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ACEN set to triple investments in Australia’s energy transition

ACEN Corp. is on track in its renewable energy expansion in Australia and is poised to triple its investments in the country’s energy transition, the Ayala-led company’s top official said.

“ACEN fully supports Australia’s energy transition, and the company is gearing up to triple its Australia investments in the next three years,” ACEN President and Chief Executive Officer Eric T. Francia said in an e-mailed media release on Sunday.

Mr. Francia made the statement as President Ferdinand R. Marcos, Jr. and Australian Prime Minister Anthony Albanese signed a strategic partnership agreement on Friday to boost the two countries’ bilateral ties.

The partnership was concluded during the visit to the Philippines of Mr. Albanese, the first Australian leader to do so in 20 years.

The move is part of Australia’s launch of “Southeast Asia Economic Strategy to 2040,” which includes seeking mutual trade and investment opportunities in key sectors in the Philippines such as agriculture and food, education and skills, resources, and the clean energy transition.

ACEN quoted Mr. Albanese as saying that he met with Mr. Francia and that the renewable energy company currently has 2 billion Australian dollars (AUD) of investments in the foreign country.

“They have a large presence in New England region, in Tasmania, as well as investment coming in Western Australia in the Pilbara,” Mr. Albanese was said to have commented in an interview.

“They expect that investment to increase to 6 billion AUD in three years — a substantial investment in Australian renewables, putting online something like three gigawatts of additional capacity in the Australian energy market,” he said, describing ACEN as a “significant company which is making a difference and wants to make more of a difference.”

After a brief meeting with Mr. Albanese on the partnership signing in Malacañang, Mr. Francia renewed the company’s commitment to expand in Australia.

The Australian government is currently rolling out a 20-billion AUD program called “Rewiring the Nation” to upgrade and modernize the country’s electricity grid and infrastructure.

“ACEN appreciates the government’s efforts to augment the much-needed transmission capacity to enable the growth of renewables. Our projects are particularly reliant on the Central West Orana renewable energy zone and the Marinus link transmission projects, among others,” Mr. Francia said.

To date, ACEN has around 4,200 megawatts of attributable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia. The energy company is targeting to expand its renewable energy portfolio to 20 gigawatts by 2030.

On Friday, shares in the company went up by two centavos or 0.4% to P5.01 apiece. — Sheldeen Joy Talavera

Inditex’s Zara launches its second-hand platform in France

ZARA.COM/UK

MADRID — Spanish fashion retailer Zara would expand its service to sell, repair, or donate second-hand clothes in France last Thursday, its owner Inditex said the day before.

The service, available through Zara’s stores, its website, and a mobile app, already exists for its British customers since last October. The company’s chief executive Oscar Garcia Maceiras has said it will be launched in Germany also this year.

The company aims to extend the life of customers’ Zara clothes, in this way it will contribute to the reduction of waste and the consumption of new raw materials, it said in a statement.

Zara has also said 40% of clothing pieces will be made with recycled fibers by 2030 and it is backing charities such as Moda Re which manage textiles waste. The company seeks to reduce its carbon emissions by 50% by 2030 and by 90% by 2040.

Zara is following other fast fashion brands such as its main competitor H&M in offering products for resale at a time when the global second-hand apparel market is growing. — Reuters

SEC warns public versus investment-taking firms SERP Worldwide, Sprhy

THE Securities and Exchange Commission (SEC) cautioned the public against investing in two entities, which the regulator said are unauthorized to solicit investments.   

In an advisory posted on Sept. 7, the SEC warned about Secret for Elimination of Rampant Poverty Worldwide Corp. (SERP Worldwide) as it did not secure prior registration to solicit investments despite being registered as a corporation.   

According to the SEC, individuals representing SERP Worldwide are allegedly enticing the public to invest their money in the entity. A prospective investor is asked to pay P10,000 to avail of the SGEP10-10K package with a promise to earn 30% to 60% retail profit along with various bonuses.   

“The public is hereby advised to exercise due care and caution in investing their money in this type of scheme being offered by SERP Worldwide and/or its agents. In the instant case, the scheme of SERP Worldwide has the characteristics of a pyramid scheme,” the SEC said.    

“The public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of SERP Worldwide and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” it added.     

In a separate advisory also posted on Sept. 7, the SEC warned consumers about investing in Sprhy Gold Investment/Sprhy Cash Paluwagan as it has the characteristics of a Ponzi scheme.   

The SEC said Sprhy Gold, which is not registered with the commission, allegedly solicits investments at a minimum of P5,000 up to P500,000, which is supposed to earn 15% up to 30% after 30 days.   

“The offering and selling of securities in the form of investment contracts using the Ponzi scheme, which is fraudulent and unsustainable, is not a registrable security. The commission will not issue a license to sell securities to the public to persons or entities that are engaged in this business or scheme,” the SEC said.   

“The public is hereby advised not to invest or to stop investing in the investment scheme being offered by Sprhy Gold Investment/Sprhy Cash Paluwagan as well as to any other entities having the same or similar schemes and to exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of Sprhy Gold Investment/Sprhy Cash Paluwagan,” it added. — Revin Mikhael D. Ochave

Ayala Land expects sustained profit growth as holidays near

JOGGERS, runners, and bikers enjoy a car-free Sunday morning along Ayala Avenue in Makati City as the Ayala Land in partnership with the local government of Makati turns Ayala Avenue as an outdoor activity haven for families from 6 a.m. to 10 a.m. for the remaining Sundays of September which aims to promote a healthy lifestyle. — PHILIPPINE STAR/MIGUEL DE GUZMAN

LISTED property developer Ayala Land, Inc. (ALI) is bullish about its performance for the rest of the year, which a company official described as booming as the holiday season nears.

“We’re ending the year really good. It’s booming. Our estates are welcoming new stores,” said Marianne C. Roa, group head for marketing and communications for corporate, estates and malls, on the sidelines of a launch event in Makati City on Sunday.

“We’re also looking forward to more people coming into our communities,” she added.

Ms. Roa said ALI is projecting higher net income and growth this year on the back of increased consumer spending during the holiday season.

“It is not just the estates, but even the malls. The Philippines has the longest celebration and as early as September, we’re welcoming everyone to our communities, to our estates and to our malls,” Ms. Roa said.

“We are looking forward to that (better net income) because people are out. The trajectory towards recovery is really good. In fact, in some [of our] estates, the foot traffic is already [at] pre-pandemic [level],” she added.

Aside from the retail segment, ALI is also expecting more people to purchase properties amid stronger spending confidence.

“When people get their bonuses, that is the time you think [about] where I can invest my money or where I can put it so it will grow. In a way, it is also affected or there is an impact to it (property buying),” Ms. Roa said.

For the first half, ALI logged a 41% increase in its attributable net income to P11.39 billion on the back of higher revenues.

Meanwhile, ALI launched on Sunday its car-free initiative along Ayala Ave. in Makati City as part of its commitment to promote a healthier lifestyle and environmental sustainability.   

Under the initiative, Ayala Ave. will be closed to vehicular traffic every Sunday morning from 6 a.m. to 10 a.m. throughout September. The area will be available for walking, running, and cycling activities.

The company said car-free Sundays is in collaboration with Make It Makati, an initiative that presents the city’s latest offerings and events, as well as supported by the local government of Makati City.

“Both the city of Makati and Ayala Land are steadfast in our commitment to sustainability. We are excited to bring you car-free Sundays for an entire month — a time where the streets are yours to enjoy, free from the usual traffic. It’s an opportunity to run, bike, skate, walk your pets, or partake in any fitness activity you love,” ALI Senior Vice-President and Group Head of Estates Robert S. Lao said

“This initiative is more than just an event — it’s a step towards creating a more livable, breathable city, promoting fitness and wellness, and fostering a sense of community among us all,” he added. — Revin Mikhael D. Ochave

Brazen, original, poetic: hip-hop’s mark on fashion continues

Nike Air Jordan high top sneakers circa 1985 were one of the items on view at the exhibit ‘Fresh, Fly, and Fabulous: Fifty Years of Hip Hop Style.’ — FITNYC.EDU

NEW YORK — As hip-hop celebrates its 50th anniversary this year, elements of the culture are expected to be on the runway during New York Fashion Week from Sept. 8-13, when American designers will showcase their latest collections.

“Hip-hop fashion is defined by its brazenness, its originality, its verbal symphony. You know, hip-hop is poetry,” said costume designer and entrepreneur June Ambrose, a creative director at Puma.

The global culture — which includes music, dance, and fashion — was born on Aug. 11, 1973, when DJ Kool Herc created continuous breakbeats on two turntables at a party in New York’s Bronx borough.

“The tipping point … was when we started seeing average Joe Blow, white guy with the two kids and the picket fence and the PTA wife, in his Timberlands,” said fashion expert and author Constance White. Rappers adopted the rugged yellow boots, originally designed for blue-collar workers, as streetwear, turning the brand into a style statement.

Earlier this year, the Museum at FIT celebrated hip-hop fashion with an exhibition titled “Fresh, Fly and Fabulous: 50 Years of Hip Hop Style.” Pieces included large, gold chains known as Dookie chains, door-knocker earrings, and looks from the past and present.

Ms. Ambrose said it has never been about just the clothes, but about disrupting and transforming fashion’s status quo.

“When you see artists like Jay-Z, how he took that baggy jeans silhouette and we added a button-down shirt to it,” elevating the look for consumers, she said.

Ambrose herself created some of the most iconic costumes in many hip-hop music videos in the 1990s, and worked as a stylist to Jay-Z, Mariah Carey, Mary J. Blige and others.

After five decades, luxury and fast-fashion brands are collaborating with hip-hop designers instead of just being inspired by them.

“Us not asking for permission to work with high fashion designers,” Ms. Ambrose said. “We were purchasing, investing in them, and then we were also creating iconic looks and images that they too were influenced by. And we started to kind of realize that we could all live in the same space.”

White said hip-hop’s influence in fashion can be seen from editors and stylists behind the scenes to musicians now serving as designers.

She cited Virgil Abloh, the first Black man to head Louis Vuitton as the creative director for menswear, until his death in 2021. He was succeeded by rapper-music producer Pharrell Williams in February.

“All these are a result of the influence of hip-hop, hip-hop culture, hip-hop fashion. And we don’t necessarily think about that and appreciate it,” White said. — Reuters

The Velocity Q&A: Kidd Yam (Corporate Affairs Director BMW Group Asia)

Kidd Yam addresses participants of the BMW Driving Challenge in Buri Ram, Thailand. — PHOTO BY KAP MACEDA AGUILA

Interview by Kap Maceda Aguila

THE CHANG INTERNATIONAL Circuit, the first FIA Grade 1 circuit in Thailand, is located in BuriramProvince right in the lower northeast region of the country — some 400 kilometers from Bangkok.

Recently, it proved to be the perfect venue for the BMW Driving Challenge — offering customer and media participants from Malaysia, Singapore, Thailand, and the Philippines a rare chance to push internal combustion engine (ICE)-powered and electrified BMWs on the track, attack gymkhana-style courses, and even off-road sections (in the case of the BMW iX) — ultimately getting a better appreciation of what these machines are capable of beyond the everyday drive. Featured models included the M2, M340i, 330e M Sport and the iX xDrive40 Sport.

In attendance was Kidd Yam, once the chief of Mini Asia and now BMW Group Asia Corporate Affairs Director. After joining the Munich-headquartered brand group in product, sales, and marketing posts in Malaysia in 2010, Mr. Yam went on to Singapore in 2018 for his regional role in Mini.

On the sidelines of the event, we sat down with the executive for a chat. Here are the excerpts.

VELOCITY: What’s the message that the company wants to convey through this event? Why these particular models?

KIDD YAM: All in all, it’s to show that BMW M models are really very track-focused and performance-oriented. This is also a good experience and opportunity to showcase some of the technologies on the newer models like BMW X4M and, of course, the BMW M2 which is coming soon to the Philippines. This is an opportunity for our customers not only in the Philippines but also from Singapore, Malaysia, and Thailand to experience all the featured models. BMW is also going strong with electrified models and we do have the BMW iX that we let our participants drive around the track, and feature its X Drive feature through an off-road course. Not often can you bring a car like the iX off-road, and we’ve shown that the car is able to push the limit — utilizing all the four wheels through the X Drive technology. We also have our other electrified models, not just the full BEVs, like the 330e model available for the guests to experience not only on the track but through gymkhana exercises.

Maybe it’s correct to say that the average person isn’t really used to the idea of electric vehicles being performance vehicles that can also excel on the track — in the case of the iX, not just the track but even off-road situations.

Yes, at the end of the day the iX is a fully electrified model, of course. More importantly, it also features the X Drive technology, which is different from the combustion engine setup in that this is a purely electrified drivetrain system, and features the similar X Drive which is basically BMW terminology for an all-wheel drive system.

BMW, particularly in the Philippines, has been pretty busy lately with the release of new models. I’ve previously asked you this, but how is the supply situation now?

We all can see from the news that most brands and manufacturers are still facing issues with semiconductor supply. But, I think, thanks to the flexibility in terms of BMW production capability, we managed to secure a sufficient number of semiconductors and electronic components that we need to build the cars. More importantly for the Philippines, because of the lead time that we have from the production of the cars to their shipment to the country, most of the time there would already be sufficient units to cater to the first group of customers who order BMWs. More important is the communication, together with SMC Asia Car Distributors Corp. (official country BMW importer and distributor), to the customers to manage their expectation and communicate precisely when exactly the cars can actually be available.

That being said, the demand has been pretty strong — as we have seen for the past few months and even years in the Philippines… and, touch wood, so far, supply has been pretty constant.

Okay, so allocation-wise, it’s getting better?

Exactly. This is also through a lot of intense discussion and communication from our side, together with our importer in the Philippines, and also with our HQ in Munich as well, to ensure that we basically meet the demand together with the supply that we can provide for the markets like the Philippines.

BMW is aggressively rolling out electrified models — both plug-ins and BEVs — in the region. What is the brand seeing in the ASEAN region, particularly in the Philippines, that is giving it the confidence to introduce these vehicles? How would you describe the region’s readiness for electric models?

I can’t speak on behalf of other ASEAN countries save for the countries that BMW Group Asia covers (Bangladesh, Brunei, Cambodia, Guam, Indonesia, Laos, Myanmar, Nepal, New Caledonia, the Philippines, Singapore, Sri Lanka, Tahiti, and Vietnam). First things first: I think the most important thing is what the customer wants. And we can see the trend toward greener vehicles or a greener drivetrain that our customers are demanding. One of the options is, of course, the electric vehicle. We can see this happening already, not only in the Philippines but also in Singapore, in Indonesia, where our customers are actually asking us for more options in electrified vehicles. Hence, we have more and more electrified vehicles being introduced in the market. And of course, talking about the government policy, on one hand, most governments are trying to push the introduction of more electric vehicles, not only because they want to meet the demand for cleaner or more sustainable practices… but because there’s a demand from the citizens of the countries. One good example is Singapore. The Singaporean government has committed that by 2030, only green vehicles can be allowed to be sold and registered.

Green meaning at least a hybrid?

At least a hybrid or full electric — or it could be a new technology introduced later on. In Indonesia and the Philippines, there are some incentives that have been rolled out by the government. I think this is highly appreciated by the people but, of course, there are more things to be considered as well. We have to think about the infrastructure in terms of charging stations, or whether the national grid can support the increased use of electricity across the board. But like I said, more important is customer or user demand.

Do you see a future wherein both electrified options and ICE-powered vehicles can coexist? Will you push one type over the other? What’s the strategy of BMW for the region?

It’s a very difficult question to answer, but in terms of what the BMW Group has announced publicly, we are using the term “technology openness.” We are not putting all our eggs in one basket, but at the end of the day, it also depends on customer needs; if there’s still a demand for combustion engines in certain markets. Take a country as big as the Philippines; you can’t be electrifying all the vehicles yet. You still have commercial vehicles that need to run on diesel or gasoline. And of course, in urban cities where electrified vehicles are more prominent or could have a potential to be utilized, then they can be the options there. If there’s still a demand for combustion engine models, then we will still continue to have that kind of model — at least in the next five to eight years. “The power of choice” is also one of the terms that BMW has been using. For example, when we launched the iX3, we mentioned that we still have the diesel, the petrol, we have the plug-in, and we have the fully electrified. So it really depends on what the customer needs.

Meralco still looking to replace Sual Power’s terminated supply

MANILA Electric Co. (Meralco) said it is still looking for a replacement for one of its suppliers after the termination of the power supply agreement (PSA) with Sual Power, Inc.

“[The replacement] is still ongoing. We just have to follow the rules of the DoE (Department of Energy) and the ERC (Energy Regulatory Commission) for finding emergency power supply agreements, and then we will also consider the laws of the PSA on the long-term supply sourcing of Meralco,” Lawrence S. Fernandez, vice-president and head of utility economics of Meralco, said in an online briefing on Friday.

Meralco said it would raise power rates in September by P0.5006 per kilowatt-hour (kWh) to P11.3997 per kWh due to higher generation charges on the back of the weakening of the peso against the dollar, as well as higher fuel prices.

The power rate was up from P10.8991 per kWh in August and after three consecutive months of decreases.

Of the generation charge’s components, charges from PSAs and independent power producers (IPPs) increased by P1.0362 per kWh and P0.4776 per kWh, respectively.

PSAs accounted for 39% while IPPs contributed 36% to the overall generation charge.

Mr. Fernandez said the contract termination with Sual Power largely contributed to higher generation charges as cheaper supply from a power generation company was lost.

“We lost [a] lower-cost source of power and we had to replace it [with] other sources. Unfortunately, those other sources, including the spot market, were more expensive than what is being supplied before by Sual Power,” Mr. Fernandez said.

In July, San Miguel Global Power Holdings Corp. terminated the 330-megawatt PSA between its unit and Meralco after the Court of Appeals sided with the supplier to end their contract.

The court decision prompted Meralco to partially source replacement power from the Wholesale Electricity Spot Market (WESM).

Mr. Fernandez said that before the termination, Sual Power supplied Meralco at P3.90 per kWh, which is less costly compared with the average P5 per kWh from the WESM.

For September, the WESM share in Meralco’s cost of power purchased from suppliers increased to 23% from 17% previously.

Meanwhile, Meralco said that transmission charges slightly decreased by P0.0081 per kWh after the National Grid Corp. of the Philippines halted the collection of 3% franchise tax from consumers, as directed by the ERC.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by 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

Losing momentum

PRESSFOTO-FREEPIK

In last week’s Yellow Pad column (Sept. 4) entitled “Erosion of reforms,” we raised our concern over the attempts to subvert and derail past and future economic reforms. We appealed to the technocracy of the Marcos Jr. administration, given their credibility and expertise, to convince the President to be one with them in upholding the reforms.

We ended the piece by imploring: Kung hindi tayo kikilos, sino ang kikilos? Kung hindi ngayon, kailan pa? (If we do not move, who will? If not now, when?)

The answer to this became clear with the forced resignation (or the “expiration of tenure,” as official Malacañang documents later read) of one of the administration’s dedicated reformers, Department of Finance (DoF) Undersecretary Cielo Magno, on Sept. 6.

Si Usec. Cielo ang kumibo, si Usec. Cielo ang tumindig (It was Undersecretary Cielo who moved, it was Undersecretary Cielo who stood up). With or without the Marcos administration, she is now the face of reform.

Usec. Cielo, who was a Senior Trustee of Action for Economic Reforms (AER) and took a leave when she accepted Secretary Benjamin Diokno’s invitation to work with the Department of Finance (DoF), was forced to resign from her post, supposedly due to a disagreement over the administration’s policies.

The Executive Secretary justified her termination by accusing her of “not supporting the administration” and “being set on maligning [the administration]” from the get-go. This accusation is baseless, foul, and simply unfair.

Usec. Cielo is most competent and professional, and her removal from the DoF damages the very goals the Marcos administration itself set for the Philippine economy.

She took the lead in advancing the administration’s economic reform agenda. She forwarded policies that had the blessing of her principal, Secretary Diokno, and which were announced officially by the President himself. She met with stakeholders, attended legislative hearings, and provided sound technical expertise to move the reforms forward, during this most difficult period where reforms are being diluted left and right in the name of vested interests.

One of the most important campaigns she led was the reform of the military and uniformed personnel (MUP) pension regime, a politically difficult measure which Secretary Diokno said was needed to prevent a “fiscal collapse” and put an end to the hemorrhaging of the budget. When she resigned, military officers on social media praised her for listening to their concerns and clearly explaining the policy during the dozens of consultations she and the DoF held for uniformed officers all around the country. The bill successfully hurdled the House committee but still faces opposition from some quarters.

The mining fiscal regime reform was another measure Usec. Cielo advanced, not only to generate additional revenue but to get rid of uncertainty which deterred investments in the country. She injected rationality into the discussions as the former National Coordinator of Bantay Kita, who had long advocated transparency and accountability for the extractives sector. In 2022, she facilitated the Philippines’ re-entry into the globally prestigious Extractive Industries Transparency Initiative (EITI) and was the focal point person for the PH-EITI, boosting investor confidence.

She also defended important past reforms from dilution. She upheld the principles of the fiscal incentive rationalization system in the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and secured its implementation, adopting firm rules on the Value-Added Tax (VAT).

To raise new revenues, she supported health taxes, specifically on alcohol, sugar-sweetened beverages, and unhealthy food, to fund President Marcos’ food stamp program and other critical social programs.

Her efforts contributed to improving our economic performance and making the country more attractive to investments, thereby benefiting the country and the Marcos administration.

Policy disagreements should be welcomed. The strongest policies arise from a process that subjects proposals to intense scrutiny from those within government.

Further, Usec. Cielo’s questioning of the government’s price cap on rice did not disparage nor undermine. Economists have urged the government to seriously reconsider this policy because of its harsh effects on the poor and incongruity with basic economic principles.

President Marcos should welcome healthy criticism and difference of opinion in line with his promise of unity. His Cabinet is diverse, filled with people associated with different political colors. Usec. Cielo’s political leanings as an engaged private citizen prior to being appointed are thus immaterial and never got in the way of her ability to effectively work as a public servant.

She understands that reforms need to be done for the benefit of society. In an interview with the Inquirer, she said: “The agenda of the people, regardless of who is in Malacañang, remains the same. If the government bungles its job, it is the people who will suffer. We do our part to serve the people.”

Her forced departure means that the administration is jeopardizing the opportunity to put in place positive reforms. It signals the defeat of reform champions and the reforms.

The Marcos administration lost an opportunity to demonstrate to the world that the Philippines is serious in becoming the next economic miracle. The stalling, or even reversal, of reforms, punctuated by the loss of a reformer to forward and defend them, has stark consequences on our country’s investor certainty and enhanced creditworthiness. All bets are off, as the saying goes. The global community is already reacting to the backlash arising from Usec. Cielo’s forced resignation — Helen Clark, former prime minister of New Zealand from 1999-2008, wrote on X (formerly Twitter): “[Cielo Magno] has done [an] outstanding job as first a civil society member and then a Philippines government representative for implementing countries on [the] EITI Board. [I] am sure that Cielo’s dedication to transparency and accountability will continue post-government service.”

The desire of economic managers for the country to have a credit upgrade to an A rating is no longer on the horizon. Worse, the backsliding might even get us a credit downgrade.

This only compounds the ongoing challenges being faced by our economic team: rising inflation, a ballooning fiscal deficit, and lackluster growth. The pressure is on for Secretary Diokno to find a replacement as competent and dedicated as Usec. Cielo. Our capacity to hit our targets in Ambisyon 2040, the Medium-term Fiscal Framework, and the President’s eight-point agenda, all hang in the balance.

 

Filomeno S. Sta. Ana III coordinates Action for Economic Reforms and Pia Rodrigo is its strategic communications officer.

Dior’s former creative director Marc Bohan, 97

INSTAGRAM.COM/DIOR

PARIS — Marc Bohan, a fashion visionary and the longest-serving designer at Dior, has died at 97, the French luxury fashion house said.

“Dior is deeply saddened to learn of the passing of Marc Bohan, an immense and influential visionary who was Creative Director of our House for nearly three decades,” Dior said in a late Friday statement on social network X.

“His originality and modernity have never ceased to inspire. Our thoughts are with his family and friends.”

Mr. Bohan, who died on Sept. 6, began working for Christian Dior in 1957, creating collections in London.

He became the house’s third artistic director in 1961, when he was asked to lead the French label after his predecessor Yves Saint Laurent was drafted into the French military.

He went on to oversee the brand as artistic director for nearly three decades until 1989, developing a reputation for creating stylish, feminine clothes for a wealthy clientele that included Princess Grace of Monaco, movie stars Sophia Loren and Elizabeth Taylor, and opera diva Maria Callas. — Reuters

AboitizPower begins fleet electrification

Posing with BYD ETP3 units are (from left): BYD ASEAN Regional Director for Energy Storage System and New Battery Department Leo Zhang, BYD Philippines Assistant GM for Sales and Operations Jasper Zhang, AboitizPower Chief Strategy Officer Jokin Aboitiz, Visayan Electric Company President and COO Engr. Raul Lucero, AboitizPower Distribution Utilities Cotabato Light President and COO Val Saludes, AboitizPower Distribution Group COO Anton Perdices, AboitizPower President and CEO Emmanuel Rubio, Davao Light EVP and COO Rodger Velasco, Energy Utilization Management Bureau Director Patrick Aquino, AboitizPower Chief Investment Officer Joseph Lacson, Davao Light Engineering VP Mark Valencia, and BYD Assistant GM for Finance and HR Lovelyn Labrado. — PHOTO FROM ABOITIZPOWER

The energy company’s mobility means are expected to be fully electric by 2040

CONSISTENCY is key and, from a corporate standpoint, surely an ideal virtue to help better drive home what it stands for or espouses. In the case of Aboitiz Power Corp. (more simply, AboitizPower) which collects the Aboitiz Group’s interests in power generation, distribution, and retail electricity services — consistency means seeing to it that aspirations to sustainability suffuse the totality of its operations.

During a recent press event, the firm presented BYD (Build Your Dreams) ETP3 units to members of the media. An initial four units of these commercial vehicles will be deployed as company vehicles to three key cities of AboitizPower distribution utilities: Visayan Electric, Davao Light, and Cotabato Light. Two units have been earmarked for Davao Light, with the other utilities getting one each. The most salient thing about these movers: they are battery electric vehicles.

Measuring 4,450-mm long, 1,1720-mm wide, and 1,875-mm tall, the ETP3 is said to boast a top speed of 130kph and maximum range in excess of 250 kilometers. Using absolutely no fossil fuel, the model represents the beginning of a new chapter in mobility for AboitizPower, as the company looks to electrify 40% of its total fleet by 2030, and 100% by 2040. This includes its four- and two-wheeled transport.

In a speech for the announcement of its “Fleet Transformation Program,” AboitizPower President and CEO Manny Rubio said the effort “(reflects the firm’s) belief in the electrification and decarbonization of mobility as a way to transform (its) energy system.”

He revealed that transportation “has always had a history of being the highest energy-consuming sector in the country,” accounting for 31.3% of total final energy consumption with over 11 million tons of oil as equivalent — not to mention the resulting air pollution. Mr. Rubio added, “With an ever-growing demand for powered mobility, we recognize that deeper electrification… is a key enabler in achieving a cleaner and more sustainable world energy system. After all, a broad range of mobility applications can be powered with electricity from cleaner or zero-emission sources.”

AboitizPower’s mobility thrust also lines up with Republic Act 11697 or the Electric Vehicle Industry Development Act (EVIDA). One of the salient points of this law mandates industrial and commercial companies to ensure that at least five percent of their fleets are comprised of EVs.

“As a leader in the energy industry, we want to incorporate innovations that will improve the efficiency and sustainability of our operations. The world is facing developments in climate change, global connectivity, population growth, urbanization and digitalization, and these changes demand that businesses like ours transform to remain relevant,” continued the executive.

For his part, AboitizPower Distribution Utilities COO Anton Perdices explained, “Electrifying our fleet will help us further reduce carbon emissions, lower operating costs, and contribute to cleaner air in the cities where we operate. This way, we are also helping empower the evolution of the cities we serve.”

Again, all these efforts tie into sustainability goals. “While delivering our core services is crucial, developing new verticals can enable us to tap into emerging markets, reach new customers, and propel innovation. We envision a future where our business model fully revolves around sustainably sourced and consumed power. Through ‘Cleanergy’ (clean energy) facilities, we provide reliable and responsibly-sourced energy to communities and businesses toward a sustainably powered and better future,” said AboitizPower Vice-President for Corporate Affairs Suiee Suarez.

The company looks to add 3,700 megawatts of capacity in renewable energy — such as solar, wind, and geothermal — over the next decade in an effort to curb the “heavy reliance” on fossil fuels for transportation and power generation. AboitizPower reports that, together with its partners, it “has the largest and most diversified renewable energy platform in the Philippines in terms of installed capacity under its operational control.” Some 1,000 megawatts of capacity – through wind and solar farms and geothermal facilities are still in the pipeline.

Palay farmgate price seen falling further in major rice growing center Nueva Ecija

PHILIPPINE STAR/EDD GUMBAN

THE farmgate prices of palay, or unmilled rice, is expected to continue declining to P15-16 per kilogram (kg) as supply expands during the harvest, the Department of Agriculture (DA) said in a statement on Sunday.

Farmgate prices — what traders pay farmers for their harvest, and an indicator of the strength of farmer earnings — were at between P17 and P18 per kg, according to a field survey conducted by the DA’s National Rice Program.

“The onset of the harvest in Nueva Ecija in early September had (led to a) declining trend in palay farmgate prices, which might drop even more when the harvest peaks in late September and October,” it said.

It added that the harvest for the wet-season crop will peak in mid-September.

Nueva Ecija is a major rice producing province with productive, well-irrigated land. The efficiency of rice growing in the province means its farmers will be able to weather low prices better than farmers on more marginal land.

The DA said that farmers were affected by prolonged rains caused by recent typhoons and the southwest monsoon.

In its recent bulletin, the DA said that total damage and losses brought by the southwest monsoon enhanced by Typhoon Goring (international name: Saola) was P1.14 billion. Damage to the rice crop was 41,238 metric tons amounting to P979.42 million.

It added that the recent price controls on rice, implemented on Sept. 5, helped push palay prices lower.

Executive Order No. 39 imposed a temporary price ceiling of P41 per kilogram for regular-milled rice and P45 per kilogram for well-milled rice.

The DA said farmers have expressed fears that traders, millers, and other merchants would buy their harvest at a “uniform lower price.”

Farmers have clamored for their own subsidy because of the reduced palay prices, alongside the cash aid received by rice retailers.

Rice retailers, who will not be able to realize a profit due to the price controls, were granted a P15,000 subsidy to be disbursed by the Department of Social Welfare and Development, the same department that distributes cash aid to the poor.

“(Farmers) also appealed to (President Ferdinand R. Marcos, Jr.) to order the National Food Authority to buy fresh (wet) palay at the farmgate level,” it said. — Adrian H. Halili

Rates of Treasury bills, bonds likely to decline

BW FILE PHOTO

RATES of Treasury bills (T-bills) and bonds on offer this week could track secondary market movements after faster-than-expected inflation last month.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday or P5 billion each in 91-, 182- and 364-day papers.

On Tuesday, it will offer P30 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and 10 months.

“The upcoming Treasury bill auction yields could again decline week on week, after the comparable short-term PHP BVAL (Bloomberg Valuation Service) yields were lower by up to 0.05-0.07 basis point (bp) week on week,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The upcoming seven-year Treasury bond auction yield could be similar to the comparable seven-year PHP BVAL yield at 6.42% as of Sept. 8,” Mr. Ricafort added.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills went down by 5.28 bps, 0.11 bp, and 7.02 bps week on week to end at 5.6553%, 5.9867%, and 6.193% respectively, based on PHP BVAL Reference Rates data published on the Philippine Dealing System’s website.

The seven-year bond likewise dropped by 12.89 bps week on week to end at 6.4154% on Friday.

“The seven-year bond auction should see a range of 6.35-6.45%, and is a good measure of risk appetite given the current backdrop of high inflation,” a trader said in an e-mail.

Headline inflation picked up to a two-month high of 5.3% in August from 4.7% in July, data released by the Philippine Statistics Authority last week showed.

Still, this was below the 6.3% print in August 2022, and was within the 4.8-5.6% forecast of the Bangko Sentral ng Pilipinas (BSP) for the month.

However, this was above the 4.9% median estimate in a BusinessWorld poll of 18 analysts.

August also marked the 17th consecutive month that the consumer price index (CPI) was above the BSP’s 2-4% target for the year.

For the first eight months, the CPI averaged 6.6%, above the central bank’s full-year forecast of 5.6%.

Last week, the BTr raised P15 billion as planned via the T-bills it auctioned off on Monday as total bids reached P47.56 billion, or more than thrice the amount on offer.

Broken down, the Treasury made a full P5-billion award of the 91-day T-bills as tenders for the tenor reached P13.242 billion. The average rate of the three-month paper went down by 2.1 bps for an average rate of 5.552%, with accepted rates ranging from 5.5% to 5.6%.

The government also raised P5 billion as planned from the 182-day securities as bids for the tenor reached P15.043 billion. The average rate for the six-month T-bill was at 5.966%, down by 2.7 bps, with accepted rates at 5.948% to 5.985%.

Lastly, the BTr borrowed the programmed P5 billion via the 364-day debt papers as demand for the tenor stood at P19.275 billion. The average rate of the one-year T-bill declined by 9.9 bps to 6.198%. Accepted yields were from 6.17% to 6.22%.

Meanwhile, the reissued seven-year bonds to be offered on Tuesday were first auctioned off on July 26, where the government raised P24.793 billion, short of the P30-billion program, at a coupon rate of 6.375% and an average rate of 6.328%.

The Treasury wants to raise P180 billion from the domestic market this month, or P60 billion via T-bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy