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SEC warns foreign nationals against engaging in retail trade

THE COUNTRY’S corporate regulator is warning foreigners against engaging in retail trade in the country, after receiving reports some entities owned or partly owned by foreigners are doing business without proper registration.

In an advisory posted on its Web site on Monday, the Securities and Exchange Commission (SEC) said under Republic Act No. 8762 (RA 8762), otherwise known as the Retail Trade Liberalization Act of 2000, only retail trade enterprises with paid-up capital of less than $2.5 million are “exclusively reserved for Filipino citizens.”

The SEC described retail trade as “any act, occupation, or calling of habitually selling direct to the general public merchandise, commodities, or goods for consumption.”

Under RA 8762, foreigners may only be fully involved when the paid-up capital exceeds $2.5 million, or when the investment for establishing a store is not less than $830,000. Exception is also allowed for when the business specializes in high end or luxury products, given that the paid-up capital per store is not lower than $250,000.

Those found guilty of the act may be imprisoned for six to eight years, aside from paying a fine of P1 million to P20 million. The penalties will be imposed on partners, directors, managers, officers, and the president of association or corporations found guilty of the law.

In cases involving foreign nationals, the SEC may order their deportation immediately after the sentence for the crime has been served.

The SEC also reminded the public of Section 2-A of Commonwealth Act No. 108, also known as the Anti-Dummy Law of the Philippines.

Here, aliens are prohibited employment in any corporation or association “expressly reserved by the Constitution or the law to the citizens of the Philippines or corporations or associations at least 60% of the capital of which is owned by such citizens.”

The ban on employment from such entities, as well as those engaged in nationalized activities, applies even to minor, clerical, or non-control positions. This is to prevent foreigners from intervening in the management, operation, administration, or control of the entity.

The SEC urged the public to make reports on any unauthorized activities with the agency’s Enforcement and Investment Protection Department. — Arra B. Francia

Valentine’s Day Celebrations (02/13/18)

Musical February Robinsons

ROBINSONS MALLS are offering a plethora of activities for the Love month. Take a photo at Robinsons Magnolia’s Love Photo Corner from Feb. 3 to 18, plus, enjoy a special jazz performance on Feb. 18 from 4 p.m. to 6 p.m. Join Robinsons Magnolia’s Shop, Dine & Watch, a movie promo from Feb. 10 to 14 — present a minimum ₱10,000 single or accumulated receipt transaction made at any retail outlets of Robinsons Magnolia and you redeem two Robinsons MovieWorld Prepaid Cards for a romantic movie date. Over at Robinsons Place Manila and Robinsons Otis, there will be acoustic serenades on Feb. 13 and 14. Robinsons Place Manila will also host the album launch of TV and theater actor JC Santos on Feb. 18. He will be joined by Birit Queens, Klarisse and Jona. Over at Robinsons Place Las Piñas, there will be a Bridal Fair from Feb. 12 to 18. At Robinsons Tagaytay, test your luck with Love & Luck Promo for a chance to win Robinsons Gift Certificates, tikoy, hopia, or chocolate when you present a receipt worth ₱500. On Feb. 14, it is all about music at Robinsons Malls. Boy group Invasion will hold a mini Valentine’s Day concert at Robinsons Place General Trias. There will be a romantic instrumental serenade at the Verandah of Robinsons Place Las Piñas. A trio will perform at Robinsons Tagaytay (where couples can a photo in a Heart-shaped Love Lock set-up at the Love Photo Op corner). Acoustic music will be played at Robinsons Town Mall Los Baños and at Robinsons Place Lipa where there will also be Live DJ Dedication Booths. The acoustic music will also play on Feb. 17 at Robinsons Tagaytay and Robinsons Place Lipa. The 4Play Acoustic Band will be performing at Robinsons Place Dasmariñas on Feb. 14.

Kim Chiu’s Hugot Night

SINGER/ACTRESS Kim Chiu will join the so-called sawi (broken-hearted) population as they celebrate Valentine’s Day at the Araneta Center. Hugot Night, Araneta Center’s Valentine special for singles suffering from failed relationships, will take place at the Gateway Mall activity area on Feb. 14, 6 p.m. Ms. Chiu, who is expected to perform and share words of wisdom for the sawi, will be joined by stand-up comedienne Donna Cariaga, indie folk-pop artist Alex Corner, and spoken word artist Maimai Cantillano. Hugot Night is part of Araneta Center’s week-long Valentine and Chinese New Year celebration titled “Feels X Fortune,” which runs from Feb. 11 to 18 in all Araneta Center malls (Gateway, Ali Mall, and New Farmers Plaza). There is a Chinese New Year special for the heartbroken called “An Afternoon of Feels and Fortune” on Feb. 16, 1 p.m.-4 p.m., at the Gateway Mall activity area. Hosted by comedian Stanley Chi, it includes talks on attracting one’s soulmate by tarot card reader Rob Rubin, and moving-on by Internet action star Ramon Bautista; EX-Hibit: The Araneta Center Heartbreak Museum; Letters of Letting Go; Feels Forecast; outdoor movie screenings; and free tarot card reading by Mysterium Philippines.

Valentine shopping spree

THE All-Out Shopaholic Sale is back at the Festival Mall on Feb. 16-18, featuring discounts as high as 70% to help with one’s Valentine’s gift needs. Both Landmark Department Store and Robinsons Department Store will be participating. For a classic romantic gesture, add to red roses those stuffed toys from Bear Cuddler and Blue Magic at the main mall, or LouBeary at the mall’s new Expansion Wing. The mall’s Expansion Wing will join the sale featuring the latest in shoe trends at Keds, Sperry, and Geox. Vans, Converse, Hush Puppies, Sebago, Alberto and many more. Shops at the main mall with an array of shoe brands like Complex and Res|Toe|Run are participating too. Get your significant other dresses, shirts, pants, and more from brands like Giordano, Guess, Penshoppe, Kamiseta, Mossimo, Plains and Prints, Levi’s, Cinderella, Memo, Marithe Francois Girbaud, and others for marked down prices. Show the kids a little love with toys from shops like Kids Depot and Toytown or clothes from Baby & Kids and Barbie Boutique.

Condominium 2017 sales break record in surprise boon to builders

By Francis Anthony T. Valentin
Special Features Assistant Editor

DESPITE growing fears over an oversupply of condominium units, the vertical property market in Metro Manila ended the year on an upbeat note, with condo take-up climbing to a record level.

According to the fourth-quarter residential property market report of real estate consultancy Colliers International Philippines, about 52,600 condominium units were sold in both the prime central business districts (CBDs) of Metro Manila and the surrounding fringe areas in 2017.

Not only is the figure considerably higher than 2016’s 42,000, it is also “the highest historically for Metro Manila,” topping the previous record of 51,600 units sold in 2012, Dinbo Macaranas, senior research manager at Colliers, said at a briefing in Makati City last February 8.

This record-breaking feat was partly helped by last-minute launches, which numbered about 34,000, Colliers said.

“When you have that sort of demand, the tendency is for prices to also go up,” Mr. Macaranas said.

And they did. For instance, at Rockwell Center, a luxury three-bedroom unit was selling for anywhere between P197,200 and P236,600 per square meter (sq. m.) during the third quarter of 2017. The following quarter, it fetched at a higher P198,000/sq. m. to P244,300/sq. m. range. The same unit also became a bit costlier in Makati CBD and Fort Bonifacio.

The uptrend in unit prices will likely continue, “especially considering that we’ve seen a lot of price increases recorded by different projects both in the primary and secondary markets,” Mr. Macaranas said.

Colliers also noted that across key business districts, the capital values of completed units marginally rose at a pace close to 2.5%, and credited this trend to the performance of the primary market that led to higher pre-selling prices.

Rents, meanwhile, showed an even more marginal growth. “Changes from 3Q 2017 showed variations of about one percentage point,” Colliers said. The top three CBDs in terms of rental rates last year were Rockwell Center (P873 per sq. m./month), Fort Bonifacio (P810 per sq. m./month), and Makati CBD (P803 per sq. m./month).

Roughly 2,900 units were delivered during the fourth quarter, and “[t]he completions during the quarter were concentrated in Fort Bonifacio and Makati CBD,” Colliers said. In 2017, the two sites contributed the most — 3,200 and 2,900, respectively — to the supply of condominium units, which reached 10,400 in Metro Manila. They were followed by Manila Bay Area (2,100), Ortigas Center (1,200) and Eastwood City (1,000).

Delays — not so uncommon in the market — have pushed back the expected delivery dates of about 27,200 units from 2017 to this year. That amount will constitute a record high for Metro Manila, Colliers said.

But those same delays, coupled with rental market demand from young professionals, helped bring down, albeit meagerly, the quarterly vacancy rate to 12.6% from 12.7%. “Anecdotally, we also noticed a growing community of Chinese and Korean nationals in CBDs more recently,” Colliers said.

Manila Bay Area had a fourth-quarter vacancy rate of 18.1%, the highest among the CBDs the firm is tracking. It was a tad lower than the preceding quarter’s 18.3%, a movement Colliers noted was attributable to the absence of new supply and the growing demand from employees of offshore gambling companies.

“Given the increase in demand, in the capital appreciation, or prices continuously increasing both in the primary and secondary markets, the question now is… will this demand continue,” Mr. Macaranas said. They, at Colliers, believe that it will.

The firm considered three things that led it to that belief. One is that Metro Manila goes toe to toe with several major Asian cities in terms of rental yields. Colliers noted that Metro Manila has an average rental yield of 5.3%, higher than Bangkok’s 4.4%, Singapore’s 2.9% and Hong Kong’s 2%. Only Jakarta (8%) and Ho Chi Minh (6%) outperform Manila.

Even when inflation was factored in, yields were still positive. “Yields across CBDs have fallen from a high of 9% in 2001 to just below 5% today. When adjusted for inflation, annual returns generally stayed above 1.5%,” Colliers said.

Finally, the yields will still be acceptable, the property consultant said, when average capital appreciation and bank mortgage rates are considered.

Colliers recommends that developers focus on the positioning of their projects. “Given the massive supply that’s coming online… location will be key,” Mr. Macaranas said. Now, he added, “Even the finishing and the quality of the structure will be key for the market.”

UBS increases Asia bonus pool

UBS GROUP AG boosted the 2017 bonus pool for its investment bankers in the Asia-Pacific region by about 6%, reflecting a rebound in dealmaking and efforts to retain junior staff focusing on China, according to people familiar with the matter.

Total compensation for junior bankers in the region rose by about 12% on average, the people said, asking not to be identified because the information is private. Some junior bankers focusing on China received raises of 15% to 20% as UBS seeks to reverse a series of defections to Chinese corporates and private equity firms, one of the people said.

UBS, like many of its competitors, is increasingly tilting bonus payouts toward the biggest revenue generators and younger bankers who might otherwise defect for other industries. The larger bonuses in Asia mark a reversal from the previous year, when the regional investment banking payout pool was cut by about 15%.

The average total compensation for senior managing directors in Asia-Pacific, including bonuses, was about $1.3 million for last year, the people said. UBS spokesman Rob Stewart declined to comment on the payouts.

UBS benefited from a revival in China equity and equity-related deals last year and a recovery in Australia in the second half, the people said. Those two markets have traditionally been UBS strongholds.

Pretax profit at UBS’s regional investment bank, which also houses brokerage operations, jumped 66 percent to 500 million Swiss francs ($532 million) in 2017, according to its latest earnings report. — Bloomberg

How PSEi member stocks performed — February 12, 2018

Here’s a quick glance at how PSEi stocks fared on Monday, February 12, 2018.

PHL trade deficit balloons to a historic $29.786B

Ombudsman orders Deputy Speaker dismissed

OMBUDSMAN Conchita Carpio-Morales in a statement on Monday said she has ordered the dismissal from the service of House Deputy Speaker and 3rd District Representative Gwendolyn F. Garcia for grave misconduct, in connection with a P98.9-million purchase of “the controversial Balili property” in Naga, Cebu, when she was provincial governor.

According to the statement, the said property, bought in 2008, is “a sprawling 249,246 square meter lot, (of which)….(l)ocal authorities later discovered that 196,696 square meters of the property were underwater and part of a mangrove area.”

“In 2012, the local government conducted a public bidding ‘for the supply and delivery of backfilling materials and other incidentals of its submerged and mangrove portions,’” the statement noted, adding that the project was awarded to Supreme ABF Construction “as the lowest calculated and responsive bidder with a total tendered bid of P248.75/cubic meter.”

The statement further noted that, based on records, the provincial government released a total of P24.5 million to the winning contractor. But, “(u)pon scrutiny, the Ombudsman found that Garcia had no authority from the Sangguniang Panlalawigan when she entered into contracts with ABF Construction.”

“While this Office finds merit on her assertion that the P50-million allotment for the airport/seaport and other economic enterprise site development program (a capital outlay expenditure that was carried over to the 2012 Annual Budget of the province), was a valid source of appropriation for the Balili project, such appropriation did not validly confer authority to respondent Garcia to enter into a contract with ABF Construction for the Balili project.”

“She failed to point out the specific provision in the appropriation ordinance which supposedly authorized her to enter into the contract,” the statement also noted, citing the Ombudsman’s Jan. 15 decision.

“Garcia violated Sections 46 and 47, Chapter 8, Subtitle B, Title I, Book V of the Administrative Code of 1987 and Section 86 of the Government Auditing Code of the Philippines which proscribe entering into a contract unless a certification of appropriation and fund availability for the expenditure is issued. It is undisputed that the [certification of available funds] was issued only after the [second] contract was entered into by respondent Garcia.”

A co-respondent of Ms. Garcia, accountant Emmanuel Guial, was found guilty of simple neglect of duty “for certifying in the subject [disbursement vouchers] that the supporting documents are complete when in fact they lacked the required authority from the SP for respondent Garcia to enter into contract.”

On the other hand, dismissed for lack of merit were administrative charges against Bids and Awards Committee Chairperson Marivic Garces; Vice-Chairperson Bernard Calderon; members Manuel Purog, Emme Gingoyon, Ma. Junelene Arenas, Cristina Giango, Rosalinda Jao; and Acting Provincial Treasurer Roy Salubre.

The Ombudsman said the dismissal order carries the accessory penalties of perpetual disqualification from holding public office, cancellation of eligibility and forfeiture of retirement benefits.

Ms. Morales also directed that a copy of the decision be furnished, for appropriate action, to House Speaker Pantaleon D. Alvarez.

Interviewed by reporters, Mr. Alvarez said he will “definitely not” implement the dismissal order against Ms. Garcia. “In fact, it is not within the power of the Ombudsman to discipline, much more to remove any member of the House of Representatives. So, pag ginawa ko ’yan (if I do that), I would be violating the Constitution. Since, merong nakalagay sa Constitution na kami lang may kapangyarihan (only the House is empowered by the Constitution) to discipline (and remove its) remove members from the House of Representatives.”

He noted that the dismissal order is “late,” being applicable only to Ms. Garcia’s tenure as Cebu governor.

Ms. Garia, when interviewed by reporters, said, “The timing is rather suspect, it does seem as though the Ombudsman has singled me out in the act that was done when I was still governor several years ago, and you rather wonder whether this was purposely done, precisely because as you saw, I am very active in this committee hearing against Chief Justice Sereno.”

“I will not touch on the merits of the (order),…and I shall leave it to the sound judgment and wisdom of the House leadership, headed by Speaker Pantaleon Alvarez,” she also said.

House Majority Leader Rodolfo C. Fariñas, for his part, said, “Nasa rules namin ’yan. (We have rules on that.) Any orders coming from the court or whatever administrative bodies, we have to first determine, is the order valid? Is it relevant to our rules and everything? So ire-refer muna namin ’yan sa plenary. (So we will refer this to plenary.)”

He also pointed out the case of Senator Joel Villanueva’s dismissal by the Ombudsman, but “the Senate did not (remove) him.” — with Minde Nyl R. dela Cruz

Senate passes ban on hazing on third and final reading

By Camille A. Aguinaldo

WITH 19 affirmative votes, the Senate on Monday passed on third and final reading a bill seeking to completely ban hazing as a prerequisite for admission into a membership of a fraternity, sorority or organization.

Senate Bill No. 1662 or the act amending Republic Act 8049 to strengthen the law on hazing and regulate other forms of initiation rites was introduced by Senators Gregorio B. Honasan II, Sherwin T. Gatchalian, Loren B. Legarda, Paolo Benigno A. Aquino IV, Panfilo M. Lacson, Emmanuel Joel J. Villanueva and Vicente C. Sotto III.

It was sponsored by Mr. Lacson and co-sponsored by Senators Gatchalian and Juan Miguel F. Zubiri

“Hazing needs to stop now. Awareness must be raised as to the fact that there is no unity, no brotherhood, no strength, no honor and no respect in hazing. It is merely violence,” said Mr. Lacson, chair of the Senate committee on public order and dangerous drugs, in a statement.

The families of hazing victims University of Santo Tomas law student Horacio T. Castillo III and De La Salle-College of Saint Benilde student Guillo Cesar Servando witnessed the bill’s approval and handed white roses to senators as a symbol of gratitude.

It was Mr. Castillo’s death due to hazing which prompted a legislative inquiry and proposals to amend provisions of the Anti-Hazing Law.

In the amended version, the bill defines hazing as any physical or psychological suffering, harm or injury inflicted on a recruit, member, neophyte or applicant for admission or continuing membership into the fraternity, sorority or organization.

The proposed measure sought to ban all forms of hazing in school fraternities, sororities, organizations as well as those in the community or other associations, including the Armed Forces of the Philippines (AFP), the Philippine National Police (PNP), the Philippine Military Academy (PMA), the Philippine National Police Academy (PNPA), and other similar uniformed service learning institutions.

Mr. Lacson said the bill also expanded the coverage of hazing to include paddling, whipping, beating, branding, as well as any other brutal treatment or forced physical activity which would likely adverse the physical and psychological health of the applicant.

Fraternities, sororities and organizations were also required to submit an application to school authorities of their detailed initiation rites seven days before the scheduled activity. School representatives should also ensure that no hazing is done in an initiation rite.

“The bill also requires the appointment and identification of advisers, who will be presumed to have knowledge and consent to the commission on any unlawful act in the violation of the Anti-Hazing Law,” Mr. Lacson said.

The bill also introduced stiffer penalties for hazing, imposing a punishment of reclusion perpetua and a P3-million fine to persons who participated in hazing resulting in death, rape, sodomy or mutilation.

Members of a fraternity who participated in the hazing would suffer the penalty of reclusion temporal and a P1-million fine. If they were under the influence of alcohol or illegal drugs, the penalty of reclusion perpetua and P2-million fine will be handed down.

Penalties would also be imposed on persons who had knowledge of any hazing acts but fail to report to authorities, those found guilty of obstructing investigation, school authorities if they failed to prevent hazing or if they consented, those who force another person to join a particular organization, the owner of the place where hazing is conducted, and local officials.

If convicted of the crime, the person’s hazing offense will reflect on his or her scholastic record, personal or employment record.

LTFRB ups common supply base for ride-sharing vehicles

By Patrizia P. C. Marcelo

THE LAND Transportation Franchising and Regulatory Board (LTFRB) has increased the number of ride-sharing vehicles in order to meet demand.

In its new memorandum circular (MC), which revises a previous MC, the LTFRB increased to 65,000 its common supply base for transport network vehicle services (TNVS) in Metro Manila (from 45,000), to 1,500 in Metro Cebu (from 500), and to 250 in Pampanga (from 200).

The LTFRB revised its figures after considering factors like the number of active and inactive TNVS, and churn rate.

Board Member Aileen Lourdes A. Lizada said in a press conference that the number will be able to serve at least 75% of requested bookings per day, against the 60% served by transport network companies (TNCs) Uber Philippines (Uber Systems, Inc.) and Grab Philippines (MyTAXI.PH, Inc).

Hatchback models, which were prohibited in the previous order, will be allowed for a transition period of three years. However, they will not be allowed to operate in Laguna, Bulacan, Rizal, and Cavite. They will also be charging lower fares.

The new MC will be effective by the end of the month. The LTFRB on March 5 will resume processing of pending TNVS applications, postponed last July.

PHL, China panels meet today on South China Sea

By Arjay L. Balinbin

THE PHILIPPINE government and the People’s Republic of China are set to discuss the contentious issues concerning the South China Sea on Tuesday, Feb. 13, Presidential Spokesperson Herminio Harry L. Roque, Jr. said.

“Now contentious issues concerning the South China Sea are discussed in what is known as the Bilateral Consultation Mechanism (BCM) on the South China Sea. [T]he second meeting of this Philippine-China BCM on the South China Sea will be held here in Manila tomorrow, Feb. 13, 2018,” Mr. Roque announced in a press briefing at the Palace on Monday, Feb. 12.

The spokesman highlighted that the administration of President Rodrigo R. Duterte has been “consistently protesting” China’s military buildup in the area, saying “we are not being soft on China, [because] there are ongoing bilateral talks as far as contentious South China Sea issues are concerned.”

Mr. Roque likewise explained that the BCM was established based on the joint statement issued after President Duterte’s landmark visit to China in October, 2016.

“The purpose of this BCM is to discuss issues of concern to either side and cooperation in the South China Sea, and identify mutually acceptable approaches towards addressing this issue,” he added.

The BCM, according to Mr. Roque, “is conducted at the level of Department of Foreign Affairs (DFA) Undersecretary and Chinese Vice Foreign Minister and is to be held once every 6 months.”

“We were busy last December, and hence it was postponed for this month of February. The Chinese delegation will be led by Vice Foreign Minister Kong Xuanyou, while the Philippine delegation will be led by DFA Undersecretary for Policy Enrique A. Manalo.”

Asked why the government is now giving an emphasis to this matter, Mr. Roque said: “Well, it’s really not an emphasis. It’s just a matter of informing the public that a mechanism has been in existence, and in response to claims that we are not doing anything. We are doing what the government has deemed best to be done.”

Ex-Comelec head Bautista facing arrest order from Senate

FORMER COMMISSION on Elections (Comelec) chair Andres D. Bautista, who is currently abroad, is facing an arrest order from the Senate for contempt following his failure to attend anew the inquiry regarding his alleged questionable bank transactions despite a previously issued subpoena.

Senator Francis G. Escudero yesterday said Mr. Bautista’s explanation for his absence was not acceptable.

“I have requested the Senate to issue a warrant for Chairman Bautista so he can be arrested anytime when he arrives in the country. The committee is compelled to do this after his obvious defiance of the Senate orders,” Mr. Escudero, chair of the committee on banks, financial institutions and currencies, said in a statement.

During Monday’s hearing, Mr. Bautista sent a letter addressed to Mr. Escudero and Senate President Aquilino L. Pimentel III stating that he has been abroad since Nov. 21, 2017 seeking professional opportunities and medical help.

He also asked the Senate panel to recall its Jan. 23 subpoena since he did not receive any invitation to attend the legislative inquiry.

“I understand from news reports that a subpoena has been issued because of my non-appearance in the hearing. In this regard, I respectfully ask that the subpoena be recalled since I never received the invitation,” Mr. Bautista said in his letter.

Mr. Bautista also said that he would answer in writing any of the questions that the Senate panel may have.

In an interview with reporters, Mr. Escudero labelled Mr. Bautista’s excuses in the letter as “a ruse.”

“If he has nothing to hide, then he should not be afraid,” the senator said.

Mr. Escudero also told reporters that there are discrepancies regarding the travel information on Mr. Bautista, citing Bureau of Immigration (BI) records indicating that the former polls chief was out of the country from Oct. 27 to Nov. 1 last year, but none on a Nov. 21 departure.

“There is no record in the BI about his alleged departure last Nov. 21 as stated in his letter… I don’t know who is saying the truth,” he said in Filipino.

Mr. Bautista’s siblings, Susan B. Afan and Martin D. Bautista, were also invited by the Senate panel but both likewise failed to show up.

Ms. Afan, through a letter, asked to be excluded from the committee hearing, maintaining that she has no knowledge of the Anti-Money Laundering Law (AMLA).

“If they don’t want to attend, they can execute a waiver… They can tell the committee that they will not issue a waiver, they can invoke whatever rights they have under the laws and we will respect that. But they cannot do that through letters alone and hide behind it,” Mr. Escudero said.

Mr. Bautista’s estranged wife, Patricia P. Bautista, who appeared in Monday’s hearing, urged her husband to answer the allegations.

“Like anybody else, we would like to know the truth about these documents. And this is the best venue for that and like Senator Chiz (Escudero) said, out of respect of the Senate, please appear,” she told reporters.

Mr. Bautista’s alleged unexplained wealth surfaced last year after Ms. Bautista accused him of committing corrupt practices and amassing nearly P1 billion in real estate and cash stashed in banks.

The former Comelec chief was impeached on October 11, 2017, the same day that he tendered his resignation and announced that he would step down by the end of the year. — Camille A. Aguinaldo

BCDA, Japanese group ink deal with Surbana Jurong for Clark planning

THE BASES Conversion and Development Authority (BCDA) and the Japan Overseas Infrastructure Investment Corp. (JOIN) yesterday signed an agreement with Singapore consultancy firm Surbana Jurong for complementary planning of the New Clark City.

Under the agreement, signed in Cebu on Feb. 12, Surbana Jurong will assist BCDA and JOIN in drafting the development management framework, design standard guidelines and environmental guidelines to complement the master plan of New Clark City.

“Surbana Jurong will also help in utilizing public-private partnerships to entice investors to New Clark City. It will also advise in the implementation plan of pioneer developers in New Clark City such as Filinvest Land, Inc.’s mixed-use industrial real estate developments, and MTD Capital Berhad’s National Government Administrative Center,” BCDA said in a statement.

“It will also establish the framework of a smart city concept that will have fully integrated infrastructure and utilities for power, water, sewerage, information and communication technology (ICT), security, and traffic management,” it added.

BCDA said the collaboration “marks the full implementation” of the plan of New Clark City project, based on the Master Development Plan developed by BCDA and JOIN, in partnership with urban planning and engineering firms AECOM, Nippon Koei, and Philkoei International Incorporated.

The New Clark City in Tarlac will feature mixed-use real estate developments for housing, a national government administrative center, and an agro-industrial park, among others. Phase 1 of the project is expected to be completed in 2022.

Surbana Jurong is a wholly owned company of Temasek Holdings Singapore formed through the merger of renowned urban planning and affordable housing leader Surbana International Consultants, and industrialization corporation Jurong International. It has 50 years of experience in the development of Singapore’s urban landscape.

The agreement signing was led by BCDA President and Chief Executive Officer Vivencio Dizon, JOIN President and Chief Executive Officer Takuma Hatano, and Surbana Jurong Group Chief Executive Officer Wong Heang Fine. — Patrizia Paola C. Marcelo