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Trade gap widens as exports decline for fifth straight month

Exports declined for the fifth straight month in May while imports grew by double-digits, reported the Philippine Statistics Authority Tuesday morning.
Exports declined by 3.8% to $5.76 billion in May, better than the 4.9% contraction seen in April, but worse than the 2.4% recorded in May 2017.
The latest merchandise export figure brought full-year receipts to $26.91 billion, down 5% from $28.33 billion in the same five months last year.
The country’s balance of trade in goods expanded to a $3.7 billion deficit in May from $2.51 billion in a year ago as imports grew by double-digits. The country’s import bill increased 11.4% to $9.46 billion during the month, slower than the 23.1% seen in April and 20.2% in May 2017.
Year to date, merchandise import grew by 10.9% to $42.68 billion.
The United States is the Philippines’ top export market in May with a 14.6% market share at $840.15 million followed by Hong Kong’s 13.8% ($796.47 million) and China’s 13.2% ($761.4 million) market shares.
Meanwhile, China was the country’s top source of imports with a 20.3% in May ($1.92 billion) followed by South Korea’s 10.3% ($978.61 million) and Japan’s 9.5% ($901.27 million) market shares. — Lourdes O. Pilar

Gov’t plans P1-trillion 2019 borrowing

By Elijah Joseph C. Tubayan
Reporter
THE GOVERNMENT plans to borrow up to P1.189 trillion in 2019 to help finance its spending plan, 33.85% more than the P888.23 billion initially programmed for this year, National Treasurer Rosalia V. De Leon told reporters in a mobile phone message on Monday.
Of next year’s total, P891.7 billion will be sourced locally and P297.2 billion from external creditors. The Development Budget Coordination Committee in its July 2 meeting finalized a 65-35 borrowing ratio in favor of domestic sources for 2018, and a 75-25 ratio for 2019 to 2022.
“For next year… it all depends on how the market external and domestic (conditions) play out,” Ms. De Leon said.
“If we can be able to tap more going into next year then we can go into that 75-25. Otherwise, we’ll have to see if there will also be good opportunities for doing more external financing — new external meaning to say not just our commercial borrowings, but even the ODA (official development assistance), we can increase our program loans.”
Ms. De Leon said the government could still revise its borrowing program “depending on market conditions.”
Traders interviewed on Monday said that the government faces stiffer borrowing costs here and abroad, with the Bangko Sentral ng Pilipinas (BSP) itself raising policy interest rates by a cumulative 50 basis points in its May and June policy reviews after keeping them steady for nearly four years.
And with inflation expected to peak this quarter further past an official 2-4% full-year target — June saw a fresh five-year-high 5.2% overall price surge that spurred the year-to-date pace to 4.3% — some analysts expect a third rate hike at the Aug. 9 meeting of the BSP’s Monetary Board.
AT A DISADVANTAGE
“They’ll (government) have to give in to higher rates because inflation is going up. But we don’t know yet if the latest (inflation) figure is the peak considering rate hikes by BSP will be felt next year. So we don’t know if the (interest) rates will go up,” one trader said in a telephone interview on Monday.
“They (BSP) might hike this coming August because of the pressures on the local currency market.”
Another trader said that the government will be at a disadvantage now that it is forced to accept more bids with higher yields sought.
“[In t]he past auctions they kept on rejecting; so they’re quite behind on their requirements. Actually we’re expecting another rate hike as we need to catch up with the real rates. So we’re expecting the hike this August,” she said in a separate phone interview.
“The high side in the Treasury bills results is already higher by a quarter basis points,” the trader noted.
“Definitely they have to really increase the rates as much as they want to deny it that inflation is supposedly transitory, but the data shows otherwise. So they would really be forced to accept the bonds at a higher cost.”
MORE FROM OFFSHORE MARKETS
Ms. De Leon said that the government has also been considering the euro bond market, apart from the planned yen-denominated “samurai” bond sale by early fourth quarter and will proceed with the planned dollar-denominated global bonds.
“We are also looking at the euro market, pero kasi by that time — August of 2019 — baka mag-taper na rin si (European Central Bank President Mario) Draghi. So we’ll also have to see about the euro market,” the National Treasurer said.
Also planned some time in the future is another sale of renminbi-denominated “panda” bonds and a maiden offer of Islamic sukuk bonds.
“We will start siguro the process for the ‘panda’ (bonds) because it will take some time. We might be again tapping the ‘panda’ (market) but we have to go all over again for the same process,” Ms. De Leon said.
“We are also looking at the sukuk, there would still some regulatory challenges there.”
Ms. De Leon earlier said that there is about $2 billion borrowing space for offshore bond offers left for this year.
The government plans to spend more than P8 trillion on infrastructure up to 2022, when President Rodrigo R. Duterte ends his six-year term, in a bid to fuel economic growth to 7-8% annually up to that year.

Ownership caps intact in some sectors

THE proposed new constitution will keep restrictions on foreign ownership of companies, land and public utilities, but ease limits in media and advertising, according to a draft of the charter released on Monday.
The draft constitution also removes a single-term limit for the country’s chief executive, but President Rodrigo R. Duterte said on Friday he would not seek a second term under a new charter.
A 22-member panel that is reviewing the 1987 constitution submitted its draft to Mr. Duterte on Monday. Congress will begin debating the proposed constitution this month, aiming to put it to the public in a referendum next year.
According to the draft seen by Reuters, there is no change to the 40% cap on foreign ownership of corporations, public utilities and land. It does allow 30% foreign ownership of media and advertising businesses.
Investors have been frustrated at being shut out of some sectors in a market of more than 100 million Filipinos, either squeezed by local monopolies or regulations that limit foreign investments.
Presidential Spokesperson Herminio Harry L. Roque said the draft charter was a significant step in the move to a federal system of government that aimed to boost the economy and grant provinces more autonomy.
“We’re hoping that Congress will give it much weight,” Mr. Roque told reporters.
Under the proposed charter, all elected officials, including the president and vice-president, will serve a four-year term with possible reelection for a second term. The president and vice-president are currently elected for six years and barred from running for a second term.
Mr. Duterte and Vice-President Maria Leonor “Leni” G. Robredo will keep their position in the transition period until elections are called under the new constitution in May 2022.
Shifting to a federal system has been Mr. Duterte’s priority since coming to office two years ago, saying he will step down immediately and urge new elections under the new constitution. — Reuters

ANZ sees marginal export recovery in May, not enough to bridge trade gap

OUTBOUND SALES of Philippine goods likely recovered in May but were not enough to stop the trade gap from growing further, analysts at ANZ Research said.
In its weekly report, the global bank said merchandise exports may have grown by 0.4% in May.
The Philippine Statistics Authority is scheduled to report official trade data today.
“Export growth could have turned marginally positive in May after falling for four straight months in April. Imports on the other hand are expected to have been solid, driven by higher oil prices and the government’s infrastructure programme that is boosting capital goods imports,” ANZ said.
ANZ sees imports surging by 13.9% in May from a year ago.
Factory output is also seen upbeat, with the Nikkei Purchasing Managers’ Index separately showing continued expansion fueled by stronger domestic demand, which the bank said would offset the impact of “tepid” global demand.
“As a result, the trade deficit is expected to have increased to $3.7 billion in May from $3.6 billion in April,” ANZ added.
Merchandise exports fell by 8.46% annually to $5.115 billion in April, compared to the year-ago 22.2% increase, resulting in a 6.2% year-to-date drop to $20.955 billion in value of such shipments. That, in turn, pulled the four-month trade balance to a $12.2-billion deficit, 59.3% bigger than the $7.656-billion gap posted during the comparable year-ago period.
The government expects a wider trade gap this year as it sees imports growing by a tenth to outpace a nine percent expansion in outbound shipments of goods, according to latest projections of the Development Budget Coordination Committee.
In its third-quarter economic report, ANZ also noted that the external trade gap will likely widen further, further pressuring the current account deficit to grow and, ultimately, the peso to weaken more.
“With growth expected to remain high at 6.8% in 2018, macro imbalances are likely to intensify in the Philippines,” ANZ said.
“The current account will likely draw some support from steady remittances inflows and receipts from business outsourcing and tourism sectors. However, this is unlikely to offset the deterioration in the trade deficit.”
The BSP foresees the current account — which measures fund flows in goods and services trading — to balloon to a $3.1-billion deficit this 2018 from last year’s $2.518-billion gap. The current account settled at $208-million deficit in the first quarter, smaller than the $860-million gap in 2017’s same three months.
Economists have blamed the persistent current account deficit for the peso’s prolonged weakness at around P53 per dollar currently.
The central bank has said a “modest” deficit is typical for a rapidly growing economy, with increased imports of capital equipment projected to support economic growth. — Melissa Luz T. Lopez

World Bank CEO adds to voices of worry over global debt pileup

SINGAPORE — Global debt is becoming a bigger worry as the global policy tightening cycle takes hold, a top boss at the World Bank warned Monday.
“After a decade of low interest rates, the corporate and public debt in many places has ballooned to a staggering $164 trillion,” Kristalina Georgieva, chief executive officer (CEO) of the World Bank, said in an interview in Singapore on Monday with Bloomberg Television’s David Ingles and Haidi Lun.
“With interest rates going up, that attention on debt sustainability has to be stronger.”
Central banks across the world are under pressure to follow a Federal Reserve that’s raising interest rates faster than initially anticipated, putting particular stress on emerging markets and developing economies.
The need for structural policy changes, including responses to waves of anti-globalization, remains great as policy makers in most economies haven’t taken sufficient action during the extended period of low borrowing costs, Ms. Georgieva said.
“We don’t see many countries taking advantage of this period of strong economic growth to carry forward structural reforms,” she said.
“And our advice to countries is, do not wait. Good times may not last — they usually do not last forever.”
World debt, including household debt, ballooned to $237 trillion in the fourth quarter of 2017, according to calculations by the Washington-based Institute for International Finance.
That’s more than $70 trillion higher than a decade ago.
Ms. Georgieva said countries must take a hard look at the affordability of projects that they’re undertaking, including in infrastructure, amid still fairly low interest rates.
She warned of the “white elephant” problem and said the World Bank is working harder to attract private-sector investors for “blended finance” projects.
The World Bank CEO also said in the interview that “[s]o far, what we see is that the impact of this worry about protectionism on the world economy is relatively modest” even though the global lender is concerned about impact on investor confidence.
“Our recommendation is focus on where anxiety comes from and solve the problems that are causing this anxiety to turn into a political momentum against trade.”
US-China trade conflict is “something that has created some uncertainty” but “so far with a strong world economy, it is early to predict where this will take us.”
With 55% of the world’s population living in cities, more attention must be paid to jobs and social protection for the urban poor; population is rising faster than “the ability of cities to absorb these people” in terms of infrastructure and employment.
China’s progress on domestic investment has been encouraging, and “great care” must be undertaken to ensure that investment abroad doesn’t aggravate debt. — Bloomberg

Post-apocalypse now: The end of the world at the movies


LOS ANGELES — From the Bible to Nostradamus, the Mayan calendar and the Millennium Bug, fatalists, fantasists and the fervently religious have long been fascinated by the end of the world.
Movie directors love nothing more than feeding our deepest fears concerning overpopulation, pestilence and nuclear armageddon — and the cinema-going public laps it up.
The glut of dystopian fiction coming to theaters and video-on-demand over the coming months includes Peter Jackson’s Mortal Engines, Kim Jee-woon’s Inrang, and Myroslav Slaboshpytskyi’s Luxembourg.
Shawn Robbins, the chief analyst at Boxoffice.com, sees the genre as the “definition of escapism,” an art form that assuages the primal desire to get back to basics.
“These types of films are often viewed as pessimistic glimpses into the future, which is certainly one valid interpretation, but they can also be self-reflective in a positive way,” he told AFP.
“It’s easy to see post-apocalyptic and dystopian film settings as part of our inevitable doom, but we can also take them as lessons and parables because, at the heart of any good story, the human condition is explored and challenged.”
‘RAT RACE’
Zombies, big rocks from outer space, and our own weapons of mass destruction are often the cause of the fictional apocalypse, but not always.
This year’s breakout hit A Quiet Place unleashed carnivorous aliens, while in I am Legend, The Andromeda Strain, 12 Monkeys and the Planet of the Apes movies, the bad guy was a virus.
Geophysical disasters do for the human race in Soylent Green, Waterworld, and Wall-E, while technology is the enemy in Logan’s Run and the various Terminator and Matrix movies.
George Miller’s 1979-2015 Mad Max films have inspired an army of so-called “cosplayers” who meet up at festivals to live out their fantasies as road warriors seeing in the collapse of civilization.
Every summer, more than 2,000 desk jockeys leave their day jobs across America to decamp to the Wasteland Weekend festival in the heat of the southern Californian desert.
“It’s a chance to get away from the regular rat race life and have fun,” Joseph Hileman, 52, a security supervisor from Concord, near San Francisco, told AFP on his seventh visit in 2016.
Filmmaker Mike P. Nelson’s own pulpy take on the apocalypse, a slick but bloody 95-minute shocker called The Domestics, came out in select US theaters and on video-on-demand over the weekend.
‘MACABRE FASCINATION’
“There’s a slight bit of macabre fascination with the idea that we could all be done for at any time, whether people want to admit it or not,” he said in an interview.
“There’s a strange almost-fantasy in most people’s minds that this is something that could happen. And I think some of these movies give us that glimpse and allow us to be fearful for a moment but safe.”
Starring Kate Bosworth (Blue Crush), and Tyler Hoechlin (Fifty Shades Freed), The Domestics is set in America’s Midwest, transformed into a lawless wasteland after a government-induced chemical atrocity.
Bosworth and Tyler — an estranged couple who were preparing for their divorce before the world went dark — must learn to survive in a harrowing, gang-ravaged landscape.
Nelson said he was going for the near-future, down-to-earth look of the original Mad Max rather than the more stylized landscapes of recent dystopian sci-fi.
“It created this world that wasn’t too far gone and people still drove on the right side of the road, ate at restaurants. There was still kind of a police force,” he said.
“But it was the people that had turned bad. That was what fascinated me, and I was like, ‘I want to do something that’s similar to that.’ I wanted to tell a story about how the people of this world go sour after something terrible happens.” — AFP

After 2 surgeries in 2 months, Gary V is raring to go

SINGER Edgardo Jose “Gary” Valenciano — often referred to as “Mr. Pure Energy” because of his high energy performances — announced that he has been cleared of kidney cancer, a diagnosis which was made shortly after he underwent successful emergency open heart surgery in May.
“I had a muscle strain on my underneath my [left] lung and I couldn’t breathe properly…,” the singer told Korina Maria Sanchez-Roxas in an interview in the vernacular. “[After the tests], the doctor told me that they saw something in my right kidney and, based on the results, it seems like I had a cancer of the kidney,” Mr. Valenciano on Sanchez-Roxas’s Rated K TV show, which aired on July 8 on ABS-CBN.
He added that after undergoing a Positron Emission Tomography (PET) scan, his urologist saw the cancer hasn’t spread beyond his kidneys but said the malignant tumor was “pretty big.”
“I didn’t have symptoms so the doctors said the cancer must have been in its early stages,” Mr. Valenciano said.
He underwent surgery again on June 13, where 30% of the affected kidney was removed.
“I then received a message from my doctor that I was cancer-free and I didn’t need to undergo chemotherapy or radiotherapy.
“It’s really, really good news,” he said.
In May, Mr. Valenciano had a coronary artery bypass after feeling chest pains following a performance with his son, Gabriel Valenciano, during a show in celebration of his 35th year in showbiz.
Mr. Valenciano explained in a post on his agency’s Facebook page in May that while he has a good strong heart, the main valve of his left anterior descending artery was 95% blocked and had very thin walls because of his chronic diabetes. This prompted his doctors to recommend emergency bypass surgery which was successful.
Mr. Valenciano is known for his high-energy performances despite living with Type 1 Diabetes for 39 years.
After undergoing the two surgeries, he hasn’t performed in about two months but said during the Rated K interview that he is excited to return to the stage.
“Every day, I feel a growing excitement at the thought of coming back to ASAP, Your Face Sounds Familiar, and recently I got offered another opportunity to serve as judge in another show. I’m really excited to come back,” he said, referring to his regular TV shows. — ZBC

Tencent’s US music IPO reflects more upbeat recording industry

TENCENT HOLDINGS Ltd.’s plan to spin-off its online-music business and list shares in the US is the latest sign that the long-beleaguered recording industry is staging a comeback.
The move will let American investors bet on the Chinese market for music-streaming services, which have brought new life to a business that’s been plagued by piracy. Tencent’s growth in China also mirrors inroads by partner Spotify Technology SA in the US, where streaming has helped music sales grow at their fastest rate since the 1990s.
For record labels, the resurgence has helped them rebuild after years of decline. The demise of physical media and free-downloading sites ravaged the industry. And the arrival of iTunes and legal downloading options in the early 2000s did little to stem the slide. But now streaming appears to have given music sellers a formula they can live with.
Tencent, China’s largest social media and gaming company, is still working on terms of its spin-off proposal, which it announced in a filing to the Hong Kong stock exchange Sunday.
The announcement follows a similar move by Tencent last year in Hong Kong with its online reading business, China Literature Ltd. Its music platforms — QQ Music, KuGou and Kuwo — are becoming important vehicles for pop stars such as Katy Perry and Rihanna to reach a Chinese audience, alongside homegrown artists like Jason Zhang and Joker Xue.
“The payment ratio will increase for digital music consumption in China in the long run,” He Saiyi, an analyst with Huatai Securities, wrote in a research report Monday. “Tencent Music dominates the China market: it owns the most digital music copyrights in China and, in our view, has the most vibrant online music communities.”
CONTENT EMPIRE
Tencent Music Entertainment Group had picked banks to advise on a planned initial public offering (IPO) in the US that could raise at least $1 billion, people with knowledge of the matter told Bloomberg in May.
Tencent has the advantage of a fully developed entertainment and content empire that encompasses the ubiquitous WeChat messaging app, games, video-streaming, a karaoke app, and content-licensing deals with more than 200 international and domestic record companies. But like perennial rivals Alibaba Group Holding Ltd., Baidu Inc. and Netease Inc., Tencent has to contend with the rampant piracy that’s eroding the industry’s profits.
It also counts Stockholm-based Spotify as an investor, but the two companies may increasingly become rivals. While they don’t compete directly in China, Spotify challenges Tencent in regions such as Southeast Asia.
Spotify went public earlier this year and currently has a market value of $31 billion. In May, the Financial Times said Tencent Music Entertainment’s listing could value the company in excess of $30 billion. Valuation could partly depend on where Spotify was trading at the time, the paper said.
In the US, recorded music sales rose 17% to $8.5 billion last year, with streaming accounting for almost two-thirds of the total, according to the Recording Industry Association of America. It put the industry on its fastest pace since 23 years ago, when acts like Hootie & the Blowfish dominated the airwaves. — Bloomberg

Take 3 in the Philippines for singer Charlie Puth

AMERICAN singer/songwriter, Charlie Puth, is coming back for a third time in the Philippines on Nov. 6 in the Mall of Asia (MOA) Arena in Pasay City as part of his ongoing North America and Asia tour promoting his newest album, Voicenotes.
Mr. Puth previously performed in the Philippines in 2015 and 2016.
Mr. Puth’s career started after he created a YouTube channel where he posted comedy videos and acoustic music covers in 2009. Two years later, he signed with Ellen DeGeneres’ eleveneleven label after he sang his version of UK singer Adele’s “Someone Like You.”
After leaving eleveneleven in 2012, Mr. Puth signed with Atlantic Records in 2015 and released his debut single, “Marvin Gaye,” which features guest vocals from American singer Meghan Trainor that same year. The song, a homage to Motown singer Marvin Gaye, went on to be certified double Platinum in Australia and topped the charts in New Zealand, Ireland, and the UK. It reached No. 21 at Billboard Hot 100 chart.
He then wrote, co-produced, and sang on “See You Again,” a song by American rapper Wiz Khalifa. The song was a tribute to actor Paul Walker who died in a car crash in 2013. The song was included in the Furious 7 (2015) movie soundtrack — Mr. Walker was filming Furious 7 when he died.
The song peaked at No. 1 on the Hot 100 chart for 12 non-consecutive weeks and was nominated for three Grammy Awards including Song of the year. It was also nominated for Best Original Song at the 73rd Golden Globe Awards but ultimately lost to Sam Smith and Jimmy Napes’ “Writing’s on the Wall” which was created for the 2015 spy film Spectre.
Puth’s debut album, Nine Track Mind, was released in 2016 and headlined by the single “One Call Away.” It debuted at No. 3 in the UK and peaked at No. 6 on the Billboard 200.
Two years later, he released his second studio album, Voicenotes, lead by the single, “Attention.” He produced the entire album himself, and he likened the album’s sound to the “late 1980s R&B” of Babyface, Jimmy Jam, Terry Lewis, and Teddy Riley, according to a Billboard interview with Rebecca Milzoff in February.
He further described the album “like walking down a dirt road and listening to New Edition in 1989 — and being heartbroken, of course,” in the same interview, before adding that he made the conscious decision to move away from love ballads and that he wished to distance himself from the sound of his first album, which was “people nudging [me] in a direction that I didn’t want to go in.”
Mr. Puth’s Voicenotes Manila concert will be on Nov. 6 at the SM MOA Arena in Pasay City. Tickets go on sale on July 17, 10 a.m., via SM Tickets (www.smtickets.com). Ticket prices range from P2,000 (for general admission) to P15,100 (for a soundcheck package with 1 VIP ticket). — Zsarlene B. Chua

LBC sets aggressive goal of 100 new stores a year until 2020

LBC EXPRESS Holdings, Inc. is ramping up its store expansion in the next three years. — BW FILE PHOTO

By Arra B. Francia, Reporter
LBC Express Holdings, Inc. plans to open 100 stores per year until 2020, while embarking on a three-year program that will digitize its core logistics businesses.
“With the network expansion, we’re tasked to open around 100 stores every year,” LBC Express President and Chief Operating Officer Miguel Angel A. Camahort told reporters after the company’s annual shareholders’ meeting in Pasay City on Monday.
The planned store openings will bring the LBC Express network to around 1,400 this year. The company has already opened around 45 to 46 stores during the first half of 2018.
LBC Express Chief Finance Officer Enrique V. Rey said each store costs about P700,000 to P1 million each to put up.
LBC Express will also be consolidating its international affiliates, particularly those in United Kingdom, Italy, Spain, Germany, and Hong Kong, under the company.
It is the process of acquiring its overseas units to prop up its global revenue streams.
Mr. Rey said they want the affiliates to be “healthier” before being folded into LBC Express, saying that the Europe business has been “challenged.”
LBC Express’ international units currently account for less than 5% of the total business.
The store network expansion forms part of LBC Express’ digital transformation until 2020. Mr. Camahort said the company will be digitizing its operations in response to the role of technology in transforming its business processes.
“With digitization set to revolutionize the entire industry, we see another opportunity for LBC to define itself across all its business segments. Technology has literally changed every aspect of the way businesses operate, and LBC is on the move to make sure they lead the pack,” Mr. Camahort said in a speech during the annual shareholders’ meeting.
This three-year digital transformation includes three aspects, such as investments in technology, training for people to cope with the new technology, and the expansion of its store network.
“We partnered with Ramco, a huge system integrator provider for the single platform for the system requirement. We’re also invested now in handheld units for all our couriers to bring with them handheld units for ease of transaction,” Mr. Camahort said.
The Araneta-led firm has also introduced new services that facilitate transactions for online and e-commerce businesses, namely cash on pickup (COP) and cash on delivery (COD). These target small online sellers and starting entrepreneurs.
“Social sellers have been a major driver for our retail component and we feel that this will continue…we feel strategically we have to position ourselves to support these social sellers,” Mr. Camahort said.
FOLLOW-ON OFFERING
Meanwhile, LBC Express said it will resubmit with the Securities and Exchange Commission its registration statement for a follow-on offering (FOO) to reflect the financial results for the first quarter of 2018.
LBC Express encountered delays in preparing its registration statement for the FOO since its previous underwriter was forced to close shop last year.
Details of the share sale, however, remain the same, with 69 million shares priced from P13 to P22 each to be sold. Abacus Capital and Investment Corp. has been tapped as the new underwriter of the offering.
LBC Express’ net income attributable to the parent jumped 143% to P559.8 million in the first three months of 2018, as revenues picked up 12% to P2.75 billion for the period. The company expects its second quarter earnings to be “better than the first quarter.”

Preliminary work on NLEx-SLEx connector road to start by Q4

PRELIMINARY construction work for the connector road that will link the Metro Pacific group’s North Luzon Expressway (NLEx) and San Miguel Corp.’s South Luzon Expressway (SLEx) is expected to start by the fourth quarter of this year, Metro Pacific Tollways Corp. (MPTC) said.
MPTC President and Chief Executive Officer Rodrigo E. Franco told reporters last week that work on the NLEx-SLEx connector road is expected to commence within the fourth quarter, and to go full blast by the first quarter of 2019.
“We’re working within the timetable, and we would want to be able to mobilize construction towards the fourth quarter,” he said on the sidelines of the Cebu-Cordova Link Expressway (CCLEx) piling ceremony in Cebu on Thursday.
Mr. Franco also said acquisition of the right of way for the first section of the alignment is moving, but the deadline for the Department of Public Works and Highways (DPWH) is still second quarter next year.
The NLEx-SLEx connector road is an eight-kilometer road to be built above the tracks of the Philippine National Railways (PNR) from C3 Road in Caloocan City to Polytechnic University of the Philippines in Sta. Mesa, Manila.
The elevated road is set to be completed by 2021, by then it is expected to cut travel time from NLEx to SLEx from two hours to 20 minutes, and from Clark, Pampanga to Calamba, Laguna from three hours to one hour and 40 minutes.
NLEX Corp. is expecting a traffic of at least 35,000 vehicles every day when operations of the connector road begin.
Last week, NLEX Corp. announced it will tap the bond market by the fourth quarter to secure funds for the connector road.
Mr. Franco said its construction would cost them P16 billion, and P22 billion including the right of way.
He also said 70% of the costs, or around P11 billion to P12 billion, will be collected from banks or bonds. The rest would be coming from equity.
MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Mactan-Cebu’s new Terminal 2 elevates PHL airport standards


LAPU-LAPU CITY, MACTAN — Up until 2017, the Philippines’ main gateway, the Ninoy Aquino International Airport in Metro Manila, has consistently been in the list of the world’s worst airports.
Other airports around the country, more than 80 of them including in 15 major cities, have neither been exactly sources of pride.
The opening of the Mactan-Cebu International Airport Terminal 2 (MCIA-T2) on July 1 is changing that, lifting Philippine airport standards in terms of both look and convenience.
The MCIA-T2 — designed by Hong Kong-based architectural firm Integrated Design Associates Ltd. (IDA) in partnership with local architects and designers Budji Layug, Royal Pineda, and Kenneth Cobunpue — is intended to make those passing through feel like they are making a beach resort stop, where they can relax, wine and dine, and shop.
For departing passengers, the airport-resort experience starts with a passage through the 19-meter link bridge with its striking terrazzo flooring with mother of pearl shards that glisten when struck by sunlight.
The locally sourced pearl inlay evokes an image of Cebu’s beaches, consistent with the overall T2 design inspired by the Philippine landscape.
One noticeable thing, though, at the departure level is the absence of plants — a trade-off for the extensive use of wood in the building.
“This is the first (airport) structure that used so much wood. No airport anywhere in the world has used these kinds of material. The glulam (glued-laminated timber wood from Austria) is much stronger and I think 20% to 30% more expensive than the usual steel and has a life of 200 years. But every 50 years, it has to be polished with a certain special liquid to cure the wood,” Aines Librodo, head of Airline Marketing and Tourism Development of GMR-Megawide Cebu Airport Corp. (GMCAC), said during a media walkthrough of the terminal hosted by airline Cebu Pacific.
Ms. Librodo said the airport management does not want to risk the possibility of that termites from live plants could damage the wood. MCIA-T2 is a project of GMCAC, a consortium of Megawide Construction Corp. and Bangalore-based GMR Infrastructure Ltd.
The timber arches, meanwhile, are inspired by the waves of the seas around Mactan Island.
For convenience, MCIA-T2 has done away with luggage x-rays at the entrance as practiced in most international airports around the world.
“In all of the airports in the Philippines, upon entry, you always have to lift your luggage and put it in the x-ray and then you go and lift your luggage again to bring them at the check-in counters. Here we don’t have that because we want convenience to all passengers. Statistics say that very few of the passengers have irregular stuff normally prohibited for check-in. So why do we penalize 95% of the passengers when only a few have these irregular stuff?” Ms. Librodo said.
Check-in luggages go through a high-speed baggage handling system equipped with a four-level inline screening technology to ensure that these do not contain restricted items.
The terminal’s washrooms, usually the ultimate turn-off point in local airports, have lush moss walls sourced from Italy. The moss wall creates an indoor garden effect and is also functional as it helps stabilize humidity and improve air quality.
The 65,500-square meter (sq.m) T2, dedicated to international flights, has a duty-free shopping area of about 895 sq.m with a wide range of retailers.
For dining, T2’s food and beverage hub is operated by British firm SSP Group plc, which is present in more than a 100 airports globally.
The F&B selections in Cebu include Camden, Ritazza To Go, Burger King, Coffee Bean and Tea Leaf, Cabin Bar, Nippon Ramen, Bonchon, and Asian Kitchen.
Other terminal features are The Spa at Cebu and the Plaza Premium waiting lounge.
Getting to and from the MCIA-T2, with Metro Cebu’s worsening road congestion, could still prove to be a frustrating segment of one’s travel. But it certainly is a comfort and uplifting to have a stop at a high-standard airport. — Maya M. Padillo