel V. Pangilinan, the telecommunications giant’s chairman, president and chief executive officer, said the focus for 2019 is to keep pushing the volume of business for Voyager.
“I think you have to build up to scale first before you could see… prospects of turnaround. The view that everybody’s taken is that let’s push it as hard as we can and then determine after X months, I don’t think it’s this year, determine say in 2020 or latest 2021 (if) there (is) light at the end of the tunnel,” he told reporters on the sidelines of the company’s briefing on its 2018 financial results last Thursday.
Mr. Pangilinan noted that its digital payments unit PayMaya Philippines, Inc. has continued to grow its business.
“I think we’ve seen signs that at least the PayMaya business, which is the core of this business, is growing in subs (subscriber) count and monthly active users and value throughput that goes through their system,” he said.
“We anticipate that will continue to grow each month of this year. And the unfortunate side effect of that is the losses will be significant.”
In 2018, PLDT incurred a loss of P3 billion in Voyager, a 150% increase from P1.2 billion in 2017. It also raised $215 million after offloading shares in the unit to Tencent Holdings Ltd.; Kohlberg Kravis Roberts & Co. (KKR); International Finance Corp. (IFC) and IFC Emerging Asia Fund, leaving it with less than 50% stake in the company.
“The volume of business is being pushed hard by all of us, by KKR, Tencent and ourselves,” Mr. Pangilinan said, noting the investors are giving them enough time and resources to help improve Voyager.
Mr. Pangilinan noted PLDT expects less financial burden from Voyager this year, considering the infusion of fresh funding from new investors.
“We don’t have any cash calls this year from Voyager… $215 million went inside the company, that’s about P12 billion. Their cash spend will be around P4-5 billion,” he said.
Aside from PayMaya, Voyager is also in charge of mobile remittance brand Smart Padala, financial technology arm FINTQnologies Corp., online loaning platform Lendr and free mobile browsing app Freenet.
PLDT posted an attributable net income of P18.92 billion in 2018, up 40.47% from in 2017 on stronger demand for data.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

S. Korea-backed project for Panay upland farmers may be replicated elsewhere

March 11, 2019 | 12:06 am

By Emme Rose S. Santiagudo
Correspondent
ILOILO CITY — A five-year program seeking to turn Panay’s upland farmers into direct distributors of their produce will be replicated in other parts of the country, Agriculture Secretary Emmanuel F. Piñol said.
“Our farmers have been nailed to the status of just being raw material producers… Today the farmers in Panay will be moving one level higher, from just producers of bean, cabbage, or tomatoes to farmers that plant, harvest, and market their products,” Mr. Piñol said during the turnover ceremony for the P65.5 million facility and equipment to various local government units and beneficiary farmers’ associations in Panay.
The Panay Island Upland–Sustainable Rural Development Project (PIU-SRDP) funded by the Korea International Cooperation Agency (KOICA) is now on its third and final stage, which focuses on local food marketing and building an integrated mechanism between marketing and finance in 11 municipalities of Panay Island.
Mr. Piñol said the project will open opportunities for farmers to become marketers, processors, and “agripreneurs.”
“Involving the farmers in the process is a very safe way of ensuring the sustainability of the project. If it is stakeholder-driven, then I would likely assume it will succeed. This is a very good example. We can actually replicate it in other parts of the country,” he said.
KOICA President Lee Mi-Kyung, in a news conference, said, “This project is quite special. This project seeks to establish the sustainable development system run by farmers in the rural areas, especially the uplands, which remain on the outskirts of development.”
The PIU-SRDP, launched in 2015, is a collaborative rural development project between KOICA and the Department of Agriculture (DA).
The implementing offices are Hankyong National University as KOICA-Project Management Consultant, and the DA Regional Field Office-Western Visayas.
The first phase focused on community development in 15 pilot upland barangays from four municipalities in the provinces of Antique, Capiz and Iloilo.
Phase II mainly focused on income-generating projects of 10 selected upland barangays, represented by eight recipient farmers’ associations.
During the ongoing third phase, ten Bayanihan Tipon Centers (BTC) were established as drop-off points for the produce.
Serving as the consolidation center for the products from BTC, the regional Local Food Terminal (LFT) in San Miguel, Iloilo was also set up and inaugurated in February.
DA-Western Visayas Executive Director Remelyn R. Recoter said with the continued growth in the region, she hopes that farmers will sustain the project and meet the food demands of the population as well as tourists.
San Miguel Mayor Marina Luz S. Gorriceta acknowledged that the challenge of sustaining the project now lies with the local governments and the farmer beneficiaries.

LNG hub project to be launched in mid-May — DoE

March 11, 2019 | 12:06 am

PHOENIX PETROLEUM Philippines, Inc. and the state firms of China and the Philippines are set to launch by May 13 the liquefied natural gas (LNG) hub project that they plan to jointly develop to serve the requirements of the country, government officials said.
“They are looking at having a ground-breaking early part of May.
Hinahabol natin ’yung two-year na magkaroon ng partial operation para by 2024 there is already a substitute for LNG in case wala na ’yung Malampaya,” Department of Energy (DoE) Secretary Alfonso G. Cusi told reporters last week.
The target launch date comes after Phoenix Petroleum, China’s CNOOC Gas and Power Group Co. Ltd. (CNOOC G&P) and Philippine National Oil Co. (PNOC) signed a memorandum of understanding (MoU) on Feb. 28 to jointly explore business opportunities related to the project.
“The group is being encouraged to sana — it’s a dream, I hope we can do it — sana bago mag May 13 makapag-groundbreaking kami,” said PNOC President and Chief Executive Officer Reuben S. Lista last week.
The MoU signing, which came after a series of engagement talks among the three parties, will allow them to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG, Inc., the project entity for the LNG project.
“The three parties will be discussing the business and commercial sharing,” said Mr. Cusi, who chairs PNOC. “Ang DoE, hindi na kami makikialam do’n (The DoE will not meddle).
Phoenix Petroleum previously said that the LNG hub project would break ground through its regasification and receiving terminal with a capacity of 2.2 metric tons per annum within the year. Commercial operations is targeted to start by 2023.
The facility is aimed at supporting the demand for a clean, competitive, and environment-friendly energy source in Luzon, and provide energy security for the country. It also plans to include the development of a gas-fired power generation facility.
“We have already issued the NTP (notice to proceed) for Tanglawan-CNOOC, and they are now partnering with PNOC,” Mr Cusi said.
“Ang pinag-uusapan pa lang namin ’yung LNG. Hindi pa namin pinag-uusapan ’yung banked gas,” Mr. Lista said.
He said the talks on the banked gas was just mentioned in passing in relation to the plan of Phoenix Petroleum to build a gas-fired power plant that is integral to the LNG hub project.
“It’s still part of the negotiation,” he said, adding that Phoenix Petroleum was the one making a study whether it would buy the banked gas. — Victor V. Saulon

Davao chocolate firm offers first-in-PHL vegan option

March 11, 2019 | 12:05 am

By Carmencita A. Carillo
Correspondent
DAVAO CITY — Chocolates are now thought to offer health benefits apart from being a sweet treat, but a Davao-based chocolate company is launching a vegan variety, in what is claimed to be a first for a Philippine producer.
“All our chocolates are healthy as they do not contain preservatives, palm or hydrogenated oil,” Coscao Chocolates Production Manager Jayson M. Balacano told BusinessWorld.
Coscao owner Patrick Belisario, a native of Cagayan de Oro City who is now based in Davao, took charge of research and development for the chocolates, which now comes in six flavors, including the vegan variety.
“Unlike other more commercialized, mass produced chocolate bars loaded with white sugar, additives, coloring and chemicals, our homemade, bean-to-bar chocolate has basically five ingredients,” he said.
The ingredients are: locally-sourced cacao beans, homemade cocoa butter, organic coconut sap sugar, organic virgin coconut oil, and real vanilla pods.
Coscao started production in May 2018, sourcing raw cacao from cooperatives in Calinan, Davao City. It manufactures its chocolates in a small facility in the central Davao.
“We source up to 120 kilos of cacao beans per month from these cooperatives at P160 per kilo, which is a bit expensive for us considering that we used to buy it at P130 per kilo, but the price is going up,” Mr. Balacano said.
Mr. Belisario said the company marketing its chocolate as a superfood and power bar.
Mr. Balacano said that on a regular full production day, the company produces up to 12 kilos of chocolates, equivalent to around 150 bars at 80 grams each.
“We are new in the market so we are still marketing our chocolates and joining bazaars,” he said, adding that the company recently participated in an event in Thailand.
“The challenge is how to get more cacao since we are usually faced with lack of supply,” Mr. Balacano said.
The entry of Coscao and its vegan chocolate has added to the varieties available in Davao City Department of Agriculture-Davao Regional Agriculture & Fishery Information Section Chief Noel T. Provido said.
“The region’s cacao industry is not just about cocoa beans but there are many value-added products like cacao nibs, cacao wine, cacao beauty soap, cacao vinegar and even cacao pods turned into charcoal,” Mr. Provido said.
The Regional Development Council (RDC) has declared Davao City and the Davao Region as cacao capital of the Philippines.
National Economic and Development Authority-Davao Regional Director Ma. Lourdes D. Lim said the RDC declaration acknowledges the significance of adopting regional branding for the cacao industry.
The region produces about 80% of the Philippine’s total cacao output.
According to Philippine Statistics Authority data, cacao production in the region was 5,073.83 metric tons (MT) in 2016, up from 4,920.27 MT in 2015.
The RDC resolution noted that there are currently 20,000 cacao farmers in the region and over 100 nurseries with a combined production capacity of about 10 million seedlings a year. The region also has 10 cacao training centers.
Senator Cynthia A. Villar, chair of the committee on agriculture, said in a recent interview here that global demand for cocoa products is expected to hit between 4.7 million to 5 million MT by 2020.
“If we want to supply the gap in the global demand, the industry should meet the Department of Agriculture’s goal of increasing production by 40% to 100,000 MT of dried cacao beans by 2022,” she said.

T-bill, T-bond rates seen mixed

March 11, 2019 | 12:05 am

By Karl Angelo N. Vidal
Reporter
RATES OF government securities on offer this week are expected to end mixed due to expectations of a cut in banks’ reserve requirement ratio, as well as demand for fixed-income securities.
The Bureau of the Treasury (BTr) is offering P20 billion worth of Treasury bills (T-bill) today, broken down into P6 billion each for the three- and six-month instrument and another P8 billion in one-year papers.
The BTr will also offer on Tuesday reissued 10-year Treasury bonds (T-bond) with a remaining life of nine years and 10 months amounting to P20 billion.
A trader interviewed before the weekend said rates of the T-bills will likely move sideways or five basis points (bp) higher from the previous auction.
The Treasury made a partial award of the T-bills offered last week, borrowing just P3.939 billion out of its P20-billion program for Monday’s auction.
Rejecting all bids for the three-month and one-year papers, the six-month securities fetched an average yield of 5.975%, slightly lower than the 5.978% seen during the previous auction.
However, another trader said the auctions this week may fetch lower rates, projecting that the T-bills on offer will fetch rates 10 bps lower from the previous exercise.
For the T-bonds, the first trader expects it would fetch an average rate between 6.15%-6.25%, while the other gave 6.1%-6.25% range.
In January, the government made a full award of the 10-year T-bonds it placed on the auction block out of bids totalling P37.135 billion. It fetched a coupon rate of 6.8745%.
At the secondary market on Friday, the three-month, six-month and one-year papers fetched a rate of 5.434%, 5.878% and 6.08%, respectively, while the yield on the 10-year IOUs stood at 6.101%.
“The auctions this week could fetch lower rates on CPI (consumer price index) outlook and expectations of RRR (reserve requirement ratio) cut,” the second trader said in a text message on Friday.
On Wednesday, new Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said he wants to “expedite” the process of slashing reserve requirements for big banks from the current 18% as it serves as a “tax” on lenders.
However, he clarified on Friday that the RRR cut is solely his decision, saying the monetary authority’s policy “will be determined by analyses, evidence-based, and will be decided upon by the [Monetary Board].”
The central bank slashed big banks’ RRR by two percentage points in two moves last year to 16%, in line with the late BSP Governor Nestor A. Espenilla’s target to bring it down to the single-digit level by 2023.
Mr. Diokno also said the central bank can start considering cuts in policy rates.
Benchmark interest rates currently range from 4.25-5.25%, reflecting the cumulative 175-basis point increase in policy settings last year which were meant to arrest rising inflation expectations.
Meanwhile, the first trader said the T-bill and T-bond auctions may see demand twice the offered amounts on the back of strong liquidity brought by the “strong” peso and demand for fixed-income due to high yields.
The peso reeled last week, logging a 1% slump in value on Tuesday following the appointment of Mr. Diokno to take the helm of the BSP. The peso finished at a two-week low of P52.25 per dollar last Friday.
“There’s incoming demand for the 10-year bonds, so we expect it will have some effect on the yields. There might be some uptick,” the first trader said.
For this quarter, the government is planning to borrow P360 billion from the local market. Some P240 billion will be borrowed this quarter through 12 weekly T-bill auctions. On the other hand, P120 billion worth of T-bonds will also be issued through six fortnightly auctions.

Partial operation of CALAX targeted by July

March 11, 2019 | 12:05 am

By Denise A. Valdez
Reporter
A UNIT OF Metro Pacific Tollways Corp. (MPTC) is targeting to open a portion of the Laguna section of the Cavite-Laguna Expressway (CALAX) by the third quarter, and is hoping to start the construction of the Cavite section in a few weeks.
MPCALA Holdings Inc., the private concessionaire for the project that will link the Manila-Cavite Expressway (CAVITEx) to the South Luzon Expressway (SLEx), said they plan to start partial operations of the toll road before July ends.
“The first 10 kilometers…from Mamplasan up to Santa Rosa Tagaytay Road…, we are targeting to open by July this year,” MPCALA Holdings President Roberto V. Bontia said in a text message on Sunday.
When asked for the company’s timetable for the Cavite section, he said the start of construction is expected “either last week of March or first week April.”
“Our right-of-way team said we only need 3 more PTEs (permit to enter) in subsection 3 of the Cavite side of CALAX for us to ground break,” Mr. Bontia added.
The P35.43-billion CALAX is a 45.29-kilometer expressway that aims to reduce travel time between CAVITEx and SLEx to 45 minutes from the current 90 minutes. The concession agreement between the government and MPCALA Holdings indicates a toll fee of P4.50 per kilometer, or P45 for the first 10 kilometers that will open on the Laguna segment.
In a Feb. 28 chance interview, Mr. Bontia told reporters that for the Cavite segment, the first seven kilometers from Governor’s Drive Interchange to Silang (Aguinaldo) Interchange is where they will begin construction.
“Section 3, ’yung first seven kilometers noon [the first seven kilometers], that’s what we’re going to start construction by March. Hopefully by the time na matapos ’yung seven kilometers na ’yun, ’yung Sections 2 and 1 nung Cavite, ang target ng right-of-way team is to deliver that by June. [Hopefully by the time we finish the seven kilometers, we could start with Sections 2 and 1. The right-of-way team targets to deliver it by June],” he said.
The whole CALAX alignment from Kawit, Cavite to Biñan, Laguna is expected to be completed by 2021.
MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong-Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

P55.3M worth of Davao-Region crops destroyed by El Niño

March 11, 2019 | 12:04 am

DAVAO CITY — About P55.3 million worth of crops in Davao Region were reported to have been destroyed due to the dry spell brought about by the current El Niño.
Roy Jose C. Pascua, Department of Agriculture-Disaster Risk Reduction Management focal person, said over the weekend that the most severe damage was sustained by Matanao, Magsaysay, Hagonoy, Kiblawan and Bansalan, all in Davao del Sur, with about 2,000 hectares affected.
“We have deployed open-source water pumps for irrigation,” he said, adding that the next contingency plan involves cloud seeding.
In Davao City, Councilor Marissa S. Abella, chair of the committee on agriculture, proposed the adoption of drip irrigation systems to help farmers.
Ms. Abella also urged farmers to adopt new technology to combat drought and improve production.
“We have to upgrade our agriculture practices by exposing them to new technologies. Among those is drip irrigation,” she said, citing a farm in the Paquibato district that is using the system for its Cavendish banana crop.
A hectare of farmland would need about P70,000 worth of investment to set up a drip irrigation system, including the reservoir and other mechanisms. — Carmelito Q. Francisco

21 firms show interest in Malolos-Clark railway contract

March 11, 2019 | 12:04 am

THE GOVERNMENT said 21 companies expressed interest in its auction for the contract to build the Malolos-Clark segment of the North-South Commuter Railway (NSCR) project, also called the Philippine National Railways (PNR) Clark Phase 2.
In a statement on Sunday, the Department of Transportation (DoTr) said 21 companies from seven member countries of the Asian Development Bank (ADB) attended the project’s pre-bid conference in Pasig City last Thursday, Mar. 7.
“Attended by 21 companies from 7 ADB-member countries and representatives from 4 embassies, the Pre-Bid Conference provided a venue for interested bidders to seek clarifications on the bidding documents launched last Jan. 30,” it said.
The 53-kilometer Malolos-Clark segment of the NSCR project is funded by a $2.75-billion loan from ADB, hence the need to follow its procurement policy which requires bidders to come from ADB member countries. It aims to connect Manila to the Clark International Airport in less than an hour.
The contract for auction consists of three packages, covering the engineering works for approximately 44.8 kilometers of railway viaduct, bridges and a total of five elevated stations.
The DoTr said it is also bidding out more railway contracts soon, two of which are funded by the ADB and one by the Japan International Cooperation Agency.
“Two more ADB-financed Civil Works Contract Packages will be launched by 2^nd Quarter 2019, while the Japan International Cooperation Agency (JICA)-financed Electromechanical Systems and Rolling Stock (trains) Contract Packages will be launched soon after,” it said.
The Malolos-Clark railway is part of the P777.55-billion NSCR project. The other segments are the 56-kilometer line from Calamba, Laguna to Tutuban, Manila; and the 38-kilometer portion from Tutuban to Malolos, or PNR Phase 1.
Japanese firm Sumitomo Mitsui Construction Co., Ltd. won the contract for the Tutuban-Malolos line last year, which broke ground last month. — Denise A. Valdez

Power dressing

March 11, 2019 | 12:04 am

THE EPISTOLARY novel Les Liaisons Dangereuses, published in the 18^th century, bore this warning from one of its main characters, the Marquise de Merteuil: “Older ladies must never be crossed: in their hands lie the reputations of the young ones.” In context, the Marquise was in the middle of plotting the downfall of a younger, naive rival.
Criselda Lontok’s fashion shows always start and end early. Her most recent show at Rustan’s Makati last week ended at least an hour before sunset. Some kids, of course, are used to evening fashion shows which turn into all-nighter raves, but we suppose Ms. Lontok’s fans, grandes dames, have more important things to do than pass out drunk in a cubicle somewhere. After all, their empires (or their husbands’) won’t build themselves.
Ms. Lontok’s Spring/Summer collection for Rustan’s present a lightness that tempers the gravitas of the woman who usually wears Criselda Lontok. The line is also current, as reflected in voluminous tops that have been seen on the Paris runways recently. Socialites Linda Ley, Yoli Ayson, Lilibeth Campos, Suzette Hahn-Lopez, Ruth Rodriguez, and Gina Mohnani all walked the runway at Rustan’s. Bell sleeves, ruffles, and textured fabrics are all the rage in Ms. Lontok’s collection; as are bold — very bold — colors and prints: think hot pink tops, coupled with white pants printed with large pink roses. The overall effect is of a woman announcing her arrival without a word, but with a single look.
Ms. Lontok began designing for Rustan’s in 1983, but first began climbing that corporate ladder even earlier. Seeing that she’s been in the business for a long time, she keeps her mind fresh and her eye young.
“I always surf the Net, and I look at different magazines.” Of course, she says, “I don’t take [the fashions] as [they are]. I always adjust it to my clients, so they won’t be fashion victims.”
Designers don’t just sell garments. What designers really sell is a dream: how would you live your life in these clothes? Ms. Lontok says about the dream she sells: “Elegance all the way.” She does have a reputation of dressing some of Manila’s most powerful older women, who have, despite the constraints of well-bred tradition, been able to work and play. “I want them to look pretty and elegant at all times.”
These women, of course, have managed to build their families as well, and all around the nation, a young woman is now looking at her lola or her mother, building the dream that if she plays her cards right, she too, can become a Criselda Lontok woman when she grows up.
Speaking about what the young think of her clothes, she said, “At first they think that it’s only for the lolas and the mommies. But now, they’re thinking, ‘I can wear it.’ At least, they’re not looking to adapting to the lola fashions. They have their own, and they can find it here.”
At her age (it’s hard to ascertain; Ms. Lontok is as well-maintained as her clients), it’s surprising to find out that she has even expanded her line: Ms. Lontok now makes bags and shoes, the shoes with a decidedly polite but powerful stance, with expressive heels and buckles.
“It’s still going crazy,” she said. Asked about why she has lasted so long in the business, she said, “I’m a very practical person. I come out with styles that are not really out-of-this-world.”
Asked if she ever plans to retire, she said, “No — as long as I’m alive, as long as I’m strong.” — Joseph L. Garcia

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