The government will start handing out cash transfers to some 7.4 million families by March, with the P200 subsidy expected to help poor households cope with higher prices of basic goods.
In a statement, the Department of Finance (DoF) said 4.4 million existing beneficiaries under the Pantawid Pamilyang Pilipino Program as well as 3 million senior citizens receiving social pensions will start receiving additional doleouts this February, representing the unconditional cash transfers provided under the tax reform law.
“The DWSD expects all 10 million beneficiary-households—comprising the poorest 50 percent of the population—to receive their UCT transfers by August,” the DoF said. — Melissa Luz T. Lopez
THE Philippine Olympic Committee will have new leadership after boxing chief Victorico “Ricky” Vargas beat incumbent president Jose “Peping” Cojuangco, Jr. in elections held Friday, Feb. 23, at the Wack Wack Golf and Country Club in Mandaluyong City.
Gaining 24 votes to his rival’s 15 in closed-door proceedings among the various National Sports Associations in the country, Mr. Vargas, who heads the Association of Boxing Alliance of the Philippines, prevented a fourth term as POC presidency for Mr. Cojuangco, effectively ending the latter’s 13-year reign in the position.
Also winning at Friday’s elections was cycling federation head and Cavite congressman Abraham Tolentino, who was voted in as POC chairman over table tennis chief Ting Ledesma, 23-15.
Mr. Tolentino ran in the same ticket as Mr. Vargas, making it a double-celebration for their group.
The election victory of Mr. Vargas was a “vindication” of sorts for Mr. Vargas, who ran against Mr. Cojuangco in 2016 but was eventually “disqualified” by the POC election committee at that time over “technicalities,” in particular for failing to be “an active member of the POC general assembly for two consecutive years at the time of their election” as stipulated in Article 7 Section 11 of the POC charter.
The group of Mr. Vargas contested the decision and filed for a temporary restraining order at the Pasig Regional Trial Court, which later denied the petition.
A breakthrough though happened in December last year when the Vargas camp won an election case it filed at the Pasig RTC.
The court decision ruled that POC elections on Nov. 25, 2016 for Chairman and President is “null and void” and set a re-election for Feb. 23, 2018.
“We are committed to the athletes. We are going to make it happen and set things right,” said Mr. Vargas to waiting mediamen after their election victory.
He went on to say that they will immediately start work and prepare for the country’s campaign in the Asian Games later this year and next year’s Southeast Asian Games, which the country is hosting.
Serving as officials for the elections on Friday were former International Olympic Committee Representative Frank Elizalde, Bro. Bernie Oca of De La Salle and POC lawyer Alberto Agra.
Mr. Vargas will continue the POC term of Mr. Cojuangco, which was supposed to end in 2020.
Mr. Cojuangco left the election venue after his defeat and declined to give a comment, saying he will make a statement in due time.
There was a time when sound in cinema was unheard of and colored moving pictures were the stuff of dreams. But now, the cinema is accessible in the nearest mall, with tickets being sold at an affordable price, plus extra features like popcorn, 3‑D glasses, a slew of movie previews, and memorable end‑credits that will keep you glued to your seats.
But while cinemas have become accessible, some award‑winning movies haven’t. And it isn’t because the so‑called art snobs feel like their work is too good for the masses. It’s because cinemas operate more as a business and less like an art display. The number of days given to a film’s showing depends on how many people come to see it during its first few days.
It’s the reason why crowd favorites like blockbuster films or mainstream Tagalog movies luxuriate for two or more weeks in the cinema, while the more obscure indie films, no matter how many local and international awards they win, might enjoy a little more than three days in a mall theater. Even Respeto, which won Best Film in the 2017 Cinemalaya Awards and uses the very popular art of hip‑hop as a tableau for tackling the effects of living in a dictatorship (such a timely topic), had to take to social media guerilla marketing to get mall cinemas not take the film out of theaters.
In the same vein, 28‑year‑old filmmaker Hector Barreto Calma, who himself has graced international festivals for films like Ang mga Alingawngaw sa Panahon ng Pagpapasaya, used social media to gauge whether or not he would have a niche for the kind of cinema he wanted to put up. Soon enough, he founded Cinema Centenario: a microcinema along busy Maginhawa Street in Quezon City, flanked by food establishments that draw university students.
In here, a narrow staircase leads to a room filled with glass walls, providing a full view of movie schedules, memorabilia (last January, it featured costumes from 2017 Metro Manila Film Festival Best Picture Ang Larawan), an old‑fashioned red ticket booth, and a flatscreen television were trailers—ranging from classic to contemporary—loop endlessly.
ALTERNATE SPACE
Cinema Centenario regularly shows local and indie films from noon to midnight, has a seating capacity of 65 people, and an affordable ticket price of ₱200. They also sell snacks and film merchandise.Cinema Centenario was launched in December 2017, the year that marked the 100th year of Philippine cinema.
“When I read a thread about an indie movie on social media, I always find people asking where they can watch the film,” said Calma in an interview with SparkUp when asked about whether or not there’s a need for microcinemas. “That’s why there was a need to make an alternate space to show films. We schedule a film for showing, and regardless of whether or not we get a full audience, we don’t pull‑out the film from it’s scheduled viewing.”
Films were made to be shown on cinemas, not on your mobile phone.
Social media is also where Cinema Centenario does most of its marketing. Every new showing is a new Facebook event, sometimes promising the chance for the audience to talk with movie directors and actors after the film.
“The audience tends to put filmmakers and actors on a pedestal. We want to make them reachable,” said Calma. “We schedule with directors and actors and announce our events when we’re sure that they can come. We’re bridging the gap between the audience and the filmmaker. They can ask their questions, facets about the movie are revealed, and this is something that you can’t experience in other cinemas.”
“With the age of technology, you can watch your favorite movie on a laptop, but iba pa rin ang sinehan (it’s still different in the cinema),” Calma added, looking up wistfully at the soundless black‑and‑white movie trailer playing on the television at the cinema lobby, his hands clasped as if in prayer. “You get a collective reaction with the strangers you’re watching with that you can’t replicate anywhere else. Films were made to be shown on cinemas, not on your mobile phone.”
But with their location in Maginhawa comes a captive audience of young and old alike. Some of them, Calma joked, were a literal captive audience trapped by rush‑hour traffic who decided to park their cars nearby and spend two hours or so watching a movie instead of spending those hours stressed out. Some others come up to the cinema expecting another trendy theme restaurant. “How cute,” he recalled one of them say. “Look, their menu is themed after movies!” Cinema Centenario get students from nearby universities like the University of the Philippines, Ateneo de Manila University and Miriam College, who come after class. Calma also recalled with great fondness an elderly couple who lived nearby. They decided to climb the steep staircase up to the cinema after weeks of passing by it curiously during their daily walks to watch a movie that was first shown when they were still teenagers. They insisted on meeting Calma afterwards to shake his hand and thank him.
Cinema Centenario sources its movies from Calma’s connections with other indie filmmakers and from the restored classics collection of ABS‑CBN’s film restoration project.
Cinema Centenario is located at 95 Maginhawa St., Quezon City. It is open daily from 11:30 a.m. to 12 midnight. Check out their facebook for screening schedules.
‘NOT A FAD’
Similarly, Black Maria Cinema in Mandaluyong City is an offshoot of a company that works on post‑film production, SQ Film Laboratory, and is located in the residential district of Mandaluyong City.
The microcinema is also connected to Santiago’s, a café that’s decorated with pink flamingos and smells of buttery pastries and strong coffee.
This is where SparkUp sat down with Shandii Bacolod: film director, producer and talent manager, and currently the programming head of Black Maria.
“Is it just a fad?” Bacolod asked rhetorically over a cup of black coffee. “No, it’s not. Microcinemas stem from the unconscious need to preserve our own art.”
“They said that the film industry is dying, but it’s not,” he continued empathically. “It’s deprived. It’s deprived of venues, resources, and government funds. As a part of this industry, we’re the ones who have to come up with a solution.”
The idea to have a microcinema came from one of the producers that they were working with in SQ, he recalled, who pointed out that they already have all the equipment they need to show films anyway. In November 2017, Black Maria Cinema was borne out of the 30‑seater cinema that used to only have filmmakers screening their work for final touches as its audience. Because they already had all the equipment, like a digital projector and Dolby Digital sound, and the connections within the film industry, all they needed was an audience.
“Our major audience are film enthusiasts and film buffs,” said Bacolod. “Dinadayo nila kami (They make the trip here).” Their location in Mandaluyong, a stone’s throw away from busy Shaw Boulevard, also makes them accessible to people who want someone else to relax after office hours, walk‑ins from the local community, and of course millennials and students who have heard about them on social media. Social media, it seems, is also an integral part of any microcinema’s marketing plan. Black Maria Cinema closed temporarily in January to update its sound system and seats, and went back in operations on the first week of February.
Unlike Cinema Centenario, Black Maria Cinema also shows foreign films like I, Tonya—a 2017 film about ‘90s figure skater Tonya Harding who was made notorious by her alleged attack of her rival Nancy Kerrigan—and Loving Vincent—a 2017 animated film rendered in the art style of Vincent van Gogh whose life is the subject of the film. They charge ₱200 for local films and ₱230 for foreign films, following the pricing of mall cinemas. “But if the movie is a part of a film festival then we follow the price given by the festival,” Bacolod added.
Former Black Maria Cinema‑goers might be shocked by this ₱50 increase in ticket prices from when it first started, but it seems like a necessary price increase. While microcinemas operate with obviously less resources and space compared to mall cinemas, they are subject to the same regulations.
“Kahit maliit kami (even if we’re small) we have to follow all the requirements and criteria as big mall cinemas, and we pay the same amount in fees,” Bacolod disclosed. These include zoning permits, fire compliance permits, business permits and registering with the Securities and Exchange Commission and the Bureau of Internal Revenue. She estimates that Black Maria Cinema has a ₱35,000‑₱45,000 monthly operating cost.
With more and more microcinemas being established in the last few months, there might soon be enough to come up with an association of microcinema owners so that they may discuss how to make their businesses sustainable. “This year business owners are coming up to improve operations, how to strengthen our business, how to promote our movies,” said Bacolod.
“So that microcinemas won’t be considered an alternate venue to watch films anymore,” he reflected. “We’ll be known as the venue.”
Black Maria Cinema is located at 779 San Rafael St., SQ Film Laboratories Building, Plainview, Mandaluyong. Check out their facebook for screening schedules.
THE PHILIPPINES dropped 10 spots globally and languished in the lower third of the Asia-Pacific list in an annual report of businessmen’s corruption perception that tagged the country “among the worst” in terms of dealing with those who “dare to challenge the status quo.”
The Corruption Perceptions Index 2017, which Transparency International released on Thursday, showed the Philippines dropping in rank to 111th out of 180 countries and territories from 101st out of 176 on the 2016 list.
In Asia and the Pacific, the Philippines placed 21st among 31 countries and territories.
After keeping a score of 35 from 2015 to 2016, on a 0-100 scale in which zero denotes a country is “highly corrupt” and 100 means it is “very clean,” the Philippines slipped to 34 in 2017. It was the country’s lowest score in five years, matching its grade in 2012.
The Philippines’ score was also below the 44.39 and 43.07 regional and global averages, respectively.
Within Southeast Asia, the Philippines was outdone by Singapore (which ranked sixth globally with a score of 84) Brunei Darussalam (which placed 32nd globally with a score of 62), Malaysia (62nd, 47), Timor-Leste (91st, 38), Indonesia (96th, 37), Thailand (also placing 96th with a score of 37) and Vietnam (107th, 35).
Faring worse in Southeast Asia were Myanmar (which ranked 130th with a score of 30), Laos (135th, 29) and Cambodia (which placed 161st with a score of 21).
Among others also in Asia and the Pacific, Japan placed 20th globally with a score of 73; South Korea ranked 51st with a score of 54; China, 77th with 41 and India, 81st with 40.
‘AMONG THE WORST OFFENDERS’
In brief comments on select economies covered by the latest survey, Transparency International noted that “the results from the 2017 index also show that corruption in many countries is still strong.”
“Often, when individuals dare to challenge the status quo, they suffer the consequences. In some countries across the region, journalists, activists, opposition leaders and even staff of law enforcement or watchdog agencies are threatened, and in the worst cases, even murdered,” the report read.
“Philippines, India and the Maldives are among the worst regional offenders in this respect. These countries score high for corruption and have fewer press freedoms and higher numbers of journalist deaths.”
Sought for comment, Chief Presidential Legal Counsel Salvador S. Panelo dismissed Transparency International’s (TI) findings, telling reporters in Malacañan Palace: “Fake news ‘yan,” while Dante L. Jimenez, Volunteer Against Crime and Corruption chairman who takes his post on March 6 as head of the newly formed Presidential Anti-Corruption Commission, said in a telephone interview: “I think that may be true, because there are still many agencies that have been tolerating corruption.”
“That’s why the president would always emphasize to these agencies to stop corruption. So we have to do something about this,” Mr. Jimenez said, adding that the commission that he is about to head “will craft strategies because the Duterte administration has only more than four years until he ends his term.”
“But of course, personally, what is important there is to strengthen the judicial system. We have to bring back the death penalty for plunderers. Unless we bring back these heavier penalties for plunderers, nothing will happen.”
The head of the European Chamber of Commerce of the Philippines (ECCP) expressed concern with this development when asked for his reaction.
“As a chamber that continues to promote the Philippines as an attractive foreign investment destination to potential investors in Europe and around the region, this new report is certainly worrying and also makes our job more challenging,” ECCP President Guenter Taus said in an e-mail.
“What we suggest is to create an effective enforcement mechanism for the Anti-Graft and Corrupt Practices Act and this should certainly serve as a good starting to point in beginning to address these issues. We have long been supportive of legislative and administrative measures that will address corruption in the private sector. Besides the Integrity Initiative, we are willing to assist the government in establishing an effective enforcement mechanism that will ensure that the Anti-Graft and Corrupt Practices Act is not selective of the person involved.”
John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines, said in a mobile phone message that while he had yet to read the latest report, “when developed country investors look at ASEAN they compare the ASEAN-6 and see Singapore and Malaysia as less corrupt and the Philippines trending upward into a cluster with Indonesia, Thailand, and Vietnam.”
“In another major index of the WEF in 2010, corruption was the number one-concern of business; by 2017 it was the number-three concern after red tape and poor infrastructure,” Mr. Forbes said, referring to the World Economic Forum.
“Philippine investors have been choosing to locate in PEZA zones because they have a great reputation for being corruption-free,” he added in reference to the Philippine Economic Zone Authority.
For Makati Business Club Executive Director Peter Angelo V. Perfecto, “[t]he latest TI rankings should help government recalibrate its anti-corruption efforts and programs.”
“One possible way forward is to partner with the private sector-led Integrity Initiative and, as a first step, issue an executive order that will provide all government agencies a framework for them to partner with private sector in jointly organizing projects and programs for integrity,” Mr. Perfecto said in a separate text message.
“A public-private partnership for integrity and anti-corruption could look deeper into the latest TI rankings to better analyze the index and jointly pursue a program that will help lift the country back up in the rankings.”
In order to improve scores across Asia and the Pacific, Transparency International prescribed: putting in place laws and institutions that will prevent corruption from happening in the first place, reducing impunity for the corrupt, improving space for civil society to speak out as well as improving integrity and values.
Noting that the latest survey “shows high corruption burden in more than two-thirds of countries”, Transparency International said “[t]his year’s Corruption Perceptions Index highlights that the majority of countries are making little or no progress in ending corruption, while further analysis shows journalists and activists in corrupt countries risking their lives every day in an effort to speak out.”
“Further analysis of the results indicates that countries with the least protection for press and nongovernment organizations also tend to have the worst rates of corruption,” it said.
“Every week at least one journalist is killed in a country that is highly corrupt.” — with inputs from Arjay L. Balinbin, Christine Joyce S. Castañeda and Mark T. Amoguis
APPROVED foreign investment commitments fell to their worst level in 12 years, according to data the Philippine Statistics Authority (PSA) released on Thursday.
The PSA said approved foreign investment pledges for the entire 2017 totaled P105.6 billion, down by an annual 51.8%. This was the lowest amount since 2005’s P95.8 billion.
The tally for the fourth quarter was likewise lackluster, plunging 82.8% to P21.6 billion from P125.7 billion in 2016’s comparable three months.
“The drop in foreign investment pledges in 2017 may be attributed to the high base/denominator effects in previous years,” said Michael L. Ricafort, economist at Rizal Commercial Banking Corp.
He likewise cited “tentativeness on investment” in the face of the five-month siege of Marawi City up to October last year and US President Donald Trump’s “America First” policy that encouraged US businesses to invest more at home than abroad in order to create jobs.
The United States’ approved investment pledges of P8.7 billion in 2017 was merely 8.3% of the total for the year and was 72.2% less than the P31.4 billion in 2016.
For Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines, “the way the government was dealing with different countries may have an impact on foreign investments.”
Approved commitments from the Netherlands and Australia, which were the top two sources of foreign investment pledges in 2016, showed the biggest drops last year. Investment pledges from the Netherlands dropped 80.5% to P9.6 billion last year from P49.4 billion in 2016. Australia, meanwhile, saw pledges drop 87.9% to P3.9 billion in 2017 from P32.4 billion a year prior.
The country’s largest foreign investor in 2017 was Japan, whose approved FIs registered P32 billion, an 18.2% increase from 2016. Japanese investments accounted for 30.3% of total pledges, followed by Taiwan (10.3%) and Singapore (9.6%).
Pledges from China and Hong Kong increased by 53.6% (P2.3 billion) and 16.4% (P1.6 billion), respectively.
The report counted investment pledges from the government’s seven premier investment promotion agencies (IPAs), namely: the free port authorities of Bataan, Clark, Cagayan, Subic and the Autonomous Region of Muslim Mindanao, as well as the Board of Investments and the Philippine Economic Zone Authority (PEZA).
PEZA, which contributed 74% of the total last year, reported a 35.4% drop in approved foreign investment pledges at P78.3 billion versus the year-ago P121.2 billion.
Foreign investment commitments are different from actual capital inflows tracked by the Bangko Sentral ng Pilipinas (BSP) for balance of payments purposes. Latest available BSP data showed net foreign direct investments rising by 20% annually to $8.725 billion in the 11 months to November, surpassing the BSP’s $8-billion full-year forecast.
In the fourth quarter alone, manufacturing continued to receive the biggest portion of approved foreign investment pledges with P8.3 billion, accounting for 38.4%.
This was followed by real estate with investment commitments worth P5.1 billion or 23.5%, as well administrative and support service activities at P3.5 billion or 16%.
The bulk of the approved commitments in the fourth quarter — 29.5% at P6.4 billion — will go to projects in the Cavite-Laguna-Batangas-Rizal-Quezon (Calabarzon) region immediately south of Metro Manila, or the National Capital Region (NCR), that hosts major industrial parks. Calabarzon was followed by NCR’s P5.5 billion or 25.4% and Central Luzon with 22.6% or P4.9 billion.
According to PSA, around 29,813 jobs will be generated from the total projects approved by the seven IPAs for the fourth quarter of 2017.
THE PHILIPPINES is unlikely to see a “significant widening” of its current account deficit, even as a bigger gap exposes the country more to “sudden capital outflows,” S&P Global Ratings said in a regional note on Thursday.
The global debt watcher expects Philippine gross domestic product (GDP) to expand by 6.5% this year, slower than the 6.7% clocked in 2017 and below the government’s 7-8% growth goal for 2018.
“We expect a return of traditional GDP growth drivers — consumption and investment — as the leaders of a decent 6.5% growth,” S&P said in the Asia-Pacific Economic Snapshots report it released yesterday.
“As the Q4 figures show, the resurgence of private household spending came just in time, as electronics exports were no longer able to prevent the usual negative contribution of net exports to growth.”
ANZ Research has warned that private spending could ease as a result of higher prices of goods and services, largely due to the implementation of Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act (TRAIN). TRAIN, which took effect Jan. 1, introduced higher or additional taxes on fuel, cars, coal, sugar-sweetened drinks and a host of other items. These are expected to shore up an additional P82.3 billion revenues this year, despite a reduction in personal income taxes.
ANZ analysts said that historical data showed that every one percent increase in headline prices caused a corresponding 0.3% decline in private consumption.
BMI Research, however, said rising incomes and sustained remittance inflows should keep consumer activity upbeat.
At the same time, however, S&P said it will “continue to watch the current account, given slower remittance inflows, higher energy prices, and rising imports.”
“Although we do not expect a significant widening of the deficit under our baseline, such a scenario would increase the Philippines’ exposure to potential sudden capital outflows in times of market panic,” the credit rater said.
The current account measures fund flows from goods and services trading, which determines the country’s external payments position.
As of December, the Bangko Sentral ng Pilipinas (BSP) expected the current account to settle at a $100-million deficit in 2017, a retreat from the $28-million surplus logged as of end-September.
For this year, the central bank sees the current account at a $700-million deficit, equivalent to 0.2% of gross domestic product (GDP).
BSP Managing Director Francisco G. Dakila, Jr. last week said a current account gap driven by an increase in investments and imports of capital goods is to be expected in order to prevent the economy from overheating, as such expenditures will help accelerate overall economic growth.
The country’s external trade deficit logged a new all-time-high $4.017 billion in December, taking the full-year gap to $29.786 billion, also the highest on record.
Last year saw merchandise imports surging by 10.2% and exports growing 9.5%, beating the government forecasts of nine percent and eight percent respectively, according to the National Economic and Development Authority.
Increased imports of raw materials like artificial resin, iron and steel are expected to support the “Build, Build, Build” agenda of the current administration, which plans to spend over P8 trillion for big-ticket infrastructure projects until 2022, when President Rodrigo R. Duterte ends his six-year term.
The increased infrastructure spending is expected to boost annual GDP growth to as fast as 7-8% up to 2022 from last year’s 6.7%, 2016’s 6.9% and a 6.2% average in 2010-2015.
MONETARY BOARD Member Valentin A. Araneta, a veteran of the banking industry, passed away on Feb. 21, according to the Bangko Sentral ng Pilipinas (BSP) on Thursday. He was 69.
Mr. Araneta served as member of the BSP’s policy-setting body since July 2014, when he was appointed by then-President Benigno S.C. Aquino III for a six-year term. The Monetary Board has seven members who are appointed by the President, consisting of the BSP governor, a member of the Cabinet and five representatives of the private sector.
Before this, Mr. Araneta served as president of the Philippine Deposit Insurance Corp., after decades of working in various banks. He was president and chief operating officer (COO) of Rizal Commercial Banking Corp., senior executive vice-president/COO of the Philippine National Bank and independent director at the Metropolitan Bank & Trust Co.
Mr. Araneta held a degree in Economics from the Ateneo de Manila University. He also completed the Advanced Management Program of the Wharton Business School in 1991.
A requiem mass and necrological service will be offered today in his honor at the BSP main office in Malate, Manila. Inurnment will be held on Sunday at the St. Therese Columbarium in Pasay City, the central bank said in a statement. — Melissa Luz T. Lopez
Photos by Michelle Anne P. Soliman and Alicia A. Herrera
The first Manila Biennale — which has the theme “Open City,” referencing the events of World War II in its venue, Intramuros in Manila — focuses on memories and stories, on history and culture. Wandering through the narrow streets of the walled city, viewing the various installations and exhibits that make up the arts festival, one gets a reminder of who we were then and who we are today. Plaza Roma, the San Ignacio Mission House, and Baluarte de San Diego, in particular, are not to be missed, although there is art scattered throughout. Here are some of the works to note as the festival enters its last two weeks. — Michelle Anne P. Soliman
SAN IGNACIO MISSION HOUSE Procesion los Camareros (Procession of the Caretakers) by Jason Dy, SJ
A series of 15 light boxes encircle the center of the newly rebuilt but still unfinished San Ignacio Church, each corresponding to one of the Stations of the Cross. Curator Alice Sarmiento explains that the artist, Fr. Jason Dy, “was interested in the way people practice their faith” and the “way religion functions within communities.” Fr. Dy worked with Intramuros pedicab drivers who each personalized glass reliquary-style boxes with sentimental objects which serve as a representation of history and religion (one of the boxes contains a Koran). The priest then photographed the drivers’ creations, mounted the resulting images in light boxes which were then set up in the church. Ms. Sarmiento noted that part of the project was to have the pedicab canopies redesigned with prints of the San Ignacio Church’s interior and the prewar Intramuros landscape. The original glass boxes have been mounted in the pedicabs, making this in a sense a traveling exhibit as the drivers take their passengers around the walled city.
PLAZA ROMA Red Slide by Aigars Bikse
The interactive sculpture by Latvian artist Aigars Bikse was created in 2012 for the Rauma Biennial Balticum, Finland under the theme of human nature, focusing on the essence of the human mind. A working slide that depicts a wounded soldier done in the “Soviet monument style,” the polyurethane slide was repainted pink for the Manila Biennale. Curator Con Cabrera explained that the image depicts “the duality of the soldier’s persona” which can either be an aggressor or protector — evident as children play around and with the sculpture.
SAN IGNACIO MISSION HOUSE WatAwat by Elnora Ebillo
Documentarian Elnora Ebillo dramatizes the involvement of women in the Philippine Revolution against Spain by projecting images of women sewing the various Philippine flags onto a series of sinamay curtains in a darkened room.
SAN IGNACIO MISSION HOUSE Record of the Bombing by Hikaru Fujii
A Japanese World War 2 memorial hall had its funding cut when it was found to rather tell an ambiguous narrative about war atrocities. This was the inspiration for this work by Japanese artist Hikaru Fujii — originally displayed at the Museum for Contemporary Art in Tokyo. The work features a number of exhibit vitrines, empty except for the labels identifying the missing artifacts. A video of Japanese WW2 survivors gives validity to the terrors and hardships of the war.
PLAZA ROMA Bayanihan Hopping Spirit House by Alwin Reamillo
First set up in nearby Fort Santiago, the house was transported bayanihan-style to Plaza Roma with the help of soldiers, festival staff, and guests on Saturday, Feb. 17. The bamboo house made the trip in about 20 minutes on the shoulders of the volunteers who faced the challenge of avoiding the low hanging cables across Gen. Luna St. Built with corrugated iron panels and bamboo, and decorated with strings of bits and bobs, chimes hand-made by children, and pinwheels made of recycled materials, the house was first exhibited at the 2015 Sydney Festival. “It’s a form of creative bayanihan (mutual cooperation by a community) and creative social structure,” said its creator, Alwin Reamillo, who noted that while bayanihan is usually practiced in the provinces, it may also be done in the city. Asked about the possible effect of adverse weather on the house, Mr. Reamillo noted the community’s cooperation: “Masisira ’yan eventually pero, aayusin natin ulit (It will break eventually, but we will fix it again.)”
ALL AROUND INTRAMUROS Various signs made of tarpaulin and wood by Kolown
As one walks around the walled city, one will come across multiple tongue-in-cheek “historical” signs created by Kolown, an anonymous artist collective based in Cebu. The signs give fake information about the city and its history in a very straightforward manner. This includes the role of Voltes V in Fort Santiago and the role of the Intramuros walls in beauty routines. The signs all include links that can be accessed by smartphones which provide a different dimension to the works.
BALUARTE DE SAN DIEGO Golgotha by Mideo Cruz
An installation made of found objects, resin, wood, and metal adapting to the given space, the piece evokes a feeling of fear. Featuring hands sticking out of the ground, surrounding horned beasts, this work — staged in a chamber that served as a prison for women during World War II — references biblical history and the sacrifices of both losers and victors.
PHILIPPINE H2O Ventures Corp. (H2O) is spinning off its water assets as it prepares for a takeover by Davao-based businessman Dennis A. Uy’s property company.
In a disclosure to the stock exchange on Thursday, H2O said its board of directors approved the sale of its water business to sister firm Tabuk Water Corp. (Tabuk) for P442 million. Both parties have also signed a share purchase agreement for the transaction.
H2O’s water business is solely under Calapan Waterworks Corp. (CWWC), where it holds a total of 137.05 million common shares, or 99.75% of the issued and outstanding shares.
CWWC owns and operates the local waterworks system of Calapan City, Oriental Mindoro. The company serves 22 urban barangays and 13 adjoining rural barangays, connecting a total of 13,384 households as of 2016.
The spin-off of the water business is in line Memorandum of Agreement between H2O’s parent, Jolliville Holdings Corp. (JOH) and other related parties and Mr. Uy’s Udenna Development Corp. (UDEVCO) last December 2017. Here, JOH agreed to sell all its shareholdings, or 62.006%, in H2O to UDEVCO.
At least two-thirds of the shareholders of H2O would have to approve the transaction before it can be completed, as well as the confirmation by UDEVCO and JOH.
UDEVCO will also be launching a mandatory tender offer for the H2O shares, as per the Securities Regulation Code.
Shares in H2O jumped 13.03% or 77 centavos to P6.68 apiece at the stock market’s close on Thursday, while parent JOH enjoyed a 7.54% increase or 37 centavos to P5.28 each. The two firms were among the top gainers for the day, defying the Philippine Stock Exchange index’s 1.14% drop to 8,515.57 as rising bond yields continued to put a pressure on global markets.
Mr. Uy’s property arm had earlier expressed interest taking its business public, saying it is considering an initial public offering or backdoor listing.
UDEVCO currently operates Lapu-Lapu Land Corp., a Cebu-based firm undertaking the development of a $341-million Lapu-Lapu Leisure Mactan project. Spanning 12.5 hectares, the project will house a casino, retail complex, and hotels. The company looks to start the casino’s operations as early as 2019, ahead of the development’s target completion in 2022.
Mr. Uy has been steadily expanding his business since the start of President Rodrigo R. Duterte’s administration. His logistics arm, Chelsea Logistics Holdings Corp., has been snapping up logistics firms to grow its reach after conducting a P5.84-billion IPO last June 2017.
LAND BANK of the Philippines (Landbank) saw its net income grow in 2017 on the back of its robust core revenues.
In a statement sent to reporters on Thursday, state-owned Landbank said it posted a net income of P14.05 billion, climbing 4% from the P13.58 billion recorded in 2016.
Landbank’s net income growth was mainly supported by the double-digit growth of its core revenues.
The bank’s income from loans expanded 12% to P26.8 billion last year from P23.9 billion in 2016.
This, as the lender’s loan portfolio expanded by 30% to P674.3 billion last year, the bank said in the statement.
Landbank’s deposit base likewise rose 15% to P1.42 trillion from the P1.23 billion recorded in 2016 as it added new branches and automated teller machines and expanded the enrollment of its Internet and mobile banking subscribers.
Meanwhile, the bank’s income from investments also expanded 28% to P21.17 billion in 2017 from the P16.49 billion booked in the comparable year-ago period. Landbank’s investment portfolio rose 25% to P580.65 billion.
Return on equity was at 14.8% in 2017, while the lender’s total capital expanded to P104.59 billion by 23%.
“With our solid performance in 2017 further reinforcing the [b]ank’s foundation, we are confident with sustaining growth in 2018,” Landbank President and Chief Executive Officer Alex V. Buenaventura was quoted as saying in the statement.
“Our core objective is to continuously grow the net income in order to expand support to our priority sectors, especially the farmers and fishers, cooperatives, [and micro-, small and medium enterprises].”
Earlier, Landbank said it is eyeing to acquire the 66.67% stake of Philippine Dealing System Holdings Corp. (PDS) after its board approved the move last Jan. 23.
Mr. Buenaventura said the lender’s acquisition of PDS will “increase Landbank[‘s] profits and accelerate development of capital markets in the country.”
Finance Secretary Carlos G. Dominguez III backed Landbank’s planned acquisition of the country’s fixed-income exchange, saying that the Philippine Stock Exchange has taken too long to carry out its acquisition of PDS.
Mr. Dominguez said recently that Landbank needs profits to subsidize farmer loans.
Landbank is the largest provider of loans to small farmers and fishers, cooperatives and local government units. As of September last year, it was the country’s fourth largest bank in asset terms with P1.48 trillion. — K.A.N. Vidal
THE COUNTRY’S anti-trust body has given the go-signal for two joint venture deals last week, one of which involves property giant Ayala Land, Inc. (ALI)’s partnership with Royal Asia Land, Inc. (RALI) to develop a mixed-use estate in Cavite.
In a statement issued Thursday, the Philippine Competition Commission (PCC) said the partnership between ALI and RALI does not result in substantial lessening of competition in their respective relevant markets.
The two firms are currently forming a 50-50 venture company that will acquire, own, and develop a 936-hectare property that covers Silang and Carmona in Cavite. The project is slated to house both commercial and residential components.
Under the deal, ALI will act as the property’s project and development, and sales and marketing manager. It will receive 12% of the joint venture company’s gross revenues for the development management fee, and 5% for the sales and marketing fee.
On the other hand, RALI will participate in the planning and development of the property, which entitles it to a 2% share in the joint venture’s gross revenues.
At the same time, the PCC also approved the proposed partnership between Markham Resources Corp. (MRC) and Alternergy Mini Hyrdo Holdings Corp. (AMHHC) to operate three mini hydro projects, namely Kiangan Mini Hydro Corp., Ibulao Mini Hydro Corp., and Lamut-Asipulo Mini Hyrdo Corp.
The three firms will collectively be called Markham-Alterenergy joint venture companies, which will operate, develop, and maintain run-of-river mini-hydro projects located across Asin, Ibulao, Hungduan, Lamut, and Panubtuban in the Ifugao province.
The PCC described MRC as a local firm whose core business is in electricity generation and/or distribution and/or hydropower plants. On the other hand, AMHHC’s business is focused on the sale, assignment, transfer, mortgage, pledge, exchange, or other disposition of real and personal property.
The PCC noted there are enough players in the relevant market that provide competitive constraints for such a joint venture, allowing MRC and AMHHC to proceed with the transaction.
Companies undertaking merger and acquisition transactions, including joint ventures, whose value meet the P1-billion threshold set out under the Philippine Competition Act must secure the PCC’s approval before closing a deal.
So far, the PCC has received 151 notifications for merger and acquisition transactions with a combined value of P2.25 trillion across the manufacturing, financial, electricity, real estate, and transportation sectors. Of this, 41 are global mergers.
Earlier this week, PCC Chairman Arsenio M. Balisacan said the agency is preparing a proposal that will raise the P1-billion threshold for reporting M&A deals.
The private sector has been pushing for a higher notification threshold since the P1-billion level is considered too low, overburdening the PCC and creating delays for companies involved in M&A deals. — Arra B. Francia
CEBU CITY — Local banks continue to extend loans to new coal-fired power plant projects despite the Philippines being directly hit by climate change, the chairman of Lopez-led First Philippine Holdings Corp. (FPH) said.
Federico R. Lopez, who is also FPH chief executive officer, said banks are “tripping over each other” in extending loans to coal power plants even if they recognize that burning the fossil fuel means emitting greenhouse gases.
“Coal-fired power plants, being the easiest to develop and its fuel supply the simplest to procure, every competitor and new entrant is seeking to build more coal-fired power plants in a vicious race to the bottom,” he told participants of the second Philippine Environment Summit in Lahug, Cebu City on Thursday.
“Adding to these pressures is the fact that majority of banks continue to finance coal production and coal-fired power generation,” he said.
“In fact, major banks financed the top 120 coal plant developers by more than $600 billion over the last four years. They’ve been slow to embrace COP (Conference of Parties) 21 despite verbal pronouncements and still have quite a way to go,” he said, referring to the conference in Paris in 2015 that agreed to limit greenhouse gas emissions and slow down the rise in the earth’s temperature.
He said if banks transitioned away from coal there would be a shift toward lower carbon alternatives, renewable energy (RE) sources and even the adoption of energy efficiency measures.
Mr. Lopez also called out the government for its short-term perspective and ambivalence about climate change issues.
“Despite our countrymen’s vulnerability to the effects of global warming, only token importance is given to such concerns in national public policy. Priority is power adequacy and cheap electricity prices,” he said.
Mr. Lopez said the recent initiative to impose a coal tax is a step in the right direction but would only amount to as little as P0.01 to P0.03 per kilowatt-hour (kWh) tariffs to coal-fired power plants.
He said in other countries such as India, the coal tax is equivalent to P0.06 per kWh. South Korea’s tax on the fuel even reached P0.25 per kWh.
Mr. Lopez, who also chairs FPH units First Gen Corp. and Energy Development Corp. (EDC), said his group faces “quite a number of challenges” in the Philippines. First Gen produces power using natural gas while EDC’s output comes from geothermal plants.
He noted price competition is intense, and retail competition and open access is underway. Low price is still the main driver of electricity for consumers, he added.
“This has driven down profit margins of all power producers. But we’re driving down costs in our geothermal business, both the old fashioned way and through the use of new technology,” he said.
Despite the obstacles, Mr. Lopez said the companies he chairs are committed to a “green road.”
“There are more and more companies that are conscious about greening their footprints and supply chains. This has a lot to do with the millennial consumer coming of age. In the Philippines we’ve been seeing some electricity customers specifically coming to us because they want to green their supply chains with renewable power,” he said.
He said another reason why the Lopez group is committed to its green energy platform is the country’s competitive market.
“The Philippines is primarily a services-driven economy. Retail competition and open access that’s underway and progressing will disaggregate that demand. Our portfolio that blends flexible natural gas-fired plants and geothermal, which is the only competitive 24/7 RE technology today, is a better combination for serving this type of demand called mid-merit,” he said.
He said natural gas and geothermal, which respectively have only a third or a tenth of the carbon emissions of even the most advanced coal plants, are capable of beating the latter’s prices.
“Another reason for optimism about clean energy is that the forces of technology moving very fast. Solar, wind, and battery storage have experienced exponential cost reductions over the last few years. Never in my 20 years in the power industry have I seen anything move so fast,” he said.
Given the rapid pace of renewable energy development, Mr. Lopez said coal-fired power plants “can’t keep up with that kind of variability and may likely end up as underutilized or stranded assets in 10 years or less.”
“In countries like Australia, Germany, and some US states like California with even modest renewable energy penetration they are already experiencing coal and even gas plants being utilized less or being idled,” he said.
