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Finest cut for the rough

Text and photos by Kap Maceda Aguila

YOKOHAMA, JAPAN — The uber-wealthy now have another reason to be uber-happy. With the release of the Cullinan, Rolls-Royce has formally, decisively, and dramatically entered the sport-utility vehicle market.
British Issue
“Together with the Dawn and Wraith, the Cullinan provides a third emotional component to our lineup,” said Paul Harris, Rolls-Royce Motor Cars regional director for Asia Pacific, at a press preview of the SUV here.
The UK car maker makes no bones about the significance of its first sport-ute in its more than a century of making the most luxurious of cars. Named after the world’s largest gem-quality rough diamond ever found, the Cullinan was systematically and deliberately developed over some of the harshest of environments, such as the Scottish highlands, ice-blanketed passes of the Austrian Alps, and sand dunes of the Arabian peninsula.
All-wheel drive and all-wheel steering lend further confidence and credence to an already compelling, 6.75-liter, 48-valve, twin-turbo V12 engine generating a stout 563 hp and 850 Nm. Designers and engineers made sure the Cullinan looks every inch a Rolls-Royce — with the signature long hood and an execution of the familiar Parthenon grille.
In exclusive interview, Mr. Harris admitted to BusinessWorld; “We had to make sure that [getting in the segment] was right for us, and we wanted to do it in the right way.” He continued that the Cullinan had “bookends” of the SUV market — the “ultimate luxury” of the vaunted “magic carpet” ride, and an incredible capability and competency off road. The executive quipped; “This product is a complete and perfect blend of these two qualities. That was our remit to our engineers.”
The Cullinan suspension systems adapts through “millions of calculations every second as it continuously varies the electronically controlled shock absorber adjustment system — reacting to body and wheel acceleration, steering inputs and camera information.” Meanwhile, a double-wishbone front axle and five-link rear axle control lateral roll and shear forces to deliver “incredible” agility and stability, as does the addition of four-wheel steering, which makes the SUV nimble.
An electronically controlled shock absorber adjustment system uses an air compression system “to actively push down any wheel it detects losing traction to ensure every wheel is constantly in contact with the ground and maximum torque is being provided to all wheels.”
Again, it is about Rolls-Royce “wholeheartedly committing to [the project], and in the right way,” Mr. Harris underscored.
In a presentation, Rolls-Royce Motor Cars product manager for the Cullinan, Jonathan Shears, pointed out that the vehicle’s “rear seats sit higher than those in the front passenger, [boasting] a pavilion view through the side windows, and a clear view over the front seats and through the front screen through the adventure ahead.” As with its siblings, pampering comes standard in the Cullinan, such as massaging seats, a glassware holder, and a champagne bottle cooler.
The car maker said the Cullinan is the first “three-box” car in SUVs. A partition wall gives a distinct “environment for passengers,” one that is acoustically insulated from even the cargo hold. “It’s an off-road vehicle that offers more than those currently available in the market,” Mr. Shears declared.
A five-seat Cullinan is also available for those who want more space and flexibility.
As for its target demographic, Mr. Harris described the Cullinan client as, “style-conscious, definitely… someone who likes to stand out from the crowd. They are young, active, social individuals with a love of the outdoors and adventure. They are very family-focused, living mobile and often sporting lifestyles.”
Sales prospects appear to be bullish for the brand across the Asia-Pacific region, continued the official.
Mr. Harris reported that the “ultra-high net worth market is growing by 8-9%, irrespective of economic changes… the market opportunity is there.”
But territories where duty rates continually change can prove to be troublesome. “There I think sometimes we struggle to grow purely because the price points at which somebody can buy is so far out. If change is a regular occurrence it makes even the ultra wealthy wonder when is the time for them to buy. I think that is a bit of a challenge from a Rolls-Royce perspective,” he revealed. On the whole though, “Asia… has a big pool of ultra-high net worths. I still think it’s a significant growth engine for Rolls-Royce globally.”
The company doesn’t consider its first foray into the SUV market as facetious undertaking for a brand steeped in tradition. Rather, it is about living up to standards. “Ultimately, Rolls-Royce has always been a trendsetter over 100 years. If you look at the trends, the SUV segment is the one segment globally that continues to grow. I think it would have been difficult for Rolls-Royce not to enter that and sustain a relevant product lineup across all segments,” concluded Mr. Harris.

Bentley sets Pikes Peak SUV record

PIKES Peak. It’s the most famous venue for a hill climb race. Located in Colorado, it is marked by 156 corners and a finish line that sits more than a kilometer-and-a-half above sea level. Bentley’s new Bentayga — the brand’s first sport-ute model — on June 24 claimed the Pikes Peak International Hill Climb record for production SUVs.
British Issue
Two-time Pikes Peak champion Rhys Millen drove the Bentayga through the 19.98-kilometer course in 10 minutes and 49.9 seconds, indicating an average speed of 107 kph. The result bested by nearly two minutes the previous record set in 2013 by Paul Dallenbach aboard a Range Rover Sport.
In a statement, Bentley Motors noted the Bentayga used at Pikes Peak was a “near-production” car, with “only minimal changes” made to a standard model — as the event’s rules dictated. The car’s front seats were replaced with racing versions, the rear seats were removed, and a roll cage and a fire suppression system were installed. Tires fitted came from Pirelli’s DOT-marked range, and a production-spec Akrapovic sport exhaust replaced the stock unit. A special paint job adorned by all-black chrome and a carbon-fiber body kit from Bentley’s Black Specification range distinguished the Pikes Peak Bentayga.
The Bentayga is propelled by a W12 engine that outputs 600 hp and 900 Nm. The SUV is equipped with an adaptive air suspension, active electric anti-roll control and carbon ceramic brakes, among other high-performance items.
To celebrate the Pikes Peak record, Bentley Motors on June 25 announced a limited edition Bentayga, of which only 10 examples will be made. Created and handcrafted by Mulliner — Bentley’s in-house bespoke and coach-building division — the Pikes Peak Bentayga will come in either Beluga black or Radium green, two-tone 22-inch wheels, Black Specification carbon-fiber splitter, side skirts, diffuser and rear spoiler. A Pikes Peak motif will adorn the front fenders.
Inside the car, Mulliner Design pieces mix Key Lime accents with Beluga leather, and the seats and doors will get Alcantara inserts. The steering wheel and gear lever will also be trimmed in Alcantara, and the headlining in Eliade cloth. A Pikes Peak logo and numbered tread plate will complete the theme.
Bentley Motors said the limited edition Bentayga will be available to order starting in August for customers in the US and Europe. — BMA

Jaguar, Land Rover open first dealership with new PHL distributor


JAGUAR and Land Rover in November 2017 announced the appointment of Coventry Motors Corp. (CMC) as their new importer and distributor in the Philippines. On June 21 the first dealership in the country authorized by CMC to sell and service the British brands officially opened for business.
British Issue
Operated by All British Cars, the new Jaguar and Land Rover facilities on 1008 EDSA, Greenhills, San Juan City, was inaugurated by the brands’ Asia Pacific officers Alistair Scott and Andy Wust, British Ambassador to the Philippines Daniel Pruce, Mayor of San Juan City Guia G. Gomez, and key executives of CMC and All British Cars.
Mr. Scott called the dealership a “new chapter” in Jaguar’s and Land Rover’s “brand footprint in the Philippines,” noting that, like all of the their showrooms elsewhere in the world, it would also allow customers to “immerse themselves” in the companies’ products.
CMC said the All Britsh Cars showroom was built to comply with Jaguar’s and Land Rover’s retail design standard, in which all furniture and fixtures used are uniform around the world. The showroom measures a little over 3,000 square meters, allowing it to accommodate nine vehicles for display, shelves for merchandise and accessories, a vehicle handover area, and customer lounges kitted out with a self-serve bar and video screens, one of which shows live feeds from the service bays.
The service and after-sales facilities are housed in a separate 2,100-plus square-meter area. These have six workshop bays and, according to CMC, are equipped with all the latest tools, as well as the capacity to conduct durability, calibration, brake, power train, suspension and hot-weather testing.
“As the sole authorized service center for Jaguar and Land Rover vehicles, [All British Cars] customers are guaranteed of world-class service provided by experts who are trained on Jaguar and Land Rover technologies and methodologies,” said Joseph Anthony C. Ayllon, assistant vice-president for PR communications at CMC.
The official added All British Cars will accept for servicing Jaguar and Land Rover vehicles purchased from the previous importer and the gray market, as well as those that are already outside the coverage of a warranty. — Brian M. Afuang

Hyundai joins int’l motor sports meet

HYUNDAI Asia Resources, Inc. (HARI) announced it served as Official Vehicle Partner in the 2018 FIA Motorsports Conference held on June 3-7 in Manila. HARI, authorized distributor of Hyundai vehicles in the Philippines, provided Hyundai H350 and Starex vans for the event.
The conference was organized by the Federation Internationale de l’Automobile, which oversees virtually all disciplines of motor racing in the world, together with the Automobile Association of the Philippines.
The sixth edition of the FIA Motorsports Conference was the first held in Asia. It was attended by more than 200 delegates from 93 countries, who discussed racing safety and the future and growth of the sport in the face of fast-emerging modes of alternative transportation and entertainment.
HARI said Hyundai has long been a participant in international motor sports.
“Hyundai’s engagement with FIA puts a stamp on our never-ending work to make Hyundai innovation ever more accessible to the most diverse markets, and to unlock their potential to get more out of life,” said Ma. Fe Perez-Agudo, HARI president and CEO.

Dashboard (06/27/18)

Isuzu names top finishers of skills Olympics

REPRESENTATIVES from six of the 24 dealerships that participated in the 13th edition of the Isuzu Service Skills Olympics have dominated the competitions held on June 1-2 at Isuzu Philippines Corp.’s (IPC) manufacturing plant in Biñan, Laguna.
The winners in the Service Technician category were Jonathan Mediona and Arniel John Alom of Isuzu Davao (second runner-up); Crispin Maldonado and Jumar Verano of Isuzu Pasig (first runner-up); and Ahrjay Pulvera and Reynaldo Gepulle of Isuzu Alabang (champion).
The Service Advisor category was topped by Dyrenerose Benecio of Isuzu Pasig (second runner-up), Jorussel Reyes of Isuzu Cabanatuan (first runner-up) and Julius Caesar Opaco of Isuzu Mandaue (champion). The best in the Parts Analyst category were Christopher Garcia of Isuzu Cabanatuan (second runner-up), John Louie Carlos of Isuzu Pasig (first runner-up) and Joana Zorilla of Isuzu Pampanga (champion).
IPC said Mr. Maldonado, Mr. Reyes and Ms. Zorilla were also cited best in their respective categories in the written exam competition.
Isuzu Pasig emerged as champion in the skills Olympics.
IPC said two teams will represent the Philippines in the 2018 Isuzu World Technical Competition slated in Thailand on Sept. 12 (light commercial vehicle category) and in Japan on Dec. 6 (commercial vehicle category).

Subaru LevorgSubaru offers models for test-drives

THE domestic distributor of Subaru, Motor Image Pilipinas, Inc., announced its vehicles equipped with symmetrical all-wheel drive, boxer engine, Subaru Global Platform and EyeSight Driver Assist Technology can be driven by customers during a series of activities.
The first is set on June 29 to July 1 at Uptown Parade in Bonifacio Global City, which will be followed on July 20-22 at SM Lanang Premier in Davao City, and on Aug. 24-26 in Cebu (no venue has been announced yet).
Motor Image is now accepting confirmations of attendance at subaru.asia/ultimatetestdrive.

A good product line isn’t everything

When I was filing my motoring website’s monthly industry sales report last week, I couldn’t help but think that the automotive business is indeed a product-driven one. The brands that presently have the best vehicles tend to perform well sales-wise. But these best-sellers come and go. It’s a cycle.
There was a time Hyundai models sold like hotcakes. The automaker at one point had the most compelling offering in practically every segment of the market — from mini hatchback to midsize SUV. Before the Korean manufacturer’s emergence, Honda had been the flavor of the moment — the CR-V, the Civic, the City and the Jazz all took turns being the Filipino’s dream car.
This more recently also happened to Subaru and Mazda, when virtually all of their cars were the best in their class in terms of styling and engine technology. And who can forget Ford? The American brand reached third place overall behind only Toyota and Mitsubishi in 2015, reflecting its strong vehicle lineup at the time.
Right now, it’s Nissan’s turn. Benefiting from attractive and competitively priced cars like the X-Trail, the Navara and the Urvan, the brand leapfrogged both Ford and Honda last month to seize fourth place in the local industry’s year-to-date sales rankings. And it’s gaining such momentum that it isn’t hard to imagine the Japanese firm catching and overtaking Hyundai for third place, especially with a popular new midsize SUV in the Terra. But for how long can Nissan sustain this?
In the years I’ve been filing these sales reports, there’s an unmistakable truth I’ve noticed: Excellent product lines propel brands to the top of sales charts, but they come in waves. It’s nearly impossible to have a great car stable all the time. It’s easy to always have at least one outstanding car. But to have four to five irresistible offerings that trump the competition at the same time? That’s almost a stroke of luck that is often beyond the control of the local distributors.
Let me use poker as an analogy. Getting one great car is like getting a king or an ace. Getting four more fantastic vehicles would be the equivalent of getting dealt a flush or a full house, depending on their appeal.
Now, if you play poker, you know you will never get a straight or a flush or a full house every single time. They come at intervals. Sometimes they never come at all. You might get lucky in two or three consecutive deals, but trust me, you will always get a hand that is so bad you’ll forget how to spell “bluff.”
And so, over a five-hour session, it’s not the player who occasionally gets a straight flush that goes home with the chips. A sporadic winning hand will not guarantee anyone the victory. You know who always wins in the end? It’s the cunning, patient individual who plays the long game — the one who doesn’t bet recklessly in spurts but strategizes to consistently position himself for a most ideal strike.
What am I saying here?
Having a good product line is awesome. It will always result in eye-popping sales numbers. The pitfall I believe many distributors fall into is the tendency to rely entirely on products, completely forgetting the other aspects of their business — chief of which is after-sales service. They fail to understand that there are other factors that contribute to the strength of their brand, perhaps even more so than a handful of nice-looking cars ever will. Customer service, parts availability, quality of technical work, showroom appearance — these are the things that truly matter in the car business. These are the elements that are within the player’s control. You don’t need a full house of a product line to deliver them. You don’t have to wait to be dealt a superb stable of cars to provide them to your customers.
I think that’s where Toyota pummels everyone else. Its cars are generally vanilla. Save for the 86 and the FJ Cruiser, I don’t remember swooning over a Toyota model in the last five years. But they get everything else right. In the long run, that’s what counts in making customers return year after year after year. Owning 40% of the market is proof of this.
Superior cars come and go. Superior customer service doesn’t have to.

‘Third player’ criteria give equal weight to spending, coverage

THE government has released the draft terms of reference to guide the selection of the new entrant to the telecommunications industry, the so-called “third player,” in which a 40% weighting was assigned to the new company’s ability to serve a percentage of the population, with another 40% of the score to be given to the prospective third player’s capital expenditure and operating expense commitments.
The draft terms, which are subject to public consultation next week, also assign a 20% weighting to an applicant’s commitment to certain broadband speed levels, according to copy of the terms provided by the Department of Information and Communications Technology (DICT).
The terms as released split the difference between proposed selection criteria that favor spending commitments, which the Department of Finance had backed, and service commitments, which were viewed as critical for the third player’s ability to compete with the incumbents.
The draft terms also list the frequency “assignments” for the third player, around which the applicant must base its bid.
It also listed a range of “contingent” radio frequencies that may be assigned within a reasonable period, “In the event that there is a dissolution of the permanent injunction issued by the Court of Appeals in ‘Bayan Telecommunications, Inc. vs. National Telecommunications Commission in CA- G.R. SP No. 105373.” The terms also warned that the government makes no firm commitment to “assign” the contingent frequencies to the third player, which the document calls the “New Major Player” or NMP.
The terms do not address the issue of whether the third player will need to pay for the frequency assigned to it.
According to the document, the selection committee for the third player will be chaired by a representative from the National Telecommunications Commission (NTC) and up to four other members.
The NTC is tasked with creating a Technical Working Group (TWG) and a Selection Committee Secretariat to provide technical and legal, and administrative, support to the selection committee.
Applicants will receive a maximum score of 40% for their ability to reach a segment of the population over a five-year period, subject to a minimum of 30%. For every percentage point of population coverage achieved above the floor level, up to a maximum of 70% population coverage, the applicant will be awarded 1 point each year. The minimum expected population coverage by the end of the fifth year is 50%.
A maximum weight of 20% will be given for broadband speed, subject to a minimum of 5 Megabits per second (Mbps). For every 1 Mbps achieved over the minimum, the applicant will be awarded half a point each year.
Capital spending plans, including operational expenses, which carry a 40% weighting, are subject to a minimum of P40 billion. For every P2.25 billion over the minimum level, and up to a maximum of P130 billion, the applicant will be awarded 1 point per annum.
“A participant’s annual point score shall be multiplied by the corresponding weightages… reflecting the Government’s policy priority of encouraging rapid network roll-out and the difficulty of deploying the NMP’s networks and facilities in the shortest possible time,” according to the draft terms.
The maximum score for the first year is 100 points, with points earned in year one given a cumulative weighting of 1. The second year’s weighting is 1.4 of the first year. The third to fifth years are weighted 1.3, 0.7, and 0.6, respectively, reflecting a lower weighting for points accumulated later in the five-year period, which is known as the “commitment period.”
Bid documents will be sold for P1 million, with purchasers entitled to attend a pre-selection information session.
Participants are required to hold a Congressional telecommunications franchise that is not related to the franchises held by the two incumbents, PLDT, Inc. and Globe Telecom, Inc. and paid-in capital of P10 billion, among others.
The participant is required to submit a performance security to the NTC, submit a rollout plan within 90 days of selection, submit quarterly reports, and deposit to the Land Bank of the Philippines 20% of committed expenditure within 60 days at the start of each year.
Failure to meet the conditions can result in the forfeiture of the security, a possible quo warranto proceeding, and recall of awarded frequencies. — Patrizia Paola C. Marcelo

NEDA open to both Cebu BRT, rail line

THE National Economic and Development Authority (NEDA) on Monday said that the Cebu bus rapid transit (BRT) project needs to go ahead as planning for its implementation is in the advanced stages, but the government continues to be open to a railway project in the future.
“As a short-term solution I think (BRT) is the way to go, and later on simultaneously they can start the longer-term program,” Socioeconomic and Planning Secretary Ernesto M. Pernia told reporters late Monday when asked whether he wants to proceed with the Cebu BRT project.
The Department of Transportation (DoTr) plans to abandon the project in favor of an elevated light rail transit line, citing Cebu’s narrow roads that cannot accommodate dedicated lanes for buses.
Mr. Pernia gave the DoTr until June 30 to submit “robust evidence” to back the cancellation of the BRT.
“There’s no verdict yet, but we will have one very soon,” he said.
The $228.5 billion project was approved by the government in 2014.
The World Bank will fund $116 million of the total cost, and has so far disbursed some $12.27 million for the project’s implementation.
The bank has argued that the BRT is “technically viable,” because such systems have been in operation in cities with narrow roads, and that there are “technical solutions” to address the problem.
The Cebu BRT has the strong support of the city’s mayor, Tomas R. Osmeña, who also welcomes the proposed commuter rail line in Cebu for the future as long as the new bus system is implemented first.
The project is among the four planned BRT systems in the country to reduce congestion and lower carbon emissions.
The others include the Epifanio de los Santos Avenue (EDSA) BRT, expected to be operational in 2020, the España-Quezon Ave. BRT eyed for 2019, and the Bonifacio Global City-Ninoy Aquino International Airport route in 2019.
Mr. Tugade also opposes a BRT line for EDSA. — Elijah Joseph C. Tubayan

Rice import bids for 674,000 metric tons accepted under MAV

THE National Food Authority (NFA) accepted applications from prospective importers to bring in 674,000 metric tons (MT) of rice under the Minimum Access Volume (MAV) regime, with the auction oversubscribed at 1.82 million MT worth of bids received.
The auction was conducted late Monday at the Bureau of the Treasury in Manila.
The approved import amount leaves part of the MAV quota, which is 805,000 MT, unfilled.
The 2017 MAV auction saw approved import applications for 746,962 MT of rice, against a quota of 805,200 MT.
According to the NFA, 348 bidders composed of farmers’ organizations (FOs) and private corporations were eligible to participate in the auction, with 571 bids were submitted.
NFA Administrator Jason Laureano Y. Aquino said in a statement late Monday that 20% of the total MAV will be allocated to FOs “to ensure that the bidding will not be monopolized by big companies.”
“This is equivalent to 161,000 MT for FO’s, and 644,000 MT for non-FO’s,” he added.
Some 58% of the rice imports will be allocated to Luzon while the Visayas and Mindanao will receive 19% and 23%, respectively.
“First phase will start arriving in July until Aug. 31, 2018, while the second phase will start on Dec. 20, 2018 until Feb. 28, 2019,” Mr. Aquino added.
According to NFA, the remaining 200,673 MT from last year’s quota is set to arrive by Aug. 30.
Under the MAV scheme, only certain amounts of rice can be shipped into the Philippines, from countries with a specific quota.
Thailand and Vietnam are entitled to ship 293,100 MT each, followed by China, India and Pakistan at up to 50,000 MT. — Anna Gabriela A. Mogato

Diesel imports expected by July

THE ENERGY department has pushed back the target date for the importation of diesel fuel to July, or a month later than it originally projected, as the agency continues to look for ways to bring down fuel prices.
“I think there will just be a slight delay,” Department of Energy (DoE) Secretary Alfonso G. Cusi told reporters on Monday night, without giving a firm timetable for the shipments.
In late May, he said the DoE was planning to source petroleum products from Russia and other countries that are not members of the oil cartel, the Organization of the Petroleum Exporting Countries (OPEC).
The move was meant to “establish a strategic petroleum reserve (SPR) to cushion the impact of the rising price of oil in the international market.” A unit of the DoE’s corporate arm is to lead the project.
On Tuesday, Leonido J. Pulido III, assistant secretary at the DoE, confirmed the delay, saying the board of Philippine National Oil Co.-Exploration Corp. (PNOC-EC) will discuss the department’s recommendation at its board meeting only on July 2.
“It’s up to PNOC-EC if they’re going to adopt the recommendation, but our recommendation is to have the sale and purchase agreement executed within the next 10-15 days from the date of the approval,” he told reporters.
“The project objective really is it’s supposed to be targeted fuel relief,” he added.
Mr. Pulido said the move was prompted by the continuous increase in oil prices and countering this by bringing in more supply and providing lower-priced diesel or petroleum products to “vulnerable sectors” such as transport groups and off-grid areas powered by diesel-fired generation plants.
He did not identify the non-OPEC member state from which PNOC-EC is supposed to buy the fuel.
Mr. Pulido said Russia is a possible supplier “primarily because it was felt that there’s a very distinct possibility, because of the good relationship right now, that we would be able to get better prices.”
He said one of the recommendations of the DoE is the sale of the fuel at below prevailing market prices.
“Otherwise, if they sell at the same price, then the project objective will not be satisfied,” he said, adding that the selling price target range is P34 to P36 per liter. — Victor V. Saulon

DoE expects LNG facility proposals by end 2018

THE Department of Energy (DoE) expects to start receiving towards the end of the year firm proposals for an integrated facility for imported liquefied natural gas (LNG), an official said.
“We’re pretty confident that a lot of the discussions are nearing maturation,” Leonido J. Pulido III, an assistant secretary at the DoE, told reporters on Tuesday during the department’s “E-Power Mo” campaign for energy resiliency.
“So we feel — at least based on the reports that they’ve given us — within the third or fourth quarter of this year we will be receiving more concrete [or] what we call the full application for the construction of an integrated LNG facility,” he added.
Mr. Pulido said the department is drafting “certain policies” to address the concerns of would-be investors. The policies have yet to be approved by DoE Secretary Alfonso G. Cusi, he added.
The investors’ concerns center on the expiration by 2021-2022 of some of the power supply agreements (PSA) between the natural gas-fired power plants and their customers, he said.
At present, the country’s natural gas supply comes from the Malampaya gas field off the coast of Palawan province. Five gas-fired power plants in Batangas province, with a combined capacity of 3,211 megawatts (MW), are the main customers for the gas, which is expected to be depleted between 2022 and 2024.
“When those PSAs end, then there’s a concern as to the financing program for the construction of the LNG integrated facility,” Mr. Pulido said.
He said the pre-application conferences between the DoE and the investors are meant to reassure the latter that the mid-merit market, which the gas-fired power plants serve, will require the generated capacity.
He said about 11 investors had come forward with their interest in building an integrated LNG facility, although he could not immediately identify them.
In April, the DoE identified nine companies that have expressed interest: Cleanway Energy Dept. Corp., First Gen Corp., Tokyo Gas Co. Ltd., China National Offshore Oil Corp., Philippine National Oil Co., VIRES Energy Corp., SK E&S Co. Ltd., Carmine Energy Pte. Ltd. and DeEnergy International Corp.
“Some of the talks between the foreign investors and the local companies are becoming more mature. In one of our meetings last week, they said the discussions are somewhat more concrete,” Mr. Pulido said.
“It’s not exactly a selection. This is not like a bidding process. It’s more of a permitting process where you have to first identify your market and if your design [or] your business proposal fits your market and is commercially viable then we will issue the notice to proceed . . . and the permit to construct,” he said.
He said that although it is possible for several companies to build an integrated LNG facility, the entry barrier is high because of the capital involved.
“It’s estimated to be about between $1 [billion and] $1.5 billion. So once a certain market is secure, then it doesn’t make sense for another entity to come in and build the same facility,” he said.
Mr. Pulido said with the current market for natural gas, the country could probably support one or two LNG facilities.
For now, the would-be LNG project or projects are meant to cater to the power plants although the transport and industrial sectors are potential markets for the imported fuel, which is said to be the cleanest of fossil fuels.
Coal-fired power plants may also opt to convert to gas-fired facilities, Mr. Pulido said. He said he was hopeful that an LNG project would break ground in early 2019.
He said the DoE is also advocating legislation that will institutionalize the DoE’s rules on natural gas. He said the law should include a provision that will allow the national government to build the LNG facility should a private entity fail to qualify or is unwilling to take on the investment risk. — Victor V. Saulon

DPWH opens 700-meter section of Laguna Lake Highway extension

THE Department of Public Works and Highways (DPWH) has opened on Tuesday a two-lane extension of the Laguna Lake Highway, formerly known as the C-6 Dike Road.
In a statement, the department said the new 700-meter road extends from Napindan to M.L. Quezon in Taguig City.
“The Laguna Lake Highway project consists of a two-lane concrete road with a two-meter-wide planting strip and drainage. It also includes the construction and widening of three bridges, namely the Napindan Bridge, Barkadahan Bridge, and Tapayan Bridge,” it said.
The extension means a total of 6.7 kilometers (km) of the 10.7-km Laguna Lake Highway project has now been completed.
“Aside from increasing mobility, this project acts as an armored elevated dike protecting Taguig City against possible flooding,” DPWH Secretary Mark A. Villar said in the statement, noting that the development came in time for the rainy season.
He added, “The Laguna Lake Highway can also be a temporary evacuation area during the occurrence of floods.”
The project also covers a 1.5- meter wide sidewalk and a three- meter wide bike lane, the statement said. The Taguig General Hospital is also being built along the road.
The DPWH said the Laguna Lake Highway project covers the reconstruction of the damaged two-lane road and the construction of two more lanes, a sidewalk and a bicycle lane.
The department aims for the Laguna Lake Highway to be an alternate road to EDSA and C-5. When the project is completed, it is said to cut travel time from Taytay to Bicutan by 30 minutes. — Denise A. Valdez

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