Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 12743

ICTSI to use retained earnings for 2018 capex

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said on Friday it will use part of its unappropriated retained earnings for additional capital expenditures in 2018, as the port giant ramps up its expansion at home and abroad.

“On 29 Dec. 2017, the Board of Directors of ICTSI approved and authorized the appropriation of a portion of ICTSI’s unappropriated retained earnings in the amount of $25 million for additional working capital requirements of its continuing domestic and foreign expansion projects in 2018,” the listed port giant told the stock exchange.

Among the projects identified by ICTSI are Manila International Container Terminal’s (MICT) construction of Berth 7 at North Harbor, Manila; and Contecon Manzanillo S.A. de C.V. expansion of the Port of Manzanillo in Mexico.

ICTSI is also expanding its terminal in Puerto Cortes in Honduras, as well as its container facilities in Port of Umm Qasr in Iraq. The company earlier said it will spend $100 million for the expansion of the Basra Gateway Terminal (BGT) in North Port, Umm Qasr.

The port operator, owned by tycoon Enrique K. Razon, Jr., is continuing its expansion by tapping into emerging economies. Earlier this year, ICTSI said it has secured contracts to operate the ports in Montukea and Lae in Papua New Guinea.

For the first nine months of the year, ICTSI’s net income attributable to equity holders stood at $149.3 million, up 5% from the $141.9 million earned in the same period last year.

Shares in ICTSI slipped 0.38% to P105.50 each on Friday.

Agriculture trade deficit narrows in Q3

By Mark T. Amoguis, Researcher

THE TRADE DEFICIT in agriculture commodities narrowed in the third quarter, the Philippine Statistics Authority (PSA) said on Friday.

Data from the PSA showed the country shipped out $1.605 billion worth of agricultural goods in the third quarter of the year, a 14.34% increase from the $1.403 billion in the same three months last year.

Meanwhile, the country shipped out $2.845 billion worth of farm products in the July-September period, a 2.49% uptick from $2.776 billion last year.

As a result, the agriculture trade deficit was at $1.240 billion in the three months ended September, down 9.63% from the $1.372-billion shortfall a year ago.

Despite the deficit, agriculture accounted for 11.41% or $4.450 billion of the country’s total trade worth $39.006 billion in the third quarter.

Among its major trading partners, the Philippines incurred its biggest agriculture shortfall with the Association of Southeast Asian Nations at $747.61 million, followed by the United States of America ($270.77 million) and Australia ($163.92 million).

On the other hand, trade in farm goods with Japan and the European Union were in surplus by $170.68 million and $27.77 million, respectively.

Animal or vegetable fats and oils were the top agricultural export at $433.77 million or 27.03% of the total goods shipped.

Other top farm goods exports were edible fruit and nuts ($366.13 million); preparations of vegetables, fruit, nuts or other parts of plants ($197.43 million); fish and crustaceans ($135.90 million); preparations of meat, of fish or of crustaceans ($111.77 million); and tobacco and manufactured tobacco substitutes ($82.21 million).

The country’s top farm import, meanwhile, were cereals at $376.03 million, followed by miscellaneous edible preparations ($351.78 million); meat and edible meat offal ($321.67 million); residues and waste from the food industries ($301.25 million); and animal or vegetable fats and oils ($283.32 million).

PSEi notches new peak before 2017 ends

By Arra B. Francia
Reporter

REKINDLED investor confidence over the strength of the Philippine economy, especially in the wake of the just-enacted tax reform, propelled the Philippine Stock Exchange index (PSEi) yesterday to notch its 13th record-high finish for the year.

The 30-member bellwether index closed 8,535.09, 44.18 points or 0.52% higher than Wednesday and beating its previous record of 8,523.07 logged on November 6.

The market managed to record an intraday high of 8,571.46, though it was still lower than the 8,605.15 the PSEi logged last November 3.

PSEi was now 24.8% higher year to date.

“(PSEi’s fresh peak was due to) confidence in the Philippine economy supported by a smart new tax regime, continuous inflow of investors, not only for stocks and bonds, but also for real estate, continuous investment in BPOs (business process outsourcing) and hotels, which are a form of dollar revenues for the Philippines,” First Metro Securities Brokerage Corp. Market Education Consultant Alexander N.N. Gilles said in a telephone interview.

“Tapos na ‘yung Marawi problem (has been resolved),” he added, referring to the five-month battle government forces waged to retake the central Mindanao city from Islamic State-inspired militants starting May 23.

President Rodrigo R. Duterte signed into law last Dec. 19 the first of up to five planned tax reform packages designed to help finance the government’s P8.44-trillion “Build, Build, Build” infrastructure development program until 2022, when Mr. Duterte ends his six-year term.

Thursday also saw foreign investors remaining predominantly buyers for a fourth straight trading day. Yesterday’s session was marked by P1.245 billion in net foreign buying, the second-biggest amount in that period after the P1.856 billion recorded last Dec. 21 — two days after tax reform enactment.

“Kahit na may (Even if there is a) political problem, political concerns, the economy still grows. So ‘yun ang hinahanap ng (that is what) foreign investor(s watch out for: that) na baka naman this political problem might harm economic development,” Mr. Gilles said.

“Pero hindi pala (It turns out that is not the case). So Duterte’s bad mouth doesn’t have repercussions. Life goes on and the economy continues to grow.”

IB Gimenez Securities, Inc. Head of Research Joylin F. Telagen meanwhile attributed the gains to investors repositioning their stocks ahead of the year’s last trading day. “I think this was due to investors repositioning of stocks ahead of year-end window dressing,” Ms. Telagen said.

While the index closed at an all-time high, RCBC Securities, Inc. equity analyst Jeffrey Lucero said that window-dressing may not be enough to push the market to pierce 8,600 on the last trading day of 2017.

All sectoral indices were up, save for the holding firms sectoral index that dipped 0.16% to 8,606.49. The financials as well as mining and oil sub-indices led yesterday’s gains, jumping 1.29% to 2,202.75 and 1.1% to 11,510.51, respectively.

Analysts are projecting that the index could rally beyond the 9,000 mark by end-2018, fueled by continued strong economic fundamentals as well as the steady earnings growth of listed companies.

BSP blames machine error for faceless bills

By Melissa Luz T. Lopez
Senior Reporter

A MACHINE ERROR led to the release of “misprinted” P100 bills that ended up in an automated teller machine (ATM) of a bank, the Bangko Sentral ng Pilipinas (BSP) announced yesterday.

BSP Managing Director Carlyn A. Pangilinan said a mechanical error in one of the central bank’s note-printing machines led to the circulation of 33 pieces of faceless bills, which missed several features of the banknote including the portrait of former President Manuel A. Roxas.

The defective notes accounted for 0.00009% of total P100 bills in circulation.

The BSP was made aware of the case after Facebook user Earla Anne Yehey posted photos of these defective bills online, which she said she got from a Bank of the Philippine Islands (BPI) ATM.

Ms. Pangilinan described this as an “isolated case,” adding that the machine error has already been resolved. Initial indications point to a possible glitch in a printer’s roller mechanism that led to portions of banknote sheets lacking some aspects of the design.

“There is no security breach here… We have to do some improvement in our processes and we have to talk to the supplier of the machines to prevent a repeat of this situation,” Ms. Pangilinan said during a press briefing.

The Philippine central bank is upgrading its note printing and coin minting systems, with a new set of printers acquired just last month, Ms. Pangilinan added.

Last week, another bank also got hold of misprinted P50 bills, but these were withheld by the lender.

Ms. Pangilinan said the central bank was reviewing its printing and quality control measures, even as it recently shifted to using machine checkpoints from its past practice of employing manual checkers.

Ms. Pangilinan said the defective bills ended up in the hands of the public as BPI decided to directly load the cash it got from the central bank to their ATMs. The central bank has recovered 19 of the “faceless” bills through BPI.

While the defective bills are technically legal tender, the central bank advised consumers against using them for day-to-day transactions as these do not carry all the security features against counterfeiting.

Those who end up with these bills can bring them to the BSP and have these replaced at par value.

This is not the first time that the central bank printed defective notes.

A number of peso notes printed and circulated in 2005 were named “Arrovo” bills since they misspelled the surname of then-president Gloria Macapagal-Arroyo. These were eventually replaced with notes bearing the correct spelling. But some consumers kept them as collectible items and auctioned them off on sites like EBay.

DEMONETIZED
In the same briefing yesterday, the BSP also reminded the public of today’s deadline to replace bills from the 1985 design series, saying that there will be no extension.

The BSP previously set a Dec. 31, 2016 deadline for the public to get banknotes of the old design before banks and central bank offices, but granted extensions thrice that led to a final call last Sept. 30.

The old bills could not be used for day-to-day transactions from Jan. 1, 2016, as these have lost their value since then.

The BSP has the sole authority to issue money for general use. Central banks regularly change the design of bills and coins to update security standards against counterfeiting. Republic Act No. 7653, or the New Central Bank Act, provides that the BSP can replace banknotes which have been in use for over five years.

The central bank also sought to address issues raised against the silver five-peso coins which it released starting this month amid criticism that the new design was similar to that of the one-peso coin.

The new coin carries the face of Andres Bonifacio on one side and a stylized rendition of the Tayabak plant and the BSP logo on the other, replacing former President and General Emilio Aguinaldo.

Ms. Pangilinan said the P5 coin is heavier, thicker and slightly bigger than the P1 coin. Another way to distinguish between the two coins is that the P5 coin has a smooth edge, while the P1 coin has ridges. “The BSP is confident that in time and with increased usage, the features of the P5 New Generation Currency coin and other denominations… would gain greater familiarity,” she said.

The coins with the new designs will be released for public use next month.

Self-healing glass: cracking discovery from Japan

TOKYO — A Japanese researcher has developed — by accident — a new type of glass that can be repaired simply by pressing it back together after it cracks.

The discovery opens the way for super-durable glass that could triple the lifespan of everyday products like car windows, construction materials, fish tanks and even toilet seats.

Yu Yanagisawa, a chemistry researcher at the University of Tokyo, made the breakthrough by chance while investigating adhesives that can be used on wet surfaces.

Does this mean you will soon be able to repair those cracks in your smartphone with a quick press of the fingers? Or surreptitiously piece together a shattered beer glass dropped after one pint too many?

Well, not quite.

Not now and in fact, not in the near future.

But it does open a window of opportunity for researchers to explore ways to make more durable, lightweight, glass-like items, like car windows.

In a lab demonstration for AFP, Mr. Yanagisawa broke a glass sample into two pieces.

He then held the cross sections of the two pieces together for about 30 seconds until the glass repaired itself, almost resembling its original form.

To demonstrate its strength, he then hung a nearly full bottle of water from the piece of glass — and it stayed intact.

The organic glass — made of a substance called polyether thioureas — is closer to acrylic than mineral glass, which is used for tableware and smartphone screens.

Other scientists have demonstrated similar properties by using rubber or gel materials, but Mr. Yanagisawa was the first to demonstrate the self-healing concept with glass.

The secret lies in the thiourea, which uses hydrogen bonding to make the edges of the shattered glass self-adhesive, according to Mr. Yanagisawa’s study.

But what use is all this if it cannot produce a self-healing smartphone screen?

“It is not realistically about fixing what is broken, more about making longer-lasting resin glass,” Mr. Yanagisawa told AFP.

Glass products can fracture after years of use due to physical stress and fatigue.

“When a material breaks, it has already had many tiny scars that have accumulated to result in major destruction,” Mr. Yanagisawa said.

“What this study showed was a path toward making a safe and long-lasting resin glass,” which is used in a wide range of everyday items.

“We may be able to double or triple the lifespan of something that currently lasts for 10 or 20 years,” he said. — AFP

Gov’t targets 2-4% headline inflation until 2020

By Melissa Luz T. Lopez,
Senior Reporter

THE GOVERNMENT has kept its 2-4% inflation target until 2020, with the central bank seeing that price increases will remain “manageable” despite the expected impact of tax reform.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said the inter-agency Development Budget Coordination Committee (DBCC) has kept the target band for annual inflation for the next two years.

“The current manageable inflation environment could be sustained over the medium term. Inflation projections and expectations continue to indicate that inflation could settle within the current inflation target, although there are upside risks to the inflation outlook,” the BSP said.

The DBCC conducted its second review for the year on Dec. 22, where economic managers decided to keep the annual economic growth target at 7-8% from 2018 to 2022.

Inflation has logged 3.2% from January to November this year, well within the target range and rising from the 1.8% average in 2016.

Price stability is one of the central bank’s key mandates, with inflation dynamics standing as its main consideration in setting monetary policy.

The BSP has kept its policy stance since a hike in September 2014. Borrowing rates currently range between 2.5-3.5%, following procedural adjustments which took effect in June 2016 following the shift to an interest rate corridor.

“Expectations of healthy economic growth alongside the tax reform program would create demand-side impetus to inflation. Nonetheless, the favorable effect of sustained investment spending by the national government on the economy’s productive capacity would help temper inflation pressures,” the central bank said.

President Rodrigo R. Duterte on Dec. 19 signed the first Tax Reform for Acceleration and Inclusion (TRAIN) package as Republic Act 10963.

Split into several tranches, the entire tax reform program is designed to shift the burden to those who can afford to pay more, while raising additional revenues that will help finance the government’s ambitious P8.44-trillion infrastructure development effort until 2022. 

The measure reduces personal income taxes for those earning below P2 million, alongside a simpler system for computing donor and estate taxes.

Foregone revenues will be offset by the removal of some exemptions to value-added tax; increased tax rates for fuel, automobiles, tobacco, coal, minerals, documentary stamps, foreign currency deposit units, capital gains for stocks not in the stock exchange, and stock transactions; and new taxes for sugar-sweetened drinks and cosmetic enhancements.

The TRAIN law is expected to raise P90 billion in additional revenues.

Meanwhile, the inflationary impact of potential increases in international commodity prices are also seen “moderate,” given lower pass-through costs on basic goods.

The BSP sees inflation averaging at 3.4% in 2018, slightly higher than the 3.2% expected this year. By 2019, inflation is expected to average at 3.2%.

The central bank has acknowledged that the pace of price increases is likely to go faster next year, coupled with rising global crude costs. Still, BSP Deputy Governor Diwa C. Guinigundo said that higher oil prices — which have a huge bearing on the consumer basket — would “not be enough to upset inflation” beyond 4%.

Higher duties to be imposed under the tax reform package would likewise have a “transitory” impact on consumer prices, Mr. Guinigundo added.

Villar group sets P175-B capex for next 3 years

THE VILLAR GROUP of companies is accelerating its capital spending to P175 billion in the next three years, targeting to boost the growth of its businesses in real estate, leasing, retail, hospitality, and education.

The massive capital expenditure budget will support tycoon Manuel B. Villar, Jr.’s vision of establishing his property business as one of the major players by 2020, in addition to building his retail brands.

Companies under the Villar group include Vista Land & Lifescapes, Inc. (VLL), Starmalls, Inc., Golden Haven, Inc., all three of which are listed at the Philippine Stock Exchange, and All Value Holdings, Corp., which serves as the holding firm for his retail businesses.

“We are very bullish in the coming year as we take advantage of the various collaborations among our companies in addition to the sustained sound Philippine macroeconomic fundamentals,” Mr. Villar told reporters in Las Piñas last Dec. 19.

Around 60% of the capex will fund the company’s real estate expansion, while the rest will go to the leasing and retail businesses. Of the P175 billion capex, Mr. Villar said P50 billion will be spent in 2018.

For VLL, Mr. Villar said the company will push expansion to the provinces as he expects a “reverse migration” phenomenon given the government’s plans to develop areas outside Metro Manila. This expansion will help boost profit and revenues grow by 12-15% annually.

To date, VLL is present in 132 cities and municipalities and 46 provinces around the Philippines.

To complement VLL’s residential business, the listed firm has committed to expand the Villar-led Georgia Academy, now with three branches, to 13 next year.

The property company will also be developing six hotels in the next three years, five of which will carry the Hotel Mella brand. Mr. Villar identified Boracay, Tagaytay, Bataan, and Cebu as the locations for the hotel. A branded hotel to be developed with a partner is also set to rise in Evia, VLL’s property in Las Piñas.

For Golden Haven, the company plans to acquire more land for memorial parks. At present, it has 14 memorial parks — a figure which it hopes to double in the next three years.

“We are going big in memorial parks. We aim to have one in every city where we have Camella Homes,” Mr. Villar said, referring to one of the residential brands under VLL.

Recently, Golden Haven diversified into the mass housing sector by taking over the operations of another Villar-led company, Bria Homes, Inc. The P3.01-billion acquisition will mark the company’s entry into housing development.

Meanwhile, Starmalls will be increasing its number of malls to 60 in the next three years, from the current 22.

Mr. Villar is bullish on his retail business, which comprises home improvement chain AllHome, All Day Supermarket, All Day Convenience Store, Coffee Project, and bakery Bake My Day.

The Villar group will be increasing the number of All Day Supermarket branches to 26 in 2018, from the current count of 13. The public will also see a total of 100 branches of All Day Convenience stores next year, from just 72 in 2017. Around 10 to 12 AllHome depot stores will likewise be added in 2018, for a total of 26 to 28.

Coffee Project, meanwhile, will be present in around 45 to 50 locations by next year.

“There are now 22 branches of Coffee Project. Next year, we hope to make it to 45 to 50. So we will add 23 to 28 more. We now have 15 to 20 identified locations, including Davao, Cagayan de Oro, Iloilo, and Naga,” Mr. Villar said. — Arra B. Francia

DICT gearing up for resistance to frequency redistribution

By Patrizia Paola C. Marcelo,
Reporter

THE Department of Information and Communications Technology (DICT) said it is studying ways to make the allocation of telecommunications spectrum “more equitable,” and may resort to redistribution.

DICT officer-in-charge and Undersecretary Eliseo M. Rio, Jr. said that the agency will study best practices worldwide for allocating frequencies, the bulk of which are currently controlled by incumbents PLDT, Inc. and Globe Telecom, Inc.

“We will come up with a more equitable allocation of frequencies, based on best practices of other countries like refarming and will be the subject of public hearings before being finalized,” Mr. Rio said in a text message.

PLDT and Globe added to their advantage last year by acquiring the telco assets of San Miguel Corp. (SMC).

The acquisitions include rights to the coveted 700 megahertz (MHz) frequency band.

The Philippine Competition Commission (PCC) estimates that only 12.8% of the spectrum will be available for a potential third player.

Refarming may open the government to legal action and Mr. Rio said the government needs to plan for the long term in the event the incumbents resist refarming.

The DICT is looking at allocating the remaining uncommitted frequencies to a third player, which could possibly be structured as a consortium.

Mr. Rio told reporters last week that the DICT does not favor distributing the remaining frequencies to many players, which might lead to buyouts by PLDT and Globe.

Mr. Rio said in a social media post last week that no matter how “financially and technically robust” the third player may be, the frequencies available may not leave the third player in a position to compete.

Possible areas in which the third player can compete include building cellphone towers for lease to other companies including the incumbents, and fixed-line Internet service to underserved areas.

Malacañang has said that China Telecom Corp. Ltd. has been nominated by the Chinese government to invest in the Philippines. It has yet to choose a local partner, as the law provides for only 40% maximum foreign ownership in telecommunications.

Philippine Telegraph and Telephone Corp. (PT&T) is set to roll out a nationwide broadband network, as well as mobile service, in the next few years, which is seen as a bid to position itself as a local partner for the third player.

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

Higher stock tax seen to crimp PSE growth

By Arra B. Francia, Reporter

FUND MANAGERS are worried the hike in stock transaction tax (STT), which will be implemented on Jan. 1, may hamper the Philippine Stock Exchange’s (PSE) growth.

The increase in STT is part of the first package of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which takes effect next week. The STT will increase by 20% to 60 basis points (bps), or six-tenths of 1%, from 50 bps of the gross selling price or gross value in money of the shares of stock sold, bartered, exchanged, or otherwise disposed.

“The STT applies to every sale, barter, exchange or other disposition of shares of stock listed and traded through a local stock exchange, other than sale by a dealer in securities, and shall be paid by the seller or transferor,” the PSE said in a memorandum dated Dec. 26.

While the stock exchange is seen to generate an additional P1.7 billion in revenues annually, the higher STT may turn off investors.

“My initial thoughts are that it will slightly reduce trading volume. It increases both risk and friction cost,” First Metro Asset Management, Inc. President Augusto M. Cosio said in a text message.

PSE President Ramon S. Monzon earlier this month said the higher STT will affect the competitiveness of the Philippine stock market.

“What we have to understand is the PSE does not operate in the local market alone. We really compete with the other exchanges, Thailand, Malaysia, Indonesia, Vietnam. We compete for the money of the foreign investors. So when you increase STT, you are increasing the friction cost. As it is right now, before the increase that 50bps STT is already one of the highest in the region,” Mr. Monzon said.

The PSE currently has the highest STT among regional markets, followed by the Burma Malaysia Exchange with a tax of 30bps of the transaction value. Meanwhile, the Hong Kong Exchange charges a stamp duty of 10bps of the transaction value, with the Singapore exchange does not have a stock transaction tax.

“It might hamper capital market growth. I would have preferred they increased taxes on unlisted securities,” BDO Capital and Investment Corp. President Eduardo V. Francisco said in a text message.

For his part, Summit Securities, Inc. President said while the market can bear the STT increase, it would have been better to maintain it at its current level.

“I don’t think it’s something big. If it’s something big, if it’s 0.06% then I think we can bear it… But I just wish they can maintain it and push for more volume instead,” Mr. Liu said.

Timson Securities, Inc. Marketing Head Mark Levinson R. Koa noted the move can also deter active day and swing traders’ from trading more, since the higher taxes would make it harder to generate profits.

“To combat the possible negative effects of the higher taxes, PSE can finally launch short-selling and other derivative products in 2018. These new and exciting investment options might just be the key to invite more trading participants into our local stock market,” Mr. Koa said in a text message.

Mr. Monzon earlier short selling will be one of the initiatives they are planning to launch in 2018 to entice more foreign investors into the PSE.

“We are really embarking on a lot of new initiatives that will make it more attractive to the foreign investors. We’ll try to launch short selling, and the securities borrowing and lending for the first quarter next year. We plan to launch new indices… That would make out market more attractive to foreign investors,” the PSE president explained.

Peso returns to P49:$1 level on tax concerns

THE PESO grew stronger against the dollar on Thursday, returning to the P49 level for the first time in more than six months, as market players weigh the negative effects of the US tax overhaul on large financial institutions.

The local currency closed the session at P49.98 versus the greenback, gaining six centavos from its P50.04-per-dollar finish on Wednesday.

Yesterday’s finish was also the peso’s best performance since it closed at P49.91-to-the-dollar last June 19.

The local unit traded stronger the whole day, opening at P49.94 versus the dollar. Its intraday low stood at P50.05, while its best showing was at P49.85 against the greenback.

Dollars traded yesterday surged to $625.3 million from the $523.1 million that changed hands on Wednesday.

A trader interviewed yesterday said the peso climbed mainly on the back of rising concerns over the US tax reform law signed last week.

“The continuous strength of the peso is driven by outlook on the unprecedented impact of the US tax reform to large financial institutions, primarily due to substantial adjustments to these firms’ deferred tax assets which are seen to affect income statements negatively,” a trader said in an e-mail.

On Wednesday, Barclays said it expects a $1.3-billion write-down on its annual post-tax profits, forcing the lender to reduce its deferred tax assets value. The British bank is also expecting its common equity Tier 1 capital ratio to go down by 20 basis points.

Meanwhile, another banker suspected the Bangko Sentral ng Pilipinas of buying dollars in the afternoon trading, prompting the peso to hit its P50.05 low.

“What we noticed is some late session buying from agent banks, and this sparked a rally in the last 10 minutes before the closing,” another trader said.

Continued offshore investor interest and sustained remittance inflows even after Christmas also boosted the peso.

For today, one trader said the peso may play within P49.80 to P50.10 against the dollar, while the other trader sees the pair moving within a slightly slimmer range of P49.85 to P50.10.

Another trader gave a higher projection of P49.80 to P50.05. “It is expected that the local currency will appreciate [today] due to possible window-dressing of local traders as this year’s trading come to a close.” — Karl Angelo N. Vidal

Maynilad allocates P375 million for Angat-Umiray tunnel rehabilitation

MAYNILAD Water Services, Inc. is contributing P375 million or about half of the total investments required to rehabilitate the Angat-Umiray transbasin tunnel, one of the most important water supply systems for Metro Manila.

“Through sustained investments in water infrastructure enhancements, we can continue to meet the drinking water needs of an ever-growing population,” Ramoncito S. Fernandez, president and chief executive officer of Maynilad, said in a statement.

The transbasin tunnel in General Nakar, Quezon province is one of the common purpose facilities of state agency Metropolitan Waterworks and Sewerage System (MWSS). 

“We fully support the MWSS in this endeavor,” Mr. Fernandez said.

Maynilad, the largest private water concessionaire in the Philippines in terms of customer base, is an agent and contractor of the MWSS for the west zone of the greater Manila concession area.

The P749-million rehabilitation project will cover the 13.4 transbasin tunnel that is used to convey raw water from the Umiray River to Angat River. 

Maynilad said the tunnel is crucial to the water supply system of Metro Manila and nearby provinces, serving 90% of the population or about 16 million people.

“Among the rehabilitation works and upgrades that will be implemented is the retrofitting of intake/diversionary structures to withstand the effects of inclement weather such as severe flooding,” Maynilad said.

The MWSS project would add new features to the transbasin tunnel “for better resiliency, such as additional slope protection, revetment walls, and steel sheet piles along the weir,” the company said.

The tunnel’s rehabilitation is scheduled to be finished by the fourth quarter of 2018. It will help to secure the water supply of Metro Manila residents “in the face of supply uncertainties brought on by climate change,” Maynilad said.

Maynilad serves certain portions of the cities of Manila, Quezon and Makati. It also covers Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon in Metro Manila. 

Outside the Philippine capital, it serves the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three 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 interests in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

FINTQ launches new programs, services in bid to boost inclusion at grassroots level

FINTQ, the financial technology arm of Voyager Innovations, Inc., has launched programs and services in its bid to bring financial inclusion to the grassroots level.

KasamaKA, a grassroots-based program, was launched in September which aims to offer access to formal financial services by providing a digital platform, making transactions fast, easy and safe.

With the intention to drive Filipinos away from informal financial services such as “5-6,” KasamaKA offers services such as lending, insurance, investments and savings, among others.

“FINTQ and Voyager Innovations are committed to Bangko Sentral ng Pilipinas (BSP) in intensively promoting the National Strategy for Financial Inclusion, and as our goal, we aim to include 30 million Filipinos into the mainstream financial system by 2020 through the KasamaKA program,” Angelito M. Villanueva, FINTQ managing director, was quoted as saying in a statement.

KasamaKA also launched a caravan in partnership with Land Bank of the Philippines (LandBank), BSP and Department of Social Welfare and Development, to promote financial inclusivity and literacy at the community level.

The caravan presents modules which introduces formal financial systems, as well as business and livelihood opportunities, to the participants. It made stops in rural areas of Ifugao, Tarlac, Iloilo, Cebu, Davao del Norte and Misamis Oriental.

“This national caravan aims to improve financial literacy, especially in rural communities that usually have to access to this kind of training. With the help of our partners such as KasamaKA, we can reach more unbanked and underserved Filipinos all over the country,” Landbank President and Chief Executive Officer Alex V. Buenaventura said.

FINTQ has also collaborated with Liga ng mga Barangay to bring KasamaKA to the association’s livelihood and entrepreneurship initiatives for the unbanked in over 42,000 barangays.

At present, 86% of households are considered unbanked due to their lack of savings account. BSP surveys have proven that most of the people do not have access to formal financial services due to the inadequacy of easy-to-reach programs.

Voyager Innovations is PLDT, Inc.’s digital innovations unit. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — KANV

1...12,74212,74312,744...13,744Page 12,743 of 13,744
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube