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Delivering on a dream

The EY Entrepreneur Of The Year 2024 Philippines has concluded its search for the country’s most visionary leaders shaping opportunities and transforming industries. It is a program of the SGV Foundation, Inc., with co-presenters: the Asian Institute of Management, the Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange.

Rosemarie P. Rafael
Chairperson and President
Airspeed Group of Companies

ROSEMARIE P. RAFAEL is a prime example of entrepreneurial resilience and innovation. Her remarkable journey, from humble beginnings as a ticketing agent to leading one of the top logistics companies in the Philippines, is a story of determination, business acumen, and visionary leadership.

After her stint as a ticketing agent, Ms. Rafael joined a cargo agency but soon realized the limitations of her role, driving her to follow her dreams and carve her own path.

“As early as then, I wanted to do things that would impact other people,” she recalled.

Despite challenges in a male-dominated industry, her unique mix of determination, motherly care, heart for people, and vision set her apart.

In 1985, with six employees and a single delivery van, Ms. Rafael founded Airspeed International Corp. From the start, she focused on building trust-based relationships rather than purely transactional ones, which attracted a loyal customer base.

Airspeed faced many challenges early on, but within five years, it surpassed her former employer and was recognized by the International Air Transport Association (IATA). Her vision expanded Airspeed’s offerings, including international and domestic multi-modal freight forwarding, customs clearance, specialized logistics, storage solutions, and e-commerce fulfillment. Today, Airspeed operates in over 90 countries, serving thousands of stakeholders.

Ms. Rafael is passionate about supporting small- and medium-sized enterprises (SMEs), which she calls “the backbone of the Philippine economy.”

“If we really want to be competitive in the ASEAN region, we really have to help our SMEs — give them access to tools, resources, access to finance, and access to markets,” she said.

Through initiatives like PINASPEED SME Program, which offers discounted delivery rates, access to trainings and trade fairs, and online marketplace through the Kahanga-hangang Pilipinas — an e-commerce digital platform showcasing MSME products from various regions of the Philippines — she helps SMEs grow alongside Airspeed.

The COVID-19 pandemic was a critical test for her leadership as commercial flights were grounded. She made the bold decision to charter flights, ensuring continued service despite global disruptions. “We were able to feed our people because of that particular decision,” she narrates.

Airspeed’s success with major clients prompted Ms. Rafael to strengthen her corporate governance skills, which opened new growth opportunities. Her problem-solving abilities were further highlighted when Airspeed successfully delivered a critical medical item from Singapore with only hours to spare, saving a life in the process. “So, it’s not just about delivering. This is the joy that we have in what we do,” she says.

Under her leadership, Airspeed prioritizes sustainability through Environmental Social and Governance (ESG) initiatives like using e-vehicles, recycling packaging, and consolidating trips to reduce environmental impact. Moreover, Airspeed is proud to be women-led, with over 50% of its workforce being female, including LGBTQIA+ employees. Women hold 70% of their top executives and 45% of middle-tier managers.

“Diversity and inclusion are values that extend beyond the company to its suppliers and partners,” she said.

As chairperson of the Women Business Council Philippines and ASEAN Women Entrepreneurs Network, she champions women’s leadership and economic empowerment. Through public speaking and NGO involvement, she advocates for the success of women in business, inspiring future female leaders. 

Looking ahead, Ms. Rafael aims to expand Airspeed’s presence beyond the Philippines, standardize logistics processes, and upskill the workforce to compete in the ASEAN region. Airspeed’s digital platforms like UnboxMe and Pinaspeed, which cater to e-commerce, also demonstrate her commitment to innovation and support for microbusinesses.

Her leadership exemplifies the power of resilience and purpose-driven business. “We want to have an impact not only within our company, among the employees and the stakeholders, but also in the communities that we serve,” she said. “We can make it happen.”

Media sponsors are BusinessWorld and the ABS-CBN News Channel. Gold sponsors are SteelAsia Manufacturing Corp., Uratex, and Converge ICT Solutions, Inc. Silver sponsor is International Container Terminal Services, Inc. Bronze sponsor is Lausgroup Holdings, Inc. Banquet sponsors are Robert Blancaflor & Groups, Inc., Bounty Fresh Group Holdings, Inc., and Vista Land & Lifescapes, Inc.

The winners will be announced on Oct. 23, 2024. The EY Entrepreneur Of The Year 2024 Philippines will represent the country in the World Entrepreneur Of The Year 2025 in Monte Carlo, Monaco in June 2025. The EY Entrepreneur Of The Year program is produced globally by Ernst & Young (EY).

Empowering the Philippine electricity market in an evolving and transforming energy landscape

IEMOP hosted this year’s Philippine Electric Power Industry Forum, themed “Powering a Sustainable and Secure Energy Future for the Country,” last April 5 at the Iloilo Convention Center.

As required by Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA), the Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) serves as the independent market operator of the Wholesale Electricity Spot Market (WESM), a centralized venue among large-scale electricity buyers and sellers.

Established in 2018, the IEMOP is responsible for pursuing the objective of the WESM of having a fair, competitive, and reliable electricity market in the Philippines. It is focused on facilitating electric trade and delivering market solutions, and it serves as a platform for wholesale electricity trading, along with demand forecasting, monitoring and settlement. It is tasked as well with adopting the best practices in market solutions and operations, ensuring transparency, accessibility, and efficiency in the evolving energy landscape.

As it marks six years of serving the electric power industry this year, the IEMOP strives to guide and empower the Philippine electricity sector through its recent capacity-building, knowledge-sharing, and development initiatives, among others.

“Over the past six years, IEMOP has been steadfastly contributing to development and innovation in the energy industry, achieving several significant milestones such as the integration of Mindanao into the WESM and, more recently, the commencement of the Ancillary Service Market which has transformed WESM into a co-optimized energy and reserves market,” IEMOP President and Chief Executive Officer Atty. Richard J. Nethercott said in a statement.

“As the energy landscape evolves, IEMOP remains dedicated to adopting best practices in market operations and exploring new ways to innovate, all while upholding the core WESM principles of competition, transparency, accessibility, and efficiency,” he added.

“IEMOP acknowledges the invaluable support of the DoE (Department of Energy), ERC (Energy Regulatory Commission), PEMC (Philippine Electricity Market Corp.), market participants, and all stakeholders as it marks its 6th year of market operations. IEMOP is committed to continuously improve as an organization and face the challenges of an ever-evolving electricity market.”

Empowering gatherings

Since last year, IEMOP has aimed to support the growth and development of the electric power industry through a number of events for capacity-building, collaborations, and discussions.

IEMOP hosted this year’s Philippine Electric Power Industry Forum, themed “Powering a Sustainable and Secure Energy Future for the Country,” last April 5 at the Iloilo Convention Center.

For instance, IEMOP hosted this year’s Philippine Electric Power Industry Forum (PEPIF) last April 5 at the Iloilo Convention Center in Iloilo City. The forum brought industry players to strengthen collaborations and build partnerships across the sector. It also highlighted the challenges, opportunities, as well as shared the best practices and explored the latest trends and development in the electric power industry.

Themed “Powering a Sustainable and Secure Energy Future for the Country,” this year’s PEPIF topics included, among others, “Philippine Energy Transition Plan — Opportunities and Challenges in the Renewable Sector,” “Achieving 100% Rural Electrification through Renewable Energy,” “Achieving RE Mix Targets while Ensuring Reliable Supply for End-Users,” and “Country’s Path Towards Achieving a Sustainable and Secure Energy Future.”

IEMOP’s Capacity Building Exchange on Electricity Markets Forum was also another successful initiative, bringing energy stakeholders and groups in one space. This three-day forum is designed to equip industry players with electricity market design, practices and programs implemented in electricity markets in other jurisdictions. This forum was funded by the US Department of State in partnership with the United States Energy Association (USEA) and in coordination with the DoE, ERC, and other energy stakeholders and groups.

In partnership with global consulting and market insights company Deloitte, IEMOP also hosted a workshop exploring the increasing integration of renewable energy systems in the country. This workshop aimed to share insights on energy transition, develop a high-level road map, and strategic approaches for navigating the shift to the renewable energy landscape.

IEMOP also held a Kumustahan session with the Philippine Rural Electricity Cooperatives Association, Inc. to discuss the latest updates and developments in the electricity market.

The IEMOP also recently held a “Kumustahan” session with the Philippine Rural Electricity Cooperatives Association, Inc. (PHILRECA), among others, which served as another platform for discuss-ing the latest updates, developments and the ECs concerns in the market. It also emphasized the organiza-tion’s commitment to maintaining strong communication with its participants and stakeholders. This session was organized in coordination with the DoE, ERC, and the National Grid Corporation of the Philippines (NGCP).

As more private sector players are transitioning to sustainability, efforts to ramp up energy transition is seen, with many targeting for more renewable energy share in their grid. Leading this charge, the Green Energy Option Program (GEOP) is making sustainable actions easier for the electric power industry. GEOP is a government program designed to allow businesses to source their energy directly from renewable energy suppliers. This program provides a sustainable solution for industry players, promoting the use of low-carbon sources and decreasing the country’s dependence on nonrenewable sources, all while reinforcing their commitment to environment sustainability.

In light of this, the IEMOP spearheaded a series of retail market focus group discussions and took part in various GEOP campaigns organized by a climate advocate group, which emphasized the impact of GEOP and empow-ered end-users to choose renewable energy in meeting their energy requirements.

“The Green Energy Option Program, subsumed under the competitive retail energy market, is a mechanism to empower end-users to choose renewable energy in meeting their energy requirements,” Engr. Arjon Valencia, corporate planning and communications manager of IEMOP, said.

Also, as a central registration body for the retail market (RCOA and GEOP), the IEMOP is responsible for managing the whole process and facilitating information exchange for the program.

Optimizing capacities

Embarking on another milestone, IEMOP launched the pilot stage of the Reserve Market on Dec. 26, 2023 and implemented full commercial operations on Jan. 26, 2024. The pilot stage was designed to enhance the opti-mization of market operators and system operators interfaces, alongside streamlining the central scheduling and dispatch of contacted ancillary services, and automating real-time dispatch of committed ancillary services.

Pilot stage launch of the Reserve Market

Through the Reserve Market, the IEMOP endeavors to ensure sufficient and reliable power supply across the country. Ultimately, the Reserve Market will focus on co-optimization of electricity by providing a range of electricity services that create the best energy mix. Additionally, it will serve as a platform for investors tapping into new opportunities in regards with generating capacities for both energy and reserves. This initiative supports WESM’s goals in offering efficient yet affordable electricity in the market.

“The pursuit of a co-optimized electricity market has been a challenge since the beginning of the WESM. [But] various institutions, together with IEMOP and other stakeholders, have worked together to finally see the dawn of a co-optimized WESM. This indeed is an important achievement,” Mr. Nethercott said in a previous statement.

“The operation of the Reserve Market in the Philippine WESM is a testament to our shared commitment to the growth of the Philippine Energy Sector; a growth that ensures reliability, embraces innovation, and promotes competition, all leading to transparency and reasonableness of our power rates,” Atty. Monalisa Dimalanta, chairperson and chief executive officer of the ERC, said in another statement.

The ceremonial launch of the WESM in the Mindanao grid at Malacañang

In addition, the IEMOP also marked a milestone in the integration of the Mindanao grid to the WESM, which President Ferdinand R. Marcos, Jr. said will help lower power rates and bolster investments and economic activity in the region.

Following its ceremonial launch last year, WESM Mindanao has marked success in the first month of its operations. According to the IEMOP, the Effective Spot Settlement Price (ESSP) reported was at P5.23 per kilowatt-hour, which was driven by the significant supply margin in the region, averaging at 1,429 megawatts (MW).

Commencement of the commercial operations of WESM in Mindanao at the IEMOP control room

Moreover, WESM Mindanao’s scheduling and dispatching generators during the initial months of operations is found to have boosted the security and reliability of the electricity supply in the region’s grid. Notably, in efforts to support the region’s trading participants, the IEMOP is running roadshows, focus group discussions, as well as being actively involved with stakeholders.

Alongside the significant increase of system demand and electricity prices, one of the year’s standout projects, the Mindanao-Visayas Interconnection Project (MVIP), was launched and is now fully operational, con-necting Mindanao to the power grids of Visayas and then Luzon.

“The Mindanao-Visayas Interconnection Project has significantly improved supply security in the Visayas and Luzon grids by allowing excess power of up to 450 MW to be exported from the Mindanao grid. On average, The MVIP allowed an average of 341 MW to be exported to Visayas, whereas the Leyte-Luzon HVDC link connecting Visayas to Luzon provided an average of additional 296 MW to support meeting the demand in the Luzon grid,” the IEMOP said in a statement. — Angela Kiara S. Brillantes

CEB finalizes major aircraft deal; most jets arriving by 2029

CEBUPACIFICAIR.COM

By Ashley Erika O. Jose, Reporter

BUDGET CARRIER Cebu Pacific (CEB) has finalized its aircraft order with Airbus SE, making it the largest aircraft order in Philippine history.

“This milestone signals our ongoing dedication to expanding air travel accessibility and affordability, while supporting the Philippines’ broader economic growth and connectivity goals,” CEB Chief Executive Officer Michael B. Szucs said during a press briefing on Wednesday.

In July, Cebu Pacific, operated by Cebu Air, Inc., committed to purchasing up to 152 aircraft from Airbus, valued at P1.4 trillion ($24 billion).

Mr. Szucs said the company’s agreement with Airbus covers 102 A321 new engine option (NEO) and 50 A320neo family.

“The minimum commitment is for 70 aircraft. The first commitment will be by 2029, but there is a possibility that we could, under certain conditions, bring in some aircraft ahead of that timeline,” Mr. Szucs said.

CEB said previously that it had also selected Pratt & Whitney GTF engines to power its newly purchased aircraft.

“The selection of Airbus and Pratt & Whitney underscores our focus on operational efficiency, sustainability, and innovation, ensuring that we continue to deliver the highest standards of service while significantly reducing our carbon footprint,” Mr. Szucs said.

Airbus Executive Vice-President Benoît de Saint-Exupéry has expressed confidence that adding NEO aircraft to CEB’s fleet will support the budget carrier’s expansion of short-haul flights.

“We’re confident that these additional A321neo aircraft will contribute strongly to the all-Airbus operator’s next phase of expansion as one of Asia-Pacific’s leading low-cost carriers,” he said.

Airbus’ NEO aircraft is known for its enhanced fuel efficiency, representing the latest generation of Airbus planes designed to be highly compatible with sustainable aviation fuel (SAF).

“The GTF engine will enable Cebu Pacific to continue to expand the number of routes it offers to passengers, while delivering industry-leading fuel efficiency and sustainability benefits,” Pratt & Whitney President of Commercial Engines Rick Deurloo said.

Mr. Szucs said the budget carrier has assured that funding for the aircraft order is in place. Additionally, CEB is considering financial institutions to help finance the purchase.

“On the funding, anything around pre-delivery payments, essentially the cost that needs to be made will be made out of operating cash flow. That is how we always go,” Mr. Szucs said.

CEB aims to capture the growing travel demand in Manila, citing the recent takeover of Ninoy Aquino International Airport operations by New NAIA Infrastructure Corp., led by San Miguel Corp. (SMC).

“In terms of where we’re going to deploy this, we see a lot of development here in Manila. It is an enormous metropolis with great potential, and it’s now getting infrastructure development,” he said.

SMC is also developing the P740-billion Bulacan International Airport or the New Manila International Airport, which is expected to start to be operational by 2028.

“We need to have an entirely new set of aircraft to come in and take up the opportunity that sits at Bulacan. So that’s a major growth that we need to put in to coincide with that,” he said.

The airline currently serves 35 domestic and 26 international destinations across Asia, Australia, and the Middle East.

IT-BPM sector faces pressure to report cyber incidents

FREEPIK

THE PHILIPPINES’ information technology-business process management (IT-BPM) sector is facing increased pressure to report cybersecurity breaches, an expert said.

“I think there is double pressure to do reporting because you report to someone abroad,” Dominic Vincent D. Ligot, head of artificial intelligence and research at the Information Technology & Business Process Association of the Philippines (IBPAP), said during a forum on Wednesday.

“These firms are interested in knowing if there are cybersecurity policies in place,” he said in a separate interview with BusinessWorld. “Especially those coming from places like Europe, where they have very strict privacy laws. Of course, the US is our biggest geography,” he said.

“But you have the likes of JPMorgan Chase & Co. These are banks. They would not send work here if they were not confident that they can secure the data,” he added.

When asked about the impact of cybersecurity incidents on IT-BPM firms, he highlighted the potential loss of credibility.

“Other than India, the Philippines is the next choice. But, for example, if we see the credibility of the Philippines fall, then the third-rate countries will be the ones to step up,” he said.

Mr. Ligot noted that cases of cyber breaches in IT-BPM are low. One of the most recent ones involved Maxicare Healthcare Corp., a third party.

He said that as the industry creates more jobs in the country, it should also be mindful of its third-party relationships.

“The problem is no one really reports incidents because our laws and policies prevent companies from reporting, and unfortunately, this is being weaponized by the threat actors,” said Angel T. Redoble, chairman and founding president of the Philippine Institute of Cyber Security Professionals.

He said cybercriminals threaten firms that if they do not pay, they will tell regulators that they have been compromised.

“It’s not encouraging our organizations or businesses to report because you get penalized,” Mr. Redoble added.

He also said firms do not necessarily have to build their own cybersecurity systems but can outsource third-party services, which must be end to end.

“An end-to-end cybersecurity practice covers the four layers of defense: the governance layer, the risk layer, the compliance layer, and the operations layer,” Mr. Redoble said.

Internally, he said properly informed and equipped users become a force multiplier. This means that as you secure the users, the business and enterprise follow through.

“So instead of calling them your weakest link, you start training them to become your force multiplier and your cybersecurity evangelist. With the change of mindset, you change the culture of the organization,” he said.

Mr. Ligot said IBPAP put together a framework called the 4Es, which comprises education, engineering, enforcement, and ethics, intended not just for AI. — Aubrey Rose A. Inosante

Raslag’s Pampanga project targets to power 24,000 homes

RASLAG Corp. has activated its 36.646-megawatt-peak solar power plant in the municipality of Magalang in Pampanga, the renewable energy company said on Thursday.

The Pampanga solar power project, the company’s fourth and largest solar facility to come online, is expected to produce 53 gigawatt-hours of electricity and power 24,000 homes annually.

Raslag is also expecting P285 million in revenues in its first year of operations.

The project has started testing and commissioning to connect to the 69-kilovolt transmission line of the National Grid Corp. of the Philippines.

“We are thrilled to have already completed four organic projects to help meet our nation’s growing energy demand. The RASLAG-4 project marks another step towards putting power back into the hands of Filipinos,” Raslag President and Chief Executive Officer Robert B. Nepomuceno said in a statement.

With the latest project, Raslag’s total installed capacity increased to 77.844 megawatts (MW) in two years of being a publicly listed company.

The company is aiming to increase its renewable energy portfolio to at least 1,000 MW by 2035, with three more projects already underway.

Its next solar project will rise in Sta. Rosa, Nueva Ecija, and is targeted to come online by 2026.

In January, Raslag announced its plan to purchase land parcels with an estimated aggregate area of over one million square meters in the province for around P807.73 million. The sites will house Raslag 7 and Raslag 8 solar projects.

The company develops, owns, and operates solar power plants to provide utility-scale renewable energy to grid customers.

At the local bourse on Thursday, shares in the company increased by 3.81% to close at P1.09. — Sheldeen Joy Talavera

Robinsons Hotels to invest P10B in hotel dev’t

ROBINSONSHOTELS.COM

THE P10-billion investment will add more than 990 room keys to the portfolio of Robinsons Hotels and Resorts, RLC said in a statement to the stock exchange on Thursday.

The investment includes the launch of the ultra-luxury NUSTAR Hotel in Cebu, the lifestyle brand Grand Summit Hotel in Cebu and Pangasinan, and the first and only Filipino-owned five-star hotel brand Fili in Bridgetowne Estate in Quezon City.

“These developments will not only solidify Robinsons Hotels and Resorts’ position as a leader in the hospitality sector but also elevate its standing among globally recognized brands catering to a wide range of market segments,” RLC said.

“The P10-billion investment is poised to drive long-term growth, enhance guest experiences, and position Robinsons Hotels and Resorts as a key player in the country’s thriving tourism and real estate sectors,” it added.

RHR claims to be the largest and most diversified hotel group in the country with 30 properties in 20 cities and municipalities nationwide. It has nearly 5,000 room keys, according to the company’s website.

RHR’s other properties are The Westin Manila, Crowne Plaza Manila Galleria, Dusit Thani Mactan Cebu, and Holiday Inn Manila Galleria.

On Thursday, RLC shares rose 0.38% or six centavos to P15.66 per share. — Revin Mikhael D. Ochave

Tribu takes on timeless tunes

CULTURAL GROUP Tribu will be transporting audiences to the romantic canals of Venice and serenading them with classical opera arias, Broadway melodies, and Disney tunes.

The showcase on Oct. 26 will take place at Teatrino, The Promenade in the Greenhills Shopping Center, San Juan City.

Presented by Ephesus Teatron Group, the concert will see group members Sweet Samaniego-Buchanan, Margarita Roco, Terence Guillermo, Nazer Salcedo, and Onyl Torres put on a family friendly extravaganza.

“We want the show to provide entertainment and musical education that will resonate with audience members of all ages,” said Ms. Samaniego-Buchanan, who is also the musical director, at a press conference on Oct. 1.

Performing alongside the five classically trained singers will be special guest Nicole Laurel-Asensio, known for her modern takes on classic music genres. The show is arranged by Pipo Cifra.

Tribu traces its roots to the Aliw Award-winning cultural group Tribung Pinoy from the 1980s, led by the late Danny Dolor, an ardent advocate of Filipino culture. Ms. Samaniego-Buchanan, a University of Santo Tomas Conservatory of Music-trained coloratura soprano, had the opportunity to sing with this iteration of the group, with her mentor Gloria Dizon Coronel.

In 2011, Mr. Dolor received an invitation from the Cultural Center of the Philippines to mount a concert titled Harana sa Dapit Hapon. Because reuniting the pioneers of Tribung Pinoy proved to be a challenge, Ms. Samaniego-Buchanan instead continued its legacy by forming the five-piece vocal ensemble that Tribu is today.

The repertoire for the upcoming concert will consist of “specially arranged immortal Filipino songs ranging from timeless kundiman, beloved folk songs, captivating zarzuelas, and stirring patriotic anthems, to well-loved Original Pilipino Music,” she said.

Speaking with BusinessWorld, she added: “The repertoire is what it is because of the varied range of talents and interests the five of us have. What happens is we naturally list songs we want to sing while together.”

Compared to their concert last year, titled Klasical at the now-closed Onstage theater at Greenbelt, Makati, the upcoming edition will have more medleys of Disney tunes (think “Bibbidi-Bobbidi-Boo” from Cinderella) and popular musicals like Les Miserables. Their repertoire of opera arias and kundimans will make up a huge part of the show.

“For an arranger like me, it’s a joy to work with such experienced and professional singers such as the five of them. It makes my job much, much easier, knowing the wide range that they can pull off individually and as a group,” Mr. Cifra told BusinessWorld.

During the pandemic, Tribu held several online shows — still available on YouTube — ensuring that they continued to hone their craft.

In 2023, the group released its first album, Klasical Tribu: A Collection of Immortal Filipino Folk Songs. Their activities over the years earned them the accolades Best Cultural Group at the 2023 Aliw Awards and Outstanding Vocal Ensemble at the 2023 Live Entertainment, Arts, and Festival (LEAF) Awards.

Aside from performing with Tribu, the five members are music educators in various Philippine schools and universities. When asked what their goal is for the future, they all responded with a resounding dedication to “help grow music education in the Philippines.”

“That’s why we make our shows fun, engaging, and very informative, with the narrator role giving insight to everything we perform,” said Ms. Samaniego-Buchanan. “Filipinos love music, and Tribu aims to give everyone the opportunity to learn about different kinds of it.” — Brontë H. Lacsamana

Aboitiz group taps Irish firm for Laguindingan airport

ABOITIZ InfraCapital, Inc. is partnering with Ireland-based daa International for the upgrade and operations of the Laguindingan International Airport in Misamis Oriental.

“Aboitiz InfraCapital will partner with daa International who will assist and lend its expertise in airport operations as technical services advisor,” the company said in an e-mail on Thursday.

The infrastructure arm of the Aboitiz group has secured the contract to upgrade, operate, and maintain the Laguindingan Airport in Northern Mindanao.

The Department of Transportation said Aboitiz InfraCapital is set to sign the concession agreement for Laguindingan within this month, while it is set to take over the operations and maintenance of the airport by April next year.

“We are excited to take on revitalizing Laguindingan airport and collaborating with stakeholders to create a world-class facility that serves travelers and the community alike,” Aboitiz InfraCapital President and Chief Executive Officer Cosette V. Canilao told the stock exchange on Thursday.

According to the company, the proposed P12.75-billion Laguindingan airport project includes the development, renovation, and expansion of existing facilities.

The company said it intends to fund the budget for the airport upgrade and operations through a mix of debt and equity.

“This will cover the airport’s passenger terminal building, required equipment installation, and airside and landside facility enhancement and development for a 30-year concession period,” it said.

daa International is an Irish airport operations management subsidiary of Ireland’s Dublin Airport Authority.

According to its website, it offers airport operational management services through major global airports like Dublin International Airport, Red Sea International Airport, and King Khalid International Airport in Saudi Arabia.

“Building on our experience at the award-winning Mactan Cebu International Airport, we are excited to bring our home-grown Filipino brand of airport operations to Misamis Oriental,” said Aboitiz InfraCapital Vice-President for Airport Business Rafael M. Aboitiz.

Aboitiz InfraCapital GMR-Megawide Cebu Airport Corporation manages the Mactan-Cebu International Airport. 

The company has also submitted unsolicited proposals for the operations, maintenance, and development of the New Bohol-Panglao International Airport, Bicol International Airport, and Iloilo International Airport.

The group secured original proponent status for the New Bohol-Panglao International Airport, which will undergo the Swiss challenge by November. — Ashley Erika O. Jose

Megalomania

NATHALIE EMMANUEL and Adam Driver in a scene from Megalopolis.

Movie Review
Megalopolis
Directed by Francis Ford Coppola
MTRCB Rating: R-16

CAME OUT of Megalopolis feeling a lot of things but what I did not feel was disappointed — not a bad thing but not necessarily a good thing either.

I run hot and cold on Francis Ford Coppola. Thought his first two Godfather films were classically well-written if visually conventional, too-carefully curated portraits of a corrupt  American family, thought Apocalypse Now was a vividly directed Vietnam war movie that had little to do with the actual war, thought The Conversation (easily his best early work) was a nicely done portrait of loneliness and introverted paranoia.

I actually prefer Coppola’s wilder, less disciplined later works: the lowkey monochromatic Rumble Fish, the emotionally extravagant One From the Heart (my favorite), the beautifully mounted Bram Stoker’s Dracula (despite Keanu Reeves as an allegedly British real estate agent, and a haphazardly grafted love story), and now this, his wildest most undisciplined yet, basically a retelling of the Catilinarian conspiracy transposed to modern-day New York.

Call the picture a prequel to Fritz Lang’s Metropolis, only instead of telling how the city heaved in conflict and was nearly brought to ruin, Coppola tells of how the city was constructed despite all odds.

The setting is America, only an alternate America where Rome didn’t fall, and the nation’s greatest city New York is instead called New Rome (maybe the most unsettling element in this parallel world is the total lack of an Asian presence — no Filipino faces, no Indian saris, no Chinese calligraphy on storefronts or billboards, no sushi or izakaya or Korean BBQ shops, it’s as if half the planet had ceased to exist).

Two men face each other in opposition: architect/inventor Cesar Catilina (Adam Driver) and mayor Franklyn Cicero (Giancarlo Esposito). Catilina wants to build Megalopolis, a city within the city; Cicero opposes Catilina because… well it isn’t clear why. We’re supposed to assume Cicero, being one of the city’s powers, is threatened by Catilina’s rising trajectory, and feels he must bring the younger man down; their conflict reads as Coppola’s parable on an iconoclast threatening the studio-established status quo, the city itself a metaphor for this passion project the said iconoclast took over 40 years to make.

Cicero is readily countered though — he happens to have a daughter Julia (Nathalie Emmanuel) who takes it upon herself to investigate Catilina, his private life, and the possibility that he murdered his wife. Julia draws closer to Cesar, and… well you can guess the rest.

The conflict represents only half the dramatic fireworks: in the B plot Cesar’s mistress Wow Platinum (Aubrey Plaza) leaves Cesar to marry Hamilton Crassus (Jon Voight), Cesar’s uncle and banker, then schemes to keep her former lover under her thumb.

On top of startling effects both practical and digital, the intricate set design, the various cameras and lighting equipment put to innovative use, there’s the acting which, to put it charitably, is highly stylized — a caricaturish, even cartoonish, version of the kind of larger-than-life performance you see in opera, probably cultivated through Coppola’s acting exercises and constant improvisation. Results can be bizarre — Shia Lebouf as Clodio (Cesar’s jealous cousin) was reportedly a nightmare to deal with and some of his unpredictably is caught onscreen. Of the cast Driver, Emmanuel, and Esposito are allowed to retain their dignity (to their relief I’m guessing), while Aubrey Plaza as Platinum seems able to internalize all that stylization and produce her own aura of comically sensual menace — think an unholy cross between Ida Lupino from They Drive by Night and Linda Fiorentino from The Last Seduction only funnier, the single best piece of evidence on film that Coppola might be on to something here, acting-wise.

Megalopolis is to be constructed out of Megalon, a “bio-adaptive” material invented by Cesar apparently out of his grief and passion for his dead wife. Not only is it capable of creating unusually organic structures, it enables Cesar to stop, rewind, fast-forward time; cause objects to rise in the air; heal bullet wounds; receive light on one side and transmit it on its other (essentially allowing any tunic made of the material to become invisible). Megalon is in effect Coppola’s mega-macguffin, a plot device to turn Cesar into the film’s Prospero, taking to the stage in his final appearance in Coppola’s (sorry, Shakespeare’s) final play.

Maybe my biggest problem with the film (other than the “stylized” acting) is how vague this all is — “Megalon” being the biggest sin, up there with James Cameron’s “Unobtanium.” Is the material psychoactive? Is it manufactured or grown? What goes into its production? How can it be employed? The finished city is only partly visible, obscured by the fact that the material glows like a mass of optic fibers, or Hollywood’s notion of the human spirit lighting it up from within (Coppola reportedly looked at the designs of Neri Oxman, who has a cameo in the film and who fabricates what might be called biologically inspired material — looking at pictures of her exhibits and the constructs on display, they have a fascinating solidity and complexity of texture the filmmaker’s “buildings” never manage to achieve). Half the surreal images in this film can apparently be explained by Megalon, which takes away from surrealism’s magic (a trick loses power when explained), at the same time it leaves the more rational with too many unanswered questions. Questions that, when you think about it, can easily remain unanswered if they had been asked in an early scene then dismissed, preferably with a comic quip.

Comic dialogue or at least witty dialogue can cover or make up for a lot of sins, at least they do me, but Coppola and his cast are apparently too busy trying to come up with some kind of observational truth to bother. The only one who seems able to produce on the fly is Plaza — and it may be because she bats her huge eyes, flashes that wicked grin, and you’re dazzled into believing she’s being witty, or at least funny; her seduction of LeBouf might be a balletic comic classic.

(Skip this paragraph if you plan to see the film!)

On a more serious note, Coppola inserts shots of the homeless and hungry assembled in front of security barriers, shaking the fence links. Cesar never really gives them more than a glance; if anything, Clodio pays them more attention, if only because he believes them to be a source of power (they are, but at one’s peril). I can understand inserting the footage — Coppola wants to raise the dramatic stakes — but how does Cesar actually feel about these folk? He declares Megalopolis open to all, but how’s that supposed to work? Are millions supposed to just walk in and claim a building? What if someone pisses on a wall or picks up a tire iron and starts smashing? What if two people want the same dwelling? Details of how this new utopia will work, the philosophy underpinning it and why it’s so different might have helped, and I’m aware said philosophy might have already been stated and I might have missed it along the way. Like I said: vague.

The film’s pace is a slog for the most part; what helps sustain interest is Coppola’s visual style, and his vision of transforming New York — sorry, New Rome — sorry, the film — into Cesar’s — sorry Coppola’s — dream city — sorry, dream movie. The style works best when Coppola’s working with actual buildings, footage of which was shot years back on high-definition video and 24 fps digital cameras, later with sets and period exteriors made to look like New York (actually, various locations in Georgia, which offered tax incentives). He manages to make this mix of old footage, interior shots, and shots made to look like exteriors recall the scale and grandeur and variety of Lang’s Metropolis, which is quite an achievement (it helps that Metropolis itself was saddled with a sentimental half-baked script and God’s own arsenal of outsized models and fascinating practical effects).

Pause to note that Coppola does pay tribute to Abel Gance’s Napoleon (which he helped restore) with his occasional triptych imagery, and in one lovely moment evokes a scene out of Night of the Hunter, of Shelly Winters silently sitting in a drowned car, her hair waving languidly in the undercurrent — just some of the Easter eggs Coppola includes that I managed to recognize and recall, and they (the Laughton one anyway) are unforgettable.

Megalon isn’t the only element that affects the passage of time: when Adams and Emmanuel and Esposito are onscreen and we’re asked to believe in their romance and his opposition time passes slowly (I do eventually believe but it took effort, and a nod to Esposito for giving Cicero the necessary emotional weight — when his feelings start to shift it’s like watching a great battle cruiser changing course — and Emmanuel for making such a contradictory character, if not convincing at least intriguing, a mixture of the innocent and the knowing in a fragile suspension); when Plaza and LeBouf and Voight are onscreen the film kicks into high gear and purrs away in a manner that helps us accept the onscreen shenanigans as just part of the comedy (if Coppola had recast this as black satire the whole might go down easier).

But it is what it is, and Coppola apparently is sticking by this, his released version, opting for delirious romanticism over madcap chaos — which wouldn’t be the first time a longtime director’s late work has proven controversial or at least puzzling: Alejandro Inarritu’s Bardo: False Chronicle of a Handful of Hard Truths runs almost three hours and is even less comprehensible (I liked it); David Lynch’s Twin Peaks: The Return is essentially an 18 hour movie with an even more opaque plot and visual style (loved it). Coppola’s generation of ’70s American filmmakers are feeling their age and thinking of the legacy they’ll leave behind — I mentioned Lynch but there’s also Spielberg with his autobiographical The Fabelmans (liked it just fine), Scorsese with his long-gestating Silence (27 years — loved), Schrader with one small film after another, some of them career bests (Master Gardener, The Card Counter, above all First Reformed).

Brian De Palma has been quiet for some five years, though a search reveals he has two projects under development; Philip Kaufman hasn’t been heard from for maybe 12 years. Charles Burnett hasn’t done a fiction theatrical feature since the 1990s but has been surprisingly active, doing shorts and documentaries and TV work, and has two under development. Elaine May… she was inactive as a director for 26 years till she came up with an episode of American Masters for PBS focused on Mike Nichols (a brilliantly ambiguous work).

And so matters stand unless Coppola (as he’s been known to do in the past) starts tinkering with this “final product,” adding deleted scenes and fiddling with the running time — who knows? Someday we might get a Megalopolis we can actually like without getting a hernia from the effort.

IMF bullish on PHL banking sector

BW FILE PHOTO

THE PHILIPPINE BANKING sector remains strong, the International Monetary Fund (IMF) said, but noted potential risks that need monitoring such as quickening loan growth and vulnerabilities in the real estate sector.

“Our view is that the Philippine banking sector is strong. It has strong capital, liquidity buffers and high profitability,” IMF Mission Chief Elif Arbatli Saxegaard said at a press briefing on Wednesday.

“Of course, there are always some pockets of vulnerabilities that we would advise the (central bank) to be vigilant about,” she added, noting that systemic risks within the financial system remain moderate.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed the combined net income of the country’s banking industry rose by 4.08% to P190.21 billion as of end-June, while total resources of the Philippine financial system jumped by 10.5% to P32.1 trillion at the end of July.

“Of course, another factor in terms of bank profitability will be interest margins and what happens to them as interest rates are reduced. And that really will depend on how the reductions will be passed on to deposit and lending rates,” Ms. Saxegaard added.

BSP Governor Eli M. Remolona, Jr. has signaled possibly cutting rates by 50 basis points (bps) in the fourth quarter. The Monetary Board’s remaining meetings this year are on Oct. 16 and Dec. 19.

The recent cut in banks’ reserve requirement ratios (RRR) will also support bank profitability and, eventually, credit growth, Ms. Saxegaard said, as lenders will have more liquidity. The BSP last month said it will cut big banks’ RRR to 7% from 9.5% effective on Oct. 25.

“Having said that, continued vigilance is warranted against pockets of vulnerability in the real estate sector and the fast-growing consumer credit market,” she said.

“Adjusting macroprudential policy as credit picks up, including by moving towards a positive neutral level for the countercyclical capital buffer, will help preempt the buildup of vulnerabilities.”

For the property sector, there are some segments of the commercial real estate market where vacancy rates remain high, Ms. Saxegaard said.

“As you know, the real estate sector went through a big shift during the pandemic with the departure of the Philippine Offshore Gaming Operators (POGOs), and there are changes in the business outsourcing sector, [with the] work-from-home practices,” she said.

The IMF official added that the BSP must ensure “a strong pickup in credit remains healthy and is going to the healthy borrowers.”

“This is really to point out that the consumer credit market is coming from a low base, but it’s increasing very fast. It’s not a case where we see a huge vulnerability there, but we would like to be vigilant about the fast growth in that segment,” Ms. Saxegaard said.

“Right now, credit growth is more or less comparable to its pre-pandemic averages. So, you know, we don’t anticipate a huge pickup above those levels, but we do expect to see robust growth in credit, a healthy growth in credit.”

Bank lending rose by 10.4% year on year to P12.14 trillion in July, its fastest pace in 19 months, latest data from the central bank showed.

Meanwhile, the IMF said Philippine banks’ non-performing loans (NPL) remain manageable.

“That’s also what we’ve heard from the regulator and also from the banks. They’re currently at about 3.5%, so they do remain manageable,” IMF Representative to the Philippines Ragnar Gudmundsson said at the same briefing.

“There are segments where we see higher NPLs. For instance, the residential real estate market, the NPL level there is still above the pre-pandemic level at 7%, which is precisely one of the reasons why we’re saying that effective supervision and monitoring is important to address some potential vulnerabilities there,” Mr. Gudmundsson added.

Latest central bank data showed the banking industry’s gross NPL ratio went up to 3.58% in July from 3.51% in June and 3.43% a year ago. This was the highest bad loan ratio in 25 months or since 3.6% in June 2022.

‘GRAY LIST’
Meanwhile, the IMF also noted the country’s progress in its bid to exit the Financial Action Task Force’s (FATF) “gray list” of jurisdictions under increased monitoring for anti-money laundering risks.

The FATF in its June update kept the Philippines in its gray list for a third straight year or since June 2021.

“We would also like to note that important progress has been made in addressing anti-money laundering and combating the financing of terrorism (AML/CFT) issues, and the current momentum should be maintained to close the outstanding gaps in the AML/CFT framework and achieve prompt removal from the FATF gray list,” Ms. Saxegaard said.

Mr. Remolona earlier said the Philippines would likely exit the gray list by next year as it still needs to address remaining deficiencies identified by the FATF.

The country has acted on 15 out of 18 items recommended by the FATF. The remaining three action items include “demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets; applying cross-border measures to all main sea/airports including detection of false declarations of currency and confiscation action in line with risk; and demonstrating an increase in the prosecution of TF (terrorism financing) cases in line with risk.”

The FATF Plenary, the intergovernmental organization’s decision-making body, usually meets in February, June and October. — Luisa Maria Jacinta C. Jocson

NAIA operator to start collecting curbside fees

PHILIPPINE STAR/AJ BOLANDO

By Ashley Erika O. Jose, Reporter

THE SAN MIGUEL-LED operator of the country’s main gateway expects to start collecting fees this year from vehicles in drop-off or pickup zones beyond the time limit.

“Curbside fees are normal. Other airports have them. There’s a group working on that,” New NAIA Infrastructure Corp. (NNIC) General-Manager Angelito A. Alvarez told reporters on the sidelines of the European Chamber of Commerce of the Philippines Aviation Summit 2024 on Thursday.

He said all fees under the administrative order issued by the Manila International Airport Authority (MIAA) are for implementation this month, with the exception of the passenger service charge, which will be imposed in September next year.

The NNIC is composed of San Miguel Corp. (SMC), one of the Philippines’ largest and most diversified conglomerates; RMM Asian Logistics, Inc.; RLW Aviation Development, Inc.; and Incheon International Airport Corp., the operator of South Korea’s main international airport.

The group took over the operations and maintenance of NAIA on Sept. 14 after offering to allocate 82.1% of NAIA revenues to the government.

“The [readjustment of rates] is actually beyond us because the terms of reference have been set by the government. We have no choice but to comply. But maybe we can study it further,” Mr. Alvarez said.

Under MIAA’s Revised Administrative Order No. 1, landing and take-off fees for international and domestic air traffic movement will be higher effective Oct. 1.

Landing and take-off fees are charges levied for the use of airport facilities and services during aircraft landings and takeoffs.

Local airlines said the imposition of higher landing and take-off charges may result in higher airfares.

“Cebu Pacific confirms that increases in landing and takeoff fees at NAIA will impact both airlines and passengers,” Cebu Pacific said in a statement.

“These adjustments, covering fees, dues, charges, and assessments, are expected to influence ticket pricing. However, AirAsia Philippines is still carefully evaluating the potential operational impact of the new airport fees,” Steve F. Dailisan, head of communications and public affairs at AirAsia Philippines, said in a Viber message.

Philippine Airlines did not respond to BusinessWorld’s request for comment by the deadline.

“Already, travelers are hit with excessive airport fees, inflated parking rates, and steep landing and take-off charges — fees that are being imposed long before the airport upgrades have even been completed or their benefits realized,” AirportWatch spokesperson Danilo Lorenzo Delos Reyes said in a statement.

NNIC also defended the hike in parking fees at the airport, saying that it is part of its overall plan to help improve airport flow.

The previous parking fees unintentionally invited the misuse of the airport’s limited parking spaces, NNIC said, adding that this created a parking shortage for passengers, which resulted in congestion.

In an administrative order effective Oct. 1, NNIC said the standard parking fees for cars will increase by 25% to P50 from P40 for the first two hours, while it will also impose a P25 charge for succeeding hours or a fraction thereof.

Standard overnight parking fees for cars will increase fourfold to P1,200 from the previous P300, according to NNIC.

For motorcycles, NNIC said it will impose P480 parking fees for a 24-hour stay and P2,400 for buses.

Further, Mr. Alvarez said that the company may study the call to exempt airport workers from the parking fee increase.

“We can review this, but as far as we are concerned, based on the study, the rates imposed are reasonable,” he said.

InstaPay, PESONet transactions rise to P10.9 trillion

THE VALUE of transactions done through InstaPay and PESONet rose to P10.9 trillion in the first eight months of 2024, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Central bank data showed that transactions coursed through the two automated clearing houses climbed by 34.1% as of August from P8.13 trillion in the same period a year ago.

In terms of volume, transactions done via InstaPay and PESONet also surged by 64.5% year on year to 916.58 million from 557.25 million.

Broken down, the value of transactions done through PESONet jumped by 27.1% to P6.37 trillion in the eight months ended August from P5.01 trillion in the comparable year-ago period.

The volume of PESONet transactions likewise rose by 9% to 65.56 million from 60.16 million.

Meanwhile, the value of InstaPay transactions stood at P4.52 trillion in the January-August period. This was 44.9% higher than the P3.12 trillion recorded a year prior.

The volume of transactions that went through the payment gateway soared by 71.2% to 851.03 million in the period from 497.09 million the previous year.

PESONet and InstaPay are automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System framework.

PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks.

Meanwhile, InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

Digital payments made up 52.8% of the volume of retail transactions in 2023, latest BSP data showed, up from the 42.1% share in 2022.

In terms of value, 55.3% of retail transactions last year were done online, also rising from 40.1% the year prior.

The BSP wanted at least 50% of the volume and value of retail transactions done online by end-2023 under its Digital Payments Transformation Roadmap.

The increase in digital payments was driven by wider use of online transaction channels among individuals and businesses, the central bank said, with the coronavirus pandemic accelerating this shift.

The central bank wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028, in line with the Philippine Development Plan. — Luisa Maria Jacinta C. Jocson