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Loving Celine Dion even more

By Michelle Anne P. Soliman, Reporter
Concert Review
Celine Dion Live 2018
July 19, SM Mall of Asia Arena
IT WAS a weekend morning in the late 1990s when a familiar piano introduction (in C major) blared into the room and woke this writer (who was then probably in kindergarten) from her sleep. “I know this song. I’ve heard it before,” I thought. I got up and hurried to the shelf beside the stereo system (where Dad would usually place his newly purchased CDs) and saw an album cover with a woman wearing a white shirt and denim pants, her hair in a pixie cut. The singer’s voice was captivating. From then on, I continued to listen to her songs — playing them loud and singing along as if it were a live concert.
On the windy and cold evening of July 19, the memory of listening to those songs came back. Only, it was not with a record, but the live, powerful, and signature vocals of Celine Dion.
The show began at 9:10 p.m. The crowd cheered as she sang “The Power of Love” (a Jennifer Rush original) and entered center stage in a bedazzled gold suit.
Ms. Dion continued with her 1999 single, “That’s the Way It Is” from the greatest hits album, All the Way…A Decade of Song.
After the song, Ms. Dion stood in awe of the cheering crowd. “We finally made it,” she said, referring to her aborted visit to the Philippines in 2014 — she had to cancel that concert due to the deteriorating health of her husband and manager, René Angélil. So this year she made her first visit to Manila, as part of the Celine Dion Live 2018 tour.
Ms. Dion went on and told the crowd that she did not know why her visit took a while. “I guess I live too far,” she said, and expressed her gratitude for Filipinos support of her music over nearly three decades.
She ended the first segment of the show with “I’m Alive” (A New Day Has Come, 2002) and an audience sing-along to “Because You Loved Me” (Falling into You, 1996).
The evening continued with hits such as “It’s All Coming Back to Me Now,” and the movie themes such as “Beauty and the Beast” from Disney’s Beauty and the Beast (1991) which launched the singer’s international breakthrough; and “Ashes” from Deadpool 2 (2018).
Ms. Dion, now in a multi-colored fringe dress, also showcased a versatile side, performing a salsa dance while singing “Falling into You” at the same time.
The second hour of the show continued with a repertoire that transitioned to ballads.
Ms. Dion recalled the experience of coping with the loss of her late husband with a heartfelt performance of “Recovering,” a song written by American singer Pink.
The crowd fell quiet upon hearing the first bars to the Eric Carmen original, “All by Myself.” It felt as if the crowd silently anticipated the 15-second sustained high note which Ms. Dion hit flawlessly. As for this writer, I was in awe to finally hear and witness the power ballad performed live.
Afterwards, the mood eased with a performance — featuring a the string quartet — of Janis Ian’s “At Seventeen,” (1975) followed by “A New Day has Come,” (2002), and “Unison” (1990).
When Ms. Dion and the violinist remained downstage, the faint sound of the instrument gave a hint that “To Love You More” was the next song. And it was. It was sung as seamless as the live performance that frequented the music channel charts in 2003.
Towards the end of the show, the show shifted to a more upbeat atmosphere as neon lights filled the stage. Ms. Dion (in a silver dress with neon pink accents) performed rendition of Prince’s 1986 hit, “Kiss.” The show mellowed for a while with “Purple Rain,” and concluded with an energetic performance of “River Deep, Mountain High” (a Tina Turner original).
A momentary stage blackout kept the crowd cheering for more. It did not take long before the band began the first bars to James Horner’s “Hymn to the Sea” from the Titanic soundtrack. The darkness suggested the atmosphere of being adrift, and the crowd held up their smartphone flashlights, illuminating the arena like stars.
Reappearing in a white floor-length gown with a pink drape, Ms. Dion stood out from the cool sea blue stage lighting. The much-awaited performance of the award-winning “My Heart Wil Go On” was superb.
The crowd cheered unceasingly even as the singer and her band took their final bows. Ms. Dion became emotional and stood still for a moment, as if not wanting to exit the stage. She expressed her gratitude through singing Elvis Presley’s “Can’t Help Falling in Love” acapella, the crowd singing along.
When the lights dimmed a final time and the singer exited the stage, I remembered one of her earlier statements: “That’s all I know. That’s all I’ve been doing — singing.”
And with Ms. Dion’s powerful voice, that is all she needs to do.

Gov’t fully awards T-bill offer on strong demand

By Karl Angelo N. Vidal, Reporter
THE GOVERNMENT made a full award of the Treasury bills (T-bill) it auctioned off on Monday, with rates on the longer tenors rising following the hints of a fresh rate hike from the central bank chief.
The Bureau of the Treasury (BTr) borrowed P15 billion as planned at its T-bills auction yesterday.
The offer was twice oversubscribed as total tenders amounted to P32.9 billion, climbing from the P28.2 billion recorded at last week’s offering.
Broken down, the government borrowed P4 billion as planned via the 91-day tenor yesterday as tenders by investors totalled P10.431 billion. The average rate declined 7.2 basis points to 3.219% from the 3.291% logged in the previous auction.
For the 182-day T-bills, the BTr borrowed the programmed P6 billion out of the P8.996 billion offered by banks and other financial institutions. The average rate picked up by five basis points to 4.235% from the 4.185% tallied in the previous offering.
The Treasury also made a full award of the 364-day papers as it raised P6 billion as planned out of the total offers amounting to P13.489 billion. The average yield likewise rose by 4.2 basis points to 4.809% from last week’s 4.767%.
At the secondary market prior to the auction, three-month and six-month papers were quoted at 3.2354% and 4.3675%, respectively, while the one-year securities fetched a 4.6467% yield.
At the close of the trading, the 91-day T-bill saw its rate climb to 3.2905%, while the 182-day papers rallied to yield 4.2212%. The 364-day tenor also slipped to 4.6465%.
Following the auction, National Treasurer Rosalia V. De Leon said the bureau saw good results amid healthy market appetite.
“We had a full award for all tenors during the auction and we saw rates that we anticipate and are ready to accept,” Ms. De Leon told reporters on Monday.
She noted that the auction came after the “very strong” pronouncement by the Bangko Sentral ng Pilipinas (BSP) for a possible interest rate hike next month.
“Maybe this is coming from the very strong pronouncement of the BSP governor last Friday…about the very strong action to taken to temper inflation expectations and bring back to the inflation path particularly next year.”
On Friday, BSP Governor Nestor A. Espenilla, Jr. said the central bank is considering another interest rate hike as early as next month to quell inflation expectations.
“Let me say that the BSP is considering strong follow-through monetary adjustment at the next meeting of the Monetary Board in August,” Mr. Espenilla said in a speech.
The central bank chief added that the sustained pressures on the peso could adversely affect inflation, although they believe the country’s fundamentals are “strong and healthy.”
The government reported earlier this month that headline inflation accelerated to a fresh five-year high of 5.2% in June, faster than the 4.6% logged the previous month as well as estimates from the BSP and the Department of Finance.
The monetary authority has already raised its rates twice this year. Rates now stand at a 3-4% range.
“The market should now take [the pronouncements of the BSP] more seriously. The market has always been saying that [the BSP] is behind the curve, but I think there is more stronger communication being made by the central bank,” Ms. De Leon said.
She added that revenues of the Bureau of the Internal Revenue and the Bureau of Customs will likely be “sustained,” which means the government is not under any pressure to borrow at high rates.
“We are now in a very good position to calibrate our borrowings given that the performance of the two agencies will allow us to be able to…not accept bids at outrageous rates if ever that would be offered by the market.”
Meanwhile, a trader said the auction results were within expectations except for the three-month papers, as the rate for the tenor declined more than expected.
“Given the good rates offered by the dealers, the Treasury decided to fully award the bids,” the trader said in a phone interview.

Atos buys Syntel in $3.4-B US push for Amex, FedEx

ATOS SE agreed to buy Syntel, Inc. in a $3.4-billion cash deal to boost the French computer-services provider’s US access, to customers including financials like American Express Co. and State Street Corp.
At $41 a share, the transaction is also a way for acquisitive Atos to bounce back from a rebuffed bid 8 months ago on Gemalto NV, which secures digital payments for banks and other clients. The per-share figure is 4.8% more than Syntel’s closing price of $39.13 on July 20. The total price is $3.57 billion including Syntel debt, the companies said Sunday in a statement.
“We’ve just acquired a massive booster to our US business and to our digital business,” Atos Finance Chief Elie Girard said in a call with reporters on Monday. As a French company reinforcing its presence in the US, “we’re absolutely not worried about trade — our industry is not on the radar as a target of trade wars,” he said.
Shares in Atos rose as much as 3.5% in Paris trading.
Syntel’s top three customers — American Express, State Street Bank and FedEx Corp. — accounted for 45% of its revenue last year, and only about 11% of sales came from outside of North America, according to an annual report. While the company gets most of its revenue from the US, the bulk of its 23,000-person workforce is in India.
Atos said it expects the deal to close by year-end, adding to earnings immediately and providing “double-digit accretion as early as 2019” excluding transaction costs and goodwill. The boards of both companies approved the transaction on July 20 and Syntel shareholders holding 51% of the stock, including founders, pledged to vote in favor, according to a statement.
“We see potential for synergies on sales as well as margins,” Girard said. The acquisition price is about 14.7 times Syntel’s earnings before interest and taxes over the past 12 months, before taking synergies into account, he said.
While Atos’s market capitalization of €13.2 billion ($15.4 billion) is almost five times that of Syntel, the American company’s shares have been growing faster. Syntel shares have doubled in the past year, while Atos is little changed.
Atos on Monday also reported earnings for the second quarter and confirmed its full-year targets.
Syntel’s net revenue has dropped for the past two years, including a 4.4% decline to $923.8 million in 2017. The company has global development centers in India, Scotland, Poland and the Philippines, with 76% of its billable workforce located in India, according to Syntel’s annual report.
The transaction will be financed with debt underwritten by BNP Paribas SA and JPMorgan Chase & Co. Atos plans to hold a conference call on July 23 at 8 a.m. Paris time to discuss the transaction. — Reuters

New office offers a glimpse of the country’s future


By Bjorn Biel M. Beltran, Special Features Writer
THE PHILIPPINES’ Information Technology and Business Process Management (IT-BPM) sector has come a long way since the country overtook India as the global leader for voice-based services in 2010. As the country’s best-performing sector for the past four years, as well as the biggest employment generator according to government records, the IT-BPM industry has seen much talk trying to envision where it is headed next.
What else can the country offer the world?
In unveiling its newly renovated headquarters in Bonifacio Global City, Taguig, the Information Technology and Business Process Association of the Philippines (IBPAP) is trying its hand at answering just that. The office — often the site of meetings between the industry’s representatives and its stakeholders in the private and public sector, as well as with potential investors and locators — aims to feature the best of Filipino culture and highlight the creativity of its people.
“It’s a snapshot of the Philippine IT-BPM industry in one office,” IBPAP President and CEO, Rey E. Untal said of IBPAP’s newly redesigned workplace.
Mr. Untal noted that the office, which was finished late last year, seeks to capture the essence of the image that the country is trying to project to the global market.
“Now more than ever, you will find key figures from the different subsectors of the industry coming together and collaborating under one roof. When we host visitors, as well as locators, this will be their window to the Philippines. This is the first impression that they will get.”
Different areas of the office highlight a certain design feature and Filipino motifs. Traditional hand-woven mats called banig and indigenous fabrics t’nalak and hablon, and even coconut husk fabric are used as accents and wall decorations.
“As the organization that represents the entire IT-BPM industry, we wanted the new office to give visitors a glimpse of what Philippines is all about — the home of human and tech. The use of indigenous materials and local patterns were incorporated against the sleek, modern design of the office to reflect this synergy,” Mr. Untal added.
For the office renovation, IBPAP partnered with business consulting company, DTSI Group. The vision was to make IBPAP’s headquarters not only showcase local culture but be the office of the future — offering an efficient, non-typical working environment with open and shared workspaces.
“We are currently seeing massive technology developments affecting the industry. The Office of the Future features strategically located and well-designed workspaces that improve productivity, foster creativity, and promote a healthy organizational culture,” Mr. Untal said. “Our staff are free to sit anywhere they want — from desks to benches to high bar tables. We want them to be able to openly interact with every member of the team which is why we made an entire space that encourages interaction, collaboration and productivity.”
The move is in line with IBPAP’s Philippine IT-BPM Roadmap 2022, which seeks to accelerate growth of the country’s IT-BPM industry by strengthening domain expertise and capabilities in the emerging sectors, leveraging advancements in technology and ensuring the Filipino talent is future ready with high value skills.
Among the goals of the road map is to create 1.8 million direct jobs, in addition to the 7.6 million Filipinos employed either directly or indirectly by the IT-BPM industry, and bring in an estimated $40 billion in revenue by 2022.

HK property bears rear their heads (yet again)

HONG KONG’S property market has a habit of humbling the bears, shattering predictions that the laws of gravity must eventually prevail.
But now, a crosscurrent of headwinds — from a slowing Chinese economy to upcoming interest-rate hikes and a reinvigorated regulatory push to tame home prices — have emboldened some long-standing skeptics to renew calls that a correction could be imminent. Citigroup, Inc. last week called time on the party, predicting a 7% second-half slide, and Bocom International Holdings Co.’s Hao Hong sees the possibility of a decline of more than twice that.
“Property stocks are telling you that the correction is coming,” Hong said, citing equity declines as a leading indicator. “I won’t be surprised to see prices coming down 15% in the coming months.”
It isn’t a foregone conclusion that the world’s least affordable property market will come crashing down. In a place where flats the size of two parking spaces sell for north of $1 million, buyer exuberance has swept away all pessimistic forecasts. But government efforts to tackle sky-high prices are suddenly getting help from an array of external forces, including Donald Trump’s push to tackle Chinese trade practices he calls unfair.
For Citigroup analysts including Ken Yeung, a 13% gain in prices in the first half has increased the risk of a correction in the second, while an economic slowdown in China could serve as a trigger. Nomura Holdings, Inc. is sticking with its forecast for prices to be flat for the year — indicating a slide in the second half — while Bank of America Merrill Lynch sees a 10% to 20% correction in 2019-2020.
Hong Kong’s property bears have been wrong before. Citigroup’s analysts have made three bearish calls from November 2016 only to watch as prices advanced by 30%. And many analysts see no meaningful impact from higher interest rates any time soon, especially when real rates remain negative because of inflation, fueling buyer enthusiasm. Mortgage rates at historic lows and a supply shortage that the government can’t solve quickly may also cushion any market declines.
Still, there are other risks this time around, including an escalating trade dispute that could roil global economies and exacerbate a slowdown in China.
“We are most concerned about the implication of a trade war,” said Simon Smith, who heads Savills Research & Consultancy in Hong Kong. “It would ravage the global economies, particularly China, which has an implication for valuations and stock market indices, and will finally have an impact on the housing market in Hong Kong.”
Government cooling measures such as the vacancy tax will only amplify the scale of any slump, according to Denis Ma, head of research at Jones Lang LaSalle, Inc. If approved by lawmakers, Lam’s proposal will require apartments left unsold for more than six months to be taxed at twice the annual rental income, or about 5% of the unit’s value.
“There isn’t going to be any soft landing with these measures in place,” Ma said.
The city’s prime rate, which sets the upper limit on mortgages, is poised for the first increase in a decade. That could deflate demand from first-time buyers, predicted Ryan Lam, head of research at Shanghai Commercial Bank Ltd.
“It will end up becoming home exchanges between existing owners,” Lam said. “When people realize there’s only current players and no newcomers, the sentiment might overturn.” — Bloomberg

BSP OK’s Metrobank’s P25-B LTNCDs

METROPOLITAN Bank & Trust Co. (Metrobank) received central bank approval to issue P25 billion worth of long-term negotiable certificates of deposit (LTNCD) to diversify its funding sources.
In a disclosure to the local bourse on Monday, the Ty-led lender said the Bangko Sentral ng Pilipinas has approved the bank’s plan to issue peso-denominated LTNCDs of up to P25 billion as okayed by its board of directors in April.
The capital raising activity will be done in one or more tranches of at least P2 billion per tranche with tenors of 5.5 years up to 10 years, the lender said.
The issuance of the LTNCDs will be subject to market conditions. The issued long-term papers will be listed on the Philippine Dealing & Exchange Corp.
Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”
In April, Metrobank Head of Investor Relations Juan Placido T. Mapa III said the LTNCD issuance is part of the bank’s plan to diversify its funding sources.
“The proposed LTNCD program is part of our overall objective of diversifying funding sources and raising long term deposits,” Mr. Mapa told BusinessWorld in April, adding the bank has been issuing long-term notes regularly in the past few years.
To date, Metrobank has raised P26.65 billion through issuances of LTNCDs, with the latest one in July last year, where it raised P3.75 billion.
In April, Metrobank completed a P60-billion stock rights offer, selling 799.8 million common shares at P75 apiece.
Proceeds from the rights offering were set to be used for loan expansion across the various segments of the economy, as well as the acquisition of the remaining stake of ANZ Funds Pty. Ltd. in credit card provider Metrobank Card Corp., thereby fully owning the credit card issuer.
Other lenders are embarking on fundraising exercises to boost their capital and expand their businesses. UnionBank of the Philippines, Inc., BDO Unibank, Inc., Security Bank Corp., East West Banking Corp. China Banking Corp. and Robinsons Bank Corp. have also issued LTNCDs this year.
Metrobank posted a net income of P5.2 billion in the second quarter, 31% higher than the P3.9 billion recorded in the same period last year, on the back of its robust core business.
Shares in Metrobank closed at P72.90 apiece on Monday, climbing P2.90 or 4.14%. — Karl Angelo N. Vidal

Second time lucky for Denzel whose new film tops US box office

HOLLYWOOD — SUPERSTAR Denzel Washington had never made a sequel in a career reaching back nearly four decades, but when he did, with the Sony/Columbia production of The Equalizer 2, it managed to open at the top of the North American box office.
With estimated ticket sales of $35.8 million for the three-day weekend, Equalizer edged out another new sequel, star-studded Mamma Mia! Here We Go Again, according to industry tracker Exhibitor Relations.
In his new film, Washington again plays a former black-ops agent — and now soft-spoken Lyft driver — who is drawn back into action to avenge a friend’s death. Director Antoine Fuqua also made Training Day, which earned Washington a best actor Oscar nod.
Industry watchers had expected Universal’s Mamma Mia! to open atop the box office, but its ticket sales of $34.4 million were “by no means a disappointment” at 22% above the original film’s opening, according to Hollywood Reporter.
With a star-studded cast — including Meryl Streep, Amanda Seyfried, Colin Firth, and Pierce Brosnan — the film is set after the events of the original Mamma Mia! but uses flashbacks to fill in the story of Streep’s carefree character on the sun-splashed Greek island where an ABBA soundtrack is never far away.
In third spot was Hotel Transylvania 3: Summer Vacation from Sony, which took in $23.2 million. The animated comedy, whose voice cast includes Adam Sandler and Selena Gomez, follows Count Dracula and his family as they get away from their hotel for their own vacation.
Slipping from second last week to fourth was Ant-Man and the Wasp, the 20th release in Disney’s Marvel Cinematic Universe, at $16.1 million. It has ex-con Scott Lang (Paul Rudd) struggling to balance home life and Ant-Man duties as he and old flame Hope van Dyne (Evangeline Lilly, alias the Wasp), take up an urgent new mission.
And in fifth, also from Disney, was Incredibles 2, at $11.5 million, which earlier in the month pushed past Pixar stablemate Finding Dory as the top-grossing animated film of all time.
Rounding out the top 10 were: Jurassic World: Fallen Kingdom ($11 million); Skyscraper ($11 million); The First Purge ($5 million); Unfriended: Dark Web ($3.5 million); and, Sorry to Bother You ($2.8 million). — AFP

DLPC seeks regulatory approval for energy supply deals

DAVAO LIGHT and Power Co., Inc. (DLPC), the dominant power distribution utility in Mindanao, is seeking approval from the Energy Regulatory Commission (ERC) for “non-firm” energy supply agreements it has forged with two power generation companies.
After holding separate competitive selection processes, DLPC has forged supply deals with Western Mindanao Power Corp. (WMPC) for 60 megawatts (MW), and with Therma Marine, Inc. (TMI) for another 60 MW.
“As part of its thrust to provide a more resilient sourcing of the power needs of its customers, DLPC deemed it prudent to have an alternative source of power from suppliers that willing and capable of supplying power to DLPC on an as-needed, or non-firm, basis,” the utility said in its application.
“DPLC sought competitive offers for the non-firm supply of up to 60-MW of capacity from prospective suppliers. After the second round of the competitive selection process, two winning bidders emerged, and DLPC awarded the signed two non-firm supply contracts with the winning bidders,” it added.
In the agreement, WMPC will supply power from its 100-MW bunker C-fired diesel power generation plant in Brgy. Sangali, Zamboanga City. TMI, meanwhile, will supply from its power facilities. It owns and operates two 100-MW power barges in San Roque, Maco, Compostela Valley, and Sta. Ana, Nasipit, Agusan del Norte.
Under the energy supply agreement, the contract is for a period of three years. The deal also stipulates that at any time during the contract period, the parties may enter into good faith negotiations to extend the agreement under the same terms and conditions. — Victor V. Saulon

Booming Bacolod attracts Seda to open its seventh hotel in the country


THE BOOMING Business Process Outsourcing (BPO) industry and tourism are keeping Bacolod a busy city. It is for this reason that Seda Capitol Central was opened in the City of Smiles this April.
“We are pleased to have spotted opportunities in Bacolod early and have been warmly received by business travelers, tourists, and local residents,” Seda Senior Group general manager Andrea Mastellone was quoted as saying in a press release.
With the developments in the city’s infrastructure, business and tourist destinations like as the newly refurbished Negros museum, Seda Capitol Central hotel manager Rhett Villaruz observed the city’s need for hotel rooms and services.
Seda Capitol Central, the seventh Seda property in the country, is located within the Negros Occidental Provincial Capitol complex and situated beside the Bacolod Capitol lagoon.
The seven-floor hotel has 154 rooms. It offers 35-square meter (sq.m.) studio-style premier rooms connected with a 25-sq.m. deluxe twin room; 62 deluxe king rooms; and one 90-sq.m. suite which includes a king-size bed, a living room and dining area. All the room interiors feature Seda’s signature monochrome color scheme with green accents.
The hotel’s F&B offerings are Misto (Italian for “mixed), an all-day dining facility serving local and international dishes, and the Straight-Up rooftop bar, which is divided into an indoor and al fresco area which offers music, drinks, and a view of the city’s skyline.
Among the hotel’s other facilities are two 24-seat meeting rooms, a ballroom which can accommodate up to 200 guests, a swimming pool, and a gym.
A short stroll from the hotel is the Ayala Capitol Central, a 70,000 sq.m. mall which is targeted to open in October.
“It is a must for the accommodations to be established first so that when engineers, and people from the construction side, other subsidiaries, and tourists visit, it would be easier to plot their travel since they have an accommodation already that their familiar with,” Mr. Villaruz told BusinessWorld when discussing why the hotel opened before the mall, during a media visit on June 30.
“Our goal is to be the preferred hospitality brand in the country catering to both local and global travelers. By offering our guests superior accommodation in strategic locations, Seda has succeeded in attracting a loyal following,” Ms. Mastellone was quoted as saying in a press release.
The mall and hotel are being developed in partnership with the provincial government. The community will also include a BPO office and residential condominiums.
Two more Seda hotels — Seda Ayala Center Cebu and Seda BGC Tower 2 in Taguig — are targeted to open within the year.
Seda Capitol Central is located at Lacson St., cor. North Capitol Road, Bacolod City, Negros Occidental. — Michelle Anne P. Soliman

Spotify says no to payola on its playlists

SPOTIFY TECHNOLOGY SA is overhauling the way musicians and record labels submit songs for certain playlists, a move that will affect how tens of thousands of artists reach their fans.
Playlists programmed by Spotify employees account for about a third of all listening on the service, demonstrating how influential they are. So the company is trying to set clearer guidelines about how the lists are assembled.
Artists and labels can now submit music directly to the teams in charge of programming the playlists, including information about the song’s composition and background. But they can’t pay to ensure their songs get played.
The new system will further enhance the power of playlist editors, who have emerged as the 21st century version of a radio disc jockeys. Spotify, Apple Music, YouTube, and Amazon.com Inc. have all hired music experts to help program their playlists, and often poach top curators from one another to gain an edge.
Playlists are central to Spotify’s plan to one day turn a profit from its music service. The company is trying to expand its most popular playlists, including Viva Latino and Rap Caviar, into larger enterprises that encompass concert series, merchandise and video. Spotify reports a loss because of the hefty cut of its sales that goes to music rights holders.
Record labels have worried Spotify would use the growing importance of its playlists to charge rights holders for positions — as radio stations did for years under a system known as payola.
“We want to make something crystal clear: No one can pay to be added to one of Spotify’s editorial playlists,” Spotify said in a blog post. — Bloomberg

Producers Bank merges with two rural lenders

PRODUCERS Savings Bank Corp. has absorbed two rural banks.

By Melissa Luz T. Lopez, Senior Reporter
A THRIFT BANK has absorbed two smaller lenders within Central Luzon, in line with a push by the Bangko Sentral ng Pilipinas (BSP) for bank mergers.
In a circular issued last week, the BSP said Producers Savings Bank Corp. (PROSB) has merged with the Rural Bank of Bustos, Inc. from Bulacan and the Rural Bank of Sto. Domingo, Inc. based in Nueva Ecija.
BSP Deputy Governor Chuchi G. Fonacier issued Circular Letter 2018-055 on July 17 to announce that PROSB has been named as the surviving corporation following a merger plan executed by the three small banks in August 2017.
The Securities and Exchange Commission approved the consolidation last month, paving the way for the merged thrift bank to start its new operations on June 29.
PROSB is a thrift lender headquartered in Pasig City led by Andres M. Cornejo as president and chief executive officer. Former Land Bank of the Philippines president Gilda E. Pico is currently the bank’s chairman.
The bank has 166 branches.
It is the 14th biggest thrift lender in the country as of end-March with P14.977 billion worth of assets, according to latest available central bank data.
The bank booked P226.255 million in consolidated net income in 2017, down from the P311.796 million made a year ago.
With the merger, the BSP said the entire assets and liabilities of the two provincial banks “will be transferred to and absorbed by” PROSB.
The central bank has been encouraging mergers among small banks in order to fortify their financial footing by dangling a host of incentives for those who pursue such plans.
State agencies have also extended the Consolidation Program for Rural Banks (CPRB) until 2019 to prod lenders located in one province or region to come together and form a new financial entity. These mergers are seen to bolster the capital and asset base of these lenders, making them more liquid and resilient versus defaults.
The central bank has ordered four banks to shut down this year after they were found with unhealthy balance sheets and insufficient assets to remain in business.

GNPower Kauswagan ramps up development of Mindanao power plant

By Victor V. Saulon, Sub-Editor
GNPOWER KAUSWAGAN Ltd. Co. (GNPK) has stepped up the development of one of Mindanao’s biggest power plants and has sought regulatory approval to build a point-to-point transmission line from the facility to the national grid.
In its application with the Energy Regulatory Commission (ERC), GNPK said it is building a clean pulverized coal-fired power generation facility with four units, each with a capacity of 138 megawatts (MW) or a total of 552 MW.
GNPK, which is led by Ayala Corp. subsidiary AC Energy Holdings, Inc., is seeking ERC approval to develop, own and operate grid connection facilities with a capacity of 230 kilovolt (kV) and a 69 kV.
“In order for GNPK to timely conduct the necessary testing and commissioning of the first unit of the [power plant] by the second half of 2018, GNPK intends to have the Dedicated Connection Facilities operationally ready by then,” it said in its application.
“GNPK and NGCP are currently discussing the terms and conditions of the connection agreement which will govern the interconnection and transmission of power supply” from the generation facility into the Mindanao grid, it added.
The company is building the power plant in barangays Libertad and Tacub in the municipality of Kauswagan in Lanao del Norte province.
In its application with the ERC, GNPK said the power plant will be connected to the Mindanao grid through the Balo-I-Kauswagan-Aurora 230-kV transmission line. Given the location of the facility, its optimum connection to the grid network should be through the National Grid Corporation of the Philippines’ (NGCP) 230 kV transmission line.
The company said the technical feasibility of connecting the power plant to NGCP’s Kauswagan 230-kV substation was confirmed in the system impact study (SIS) that the system operator approved in April 2014.
Aside from the SIS, a facility study has been conducted to determine the technical specifications, the design and operational criteria, and the cost of the equipment, engineering, procurement and construction, as well as the time required for the proposed connection.
GNPK is a subsidiary of AC Energy in partnership with the Philippine Investment Alliance for Infrastructure Fund and Power Partners. The construction of the plant is in full swing and is expected to be in commercial operation by 2018, AC Energy said in its website.
The facility will operate as a baseload plant to support the power demand and economic development of Mindanao, it added.
In its initial order, the ERC said it had found the application “sufficient in substance” and had set the expository presentation, pre-trial conference and presentation of evidence on Sept. 7, 2018.
If completed, the plant will be among the biggest power generator in Mindanao, which has an installed capacity of 2,730.1 MW, of which 2,378.8 MW are considered dependable. The southern island’s biggest power facility at present is the Agus hydroelectric plants, which has seven units, the biggest of which generates 255 MW.