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Ayala Land sets 450 hectares to carbon forests for sustainability

The world is changing at an alarming rate, and not all for the good. While the continued progress of technology and the lasting effects of the industrial revolution have propelled many countries towards prosperity, the benefits are taking their toll on the planet.

Climate change has become one of the most critical issues of the modern age, mainly because of the amount of greenhouse gases that many economies produce daily. The Intergovernmental Panel on Climate Change, which includes more than 1,300 scientists from the United States and other countries, forecasts that the temperature of the Earth would rise 2.5 to 10 degrees Fahrenheit over the next century if unmitigated, in the process doing catastrophic damage to various ecosystems, causing severe weather conditions like droughts and super hurricanes, and raising the ocean’s water level.

“Global climate change has already had observable effects on the environment. Glaciers have shrunk, ice on rivers and lakes is breaking up earlier, plant and animal ranges have shifted and trees are flowering sooner,” NASA stated on its climate change Web site.

“Effects that scientists had predicted in the past would result from global climate change are now occurring: loss of sea ice, accelerated sea level rise and longer, more intense heat waves.”

Why climate change is so difficult to address, however, is because the modern society has become dependent on the carbon-emitting processes that many industries use to fuel growth. The Philippines, for instance, emitted 157.6 million metric tons of greenhouse gases in 2012 alone. More than half, or 54%, came from the energy sector, followed by the agriculture and industrial processes, which contributed 33% and 8%, respectively, according to data from the United States Agency for International Development. Recent estimates are sure to be higher, as the country is currently experiencing a boom in its economy.

The Philippines is currently ranked the fifth most vulnerable country to climate and disaster risks. Much work needs to be done, and Ayala Land, Inc. (ALI), a leading developer of sustainable mixed-use estates and the real estate arm of Ayala Corporation, is taking the lead through a significant carbon emission offsetting program that targets the carbon neutrality of its commercial properties by 2022.

This January, the company announced that it is dedicating 450 hectares of land to develop carbon-guzzling forests in line with its aggressive targets, alongside its endeavors in renewable energy and green building.

“We have been tracking, among other environment, social, governance metrics, our greenhouse gas emissions throughout the various stages of our project development process,” Anna Maria Gonzales, ALI Sustainability manager, told the media in a recent briefing.

“We are taking this a step further by aiming for carbon neutrality, and one of the ways to achieve this is through our carbon forests,” she added.

Through a process called carbon sequestration, the carbon forest sites remove carbon dioxide from the atmosphere through natural processes. ALI collaborated with the Center for Conservation Innovations, Inc. for a study to determine the baseline carbon stock in these carbon forest sites, which consists of five sites located in different parts of the Philippines.

In addition to this, the study identified the best protection and enhancement approach through assisted natural regeneration (ANR) and other methods to maximize the carbon storage potential for each site. These methods aim to support forest regrowth through protection, and encourage biodiversity through the tending of diverse indigenous plant-life.

ALI has partnered with community-based, nongovernment organizations like Pusod, Inc., Soil and Water Conservation Foundation, and Philippine Eagle Foundation.

“ALI’s carbon forests sites are expected to augment ALI’s total carbon emission reduction by approximately 20% year on year,” Ms. Gonzales said.

Other than forest regeneration, ALI is also looking into a combination of strategies to reach its carbon neutrality target, such as the implementation of passive cooling designs in its developments, energy efficiency, and renewable energy sourcing.

As a subsidiary of one of the biggest and most influential conglomerates in the country, ALI is pushing for sustainable and environment-friendly practices in the real estate industry. The company stated that it believes that real estate developments greatly influence how society operates and by promoting responsible and sustainable developments, this will gradually promote awareness and inculcate the standards needed to create long-term value for the country.

Work on new mining taxes begins

By Melissa Luz T. Lopez
Senior Reporter

THE GOVERNMENT is moving closer to lifting the ban on new mining projects as the interagency Mining Industry Coordinating Council (MICC) works out a new tax regime for the mineral industry, in conjunction with the Finance department’s efforts to generate fresh revenue streams.

Finance Secretary Carlos G. Dominguez III, who co-chairs the MICC together with Environment chief Roy A. Cimatu, said Friday last week that the MICC will convene by the “first week of March” to “discuss” options the government could take that will effectively render Executive Order 79 obsolete.

A new law governing taxes for the mineral industry would lift that six-year-old order signed by then-President Benigno S.C. Aquino III which imposed a moratorium on the grant of new mining permits.

The 16th Congress attempted to mint a new revenue-sharing measure for the industry, but did not go beyond committee-level discussions.

“PACKAGE TWO PLUS”
A new mining bill will be submitted to the 17th Congress as part of “Package Two Plus” — a supplement of sorts to Package Two under the Duterte administration’s tax reform program and one that’s being prepared by the Finance department.

Finance Undersecretary Karl Kendrick T. Chua said last Friday that the agency is “still consulting” industry players on the proposed tax scheme, which could delay the submission of this supplement measure to Congress.

Package Two — submitted last month when Congress resumed session — seeks to impose additional taxes on gambling activities, as well as on coal production and alcohol and tobacco manufacturing. These are expected to complement the proposal to reduce corporate income taxes to 25% from 30%, alongside the removal of tax perks being enjoyed by big companies.

Since the MICC consultations have to be concluded first before writing “Package Two Plus,” the second round of tax proposals will likely appear as multiple bills referred to Congress on a piecemeal basis.

Mr. Dominguez said the proposal to provide different tax schemes for various metals is also being explored, an idea earlier floated by the Mines and Geosciences Bureau (MGB).

MGB Director Wilfredo G. Moncano said in November last year that his agency wants to impose taxes on a per-commodity basis, versus plans of maintaining a uniform tax rate for all mineral producers.

“It makes sense. You don’t tax nickel at the same rate as you tax copper,” Mr. Dominguez told reporters when asked about the plan late Friday. “First of all, the extractive costs are different and secondly, the values are different.”

The Cabinet official said these discussions are live even “at the technical level.”

Uncertainty over local mining policy has driven flighty foreign capital out of the Philippines in 2017.

That came in the wake of former Environment Secretary Regina Paz “Gina” L. Lopez’s announcement that she was closing 23 of the country’s 41 mines and suspending operations in five other sites a year ago. She later on said she wanted contracts for 75 projects in pre-operation stage also cancelled for being located in watersheds.

Business groups had warned the government of the negative impact of these shutdowns on the country’s overall investment climate, while pointing out the need to “fully explain and justify” the cancellations of mining permits.

The MICC is currently carrying out an audit of these shuttered mines through industry experts commissioned for the review, which is targeted to be completed by March.

President Rodrigo R. Duterte’s entire tax reform program aims to shift the burden to those who can afford to pay more and raise additional revenues to help support his administration’s “Build, Build, Build” program that will see P8.44 trillion spent on major public infrastructure until he ends his term in mid-2022.

Capital markets pause for breath as rate hike fears upset stock prices

By Krista Angela M. Montealegre
National Correspondent

COMPANIES seeking to tap the stock market for funding may stay on the sidelines until the dust from the global equity sell-off settles, as investors grapple with rate hike fears.

The bellwether Philippine Stock Exchange index (PSEi) — a barometer of investor confidence — wiped out its gains in a volatile week for investors that saw the main gauge plunge 3.49% to 8,503.69.

The benchmark index is now down 0.64% for the year after surging to an all-time high of 9,058.62 just 10 sessions ago, as Wall Street succumbed to a correction on concerns that rising borrowing costs will derail economic growth.

“We hear that investors and issuers are revisiting their timetables to take into account global market developments in addition to the changing monetary policies that may have an impact on interest rates and global growth and development,” PSE Chief Operating Officer Roel A. Refran said in a mobile phone message.

The PSE pushed back a planned P3.16-billion stock rights offering to March in light of the turbulence gripping markets worldwide.

Other companies may adopt a similar wait-and-see stance until the equity market normalizes while they pursue the necessary preparatory work to launch their offers when the window of opportunity presents itself, China Bank Capital Corp. Managing Director Virgilio O. Chua said.

“It’s still a go for my clients. They are still positive and optimistic. Volatility is normal and we will just adjust prices as necessary,” BDO Capital and Investment Corp. President Eduardo V. Francisco said.

With the PSEi kicking off the year with guns blazing, corporates embarked on bold fund-raising initiatives to capitalize on the strength of the stock market.

Bank of the Philippine Islands, Metropolitan Bank & Trust Co., Rizal Commercial Banking Corp., Robinsons Land Corp., and Integrated Micro-Electronics, Inc. announced their respective plans to sell shares worth more than P150 billion to existing investors.

“If the rights shares are offered at a discount to market then the current market weakness shouldn’t affect the existing offers too much,” PNB Securities President Manuel Antonio G. Lisbona said.

“For new or planned offers, the volatility might make timing the announcement and the pricing more tricky.”

RCBC Securities is sticking to its yearend forecast of 9,500 for the PSEi as long as the benchmark index stays above the critical support level of 8,100, its Head of Research Raul P. Ruiz said.

First Metro Investment Corp. (FMIC) Head of Research Cristina S. Ulang warned that global equities markets will remain volatile as central banks gear up to normalize policy rates.

The United States Federal Reserve raised borrowing costs three times last year after maintaining interest rates near zero for nearly a decade in an effort to buoy the world’s largest economy in the aftermath of the global financial crisis in 2008.

Fed policy makers are expected to lift key rates three times this year, as the US economy continues to show signs of strengthening.

Rising US Treasuries also reflect overheating risks that are affecting global markets, with the Bangko Sentral ng Pilipinas (BSP) projecting higher inflation despite standing pat on interest rates in its last policy-setting meeting, Ms. Ulang said.

The BSP expects inflation to average 4.3% this year, surpassing the 2-4% target range due to price pressures stemming from the new tax reform law that increased the cost of fuel, cars, tobacco, coal and sugar-sweetened drinks.

“Accumulate blue chips slowly on dips as the Philippines remains one of Asia’s best macro growth story,” Ms. Ulang said.

BIR collection up 15% in Jan. from sugar tax boost

COLLECTIONS of the Bureau of Internal Revenue (BIR) surged in January on the back of tax reform, the agency’s chief said noting that additional duties imposed on sweetened drinks provided the biggest lift.

BIR Commissioner Caesar R. Dulay said preliminary data showed that the agency’s collections jumped last month by 15% year on year.

The agency collected P147.39 billion in January 2017. A 15% increase would bring the month’s tally to around P169.5 billion.

Although declining to give a ballpark figure, Mr. Dulay told reporters that new taxes imposed on sugar-sweetened beverages shored up collection by P1.4 billion in just 18 days.

“I can tell you that the new tax on sugar-sweetened beverages, (we collected) P2 billion in less than a month… That’s a new addition because in 2017, wala pa ‘yan (we didn’t have that boost),” Mr. Dulay told reporters on the sidelines of the BIR’s 2018 Tax Campaign Kick-off last Friday.

The Tax Reform for Acceleration and Inclusion (TRAIN) law imposed additional excise taxes on sugary drinks, with the higher prices aimed at discouraging Filipinos from consuming soft drinks and similar unhealthy treats.

The new law, which took effect on Jan. 1, imposed an excise rate of P6 per liter on drinks containing caloric or non-caloric sweetener and P12 per liter on drinks containing high-fructose corn syrup. Instant coffee mixes and milk are exempted from these taxes.

Signed by President Rodrigo R. Duterte as Republic Act No. 10963, the TRAIN removed some exemptions to value-added tax as it increased tax rates for fuel, automobiles, tobacco, coal, minerals, documentary stamps, foreign currency deposit units, capital gains for stocks not on the stock exchange, and stock transactions. It also introduced a new tax covering cosmetic procedures.

These are expected to more than offset lower rates for personal income taxes for those earning below P2 million, alongside a simpler system for computing donor and estate taxes.

The BIR is targeting to collect P2.039 trillion in taxes this 2018, which is 11.48% more than the P1.829 trillion goal it initially set early last year. If realized, this would also be 14.6% higher than the P1.779 trillion collected in 2017.

Mr. Dulay had said in January that the TRAIN is expected to contribute an additional P15.893 billion in tax revenues to the BIR this year.

During Friday’s tax campaign launch, Finance Secretary Carlos G. Dominguez III said the BIR’s efforts would receive a boost from the TRAIN law.

“While we expect some revenue losses from reducing the individual income tax rate and by raising exemption levels, we should be able to offset these losses with a whole new range of excise taxes. This should be easier for the BIR to calculate the excise taxes and collect them more efficiently,” Mr. Dominguez said in his speech. — Melissa Luz T. Lopez

Pressure mounts on Fed after budget deal

WASHINGTON — The Federal Reserve will face growing pressure to accelerate its planned interest-rate increases after a nearly $300-billion spending package signed into law Friday juices a US economy already souped up on tax cuts.

Economists at banks and consulting companies are busy marking up their economic forecasts in response to the legislation, saying it will help lift growth in 2018 to well above the 1.8% rate the Fed reckons is the economy’s long-run potential.

“It does shift the risks to the upside” to both growth and inflation, said former Fed official Peter Hooper, who is now chief economist at Deutsche Bank Securities in New York.

In their last quarterly projection in December, Fed officials penciled in three rate increases for this year, according to the median forecast in their so-called dot plot. They tacitly reaffirmed that view this week as they played down the economic impact of the recent stock market rout.

“So far, I’d say this is small potatoes,” New York Fed President William Dudley said Thursday in a Bloomberg Television and Radio interview.

In a note to clients Friday, JPMorgan Chase & Co. chief US economist Michael Feroli raised his forecast for growth this year to 2.6%, from 2.2% previously, and for next year to 1.9% from 1.6%. He also reaffirmed his call that the Fed will raise rates four times this year and next.

“We are now more confident that the Fed will need to move more aggressively than either the market or the dots currently anticipate,” said Mr. Feroli, a former Fed researcher.

Mr. Hooper said he too is more comfortable with his prediction that the Fed under new Chairman Jerome Powell will boost rates four times in 2018.

He reckons that the additional government expenditure will raise growth this year by 0.4 percentage point, potentially lifting Deutsche Bank’s economic growth forecast to 3% in 2018.

INFLATIONARY PRESSURES
Mark Zandi, chief economist at Moody’s Analytics Inc., also sees as much as a 0.4 percentage point lift to 2018 growth from the budget package, adding that it comes at a time when the economy is already operating at its limits.

“It will fuel inflationary pressures,” Mr. Zandi said in an email. “How much inflation accelerates depends on how aggressively the Fed responds.”

Mr. Feroli said the extra growth will drive the unemployment rate even lower. He sees it dropping to 3.2% by the end of next year, from a near 17-year low of 4.1% in January.

That would leave joblessness well below the 4.6% level that Fed officials think is sustainable in the long run, according to their December projections.

Stephen Stanley, chief economist of Amherst Pierpont Securities LLC, said the Fed could get a little breathing room if the tax cut package lifts the potential growth rate of the economy — as he expects.

Mr. Feroli though argued that the central bank may not be able to delay its response to see whether such long-term benefits show through.

“The Fed doesn’t have the luxury to wait,” he said. — Bloomberg

Two-week term deposits on offer this week amid investor demand

By Melissa Luz T. Lopez,
Senior Reporter

THE Bangko Sentral ng Pilipinas (BSP) will start offering two-week term deposits this week in response to “strong interest” among banks, as the central bank steps up its efforts to mop up excess liquidity in the system.

The central bank announced that the 14-day tenor will be offered this Wednesday with an initial P20-billion volume. This will add to the P40 billion worth of seven-day instruments and P20 billion under the 28-day term to be sold under the term deposit facility (TDF), bringing the total volume to P80 billion.

“The offering of the 14-day TDF tenor is in response to the strong interest of BSP’s various counter-parties for a tenor longer than seven days but shorter than 28 days following a series of BSP consultations,” the central bank said in a Feb. 9 statement posted on its Web site.

“This is also expected to further refine the BSP’s instruments and operations under the interest rate corridor system,” the BSP added, noting that the new tenor has been introduced in keeping with a “more market-based approach” in its operations.

BSP Deputy Governor Diwa C. Guinigundo said in December that they have been in talks with banks to possibly introduce a third tenor for the TDF, which will help the monetary authority capture excess money supply more efficiently.

The TDF is currently the central bank’s main tool to shore up surplus funds in the financial system. The window allows banks to park the idle cash they hold under the BSP in exchange for a small margin, which in turn will prod market rates to move closer to the three percent benchmark set by the central bank.

Some analysts have said that a two-week duration would be a viable offering for the term deposit auctions, as the market largely prefers short-termed instruments.

Mr. Guinigundo has also said that banks favor shorter tenors as these lend more “flexibility” in managing their funds as they deploy cash for lending, withdrawals, foreign exchange, offshore investments and debt payments.

Last week, the central bank reopened the month-long tenor as liquidity levels continued to normalize after some tightness seen over the holiday season in December.

Tenders reached P51.43 billion for the P20-billion auction size, which drove the average yield down to 3.0183% from the 3.4954% fetched during the Dec. 13 exercise.

Total demand reached P140.003 billion, more than double the P60 billion which the BSP wanted to sell.

AC Energy aiming to complete 3 biomass projects in 2 years

By Victor V. Saulon, Sub-Editor

AYALA CORP.’S energy unit targets to finish in the next two years the three recently acquired biomass projects to qualify for the guaranteed power rate offered under the extended feed-in-tariff (FiT) system, a company official said.

“We will rush it (construction). Tatapusin namin in two years itong tatlo (We will finish the three projects in two years). These will all be completed,” Don Mario Y. Dia, AC Energy Holdings, Inc. senior vice-president for external affairs, told reporters.

Mr. Dia was referring to the three plants under Negros Island Biomass Holdings, Inc. (Islabio), a company acquired last year by Presage Corp., a unit of Ayala-led AC Energy.

Islabio owns shares in three subsidiaries, namely: the 20-megawatt (MW) San Carlos Biopower, Inc., the 25-MW South Negros Biopower, Inc. and the 25-MW North Negros Biopower, Inc. They are all engaged in biomass power generation and sale of electricity.

While the San Carlos project has been delayed, Mr. Dia said it would be moving into the commissioning phase in the next two to three months.

“So that will be our first biomass that will be under FiT,” he said, referring to the system that offers a fixed rate for 20 years for the electricity produced by developers of solar, wind, biomass, ocean energy and run-of-river hydro power plants.

The FiT is granted to the first to finish projects by end-2017 or earlier if the limited capacity set by the Department of Energy (DoE) had been fully subscribed.

For biomass development, 19 projects with a total capacity of 138.61 MW were awarded certificates of eligibility as of November last year, or a balance of 111.39 MW out of the 250-MW target.

The DoE has said it is keen on extending the biomass FiT for two years.

Mr. Dia is hopeful the projects would be given consideration for the FiT. He said the first project was already inspected by the DoE after completing 80% of its electromechanical component. 

“There’s an inspection done by the DoE. That has been done and once you get through that, they will endorse your plant to the ERC (Energy Regulatory Commission) for the final inspection,” he said.

Even ahead of the ERC’s awarding of the certificate of compliance, the two other projects are being constructed.

“We’re proceeding… We are of the impression that it is already signed,” Mr. Dia said, referring to a DoE circular that would extend the granting of the FiT.

He placed the cost of the projects at $45 million each, or a total of $135 million.

Bronzeoak Philippines, Inc., the projects’ proponent, previously said that ThomasLloyd CTI Asia Holdings was the principal financial sponsor. WBE (Hong Kong) International Green Energy Ltd., another shareholder, will provide engineering and construction services. Bronzeoak has since been acquired by AC Energy.

Last week, Energy Undersecretary Jesus Cristino P. Posadas told a forum that the FiT for biomass and run-of-river hydro “may be given consideration for the extension of two years or upon subscription of the set installation target capacity, whichever comes first.”

Mr. Posadas was quoting a speech prepared by Energy Secretary Alfonso G. Cusi, who earlier said that he was considering the extension for the two technologies, but definitely not for solar and wind.

Biomass projects that were completed by 2016 were awarded a FiT of P6.63 per kilowatt-hour, while those completed last year qualified for the P6.5969 degressed rate.

Yields on gov’t debt climb on inflation, hawkish BSP

YIELDS on government securities (GS) rose last week amid a risk-off tone in the market due to concerns on near-term inflation as well as the hawkish sentiments from the Philippine and US central banks.

GS yields rose by an average of 14.84 basis points (bps) week-on-week, data from the Philippine Dealing & Exchange Corp. as of Feb. 9 showed.

With the exception of the 182-day and 20-year debt papers, GS yields at the secondary market moved northward. At the short-end of the yield curve, the 91-day Treasury bills (T-bills) increased 33.32 bps to fetch 2.7105%. Likewise, the 364-day T-bills moved up by 2.74 bps to 2.9265%).

On the other hand, yields on the 182-day papers rallied as yields went down 26.64 bps to 2.8711%.

Meanwhile, the Treasury bonds at the belly saw their yields increase. The two-, three-, four-, five- and seven-year papers added 10.39 bps (3.9152%), 17.40 bps (4.3699%), 54.28 bps (5.0064%), 15.27 bps (4.9193%), and 46.58 bps (6.1804%), respectively.

At the long-end, the rate of the 10-year tenor increased 32.39 bps to 6.5332%. Yields on the 20-year debt paper, on the other hand, went down by 37.37 bps (6.0013%).

Analysts mostly attributed the increase in GS yields to the higher-than-expected domestic inflation result for January, which hit the upper bound of the Philippine central bank’s target for the year.

For Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines, the inflation print increased the possibility of “some hawkish moves” from the Bangko Sentral ng Pilipinas (BSP) this year.

Despite some buying interest coming from the BSP’s decision to keep policy rates unchanged, Mr. Dumalagan noted the BSP’s “slightly hawkish tone” in its monetary policy meeting last Thursday.

“Persistent bets of another US interest rate hike in March 2018 also drove yields higher,” he added.

A bond trader shared this assessment, adding that concerns on rising US interest rates sooner than expected led to the “risk-off tone” prevailing in global financial markets with sell-offs seen across asset classes except for “safe haven currencies.”

Commenting on the BSP’s move to keep policy rates unchanged, the bond trader said the BSP “lent only 10 minutes of relief, with sellers quick to unload into any ‘rally,’”

The BSP kept benchmark borrowing rates steady in its first policy meeting of the year despite expectations that inflation will breach 4% in the months ahead. The central bank discounted its impact as “temporary.”

However, the BSP raised its inflation forecast for the year, expecting price increases to overshoot its 2-4% target for 2018.

For Security Bank Corp. Head of Institutional Sales Carlyn Therese X. Dulay, the government’s rejection of bids for the fresh seven-year T-bonds at last Tuesday’s auction may have lent support to the increase in GS yields.

The papers, which will mature on Feb. 8, 2025, were met with demand worth P25.82 billion among investors, slightly bigger than the P20 billion that the government intended to borrow.

Had the government proceeded with a full award, the T-bonds could have fetched an average rate of 5.273% and a coupon rate of 5.5%, higher than the 4.39% average quoted when these were last sold. However, it would have still been lower than the 5.9432% yield on the seven-year maturity in the secondary market before the auction.

Earlier that day, the government reported headline inflation accelerating to 4% in January, which is faster than the 3.3% and 2.7% readings in December 2017 and January 2017, respectively.

For this week’s trading, Landbank’s Mr. Dumalagan said: “[W]e may again see an upward bias in GS yields amid expectations of stronger US data on retail sales and inflation,” he said.

“These reports are expected to further raise the chances of another US interest rate hike next month. The increase in yields, however, might be tempered by safe-haven buying amid possibly weaker GDP (gross domestic product) growth data from Japan.”

For Ms. Dulay and the bond trader, GS yield movements this week may take its cue from the government’s auction for the T-bills as well as “overall global sentiment.” — Dane Angelo M. Enerio

PHI eyes Dusit Thani hotels in Coron, Siargao

By Arra B. Francia, Reporter

THE local operator of Dusit Thani hotels is scouting for more locations to expand the international hotel brand’s footprint in the country, alongside the completion of nine projects in the next three years.

Philippine Hoteliers, Inc. (PHI) has identified four new locations where it is currently in talks with partners to develop hotels under the Dusit brand.  

“We’re looking at Palawan… Coron. We already have a location that we’re looking at, just looking at the legal aspects. We have signed an indication of interest. Then Siargao is also nice. And hopefully we can close a Boracay one,” PHI President and Vice-Chairman Evelyn R. Singson told reporters on the sidelines of a press conference last week.

Ms. Singson added the company is eyeing another potential location within the Makati area, where an existing Dusit Thani Manila is located.

Aside from these new locations, PHI is in the middle of adding nine hotels to its portfolio by 2021. Three of these projects will be in Cebu, including the Dusit Thani Mactan Cebu Resort developed with Robinsons Land Corp., and dusitD2 Hotel with the Gaisano group. 

Three more are under development in Davao, all in partnership with Torre Lorenzo Development Corp. (TLDC). These are Dusit Thani Hotel at Lubi Plantation in Davao Gulf, Dusit Thani Residence Davao, and dusitD2 Hotel. Another partnership with TLDC is the Dusit Princess Lipa Hotel, due for completion in 2021. 

Dusit Waves is also being built in La Union, a popular spot for surfers.

This year, PHI is scheduled to open a dusitD2 hotel in Bonifacio Global City (BGC). It will offer 125 rooms along with 175 serviced apartments that are owned by the Limcaoco family.

Located next to the dusitD2, the Dusit Hospitality Management College will be run in collaboration with Switzerland’s École hôtelière de Lausanne and France’s Institut Paul Bocus. It is scheduled to start accepting enrollees in the next school year, and will be fully integrated with dusitD2 to allow students to directly train in the hotel.

Ms. Singson noted the school will help meet the demand for employees for the Dusit hotels once they are completed. 

PHI’s aggressive expansion comes on the back of the country’s strong economic growth, which Ms. Singson noted is one of the fastest in the world.

“We believe that there’s a lot of potential. The Philippines is so naturally beautiful… We just have to improve our infrastructure, offer more accommodation. Our peace and order has to be assured, and maybe improve our airports. The potential is there, and we are seeing that,” Ms. Singson said.

Megaworld notches double-digit growth in 2017, says official

MEGAWORLD Corp. said earnings grew at a double-digit pace in 2017, citing general growth across its residential, office, leisure, and hospitality segments.

“(It was a) very good year. Double digit growth to say the least,” Megaworld Senior Vice-President Kevin Andrew L. Tan told reporters last week when asked how the company performed in 2017.

Megaworld has yet to disclose its 2017 financial results.

The property firm of tycoon Andrew L. Tan is the country’s largest lessor of office spaces, ending the first nine months of last year with a total of 888,500 square meters (sq.m.). It had set a target to breach the one million sq.m. mark for its office space inventory by the end of 2017.

This segment was what drove the company’s net income 11% higher in the January to September period, allowing it to post an attributable profit of P9.98 billion. Rental income for the period climbed by 19% to P8.82 billion, contributing to its P37.1-billion consolidated revenues for the period.

Megaworld is currently beefing up its network of shopping malls to increase its contribution to recurring revenues by 2020. Mr. Tan said they will have a total of 28 malls at the end of this period, which will account for half of its P20-billion target for recurring revenues in 2020.

“At the very least one or two malls in every township. We have 23 townships so that’s at least 23 malls, plus a few more that’s stand alone,” said Mr. Tan, who also heads the company’s Lifestyle Malls division. 

With a total of 15 malls already operational, the Megaworld executive said the segment currently accounts for around 40% of recurring income.

“The mall business, there’s a lot of players. It’s a very crowded industry so the challenge is really to create a point of differentiation… We look at our mall business as part of a business strategy, which is the township model,” Mr. Tan said.

Megaworld is the property arm of Alliance Global Group, Inc., which also has core interests in liquor, gaming, and quick service restaurants.

The company currently has 23 townships located across the Philippines. This includes the 640-hectare Eastland Heights in Antipolo, Rizal and the 35.6-hectare Capital Town in Pampanga where Megaworld will spend P30 billion in the next 10 years. 

Shares in Megaworld were down by 10 centavos or 2% to finish at P4.90 apiece at the Philippine Stock Exchange last Friday. — Arra B. Francia

Revitalized NLEX halts Alaska winning streak

By Michael Angelo S. Murillo
Senior Reporter

THE NLEX Road Warriors extended their rejuvenated push of late in the PBA Philippine Cup, adding erstwhile streaking Alaska Aces in their list of conquered foes with a 96-89 victory yesterday in their matinee encounter at the Smart Araneta Coliseum.

Riding a two-game winning streak entering the match, NLEX took its ascent to three wins in a row after dominating Alaska early and fending off the latter’s ferocious fight back in the final canto, halting in the process the Aces’ conference-high six-game winning run.

NLEX took control of the opening period, relying on the offensive outbursts of veterans Larry Fonacier and JR Quiñahan to race to a 29-18 advantage.

The Road Warriors sustained their fiery start in the opening quarter as the second canto commenced, outscoring the Aces, 11-6, in the first five minutes to lead, 40-24.

Alaska managed to cut NLEX’s lead to 12 points, 41-29, with less than four minutes to play as it stepped up its defensive pressure.

NLEX, however, regained control with rookie Kiefer Ravena facilitating offense for the team.

The Road Warriors went on an 11-0 blast after to stretch their lead to 23 points, 52-29, before settling for a 20-point gap, 52-32, by the halftime break.

Off the break, NLEX continued to lord it over Alaska, establishing a 30-point lead, 69-39, with 6:50 remaining on the clock.

An 8-0 run by the Aces in the next minute and a half cut the lead to 22 points, 69-47.

NLEX though would stop the bleeding, answering back with a 6-0 blast of its own and stayed in solid form as the quarter ended, holding a 79-54 lead heading into the final 12 minutes.

Alaska continued to fight in the fourth period despite the deep hole it was in. It was able to slash NLEX’s lead to just 11 points, 87-76, with 4:25 to go in the game on the strength of forcing turnovers and fast-break points.

Mr. Quiñahan broke NLEX’s drought with a jumper to take their lead to 13 points, 89-76.

At the two-minute warning, the Road Warriors held an eight-point cushion, 91-83, seeing it further cut down to two, 91-89, with 13 ticks to go.

NLEX guard Kevin Alas was fouled thereafter but split his free throws to still open the door for Alaska, 92-89.

The Aces sued for time to set up a play to tie or come further close, but they threw the ball away off the inbounds pass.

Alaska fouled Mr. Ravena with eight seconds to play. The first-year guard converted his charities and extended their lead, 94-89.

Two more free throws from Mr. Fonacier after settled things and gave the win to NLEX.

Mr. Fonacier and Raul Soyud led NLEX with 15 points each while Mr. Ravena had a double-double of 12 points and 10 assists.

Jeron Teng, JVee Casio and Vic Manuel paced Alaska with 12 points apiece.

“Good thing we had a good start. We built a big lead and it helped us withstand that big fight back by Alaska in the end. Happy we pulled this off,” said Mr. Ravena, who was named player of the game along with Mr. Fonacier, postmatch.

The Road Warriors (5-4) get back on the court on Sunday, Feb. 18, against the Blackwater Elite while Alaska (6-3) plays a day earlier versus the San Miguel Beermen in an out-of-town game in Batangas City.

NU wallops UE to keep campaign unblemished

By Michael Angelo S. Murillo
Senior Reporter

LEAGUE-LEADING National University (NU) Lady Bulldogs won their third straight victory in University Athletic Association of the Philippines (UAAP) Season 80 women’s volleyball yesterday, defeating the University of the East (UE) Lady Warriors, 25-15, 18-25, 25-23 and 25-19, to sustain their solid start to their campaign and stay on top of the heap.

One of the just two teams left unblemished as Season 80 entered a new week, the Lady Bulldogs stayed the course amid a determined challenge from the Lady Warriors to fashion out the four-set victory and kept their spotless record intact.

The two teams had it tight to begin the match, fighting to an 8-7 count by the first technical timeout with NU on top.

The Lady Bulldogs would create some distance after to claim a five-point cushion, 16-11, midway into the frame.

UE tried to claw its way back but NU would stand its ground, speeding its way to close out the first set on a 9-4 blast and take a 1-0 lead.

In the second frame, the nip-and-tuck beginning continued. But unlike in the first set, the Lady Warriors did not let go of the rope and kept in step with their opponents.

Tied at 8-all at one point, UE kept its composure, claiming the lead at 15-14 and going to outscore NU, 10-4, the rest of the way to pull even at a set apiece.

The Lady Warriors maintained their spirited fight to start the third set, racing to an 8-4 lead by the first technical knockout.

NU though would turn things around after, overhauling its deficit by the next stoppage, 16-15.

The team jostled to establish control in the homestretch of the set, knotted at 20-all heading into the last fifth of the third frame.

UE took a 22-20 lead before NU leveled things at 22-all. It is something the Lady Bulldogs would capitalize on, with setter Jasmine Nabor figuring prominently, as they used it as leverage to complete the set comeback.

The fourth set had the protagonists battling it tight in the early goings, tied at 11-all midway into it.

NU was first to the second technical, 16-12, as middle blocker and team captain Jaja Santiago took charge.

The Lady Bulldogs extended their lead further to 22-13 but the Lady Warriors would not go away without a fight as they pulled within five points, 24-19.

It was the closest they would get though as Santiago and the Lady Bulldogs went for the finish after.

Santiago led the way for NU (3-0) with 23 points, 18 of which coming from attacks, four from blocks and one service ace.

Nabor finished with three points and 40 excellent sets while Roselyn Doria had 12 points and Aiko Urdas adding eight for NU in the win.

UE (0-3), meanwhile, was paced by Mary Anne Mendrez and Shaya Adorador with 11 points apiece.

“It was not a pretty win but we will take it,” said NU coach Babes Castillo during the post-match press conference.

Next opponents for NU are the defending champions De La Salle Lady Spikers on Sunday, Feb. 18, while UE plays the Ateneo Lady Eagles on Saturday.

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