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Dec. sees record-high remittances

CASH REMITTANCES surged anew to a fresh record high in December, the central bank reported on Thursday, propelling these inflows past the growth forecast for the full year.

Money sent home by overseas Filipino workers (OFWs) reached $2.741 billion that month, climbing by 7.1% from the $2.559 billion inflows posted in December 2016, the Bangko Sentral ng Pilipinas (BSP) said. The figure likewise jumped from the $2.262 billion remittances received in November, logging a new all-time high.

December’s growth pace was also the fastest since the 8.4% increase recorded in October last year.

December’s record inflows brought the full-year tally to $28.06 billion, 4.3% more than 2016’s $26.9 billion. The full-year pace beat the central bank’s four percent growth projection for 2017.

The increase in remittances was fueled by a 4.1% hike in the amounts sent by land-based OFWs, plus a 5.3% pickup in funds sent by those working at sea.

“Notwithstanding pockets of political uncertainties across the globe, cash remittances in 2017 remained resilient,” the BSP said in a statement.

Remittances from Filipinos working in the Middle East grew by 3.4% despite tensions in the Gulf area. Fund transfers from within Asia surged by 7.3% as well, led by inward flows from Filipinos in Singapore, Japan and Taiwan.

For the full year, the United States, the United Arab Emirates, and Saudi Arabia were the biggest sources of remittance last year. Other major sources of remittances were Singapore, Japan, United Kingdom, Qatar, Kuwait, Germany and Hong Kong, which altogether accounted for 80.1% of total flows.

For 2017, personal remittances — consisting of cash and in-kind transfers from OFWs including through channels other than banks — grew by a faster 5.3% to $31.288 billion, beating the $29.706 billion tallied in 2016.

“The resiliency has always come from the OFWs themselves, who literally find ways to provide for their families back home. But a major factor has been the general growth recovery of advanced countries where many of our OFWs are sending from,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said when sought for comment.

A recovery in oil prices may have also provided better opportunities for migrant workers, he added.

The central bank expects remittances to grow by another four percent to above $29 billion this year.

Mr. Asuncion said this would be fairly doable, as this would match the expected global growth at around 3-4%.

Remittances support domestic consumption, which in turn is one of the key drivers of overall economic growth. The Philippine economy expanded by 6.6% in the fourth quarter and by 6.7% for the entire 2017 against the government’s 6.5-7.5% target. — Melissa Luz T. Lopez

Ballads make for an easy introduction to ballet

By Nickky F. P. de Guzman

Concert
Ballet & Ballads
Ballet Manila and Christian Bautista
Feb. 17, 6 p.m. and Feb. 18, 3 p.m.
Aliw Theater, CCP Complex,
Roxas Blvd., Pasay City

WHILE music and dance go hand in hand, it’s very rare to see a concert with equally good dancers and singers. Usually, one has to give the spotlight in favor of the other. But not in Ballet Manila’s Ballet & Ballads series, where the singing and dancing jive together seamlessly.

“Dancing creates a visual representation of music,” said Ballet Manila CEO and artistic director Lisa Macuja-Elizalde of the shows.

“It combines a singer with ballet numbers — an interesting concept that we’ve been experimenting with for quite some time now. It’s an entertaining way to enjoy ballet, especially for first-time audiences,” she added.

Ballet & Ballads brings to the stage music and lyrics and let them come to life.

Singer Christian Bautista leads the roster of singers providing the titular “Ballads.” He will be singing some of his greatest theater hits as well as songs from his latest album, Kapit.

Joining Mr. Bautista are artists from the Klassikal Musical Foundation (KMF) including Andrew Fernando (baritone), Jade Riccio (soprano), Stephanie Aguilar (soprano), Krisann Manikan Tan (mezzo soprano), Leo Angelo Lanuza (tenor), with the special participation of Dr. George T. Yang (tenor).

The ABS-CBN Philharmonic Orchestra will provide the music, which will include a special teleserye suite featuring a selection of theme songs from the ABS-CBN prime-time repertoire.

To complement the music, is the dance. Ballet & Ballads marks the world premiere of Martin Lawrance’s “Aria,” which will feature five acts covering classical operas. Mr. Lawrance, a British choreographer, previously partnered with Ballet Manila for the shows Rebel and Amid Shadows.

“He really is a genius when it comes to weaving a ballet together and exploring movement with different kinds of music. The idea was first to combine musical theater and ballet, but when he proposed the classical arias instead, I told him to go for it,” said Ms. Elizalde, adding that it “complements Ballet Manila’s mastery of the Vaganova technique. It is really a concert like no other.”

For details about the show, including ticket prices and schedules, visit www.balletmanila.com.ph or follow Ballet Manila on Facebook, Twitter, and Instagram. Tickets are also available through TicketWorld (891-9999, www.ticketworld.com.ph).

Death, and then the laundry

By Sujata S. Mukhi

Theater Review
’Night, Mother
Presented by PETA
Ongoing until March 18
PETA Theater Center,
No. 5 Eymard Drive,
New Manila, QC

“AFTER ENLIGHTENMENT, the laundry, “ is a wry Zen saying that acknowledges the alternating splendor and banality of life.

’night, Mother, PETA’s unusually intimate offering capping its 50th season, is about the banality of death, its utter ordinariness in the midst of clean clothes and an orderly house. It’s not just a day in the life of Jessie (Eugene Domingo), but her commitment to it being the last day of her life, as she matter-of-factly reveals to her mother Thelma (Sherry Lara) her plan to kill herself later in the evening.

That’s not a spoiler, that’s the main premise, which was all I remembered of the production I had seen by a repertory group in Washington DC way back in 1985. The play by Marsha Norman had won the Pulitzer two years earlier. I do also remember the malaise I felt leaving the theater, at the inevitable fulfillment of the main character’s desire, devoid of consolation.

Set in a home within a remote subdivision in Metro Manila, the play opens with mother Thelma in her duster puttering about, while her middle-aged daughter Jessie looks for a black box holding her deceased father’s gun. In the course of the conversation on stocking up on peanut brittle, doing manicures and using the washing machine, Jessie tells her mother that she intends to shoot herself that night. She is done with misery and meaninglessness, her failed relationships, and dealing with her lifelong burden of epileptic seizures. Thelma laughs it off. But as the minutes roll in real time, she realizes that Jessie is serious.

Adapted into Filipino by Ian Lomongo, ’night, Mother is a two-character tussle between choosing life versus claiming death as a right, on one’s own terms. Between one negotiator, and one who chooses not to settle. Between a mother full of terror, anger, and stunned helplessness; and a daughter who says, in pure existentialist conviction, “no.” That this is her soul’s dark night, mother. And she is going to end it.

What happens next is a taut confrontation between two actors that own the stage for an intermission-free hour-and-a-half, taking the audience on a roller-coaster ride of rationalizations and agonized realizations. Ms. Domingo as Jessie is dispassionate to a fault, making me think just for a moment that she was phoning in her performance. But I forgot that Ms. Domingo is a comedy doyenne, and in the post-show Q&A I came to see how she had so completely quashed her naturally effervescent personality with Jessie’s chilling calm.

And that calm is the pivot by which Ms. Lara’s emotions sway from incredulity to rage to tortured powerlessness as the looming reality of her daughter’s act shreds her soul. Ms. Lara is a marvelous actor, bringing an authentic, almost too painful to watch, vulnerability to her begging, and her raging against her daughter dying into eternal damnation. Amidst of all this, she delivers witty lines with impeccable timing.

Director Melvin Lee instructed that the set had to be so realistic, everything had to be functional. The faucets and stove worked, native tsokolate was cooked on the spot, and cabinets were filled with actual food items. This underscored the absurd ordinariness of Jessie’s revelation of her intention. Her suicide is literal. It is not symbolic. There is no metaphor for a larger social story. There is no song, rap or dance; no rousing anthem at the end.

Mr. Lomongo successfully contextualizes the American drama in an urban Filipino setting. The dialogue exchange is natural and fluid. There’s a meaningful, if unintended pun with the use of the word “sumpong,” meaning both a seizure and a moody petulance, and both possible reasons why Jessie chooses to end her life, according to her mother. The contemporary references are fitting. (Except perhaps for an artificial swipe at EJKs and a mention of activism in reference to an unseen character. But wait, this is a PETA play after all, that tragically, at 50 years old, is still denouncing dictators and madmen, because there still are dictators and madmen!)

But there are some dark sides to this play. We watch with anticipation on whether Jessie is true to her conviction or not. She is at peace with her decision, after all, and between the two characters seems the more stable one. We check in with ourselves to see if, for the sake of a more interesting and complex ending, we wish for her to do what she intends to do. And if she opts not to push through with it, is there a part of us that would be disappointed at the cop-out? The construct of the play then would just be a gimmick. In a time when main characters are killed off wantonly in our favorite TV or streaming shows (a rarity in the past), and social media videos make no qualms about showing footage of actual murder and mayhem to grab attention, I would hope that viewing ’night, Mother is not reduced to a mere will-she-or-won’t-she plot line, or a philosophical discussion on the right to die.

Because the other dark side is a very real urgency to address the crisis of suicide in the Philippines, particularly among the youth. PETA by its name is educational theater, and is serious in bringing attention to social issues. It makes very clear that suicide is not condoned. After the performance on preview night, coach-and-counselor-to-the-stars Randy Dellosa and a mental health expert from UP were part of a panel to field questions on mental health, and show that Jessie’s choice in the play is to be taken as a warning, not a solution. They used that opportunity to talk about the need to address dysfunction and depression, and where help can be obtained. PETA stated its commitment to having such discussions after every performance to debrief the play’s message, lest it be misinterpreted and misapplied.

Let’s hope then that as compelling a production ’night, Mother is, as clear its message should be. Choose life. The laundry can come much later.

Gov’t plans piecemeal sale of Mile Long property

THE GOVERNMENT plans to sell just a portion of the Mile Long property in Makati City this year and will hold on to a chunk of the lot in anticipation of higher valuations, the Finance chief said.

Finance Secretary Carlos G. Dominguez III said his department is awaiting results of a valuation exercise that are due next month before proceeding with the plan to privatize the parcel of land which has been awarded by a local court.

The Mile Long property located along Amorsolo Street in Makati has been the subject of a legal dispute between the government and Sunvar Realty Development Corp. In August last year, the property firm owned by the Rufino and Prieto families agreed to vacate the property following an order issued by the Makati Regional Trial Court’s branch 141. Sunvar and its tenants need to vacate Mile Long and pay back rentals, according to the court.

WAITING FOR THE PRICE TO RISE
“I want to divide that into three or four lots, probably sell two and keep two,” Mr. Dominguez told reporters late last week.

“I just want to wait for the price to go up.”

The Cabinet official said he has informed President Rodrigo R. Duterte about such plans, adding that the government isn’t in a hurry to dispose of the property.

“[O]nce the development starts there the prices will go up, so why shouldn’t we benefit from it? Anyway, we don’t need the cash,” Mr. Dominguez said, noting that the Philippines currently enjoys a healthy cash position.

Finance Undersecretary Grace Karen G. Singson, who heads the DoF’s privatization group, told reporters that the government will study results of two separate valuation exercises conducted by independent external parties, and another by the government.

Mr. Dominguez said the government hopes to raise P2 billion in revenues annually from the sale of its assets until 2019.

The government also wants to unload shares of stock in Atlas Consolidated Mining & Development Corp., Benguet Corp., Chemical Industries of the Philippines and Lepanto Consolidated Mining Co., as well as stakes in PAL Holdings, Inc.; the Puerto Azul resort; Manila Polo Club; and Makati Sports Club. — Melissa Luz T. Lopez

Household spending likely to remain strong despite inflation pickup — BMI

CONSUMER spending should remain strong in the Philippines despite rising inflation, analysts at BMI Research said, noting that stable incomes and remittance inflows will likely offset the impact of higher prices of goods.

“The consumer outlook in the Philippines remains bright on the back of a strong economic performance and rapidly rising incomes, influenced by a tight labor market and sustained remittance inflows,” BMI said in a report.

“Although we do expect inflation to tick up over 2018, we do not expect it to have a pronounced effect on consumption.”

The Fitch Group unit gave this assessment following the faster-than-expected four percent inflation rate recorded in January that hit the ceiling of the 2-4% target range of the Bangko Sentral ng Pilipinas (BSP) for the full year.

BSP Governor Nestor A. Espenilla, Jr. has attributed the overall jump in prices to rising global crude prices as well as higher taxes under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act (TRAIN) that took effect last month.

While slashing personal income tax rates, the new law also imposed an additional P2.50 excise tax per liter of diesel and P3/liter for kerosene, which came at a time of three-year highs for world crude prices. It also either increased or introduced additional taxes on cars, coal, sugar-sweetened drinks and a host of other items that likely drove up prices of widely used goods and services.

BMI said inflationary pressures pose a risk to consumption over the coming year, largely due to an expected upturn in oil prices. Rising consumer lending as well as the government’s aggressive infrastructure spending plans could likewise push prices upward.

The central bank expects full-year 2018 inflation to average 4.3%, although Mr. Espenilla said the impact of tax reform should be temporary.

Still, the expected surge in prices of widely used goods and services will not stifle household consumption, as Filipinos will have more funds in their pockets due to strong remittance inflows and a stable jobs sector.

Real private consumption is expected to grow by five percent this year, albeit slower than the 5.5% rise in 2017. This will keep economic growth at 6.3% for the entire year, against a 6.7% increase the prior year.

Majority of Filipinos will also enjoy bigger disposable incomes under TRAIN, as it reduced the income tax rates for those earning below P2 million yearly.

BMI also expects money sent home by overseas Filipino workers to remain a “vital source of secondary income for Filipinos,” enough to sustain upbeat household spending this year.

“With over 2.5 million Filipinos living and working in the US, Philippine households will continue to receive a large share of remittances in US dollar and therefore depend on the strength of the USD,” the research unit added.

“Philippine households receiving remittances denominated in USD will see purchasing power fall as the USD depreciates, acting as a drag on essential spending categories such as food and clothing.”

An improving labor market will likewise support domestic consumption, with BMI expecting joblessness rate steady at seven percent for the year.

Unemployment rate stood at five percent in October, higher than the 4.7% recorded in the same month a year ago, according to preliminary data from the Philippine Statistics Authority. Budget Secretary Benjamin E. Diokno said he expects the joblessness to maintain its decline, as big-ticket infrastructure projects will require the hiring of more workers.

However, BMI pointed out that some areas will likely experience stronger spending than others, as minimum wages vary across regions. “While we expect to see further wage growth across the board in 2018, the best consumer prospects will remain concentrated in the urban retail hubs of Manila, Quezon City and Davao.” — Melissa Luz T. Lopez

No bad faith by China — Palace

MALACAÑANG on Thursday said it was not attributing bad faith on the part of China in the controversy over the latter’s naming undersea features in Benham Rise, officially named in the Philippines as Philippine Rise.

For its part, Beijing cited an international body as basis for “naming proposals on the unnamed undersea features,” as it maintained respect for “the relevant rights enjoyed by the Philippines concerning the Benham Rise.”

“According to the information I have received, the Sub-Committee On Undersea Feature Names (SCUFN) is a specialized international organization in charge of establishing standards on naming undersea geographic features. According to the deliberation rules of this organization, the relevant countries and individuals may submit naming proposals on the unnamed undersea features which are twelve nautical miles away from the littoral states,” China’s Foreign Ministry Spokesperson Geng Shuang said in his press briefing on Wednesday, Feb. 14.

“The Chinese side is always engaged in the relevant work in accordance with the international practices and the rules of this organization,” he added.

Mr. Geng also said, “Meanwhile, we also hope that the relevant parties can view relevant technological work with a professional and responsible attitude.”

On Wednesday, Philippine Presidential Spokesperson Herminio Harry L. Roque, Jr. said, “We object and do not recognize the Chinese names given to some undersea features in the Philippine Rise.”

He added that this matter would be raised with the International Hydrographic Organization that is responsible for assigning names to underwater features.

But on Thursday, Mr. Roque said the Philippines is “not attributing bad faith” to China’s naming of the said underwater features.

“Basically, it is not a political process. It is a scientific process. If I am not mistaken, a country which discovered these [features] would be the one to give names,” Mr. Roque said in his press briefing on Thursday.

He added, “Giving names does not mean they are claiming it. China recognizes that they have no rights over the Philippine Rise, and they recognize our sovereign rights.

“It is clear that Philippine Rise is under our sovereign rights. We don’t see basis for China to be alarmed with our position that we will insist on our naming rights.”

“Our stand, it’s up to them. But on our part, we will give Filipino names [to these features] just like what we did in ignoring the name that the Americans used. It is now a Philippine Rise.”

Director Jay L. Batongbacal of the Institute for Maritime Affairs and Law of the Sea at the University of the Philippines, had earlier disclosed on social media the five features named by China as “the Jinghao and the Tianbao Seamounts located some 70 nautical miles east of Cagayan; the Haidonquing Seamount further east at 190 nautical miles; and the Cuiqiao Hill and Jujiu Seamount that form the central peaks of the Philippine Rise undersea geological province itself.”

For his part, National Security Adviser Secretary Hermogenes C. Esperon, Jr. said in a statement: “While the approval by the SCUFN does not confer to the applicant country sovereignty and jurisdiction over the seamounts, the Philippine Government had nonetheless raised its objection to China’s recent initiatives, during the meeting of the Philippines-China Bilateral Consultative Mechanism held on 13 February 2018.”

Mr. Esperon was referring to Tuesday’s meeting among representatives of the two countries regarding the also disputed South China Sea.

He added that “(t)he decision of the SCUFN was made without due consultation with the Philippine Government.” — Arjay L. Balinbin

Senator: TNVS cap ‘still inadequate’

SENATOR GRACE Poe-Llamanzares on Thursday said the 65,000 cap on transport network vehicle service (TNVS) allowed to operate in Metro Manila is not yet enough to meet passenger demand amid the difficulties in public transportation services.

However, she also pointed out the cap should still be enforced in order to pave the way for colorum vehicles under the TNVS to be registered at the LTFRB.

“The truth is, it is still inadequate because a lot of people are complaining that the services are not enough due to the lacking public transportation. But let’s allow it for now so the registration could be done. Then let’s lift the cap again,” she told reporters in Filipino after Thursday’s hearing by the Senate committee on public services, which she heads, regarding issues hounding the TNVS sector.

The Land Transportation Franchising and Regulatory Board (LTFRB) on Monday issued a memorandum circular increasing the number of Uber and Grab vehicles allowed on the streets of Metro Manila from 45,000 to 65,000 in order to meet passenger demand.

Ms. Llamanzares said the TNVS cap could still be adjusted if the demand remained high.

“Let’s start with 65,000 but let’s reevaluate after that. If the demand is unmet then we need to be able to make adjustments again,” she said at the hearing.

At the hearing, LTFRB chair Martin B. Delgra III said the agency is processing about 12,000 pending applications which would be part of the 65,000 vehicles allowed to operate.

He also discouraged the public from purchasing vehicles to enroll these under Grab or Uber because LTRFB would not act on new applications.

“Don’t buy new cars before applying for a franchise. We’re trying not to raise expectations,” he said.

Mr. Arnel Caluya from the TNVS community expressed reservations on the cap issued by LTFRB.

“Our position is there should not be a cap on the number of vehicles because these cars are already existing… it should be serving the public. What we suggest is don’t put the cap,” he said.

As for fare hike increase requested by both Grab and Uber, Mr. Delgra said the petitions are under deliberation, noting that ongoing hearings were being held by the agency up until March on the matter. — Camille A. Aguinaldo

3 Chinese firms interested in Kaliwa dam

By Victor V. Saulon, Sub-Editor

METROPOLITAN WATERWORKS and Sewerage System (MWSS) expects three Chinese companies to secure procurement documents for the Kaliwa dam project which will be bid out in March, its top official said.

MWSS Administrator Reynaldo V. Velasco said funding for the project is already available through official development assistance (ODA) from China, and had been approved by the National Economic and Development Authority and President Rodrigo R. Duterte.

“May funding ’yan,” he told reporters, adding that no changes had been made about the funding commitment from China.

Mr. Velasco said last year China pledged P10 billion in ODA to fund the project.

MWSS has also revived a plan to build the Kanan dam as a proponent came forward with a project under a public-private partnership, Mr. Velasco said.

Under the previous administration, the P18.72-billion Kaliwa dam had two pre-qualified bidders, which are now out of the picture because of the government’s new procurement mode for the project. It used to be a public-private partnership, with MWSS as implementing agency.

Since the project is funded by ODA from China, Mr. Velasco said there will be no pre-qualification stage since the Chinese embassy identifies the three pre-qualified companies.

“Dapat ’yung gagawa may experience in both dam and tunnel buildings. Okay naman kasi ’yung dalawa diyan top five ng China, ’yung isa top 15 pero may experience sa dam and building (The contractor must have experience in building dams and tunnels. Two of them are fine because they belong to China’s top five. The other one is the top 15 but it has experience in dams and building.),” he added.

Mr. Velasco said the project is required to be finished by 2023, although he has told the Chinese consul to make sure that the contractors are good “because I want this finished before 2022” or before the term of the President ends.

However, he did not identify the three short-listed Chinese companies.

Kaliwa dam, or what the previous administration called New Centennial Water Source Project, was conceived as a new water source for the booming population of Metro Manila and nearby provinces, which is estimated at nearly 12 million.

The dam is meant to be a “medium-term” water source for the Philippine capital, supplementing the supply from the aging Angat transmission system that delivers more than 95% of its water needs.

Angat dam will be having a fourth tunnel connecting Ipo dam to the Bigte settling basin. Water from Angat dam flows to Ipo dam where the release of water is regulated. The project was started towards the end of the past administration and is expected to be completed by 2020.

Kaliwa dam is located along the Kaliwa River in the towns of General Nakar and Infanta, Quezon province. It is expected to provide 600 million liters per day (MLD), adding to the existing supply of 4,132 MLD and enough to meet a demand of a little less than 4,000 MLD by 2020.

A 27-kilometer tunnel will convey the new water from Kaliwa reservoir to the outlet portal in Teresa, Rizal where it will be treated before distribution.

KANAN DAM
Mr. Velasco placed the size of Kaliwa dam as only one-fifth that of the Kanan dam. He said a group led by Quezon Representative Danilo E. Suarez is behind the proposal.

“Pinapa-review ko kasi ang immediate source niyan is Laiban (I’m having it reviewed because the immediate source is Laiban). It will be a big problem because of 4,500 families that will be affected (and relocated),” he said, referring to a populated barangay.

“Now with the modern technology, we might opt for the Kanan [dam], which is a bigger dam that has a bigger capacity. Laiban is only 1,800 MLD. Kanan will amount [to] 3,000 MLD but we have to study. You have to project the requirement of the people [of] Metro Manila, Rizal, Cavite and Bulacan,” Mr. Velasco said.

He said Kanan dam might be implemented as a public-private partnership (PPP), and that he was trying to convince Mr. Suarez to agree to the scheme.

“’Yung project niya is more of hydropower. So the water is just a by-product. Sabi ko, basta maibigay mo sa amin ng mura ’yung tubig, okay na ’yan. Water is a national property naman. We give out water permit. So kung kikita siya sa hydro, ’yung water niya bibilhin ko (His project is more of hydropower. So the water is just a by-product. I told him that as long as you can sell water cheaply, that is fine. Water is a national property. We give out water permit. So if he will earn from hydro, I’ll buy his water),” he said.

Mr. Velasco said the capacity of the hydro-electric power project was placed at 400 megawatts.

ALI boosts capex to P111B in 2018

By Arra B. Francia, Reporter

AYALA LAND, Inc. (ALI) is ramping up spending for 2018, as the property giant sees solid demand for residential projects.

ALI Chief Finance Officer Augusto Cesar D. Bengzon said this year’s P110.8-billion capital expenditure budget is higher than the annual average of P80 billion it spent from 2013 to 2017.

“I think this year, 2018, will be a landmark year. It’s a transition for the company given that we see good prospects for the market and at the same time, we recognize that we have that platform that we can unlock,” Mr. Bengzon said in a press briefing in Makati City on Wednesday.

The 2018 capital spending is 21% higher than the P91.4 billion ALI spent in 2017. The company has originally set its 2017 capex at P88 billion, but said that they were prompted to spend more given the strength of demand from the property sector.

Residential projects will account for 43% or P47.4 billion of this year’s capex, while 17% or P18.7 billion will be poured into mall projects. Around 12% or P14 billion will be allocated for land acquisitions.

Meanwhile, P8.5 billion will be used for office projects, and P8.8 billion will be for the development of existing estates. ALI also continues to develop its hotels and resorts business, with an allocation of P7 billion for the year.

The remaining P6.4 billion will be spent for services and other investments.

PROJECT LAUNCHES
ALI also plans to launch P125 billion worth of projects this year. This is 25% higher than the company’s goal of launching up to P100 billion worth of projects last year.

Mr. Bengzon, however, noted ALI was not able to reach its target project launches last year, unveiling 28 projects worth only P88 billion.

Majority of the projects in the pipeline are residential and offices for sale, which will account for P100 billion of projects to be launched this year. The residential projects will be under its AyalaLand Premier, Alveo, Avida, Amaia, and BellaVita brands.

ALI said it will launch two estates in 2018, one located in the Visayas-Mindanao area and another in Quezon City, noting the latter will be a pocket development covering 11 to 12 hectares.

The company currently has 25 mixed-use estates, and a developable land bank of 10,285 hectares.

The remaining P25 billion will be used to develop leasable properties such as malls and offices.

This year, ALI will open two new shopping malls, the first being One Bonifacio High Street in Bonifacio Global City, Taguig. Scheduled to open in March, the mall has a gross leasable area (GLA) of 23,000 square meters.

Set to open in June is Circuit Mall, located in the company’s mixed-use estate in Makati City. The mall will have a GLA of 54,000 sq.m. This will bring ALI’s GLA from malls to 2.57 million sq.m., after ending 2017 with 1.8 million sq.m.

For its office segment, ALI will be opening Ayala North Exchange HQ in Quezon City with a GLA of 20,000 sq.m. in June, and Vertis North BPO 3 with a GLA of 38,000 sq.m. The additional spaces will supplement the company’s 1.02 million sq.m. of leasable space as of end-2017.

“We now have a very broad leasing base, firmly the second largest mall operator in the country… and the largest office landlord in the Philippines today,” Mr. Bengzon said.

FUND-RAISING
To fund this year’s capex, ALI is looking to tap the bond market after other issuers, specifically San Miguel Corp. and SM Prime Holdings, Inc., have conducted their bond offerings.

“You should expect us to be going out very soon, for a combination of bonds and we will also do some bilaterals because there are banks that continue to offer us very good rates,” Mr. Bengzon said.

“The capex roughly will require us to raise about P20 billion, so we’re looking at half from the retail bond segment, and the half from bilaterals owing to banks,” he added.

ALI’s attributable profit grew 21% to P25.3 billion in 2017, as revenues penciled in a 14% increase to P142.3 billion during the period.

Shares in ALI were down by 50 centavos or 1.11% to close at P44.60 apiece at the stock exchange on Thursday.

PBB to raise funding

PHILIPPINE BUSINESS Bank (PBB) is set to conduct capital-raising activities to capitalize on lending opportunities.

In a disclosure to the Philippine Stock Exchange on Thursday, the Yao-led PBB said it will convert its existing preferred shares to common stocks “to further strengthen its balance sheet.”

The bank’s planned conversion of preferred shares to common shares is still subject to regulatory approvals, it said.

The lender added that it is also looking at raising up to P10 billion through the offer of long-term negotiable certificates of deposit (LTNCD).

“The additional funding will allow the Bank to capitalize on attractive lending opportunities as the Philippine economy continues to expand,” PBB said in the disclosure.

LTNCDs are similar to regular time deposits which offer higher interest rates, but the difference is that these cannot be pre-terminated. Being “negotiable” means that these can be traded at the secondary market prior to maturity date.

Earlier this year, Philippine National Bank and East West Banking Corp. said they will sell LTNCDs worth P20 billion and P15 billion, respectively.

Meanwhile, UnionBank last month offered some P3 billion in certificates, the first tranche of its P20-billion LTNCD program.

PBB posted lower earnings in the third quarter of 2017 due to a decline in trading gains and higher expenses. It booked a net profit of P125.78 million, down from the P329.96 million it earned in 2016.

Shares in PBB fell by 0.3% or four centavos to P13.20 apiece on Thursday. — KANV

PAL considers acquisition of A350-1000 jet

By Patrizia Paola C. Marcelo,
Reporter

PHILIPPINE AIRLINES (PAL) is considering the acquisition of the new Airbus A350-1000, amid the flag carrier’s aggressive fleet expansion program.

PAL President Jaime J. Bautista on Thursday said the airline can earn savings with the new long-range aircraft, the largest of the Airbus A350 series.

“It’s a bigger version of the 350-900. Its advantage, if we take delivery of this, the engine is the same. A little bit bigger but there is commonality, the spare parts. With training, the pilot can fly the same aircraft. So, in terms of pilot training, cabin crew training, we have savings in training. There are savings on spare parts because there is commonality in the airline, is very important,” Mr. Bautista told reporters on the sidelines of the A350-1000 demonstration at the Ninoy Aquino International Airport (NAIA) Terminal 2.

In 2016, the flag carrier ordered six A350-900s. PAL expected to take delivery of four of the A350s this year.

Mr. Bautista said there is an option to convert the A350-900s to A350-1000s.

“We can. I’m sure. We have an order of six option. That option, I’m sure Airbus will be happy if we convert those to 350-1000,” he added, noting the lease price is $200 million.

Airbus is set to deliver the first A350-1000 aircraft to Qatar Airways on Feb. 20.

Airbus brought the A350-1000 to Manila as part of its Asia-Pacific road show. The Airbus A350-1000 is the newest product in the A350 WXB family. The twin-aisle aircraft is seven meters longer than the A350-900 and can seat 366 passengers in three-class configuration.

This year, PAL is expected to take delivery of six A321neos, and five Bombardier Q400s. The $2-billion fleet expansion comes amid the airline’s efforts to secure five-star rating by 2020.

PAL earlier said it is targeting to carry 16.5 million passengers this year.

Okada lures in familes with PLAY

THE SPRAWLING 44-hectare Okada Manila integrated casino-resort has launched a space specifically made for the little ones in a bid to make the property more family friendly.

Simply named PLAY — meaning “Purposeful Learning and Activities for the Young” — the 1,200 square meter space located at the property’s Coral Wing houses eight “purpose-built play areas” suitable for children up to 16 years old, according to a company press release.

“Allowing children to play, explore and interact with other children, either in a free or structured manner, rewards them with a lot more beyond just a few moment of fun,” Vikki Aquino, director of spa, fitness, and recreation at Okada Manila, was quoted as saying in the press release.

“More than just a playspace, PLAY was built to incorporate learning components so children can learn while playing,” she told BusinessWorld during its launch on Feb. 3.

She added that the property employs SPED-certified (special education) instructors so children with special needs would likewise enjoy the space.

“What we’ve noticed is that children with special needs, even if they want to play with their peers, find it harder to insert themselves into activities, so we had all of the facilitators be SPED-certified so children — regardless of their needs — would be able to play,” she said.

The play areas within space are: Wizard’s den, an interactive video game space; Mini Steps & Mini Me, a dedicated play and learning space for children up to three years old; Little Town, a space which allows children to play in banking, postal, school, grocery and home environments; Little Park, a two-level playground and maze; Sports Zone, an active zone with an artificial grass court; Janguru (Japanese pronunciation of “jungle”), a multi-level playground and maze for children over 110 centimeters tall; The Stage, for performance arts; and My Party Place, an event and gaming space for birthday parties and other occasions.

Ms. Aquino stressed that during the construction of PLAY, they took all necessary measures — and more — to ensure the safety of the children. The floors at the main play area, for instance, are anti-bacterial.

Other features include child-friendly comfort rooms, an emergency response team, a snack bar, a kiddie gift shop, and over 30 closed-circuit television cameras.

Aside from the spaces, PLAY will also conduct learning programs “designed to address the developmental needs of children,” including Colors and Creation, an arts and crafts program; Yesterday, Today and Tomorrow, a program aimed at enhancing the child’s development; Music and Movement for performing arts, music, and dance; and Life Skills, classes focusing on “practical matters such as social graces, good housekeeping, etc.”

Ticket prices for PLAY at Okada Manila start at P750 for children which includes five hours of play time, and P300 for the child’s guardian. Discounted rates are offered for rewards members, preferred/junket members, and those celebrating their birthdays.

PLAY also offers a multi-entry pass which starts at P10,183 for six months (Moon pass) and includes one child and one guardian. This can go up as high as P35,437 for the Star Family tier for three children.

For more information, e-mail play@okadamanila.com or call 888-0777. — Zsarlene B. Chua

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