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BSP to grant licenses for four more digital banks

MACROVECTOR-FREEPIK

By Luisa Maria Jacinta C. Jocson, Reporter  

THE BANGKO SENTRAL ng Pilipinas (BSP) will allow four more digital banks to operate in the country starting next year, it said on Thursday.

“The Monetary Board has approved the lifting of the moratorium on the grant of new digital banking licenses starting on Jan. 1, 2025 and allowed a maximum of 10 digital banks to operate in the country,” it said in a statement.

The four additional licenses may come from either new applicants or banks seeking to convert their existing license to a digital one.

“With this limit, the BSP can closely monitor developments in the digital banking industry, obtain a broader perspective as these banks mature further in their operations, as well as assess the impact of the entry of new players on the banking system,” BSP Governor Eli M. Remolona, Jr. said.

In 2021, the central bank capped the number of digital banks at six.

The six online lenders operating in the country are Tonik Digital Bank, Inc.; GoTyme Bank of the Gokongwei group and Singapore-based Tyme; Maya Bank of Voyager Innovations, Inc.; Overseas Filipino Bank, a subsidiary of Land Bank of the Philippines; UNObank of DigibankASIA Pte. Ltd.; and UnionDigital Bank of Union Bank of the Philippines, Inc. (UnionBank).

Mr. Remolona said that applicants must “bring something new to the table.”

“We want to see unique product and service offerings that are different from that offered by the existing market players. These offerings should have significant potential to reach broader clientele, particularly the untapped or underserved market segments.”

The BSP said that the applicants will undergo a “rigorous” licensing process which will evaluate their value proposition, business models and resource capabilities.

Applicants must also be compliant with the standard licensing criteria, which covers transparency on ownership and control structures; the composition of shareholders, directors, and senior management; capital adequacy and corporate governance and risk management, among others. 

“Only digital bank applicants that have demonstrated capacity to meet the minimum criteria and offer unique value proposition, or develop new and innovative business models that are currently not offered or accessed by existing players, will be granted a digital banking license.”

“Applicants must also display sufficient capabilities and readiness to deploy their digital solutions and to sustainably grow their business within the Philippine setting,” the BSP added.

Mr. Remolona also said that the decision to lift the moratorium was based on its assessment of the operation of the current digital banks.   

“The BSP took into consideration the digital banks’ financial soundness and achievement of the policy objectives of the Digital Banking Framework of promoting wider adoption and use of digital financial services in the country and expanding their reach into the unserved and underserved segments of society.”

MORE COMPETITION
Meanwhile, Bankers Association of the Philippines (BAP) President and Bank of the Philippine Islands (BPI) President and Chief Executive Officer Jose Teodoro K. Limcaoco said that more digital banks would help support financial inclusion in the country.

“It’s always welcome when the BSP opens the sector because it promotes competition, it promotes financial inclusion,” he told reporters late last week.

Ronald B. Gustilo, national campaigner for Digital Pinoys, said that digital banks help “ease the usually time-consuming procedure of physically visiting a bank to open an account.”

“It will provide an opportunity for Filipinos to open an account with ease, at their most convenient time,” he said in a Viber message.

However, analysts noted that digital banks still face some challenges, particularly in achieving profitability.

“The lack of a physical presence, I think, could hinder them in looking for assets. And when you look at the current digital banks today, I think some of them continue to be unprofitable,” Mr. Limcaoco said.

Earlier this year, the BSP said that only two out of the six current digital banks were profitable.

The latest BSP data also showed that resources held by digital banks stood at P105 billion as of May. This accounted for just 0.33% of the P31.787-trillion total resources of the Philippine financial system during the period.

“Digital banking is a hard business because they have to compete with the traditional banks, who I’ve always said have all the advantages because we can be digital as well,” Mr. Limcaoco said.

Angelito M. Villanueva, FinTech Alliance Philippines founding chairman and executive vice-president and chief innovation and inclusion officer of Rizal Commercial Banking Corp., said that digital banks must compete with larger and more established players.

“Despite the considerable potential for growth, these challenges mean that most digital banks in the country are not yet transforming the financial industry at the anticipated speed or scale envisioned when their licenses were initially issued,” he added.

Meanwhile, Mr. Gustilo said that the BSP must ensure that digital banks will be able to cater to clients’ needs 24/7 despite not having a physical branch.

There should also be strict implementation of the recently signed Anti-Financial Account Scamming Act (AFASA).

“Opening bank accounts with digital banks is easier compared to opening accounts in person. Digital banks should ensure that the ease of opening accounts will not result in fictitious account names which may be used for illegal transactions,” Mr. Gustilo added.

The BSP wants to onboard at least 70% of adult Filipinos into the formal financial system.

Sy siblings still richest; Razon moves to 2nd spot

(LEFT) TERESITA SY-COSON AND ENRIQUE K. RAZON, JR.

By Revin Mikhael D. Ochave, Reporter

THE SY SIBLINGS remained on top of the Forbes list of the Philippines’ 50 richest this year, while ports and casino tycoon Enrique K. Razon, Jr. climbed to second spot.

According to Forbes, the combined wealth of the tycoons in the list was “nearly flat” at $80.8 billion this year, from $80.4 billion a year ago.

“More than half of the country’s 50 richest are less wealthy this year,” it said, noting that elevated inflation and high interest rates are crimping domestic demand.

The lackluster stock market and weaker peso were also cited as reasons for the drop in wealth of some tycoons.

The six Sy siblings, namely Teresita, Elizabeth, Henry Jr., Hans, Herbert, and Harley, posted a combined net worth of $13 billion. This was 9.7% lower than their net worth of $14.4 billion last year, reflecting the weaker peso, Forbes said.

They are the heirs to the SM Group founded by the late Henry Sy, Sr., who was the richest man in the Philippines until his death in January 2019.

“Their group flagship, SM Investments Corp., a conglomerate with interests in banking, property and retail, is expanding in geothermal energy with five new projects across the country,” Forbes said.

Mr. Razon jumped to second spot on the Forbes list for the first time, as his net worth surged by 37% to $11.1 billion from $8.1 billion a year ago.

Forbes said Mr. Razon was the biggest dollar gainer for the second year in a row, as shares of International Container Terminal Services, Inc. soared by about 80% in the past year amid a recovery in global trade. Mr. Razon also owns Bloomberry Resorts Corp., which operates Solaire Resort and Casino.

Property tycoon Manuel B. Villar, Jr. slipped to third place even though his net worth increased by 12.4% to $10.9 billion from $9.7 billion in 2023.

A former Senate president and House speaker, Mr. Villar is the chairman of listed companies Vista Land & Lifescapes, Inc., Golden MV Holdings, Inc., supermarket chain AllDay Marts, Inc, home improvement chain AllHome Corp. and Vistamalls, Inc.

San Miguel Corp. Chairman Ramon S. Ang ranked fourth as his net worth jumped by 11.8% to $3.8 billion from $3.4 billion last year amid the conglomerate’s push into infrastructure, winning bids for airports, toll roads, and power plants.

DMCI Holdings, Inc. Chairman Isidro A. Consunji and his siblings rose to fifth place from eighth last year. Their net worth rose by 17% to $3.4 billion this year from $2.9 billion a year ago.

Tony Tan Caktiong, chairman of fastfood giant Jollibee Foods Corp. was in sixth place even as his net worth slid by 9.4% to $2.9 billion from $3.2 billion last year.

Taipan Lucio C. Tan, chairman of LT Group, Inc., secured the seventh spot as his net worth increased by 1.9% to $2.65 billion from $2.6 billion in 2023.

Jaime Zobel de Ayala and his family were in eighth place with a net worth of $2.6 billion, down by 7.1% from $2.8 billion a year ago.

Entering the top 10 list were Lucio L. Co and his wife Susan P. Co of Puregold Price Club, Inc. in ninth place with a combined wealth of $2.3 billion, unchanged from last year’s numbers.

Completing the top 10 was the Aboitiz family of conglomerate Aboitiz Equity Ventures, Inc. with a net worth of $2.2 billion, down by 30.2% from $3.15 billion in 2023.

Lance Y. Gokongwei and his siblings slipped to 11th spot as their net worth dropped by 37% to $1.9 billion from $3 billion in 2023.

Shares of JG Summit Holdings, Inc. fell year on year as its petrochemicals subsidiary has been affected by weaker global prices and high operating costs.

Another big gainer on the Forbes list was Eusebio H. Tanco of STI Education Systems Holdings, Inc. Mr. Tanco landed in 22nd place as his net worth rose by 35% to $815 million, as shares in his online gaming company DigiPlus Interactive Corp. surged.

Forbes said there were no newcomers to the 2024 rankings due to the lack of initial public offerings.

However, it noted that two tycoons have returned to the annual list. One of the two returnees is Edgar B. Saavedra, ranked 43rd, with a net worth of $270 million after the public listing of Citicore Renewable Energy Corp. in June.

The other returnee is Michael C. Cosiquien, ranked 48th, with a net worth of $205 million. He runs ISOC Holdings, Inc. which has interests in logistics, energy, property, and infrastructure.

Sought for comment, China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the rankings and combined net worth of the country’s tycoons reflect the state of the local equity market.

“Most of their wealth is tied to the value of their publicly listed holdings, so the generally tepid performance of the stock market is affecting their net worth,” he said in a Viber message.

AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said the weaker combined net worth is a result of the “sluggish market” and depreciating peso.

“A big chunk of their net worth is tied to the prices of the stocks they own, and as you know the market has been weak lately,” he said in a Viber message.

“It’s not to say that the companies they own aren’t earning money, it’s more because the risky environment recently is not encouraging investors to place more value in stocks,” he added.

Forbes said the net worth of top Philippine tycoons were based on the closing stock prices and exchange rates as of July 19. Private companies were valued based on similar companies that are publicly traded.

The minimum net worth to join the list was $170 million, lower than the $180 million last year.

Vehicle sales jump 6.1% in July amid new launches and better supply

Car enthusiasts check out the vehicles displayed at the Manila International Auto Show, April 4, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

By Justine Irish D. Tabile, Reporter

VEHICLE SALES in the Philippines jumped by an annual 6.1% in July, driven by new launches and supply availability, according to an industry report.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed vehicle sales rose to 39,331 units in July from 37,086 units in the same month last year.

Month on month, car sales inched up by 0.6% from the 39,088 units sold in June.

Auto Sales (July 2024)“New product launches, improved product offerings, good sales momentum, as well as supply availability helped neutralize the impact of Typhoon Carina, especially towards the latter part of July,” CAMPI President Rommel R. Gutierrez said in a statement.

In July, passenger car sales increased by 14.9% to 10,923 units from 9,509 units sold a year ago. Month on month, passenger car sales edged up by 2.78%.

Sales of commercial vehicles, which accounted for 72.23% of the industry’s total sales, went up by 3% year on year to 28,408 units. Month on month, commercial vehicles sales dipped by 0.2%.

Broken down, light commercial vehicle sales slipped by 3.6% year on year to 20,849 units, while sales of Asian utility vehicles (AUV) jumped by 32.7% to 6,620 units.

Sales of medium trucks slid by 23.9% to 299, while sales of heavy trucks slumped by 35.6% to 65. Light-duty truck and bus sales went up by 23.4% to 575 units.

For the first seven months of the year, vehicle sales went up by 10.9% to 265,610 units from 239,501 units a year ago.

Passenger car sales jumped by 17.3% to 70,798 units, while commercial vehicle sales increased by 8.7% to 194,812 units.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the latest vehicle sales data were “decent.”

“However, although the vehicle sales growth from January to July is still higher than GDP (gross domestic product) growth, the vehicle sales growth is starting to normalize after double-digit growth rates in recent months and coming from a higher base as a result,” Mr. Ricafort told BusinessWorld via Viber.

In the first half, GDP growth averaged 6%, still on track to meet the government’s full-year target of 6-7%.

Mr. Ricafort said the steady car sales reflect the country’s favorable demographics, as the majority of the population is of working age.

“Local vehicle sales and production growth rates at double-digit levels in recent months are still leading indicators of the further growth and recovery of the Philippine economy,” he said.

Toyota Motor Philippines Corp. remained the market leader with sales of 122,730 units in the January-to-July period, up by 11.47% from 110,158 units a year ago. Toyota sales accounted for 46.21% of the market.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 19.05%. Mitsubishi sales jumped by 15.4% to 50,599 units in the first seven months from 43,831 units last year.

In third spot was Ford Motor Co. Phils. Inc. with a market share of 6.33%. Ford’s sales went up by 1.2% to 16,817 units.

Rounding out the top five were Nissan Philippines, Inc., whose sales inched up by 0.9% to 15,819, while Suzuki Phils., Inc. posted a 13% rise in sales to 11,499 units.

This year, CAMPI set a sales target of 468,300 units, up 9% from the 429,807 units sold in 2023.

The 265,610 units sold in the January-to-July period already accounted for 56.7% of the industry’s target for the year.

DITO CME aims P40.26B for financial lift

By Ashley Erika O. Jose, Reporter

DITO CME Holdings, Inc. (DITO) said it plans to raise as much as P40.26 billion through funding from private investors over the coming five years to improve its financial standing and support its growth.

So far, the company has secured P5.53 billion in funding, DITO CME said in a stock exchange filing on Thursday.

The breakdown of this total includes P3.3 billion obtained in October, P610 million in August, and a further P1.59 billion by the close of 2023.

The capital was raised through financing agreements with external investors, including Xterra Ventures Pte. Ltd., Summit Telco Corp. Pte Ltd., and Summit Telco Holdings Corp., the company said.

“[DITO CME’s] management continues to have discussions with its existing investors and other entities to fulfill the target equity raise such that the company targets to raise additional equity via private placement before the end of 2024,” the company said, adding that any private placements will “partially address the negative equity position.” 

At the same time, the company is considering launching another round of its follow-on offering (FOO).

“If the market conditions are ripe, and considering the heavy capital requirements for the rollout of the network of DITO Tel, DITO CME shall continue to consider launching another follow-on offering or stock rights offer,” DITO CME said.

The additional follow-on offering or stock rights offering will be conducted after its recently announced P4.2 billion follow-on offering, it said.

“The timetable and target equity raise, however, will be determined at a later time,” it said.

In May, DITO CME said its board of directors approved the proposed follow-on offering of up to 10% of its current issued and outstanding capital stock of 1.95 billion valued at P2.15 apiece.

“The company has submitted an application for a Follow-On Offering last May 31, 2023, to the Securities and Exchange Commission and The Philippine Stock Exchange, and it targets to complete such FOO by this September 2024,” DITO CME said.

The company said it is now in the process of securing the necessary regulatory approvals from the Securities and Exchange Commission (SEC) and the listing department of the Philippine Stock Exchange to launch its follow-on offering.

For Globalinks Securities and Stocks, Inc., Head of Sales Trading Toby Allan C. Arce, several factors may impact the viability of DITO CME’s planned additional follow-on offerings.

“Interest rates and inflation are crucial. If interest rates are high, attracting investors to the follow-on offering could be challenging, as investors might favor safer investments with better returns,” he said.

Investors’ confidence will be key in this plan, Mr. Arce noted.

“Uncertainty, especially in emerging markets, might make investors cautious. Furthermore, high market volatility can deter investors, as they may perceive additional offerings as a sign of financial distress rather than growth potential,” he added.

DITO CME, the operator of DITO Telecommunity Corp. (DITO Tel), said the third telco player will continue expanding its operations.

DITO Telecommunity is allocating up to P30 billion for capital expenditures this year, mainly for network rollout.

The company said it will be focusing on gaining market share and commercial rollout while also targeting new product launches.

“DITO Tel projects that it will be EBITDA (earnings before interest, taxes, depreciation, and amortization) positive by the end of 2025 and profitable by the end of 2028. Thus, the accumulated losses will be reduced and/or wiped out as soon as the operations are ramped up in the following years,” DITO CME said.

For the first quarter, DITO CME saw its attributable net loss widen to P4.11 billion from P336.67 million in the comparable period a year ago, despite posting higher gross revenues for the period.

According to the company’s financial statement, the company recorded a gross revenue of P3.78 billion, 61.5% higher than the P2.34 billion previously.

This comes after its gross expenses ballooned to P7.04 billion, up 31.1% from P5.37 billion in the same period last year.

The company has yet to release its second-quarter and first-half financial statement as of writing.

At the stock exchange, shares in the company gained five centavos or 2.56% to close at P2 each.

Lower costs, new farms drive ACEN’s 61.5% income surge

ACEN Corp., the Ayala group’s renewable energy arm, reported a 61.5% increase in its attributable net income to P3.57 billion for the second quarter, driven by the operationalization of new solar and wind farms and a significant reduction in costs.

Revenues declined by 16.6% to P9.45 billion from P11.33 billion; however, costs and expenses went down by 34.8% to P5.97 billion from P9.16 billion, ACEN said in its regulatory filing on Thursday.

For the six-month period, ACEN’s attributable net income rose by 48.7% to P6.29 billion from P4.23 billion a year ago.

This was attributed to the 42% growth in attributable renewable energy generation, as well as an improved net selling position in the Wholesale Electricity Spot Market (WESM), the trading floor of electricity.

“We have strong momentum on the back of a robust increase in operating earnings and steady progress with our project pipeline,” ACEN President and Chief Executive Officer Eric T. Francia said.

“We have won several new projects that we expect to add to our capacity within the next six to twelve months. We remain on track with our goal of achieving 20 GW (gigawatt) of renewables capacity by 2030.”

As of end-June, the company’s attributable renewables capacity was 4.8 GW, 69% of which is already fully or partially operational.

ACEN’s total attributable renewables output increased by 42% to 2,908 gigawatt-hours (GWh).

Broken down, its renewable energy plants in the Philippines generated 1,015 GWh in the first half, up 77% from last year.

ACEN has operationalized solar and wind farms in the first half which are the 385- megawatt-(MW) phases 1 and 2 San Marcelino Solar in Zambales; the 160-MW Pagudpud Wind and 70-MW Capa Wind in Ilocos Norte; the 133-MW Cagayan North Solar in Cagayan, and the second phase of the 116-MW Arayat-Mexico Solar joint venture in Pampanga.

In turn, the company’s net seller position in the WESM rose by 80% to 606 GWh, supported by the said operationalized plants.

Attributable renewables output from ACEN’s international assets went up by 28%, generating 1,893 GWh.

Large-scale projects were commissioned this year, namely the 522-MW first phase of New England Solar in Australia, the 420-MW Masaya Solar in India, and the 60-GW Lac Hoa and Hoa Dong Wind in Vietnam.

The 287 MW first phase of the SUPER solar platform in Vietnam, which was acquired last year, was also added to ACEN’s generation portfolio.

Currently, ACEN holds about 4.8 GW of attributable renewables capacity in operation and under construction, as well as signed agreements and won competitive tenders worth over one GW.

Meanwhile, its listed subsidiary Enex Energy Corp. has trimmed its net loss to P10.83 million for the second quarter from nearly P15 million booked last year.

Expenses for the quarter were relatively flat during the period which was at P4.38 million from P4.37 million previously, the oil and gas exploration company told the local bourse in a separate regulatory filing.

For the six months ending in June, its second-quarter net loss narrowed to P23.04 million from P29 million a year earlier. — Sheldeen Joy Talavera

MPIC unit says Iloilo mega desalination plant ready by 2026

METROPAC Water Investments Corp. (Metro Pacific Water) said it targets to complete the Philippines’ largest desalination plant in Iloilo City by 2026.

“We’re all focused on that. That will be the biggest desalination for the Philippines. So far, the target is to have it operational by 2026,” Metro Pacific Water President and Chief Executive Officer Christopher Andrew B. Pangilinan said on the sidelines of an event on Tuesday.

In June, the company signed an agreement with France-based Suez, a water and waste management solutions provider, for the construction of a P5-billion desalination plant capable of producing 66.5 million liters of water per day.

Mr. Pangilinan said that the project is slated to begin construction in the latter part of the third quarter.

“If you look at the technology, compared it to ten years ago, I think we’re 10 times more efficient now in terms of cost. Still expensive but we’re optimistic in the long run [that] this will be a viable solution to the Philippines especially that we’re an archipelago, so we’re sort of piloting a big risk but we’re willing to pilot this in Iloilo,” he said.

The company noted that Metro Iloilo is undergoing rapid economic and population growth, which is putting a strain on the existing water resources.

A new desalination plant would be a pivotal project to ensure a reliable and sustainable water supply for the region in the immediate and medium term, according to Metro Pacific Water.

“If it turns out successful, I’m sure we could easily replicate this in other islands all across the Philippines,” Mr. Pangilinan said.

Metro Pacific Water, a wholly owned subsidiary of Metro Pacific Investments Corp. (MPIC), manages water and wastewater concessions throughout the Philippines and in Vietnam.

Its Iloilo subsidiary, Metro Pacific Iloilo Water, a joint venture with the Metro Iloilo Water District, serves Iloilo City and the municipalities of Pavia, Leganes, Sta. Barbara, Cabatuan, Oton, San Miguel, and Maasin.

MPIC is one of three key Philippine units of First Pacific, alongside Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Taylor Swift Vienna concerts canceled because of planned attack

BERLIN — Taylor Swift’s three concerts in Vienna this week were canceled after the government confirmed a planned attack at the stadium, the organizer announced late on Wednesday, and Austria’s Chancellor Karl Nehammer said “a tragedy was prevented.”

“Thanks to the intensive cooperation of our police and the newly established DSN with foreign services, the threat was identified early on, combated and a tragedy prevented,” Mr. Nehammer said in a post on social media platform X. DSN is Austria’s Directorate for Security and Intelligence.

“With confirmation from government officials of a planned terrorist attack at Ernst Happel Stadium, we have no choice but to cancel the three scheduled shows for everyone’s safety,” Barracuda.music said in a post on Instagram, adding all tickets would be automatically refunded.

Austrian police on Wednesday detained two people suspected of plotting attacks on concerts, Franz Ruf, director general for public security, said at a news conference on Wednesday evening.

“During our investigations, we identified preparatory actions and noted that the 19-year-old suspect had a particular focus on the Taylor Swift concerts in Vienna,” Mr. Ruf said, adding that the suspect, an Austrian citizen, had pledged allegiance to Islamic state. Another suspect was later arrested in Vienna.

Police searched the residence of one of the suspects in Ternitz, Lower Austria, and were analyzing items from the home. Local media, citing police sources, said three suspects were still on the run.

Earlier on Wednesday before the cancellation announcement, police had said the events would take place but with increased entry checks and personal searches, with deployment of special units including anti-terror and bomb disposal teams, advising the public to arrive early at the events.

Three Taylor Swift concerts were scheduled to take place In Vienna from Thursday to Saturday. Police had been expecting around 65,000 attendees at each show, as well as up to 15,000 people outside the stadium without tickets, which fed security concerns.

The shows were to be part of the record-breaking Eras Tour by the American singer-songwriter which started on March 17, 2023, in Glendale, Arizona, US, and is set to conclude on Dec. 8, 2024, in Vancouver, Canada.

Ms. Swift, 34, has not yet commented on the cancelations on her official Instagram account which has 283 million followers.

The singer has been taking Europe by storm, prompting some pundits to envisage an economic windfall as fans flock to dozens of sold-out shows from Dublin to Warsaw and beyond.

After Vienna, Ms. Swift was set to sing in London where six concerts are scheduled at Wembley Stadium, starting on Aug. 15. — Reuters

Acciona’s Cebu solar project fast-tracked with BoI ‘green lane’

PEXELS-PIXABAY

ACCIONA Energía, a subsidiary of Spanish infrastructure company Acciona, said its 150-megawatt (MW) solar power project in Daanbantayan, Cebu has been granted “green lane” status by the Board of Investments (BoI).

“The ‘green lane’ privilege is granted to investments that are considered strategic for the country, expediting the permitting process among government agencies, and accelerating and streamlining the development and construction of the project,” Acciona Energía said in a statement on Thursday.

The solar power project involves an investment of around $130 million (P7.5 billion).

The initial power output from the solar facility will be distributed through private power purchase agreements with Cebu II Electric Cooperative, Inc.

Any excess energy will be sold at the annual green energy auction hosted by the Department of Energy, according to the company.

“Aligned with the Philippine Development Plan (PDP), this project supports the government’s goals to increase the renewable energy capacity, ensure energy security, and promote sustainable and inclusive economic growth,” Acciona Energía said.

Among the projects that are in its pipeline are the 156-MW wind farm in the municipality of Pantabangan, and the 100-MW Kalayaan 2 wind farm in Laguna province.

The company has been operating in the Philippines since 2016 through its water and infrastructure divisions and has been involved in flagship projects, such as the Putatan II and Laguna Lake water treatment plants and the Cebu Cordova Link Expressway.

Executive Order (EO) No. 18, approved in 2023, established green lanes within government agencies which will expedite the process of granting permits and licenses through the One-Stop Action Center for Strategic Investments (OSACSI).

OSACSI issues endorsement letters to the Department of Energy, National Government agencies, and local government units, which designate projects as strategic, which will in turn ensure processing times fall within the periods prescribed in EO 18. — Sheldeen Joy Talavera

Cinemalaya 2024 Pocket Reviews: Of disappearances, elections, weed, confusion, and reconnecting

By Brontë H. Lacsamana, Reporter

NOW that the 20th edition of Cinemalaya is entering its closing weekend, BusinessWorld has watched half of the 10 full-length films in competition.

Select Ayala Malls cinemas in Metro Manila — Trinoma, UP Town Center, Greenbelt, Market! Market!, and Ayala Malls Manila Bay — are showcasing some of the best of what the local indie film scene has to offer. Compared to mainstream narratives, these films often tackle pressing issues in society.

Here are the reviews of five films that we were able to watch:

ALIPATO AT MUOG
Directed by JL Burgos

It’s a delightful surprise that what may be the best film of the bunch is a documentary. What’s not delightful are the circumstances behind its existence.

Alipato at Muog (translation: Flying Embers and a Fortress) is equal parts heartbreaking and infuriating. It challenges those of us who are not involved with any desaparecidos, or people who are forced to disappear by the state, to feel the suffering of their families. Through the film, we live through the events alongside his mother, Edita, and his brother, the director himself. It makes us feel as though activist-farmer Jonas Burgos were our own brother, and that we have also been looking for him for nearly two decades.

Seeing the military personnel responsible for the disappearance running free and even moving up in rank while the family chases lead after lead is harrowing to say the least. Animation is used sparingly to communicate the dark thoughts that pervade their minds, of what may have happened to Jonas.

Director JL Burgos, through the film and in the talkback afterward the screening, said that this is all about the pursuit of truth. What will it take for the truth to surface, after the countless reports, articles, court files, and documents that have already come up to resolve the case? This film demands answers; it demands action with a resounding cry.

BALOTA
Directed by Kip Oebanda

Reading the logline of Balota, which follows a poll watcher uncovering the reality of the Philippines’ dirty elections, one would expect a “serious indie film” — and it does hit some of those beats for sure — but this surprisingly has a generally in-your-face satirical tone.

Here, we see Marian Rivera take on the role of a beautiful activist-turned-teacher and poll watcher named Emmy. As a huge star, Rivera is so famous that she doesn’t always convincingly disappear into the role, but she still injects it with a distinct flavor of fierce and quirky. A strong ensemble supports her, including Sue Prado, Joel Saracho, Sassa Gurl, and Royce Cabrera.

While entertaining, a lot of it feels anachronistic, evoking 2020s sensibilities even though the story is set in 2007 and is loosely based on actual tales of violence during the elections that year. Surefire one-liners and exaggerated character traits are a nudge and wink at a well-informed, contemporary audience that already knows Philippine elections are a sham.

It seems director Kip Oebanda set out to make a cathartic adventure where a strong woman is backed by queer activists and an involved, fed-up community that will fight corrupt politicians — however campy, surreal, and fantastical it may be. It’s tonally different from what you’d expect a sociopolitical Cinemalaya film on violent, faulty elections would be like, so perhaps chalk this critical review up to mismanaged expectations. Young adults in the crowd resonated with it, perhaps reflecting a frustration towards the state of our elections that many ache to see onscreen.

GULAY LANG, MANONG
Directed by BC Amparado

For a fun and even riotous viewing experience, this is the film to watch. It’s the perfect mix of entertaining stoner comedy and heartfelt treatise on how medical marijuana is unfairly perceived. It also touches on how farmers are insufficiently appreciated and agriculture is a thankless livelihood.

Controversial for obvious reasons, Gulay Lang, Manong shows just enough of a glimpse into the lives of its colorful characters that the events play out naturally — from Ranzel as the easygoing, weed-selling little person to Perry Dizon as the honest vegetable farmer caring for his stoner grandson. Cedrick Juan plays the narcissistic cop (so frustratingly attractively) well as his character falls to the wayside of a dysfunctional police system.

While the film is an absolute riot and the ideal conversation starter for discussions around the legalization of medical forms of drug use, the portrayal of the struggle of farmers is very subtly done. It’s seen in little tribulations reflecting a larger reality: a competitive market, inconsiderate hagglers, the fragility of produce.

The casting, screenplay, and soundtrack are all brilliant. First-time director BC Amparado and the entire production should be proud of this remarkable film. It manages to de-stigmatize cannabis while also depicting the realities of an unfair world. A true gem in this edition of Cinemalaya.

THE HEARING
Directed by Lawrence Fajardo

The way everything plays out in The Hearing feels crude, disjointed, alienating. First-person point-of-view shots place the audience in the front seat to characters’ various struggles with language barriers, communication breakdowns, and searching for meaning in the faces of others.

This uncomfortable flow of interactions describes the experience of Lucas, a deaf-mute boy who must testify in court that he was raped by the parish priest. The film deftly takes on the sensitive nature of its central conflict by questioning the lack of true, smooth communication in our society in general. Characters with standard hearing plod through unnatural-sounding legalese used in court, and bear with the blatant dismissal of their thoughts by an uncaring husband or a rigidly religious neighbor.

If the bureaucracy of the current system is tedious for the average person, how much more so for a deaf-mute in a country that lacks support for persons with disabilities? This film effectively addresses these issues.

Enzo Osorio as Lucas is devastatingly expressive, his confronting eyes piercing through the tedium of silences. Ina Feleo’s sign language teacher-interpreter character has her own struggles that serve as bookends to this harrowing tale, while Mylene Dizon as the mother is just as achingly raw to watch as she does all she can to support her son. If the flow of this film feels rough, it’s because the characters’ experiences are that way, making this a difficult film to sit through, albeit for good reason.

KONO BASHO
Directed by Jaime Pacena II

Kono Basho is a wholesome Filipino take on Japanese cinema in the style of Hirokazu Koreeda (known for films like Monster and Our Little Sister). It’s the softest, gentlest film of the bunch, dwelling on the beauty of its surroundings while the characters attempt to connect and heal. Notably, it makes use of recordkeeping, with short video montages of crashing waves and rebuilt houses having a calming and almost cathartic nature, evidence of artist and first-time director Jaime Pacena II’s keen eye for still images and art.

Gabby Padilla and Arisa Nakano play half-sisters forced to connect. They shine in their roles as they each reveal and face their inner demons, at first alone and then with each other. One sister has a chip on her shoulder from being abandoned at a young age while the other has mental trauma and co-dependence from a brush with disaster at a young age. (The disaster in question is the 2011 Tohoku earthquake and tsunami that destroyed Rikuzentakata, the town where the film is set.)

It’s not pretty when the two characters try to connect at first. The former’s unwillingness to listen and the latter’s seemingly manipulative self-hatred don’t mesh well, a dynamic that is understandably not palatable for many viewers. But they power through it.

For the two girls, and the slowly recovering town they are in, grief and remembering are an endless cycle that comes in waves, sometimes large and sweeping, other times rough and frightening. The best parts are when the water finds a quiet calm. Kono Basho is a pleasant film that takes audiences on a journey to find that calm.

Ayala Land says AirSWIFT entices ‘several buyers’

LISTED Ayala Land, Inc. (ALI) said it hopes to complete the sale of its boutique airline AirSWIFT within the year and is considering offers from several buyers, not just Cebu Pacific.

“We hope so, but we’re still in discussions. Maybe around this time next month, there’ll be something more definitive,” ALI Chief Finance Officer Augusto D. Bengzon told reporters on Wednesday, in response to whether the company plans to complete the sale within the year.

ALI Head of Leasing and Hospitality Mariana Zobel de Ayala said the property developer is also in talks with other airlines for the planned sale of AirSWIFT, aside from the Gokongwei-led Cebu Pacific.

“When we started this process, our objective really was what would be the best customer experience. So we thought it would be best to cast a wide net. That’s how we started the process. Right now, we are progressing with our talks with Cebu Pacific,” she said.

“It is not exclusive in the sense that we are entertaining several (buyers). But I guess what came out in the news is our discussions with the Gokongwei group,” she added.

In a statement, Cebu Pacific said it “is always on the lookout for opportunities to grow and expand its network, including partnership with other parties.”

Ms. Zobel said the planned sale of Air-SWIFT will allow ALI to focus on its core competency of land development.

“The terms are not confirmed yet. But I think the principle really is that our core competency is in developing land and land-related products,” she said.

“We hope to continue focusing on that and ensure that we can deliver the right experience by partnering with a group whose focus is in aviation,” she added.

Meanwhile, Mr. Bengzon said that one of the requirements of the possible deal is to continue the existing flights to ALI properties such as the Lio tourism estate in El Nido, Palawan.

“For our Lio estate, we still own the airport there. Whoever ends up purchasing AirSWIFT will need to service our resorts in Palawan. It’s one of the requirements,” he said.

AirSWIFT is a boutique airline that offers daily round-trip flights from Manila, Cebu, Caticlan, Clark, Panglao, Coron, and Tagbilaran to El Nido. The airline operates five aircraft consisting of ATR 42-600 and 72-600.

On Thursday, ALI shares fell by 0.67% or 20 centavos to end at P29.80 apiece. — Revin Mikhael D. Ochave

Mommy dearest

COURTESY OF THE FILM DEVELOPMENT COUNCIL OF THE PHILIPPINES

FIRST thing you’d come to know when you met “Mother” Lily Monteverde was her laugh.

It was loud. It was raucous. It was her head tilting back, wide mouth opening wider, and that voice — a little low, a lot rough, barking out a sound that was half-aggressive half-accepting of the absurdity of the world. Sound of a woman who holds nothing back when she laughs, same way she’d hold nothing back when giving her opinion or judgment or whatever needed expressing at the moment. It was the sound of a queen on her throne, ruling her little fiefdom with lively and inimitable style.

Lily Yu Chu, professionally known as Lily Yu Monteverde, popularly known as “Mother” Lily, wasn’t the only female producer in Philippine cinema — there was Narcisa (“Dona Sisang”) de Leon, who established LVN Pictures and was grandmother to Filipino filmmaker Mike de Leon — but Mother was possibly as influential, and more prolific.

The head of Regal Entertainment had two reputations: first as a mercenary film producer, alert for the next popular trend, constantly trying to suss out audiences’ taste. She liked a director with a track record of hits, loved sequels, remakes, variations on a concept, cunning parodies, or plainly bizarre titles (Underage, Underage Too; Teenage Marriage, Teenage Mama; Playgirl, Pabling (Playboy); Starzan, Bobocop, Horsey-horsey Tigidig-tigidig). Her Shake Rattle and Roll horror series (1984-2023, 16 features and counting) is brilliant for several reasons: a regularly presented product in a commercially proven genre; said product in a familiar format (an omnibus of horror shorts), yet varied enough to keep interest relatively fresh; and said series is often an opportunity to field-test new talents for relatively little money.

One of her most successful projects though was oddly also one of her most personal, the Mano Po (Bless Us) series (seven movies and three TV series, from 2002 to 2023): comic or dramatic stories taken from the Filipino-Chinese community, her way of giving back, and (in the way they feature strong-willed Filipino-Chinese women) telling her own story — honoring her own story? — in fictionalized terms.

Second, she seemed to have a soft spot for artists, on occasion would put money in less-than-commercially-promising projects, sometimes backing fledgling filmmakers in the hopes that their careers would take off, later backing the same filmmaker-turned-veteran when he’d propose some head-scratching project. “But it’s got to make money!” she’d warn, the filmmaker only half-listening: truth is she’d put in money because she believed in them.

Her filmography on IMDb lists over 600 titles; Roger Corman managed less than 500. It is debatable whose productions look better — Corman’s budgets were bigger on paper but if you factor in exchange rates and the cost of making films in each respective country; considering that a chunk of the titles are films Corman imported from Europe… this might be fodder for another article, where we compare careers side-by-side.

But if we’re talking new filmmakers we can start with Jeffrey Jeturian, who began his career with Mother. His Sana Pag-ibig Na (Enter Love, 1998) was a no-budget debut feature about a young man who confronts the mistress of his deceased father, and featured a lovely late-career performance by LVN star Nida Blanca as the mistress. His Pila Balde (Fetch a Pail of Water) — script by Armando Lao, and far as I know their best collaboration to date — is a seriocomic sketch of a squatter community situated beside a housing project, squatters and residents living off each other in a symbiotic/parasitic relationship.

Rico Maria Ilarde started with an inventive science-fiction independent production (Z-Man, 1988); did Dugo ng Birhen: El Kapitan (Blood of a Virgin, 1999) — Taekwondo champion Monsour del Rosario vs. an undead Spanish captain —; did Babaeng Putik (Woman of Mud, 2000), about a writer-warrior (think Stephen King only badass) both seduced and menaced by a woman literally made of mud. Ilarde has made a career out of working the line between arthouse and horror — in a way, his films hit what to Mother’s mind may have been a sweet spot: commercial, but with a touch of the weird.

Lav Diaz also started with Mother but their relationship was knottier. A little context: Mother established Good Harvest films under the immediate supervision of producer-director Joey Gosiengfiao, and the outfit made the following offer: production of any script from any filmmaker regardless of experience (or lack of), but with a tight schedule of seven shooting days, seven days of post-production, and a budget of P2.5 million (roughly $43,000). The pito-pito films as they became known put out some clunkers, a handful of good films, a few precious gems — Jeturian’s Sana Pag-ibig Na was one; Diaz’s Serafin Geronimo: Ang Kriminal ng Baryo Concepcion (1998) was another. A Dostoevsky-inspired drama filled with amber lighting and possessed by a preternatural stillness, the tiny film suggested an outsized talent straining at its budget. Diaz reportedly struggled with the meagre resources; he managed to eke out three more extraordinary pito-pito films — the surreal Burger Boys (1999); the dreamlike Hubad sa Ilalim ng Buwan (Naked Under the Moon, 1999); the dystopian Hesus Rebolusyonaryo (Jesus Revolutionary, 2002) — before shifting into full-time independently financed filmmaking.

More established filmmakers have worked with Mother, resulting in some of their finest works: Maryo J. de los Reyes’ Laman (Flesh, 2002), an erotic melodrama about married couples exchanging partners; Chito Rono’s Eskapo (Escape, 1995) about political prisoners in the time of Martial Law; and Mike de Leon’s Sister Stella L. The latter (from a script by Jose “Pete” Lacaba) was maybe Mother’s most daring production, made at a time when folks began to question Marcos’ then 12-year reign but before anyone could actually see the cracks forming.

Peque Gallaga began his career with the wartime epic Oro, Plata, Mata (Gold, Silver, Death, 1982) but flowered under Mother — for Regal he directed Unfaithful Wife (1985), a self-contained one-set drama about an extramarital affair; Virgin Forest (also in ’85), about folks struggling to survive the Philippine-American War; and the excellent Scorpio Nights (also in ’85 — Gallaga was apparently on a roll), a gritty erotic noir about a college student having an affair with a security guard’s wife, complete with political subtext (student and housewife in effect defying repressive patriarchy).

Joey Gosiengfiao is one of Mother’s longest-running collaborators; she produced his camp melodrama Bomba Star (Bold Star) back in 1978, when Regal Entertainment was five years old. His Temptation Island (1980) — about a gaggle of beauty pageant contestants stranded on a desert isle — has enough melodrama and makeup and bizarre imagery to make Pedro Almodovar sit up and take notice (frankly I prefer Gosiengfiao).

Mario O’Hara worked with Regal on a few commercial projects: To Mama with Love (1983), one of Mother’s better Mother’s Day offerings; Uhaw sa Pag-ibig (Thirst for Love, 1984), an underrated crime noir; Prinsesang Gusgusin (Raggedy Princess, 1987), an underrated young-girl fantasy; and The Fatima Buen Story, an again underrated — and occasionally jaw-dropping — true-life crime noir featuring what may be the best-ever performance of presidential daughter Kris Aquino.

But O’Hara’s most singular work may have been under the Good Harvest banner, a pair of pito-pito productions: Babae sa Bubungang Lata (Woman on a Tin Roof, 1998), both a condemnation of and eulogy to the Filipino filmmaking industry; and Sisa, a wonderfully inventive (if woefully underfunded) fantasy-biopic about Filipino patriarch Jose Rizal — both shot back-to-back in 14 days straight, for a total budget of P5.5 million ($94,000).

Then there’s Pangarap ng Puso (Demons, 2000), a combination love story, horror fantasy, political drama, and celebration of Filipino poetry, crammed into a single genre-bending package. One of my favorite O’Haras, it bombed at the box office despite the minuscule budget. Mother saw it as a love story, and she was not wrong; but the film may have been too strange, too eccentric to market as anything but a lovely if indescribable one-of-a-kind.

The Philippines’ best-known filmmaker Lino Brocka worked with Mother, but to mixed results: Caught in the Act (1981); Hello, Young Lovers (’81); Mother Dear (’81); Adultery (1984) maybe his finest work there was Ina, Kapatid, Anak (Mother, Sister, Daughter, 1979) a finely wrought multigenerational melodrama.

More fruitful was rival filmmaker Ishmael Bernal’s relationship with Mother, which produced the Wildean comedy Salawahan (Opposites Attract, 1979 maybe his finest comedy); the kitchen-sink dramas Relasyon (The Affair, 1982), and Broken Marriage (1983); and what may be Bernal’s masterpiece Manila By Night (1980) an Altmanesque tapestry of narratives that rivals in intensity Brocka’s better-known Maynila sa Mga Kuko ng Liwanag (Manila in the Claws of Neon, 1975). And while Brocka’s Maynila may be a straightforward descent into urban hell, Bernal’s Manila is more of a picaresque romp, a darkly comic dance across Manila’s neon-lit streets where no one remains innocent and everyone comes to some kind of ironic end.

And that’s only the partial list; haven’t even begun to cover everyone Mother has discovered, or championed, or feuded against and then championed (and then feuded against). A long and varied career, to put it mildly, and for better or worse an unforgettable one; she may or may not be missed by everyone, but she certainly won’t be forgotten.

Ex-BSP Gov. Medalla takes seat on SMC board

SANMIGUEL.COM.PH

THE BOARD of San Miguel Corp. (SMC) has appointed Felipe M. Medalla, former governor of Bangko Sentral ng Pilipinas (BSP), as an independent director. 

“Mr. Medalla brings with him years of economics and finance experience from the perspective of the government sector, all of which equip him with expertise and proficiency in attending to the needs and requirements of the company,” SMC said in a statement.

Mr. Medalla was elected to the SMC board after a board meeting on Thursday.

He assumes the position on the SMC board left vacant by Ramon F. Villavicencio, who resigned on July 31.

Although no reason was given for Mr. Villavicencio’s resignation, he had earlier stepped down from his roles as chairman and director of Basic Energy Corp. due to health issues.

Mr. Medalla served as the governor and chairman of the Monetary Board (MB) of the BSP from July 1, 2022, to July 2, 2023.

He was a member of the MB from 2011 to 2022.

He holds a PhD in Economics from Northwestern University in the United States.

SMC shares dropped 1.11%, closing at P98 each on Thursday. — Revin Mikhael D. Ochave