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Regal Entertainment matriarch ‘Mother’ Lily Monteverde, 84

COURTESY OF THE FILM DEVELOPMENT COUNCIL OF THE PHILIPPINES

FILM producer Lily Monteverde, known by most people as “Mother Lily” due to her role as the matriarch of the Regal Entertainment showbiz family, died on Sunday, Aug. 4. She passed a few weeks’ shy of her 85th birthday on Aug. 19.

The production company confirmed the passing of its founder in a statement made by her family. Described as “a true visionary and cornerstone of the movie industry,” the Monteverdes mentioned how their matriarch provided opportunities to Filipino filmmakers.

“Throughout her years she has not only been a mother to her children but also the ‘Mother’ to so many generations of Filipino filmmakers who have helped define what Philippine cinema is today,” they said in the statement. No cause of death was disclosed.

The family went on to say that Mother Lily was “not merely a matriarch and the face of Regal films, but a true mother to artists and workers who had the chance to know her beyond the confines of work.”

Her husband of more than 60 years, Leonardo “Remy” Monteverde, died on July 29 and was laid to rest the day before her passing.

Mrs. Monteverde founded Regal Films in 1962, beginning first as a distributor of American and European movies. Since then, the company has produced thousands of local films that have left an indelible mark on the Philippine movie industry, from cheap quickies, to blockbusters, to critically acclaimed titles. These include Sister Stella L, Manila By Night, Scorpio Nights, Temptation Island, Underage, the Mano Po trilogy, and the Shake, Rattle, & Roll horror franchise.

“She has helped so many and will never be forgotten,” Senator Grace Poe-Llamanzares said in a Facebook post. Her parents, the late Philippine cinema icons Fernando Poe, Jr. and Susan Roces, were friends with Mrs. Monteverde, who was also her godmother.

“She was, and will always be, a Titan in the Philippine movie industry,” said Ms. Poe-Llamanzares.

Veteran filmmaker and Film Development Council of the Philippines chairperson Jose Javier “Joey” Reyes credited the matriarch for his career, since she was the one who had first hired him as a screenwriter in 1979.

“I find peace with the thought that hers is a legacy that can never be ignored or forgotten because if it were not for Lily Monteverde — if it were not for this Mother — the shape of Philippine cinema would not have been what it is today,” Mr. Reyes said in a Facebook post.

He added that the loss is “eased by the thought that she is now with her partner in life, Father Remy, as they walk together to that place in eternity where they can be finally together.”

The Monteverde family also said in their statement that they are at peace knowing that their parents “remain together where there is no space or time.” Mr. and Mrs. Monteverde are survived by their children Winston, Sherida, Roselle, Dondon, and Goldwin, and their grandchildren.

The wake and memorial service are ongoing until Aug. 9 at 38 Valencia Events Place, New Manila, Quezon City, with a daily mass at 7 p.m. Interment is scheduled for Aug. 10 at the Heritage Park in Taguig. — B.H. Lacsamana

Highlands residential dev’ts highlight 40% open space

SM Prime Holdings, Inc. subsidiary Highlands Prime, Inc. said it has unveiled multiple residential projects within its residential and recreational leisure estate to meet the increasing demand for open spaces in community living.

These projects include the Highlands Residences, Trealva at Midlands West, Primrose Parks, and Horizon Terraces Garden Villas Scottsdale, all located within the 1,500-hectare Tagaytay Highlands, Lennie Mendoza, the company’s senior vice-president, said in an e-mailed statement last week.

“Tagaytay Highlands’ residential and recreational spaces will be complemented by commercial, service, and recreational amenities, fostering a vibrant, sustainable, and holistic environment,” she said.

Its main enclaves include The Highlands, The Midlands, and The Greenlands and Midlands West.

The company also noted the growing demand for open spaces, with 40% of the total development area of the residential communities allotted to unconfined areas, providing residents with views of Taal Lake and the Highlands’ mountainscape.

It also features areas for trekking, hiking, jogging and a bird sanctuary for bird watchers.

Located in Tagaytay, the development provides residents with proximity to services and support facilities, including hospitals, schools, shopping areas, industrial and technological parks, churches, banks, and gasoline stations. The Highlands Residences is a low-density condominium development that promotes open-air activities.

“Tagaytay Highlands is confident that there will be continued strong interest in its premium themed residential communities as it remains committed to sustaining its vision to be the exclusive leisure property of choice amid the demand for luxury mountain resort living,” the company said.

It was recently awarded a “Safety Seal” by the City Government of Tagaytay for upholding sustainability, safety, and security. — Aubrey Rose A. Inosante

Peso stablecoin may exit regulatory sandbox within one or two months

THE PESO-BASED stablecoin launched by cryptocurrency platform Coins.ph could exit the regulatory sandbox stage earlier than expected in the next month or two amid stable demand, an official said on Monday.

“I don’t think there was a specific time, but we do think that we can exit it quite soon, actually, given the current trend. There wasn’t really a specific amount of time but we’re probably looking at another month or so,” Coins.ph Global Marketing Director Katrina Gonzalez told reporters at an event.

Coins.ph Country Manager Jen Bilango said the adoption of PHPC has been strong and demand has been stable.

“Today is the first monthly report that we will submit to the BSP (Bangko Sentral ng Pilipinas). I think in terms of KPIs (key performance indicators), we’re actually more than 50% there,” she said.

“The reception has been good. Actually, we’re asking BSP if we can expand the sandbox,” Ms. Bilango added.

Coins.ph previously said it aims to have at least 20,000 to 30,000 users of PHPC during the sandbox period.

PHPC is the Philippines’ first regulated peso-pegged stablecoin.

Coins.ph received sandbox approval for its launch from the central bank in May.

Stablecoins are pegged to a fiat currency or commodity to give it a stable value, unlike other cryptocurrencies like Bitcoin or Ethereum, which have volatile prices as they are not backed by assets.

PHPC will remain at a stable value of one-to-one to the peso and is backed by cash and cash equivalents stored in Philippine bank accounts.

Ms. Gonzalez said the BSP’s sandbox restrictions include limits on the volume of PHPC being issued.

Holders of PHPC can use the stablecoin to transfer funds or for payments, she said.

Ms. Bilango added that Coins.ph has already conducted a pilot for cross-border payments from Australia to the Philippines using PHPC.

“We have that case study up and running. We received interest from different corridors in terms of making PHPC available. Obviously, you have the likes of Dubai, Singapore, and the United States using that. So cross-border is really the biggest and most important use case for us,” she said.

PHPC can be used to buy other cryptocurrencies such as Bitcoin and Ethereum, as well as other stablecoins, and for hedging amid market volatility, Ms. Bilango added. — A.M.C. Sy

PSE adds DoubleDragon, DigiPlus to MidCap Index, removes CEB, Shell

THE PHILIPPINE STOCK Exchange (PSE) said it will update the companies in the MidCap, financials, industrial, property, services, and mining and oil indices on Aug. 12, but the PSE Index (PSEi) will remain the same.

For the 20-member PSE MidCap Index, DoubleDragon Corp. and DigiPlus Interactive Corp. will be added, while Cebu Air, Inc.  (CEB) and Shell Pilipinas Corp. will be removed, the PSE said in a document on Monday.

The PSE MidCap Index aims at evaluating the performance of midsized companies in the Philippine market.

According to the PSE, a listed company qualifies for inclusion in the sector indices if it is among the top companies in terms of liquidity and has a free float level of at least 20% of its outstanding shares. 

At the same time, the market operator said it also considered other relevant financial criteria as well as eligibility for early inclusion during the index review.

Under the industrial index, Alternergy Holdings Corp., Roxas and Co., Inc., and RFM Corp. will be new inclusions, while Raslag Corp. will be removed.

The property index will include Villar-led VistaREIT, Inc., while D.M. Wenceslao & Associates, Inc. and Ever-Gotesco Resources and Holdings, Inc. will be removed. 

For the services index, DigiPlus, Pacific Online Systems Corp., and STI Education Systems Holdings, Inc. will be added, while Chelsea Logistics and Infrastructure Holdings Corp. and Premiere Horizon Alliance Corp. will be removed. 

Asia United Bank Corp. will be added to the financials index, while Benguet Corp. “A” and “B” shares will be included in the mining and oil index.

The modifications to the local bourse were finalized after a regular review of the indices covering the July 2023 to June 2024 trading period, the PSE said.

“The index review ensures that market barometers feature the most qualified stocks based on the set criteria,” PSE President and Chief Executive Officer Ramon S. Monzon said. 

No changes were made to the benchmark PSEi, PSE Dividend Yield Index (DivY), or holding firms index.

The PSEi consists of the 30 largest and most active common stocks listed on the local exchange, while the PSE DivY Index includes 20 companies that regularly provide high-yielding dividends.

“The current PSEi members remain to be among the top stocks in terms of market capitalization, liquidity, and free float level,” the PSE said in an e-mailed statement. 

“The review of the composition of the indices was based on the policy on index management,” the PSE said. 

Sought for comment, AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message that the addition or removal from the sectoral indices “has almost no effect.”

“To a certain extent, some funds might track the DivY and Midcap indices, but the flows related to these additions/deletions would be negligible,” he said.

“There would only be an effect if a company is added to the PSEi, since it is the benchmark that is tracked by a lot of fund managers,” he added. — Revin Mikhael D. Ochave

Is Japan ready for a ‘world with interest?’

FREEPIK

JAPAN is on the cusp of a brave new world — one where bank deposits yield 0.1% a year.

OK, that might not sound like a revolution. But in a country where an entire generation has grown up knowing nothing but yields near zero, and mortgage rates that seemed to get cheaper by the year, Mitsubishi UFJ Financial Group, Inc.’s move to raise what it pays savers is exceptional.

It followed the shock rate hike by the Bank of Japan, and considering that the megabank slashed its return on deposits to a mere 0.001% in 2016, it’s easier to see why it matters. That shift is just one example of how Japan is stepping into a place many commentators have dubbed the “world with interest.” Anyone under the age of around 40 has no map to navigate this. If the Bank of Japan (BoJ) can stick to its promise and continue to hike — and in view of its history of choosing the worst possible time to raise rates, that’s a big “if.” Many things in the country are about to change.

The question remains: Is Japan really ready for it?

Initial reactions are concerning. In stark contrast to when the BoJ abandoned negative rates in March and markets shrugged, this time the yen tumbled and stocks panicked as many asked if the economy can handle higher rates. On the ground, things feel different, too, with friends and relatives with floating rate mortgages scrambling to establish when, how, and if their repayments will increase.

The BoJ seems to think those concerns will pass. “An improving economy and the resulting rise in interest rates can be expected to lead to an improvement in household income,” the bank said in April. Governor Kazuo Ueda echoed this in his remarks on July 31, punting question after question of the impact on consumers.

It’s true that on balance, households have far more in deposits than they owe in mortgages and other loans. Japan faces little prospect of a mortgage-rate panic like that seen in the UK during Liz Truss’s short term as prime minister. Multiple protections are in place for existing homeowners, with caps to prevent sudden increases.

However, assets are not distributed equally — older households, who’ve had time to pay down mortgages and build wealth, are net asset rich; younger generations in their 30s and 40s, working families with mortgages and car loans, owe more than they have in the bank, according to data from the Japan Research Institute. That means older and richer households will disproportionately benefit.

Ever since Ueda arrived at the central bank 15 months ago, economists have been debating what the “world with interest” will look like. One hope is that, given that the value of money decreases over time in an interest-positive inflationary environment, consumers will spend more. That would be encouraging given their tendency to save. But Japan is frequently a place where economic textbook theories go to die, and it’s entirely possible that asset-poor young couples, already spooked by inflation, will scrimp and save to afford pricier mortgages instead.

Another thing that has economists excited is the prospect that the rising price of debt will spell a potential end to Japan’s “zombie” companies, unproductive entities artificially kept alive by cheap money. That would mean a rise in bankruptcies among debt-laden small- and mid-sized firms — and perhaps lead to the type of unemployment not seen since the early 2000s. But things are changing here, too: The country is in the throes of a chronic labor shortage, and the death of non-productive companies might instead free up resources to do something more useful.

The optimistic take is that the labor shortage means there might not be a better time to set out on a different path. Ueda was bullish in his view that, during the period that mortgage caps keep higher repayments at bay, wages will continue to increase — meaning homeowners will be better off by the time larger repayments roll around. The bank is increasingly confident in its “virtuous cycle” of price hikes and wages increases, believing, as Ueda outlined in May, that the tight labor market and the jolt from inflation has changed firms’ habits permanently.

It seems certain that these changes will work to further break down the cocoon that has sheltered a generation, creating a nation where, in return for flat prices and wages, unemployment and all its downstream social problems were largely warded off.

But things are changing anyway, regardless of what Ueda does. The old social compact is fracturing among a new generation with different attitudes toward risk-taking and company loyalty, and the labor crisis encouraging more workers to jump between firms. A return to the world with interest will almost certainly mean an increase in the bifurcation of haves and have-nots. The government will need to be ready with policies to cushion the blow, and direct spending in the most productive ways. That task will be made trickier when it can no longer rely on cheap cash to finance its debt.

The ultra easy-money policy of previous BoJ Governor Haruhiko Kuroda was frequently seen as a gamble, a jolt that would wake Japan from its slumber. But this new world feels as risky as anything he ever did. It might shock Japan in new and unexpected ways — whether the country is ready or not.

BLOOMBERG OPINION

Sports and music tourism will soon represent a $1.5-trillion economy

FORMULA ONE (F1) has been surging in popularity with younger generations ever since Netflix, Inc. premiered its Drive to Survive docuseries, in 2019; a full 30% of F1 fans attributed their interest in the sport to the show. In 2023 the average race weekend had more than 270,000 in-person spectators, up from 195,000 in 2019.

IF YOU’VE lost track of how many people in your orbit have recently posted pictures of themselves at a Formula One (F1) race or Taylor Swift concert, chances are you’re not alone. According to new research from Collinson International Ltd., which owns Priority Pass and LoungeKey airport lounges around the world, sports and music tourism are growing at unprecedented rates and are forecast to represent a $1.5-trillion industry by 2032.

Sports tourism represents the overwhelming majority of that figure. Valued at $564.7 billion in 2023, it’s expected to skyrocket to $1.33 trillion in the next eight years. Music tourism, meanwhile, is projected to contribute an additional $13.8 billion, more than doubling its current valuation of $6.6 billion.

For the purposes of its report, published on July 29, Collinson defined travelers as anyone who flew to an event, whether internationally or within their own country. Of 8,537 surveyed travelers from 17 countries, more than four in five (83%) have flown to a sporting event while 71% have boarded a plane for a concert in the past three years, or plan to in the next 12 months.

Collinson used those results to model how the industry has expanded and may continue to do so — assuming linear growth in spite of history-making events such as Ms. Swift’s Eras Tour or the first Summer Olympics in eight years to allow in-person spectators, which are currently underway in Paris.

“People are placing high value on experiences over objects,” says Christopher Ross, president of Collinson International EMEA. “If you are going to a sports or music event, the experience does not just start when you walk into the stadium. It’s the planning, travel itself and excitement.”

About 83% of people traveling for events are heading to soccer matches, basketball games, the Olympics, F1 races, or tennis tournaments — the five most popular sporting events in descending order. In a world where streaming networks have created easily accessible pathways to fandom, Mr. Ross says, “the ability to become a global fan has become much more of a reality.”

Soccer captured 69% of the survey’s sports-goers, who said they’d recently traveled to a live match or had plans to do so in the next year. That includes those who were among the more than 1 million fans in Qatar for the 2022 FIFA World Cup but not those who plan to attend the next World Cup, in 2026.

Formula One, meanwhile, has been surging in popularity with younger generations ever since Netflix, Inc. premiered its Drive to Survive docuseries, in 2019; a full 30% of F1 fans attributed their interest in the sport to the show. In 2023 the average race weekend had more than 270,000 in-person spectators, up from 195,000 in 2019.

It’s not just that more people are interested in the sport; ticket prices are also on the rise. Tickets for races in the United Kingdom this summer have reached £600 ($765) for prime “grandstand” seats, with general admission often costing more than £400 per person — up from about £300 just two years ago — prompting British driver Lewis Hamilton to publicly criticize the rising price tag.

To Mr. Ross’ point, those tickets are just one aspect of the sports tourism economy, which also includes hotel stays, restaurant meals, taxi rides, merchandise and other expenses. Collinson data show that 77% of travelers arrive one or two days before a concert or competition, and some 80% will stay one to three days after. Sports tourists spend the most, with 51% exceeding $500 per trip per person on flights and other expenses, not including the event tickets.

Take Las Vegas, which hosted an F1 Grand Prix race in November 2023. The event brought $1.5 billion in economic impact to the city, 50% more than the Super Bowl would raise just three months later. “It’s a younger demographic,” Mr. Ross says of F1 fans, who are among the most likely to add extra expenses to their sports trips. “It seems counterintuitive, because you would think they have less disposable income,” Mr. Ross adds.

That doesn’t diminish the effect of other events. The Paris Summer Olympics, while less of an international tourism juggernaut than expected, are still attracting enough tourists to send Airbnb bookings up 133% from the same period last year. International tourists have been expected to pay around $5,000 for hotel stays, airfare and event ticket costs. And sports fans, Collinson says, are willing to spend in airports too — which is of note to the company. Over half of sports fans, its research shows, spend $500 or more in the airport alone; those aged 25-34 are the highest spenders, with a third of them spending in excess of $1,000 while waiting for their flights to board.

On the music front, Collinson cites major events including Rock in Rio, Coachella and Taylor Swift’s Eras Tour as tourism drivers. But the latter is an unprecedented anomaly. Swift fans have driven 45% year-over-year increases in airfare sales to destinations such as Milan and Munich during concert dates, according to United Airlines Holdings, Inc., and the tour resulted in larger booking spikes for Paris’ top-tier hotels than even the Olympics.

For those in the hospitality industry, the question now is how to cash in on the trend. Marriott International used the Eras Tour as an opportunity to earn new members for its Bonvoy loyalty program, promising free tickets via raffles. By contrast Auberge Resorts Collection, which has 27 five-star resorts from Italy to Hawaii, is teaming with Mercedes-Benz to create a new concert series starting in October, with live performances so far featuring Kate Hudson, Maren Morris, and LeAnn Rimes. At Tennessee’s iconic Blackberry Farm Resort, which has its own concert hall on-site, the events lineup includes performances by Kacey Musgraves, Emmylou and Friends, and Noah Kahan in the coming months, with general access tickets typically starting at $1,000 per person. — Bloomberg

Reytech taps skills of OFWs to address market demand

BATANGAS-BASED Reytech Construction & Development Corp. said it is leveraging the skills set and industry practices of returning overseas Filipino workers (OFWs) to pool manpower in the growing local construction market.

“Many OFWs gain extensive experience in engineering projects abroad, often working with advanced technologies and methodologies,” Reytech Founder and Chairman Hector S. Reyes said in an e-mailed statement last week.

The company has dedicated a portion of its workforce to OFWs with expertise in relevant fields such as mechanical, electrical, civil, or software engineering, most of whom were referred by current employees, Mr. Reyes said.

He added that skilled migrant workers’ insights could contribute to the booming construction industry by “building and delivering quality construction.”

“If they were given a chance to find a good company, I know they would rather stay and work here in the Philippines instead of tolerating unfavorable contracts and labor conditions all while being away from family,” Mr. Reyes said.

He said Filipinos remain a top choice for employers abroad for their dedication, reliability, adaptability, and proficiency in English, which is a competitive advantage.

The Department of Migrant Workers said 2,330,720 OFWs were deployed in 2023, surpassing pre-pandemic numbers and hitting an all-time high since 1969.

The Philippine construction industry is forecasted to grow at an annual rate of 9.6% until 2025, reaching a total value of $8.4 billion by the end of the forecast period. This growth follows a projected increase of 21.2% between 2020 and 2023, according to business management consultant group YCP Solidiance. — Aubrey Rose A. Inosante

BSP launches online academy for financial literacy

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) has launched the BSP e-Learning Academy (BELA), which aims to help Filipinos improve their financial literacy.

“BELA offers a free and interactive platform for learning, breaking down traditional barriers and making education accessible to all,” BSP Managing Director Charina B. De Vera-Yap said at a briefing on Monday.

It offers modules that cover financial planning, budgeting, saving and debt management.

The BSP is also working on modules on the basics of investing, fraud prevention, consumer protection, and personal equity and retirement account, among others.

Students will be able to connect with financial education partners and interact with instructors through fora via messaging or video conferencing, among other media.

The platform is set to be launched soon, the BSP said.

Meanwhile, the central bank also announced other financial education programs and initiatives.

On Monday, the BSP signed a memorandum of agreement with the Department of Social Welfare and Development (DSWD) and BDO Foundation. In 2020, the central bank already collaborated with the DSWD to create a financial consumer protection module for Pantawid Pamilyang Pilipino Program (4Ps).

“This year, we are expanding efforts to include DSWD employees and local social welfare officers. By equipping our public servants with essential financial knowledge and skills, we aim to enhance their ability to serve the nation and contribute to a prosperous future,” Ms. De Vera-Yap said.

The BSP is also enhancing its current partnership with the Bureau of Fisheries and Aquatic Resources and Agricultural Credit Policy Council, along with the BDO Foundation, on their program that created “innovative financial education games” that seek to boost the financial literacy of agri-workers. The central bank is expanding this partnership to include the entire Department of Agriculture to reach more farmers and fisherfolk, she added.

It has also signed a memorandum of understanding with the Credit Card Association of the Philippines to promote the responsible use of credit. — Luisa Maria Jacinta C. Jocson

Cebu Pacific receives 3 aircraft; restructuring plan gets SEC nod

CEBUPACIFICAIR.COM

By Ashley Erika O. Jose, Reporter

CEBU PACIFIC (CEB) has received three more aircraft, representing more than half of its projected aircraft deliveries for the year, the budget carrier said on Monday.

“Our continuous fleet expansion efforts underscore our commitment to provide safe, affordable, and accessible flights,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said in a statement.

The airline said three Airbus jets arrived at the Ninoy Aquino International Airport, including one A330neo, one A320neo, and one A320ceo, representing more than half of its expected 17 aircraft deliveries this year.

“As the demand for air travel continues to rise, we are confident that we will be able to cater to more passengers looking to connect with other people or discover new destinations with Cebu Pacific,” Mr. Lao said.

Airbus’s new-engine option aircraft promise significantly improved fuel efficiency and can use sustainable aviation fuel (SAF). Currently, all Airbus aircraft are certified to operate with an SAF blend of up to 50%.

Cebu Pacific hopes to adopt SAF across its network by 2030.

To date, Cebu Pacific operates a diversified fleet with a total of nine Airbus A330s, 39 Airbus A320s, 22 Airbus A321s, and 15 ATR turboprop aircraft.

Last month, the company announced that it would order up to 152 A321neos worth P1.4 trillion or $24 billion, which is touted as the largest aircraft order in the country.

Separately on Monday, Cebu Air, Inc., the budget carrier’s operator, said that the Securities and Exchange Commission (SEC) has approved the company’s restructuring plan.

On July 17, Cebu Air’s board of directors greenlit the company’s proposal to pursue an equity restructuring of its deficit in 2023.

The company proposed to use its additional paid-in capital of P20.66 billion to clear its deficit amounting to P16.27 billion, leaving it with a capital of P4.39 billion.

“The equity restructuring will not involve a change in the par value of CEB’s shares, nor will it require an infusion of any additional paid-in capital; neither will the equity restructuring result in any change in the number of CEB’s issued, outstanding, or listed shares,” the company told the stock exchange.

For market watchers, this move signifies the company’s intention to improve its balance sheet, allowing it to be attractive to investors.

“This may be aimed at cleaning up its balance sheet ahead of potential fundraising for its massive expansion plan,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce described the proposal as a “significant financial maneuver.”

“CEB aims to clean up its balance sheet. This move can make the company more attractive to investors by presenting a healthier financial position,” he said.

Mr. Arce said that while the restructuring plan does not directly fund its aircraft purchase, it will position Cebu Pacific to potentially raise funds through other means, such as equity or debt, or by simply “improving its financial health and credibility.”

“Cebu Pacific’s decision to restructure now is likely aimed at strengthening its financial position in preparation for significant future investments,” Seedbox Securities, Inc. equity trader Jayniel Carl S. Manuel likewise said in an e-mail.

Mr. Manuel said the restructuring would give the company more flexibility in managing its “substantial commitments.”

“A more stable financial outlook can boost investor confidence, potentially leading to an improved stock price and easier access to capital markets for future funding needs,” Mr. Arce said.

Meralco CSP is about protecting the consumers, indifferent where cheap electricity will come from

Last week, on July 31, a Regional Trial Court (RTC) in Taguig issued Civil Case No. 1039, “Complaint for Injunction with very urgent application for an Ex Parte 72-hour Temporary Restraining Order (TRO); 20-day TRO; and Writ of Preliminary Injunction.” The plaintiffs are Prime Energy Resources Development BV, UC38 LLC, Prime Oil and Gas, Inc., and PNOC Exploration Corp., and the defendant is the Manila Electric Co. (Meralco).

The RTC called on defendant Meralco “from proceeding to select and contract out the 600-megawatt (MW) net and 400-MW net power supply agreements (PSA) under the competitive selection process (CSP) whose terms are flawed, skewed or supplier-driven and grossly violative of existing laws, rules and regulations.”

The CSP should have been conducted last Friday, Aug. 2, for the 600 MW, then on Aug. 9 for the 400 MW, but with the TRO there is an automatic delay in the bidding, and this will mean a higher cost for consumers, with the reasons to be enumerated below.

Two weeks before this TRO was made by an RTC in Taguig, there was a Senate Committee on Energy public hearing (July 18) where Senator Alan Peter Cayetano, who was a former Taguig Congressman, voiced the same argument used in the RTC civil case, and harassed Meralco.

The main complaints made by the plaintiffs are the following: One, “Meralco TOR (terms of reference) does not recognize and, in fact, violates the preference given to Indigenous Natural Gas (ING) under the relevant laws, rules and regulations.”

Two, “the Meralco TOR incorporated terms and conditions which practically deny the power suppliers using ING as a fuel source the opportunity to fairly participate in the Subject CSPs.”

Three, “increased reliance on imported sources of fuel threatens the country’s energy security and energy sovereignty because these are greatly susceptible to a volatile market” as “imported coal and imported ING, the prices of both are notoriously unstable and extremely subject to external shocks in the market.”

While this is largely a legal matter, my economics-trained mind says that the TRO is wrong for the following economic reasons.

One, the CSP’s main goal is to secure the lowest price for consumers regardless of where the electricity will come from. The CSP is about price competition and selection, not environmental selection, not indigenous over imported energy selection.

Two, cheaper electricity for consumers means the price should be locked at a stable and low level for many years and not subject to wild price swings at the Wholesale Electricity Spot Market (WESM). On Aug. 2, the day where the CSP for 600 MW should have been held, WESM prices fluctuated wildly in Luzon, from P3.50 per kilowatt hour (kWh) at 7 a.m. to P16.56/kWh at 2 p.m., then P9.64/kWh at 4 p.m.

The main reason was that many power plants had unscheduled or unplanned outages plus derating or reducing output for other plants that continued running. The dispatchable reserves that day were -400 MW (a deficit) in the Luzon grid and -86 MW in the Visayas grid (see Table 1).

Three, delaying the bidding will expose the consumers to an “unnecessary burden in the amount of billions of pesos in the form of higher power rates” as noted by Jose Ronald V. Valles, Meralco SVP and Head of Regulatory Management. The wild swing in prices within a period of 10 hours on Aug. 2 is proof of this.

Four, the claim of high price volatility of imported LNG and coal also applies to the ING Malampaya gas price because it is pegged at Dubai crude oil prices. Dubai, WTI, and Brent oil prices have experienced wild price fluctuations and volatility at almost the same periods as the price volatility of LNG and coal, like in 2008, 2011-2014, and 2022 (see Table 2).

So, favoring ING and demonizing imported LNG and coal based on an argument of price volatility is not a valid argument as it has no basis.

Five, the Philippines need long-term cheap electricity to power its industrialization dream. The industry sector comprises 30% of the country’s GDP, the manufacturing sub-sector comprises 20% of GDP, and recently these sectors were growing slowly partly due to expensive electricity. With the ongoing degrowth and deindustrialization in Europe, we should expect that many businesses there will move to Asia — including the Philippines — and cheaper electricity should be one of the attractions we can offer them.

Data from the Independent Electricity Market Operator of the Philippines (IEMOP) shows that electricity generation and consumption in gigawatt/hours (GWh) was growing at 14% to 24% over the last two years. Meralco electricity sales, also in GWh, had muted growth last year but high growth this year (see Table 3).

Related to my projection in this column last week that GDP growth in the second quarter (Q2) of 2024 would range from 6% to 6.2%, the main reason I said so was because of the base effect — the low growth of only 4.3% in Q2 2023 — and this would allow for high growth in the current year. More particularly in the manufacturing and industry sectors (which had only 1% and 2% growth respectively in Q2 2023), I think they should be doing around 4% and 7% this Q2 2024. (The Philippine Statistics Authority will release the Q2 GDP data on Thursday, Aug. 8. — Ed.)

Six, Meralco is not the sole buyer of power from big generation companies (gencos) and big gas producers. WESM is also a big market for gencos with an ample supply of electricity to offer. WESM spot quantity was 4,060 GWh in the first half (H1) of 2022, and this jumped to 7,938 GWh in H1 2023, and further jumped to 12,447 GWh in H1 2024 (data from IEMOP).

Seven, lawyer Paris Real has correctly pointed out that the plaintiffs are not participants in the CSP as they are not gencos that will compete in giving low price offers to Meralco. And the legal entity that should handle this should be the Energy Regulatory Commission (ERC), not an RTC. The lawyer is correct because the ERC, as a quasi-judicial body, has powers similar to the courts on legal matters related to energy.

High inflation is the number one concern of most Filipinos and other people around the world. Not climate, not imported energy, not POGOs, not inequality, and so on — just high consumer prices. The Meralco CSP is meant to secure the lowest bid price for its customers, and sticking to its goal of protecting consumers is the correct path to help fight high inflation in the country. The plaintiffs are wrong in putting their corporate interests over consumer interests. And the Taguig RTC is wrong in issuing the TRO. May these mistakes not happen again.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Impressions of a boy’s demonic transformation

A STILL from The Gospel of the Beast starring Jansen Magpusao and Ronnie Lazaro.

By Brontë H. Lacsamana, Reporter

Movie Review
The Gospel of the Beast
Directed by Sheron Dayoc
Cinemalaya Independent Film Festival

THE CRIMINAL underworld has featured heavily in Philippine cinema, through detailed glimpses of the poverty that drives people to it and the gritty, violent fates that befall those corrupted by it.

The Gospel of the Beast (2024) situates a character study of a 15-year-old boy in this harrowing landscape. Director Sheron Dayoc brings the audience face-to-face with Mateo, who struggles with the destructive realities of life and death.

Playing this doomed character is Jansen Magpusao, whose acting range is on full display as he transforms from traumatized teen to stone-cold killer in a visual feast that makes use of a dreamy style rather than a realistic one. After accidentally killing a friend, the boy seeks help from his uncle (played by Ronnie Lazaro), who serves as the bridge to a world of violence.

Because the film centers primarily on how Mateo is distorted into a man with beastly morals, there is not much else to discuss in terms of the other characters and events that take place. Scenes tensely edited together, some gruesome and some a seemingly innocent calm before the storm, form a moody playground for Mr. Magpusao to show off his acting chops.

At this point in his career, he proves he has the remarkable ability to embody the struggles of the disenfranchised Filipino youth, from downtrodden hopelessness in the 2019 film John Denver Trending, to a gradual demonic transformation here in The Gospel of the Beast. The most notable thing this film does is bring forth his ability to convey inner turmoil.

While not as narratively strong as Mr. Dayoc’s previous film Women of the Weeping River, it arguably has much stronger visual storytelling. The tightly edited montages present warped reflections of faces on broken mirrors and an unflinching look at the violent scenes and tendencies that become Mateo’s refuge. It’s a dark, impressionistic approach, deciding not to flesh things out and relying on images and actions to push the character’s evolution forward — a shame since it may have needed a bit of balance to the overall brooding tone and pace.

The notes of religious fervor that treat violence as the only way of life in the margins of Philippine society are well-executed. Those who’ve watched quite a bit of Lino Brocka’s oeuvre will notice references to his work, mainly the opening scene that depicts pig slaughter similarly to 1976’s Insiang. Like how the slaughterhouse where Mateo and his uncle work at shows more meat being reeled in, this film enters the realm of Philippine cinema with more of the same that we’ve already seen, albeit with a different treatment.

Mr. Magpusao as Mateo sells us his beastly transformation with mere facial expressions (a sign of a long, remarkable career ahead), but The Gospel of the Beast is focused too much on an aesthetic vision to provide details that will help the audience dive deeper. The other characters in the cast, for example, are unnamed and completely forgettable. The cinematography and editing are striking, full of rich textures and filmic pacing, but always so concerned with the character’s perspective that the world around him feels almost unreal (even though it is real, the film shot entirely in Western Visayas, with the cast actually hailing from that region!).

Mr. Dayoc, who started off as a documentary filmmaker, may have played with a more stylistic approach here, but beneath all that is his advocacy of tapping into the unflinching, cyclical reality of violence in the Philippines, and how it makes beasts out of young boys.

For that, The Gospel of the Beast was a fine choice for the opening film of the 20th edition of the Cinemalaya Independent Film Festival, where Mr. Dayoc made his debut in 2010 and Mr. Magpusao in 2019. Prior to that, the film was well-received in film festivals in Tokyo and Ho Chi Minh.

It echoes the indie scene’s tendencies to tackle similar topics yet attempt to do something different each time — all of varying quality, all turning to the film festival circuit to flourish, all in the name of defining modern Philippine cinema.

Rated R-16

The Cinemalaya 2024 film festival will have 10 full-length and 10 short films in competition. The festival runs from Aug. 2 to 11 at Ayala Malls Manila Bay in Parañaque City. Counting the other exhibition films, retrospectives, and premieres, the festival’s lineup this year totals 200 films. For more details including the screening schedules, visit the CCP and Cinemalaya websites and social media pages.

RLC advances Sierra Valley Gardens with launch of phase 2

RLC RESIDENCES has launched the second phase of Sierra Valley Gardens, a mixed-use development in Cainta, Rizal.

The project is divided into three phases and includes a total of 12 condominium buildings.

The first phase of the development was introduced in 2020.

The initial four buildings are currently 95% sold and have seen a 42% price appreciation, the company said in a statement on Monday.

This prompted the expansion of the second phase with the introduction of the fifth building, it added.

“Over time, we’ve seen how this property answers the needs of our millennial home seekers — whose goals are to seek their personal and financial independence while staying close to their loved ones,” RLC Residences Marketing Head and Chief Integration Officer Karen Cesario said.

Sierra Valley Gardens offers 24-square meter (sq.m.) studio units, one-bedroom units that range from 36 to 41 sq.m., and two-bedroom units that span 67.50 sq.m. with balcony options.

Among the amenities in phase 2 are a three-floor clubhouse, which houses the residence lounge, lap and kiddie pools, game room, function room, theater room, and fitness and wellness center.

RLC also said the building will feature its own viewing deck, hydroponics farm, and rainwater harvesting system.

Located inside the Sierra Valley estate along Ortigas Extension, it has access to commercial establishments within the estate such as a mall, retail spaces, and an office building.

The firm said that, along with soon-to-rise infrastructure such as the Metro Rail Transit Line 4 station, it will connect future residents to key destinations in Rizal while providing convenient access to major business and lifestyle districts in the metro.

Sierra Valley Gardens features smart home technology that offers convenience, energy efficiency, security, and cost savings. All units are equipped with smart locks, audio-video intercoms, smart lights, and switches to enhance security and safety for residents, the company said. — Aubrey Rose A. Inosante

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