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Manila Water gears capex plans to boost wastewater treatment business

MANILA Water Co., Inc. has earmarked up to P197.8 billion for capital expenditure between now and the end of its concession agreement in 2037, more than half of which at P115 billion will go towards building new wastewater treatment plants and related facilities, company officials said.
“A huge component of the capital investment program is anchored on wastewater,” Nestor Jeric T. Sevilla Jr., Manila Water head of corporate strategic affairs, said in a briefing on Friday in Quezon City.
“Since 1997, we’ve done a lot. We a lot remains to be done),” he said.
The company called the media briefing to give its side after allegations were made during public hearings that it and the other water concessionaire in Metro Manila had been remiss in meeting their obligations.
Manila Water is the contractor of state agency Metropolitan Waterworks and Severage System (MWSS) for the Philippine capital’s east zone. From 1997 to 2018, its total investment in wastewater infrastructure has totaled P33 billion.
Arnold Jether A. Mortera, Manila Water head of used water operations, said the new investment in wastewater or used water facilities would be allocated gradually.
Aside from the water treatment plants, funds will also be spent on pumping stations, network systems, related facilities and upgrades.
He said the construction requires building a sewage collection system that feeds into the treatment plant. The two facilities always go together, with the first one requiring the tougher task of digging through roads to build the conveyance facilities.
Of the total capital expenditure for wastewater facilities, up to P38.4 billion has been programmed for between 2018 and 2022, covering the five-year period for which Manila Water sought approval from the MWSS regulator.
Mr. Sevilla said one of the reasons why the budget had been programmed until 2037 is because the spending would have an impact on the water tariff to be collected from consumers.
“We don’t want the customers to be burdened with a big hit in the tariff,” he said. “The roadmap is constructed in such a way that the effects on the tariff would be gradual.”
The company said that by 2022, Manila Water’s wastewater treatment facilities should have covered 38% of its concession area. Ahead of full coverage, the company will continue offering desludging services.
“While we are committed to meet full sewerage coverage by 2037, in the interim we have to do something,” said Kristoffer Eduard M. Rada, Manila Water head of public policy.
“That desludging program is the stop-gap measure,” he said.
However, he said the company does not have the power to compel households to avail of the desludging service. He added that some local government units have supported the effort by issuing mandatory ordinances.
Until the end of the concession period, the company will implement projects in two or three phases. Seven projects are set to start by 2022, while the rest will begin construction from 2023 onwards.
The sewage treatment plants (STPs) to be built are designed to cumulatively collect and treat up to almost 950 million liters per day (MLD) of wastewater from 7.5 million population in the east zone.
Manila Water’s budget will also cover the rehabilitation of existing sewer lines and the upgrade of operating STPs to meet the standards of the Environment department for biological nutrient removal in the wastewater treatment process.
The company currently operates 38 STPs and two septage treatment plants with a total capacity of 310 MLD. They are designed to serve 22% of the total water service connections. Coverage in terms of sewer connection is now at 15%, serving a population of about 553,061.
In 2018, desludging services covered 1.3 million population from cleaning and emptying 112,836 septic tanks.
Of Manila Water’s ongoing wastewater infrastructure projects, the one nearest completion is the Ilugin STP that will serve the sub-catchment area of north and south Pasig. Once completed in 2020, the facility will have a capacity of 100 MLD, with its sewerage system serving up to 765,000 households. — Victor V. Saulon

URC shrugs off PCC rejection of sugar deal, to seek other opportunities

UNIVERSAL Robina Corp. (URC) said it continues to seek opportunities that will strengthen its business after the antitrust regulator rejected its plan to buy the sugar milling and refinery unit of Roxas Holdings, Inc.
“URC continuously looks for opportunities to attain greater production efficiency which in turn leads to the provision of quality products at affordable prices to consumers,” the food company said on Friday.
URC and Roxas Holdings separately confirmed receipt of the decision issued by the Philippine Competition Commission (PCC) to reject the acquisition of the milling and refinery assets of Central Azucarera Don Pedro Inc. (CADPI).
“The decision by the PCC does not materially affect the business plans of URC,” URC told the stock exchange.
“URC accepts the PCC decision and affirms its commitment and support to the efforts of government for a strong market economy,” it added.
URC said it had entered into the agreement with Roxas Holdings with the closing of the sale transaction subject to, among others, obtaining the approval of the PCC.
The company said it proposed to acquire CADPI’s assets in Nasugbu, Batangas with the objective of attaining greater production efficiencies.
It said with that goal in mind, it was “convinced that it would bring about such efficiencies that would translate to better sugar planter and consumer welfare driven by a more stable and profitable sugar production industry in Southern Luzon.”
“We sought to address the concerns expressed by the PCC regarding the potential unintended consequences of such proposed transaction, offering commitments and safeguards where appropriate,” it said.
“Despite such efforts, the PCC in the exercise of its mandate, decided not to allow the proposed transaction to proceed,” it added.
In a statement dated Feb. 14, the PCC said it found URC’s acquisition of its only competitor in the sugarcane milling services market leads to a monopoly in Southern Luzon.
URC’s mill is in Balayan, Batangas.
The PCC had raised competition concerns about the proposed acquisition, with the parties voluntarily submitting commitments “but these failed to sufficiently address the competition concerns.”
“The prohibition prevents this deal from creating a monopoly in the relevant market that could harm the welfare of the sugar cane planters. It is the duty of the Commission to prevent the creation of monopolies when applying the merger control powers conferred on it by the Philippine Competition Act,” PCC Chairman Arsenio M. Balisacan said.
The PCC said both mill operators are in Batangas but the monopoly to be created by the merger would substantially reduce competition in the sugar milling services market not only in Batangas, but also in Cavite, Laguna, and Quezon.
On Friday, URC rose 1.53% to P146, while Roxas Holdings was up 0.67% at P3.02. — Victor V. Saulon

RHI to seek expansion opportunities after PCC rejects deal

ROXAS Holdings Inc (RHI) said that it will continue to pursue further options to expand its operations in Batangas and Negros after the Philippine Competition Commission (PCC) rejected the proposed sale of its Nasugbu sugar mill to Universal Robina Corp, (URC).
“The RHI Group will continue to operate CAPDI (Central Azucarera Don Pedro, Inc) PCC as it explores other options to further enhance its operations in Batangas and Negros,” RHI said in a statement late Thursday.
“The group is saddened by the unfavorable decision from the Commission because of the lost opportunity to advance the sugar industry in the Southern Luzon area. Both URC and CAPDI are currently extremely under-utilized because of the scarcity of sugar cane supply in the area, which to date, is in a continuously precipitous decline,” RHI said.
The PCC, in a decision published on Thursday, said that its decision not to authorize the sale prevents the creation of a monopoly which could be of harm to sugarcane farmers.
“A merger-to-monopoly deal is among the most detrimental types of business transactions. The URC takeover removes its only competitor, erodes the benefits of competition for the sugarcane planters and leaves market power at the hands of a single provider in an area,” PCC Chairman Arsenio M. Balisacan said in a statement.
URC said that it initiated the proposed transaction, expecting to create efficiencies. However it noted that the PCC decision “does not materially affect its business plans.”
RHI meanwhile said: “We strongly believe consolidation of mills will bring about efficiencies for the benefit of all stakeholders.”
RHI reported a consolidated net loss of P197 million in the fourth quarter of 2018, up 79.1% from a year earlier, due to weak sugar prices.
On Friday, RHI closed at P3.02, up 0.67%. — Reicelene Joy N. Ignacio

Peso weakens further as dollar bucks weak retail data

THE peso declined further against the dollar on Friday as market participants pushed the US currency higher despite disappointing retail sales data in the US.
The peso ended the week at P52.43 against the dollar, five centavos weaker than the P52.38 finish recorded on Thursday.
The peso opened the session slightly stronger at P52.35, strengthening to a daily peak of P52.29, and latter weakening to a low of P52.50.
Market volume was $756.9 million, down from $1.097 billion the previous day.
A foreign exchange trader said on Friday that momentum in favor of the dollar is “still going up,” with market participants seen bidding up the US currency.
“Despite weaker retail sales in the US, there’s still support to drive the dollar higher,” the trader said in a phone interview.
The US Commerce Department reported on Thursday that retail sales declined 1.2% in December, the biggest decline since September 2009, indicating a sharp slowdown in domestic consumption at the end of the year.
“The peso weakened after global growth fears heightened following the record low US December retail sales data, which noted a slump in American consumer spending despite expectations of a stronger reading due to the holiday season last year,” another trader said.
Meanwhile, the first trader expressed the belief that the Bangko Sentral ng Pilipinas (BSP) may have intervened.
“We think the central bank is already there to cap the peso at P52.50, as we saw agent banks near that level,” the trader added.
The BSP sometimes conducts “tactical interventions” to temper any volatility in the peso. — Karl Angelo N. Vidal

WANTED: Cadet Pilots for the Philippines’ leading carrier Cebu Pacific opens applications for new batch of Cadet Pilots

Applications are open for a new batch of Cadet Pilots who will be trained to become full-fledged aviators for Cebu Pacific (CEB). CEB will be recruiting 16 candidates who will undergo a “study now, pay later, zero-interest” training program to become full-fledged commercial pilots with guaranteed employment with the airline.
Application period for the sixth batch of Cebu Pacific Cadet Pilots will run from February 15 to 24, 2019. Interested applicants may visit http://www.flyfta.com to apply for the program. Applications will open starting February 15, 2019 at 12:00 noon.
The Cebu Pacific Cadet Pilot Program is open to all Filipino citizens who are college graduates who are proficient in English. There are no preferred college degrees, and applicants need only have an average grade of at least 70% or its equivalent in subjects related to Math, Physics and English.
The program entails 52 weeks of week integrated flight training, theory and education at Flight Training Adelaide (FTA) in Australia. They will undergo learning modules, train in a flight simulator and then on to an actual aircraft. Successful candidates will receive Diplomas of Aviation for Commercial Pilot License – Aeroplane, Instrument Rating, and for Pilot in Command. They will also undergo an additional four weeks of training to obtain a Pilot’s License under the Civil Aviation Authority of the Philippines.
CEB cadet-pilots need not worry about expenses related to the flight training, as the airline will shoulder the costs first—including a stipend, and amortize the payment for the course while they are employed.  The entire program will be financed by Cebu Pacific, and successful cadet-pilots who enter the CEB corps of pilots will reimburse the cost of the program through salary deduction over a maximum of ten years at zero-interest.
There is no application fee for the program. The application process begins with an online pre-screening. This is followed by an on-site screening for core skills and pilot aptitude tests, among other examinations where a fee of AU$425.00 (about PHP19,000) will be charged. FTA will screen and shortlist all the candidates. Cebu Pacific and FTA will then jointly select the final Cadet Pilots through a final interview and deliberation.
Fifty-eight CEB cadet-pilots are currently undergoing training at FTA in Adelaide, Australia. A fifth batch, comprised of 16 cadet-pilots, is currently undergoing final briefings and pre-departure training and will depart for FTA in April 2019. The five batches of cadet-pilots were selected from over 30,000 applicants who submitted applications online and went through the testing, screening and interview process.
For more information, visit http://www.flyfta.com/pilot-training/cebu-pacific-cadet-program.

Insurers enticed on infrastructure

THE GOVERNMENT has moved to encourage insurers to invest in infrastructure in order to boost funds for this state priority, by counting such investments in regulators’ computation to determine if these firms meet their minimum net worth requirement.
The Insurance Commission on Dec. 28 last year issued Circular Letter No. 2018-74 which set guidelines for insurance and reinsurance firms to “invest in debt and/or equity security instrument for the infrastructure projects under Philippine Development Plan” in order to help them “comply with the minimum net worth requirement” set by the regulator.
Insurance companies may participate in construction, financing or operation and maintenance contracts involving projects like highways; land reclamation; railways; airports; fish ports; power facilities; irrigation; education and health infrastructure; government buildings; housing projects; public markets; warehouses; telecommunications facilities; water supply and sewerage facilities; as well as environmental, solid waste management and climate projects, among others.
Insurance Commissioner Dennis B. Funa said in a press release on Thursday that “[t]his circular is aimed at encouraging insurers to invest in domestic infrastructure projects to boost our economy and to reap the benefits of portfolio diversification and higher return.”
The circular lists documents required to be submitted to the commission in order to help it assess the viability of the proposed investment.
“Before an investment in infrastructure is approved by the insurance regulator, insurers are required to submit the financial statements of the infrastructure projects which will be evaluated by the regulator to determine the risk impact on the capital of the insurer,” according to the circular.
Philippine Life Insurance Association, Inc. (PLIA) President Olaf Kliesow said late last month: “The insurance industry holds a lot of assets and we’re looking for long-term investment.
“The long-term investment portfolio in the Philippines is limited, and to have vehicles where we can invest long-term — 2030 or even longer years — will be very welcome,” Mr. Kliesow told reporters on the sidelines of PLIA induction ceremony on Jan. 31.
“This could mean all kinds of projects, whether this is railway or bridges, through PPP (public private partnership) projects… several ways this could happen, but what is important is to have a framework that supports this.”
Finance Secretary Carlos G. Dominguez III had encouraged the insurance sector to invest more in the government’s stepped-up infrastructure development program. “I urge you to more closely review the investment opportunities opened by the infrastructure program and make a conscious effort to participate. It not only makes sound business sense to do so, it is also a patriotic thing to do,” Mr. Dominguez told insurers at a PLIA event in August last year.
The government has embarked on an P8-trillion infrastructure development program until 2022, when President Rodrigo R. Duterte ends his six-year term, in an effort to boost economic growth to 7-8% until then from a 6.3% annual average in 2010-2016.
Out of the proposed P3.757-trillion national budget for 2019, a total of P909.7 billion will be spent on flagship projects under the Duterte administration’s “Build, Build, Build” program.
A check with the Insurance Commission showed insurers’ investment in state infrastructure projects edging up to P16 billion last year from P15.1 billion in 2017.
NOW COUNTED AS ASSETS
“For purposes of determining the net worth of an insurance and reinsurance company, investments in infrastructure projects duly approved by the Commission shall now be considered as admitted assets,” the circular read.
Michael F. Rellosa, deputy chairman of Philippine Insurers and Reinsurers Association, said in an interview that his group welcomes any measure that would increase investment opportunities for non-life insurers which will help them beef up their net worth.
“This will be more attractive for us because, before, the IC was very strict in terms of investments. They were only letting us to invest in government securities, which bear small interest. Now, any addition to that will be very welcome,” Mr. Rellosa told BusinessWorld in a telephone interview.
Insurers are beefing up their capital ahead of the upsized minimum statutory requirement of the commission, whereby insurance companies should have at least P900 million in net worth by the end of this year and P1.3 billion by 2022 from the current P550 million.
The Amended Insurance Code of the Philippines also requires industry entrants to have at least P1 billion in paid-up capital before opening business.
Mr. Funa had expressed concern about some non-life insurance companies not being able to meet the P900 million net worth requirement by yearend, as he encouraged such businesses to seek investors or merge with other challenged peers. — Karl Angelo N. Vidal

Marawi rehab drive raises nearly P42B

By Melissa Luz T. Lopez
Senior Reporter
THE GOVERNMENT has so far raised nearly P42 billion for the rehabilitation of Marawi City, the Department of Finance (DoF) said, representing two-thirds of the amount needed to rebuild the war-torn city.
In a statement, the department said it now has P41.81 billion for the Bangon Marawi Comprehensive Recovery and Rehabilitation Program, although this was still short of the P67.99-billion budget the government expects to spend for its five-year implementation.
The program involves rebuilding roads and key infrastructure, as well as provision of livelihood and shelters for residents.
The bulk of the funds were committed by development agencies worth a total of P35.17 billion, representing loans and grants.
Some P6.64 billion came from humanitarian aid pledged by multilateral lenders and bilateral partners.
The capital of Lanao del Sur was devastated after a five-month battle between government forces and Islamic State-inspired militants from May to October 2017, displacing thousands of families and leaving the city in ruins.
Global lenders like the World Bank, the United Nations, the Asian Development Bank and the International Fund for Agricultural Development committed to extend funding aid for Marawi during a pledging session held in Davao City in November last year.
Other donors included the governments of China, Japan, the United States, Australia, Germany, Korea, Spain and Italy.
Of the amount, DoF Assistant Secretary and spokesperson Antonio Joselito Lambino II said that P12.4 billion has been released. Broken down, P10.9 billion was disbursed for relief and livelihood assistance projects, as well as for the construction of transitional shelters and evacuation centers, while P1.5 billion was released to the National Housing Authority.
Mr. Lambino said that full recovery of the city will take “two to three years to complete.” Earlier this month, officials from the Philippine and Japanese governments broke ground to rebuild the Marawi Transcentral Road, which will be built using official development assistance.
“A city as damaged as Marawi requires a long-term rehabilitation program. With some development partners, the project preparation alone may last up to three years from the project conception to the start of the construction or implementation,” Mr. Lambino was quoted as saying in the statement.
“We are moving faster than business-as-usual.”
The government previously said that it will sell “patriotic bonds” in order to raise the remainder of the budgetary needs for the Marawi rehabilitation road map.
Finance Secretary Carlos G. Dominguez III has pegged the amount at P40 billion, with the first tranche expected to raise at least P13.5 billion from a float of retail Treasury bonds.
Treasury officials, however, said they are still studying the timing for the issuance.

Hot money off to a strong start

MORE FLIGHTY foreign funds entered the Philippines in January to post a two-month high, with more investors buying local stocks amid hopes that trade tensions between the United States and China will soon be resolved.
The month saw $762.82-million foreign portfolio investment net inflows, sustaining such inflows for a third straight month, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday. The latest amount tripled from the $278.11-million net inflows in December and was nearly five times the year-ago $162.16 million.
Such investments are called “hot money” as these funds enter and leave the country with ease with any market-moving development.
This is also the biggest net inflow seen since the $832.07-million net inflows recorded in November last year.
Gross fund inflows amounted to $2.062 billion in January, which were the biggest such flows recorded since March 2018 and were 27% more than the $1.623 billion that entered the country in January 2017. These bets were partly offset by $1.299 billion in withdrawn funds that were 11% less than the year-ago $1.461 billion.
“This may be attributed to investor optimism arising from the easing trade tension between the US and China and the decline in inflation alongside the increase in net foreign buying in PSE (Philippine Stock Exchange)-listed shares in January 2019,” the BSP said in a statement.
The US and China agreed to a three-month truce and paused their retaliatory export tariffs against each other last month, kicking off with a bilateral meeting in Beijing.
Back home, the bellwether PSE index saw marked recovery as net foreign buying propelled a return to the 8,000 level.
Appetite for local shares recovered in January to account for 71.6% of the hot money tally, which in turn resulted in $506 million in net inflows. These placements mostly went to holding firms; property companies; banks; food, beverage and tobacco companies; and retail companies, the central bank said.
On the other hand, some 28.4% of the funds went to peso-denominated government securities and time deposits, which resulted in $256 million in net inflows.
Investors from the United Kingdom, the United States, Singapore, Norway and Hong Kong were the biggest sources of foreign funds, with a combined share of 74.7% of gross inflows.
At the same time, 78.4% of withdrawn investments went to the US, as market players still regarded that economy as the safe haven.
The January inflows put hot money well ahead of the BSP’s forecast of a $200-million net outflow for 2019.
Hot money settled at a $1.204-billion net inflow last year, beating the central bank’s expectations of a $100-million outflow for the year.
Market analysts attributed last year’s surprise recovery to better investor sentiment in the last few weeks of 2018, on the back of easing inflation in November and December and bargain hunting at the Philippine Stock Exchange.
On the other hand, the BSP said the implementation of the first tax reform package provided greater optimism for foreign investors to make bigger bets in local stocks last year. — Melissa Luz T. Lopez

Netflix row riles Berlin Film Festival

BERLIN — A row over whether films produced for streaming platform Netflix should be shown at the Berlin Film Festival has overshadowed the premiere of Elisa & Marcela, Isabel Coixet’s tale of two Spanish lesbians.
Independent arthouse cinema operators in Germany wrote to German Culture Minister Monika Gruetters and Berlinale director Dieter Kosslick on Monday demanding that the film be withdrawn from the competition.
“The Berlinale stands for the big screen, Netflix for the small screen. We want it to remain that way in future and we don’t want the world’s biggest festival in terms of audience — with more than 300,000 moviegoers — to become a television festival,” they said.
But a spokeswoman for the Berlinale said the film was eligible for competition because it is due to be shown in Spanish cinemas.
Netflix has stirred unease in the traditional movie industry by encouraging people to watch films at home rather than go to the cinema. Major theater chains refuse to show Netflix films, and some top directors have balked at making films that will be seen primarily on the small screen.
Ms. Coixet said she was a “struggling filmmaker” and had tried for 10 years to find financing for the film but no one was interested before Netflix.
She said it was not fair to demand the film be withdrawn from the competition “in the name of culture,” adding: “I’m sorry, that’s not culture — the culture has to be about respecting the author. And I think saying the film doesn’t deserve to be here is not respecting the author.”
Last year Netflix Inc. pulled out of the Cannes Film Festival after organizers banned its films from competition over its refusal to release them in cinemas.
LOVE STORY
Ms. Coixet’s black-and-white film is based on the true story of Elisa Sanchez Loriga and Marcela Gracia Ibeas, who fall in love at school and manage to get married in 1901 when one of them disguises herself as a man called “Mario,” cutting her hair, drawing on a moustache and wearing a suit.
Same-sex marriage in Spain was legalized in 2005.
Villagers suspect Mario is really Elisa and turn up at their house with pitchforks, smashing their windows and yelling “whores” at them. The pair want to escape to Argentina but are caught and imprisoned while saving up for the journey.
“I want people to feel that even centuries ago, people loved each other and there’s no rules for love — just leave people alone living their sexuality,” Ms. Coixet told Reuters.
Natalia de Molina, who plays Elisa, said: “I want everyone to know this story because this still happens — there are so many Elisas and Marcelas around the world.”
Elisa & Marcela — which was made in four weeks — is one of 16 films competing for the prestigious Golden and Silver Bears at this year’s Berlinale. The winners will be announced at a prize-giving ceremony on Feb. 16. — Reuters

Competition watchdog blocks URC-Roxas Holdings deal

THE Philippine Competition Commission (PCC) on Thursday said it has blocked Universal Robina Corp.’s (URC) takeover of a Roxas Holdings, Inc. (RHI) subsidiary’s sugar milling and refining assets in Nasugbu, Batangas, saying the deal will create a monopoly in Southern Luzon.
In a statement, the anti-trust body said it issued the decision after finding that URC’s acquisition of Central Azucarera Don Pedro, Inc. (CADPI) “leads to a monopoly in South Luzon.”
“The prohibition prevents this deal from creating a monopoly in the relevant market that could harm the welfare of the sugarcane planters. It is the duty of the Commission to prevent the creation of monopolies when applying the merger control powers conferred on it by the Philippine Competition Act,” PCC Chairman Arsenio M. Balisacan was quoted as saying in the statement.
The PCC described CADPI as URC’s only competitor in the sugarcane milling services market in the area. URC has a sugar mill in Balayan, Batangas.
“A merger-to-monopoly deal is among the most detrimental types of business transactions. The URC takeover removes its only competitor, erodes the benefits of competition for the sugarcane planters, and leaves market power at the hands of a single provider in an area,” Mr. Balisacan said.
Last July, URC said it was acquiring the sugar milling and refining assets owned by CADPI and RHI in Barangay Lumbangan, Nasugbu in Batangas. The following month, the competition watchdog conducted a further review of the deal, after concerns over its effect on the local sugar industry.
In January this year, the PCC flagged the same competition concerns on the transaction.
To salvage the merger, the parties submitted voluntary commitments but the PCC did not consider these sufficient to address the monopoly issue.
“Both mill operators are in Batangas but the monopoly to be created by the merger will substantially lessen competition in the sugar milling services market not only in Batangas, but also in Cavite, Laguna, and Quezon,” the PCC said.
While the deal mainly concerns sugarcane farmers in Southern Luzon, the PCC noted the sugar processed in these facilities are sold throughout the country.
In a statement, URC said it accepted the anti-trust body’s decision.
“URC initiated the proposed acquisition of CADPI with that objective mind, convinced that it would bring about such efficiencies that would translate to better sugar planter and consumer welfare driven by a more stable and profitable sugar production industry in Southern Luzon,” the Gokongwei-led company said.
URC said the PCC decision “does not materially affect the (company’s) business plans”, as it continues to look for “opportunities to attain greater production efficiency.”
URC is engaged in various food-related businesses, including the production of packed foods and beverages, sugar, agro-industrial products, and bioethanol. Its mills, which produce raw and refined forms of sugar and molasses, are located in Batangas, Iloilo, Negros Oriental, Negros Occidental, and Cagayan.
RHI, also engaged in the trading of raw and refined sugar, and molasses, has 100% stake in CADPI which operates an integrated sugar cane milling and refining plant in Batangas. — Janina C. Lim

FDCP honors films, filmmakers that did good abroad

THE Film Development Council of the Philippines (FDCP) kicks off the centenary of Philippine Cinema by awarding 86 filmmakers, films, and artists in the third installment of its Film Ambassadors’ Night held last Sunday in the Samsung Hall of SM Aura in Taguig City.
“[The Film Ambassadors’ Night] was really about celebrating films and its makers. Glad to see independent and commercial filmmakers, national artists and film critics, documentary and content makers, animation and television providers, government officials and stakeholders all in one room,” Will Fredo, FDCP executive director, said in a Facebook post about the event.
The annual event is meant to recognize films, filmmakers, and artists “who won in globally recognized film festivals,” according to a press release.
Honorees this year include films that received accolades from international film festivals: Shireen Seno’s Nervous Translation (NETPAC Award for Best Asian Feature Film at the 47th International Film Festival Rotterdam in Netherlands and Best Screenwriter for Asian New Talent Category at the 21st Shanghai International Film Festival in China), Alberto “Treb” Monteras II’s Respeto (Centenary Award for the Best Debut Film of a Director at the International Film Festival of India in Goa, India), and Brillante Ma. Mendoza’s Alpha, The Right To Kill (Special Jury Prize at the 66th San Sebastian International Film Festival in San Sebastian, Spain).
But the night’s biggest awards were given to newly minted National Artist for Film Kidlat Tahimik (real name: Eric de Guia), the film Hows of Us (2018) considered the highest-grossing Filipino film of all time due to its P800 million box office take, and producer Bianca Balbuena-Liew who was behind films such as Lav Diaz’s Hele sa Hiwagang Hapis (2016).
The three were given the Camera Obscura Artistic Excellence Award, “the highest honor given by the agency to those who displayed excellence in the global film arena and made major contributions in Philippine cinema,” said the release.
“We want the entire film industry to have a glimpse of how we are going to celebrate the 100 years of Philippine cinema because it’s really important for not just our filmmakers and our producers to have ownership of this event. I hope it will also trickle down to the audiences, the very people who are watching our films, that they take to heart the celebration of 100 years of Philippine cinema,” said Mary Liza Diño-Seguerra, chairperson and CEO of the FDCP.
Though moving pictures were introduced in the Philippines in 1897, it wasn’t until 1919 that the country produced its first film, Dalagang Bukid, by Filipino filmmaker Jose Nepomuceno popularly called the Father of Philippine Cinema. — ZBC

Jollibee sets P17-billion capital spending for 2019

By Arra B. Francia, Reporter
JOLLIBEE Foods Corp. (JFC) is beefing up capital spending this year to P17.2 billion as it continues to expand its store network this year, following the homegrown food giant’s double-digit profit growth in 2018.
In a statement issued on Thursday, JFC said its capital spending in 2019 will be almost double its actual spending last year. The budget will be used for new stores, renovation of existing stores, and investments in manufacturing plants.
The listed firm said it disbursed P9.6 billion in capital investments last year, most of which went to the construction of new stores, renovation of existing stores, and also for supply chain facilities.
JFC’s aggressive spending plan comes amid its strong performance in 2018. The company saw its attributable profit rise by 17.1% to P8.33 billion from the P7.11 billion it posted in 2017. Revenues also climbed by a fifth or 20.6% to P158.67 billion last year.
The increase was supported by a 23.5% uptick in systemwide retail sales, or the measure of all sales to customers from both company-owned and franchised stores, to P212.19 billion. Without the consolidation of United States burger chain Smashburger into JFC’s portfolio, systemwide sales would have grown by 16.6% in 2018.
In the fourth quarter, JFC’s attributable profit grew by 11.9% to P2.24 billion, on the back of a 22% increase in systemwide retail sales to P59.01 billion and an 18.2% jump in revenues to P43.83 billion.
Sales from JFC’s restaurants in the Philippines alone grew by 15.1%, mainly due to new stores which accounted for 8.2% of the growth. Same-store sales growth stood at 6.9%, referring to the performance of stores that have been open for at least 15 months.
“The Philippine business performed strongly in 2018 despite rising inflation rate and slowing GDP growth…Operating margin even improved slightly compared with 2017,” JFC Chief Executive Officer Ernesto Tanmantiong said in a statement.
Meanwhile, sales of its stores abroad surged by 55.5%, led by its business in North America, thanks to the consolidation of Smashburger.
Mr. Tanmantiong noted that without its acquisitions, JFC’s foreign business would have grown by 22.1%, which is in line with their long-term growth model.
“We opened 502 new stores worldwide or a rate of 1.4 new stores per day. We continue to pursue our aspiration to become one of the top restaurant companies in the world,” Mr. Tanmantiong said.
Of its total store openings last year, 317 were in the Philippines, while 185 were located abroad. It ended the year with a total of 4,521 stores, 19.1% higher year-on-year, and entered four new markets, namely, Italy, Macau, United Kingdom, and Malaysia.
JFC’s brands include Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, Pho 24, Yonghe King, Hong Zhuang Yuan, and Highlands Coffee, among others.
Shares in JFC rose 1.65% or P5.20 to close at P321.20 each at the stock exchange on Thursday.

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