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Davao firm generates P2.1-B sales from Matina

DAVAO CITY — Escandor Development Corporation (ESDEVCO) has generated P2.1 billion in sales from the expansion of its Matina Enclaves project.

“This year, we sold 30% more of what we have produced last year. We only made P1.6 billion in a span of three years in the industry,” Matina Enclaves project director Gerald Kent Garces said in an interview.

For the expansion of the Matina Enclaves, ESDEVCO is planning to build four condominium towers with 25 floors each on a 1.7-hectare property adjacent to the existing project.

Mr. Garces said the company saw strong sales of the two condominium towers, which were launched earlier this year. The first tower is already sold out, while the other tower has half of its inventory remaining.

He noted ESDEVCO President Glenn Y. Escandor wants the company to turn over the project on time. The company is targeting to complete a condominium tower every year starting 2020 through 2023.

“When G1 (Mr. Escandor) mentioned it delivering it on time, I supposed it entails a lot of commitment and hard work from our group to comply with this. This represents a true commitment of a local developer. In fact, when we started the project, we made it a point not to disappoint the locals, especially our buyers in terms of quality and deliverables,” Mr. Garces said.

The first five medium-rise buildings of Matina Enclaves have already been sold out. One building has been completed, while another one will be turned over in the first quarter of 2018. Construction of the third tower is on-going, and will likely be finished by end-2018. The fourth and fifth towers are targeted to be completed in 2019.

“What does it say about ESDEVCO as a developer? We are very aggressive in one sense because for this particular project, we didn’t only approach things very conservatively through development of the residential. But for this project, we have residential, and house-and-lots that we were able to develop. We turned over one condo building in mid-2016 and we will be able to turn over another one by next year,” Mr. Garces said.

In time for summer next year, Mr. Garces said the company aims to complete the Arcadia, the sports facility of Matina Enclaves. — Maya M. Padillo

Goldman sees cryptocurrencies, credit shadowing robust 2018 US economy

FINANCIAL IMBALANCES including those in credit markets and cryptocurrencies will shadow an otherwise robust 2018 US economy, said Goldman Sachs Group, Inc. economist Jan Hatzius.

Hatzius has already made some predictions for the new year: four Federal Reserve rate hikes, real US gross-domestic product growth quickening to an average of 2.6%, the jobless rate dropping to about 3.5%, and the yield curve not inverting.

In a new report, Hatzius reiterated his expectation for overall economic strength, while flagging some concerns.

“Asset valuations in some areas — especially credit — have risen to high levels by historical standards,” Hatzius said in the “10 Questions for 2018” report issued late Friday. “While we have not seen the type of large credit expansions that would be most worrisome for Fed officials concerned about financial imbalances, there are now some signs of speculative behavior in financial markets, e.g. the cryptocurrency boom.”

Goldman isn’t the only firm to send up a warning flag about cryptocurrencies. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon labeled bitcoin a “ fraud.” Fed Chair Janet Yellen has said it is a “ highly speculative asset,” and Bank of Japan Governor Haruhiko Kuroda said it’s being used for speculation. (Note that Goldman is also reportedly building a cryptocurrency trading desk.)

On the positive side of the economic ledger, according to Hatzius: Single-family housing starts will rise further as the supply-demand imbalance continues to tighten, despite adverse changes from tax legislation signed into law by President Donald Trump.

US wage growth will resume acceleration as statistical distortions fade, and there’s “evidence that upper-income households have been trying to defer income in the hope of lower tax rates,” which could have held back some wage data until now, Hatzius said.

Core inflation will also accelerate from the current 1.5%, Hatzius said. Import prices weighing on the core personal consumption expenditures (PCE) could turn into a boost in the coming year, Also, “base effects” should help — such as when the weak March 2017 reading, which partially reflected mobile phone service-price measurements, drops out.

The Fed won’t adjust its balance-sheet normalization plan either way, and market pricing of the terminal funds rate will rise as the Fed increases rates by more than currently priced, if markets view the additional tightening as appropriate, Hatzius said.

Still, as solid a picture as Goldman’s economist paints of the economic situation, the asset-valuation issue is seen as one to watch. And though the firm doesn’t see continued easing of financial conditions in 2018, it does view that as something that could alter the picture significantly.

Fed officials are “likely to view further easing of financial conditions as increasingly undesirable,” Hatzius said, “and an argument in its own right to normalize policy.”

“The economy is already at or slightly beyond full employment, growth momentum is strong, and a further boost from fiscal policy is already in the offing,” Hatzius said. “Adding more fuel to the fire via yet easier financial conditions looks undesirable.” — Bloomberg

Anticipated fuel price hikes start off new year

OIL COMPANIES will be raising the prices of petroleum products this week at rates generally milder than what consumers feared in view of the implementation of the tax reform.

Retailers will be raising the cost of diesel products by P0.65 per liter and gasoline products by P0.20 per liter. They will also raise the price of kerosene by P0.75 a liter. Most will be increasing prices at 6 a.m. today, Jan. 2.

The increase comes as the Department of Energy (DoE) advised consumers a day before the new year about the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) on petroleum prices.

It reminded the public, in an advisory, that the new excise tax rates do not apply to the old stocks of petroleum products. Excise taxes are levied upon importation and not at the point of sale to the consumers, the DoE said.

The advisory by the DoE’s Oil Industry Management Bureau (OIMB) and the Department of Finance (DoF) came amid warnings in some quarters the start of the year will see a spike in prices of basic goods owing to the impending higher cost of petroleum products.

Under the TRAIN, an additional P3 per liter was to be added to the existing petroleum excise rate of P4.35.

The two agencies pointed out, however, that the retailers were still disposing of the old stocks at the start of the year, and these were acquired at the existing rate.

“The OIMB has issued an advisory to petroleum products stakeholders not to levy new excise tax rates on old stocks, considering that excise taxes are levied upon importation and not at the point of sale to the consumers,” officials said.

But for the value-added tax, new rates under TRAIN that are applicable to consumers become effective on Jan. 1, 2018.

With these rates factored in, the price increases for gasoline and diesel this week were higher than the DoE’s expectation, which it based on last week’s international oil trade, excluding Friday’s trading activities.

The DoE expected gasoline prices to increase by only around P0.15 per liter; diesel by around P0.60 per liter; and kerosene by around P0.55 per liter.

It also reminded retailers that upon a declaration of a state of calamity, the DoE is implementing a price freeze on kerosene and household liquefied petroleum gas in some areas of the country.

Provinces struck by recent disasters, however, remain under a price freeze for kerosene and household LPG for 15 days since these areas were declared under a state of calamity.

Parts of the Visayas and Mindanao were struck by back-to-back tropical storms Urduja and Vinta. — Victor V. Saulon with News5/interaksyon.com

PUV category eyed for ride-sharing companies

By Patrizia P. C. Marcelo
Reporter

THE LAND Transportation Franchising and Regulatory Board (LTFRB) is set to implement new regulations this year for ride-sharing companies, including the creation of a separate public utility vehicle (PUV) category for ride-sharing vehicles and a “transition scheme” for hatchback models and fleets.

LTFRB Chairman Martin B. Delgra III said that for 2018, the LTFRB will resolve two main issues regarding ride-sharing companies or transport network companies (TNCs) Grab Philippines (MyTAXI.PH, Inc.), Uber Philippines (Uber Systems, Inc.), and U-HOP. These are the creation of a “generic” PUV category or pool of vehicles for TNCs, and a transition scheme for what the agency deems as those not qualified to operate as transport network vehicle service (TNVS).

“There are two remaining issues LTFRB is about to resolve and implement at the start of the year 2018. One, creating a denomination of PUVs generic to TNVS from which all TNCs will get their supply,” Mr. Delgra said in a text message.

The agency will also be creating a transition scheme for those who are not considered as TNVS, and these include hatchback models and those which belong to a fleet or more than three vehicles under the same registration.

“Second, a transition scheme for those who are not qualified to be TNVS either because the vehicle is too small like the hatchback model and those whose numbers are more than three and therefore are considered fleet. Fleet management runs counter to the original business model of TNVS which is basically a ride-sharing concept wherein the owner is normally the driver who wants to earn extra income,” Mr. Delgra added.

The year 2017 has been a year of regulation issues between the LTFRB and TNCs.

In July, Uber and Grab were fined P5 million each by the LTFRB for allowing drivers to operate without permits, violating the terms of their accreditation.

In August, the regulator ordered TNCs to cease accepting and accrediting applications. It ordered the suspension of Uber for a month after the agency said the TNC violated the order. The LTFRB lifted the suspension after Uber paid the imposed P190-million fine and showed proof of compensation worth P299.24 million to affected drivers/operators.

In November, the agency said it will require TNVS operators to display stickers on the upper right portion of the windshield/s of their vehicle/s. TNVS drivers will be required to wear and display “in full view of the passenger” an identification card (ID) issued by their respective TNCs.

Drivers will also have a maximum number of seven passengers they can carry in a ride, “but not exceeding the designed seating capacity of the vehicle.”

The LTFRB in October also asked Uber to explain its surcharges. Uber includes a surcharge of P80 when drivers use the Skyway, Magallanes, and C-5 and exit points of Bicutan and Sucat; P100 for exit points of Alabang, Filinvest and Susana Heights; and P60 for areas east of Metro Manila like Antipolo, Rizal.

Uber said the surcharge is for the compensation of drivers for going to “low demand” areas. Mr. Delgra said at the time that the surcharge can be comparable with “contracting” done by taxi drivers, a practice criticized by taxi passengers and also disallowed under LTFRB franchising regulations.

Milan Melindo absorbs sour ending to the year

By Michael Angelo S. Murillo
Senior Reporter

WHAT WAS a solid year for Filipino world boxing champion Milan “El Metodico” Melindo did not have the corresponding ending he was looking for as he absorbed a unanimous decision loss on the final day of 2017, and in the process surrendered his International Boxing Federation (IBF) junior flyweight title.

Fighting in a unification bout against World Boxing Association (WBA) world junior flyweight champion Ryoichi Taguchi in Tokyo, Japan, on Sunday, Cagayan de Oro native Melindo found the going tough as the fight progressed and eventually saw his title slip from his hands as all three judges went with the hometown bet, 117-111, 117-111 and 116-112, when all was said and done.

The defeat was an about-face to how Mr. Melindo started 2017 also in Japan where he claimed the IBF junior flyweight belt by way of an impressive first-round technical knockout of Japanese Akira Yaegashi in May.

He then followed it up by successfully defending the crown here in the country against South African Hekkie Budler by split decision in September before setting forth to make his defense against Mr. Taguchi.

“The Year 2017 has been memorable so far for me as I was able to capture the IBF light flyweight belt and after that successfully defended it. Now my aim is to unify it with the WBA title currently held by Taguchi,” Mr. Melindo said in an online correspondence with BusinessWorld in the run-up to last Sunday’s fight.

Mr. Melindo as expected started out aggressively, taking the fight to his opponent to establish early control.

But Mr. Taguchi would prove himself up to the challenge and aggressiveness of the Filipino fighter, making full use of his length advantage, connecting with solid combinations that flustered Mr. Melindo.

Notwithstanding the cuts he sustained in the fight, Mr. Melindo continued to slug it out and make a go for the win but Mr. Taguchi was not to relent and hung tough in the championship rounds to secure the title unification in front of the hometown crowd.

The win improved Mr. Taguchi to 27 wins with two losses and two draws while Mr. Melindo dropped to 37-3.

NO BOWING OF HEAD
For local combat sports writer and observer Mike Miguel, Mr. Melindo has no reason to bow his head despite the loss as he gave all that he got and fought with so much pride.

“Milan’s camp had the right thing in mind going into the fight which was to utilize the jab against the taller opponent. Unfortunately, he wasn’t able to sustain it the entire fight. Making things worse were the cuts he sustained above his eye that bothered him as the fight progressed. Taguchi capitalized on those openings and took those rounds from Milan,” said Mr. Miguel of RealFight.ph when asked for his post-fight thoughts.

“I’m not surprised with how both fighters performed because they put up a very competitive fight. Both gave their all and they showed that neither of them would give in easily,” he added.

Mr. Miguel went to say that it was a disappointing loss for Mr. Melindo but was quick to point out that definitely it is not the end of his career and he can only be expected to rise up again.

“Is this a disappointing loss for Milan? Of course it is. But I expect him to come back better after this. He has been challenged all his career before becoming a world champion so I expect him to be hungrier than ever once he heals up,” Mr. Miguel said.

Filipino architects’ work recognized as being a sign of the times

SINCE 2008, the World Architecture Festival has inspired and recognized architects and interior design professionals through workshops, conferences, exhibitions, and awards held over three days. One of its programs include recognizing architecture projects from around the world.

In 2017, four projects by Philippine architectural groups — The Chapel of St. Benedict and St. Scholastica by WTA Architecture and Design Studio; The New Supreme Court design concept by Jorge Yulo Architects & Associates; One Ayala by Visionary Architecture; and Project Streetlight Tagpuro by Eriksson Furunes, Leandro V. Locsin Partners (LVLP), and Jago Boase — made the shortlisted out of 400 entries from 68 countries at the festival which was held at the Arena Berlin in Germany on Nov. 15-17, 2017.

The four short-listed projects were subsequently honored as the first batch of Grohe Zeitgeist Design Awardees during an exhibit launch at the Promo Garden of Central Square Mall, BGC in Dec. 18. The Grohe Zeitgeist Design Award is envisioned to give recognition to “Philippine architecture that brings glory to the country” according to a press release.

DESIGNS OF THE TIMES
The German term zeitgeist means “the defining spirit or mood of a particular period of history as shown by the ideas and beliefs of the time,” according to the Oxford Dictionary online.

Grohe, single-brand manufacturer and supplier of sanitary fittings and a founding partner of the World Architecture Festival, spearheaded the Grohe Zeitgeist Design Awards as its way recognizing exceptional works by Filipino architects and designers and their efforts to share it to the international community.

“We coined the term ‘zeitgeist design’ because design is more than just aesthetics. It is a quality feature that stands for the perfect synthesis of form and function as we aim to create design permanence wherein the products would look good as it is now in 10 years,” said Nikki Sevilla, LIXIL Water Technology Asia brand manager, of the award.

A MORE RESILIENT STUDY CENTER
One of the recipients of the Grohe Zeitgeist Design Awards, Project Streetlight Tagpuro, emerged as the winner in two categories: the Civic and Community — Completed Buildings and Small Project of the Year. BusinessWorld spoke to architect Sudar Khadka of LVLP on the sidelines of the exhibit launch about the team’s project, the construction process, and his take on the “spirit of the time” of architecture.

He said that it all started eight years ago when the firm was invited by Streetlight, an NGO providing health and educational support for children of informal settlers, to build a study center in Brgy. Tagpuro in Tacloban. However, the study center was destroyed along with much of the city when Typhoon Haiyan (locally known as Typhoon Yolanda) hit in November 2013.

In an effort create a more resilient facility, Mr. Khadka’s team and architect Alexander Eriksson Furunes collaborated in rebuilding the study center. “Alex is also an architect who is based in Norway and he came to the Philippines. He is involved with the NGO Streetlight because its founder (Erlend Johannesen) is also Norwegian and they knew each other. They did the project (study center) before Yolanda. After Yolanda hit, the project was destroyed so they rebuilt a new facility. [And] we volunteered our services as local architects,” Mr. Khadka told BusinessWorld.

“We used the existing alignment of the trees as a primary circulation access and divided the side between public and private zones. The private zone consists of an orphanage, playground, and study center. The public [zone] consists of a sports ground, an office, and a vocational training center,” Mr. Khadka said of the design and construction during his presentation at the exhibit launch.

Members of Streetlight were involved in the process of building the new facility. Mr. Khadka told BusinessWorld that the biggest challenge of the project was the language barrier between the architects from Manila and the community in Tacloban. Since it was difficult to explain architecture concepts to the locals, Mr. Khadka’s team came up with basic language about building blocks and frames to help bridge the language barrier.

When asked about his idea of the “spirit of the time,” Mr. Khadka replied, “[I think] it’s about trying to rethink and understand what architecture is or what it could be — how it can serve society… [I think] the essential role of an architect is to help people understand what architecture is and how people give meaning to space.”

After three years of designing and construction, the study center was completed in 2016 and is currently operational. — Michelle Anne P. Soliman

Rockets end losing skid after outlasting Lakers

LOS ANGELES — The Houston Rockets take some good news — and perhaps some bad — into 2018 after snapping their five-game National Basketball Association losing streak with a 148-142 double-overtime victory over the Los Angeles Lakers on Sunday.

James Harden scored 40 points but departed in the final minute of regulation with a hamstring injury.

Point guard Chris Paul scored 15 of his 28 points in the two overtime periods to carry Houston to a much-needed win on its home floor.

Paul played a part in four straight baskets in the first extra period, but Lakers forward Brandon Ingram made two free throws with eight-tenths of a second remaining to force the second.

In the second extra session, Paul made six free throws in the final minute and Houston took the lead for good on a second-chance basket by reserve forward P.J. Tucker — his only points in the contest.

Moments later Tucker swatted away a three-point attempt by the Lakers Kyle Kuzma.

Trevor Ariza scored 26 points for Houston, who trailed by as many as 17 points.

The sight of Harden limping off must have tempered the Rockets’ pleasure in snapping their skid.

Houston coach Mike D’Antoni said it was too early to speculate about the severity of Harden’s injury.

“I don’t think we’ll know until (Monday),” D’Antoni said. “I don’t think they’ll be able to assess it until (Monday) morning.”

WILLIAMS FUELS CLIPPERS
In Los Angeles, Lou Williams came off the bench to score 40 points and propel the Clippers to a 106-98 victory over the Charlotte Hornets.

“He was just a nightmare tonight,” Charlotte forward Frank Kaminsky said of Williams. “He started hitting [three-pointers] early, so we start getting up on his screen.

“He starts driving to the rim, and then he’s getting fouled.”

Williams scored 16 points in the first quarter as the Clippers seized the lead. But the Hornets held them to just 13 points in the second period while fashioning a 28-7 scoring run that put Charlotte up by as many as 14.

Charlotte led by 10 at the interval, but Blake Griffin scored 14 of his 25 points in a third quarter dominated 33-14 by Los Angeles.

While the Hornets remained within striking distance in the fourth, they never got the deficit below four points.

The Boston Celtics held off the determined Brooklyn Nets, 108-105, to notch their 30th win of the season.

Trailing by 14 points with 5:59 remaining, the Nets trimmed the deficit to three and had the ball after a timeout with 14.5 seconds left.

Nets guard Spencer Dinwiddie unleashed a long-range effort that was wildly off-target. Boston guard Kyrie Irving seized the rebound and called a timeout.

On the inbounds play, Irving was fouled and made two free throws to seal the win.

Irving, who scored 28 points and grabbed eight rebounds for the Celtics, said the Eastern Conference leaders should have clamped down at the end.

“We’ve just got to close out better,” he said.

Also victorious on Sunday were the Dallas Mavericks who defeated the Thunder, 116-113, in Oklahoma City as well as the Washington Wizards who beat the visiting Chicago Bulls, 114-110, behind John Wall’s 21 points. — AFP

SMC’s Bulacan airport proposal up for ICC review

SAN MIGUEL Corp.’s (SMC) unsolicited proposal for a P700-billion airport in Bulacan province will be up for review on Jan. 11 by the National Economic and Development Authority’s (NEDA) Investment Coordination Committee (ICC).  

NEDA Undersecretary Rolando G. Tungpalan said that the airport will be among priority projects that the agency will be reviewing in the committee’s first meeting this year.

“The San Miguel Airport was discussed in the ICC-Technical Board; we asked DoTr (Department of Transportation) to submit additional information to enable us to validate some of the assumptions the DoTr submitted,” Mr. Tungpalan told reporters last week.

“We have a Jan. 11 ICC-Technical Board before that we would be able to ascertain whether it is ready, whether there is new information that would lead us to sharpen our analysis,” he added.

The airport project’s revenue model will be among the items to be evaluated.

“Certain assumptions need to be amplified, like vital to a decision point. Like revenue sources, for the project as a whole… unsolicited projects assume a certain rate of return. That will be the focus for a Swiss challenge,” Mr. Tungpalan said.

After passing the Technical Board, the proposal will go up the ICC-Cabinet Committee for further deliberation before going through the NEDA Board for the President’s approval.

After approval, the project will then undergo a Swiss challenge, under which competing bids are solicited from other parties who might top the original proposal. The original proponent is then entitled to match competing bids.

SMC has been granted original-proponent status, according to DoTr Secretary Arthur P. Tugade.

The proposed airport in Bulacan involves a 2,500-hectare property with up to six runways, to be configured for about 100 million passengers a year.

Mr. Tungpalan said that if construction started in 2017, the project would have been completed “before the term of the President ends.”

It is one of at least two unsolicited proposals for a new airport outside Metro Manila but within surrounding provinces, as the government looks into establishing another gateway to decongest the Ninoy Aquino International Airport (NAIA).

The other proposal is by All-Asia Resources & Reclamation Corp., the Tieng family’s team-up with Belle Corp., for a $50-billion airport and economic zone at Sangley Point in Cavite — which has yet to complete feasibility studies for ICC to review. — Elijah Joseph C. Tubayan

Star Wars: The Last Jedi tops $1 billion worldwide

LOS ANGELES — Disney-Lucasfilm’s Star Wars: The Last Jedi has cleared the $1-billion milestone in worldwide grosses in less than three weeks.

Star Wars: The Last Jedi pulled in $120.4 million globally on the New Year’s Eve weekend with $52.4 million at 4,232 domestic venues and $68 million internationally during the Friday-Sunday period.

The Last Jedi is now the eighth highest-grossing domestic movie of all time with $517.1 million — only $15 million behind last year’s Rogue One: A Star Wars Story in the seventh spot. On the worldwide chart, it’s now 24th with $1.04 billion, edging Universal-Illumination’s Despicable Me 3. The tentpole’s international total, currently at $523.2 million, will see a significant jolt when it opens on Jan. 5 in China, its final market.

Star Wars: The Last Jedi has also topped Disney’s Beauty and the Beast, which grossed $504 million in North America, for the top spot among 2017 releases domestically. It’s the fourth 2017 title to go past $1 billion worldwide, along with Beauty and the Beast at $1.26 billion, The Fate of the Furious at $1.24 billion and Despicable Me 3 at $1.03 billion.

The Last Jedi is also winning the domestic weekend box-office crown for the third time with $52.4 million, edging Sony’s Jumanji: Welcome to the Jungle, which took in $50.6 million at 3,765 locations for the Friday-Sunday. However, Sony’s projection showed the Jumanji sequel grossing $16.5 million on New Year’s Day on Monday — well above Disney’s forecast of $13.2 million for The Last Jedi. Should those numbers hold, Jumanji would edge Jedi over the four-day period with $67 million, winning by $1.4 million.

Jumanji has been The Last Jedi’s biggest competitor by far since it opened on Dec. 20. The action-comedy should wind up with an 11-day domestic total of $186.3 million by the end of Monday. The action-comedy, starring Dwayne Johnson and Kevin Hart, has a $90-million budget. It’s also performed impressively in international markets with $107 million through Dec. 28.

Jedi and Jumanji helped lift the entire North American box office for 2017 to $11.12 billion, down 2.3% from last year’s $11.38 billion and off slightly from 2015’s $11.14 billion, according to comScore. The gap for 2017 had been more than 6% at the end of the worst summer in a decade but performances by It, Thor: Ragnarok, Justice League, Jedi, and Jumanji closed most of that margin.

“With another $11 billion plus year on the books, the industry looks ahead to awards season and a 2018 packed with blockbuster titles and a hope for a year slightly less volatile than 2017,” said Paul Dergarabedian, senior media analyst with comScore.

Universal’s Pitch Perfect 3 led the rest of weekend’s domestic pack with a projected $22.7 million at 3,468 locations for Friday-Monday, lifting its 11-day total to $69.2 million. The comedy threequel, starring Anna Kendrick and Rebel Wilson, took in $13.1 million this weekend from 34 international markets for a foreign total of $28.6 million.

Hugh Jackman’s musical drama The Greatest Showman is finishing a close fourth with $20.3 million at 3,316 theaters forecasted for the four days. The Fox-Chernin Entertainment title showed the biggest gain in the top 10 movies from the Christmas Eve weekend with an impressive 73% surge. The domestic total should hit $53.8 million through Monday.

Fox’s second weekend of Ferdinand — the only film to open on the same weekend as The Last Jedi — followed in fifth with $15.1 million at 3,337 North American venues, giving the animated comedy $57.3 million in 18 days. Disney-Pixar’s seventh weekend of Coco finished sixth with a projected $8.8 million at 2,845 sites for a domestic total of $181.1 million and $539 million worldwide.

Rounding out the top 10 were: Coco ($8.8 million); Darkest Hour ($7.4 million); All the Money in the World ($7.2 million); Downsizing ($6.0 million); and, Father Figures ($5.5 million). — Reuters/AFP

CAVITEx toll fee hike proposed

CAVITEX INFRASTRUCTURE Corp. (CIC) and the Philippine Reclamation Authority (PRA) have proposed a toll fee increase for the R-1 Expressway and R-1 Expressway Extension of the Manila-Cavite Expressway (Cavitex).

In a petition to the Toll Regulatory Board (TRB) dated Sept. 27, 2017, CIC and PRA, manager and operator of Cavitex, respectively, proposed toll fees for the R-1 Expressway of P31 (from P24) for Class 1 vehicles, P63 (from P48) for Class 2 vehicles, and P94 (from P72) for Class 3 vehicles.

For the R-1 Expressway Extension, the proposed toll fees are P95 (from P64) for Class 1 vehicles, P189 (from 129) for Class 2 vehicles, and P284 (from P194 for Class 3 vehicles.

All proposed new fees are inclusive of value-added tax (VAT).

“…The periodic adjustment to the Agreed Toll Rates is necessary to ensure the sustainability and viability of the MCTEP [Manila-Cavite Toll Expressway Project] and its expressways, which in turn redounds to the benefit, safety, and convenience of the public,” the petition read.

The current toll fees for the R-1 Expressway were in effect since January 2009, and in September 2011 and September 2014, CIC and PRA submitted petitions for increases that are yet unresolved.

For the R-1 Expressway Extension, the fees were in effect since May 2011 and petitions (also unresolved) were filed in September 2013 and September 2016.

The petitioners had requested the implementation of the new fees by January 1 this year, as well as provisional increase if this is not granted on the requested date. There has been no official approval from TRB as of reporting.

Metro Pacific Investments Corp. (MPIC) through CIC in April 2016 issued a notice of arbitration and statement of claim to the government to obtain P877 million in compensation for what it says is inaction by the government over toll fee hike petitions due since 2012. Adjustments were due since Jan. 1, 2012; Jan. 1, 2014; and Jan. 1, 2015.

Last June, Romulo S. Quimbo, Jr., senior vice-president for Legal, Regulatory Affairs and Government Relations of Manila North Tollways Corp., said MPIC is open to a possible compromise with the government to resolve the dispute over toll fee increases covering Cavitex and the North Luzon Expressway (NLEx).

MPIC also filed in April 2016, through NLEX Corp. a notice of arbitration for around P3 billion in compensation for toll rate adjustments due to take effect on NLEx in both January 2013 and January 2015.

In November, the TRB approved a provisional fare increase of P0.25 for NLEx, or P18 for 72 kilometers, subject to VAT, in response to a petition by Metro Pacific Tollways Corp. to implement a toll increase of P0.27, intended to recover its investment in expanding the expressway.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Raiders fire Jack Del Rio

LOS ANGELES — The Oakland Raiders fired coach Jack Del Rio Sunday after a 30-10 loss to the Los Angeles Chargers that capped a disappointing 6-10 NFL season.

“I spoke to [team owner] Mark Davis after the game, and Mark let me know that he’s not going to be bringing me back,” Del Rio told reporters at his postgame press conference.

“He told me he loved me and appreciated all that I did to kind of get this program going in the right direction, but that he felt the need to change.”

Davis later issued a press release thanking Del Rio for his work with the club.

“We appreciate Jack’s effort in building the foundation of this team for the future,” Davis said.

Last year the Raiders reached the playoffs for the first time in more than a decade. They opened their 2017 campaign with two wins, but they slumped late, losing their last four games.

Del Rio, who received a four-year contract extension from the Raiders in February, posted an 18-13 mark with the franchise, going 7-9 and 12-4 his first two seasons.

Meanwhile, a season-ending win on Sunday wasn’t enough to save Chuck Pagano’s job as coach of the Indianapolis Colts, who sacked him shortly after a 22-13 victory over Houston capped their 4-12 NFL season.

From 2012-2014, Pagano led the team to three consecutive 11-5 seasons and playoff appearances, reaching the AFC Championship Game in 2014.

Pagano coached 10 Pro Bowl players during his tenure with the Colts.

But the Colts have now failed to make the playoffs for three straight seasons.

This year the team struggled without star quarterback Andrew Luck, who hasn’t played because of a shoulder injury.

They endured their worst campaign since going 2-14 in 2011. — AFP

Police investigator: Five fire-safety officials relieved over Davao mall fire

FIVE fire officials being questioned over a blaze that led to the deaths of 37 staff at the southern Philippines offices of an American market research firm have been relieved of their duties, a government investigator said on Monday.

The Dec. 23 blaze in Davao City broke out at a furniture and fabric store on the third level of a mall, the New City Commercial Center (NCCC), and then engulfed the offices of the US firm, Research Now SSI, on the fourth floor of the same building in choking smoke.

The only person among the 38 killed in the fire who did not work at the firm was a mall security officer. More than 100 SSI employees who were on duty that day managed to escape, of whom six were injured.

Initial findings from a probe showed Leo Lauzon, fire safety inspector of SSI Office, Joel Quizmundo, fire safety inspector of the NCCC Mall, Roger Dumag, chief of the fire safety section of SIR fire station, and Renero Jimenez, station commander of SIR fire station have “some liabilities,” said Senior Superintendent Jerry Candido, one of the lead investigators.

SIR fire station has jurisdiction over the NCCC mall.

All four were relieved of their duties, Mr. Candido told Reuters over phone. A fifth official, Honee Fritz Alagano — Davao City fire marshal and spokeswoman for the Bureau of Fire Protection in the city — has also been relieved of command, he added.

“They were relieved because they are the subject of an investigation and of course to avoid influencing any witnesses in the investigation and possible tampering of documents within their custody,” said Mr. Candido, who is also a director of logistics at the Philippines’ Bureau of Fire Protection.

Mr. Candido earlier said there were indications of fire safety lapses that may have contributed to the tragedy.

The NCCC mall had been issued a fire safety inspection certificate in April 2017, a requirement for its yearly business permit renewal, Mr. Candido said, adding investigators would look into whether any questions were raised when it was granted the certificate last year and in previous years.

“When we conducted a verification inspection (after the fire), we found out there exists several violations of the fire code in the building,” he said. There are problems with “exits, sprinkler systems and alarm systems.”

Darry Gallego, assistant vice-president of corporate services at the NCCC, has said the mall could not comment on an ongoing investigation, but stressed that safety requirements had been met, including having a sprinkler system.

Barbara Palmer, SSI’s senior vice-president for global marketing, said in an e-mail response to a series of Reuters’ questions about fire safety at its Davao offices that the firm could not address them specifically while the probe was ongoing. — Reuters

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