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Manu retires

IT was most certainly just a matter of time before Manu Ginobili announced his decision to hang up his sneakers. He had been working out at the Spurs practice facility daily, and he was, to be sure, tied to a contract that secured for him a roster spot should he have opted to play for one more year. The writing was on the wall, though, beginning with the retirement of Tim Duncan in 2016 and culminating with the departure of Tony Parker earlier in the offseason. The subsequent trade of Kawhi Leonard didn’t help, although it wouldn’t have mattered a whit to him had The Original Big Three still been intact.
And so Ginobili announced the end of his playing career yesterday, no doubt an agonizing development given his singular love for the sport that made him an international star and a local legend. His exit closes the book on a 16-year affair with the National Basketball Association that saw the Spurs nab four championships and establish a well-deserved and unparalleled reputation for consistent competitiveness. Season in and season out, they were in the thick of things, certain to vie for the hardware with a decidedly team-centered philosophy. And, just like them, he was expected to produce like clockwork, surely and efficiently sans any effort to draw attention to himself.
Given Ginobili’s style of play, however, staying out of the limelight couldn’t have been possible. He was a tireless dynamo armed with a velvet-smooth touch, superb court vision, and, most importantly, utter fearlessness. His unique skill set and willingness to defy the odds — and, occasionally, the Spurs’ system and head coach Gregg Popovich’s instructions — spelled both success and stardom. The Euro step was his, even when it wound up being copied to the point of being part and parcel of his peers’ basic drills; a mere crutch to them, it defined his game.
Not surprisingly, Ginobili noted that he would continue to be involved with the Spurs. Basketball is in his blood, flowing in his veins and compelling him to keep investing in hoops, as much a testament to his work ethic as an offshoot of the rewards he has derived from it. “It has been a fabulous journey,” he tweeted. “Way beyond my wildest dreams.” Indeed — for him and for every single fan who understands how much he has made the sport all the better for having touched it.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Nayong Pilipino board defends lease deal with Chinese casino operator

Nayong Pilipino Foundation (NPF) reiterated that its deal with Hong Kong-based gaming firm Landing International Development Ltd. complied with all legal requirements, saying that graft and corruption allegations against its officials were all but a vicious smear campaign to derail the $1.5-billion integrated resort and casino project.
“Despite the fact that all procedural and legal requirements were strictly followed by the NPF board in getting the project off the ground, opponents and critics of the project had shamelessly foisted lies about the project, and falsely and maliciously accused the NPF, its trustees, and its officials of graft and corruption in approving the deal with Landing Resorts Philippines Development Corp. (LRDPC),” NPF said in a statement.
President Rodrigo R. Duterte earlier this month fired NPF’s entire board for approving the integrated resort and casino project called NayonLanding, which he called a “grossly disadvantageous deal” due to its “ridiculously long” lease deal of 70 years and low lease rates.
NPF however clarified that the lease contract between the two parties never stated that the lease period would span 70 years. Instead, NPF and LRDPC signed a lease deal for 25 years, renewable for another 25.
Should LRDPC’s application with the Tourism Infrastructure and Enterprise Zone Authority classify the project as a tourism enterprise zone, then the initial lease period can be changed to 50 years.
The foundation also noted that the approved lease rates for the 9.57-hectare property — pegged at P360 per square meter per month — is much higher than the basic lease rates of other such projects in the area.
Presidential Spokesperson Harry L. Roque called the statement—which was posted as an advertisement in a number of newspapers — an act of open defiance of the President’s authority.
“At the end of the day, all public officials, including those who are in government-owned and controlled corporations, serve at the pleasure of the appointing authority, who happens to be the President,” Mr. Roque said in a statement.
Mr. Roque also highlighted the president’s stance of no longer wanting a new casino project in the country.
“What the NPF trustees and officials did was actually a violation of the President’s order that there will be no more new casinos allowed to operate in this country,” Mr. Roque said. — Arra B. Francia

Transmission line that will improve Samar power supply near completion — NGCP

National Grid Corporation of the Philippines (NGCP) said on Wednesday that it is close to complete the Ormoc-Babatngon 138-kilovolt (kV) line that is aimed to strengthen the transmission of electricity in the Visayas.
“This line reinforcement strengthens transmission services in Eastern Visayas, particularly improving power supply delivery to Samar. It is NGCP’s continuing commitment to upgrade and improve of the country’s transmission network, especially with the constantly growing demand for power,” the company said in a statement.
The transmission line — built at a cost of P697.6 million as approved by the Energy Regulatory Commission — is one of two components that make up the Leyte-Samar transmission corridor. The line is single-circuit at present.
Power grid operator NGCP said planned or unplanned outages along the line result in a loss of power for the Samar provinces, which remains heavily reliant on power supply from other islands.
“The construction of the second circuit will ensure the reliability of transmission services in the area and will minimize the occurrences of prolonged power interruptions,” it said.
The project involves the expansion of the Ormoc and Babatngon substations in Leyte aside from the construction of another overhead transmission line spanning nearly 80 kilometers.
Sy-led NGCP said that with the construction of a remaining tower and stringing of the line now 94% complete, “improvements on the substation are now about to take place and is expected to be finished before the year ends.”
The project gives way to a stronger transmission corridor from geothermal plants and other generating capacities in Leyte to Samar island. Distribution utilities in the two islands are set to benefit from the upgrading of the said transmission line. — Victor V. Saulon

LTFRB wants more oil firms to participate in fuel subsidy program

Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Martin B. Delgra on Wednesday, Aug. 29, urged fuel companies in the country to participate in the government’s Pantawid Pasada Program that seeks to mitigate the impact of the tax reform law on the prices of fuel.
Mr. Delgra addressed the media at the Palace on Wednesday morning, Aug. 29, on the government’s Pantawid Pasada Program. He said, “Through the Department of Energy (DoE), we are inviting as many gas stations to participate, para mas malawak yung options ng mga (so there are more options for) PUJ operators.”
For now, the participating gas stations, according to Mr. Delgra are Shell, Petrol, Caltex, Unioil, and Phoenix.
Mr. Delgra said, the challenge now is that there some gas stations have no “POS” (point of sale) facilities that would accommodate the Pantawid Pasada Cards as mode of payment.
“One of the things we had discussed with the DoE during the technical working group committee meeting was precisely to address this issue. We wanted to clarify with them if these participating gas stations have POS,” he said.
Mr. Delgra stressed that the Pantawid Pasada Cards, which are being distributed and monitored by the Landbank of the Philippines (LBP), are for “fuel purposes only.”
“The use of the card has to be consistent with the mechanics of the program. The way to monitor the program is that you have to use that in the participating gas stations for buying fuel. As mentioned in the law, it is for fuel purposes only,” he said.
Mr. Delgra said the pilot distribution of the first 10,000 cards began last month in Metro Manila. The regional distribution of cards started this month of August. He also said the target end of distribution is before the end of September this year. — Arjay L. Balinbin

AboitizPower to issue fixed-rate bonds worth P15 billion in fourth quarter

Aboitiz Power Corp. (AboitizPower) will be issuing P15 billion worth of fixed-rate bonds by the fourth quarter of this year to refinance existing debt.
In a disclosure to the stock exchange on Tuesday, Aug. 28, AboitizPower said the bond issuance will consist of a base size of P10 billion, with an oversubscription option of up to P5 billion, with tenors of 5.25 years and 10 years.
AboitizPower looks to use the proceeds of the issuance to refinance the term loan of subsidiary Therma Power, Inc., previously used to partially fund the acquisition of GNPower Mariveles Coal Plant Ltd. Co. in December 2016. Part of the proceeds will also be used to repay short-term loan obligations and for general corporate purposes.
The listed firm appointed BDO Capital Corp. as the offering’s issue manager and, together with BPI Capital Corp. and United Coconut Planters Bank, as the joint lead underwriters. BDO Unibank, Inc. Trust & Investments Group will serve as the trustee.
The bonds will be listed at the Philippine Dealing & Exchange Corp.
Incorporated in 1998, AboitizPower has core interests in hydroelectric, geothermal, solar, coal-fired, and oil-fired power plant with a net sellable capacity of 3,175 megawatts (MW) as of the first half of 2018. The company also has eight distribution utilities under its portfolio, servicing 254 customers with a contracted capacity of 927 MW.
The company reported a net income attributable to the parent of P9.12 billion in the first six months of 2018, six percent lower than the P9.72 billion it posted in the same period a year ago. Gross revenues went up by 15% to P65 billion during the same period.
Shares in AboitizPower slipped 50 centavos or 1.35% to close at P36.50 each at the stock exchange on Wednesday. — Arra B. Francia

Manila Water flags risk of water shortage between 2021 and 2023

Manila Water Co., Inc. has raised the alarm over a possible water shortage starting in 2021 if it fails to get approval for the construction of a new water source from Laguna Lake ahead of the target completion of the Kaliwa dam in Quezon province by 2023.
Geodino V. Carpio, Manila Water chief executive officer, said 2023 is “too late” for the company as supply from Angat barely meets the demand for water within its east zone concession area.
“Today, we’re using all from Angat,” he told reporters in a briefing on Wednesday, Aug. 29, in Quezon City. He was referring to the dam that supplies about 96% of Metro Manila’s water requirement.
The dam delivers about 4,000 million liters per day (MLD), of which 40% or 1,600 is allocated to Manila Water. The rest at 2,400 MLD is supplied to the west zone concessionaire Maynilad Water Services, Inc.
State agency Metro Manila Waterworks and Sewerage System (MWSS) regulates what is allocated to the concessionaires.
“Demand has increased beyond Angat’s capacity to provide,” Mr. Carpio said.
Mr. Carpio said Manila Water’s demand requirement has already exceeded the 1,600 MLD allocation, and has reached 1,650 MLD as of the first quarter. The deficiency at 500 MLD is sourced from La Mesa dam, which is not meant to impound water for distribution.
“We are worried because the rate rebasing is about to be finished,” he said, referring to the new base rate being applied for by the company for the 2018-2022 regulatory period, wherein new water source projects have been proposed. The company expects an “indicative” rate in the coming days.
Mr. Carpio said the company expects to complete this year a 100-MLD water source in Rizal province that should cover the current deficiency and the increase in demand for the next two years until 2020.
“If we stretch it, we may have sufficient water by 2021,” he said.
But between 2021 and 2023, Manila Water will be short, assuming that Kaliwa dam will indeed be finished by 2023, he said. But the Philippines has yet to close a financing deal with China through an official development assistance (ODA).
“For two years, we will be short,” Mr. Carpio said.
He said Manila Water remains hopeful that MWSS would give its approval for the company’s Laguna Lake water supply system project, which is located in the east bay of the lake and provide 250 MLD to complement the ongoing Rizal province water supply improvement project.
The Laguna Lake project can serve 1.446 million consumers while the Rizal project can serve around 788,000. The annual demand growth within Manila Water’s concession is placed at 40 to 50 MLD. — Victor V. Saulon

Premiere Horizon Alliance takes over two limestone mining firms

Premiere Horizon Alliance Corp. (PHA) is taking over two mining companies, marking its entry into limestone exploration.
In a disclosure to the stock exchange on Wednesday, Aug. 29, the listed holding firm said its board of directors have approved the conversion of its advances into infrastructure subsidiary, Redstone Construction and Development Corp. (RCDC).
This will allow RCDC to own up to 100% of Pyramid Hill Mining Industrial Corporation (PHMIC) and Palawan Star Mining Ventures, Inc. (PSMVI), which hold mineral production sharing agreements (MPSAs) covering around 10,384 hectares.
The company last March announced its investment in PHMIC and PSMVI, noting that their MPSAs contain “probable commercial quality limestone deposits located in the mineralized area of Southern Palawan.”
PHA said that RCDC has already acquired 98.88% of PHMIC and 98.55% of PSMVI as of July 11, through conversion of its advances to equity amounting to P220 million and P170 million, respectively.
The Philippine Stock Exchange (PSE) has suspended trading of PHA’s shares on Wednesday morning following the disclosure, until such time that the company discloses more details about the deal. — Arra B. Francia

Philippines eyes 10 loan agreements with China during Xi Jinping’s visit

THE GOVERNMENT expects to ink about 10 loan agreements for infrastructure projects with China during Chinese President Xi Jinping’s visit here in November.
“Some have already started, the rest they are reserving it for November when President Xi Jinping comes here. That was the plan,” Budget Secretary Benjamin E. Diokno said in a media briefing on Wednesday, Aug. 29.
When asked how many loans does the government expects to be sealed by then, Mr. Diokno said there are “at least 10” loan agreements “from the two baskets” of projects that will be signed between the Philippines and China.
The first basket of projects include the Chico River Pump Irrigation Project, New Centennial Water Source-Kaliwa Dam Project, the Philippine National Railways’ South Long Haul Project, and the Davao-Samal Bridge Construction Project, as well as other projects funded by grants.
The second basket meanwhile contains the Ambal-Simuay River and Rio Grande de Mindanao River Flood Control Projects, Pasig-Marikina River and Manggahan Floodway Bridges Construction Project, Subic-Clark Railway Project, Safe Philippines Project Phase 1, and the Rehabilitation of the Agus-Pulangi Hydroelectric Power Plants Project.
In 2016, Mr. Duterte has secured a $9-billion official development assistance from China after his foreign policy shifted away from traditional partners such as the US and the European Union, which have been critical of the government’s campaign against illegal drugs. — Elijah Joseph C. Tubayan

Government makes full award of three-year Treasury bonds

The government accepted all bids for the reissued three-year Treasury bonds (T-bond) it offered on Wednesday, Aug. 29, as rates went up due to the expectation on inflation amid excess liquidity in the market.
The Bureau of the Treasury (BTr) borrowed P15 billion as planned at Wednesday’s auction of reissued three-year bonds with a remaining life of two years and five months.
The offer was less than twice oversubscribed as total tenders from investors amounted to P26.287 billion.
The bonds, which carry a coupon rate of 4.25%, fetched an average rate of 5.136%, 43.3 basis points higher from the 4.703% recorded in the previous bond auction in May.
At the secondary market prior to the auction, the debt notes were quoted at 5.0557%.
National Treasurer Rosalia V. De Leon said the Treasury decdied to fully award the bonds as the three-year tenors continue to be a “sweet spot” for investors.
“We see that there’s continued appetite in the market [because it’s] shorter than the front end of the curve so three years. That’s a sweet spot for the investors so we decided to full award,” Ms. De Leon told reporters following the auction, adding that their yields were at par with the secondary market.
She noted that the rates went up as market players provide for additional buffer in case the market moves. — Karl Angelo N. Vidal

BPI raises $600 million through fixed-rate notes

Bank of the Philippine Islands (BPI) raised $600 million through a senior unsecured note drawdown to maximize flexibility in offshore funding and diversify its liquidity sources.
In a disclosure to the local stock exchange on Wednesday, the Ayala-led lender said it raised $600 million from its five-year Senior Unsecured Fixed Rate S Notes which fetched a coupon rate of 4.25%.
The capital raising activity marked the maiden drawdown from its $2-billion medium-term note program established in June and the debut offshore bond offering of the lender.
“The bank will issue the notes as part of its initiatives to maximize flexibility in accessing offshore funding,” BPI said in the statement.
The transaction is expected to settle on Sept. 4 and will be listed on the Singapore Stock Exchange.
The notes are expected to have an issue rating of “Baa2” by credit rater Moody’s Investors Service, a notch above the minimum investment grade. — Karl Angelo N. Vidal

UnionBank sets final terms for stock rights offering

UnionBank of the Philippines has set the final terms for its stock rights offering (SRO), where it is looking to raise about P10 billion to support expansion.
In a disclosure to the local bourse late Tuesday, Aug. 28, the Aboitiz-led UnionBank said it will offer 158.8 million common shares under the SRO priced at P62.97 apiece.
The offering will be conducted from Sept. 10 to 21.
Eligible shareholders are entitled to subscribe to a share for every 6.6644 common shares as of the Sept. 3 record date. Ex-date is on Aug. 29.
The additional capital will boost the lender’s common equity Tier 1 and total capital adequacy ratio of the bank.
“The proceeds from the stock rights offer will be used to allow for continued growth of assets of the bank,” UnionBank previously told the local bourse.
UnionBank, the ninth largest commercial bank in asset terms as of end-March, logged a net income of P4.7 billion in the first hald of the year, 8% higher than the P4.4 billion profit booking in the same period last year. — Karl Angelo N. Vidal

Five things you need to know about securing your data

Filipinos today are among the most wired populations in the world. In fact, UK-based consultancy firm, We Are Social, recently ranked the Philippines first in terms of social media usage, three years running.
According to their study, the 67 million Filipinos online today spent an average of almost four hours a day on social media alone. That data uploaded and gathered per person numbers in the gigabytes (just think about how many selfies you bless your feed with every day).
Placed in the context of one of the world’s fastest growing economies, thanks to industries like business process outsourcing (BPO), that level of data output makes the Philippines a pretty attractive target for cyberattacks.
Last week, Harriet Green, chairman and CEO of IBM Asia Pacific, shared her insights on the responsibilities of individuals, enterprises, and the government in safeguarding that data security.
Here are five things you need to know about securing your data:

Every individual, young or old, should have their own personal data strategy.

There’s little an individual user can do to stop a cyberattack. But understanding the importance of online hygiene is essential for today’s digital natives.
Data — at scale — has massive value. It’s the reason platforms like Facebook are free to use. Every like, view, and comment you make adds up to a composite profile that platforms can then sell to digital marketers.
“The early beneficiaries of digitization were very few, very large e-commerce and collaboration companies,” Ms. Green said. “All of those business models are on the basis that you give your data for free for them to then use to create a set of economics and sell to whoever.”
As the saying goes: If you don’t seem to be paying for the product, you’re the product.
So how can individuals respond? By assessing their online activities, and adopting a personal data strategy.
“Which [data] needs to be shared with the world at large, with your closest friends?” Ms. Green asked. “What is your view on privacy? Is it relevant that you need everyone to know exactly where you are at any given time? There is a personal responsibility there.”
“It’s your data. You have a right to decide how that data is used.”

Enterprises should be held accountable in keeping their clients’ data secure.

“Eighty-percent of the world’s data is not searchable,” Ms. Green said. “80% belongs to enterprises. It is every roaming algorithm that your local telecom company uses, it’s your data that your bank has kept on you for the transactions that you do.”
According to Ms. Green, it’s the responsibility of enterprises to ensure they’re respecting and safeguarding the data of their users. In turn, individuals need to scrutinize the enterprises they entrust with their data.
“As you trench through the terms and conditions, what does that mean to you and the people you work for?” she asked. “If your nine-year-old daughter [shares data with that company], how do you feel about the protection that exists within that company?”
A checklist of questions one should ask of any company should include: what their stated data policy is; who their chief privacy or chief security officer is; and what the company plans to do in the event of a data breach.
For big businesses and SMEs handling user data, this should be a primary concern.
Stephen Braim, IBM’s vice president for government and regulatory affairs, noted that the stock market doesn’t take too kindly to data breaches.
“When companies had breaches, they tend to suffer the single biggest losses in the stock market,” he said. “You don’t need many of those losses for companies to realize that this is not behaviour that we tolerate as shareholders and as consumers.”

Governments need to enforce data privacy and security through legislation.

On top of the responsibilities of individuals and enterprises, the government should also commit to taking action against those who compromise the security and privacy of its citizens’ data.
Mr. Braim commended the Philippine government for its data initiatives, citing Republic Act 10173, or the Data Privacy Act of 2012, as one of the key pieces of legislation that puts the country ahead in terms of cybersecurity.
“The other thing that is very pleasing [is that you have] a government privacy advisory commission,” he said. “That we don’t see a lot of. Once privacy laws come into place in countries, you often don’t see governments then saying ‘let’s have an ongoing industry discussion’. But it happens here.”
When it comes to data: enterprises need to be respectful, individuals need to be vigilant, and governments need to make sure everyone is playing by the rules.
“No one wants to live in a state where the government controls everything. So it has to be a combination of all those elements,” Ms. Green said.

Developing technologies can help — and hinder — data initiatives.

Today, technologies like blockchain and AI are hailed for their potential to build data systems that are impervious to both hacking and (to a degree) human error.
Imagine an insurance company utilizing the immutable blockchain to encode compliance reports, and AI to study those data sets for instantaneous analytics.
But with all the promises of these developing technologies, should come a healthy dose of skepticism. According to Glen Thomas, vice president for Brand & Communications at IBM, adopters need to be prudent about how they employ these technologies.
“Artificial intelligence needs to be trained,” he said. “All of the data that goes into those systems — the AI system can’t tell whether that data is reliable, biased, or accurate.”
“Bad data will create biased AI systems,” he said. “So the recommendations that come out of them that people rely on may be unfounded, flawed. This goes back to corporate ethics. How we treat data is so important.”
Ms. Green added, “Imagine a world where those unconscious biases, where the algorithms reflect the bias of gender or race, color or ethnicity.”
“Regardless of your age, sex, color, creed, sexuality, physical ability, the data algorithm should not be making a decision alone for you based on the shape of your face, or the orientation of your eyes or whatever,” she said.

Filipinos should realize the value of their private data — because they produce a lot of it.

“Data is the new oil. It is the ultimate most powerful commodity,” Ms. Green said.
As technology continues to become a greater part of daily life, Ms. Green emphasized the importance of being vigilant with one’s data.
In a recent report by cybersecurity company Kaspersky Lab, the Philippines placed ninth in the world in terms of volume of online attacks during the second quarter in 2018, leaping up from 44th a year earlier.
Kaspersky Lab found that the Philippines registered 10.6 million malware infections during the three months to June, more than triple the number of threats from a year earlier.
IBM’s own data found that companies in the Philippines receive anywhere from 50 to 100 cyberattacks a day.
“This isn’t just about banks and airlines and telecommunications,” Ms. Green said. “Here in the Philippines, your number one industry is services, your number two industry is BPO, all of it is driven around data.”
Far from suggesting people go off the grid, Ms. Green simply asks individuals to consider data security as they would consider resources like time or money.
“All of us need to think about data principles and data security in the same way we would think about convenience,” Ms. Green said. “We are suggesting that everyone, enterprises, governments and individuals make decisions, ask those questions.”
 

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