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DoTr defends planned hike in NAIA charges

Passengers disembark from their vehicles in front of the Ninoy Aquino International Airport (NAIA) Terminal 1 in Pasay City, Oct. 6, 2023. — REUTERS

By Ashley Erika O. Jose, Reporter

THE PLANNED HIKE in passenger service fees at the soon-to-be privatized Ninoy Aquino International Airport (NAIA) would help improve its operational efficiency, the Transportation department said, but analysts said the move is ill-timed and unjustified.

“Certain revenues at the airport will be shared with the government, the Passenger Service Charge (PSC) is excluded from the revenue share. The PSC is one of the largest components of overall airport revenue streams,” Transportation Undersecretary for Aviation and Airports Roberto C.O. Lim said in a Viber message.

The Department of Transportation (DoTr) said the Manila International Airport Authority’s (MIAA) plan to hike fees and charges at the NAIA is based on inflation and the required capital expenditure for the airport’s rehabilitation and capacity expansion.

“The airport needs very significant capital investment to bring it up to an acceptable service standard for passengers, to improve safety and to increase the number of landing and takeoff slots available for airlines,” Mr. Lim said, adding that fees and charges at the airport have not increased for the past 24 years.

The DoTr added that the planned rate increase was also included in the approved parameters, terms and conditions under the tender documents for the NAIA rehabilitation project.

The New NAIA Infrastructure Corp. (formerly SMC SAP & Co. Consortium) in March signed the P170.6-billion contract to operate, maintain and upgrade the country’s main gateway for 25 years. It is set to take over the operations of the NAIA by September.

The government expects to earn P900 billion from the project, or P36 billion a year. This is 20 times bigger than the P1.17 billion remitted by the MIAA annually in the 13 years through 2023, according to the Transportation department.

The passenger service charge is P200 for domestic travelers, while foreign travelers pay P550.

The DoTr declined to reveal exactly how much the passenger service fees will increase, although it is expected to be implemented once the new concessionaire takes over.

However, CitizenWatch Philippines in a statement said the passenger service charge would increase to P390 for domestic travelers and to P950 for international travelers.

“We urge the government and the winning airport consortium to stop this looming hike. It is a brazen, unconscionable imposition on long-suffering passengers who have had to endure inadequate facilities and substandard service in our airports,” CitizenWatch Philippines Co-Convenor Jose Christopher Y. Belmonte said.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines said proposed hike in fees is unjustified.

“Bad justification. SMC will put in the investments required, not the government. The rate increase is justified after the service upgrade, not before,” he said in a Viber message.

The DoTr said it had been in communications with airline associations that agreed the proposed fees and charges are justified and are long-overdue to “rehabilitate NAIA and elevate it from its current dismal condition.”

It also said the government is working to make assets and land available as the new NAIA concessionaire has committed to deliver significant capital investments for the airport.

The New NAIA Infrastructure is planning to build a new passenger terminal building with a total capacity of 35 million passengers per year as part of its commitment to decongest the airport.

“It is a given that airport enhancements require funding. It is not a given though that the only way to raise funding is through an immediate increase in passenger service fees,” Enrico P. Villanueva, a senior economics lecturer at the University of the Philippines Los Baños, said in a Viber message.

Passenger air travel fees, like any service fees, are price sensitive and any increase might discourage people from traveling, Mr. Villanueva said.

Mr. Villanueva said that the new airport concessionaire could also look at loans or bond issuances to finance massive capital requirements.

“These instruments allow the spread of cost over a long period of time. Debt service will have to come from existing revenue or new ancillary airport services,” he said. “In cases where demand is price sensitive, price increase may actually result in lower total revenue as demand declines more than price.”

NEDA Board OKs P16.1-B digital infrastructure project

STOCK PHOTO | Image from Freepik

THE NATIONAL Economic and Development Authority (NEDA) Board, chaired by President Ferdinand R. Marcos, Jr. has approved a P16.1-billion digital infrastructure project that seeks to boost internet connectivity in poor areas and improve cybersecurity.

The Philippine Digital Infrastructure Project (PDIP), which will be undertaken by the Department of Information and Communications Technology (DICT), involves the construction of a public broadband infrastructure network. The P16.1-billion project will be financed through official development assistance from the World Bank.

“Broadband services have already opened numerous opportunities for Filipinos, from work-from-home arrangements to digital access to critical public and private services, including the latest technological tools such as artificial intelligence. This project will enable us to connect more Filipinos to markets and networks, spurring economic development,” NEDA Secretary Arsenio S. Balisacan said in a statement.

The NEDA Board also approved adjustments to various parameters of nine infrastructure projects, seven of which are flagship programs.

“The changes pertain to project scope, cost and extension of the implementation period and loan validity,” Mr. Balisacan said.

Changes were made to the Local Governance Reform project, the Infrastructure Preparation and Innovation Facility, the New Cebu International Container Port project, the Light Rail Transit Line 1 South Extension project, and the first tranche of the Malolos-Clark Railway project.

Adjustments were also made in the first phase of the Metro Manila Flood Management Project, the second stage of the reconstruction and development of Marawi, a Mindanao road sector project and the Panguil Bay Bridge project.

“The adjustments to these ongoing infrastructure projects were necessary to ensure their successful completion, advancing our national efforts to expand and upgrade our infrastructure, improve connectivity and create more jobs,” Mr. Balisacan said. — Kyle Aristophere T. Atienza

PHL urged to implement ‘smart’ policies to achieve double-digit growth

WIND TURBINES are seen in Pagudpud, Ilocos Norte. — PHILIPPINE STAR/KJ ROSALES

THE PHILIPPINES should implement “smart” policies that address challenges in power, infrastructure and defense sectors in order to fuel double-digit economic growth, Denmark’s ambassador to the Philippines said on Tuesday.

In his keynote speech at the 45th National Conference of Employers on Tuesday, Ambassador Franz-Michael Skjold Mellbin said that he believes that the Philippine economy’s baseline growth should be about 6-7% “as long as the government does not do anything stupid.”

The government is targeting 6-7% gross domestic product (GDP) growth this year and 6.5-7.5% GDP expansion in 2025.

Mr. Mellbin said some of the past governments have done things that “were less than admirable for [the Philippine] economy and its people.”

“If the government actually does smart stuff, if you get good policies, I believe that the Philippines could go double-digit, once or twice, during the next decade,” he said.

The ambassador said the Philippines is in a good position to take advantage of the opportunities brought by growth in the Asian region.

“The scene is set for sustained economic growth in the Philippines, and let’s make sure that happens,” he added.

However, the Philippines currently faces some key challenges that may hinder sustained growth in the coming years, Mr. Mellbin said. 

“As you know, there are real challenges with power in this country. You have brownouts; millions of Filipinos don’t even have access to power,” he said. “So, there’s no doubt that the Philippines needs more. It needs affordable and stable energy, as it will help the economy grow.”

The Danish envoy said that the Philippines should address power supply issues, if it wants to sustain its growth momentum.

The Philippines should also improve infrastructure, he noted.

“You need better infrastructure, and it’s urgent, and fortunately the government knows,” he said. “It is good that you have good people in leadership that are trying to make solid plans for expanding the infrastructure.”

The Marcos administration is currently implementing an infrastructure program called Build Better More, which is a continuation of the Duterte administration’s Build, Build, Build infrastructure program.

The government has currently identified 185 infrastructure flagship projects with an indicative total project cost of P9.55 trillion.

Mr. Mellbin said the Philippines also has to address defense issues amid “much more pertinent external threats.”

“Pressure from our Chinese friends is quite massive, and we do have very strong allies and friends, including Denmark, when it comes to this,” he added.

There are heightened tensions between the Philippines and China in the West Philippine Sea, especially after a clash that injured a Filipino soldier.

Mr. Mellbin said that he recognizes that these three issues — power, infrastructure and defense — have no real fast fixes, adding the Philippines could explore consensus policies. He said that in Denmark, there is broad-based political consensus on what the country will do in these three areas in the next decade.

He said that there is a need to convince the Philippine government to implement long-standing political consensus on these three areas.

“What you just need to make sure is that from this presidency to the next, they get these three areas right and make sure that they carry over,” he added. — Justine Irish D. Tabile

SM Prime says retail bond offering generates P25B

By Revin Mikhael D. Ochave, Reporter

SY-LED property developer SM Prime Holdings, Inc. on Tuesday said it successfully raised P25 billion through its fixed-rate retail bond offering.

The company listed the bonds on the Philippine Dealing and Exchange Corp. on June 24, SM Prime said in a statement to the stock exchange.

The funds generated will be used to refinance existing debt obligations and to further expand SM Prime’s property portfolio, the company said.

“The successful listing of SM Prime’s fixed rate retail bond Series V, W, and X have been met with overwhelming demand from the investing public, resulting in a three-fold oversubscription that has allowed us to raise an impressive P25 billion,” SM Prime Chief Finance Officer John Nai Peng C. Ong said.

“This remarkable success is a testament to the unwavering trust and confidence that our shareholders, customers, business partners, and the investing community have placed in SM Prime,” he added.

The interest rates for the peso-denominated bonds are set at 6.5754% for Series V maturing in 2027, 6.7537% for Series W maturing in 2029, and 6.9650% for Series X maturing in 2031.

This bond issuance marks the first tranche of SM Prime’s P100 billion shelf registration of fixed-rate bonds, which was approved by the Securities and Exchange Commission (SEC) on May 23.

Sought for comment, Jose Antonio B. Cipres, a research analyst at AP Securities, Inc., said: “The oversubscription implies that investors are already highly satisfied with the yield offered, providing clearer signals for the interest rate outlook moving forward.”

“(We expect the same result), especially if the top property developers will be the one issuing bonds with almost the same yield,” he said in a Viber message.

April Lynn Lee-Tan, chief equity strategist at COL Financial Group, Inc., said that confidence in the property sector remains “a case-by-case basis.”

“SM Prime has good cash flow so it’s not surprising that demand is good,” she said in a Viber message.

The property developer tapped BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers, who are also acting as joint lead underwriters along with BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, Security Bank Corp., and SB Capital Investment Corp.

SM Prime and SM Investments Corp. previously announced its maiden $3-billion multi-issuer European Medium Term Note (EMTN) program. It aims to finance expansion and debt payments. EMTNs are a debt security that are issued and traded overseas.

For the first quarter, SM Prime recorded an 11% increase in its net income to P10.5 billion as consolidated revenue increased by 7% to P30.7 billion led by stronger mall and residential businesses.

SM Prime shares rose by 0.56% or 15 centavos to P27.15 per share on Tuesday.

NALEX, SALEX construction set – TRB

SHIVENDU SHUKLA-UNSPLASH

THE TOLL Regulatory Board (TRB) said it expects the full-scale construction of the P148.30-billion Northern Access Link Expressway (NALEX) project to commence in the fourth quarter.

“We already implemented what we call Balintawak Advanced Works for NALEX. So, by the last quarter of this year, we can do its full-blast implementation,” TRB Executive Director Alvin A. Carullo told reporters recently.

Mr. Carullo said the P152.39-billion SALEX, also known as the Southern Access Link Expressway, is expected to begin construction next year, pending the submission of the final engineering design of the project.

NALEX and SALEX are both components of the Greater Capital Region integrated expressways networks.

NALEX is divided into two phases: the first phase is a proposed 136.4-kilometer expressway connecting Metro Manila, the New Manila International Airport, and Central Luzon, while its second phase, involves a demand-driven expansion from Pampanga to Tarlac City.

SALEX is a planned 40.65-kilometer elevated expressway network consisting of the Shoreline Expressway and three extensions of the Metro Manila Skyway Stage.

Both projects were approved in 2022, with SMC Northern Access Link Expressway Corp. as the project investor and Skyway O&M Corp. as the operator. — Ashley Erika O. Jose

MoCAF festival brings in more artisans, galleries for its 3rd year

THE EXPANSION of the Modern and Contemporary Art Festival (MoCAF) into a bigger platform continues in its third year, with 47 galleries and 11 special exhibitions exemplifying its goal of art inclusivity and dynamism.

From July 5 to 7, MoCAF will present galleries, experiences, and dialogues at the Marquis Events Place in Bonifacio Global City (BGC), Taguig.

The festival will mix both young and established galleries, new and longtime artists — even unknown artisans and underground communities — all in one space, MoCAF’s organizers said at the media launch on June 18.

LARGER VENUE
To execute a more impactful festival, this year it will be held at the four-story Marquis Events Place.

“We have more galleries simply because Marquis has many ballrooms and a courtyard, allowing for more space,” said Coleen Wong, MoCAF’s festival director, during the program.

The Main Ballroom will house the spaces of 24 galleries, with seven being foreign galleries from Malaysia, Singapore, Japan, and France, while the Courtyard will house 13 galleries as part of the festival’s newest segment, MoCAF XTN. The 11 special exhibitions will showcase event-exclusive pieces by Katrina Cuenca and Michael Cacnio, among others, as well as curated shows by the Department of Tourism.

Fourteen artists from last year’s MoCAF Discoveries will return through the various galleries. This year, the program for new artists welcomes 28 members.

“Many have a focus on crafts and artisanal work. We wanted to offer a platform for other forms of art, not just visual arts like painting and sculpture, but also prints, merchandise, and fashion,” Ms. Wong added.

Food concessionaires, live art activations, and panel discussions through MoCAF Dialogues section aim to make the event more exciting. Topics to be discussed will include plagiarism, art conservation, and other relevant art issues.

MoCAF XTN
To extend the event’s reach, this year introduces MoCAF XTN, a format that supports young, potentially game changing galleries, artisanal shops, and artists’ groups.

“This new offering is something that allows younger players to join us so that no one is left behind. We wanted to do more, not just be an art fair, because there are many of those already,” MoCAF’s festival chairman Ricky Francisco told BusinessWorld after the launch.

“We wanted to ensure that we don’t just show established players, but also forms of art beyond high art,” he said.

Neophyte galleries like M Gallery and Nami Art Gallery will showcase both traditional artworks as well as art-inspired merchandise such as clothing, books, pottery, and other forms. The Artisans section of XTN includes the collection of Imao Studios, featuring stickers and tote bags that bring National Artist Abdulmari Imao’s works closer to the youth.

The local and international prints of Spruce Gallery and textile paintings courtesy of clothing brand RIOtaso will also expose festivalgoers to underrated forms of art. Meanwhile, Very Good Gallery, an artist-run space from Imus, showcases the authenticity of the lowbrow art movement, previously shown in their de lata underground shows in the heart of Cavite.

“We believe that art is not just for the rich; it should be for everyone. Vetting is one of the most important things that art festivals do, so we do our homework and bring them to the spotlight,” said Mr. Francisco.

MoCAF 2024 will run from July 5 to 7 at the Marquis Events Place in BGC, Taguig. Attendees can secure their tickets, priced at P300, at www.mocaf.net. Students, PWDs, and Senior Citizens are entitled to discounts on the ticket price. — Brontë H. Lacsamana

DMCI Power sees higher energy sales volume this year

By Sheldeen Joy Talavera, Reporter

OFF-GRID ENERGY GENERATOR DMCI Power Corp. expects a higher energy sales volume this year, propelled by increased demand and dependable operational performance, its top official said.

“I can say that it should be a lot higher than last year because, (in) our experience, for the first five months of this year, it has been a lot higher than last year; (we’ve seen) double-digit growth in volume.” DMCI Power President Antonio E. Gatdula, Jr. said in an interview with BusinessWorld last week.

He noted that last year’s weather was rainy compared to this year’s El Niño conditions, prompting increased use of air cooling appliances to alleviate warmth.

“In terms of availability of our plants, we have not experienced load shedding in Masbate even if we experienced high demand this year,” Mr. Gatdula said.

He added that the company has been prepared and has not experienced any load shedding, or reduction in electricity supply to prevent a complete blackout, across all sites.

In 2023, DMCI Power recorded an energy sales volume of 454 gigawatt-hours (GWh), marking a 7% increase from the 426 GWh recorded in 2022.

This increase was attributed to solid demand and targeted investments in underserved and unserved areas.

As of June 22, Mr. Gatdula noted that the company saw a 12% growth in its sales volume compared to the same period last year.

“Hopefully, weather permitting, we can maintain double digit growth up to the end of the year,” he said.

Mr. Gatdula also said that the company will be spending its “biggest annual capital expenditure” for 2024, which amounts to about P2 billion, on various energy projects.

One of the projects under development is a 12-megawatt wind farm on Semirara Island in Antique province, scheduled to commence operations by the first quarter of 2025.

Mr. Gatdula said the company aims to conduct testing of the wind turbine in December.

Established in 2006, DMCI Power primarily focuses on providing energy to off-grid small and remote islands. Its portfolio includes diesel, bunker, and thermal energy solutions.

Adapting to more modern concepts of love

ILYYPNC/FLAUDYN LAPASARAN

By Brontë H. Lacsamana, Reporter

Theater Review
I Love You, You’re Perfect, Now Change
By Joe DiPietro
Directed by Menchu Lauchengco-Yulo
Presented by Repertory Philippines

THERE are multiple facets of love and many stages in a romance, from dating and relationships to break-ups and marriage. An acclaimed off-Broadway musical comedy from 1996, known for being painfully honest and funny in its approach to this topic, is back to bring its witticisms to an online society.

Its impact is now changed, as one will find in this latest version by Repertory Philippines. The company first handled this material by Joe DiPietro and Jimmy Brooks in 2006, and this time, it made revisions to ensure the narratives apply to the Gen Z experience. Scenarios now include swiping left or right on dating apps, watching Netflix, a gay couple having a baby, and even rude guys sending dick pics.

“We actually had this show way back 18 years ago when we were still at Onstage Greenbelt. This will be different because it’s the first time we are having Menchu direct a play for Rep,” said Mindy Perez-Rubio, the company’s chief executive officer and president, at the preview night of I Love You, You’re Perfect, Now Change.

Under Menchu Lauchengco-Yulo’s watchful eye, the musical revue’s vignettes challenge its four actors to take on 40 characters, each serving fresh takes on modern dating and relationships. It is a challenge met very capably by Gian Magdangal, Krystal Kane, Gabby Padilla, and Marvin Ong, who all shift from one character to the next, complete with costume and body movement and accent changes, as if it were nothing.

“Find someone to love! Someone you think is perfect! And spend the rest of your life trying to change them,” is the funny yet achingly relatable message that the four act out over the course of the play.

Aided by Joey Mendoza’s set design, choreography by Stephen Viñas, projector graphics by GA Fallarme, and lighting by Meliton Roxas, Jr., the actors take us from a romantic dinner date to a busy roadside to a chaotic household to a funeral filled with old people. The actors’ movements and the minimalist set work together to tell an array of stories. Projections of strangers in a crowd amid the hustle and bustle of a metropolis convey the idea of love as simply a part of the ebb and flow of real life, an effective utilization of digital screens in a theater.

Most notably, director Lauchengco-Yulo placed the four actors in roles and songs (given a fresh spin by musical director Ejay Yatco) that brought out the best of them.

Mr. Magdangal, with his towering height, alternates between being a gentle giant and an intimidating hulk. He is hilarious as a man trying his best not to cry at a tearjerker movie while on a date with his girlfriend, and as a gay man speaking to his child in baby talk. The best of his roles is definitely the jailed convict performing “Scared Straight,” a ridiculous matchmaking monologue from hell.

Ms. Padilla’s take on “The Very First Dating Video of Rose Ritz” comes face to face with a divorcee falling apart during her attempt at online dating. It is literal too, with her selfie camera projected on the massive screen onstage allowing us to see her emotions close-up, perfect for the seasoned actress.

Ms. Kane gives a remarkable performance in “Always a Bridesmaid.” The powerful country-style track highlights her strong vocals, cloaked in a believable Southern drawl, as she embodies the mixture of contempt and yearning the character feels.

Mr. Ong shines in the more lowkey yet heartfelt song “Shouldn’t I be Less in Love with You,” a man’s ode to three decades of marriage with his wife. It’s a beautiful piece that gives longtime couples something to connect with, a rare moment of calm on the chaotic highway of love.

The lighthearted ensemble pieces give all four actors the opportunity to interact, with “Single Man Drought” lamenting the poor quality of first dates andMarriage Tango” echoing the frightening realities of the impending lifelong ball and chain.

Younger millennials and older Gen Zs in the crowd related most to “Hey There, Single Guy/Gal,” sung by Magdangal and Kane as two frustrated parents bemoaning their son and his girlfriend’s decision to split and reenter the single life. But perhaps the most endearing, especially to introverts in the crowd, is “A Stud and A Babe,” performed by Padilla and Ong as a couple on a first date discovering that their insecurities are a bedrock for them to connect with each other.

A poignant note to end on is the vignette of an elderly couple who meet at a wake and find a comfortable sort of love. Magdangal and Kane’s rendition of “I Can Live With That” is melancholy and cute, a rare picture of dating at the sunset of one’s lifetime.

While I Love You, You’re Perfect, Now Change first premiered off-Broadway 28 years ago, newer versions like Rep’s allow the revue to morph into something newer generations can enjoy. Perceptive youths may sense that the gay couple and the online dating elements were merely insertions to material that is outdated by today’s standards, with conceptions of love that are not new at all, but the core of the play remains true. Those willing to look past the cringe-inducing sweetness and painful relatabilities will find that it is hilarious and tender, at times ridiculous but also deeply earnest, ultimately a cute and pleasant theater experience.

SEC OKs Greenenergy’s investment in RE subsidiary

LISTED firm Greenergy Holdings, Inc. said it has received approval from the Securities and Exchange Commission (SEC) for an additional investment of P480 million into its renewable energy subsidiary.

The SEC approved the company’s acquisition of 480-million shares in its wholly owned subsidiary, Winsun Green Ventures, Inc., Greenergy said in a stock exchange disclosure on Tuesday.

“The transaction will strengthen the position of the Company in renewable energy (RE) and sustainable community projects,“ the company said.

With the approval of the SEC of the increase, the subscribed shares are now issued to Greenergy, the company said.

With the SEC’s approval of the increase, the subscribed shares have now been issued to Greenergy, the company said.

These stocks were issued as part of the authorized capital stock increase of Winsun from 20 million shares to 500 million shares at P1 each.

Greenergy has already paid P185 million upon subscription, with the remaining balance of P295 million payable within 60 calendar days from subscription.

The company described Winsun as engaged in energy projects, encompassing the exploration, development, and utilization of renewable energy (RE) resources, as well as the importation, exportation, and operation of RE systems and facilities within and outside the Philippines.

Greenergy initially focused on manufacturing specialty semiconductor products before diversifying into renewable energy.

At the local bourse on Tuesday, shares in the company went up by P0.004 or 1.90% to close at P0.21 each. — Sheldeen Joy Talavera

Aliwan Fiesta raises the bar for Philippine festivals

ALIWAN FIESTA 2023 — RENIER LYCES PREPOSE

ALIWAN Fiesta, an event that showcases festive traditions from all over the Philippines, is returning to the streets of Pasay City from June 27 to 29, amid the alternating summer heat and sudden rains.

The annual competition is known for bringing together champions from major dance and pageantry circuits in various regions’ festivals, such as the Dinagyang from Iloilo, the Sinulog from Cebu, and Panagbenga from Baguio.

This year, it kicks off with a first-time event, with homegrown musicians from the various dance contingents vying to win the festival song competition.

“We brought back this component because, aside from the streetdance, we realized the musicians of the contingents play a very important role. We are showcasing the musicians by holding a separate competition on day one, called ‘Tugog ng Aliwan’,” said Ruperto S. Nicdao, president of the MBC Media Group at a June 24 press conference at the Aliw Theater in Pasay City.

“Over the years, we’ve found that the contingents have improved their performances. The existence of this national competition has pushed them to do better, to showcase more artistic choreography,” he added.

The event was conceived in 2003 by the MBC Media Group (then the Manila Broadcasting Company), in cooperation with the Cultural Center of the Philippines (CCP) and the cities of Manila and Pasay.

It brings together the winning performance groups from the multitude of fiestas held throughout the country. The parades held during Aliwan Fiesta are competitions that yield a large cash prize for the winners.

Last year, the parade route was limited to the CCP Complex due to road repairs along Roxas Blvd. in the City of Manila. This year, it will be the same.

“We have to do this so that we don’t add to the city’s traffic problem. Hopefully, next year we can go back to the original parade route, all the way from Quirino Grandstand to here. Many are clamoring for this because that venue and that route can accommodate larger crowds,” said Mr. Nicdao.

Aside from the street dancing parades, there are flea markets featuring products from the different regions, and entertainment care of local musicians. The Pasakalye Concert on June 27, 7 p.m., will feature a star-studded lineup of artists including Dilaw, Ryssi Avila, Arthur Miguel, Yes My Love, and Auxbeat.

There is also a beauty pageant, called Reyna ng Aliwan, on June 28, and a competition in float design joining the streetdance festivities for the Grand Parade on June 29.

Eric Zerrudo, the executive director of the National Commission for Culture and the Arts, told the press that the Aliwan Fiesta has “set a strong standard.”

“They have increased in number and in fervor to study, improve, and train. We’ve noticed that they really look into choreography, narrative, music, lights, and props. There is a strong consciousness now of how festivals make up a huge part of the Filipino culture,” he said.

More information on the parade route and schedule of the competitions and performances can be found on Aliwan Fiesta’s Facebook page. — Brontë H. Lacsamana

Maynilad faces P2-M rebate obligation over Caloocan water quality

UNSPLASH

SOME customers in Caloocan City will receive rebates totaling over P2 million after the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO) penalized Maynilad Water Services, Inc. for poor water quality.

The MWSS RO announced during a public information drive on Tuesday that each of the 3,841 affected water connections will receive a rebate of P530.69, which will be reflected in their monthly bills.

This penalty was imposed due to high levels of bacteria, commonly found in soil, detected at a sampling point in Caloocan City last November.

“The issue arose because the affected area is a dead-end pipeline lacking looping or a blow-off valve, leading to potential water stagnation at the end of the line,” the regulator said.

The penalty was calculated for a period of 21 days, from Nov. 29 to Dec. 19, 2023, as determined by the MWSS RO.

During this 21-day period, the affected water distribution center discharged a total volume of 102,690 cubic meters of water.

The regulator also imposed a financial penalty on Maynilad in the form of rebates to affected customers due to issues with water color and residual chlorine at the Anabu Modular Treatment Plant and its supply zone in Imus City, Cavite.

The MWSS RO will conduct a public information campaign on the rebate program in Imus on Wednesday, June 26.

In a statement, Maynilad acknowledged the regulator’s decision and reiterated its commitment to maintaining quality and ensuring customer safety.

“We want to assure our customers that these incidents were promptly addressed and resolved. In response, we have implemented enhanced process interventions, including intensified pipe flushing, accelerated pipe replacements, and expedited leak repairs and closure of illegal connections,” Maynilad said.

The water company said that the health and safety of its customers and the integrity of its water supply remain to be its top priorities.

“Maynilad is committed to providing the highest quality water and will continue to take proactive measures to ensure the reliability and safety of our services,” the company said.

“We also continue to work closely with the MWSS Regulatory Office and the Department of Health in monitoring the quality of the water supply distributed to our customers,” it added.

Maynilad serves the cities of Manila, except San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Government fully awards P15B in Treasury bills

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Tuesday at yields below secondary market levels with the Bangko Sentral ng Pilipinas (BSP) widely expected to maintain its benchmark interest rates at its meeting this week.

The Bureau of the Treasury (BTr) raised P15 billion as planned from the T-bills it offered on Tuesday as total bids reached P39.795 billion, or more than twice the amount placed on the auction block.

Broken down, the BTr borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P14.81 billion. The three-month paper was quoted at an average rate of 5.666%, unchanged from the previous week’s award. Accepted rates ranged from 5.648% to 5.675%.

The government likewise made a full P5-billion award of the 183-day securities, with bids reaching P10.71 billion. The average rate for the six-month T-bill stood at 5.93%, inching up by 1.6 basis points (bps) from the 5.914% fetched last week, with accepted rates at 5.912% to 5.95%.

The maturity date for the six-month tenor was adjusted due to a holiday.

Lastly, the Treasury raised the planned P5 billion via the 364-day debt papers as demand for the tenor totaled P14.275 billion. The average rate of the one-year debt slipped by 1.5 bps to 6.031% from the 6.046% quoted last week. Accepted yields were from 6.029% to 6.034%.

The government fully awarded its T-bill offer as the yields fetched for the three tenors were all lower than the prevailing secondary market rates, the Treasury said in a statement.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.7278%, 5.9581%, and 6.0775%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

The Treasury made a full award as T-bill rates mostly moved sideways from the previous week’s auction and as the offer fetched decent demand, a trader said by phone.

“The market is awaiting the BSP’s decision at the MB (Monetary Board) meeting this week,” the trader said.

T-bill rates were lower than secondary market yields amid expectations that the BSP will keep its policy settings unchanged at its meeting on Thursday, matching the US Federal Reserve’s latest decision to maintain a “healthy” interest rate differential, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The BSP is widely expected to maintain its policy stance for a sixth straight meeting on Thursday amid persistent risks to the inflation outlook and a weak peso, analysts said.

All 15 analysts in a BusinessWorld poll conducted last week expect the Monetary Board to keep its policy rate at a 17-year high of 6.5% at its meeting this week.

The central bank has raised borrowing costs by a cumulative 450 bps from May 2022 to October 2023 to tame inflation.

Headline inflation accelerated to 3.9% year on year in May from 3.8% in April, but marked the sixth straight month that inflation settled within the BSP’s 2-4% annual target.

For the first five months, the consumer price index averaged 3.5%, matching the central bank’s baseline forecast for the year.

BSP Governor Eli M. Remolona, Jr. previously said the earliest the central bank can begin easing its policy stance is in August, adding they could cut rates by 25-50 bps in the second semester.

Mr. Remolona has also said the BSP does not need to wait for the Fed to begin its own easing cycle.

Meanwhile, the Federal Reserve this month held its target rate steady at the 5.25-5.5% range for a seventh straight meeting, with expectations of the start of rate cuts being pushed to as late as December. Fed officials are also now projecting only one rate cut this year versus previous expectations of three.

Market participants are still expecting about two rate cuts this year, pricing in an over-60% chance of a 25-bp cut in September, according to LSEG’s FedWatch, Reuters reported.

Tuesday’s T-bill offering was the last for the month. The BTr has raised P60 billion as planned from the short-term papers in June as it made full awards at its four auctions.

On Wednesday, the BTr will offer P30 billion in reissued 20-year Treasury bonds with a remaining life of 19 years and 11 months.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy with Reuters

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