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Meralco renewables unit invests nearly P16B for SPNEC control

SPNEC’s Leandro L. Leviste (left) shakes hands with Meralco’s Manuel V. Pangilinan during the signing of the investment agreement on Oct. 12, 2023.

MERALCO POWERGEN Corp.’s renewable energy unit is investing P15.9 billion in listed solar energy developer SP New Energy Corp. (SPNEC) to develop solar and battery energy storage systems projects.

In a media release on Thursday, MGen Renewable Energy, Inc. (MGreen) said it had signed an investment agreement with SPNEC and its parent firm Solar Philippines Power Project Holdings, Inc. 

“This will be one of the largest solar projects not just in Asia, but in the world,” said Manuel V. Pangilinan, chairman and chief executive officer of Manila Electric Co. (Meralco), the parent firm of the energy developer.

“The Department of Energy’s vision is to have about 35% of the country’s energy come from renewable energy, and this is one of Meralco’s major contributions to this goal,” he added.

Under the agreement, SPNEC will serve as the primary vehicle to develop 3,500 megawatts (MW) of solar panels and 4,000 MW of battery energy storage systems in Luzon.

“We are humbled and grateful for this opportunity to build this renewable energy platform with Meralco. We look forward to bring together Meralco’s capabilities and our solar developments for the benefit of all stakeholders,” SPNEC Chief Executive Leandro L. Leviste said.

To enable investment, MGreen will subscribe to 15.7 billion common shares and 19.4 billion redeemable preferred voting shares in SPNEC.

SPNEC will apply to increase its authorized capital stock to allow the investment. The fresh injection of capital by MGreen will fund the construction and expansion of its solar projects.

Upon closing, MGreen’s common and preferred voting shares will make the company the controlling shareholder of SPNEC with a total voting interest of 50.5%.

Transaction completion is subject to the satisfaction of certain conditions precedent, including relevant regulatory approvals, Meralco said.

Separately, SPNEC told the local bourse on Thursday that its board of directors had approved the increase in its authorized capital stock to 75 billion common shares and 25 billion preferred shares.

Switzerland-based investment bank UBS acted as financial advisor in the transaction while SyCip Salazar Hernandez & Gaitmaitan and Gulapa Law acted as legal advisors to both Meralco and MGreen. King & Spalding and Picazo Law acted as legal advisors to Solar Philippines and SPNEC.

On the stock exchange on Thursday, Meralco’s shares went down by P1 or 0.27% to close at P374 apiece.

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

A minute with: Director Tim Burton showcases drawings, calls movies his ‘troubled children’

TIMBURTON.COM

OSCAR-NOMINATED director Tim Burton says he has no favorites when it comes to his movies, describing them all as “troubled children.”

Known for films including Edward Scissorhands, Frankenweenie, and Corpse Bride, Mr. Burton has also been showcasing his drawings and models in exhibitions.

In an interview, Mr. Burton reflected on the show’s latest incarnation, “The World of Tim Burton,” which opened on Wednesday at the Mole Antonelliana in Turin, Italy.

Below are excerpts edited for length and clarity.

Q: How involved have you been with the exhibition?

Burton: It started with the MoMA (Museum of Modern Art) show (in 2009) which took a couple of years to curate. This (show in Italy) is sort of an offshoot of that.

Q: What is it like seeing your work?

Burton: When I first saw it (the show in New York), it did feel like laundry hanging on the wall. I felt quite exposed. I feel that way with films, I like making them but then I get sort of terrified of showing them.

Q: How important are your drawings to your movie making process?

Burton: When I first started out, I didn’t really communicate very well, some people say it remains to this day, but I always felt drawings were a way for me to get ideas out. (For example) I’d just draw like a Jack Skellington character (from 1993 film The Nightmare Before Christmas) and I didn’t even know what it was for. Drawing brought out my subconscious.

Q: How did the strikes in Hollywood affect production on Beetlejuice 2?

Burton: I’ve got two days of shooting left. I know exactly what we need to do, as soon as the strikes are over, take off the pause button and go do it.

Q: Do you have a favorite of your own films?

Burton: I have no favorites. They’re all your troubled children. — Reuters

Strong office demand seen as IT-BPM hiring rises

KATE SADE-UNSPLASH

By Revin Mikhael D. Ochave, Reporter

DEMAND for office spaces could hit 1 million square meters (sq.m.) this year on the back of growth from the information technology and business process management (IT-BPM) sector, real estate brokerage services firm Leechiu Property Consultants (LPC) said.

“From experience, we see a lot of the leasing activity taking place in the last three months of the year. There is some confidence and optimism from our side to say that we should be able to surpass 2022 numbers. There is the chance that we should hit a 1 million sq.m. within the end of the year,” LPC Director for Commercial Leasing Mikko Barranda said during a media briefing in Makati City on Thursday.

“To refresh everyone’s mind, last year’s full-year number was at 989,000 sq.m.,” he added.

He placed the end-September figure at 809,000 sq.m., up 17% from the same period last year.

This year’s projection brings the office market closer to what Mr. Barranda described as the “landmark demand years” of 2018 and 2019 when the number hit 1.3 million sq.m. and 1.7 million sq.m., respectively.

He said the growth driver for the yearend projection is the IT-BPM sector, which is projected to hire 135,000 workers.    

“The drivers aren’t any different. The IT-BPM sector [is] very consistent,” Mr. Barranda said, citing a projection from the IT and Business Process Association of the Philippines that hiring this year will be one of the highest.

“We thought that last year at 120,000 was already quite a lot and to be able to surpass that just shows that there’s so much growth in that sector,” he said.

“Of course, there’s hybrid and remote work. But quite a lot of them still take space in the market,” he added.          

According to LPC, the IT-BPM sector accounts for 45% of the total office space demand.

“Notably, bulk of the lease contracts are for multiple sites, unlike the previous trend where mega sites were leased for IT-BPM operations in a single location,” LPC said in a report.   

“Thirty-seven percent of the IT-BPM transactions count, at 124,000 sq.m. of space, was mainly leased in Metro Cebu, Quezon City, and Clark, Pampanga. IT-BPM firms are likely opening microsites or applying the hub-and-spoke strategy to allow their employees to work near home to maximize employee retention,” it added. 

LPC added that the current office space supply is at 18.1 million sq.m., of which 82% are in Metro Manila, while nationwide office vacancy is at 19%.

“Bonifacio Global City and Makati City are still the preferred locations for office operations, as they exhibit the lowest vacancy rates at 9% and 13%, respectively,” it said.

“By the last quarter of 2023, another 432,000 sq.m. of office stock is projected for completion. Projected completions start declining by 2024 onwards, which will bring down vacancy rates while demand is expected to improve,” it added.

Meanwhile, Mr. Barranda said that the proposed ban on Philippine offshore gaming operators (POGO) would not hurt the local property demand as much since the market is no longer reliant on the sector.

He said the POGO sector has always been volatile, adding that it is “hard to bank on demand” coming from it.

“Of course, it would hurt the property sector, not so much on demand that we won’t get, but the existing footprint that they have left in the country. What ends up happening is if they will need to leave entirely, then that would leave a bit of a hole again in the supply, especially in areas where they are highly concentrated,” Mr. Barranda said.

“The good thing about the market today is that we are not heavily reliant on it. We’re somehow able to recover without the POGO. But of course, any demand coming from that sector will help the vacancy levels to come down much faster than later on as we have seen how the supply pipeline looks in the next five years,” he added. 

Last month, the Senate Committee on Ways and Means recommended the gradual phaseout and the eventual termination of POGOs from the country due to the negative social impact in communities where the operations are located.

Entertainment News (10/13/23)

German Film Fest at Gateway

The Goethe Institut presents KinoFest, a showcase of some of the hottest films to come out of Germany in the past two years. Returning fully offline for the first time after the pandemic, the festival features seven films that offer movie buffs a chance to delve into the rich variety of German cinema and four experimental films from Germany and the Philippines. The KinoFest will run from Oct. 19 to 22 at Gateway Cineplex 10, Cinemas 6 and 7, Gateway Mall, Araneta City, Cubao, Quezon City. To be shown are Sun and Concrete, Ehala, The Ordinaries, Happy Lamento, Orphea, Toubab, Republic of Silence, Sisi and I, Hao are You, Aligato: The Brief Life of an Ember, and Love is a Dog from Hell.

NeoFilipino features works with distinct choreography

THE return of CCP Choreographers Series’ “NeoFilipino,” on Oct. 20, 21 and 22 at the Tanghalang Ignacio B. Gimenez (CCP Blackbox Theater) in Pasay City, marks the third and final tier of the CCP Choreographers’ Series. It is a platform for established artists to collaborate with other art forms in creating new works with distinct choreographic styles, following WifiBody.ph and Koryolab. NeoFilipino 2023: In Transit will feature choreographers Christine Crame, Jose Jay Cruz, and Al Garcia, who have each built a distinct choreographic voice and style of dance. It is directed by dancer and choreographer Ms. Crame, with set design by Tuxqs Rutaquio, and projection mapping by Ces Valera. Its institutional supporters are De La Salle-College of Saint Benilde, Guang Ming College and Myra Beltran’s DanceForum. The P500 tickets are available at the CCP Box Office and at TicketWorld (https://premier.ticketworld.com.ph/shows/show.aspx?sh=NEOFILI23).

APO Hiking Society celebrates golden anniversary

THE chart-topping melodies of APO Hiking Society continue to inspire Filipinos, and with the legendary Filipino band’s remaining members Jim Paredes and Boboy Garovillo celebrating 50 years of friendship and music, the APO Hiking Society 50th Anniversary Concert will take place at the Newport Performing Arts Theater on Nov. 17. The anniversary show is a sentimental trip down memory lane that spans five decades. Tickets are now available at all TicketWorld and SM Tickets outlets, with prices ranging from P1,200 to P7,800.

QCinema announces QCSEA Competition Lineup

QCINEMA International Film Festival has unveiled the official selection of the inaugural edition of its QCSEA Shorts Competition. Ten short films were selected out of 380 entries received from all over Southeast Asia to compete. The lineup includes entries from Myanmar, Indonesia, Vietnam, Singapore, Malaysia, and the Philippines. From Indonesia comes Basri And Salma In A Never-Ending Comedy by Khozy Rizal, about a childless couple that owns a carnival ride for children. Vietnam’s Buoyant by Toan Thanh Doan and Hoang-Phuc Nguyen-Le follows a fisherman who rescues a mermaid from the fish market. I Look Into The Mirror And Repeat Myself, from Singapore, directed by Giselle Lin, is about a filmmaker who questions the meaning of her given name, her place among her four sisters, and their stories, while her family is on the cusp of change and dissolution. From Malaysia, MOP by Joon Goh is about a boss and her employee who, over a lunch break, play a dangerous sexual game. Myanmar’s entry is an experimental short film by Moe Myat May Zarchi, The Altar, about the guilt of a childhood incident of killing an ant while their washing hands in the sink. Five entries were selected from the Philippines — Cross My Heart And Hope To Die by Sam Manacsa; Dominion by Bea Mariano; Hito by Stephen Lopez; Kung nga-a Conscious ang mga Alien sang ila Skincare (The Thing About Aliens And Their Skin Care) by Seth Andrew Blanca and Niño Maldecir; and When You Left Me On That Boulevard by Kayla Abuda Galang. The short films’ Philippine premieres are slated from Nov. 17 to 26.

Benj Pangilinan releases new single

FILIPINO singer-songwriter Benj Pangilinan drops an upbeat song, “Dance Like You,” that captures the feeling of youthful excitement. “I wrote this song a couple of years ago, during the pandemic. I remember just playing the guitar when I suddenly came up with an interesting chord progression. Instantly, I picked up my phone and opened the Voice Memos app,” Mr. Pangilinan said in a statement. The euphoric, four-minute pop song was produced by his frequent collaborator, the Grammy-nominated Xerxes Bakker. It serves as a follow-up to his first single “Love, That’s Rare,” and both will be part of an EP to be released soon. “Dance Like You” is out now on all digital music platforms worldwide via Sony Music Entertainment.

Super Radyo, Barangay LS top audience share

SUPER Radyo DZBB and Barangay LS 97.1 remain the number one AM and FM radio stations in Metro Manila according to Nielsen’s Radio Audience Measurement data for January to September. The GMA Network’s flagship AM station Super Radyo DZBB 594 recorded an average total day audience share of 31.66%. Mornings remained to be the station’s highest rating block. Meanwhile, Barangay LS 97.1 averaged a total audience share of 41.37% during the same period, maintaining the top spot among FM stations. These programs are simulcast daily on GTV via Dobol B TV. Online, listeners can also catch these stations via live audio stream on www.gmanetwork.com/radio.

K-Pop group (G)I-DLE drops first English EP

FIVE-member Korean pop girl group (G)I-DLE releases its new EP HEAT, which is also their highly anticipated, first English EP, I Want That. The lead single’s music video has also been released. HEAT features the previously released track “I DO,” which made its debut on the Billboard Pop Airplay Chart after its release in July. It will also have songs with known musician collaborators such as Ryan Tedder, Meghan Trainor, and Jon Bellion. HEAT is available on all digital music platforms worldwide.

Pinay sweeps World Championships of Performing Arts

FILIPINA singer Ronica Mae Mangahas dominated the recently concluded 2023 World Championships of Performing Arts in Anaheim, California. The international competition, cited as the “Talent Olympics,” is held annually for performers and entertainers. Contenders from countries across America, Europe, South Africa, and Asia participated in the contest. Ms. Mangahas competed in eight out of 14 genres in the Vocal Solo Category. Of these, she won gold medals in the Opera, Open, and Rhythm and Blues (R&B) tilts. The 30-year-old vocalist likewise finished silver in Gospel, Original Works, Rock, and World divisions. “Competing on the world stage is a dream come true,” she said in a statement. “I never thought that my passion would get me to represent the country.”

Ica Frias releases new single

FILIPINO singer-songwriter Ica Frias expresses her wariness of romantic commitment in the new song “Oh Honey.” Released under Off The Record, the song is her reflection on fears of being vulnerable and intimate with someone, delivered with soulful vocals and jazzy instrumentation. “The song is about the fear of falling in love with the person you’re quite unsure of. Regardless of what you feel for him or her, it’s normal to be cautious about being romantically committed to someone,” Ms. Frias said in a statement. “The whole vibe is countered by the upbeat treatment of the song, almost as if you’re making fun of yourself for seeing that person with rose-colored glasses.” The track was written by her with the help of her friend Daniel Paringit, who also co-produced “Oh Honey” with Cluster Ng and Ricky Ilacad of OTR. “Oh Honey” is out now on all digital music platforms worldwide.

English singer James Arthur releases new single

FOLLOWING the success of his songs “Blindside” and “A Year Ago,” and the announcement of his 5th studio album Bitter Sweet Love — out Jan. 26th — English singer-songwriter James Arthur returns with a new single, “Just Us,” a powerful ballad about realizing that love is the true meaning of life. “It is a song in which I confess to running away from what really matters and getting lost in the pursuit of validation from external things,” Mr. Arthur said in a statement. Bitter Sweet Love will contain 13 songs. “Just Us” is out now on all digital music platforms worldwide.

Ben&Ben releases acoustic version of ‘Courage’

FILIPINO folk-pop band Ben&Ben has dropped a stripped-down version of their new song, “Courage (acoustic version),” which encourages listeners to reach for their dreams and goals in life despite dealing with personal tribulations. “The past few months have been mentally tough for the band, with challenges surrounding us and driving us to low points and times of discouragement,” the chart-topping band said in a press statement. “We realized that, as visceral as the feeling of being hopeless may be for us, we wanted to channel it into an uplifting piece of music because it is something a lot of people are going through now but have a hard time verbalizing.” The stripped-down number is penned by Miguel and Paolo Benjamin and produced by frequent collaborator Jean Paul Verona. Ben&Ben’s “Courage (acoustic version)” is out now on all digital music platforms worldwide via Sony Music Entertainment.

Tom and Jerry get localized Singapore version

THE first-ever localized Tom and Jerry series, featuring the beloved cartoon cat and mouse in Singapore, will premiere on Cartoon Network, the Cartoon Network Asia YouTube channel, and HBO GO on Oct. 21. In the seven-part series, the legendary cartoon frenemies take their adventures to the Lion City as they weave through the labyrinth of colorful neighborhoods, modern skyscrapers and city-in-nature experiences. New episodes air every Saturday on Cartoon Network and YouTube, with four episodes immediately available on HBO GO followed by a second episode drop in November. The new series is part of a wider partnership between Warner Bros. Discovery and the Singapore Tourism Board to collaborate on content that will spotlight and inspire travel to destination Singapore.

Disneyland lifts prices up to 9%; Florida annual passes rise too

WALT DISNEY CO. is raising ticket prices at its Disneyland resort by up to 9% and lifting annual pass prices at Walt Disney World by as much as 10%.

The new prices take effect immediately, the company said Wednesday.

Rising prices are a touchy issue at Disney, which goes out of its way to promote travel packages that make stays at its resorts affordable for families. The company isn’t raising daily admission prices in Florida, where attendance was weaker last quarter, and its least expensive Disneyland ticket — at $104 — hasn’t budged since 2019.

The park also has promotions, such as a $50 ticket for children nine or younger.

At Disneyland in Anaheim, California, a single ticket on the most popular days, such as holidays, is increasing by 8.4% to $194, while other prices are going up even more in percentage terms. The Enchant annual pass, which bars access on certain weekends and holidays, is rising 21% to $849, while the Genie+ service, which lets guests access shorter lines, rises by $5 to $30. Parking is also going up.

At Walt Disney World in Orlando, Florida, annual pass prices are increasing by up to 10%, with the most expensive Incredi-Pass now retailing for $1,449. Parking will rise $5 to $30, but is free for hotel guests. Starting on Jan. 9, guests will be able to use “Park Hopper” tickets to go from one park to another any time during the day.

Disney said last month that it plans to double investment in the parks division to $60 billion over the next 10 years, including new attractions and cruise ships

“We are constantly adding new, innovative attractions and entertainment to our parks and, with our broad array of pricing options, the value of a theme park visit is reflected in the unique experiences that only Disney can offer,” the company said Wednesday.

Earnings at Disney’s domestic parks fell in the third quarter ended July 1, the result of weakness at Disney World. The company cited fewer guests in Florida after a post-pandemic boom and tough comparisons with the prior year’s 50th anniversary celebrations.

Read more: Bob Iger’s Billion-Dollar Crisis Puts His Legacy on the Line

Chief Executive Officer Bob Iger, who returned to lead Disney last November, said earlier this year that the company had been “too aggressive” in raising park prices under his predecessor Bob Chapek, sparking a backlash from visitors. — Bloomberg

PCCI warns businesses: Brace for high oil prices

By Justine Irish D. Tabile, Reporter

THE PHILIPPINE CHAMBER of Commerce and Industry (PCCI) warned businesses of a possible increase in fuel prices due to geopolitical tensions in the Middle East.

“There are headwinds we are facing, recently, the Middle East conflict again brings about this uncertainty,” said PCCI President George T. Barcelon in a media briefing on Thursday.

“We hope that this will not flare up to the point wherein the big Middle [Eastern] countries would be involved,” he said, adding these are oil producers.

Mr. Barcelon said the conflict could add to the volatility of oil prices, which were recently affected by the cutback in oil production by Saudi Arabia due to softer demand.

Data from the Department of Energy showed that local oil companies implemented a decrease of P3.05 per liter for gasoline, P2.45 per liter for diesel, and P3 per liter for kerosene, effective on Tuesday.

These price adjustments resulted in a year-to-date net increase of P12.25 per liter for gasoline, P11.35 per liter for diesel, and P5.94 per liter for kerosene.

Mr. Barcelon said that despite the recent price adjustments, the conflict in the Middle East might trigger an increase in oil prices.

“And this, of course, is a concern because the government priority is to mitigate inflation,” he said.

UNCERTAIN OUTLOOK FOR 2023
He said that the conflict in the Middle East is also one of the reasons why the outlook for the economy remains uncertain for the last two months of the year, adding to previous concerns such as the lower-than-expected gross domestic product (GDP) growth and hints of another rate hike by the US Federal Reserve.

“The last report on GDP is not as what we expected. The projections are higher than the GDP figures that were presented,” Mr. Barcelon said.

In the second quarter, the Philippine economy expanded by an annual 4.3%, weaker than the 6.4% growth in the previous quarter and 7.5% a year ago.

“There’s also the concern that the US Federal Reserve has in mind to possibly adjust interest rates,” Mr. Barcelon said.

“I have read in the paper that Bangko Sentral ng Pilipinas is contemplating because our peso has devaluated somewhat and if we don’t mirror the increase of interest rates abroad, the peso might devaluate further,” he added.

He said that this will affect the economy as consumers will be able to buy less than what they used to before.

Mr. Barcelon said he wants to remain positive that the sluggish economic growth would be negated by the seasonal rising demand in the last quarter.

“Coming towards the ‘Ber’ months, definitely, the Christmas spirit will be there, and the economy definitely will go along and pick up maybe 1% or 2%,” he added.

Meanwhile, PCCI Vice-President for Industry Perry A. Ferrer said that economic activity in the last quarter will be based on remittances from overseas Filipino workers (OFWs).

“We will see probably $13 [billion] to $14 billion [in remittances] in the last quarter of this year, which will stir the economic activity,” Mr. Ferrer said.

“We probably won’t meet the target of 6% but with the $14-billion OFW remittances we will see a nationwide activity which is always in time for our Christmas season,” he added.

Eric Clapton and Kurt Cobain guitars could fetch up to $2 million each at auction

JULIENSLIVE.COM

TWO iconic guitars played by Eric Clapton and Nirvana’s Kurt Cobain could each fetch $1 million to $2 million when they go up for auction in November.

Clapton’s The Fool, a psychedelic painted guitar, was known for its unique sound. The Beatles’ George Harrison gave it to Clapton after his guitar was stolen.

“It was the guitar he used to create the very famous woman tone that guitar players today try and recreate 50 years since,” said Martin Nolan, founder of Julien’s Auctions.

With hits such as “Bell Bottom Blues,” “Cocaine,” and “Layla,” Clapton has won 18 Grammy Awards and was inducted into the Rock and Roll Hall of Fame in 2000.

The other guitar, also estimated between $1 million and $2 million, is Kurt Cobain’s guitar, the SkyStang I, which Cobain played during his final public performance on Nirvana’s In Utero concert tour.

Described as his “workhorse” because of the amount he used it during the tour, the guitar still has the same strings and even features black tape covering over the Fender brand name, as “Kurt hated corporate sponsorship and corporate branding,” according to Mr. Nolan.

The world record for a guitar was set in June 2020 when Cobain’s 1959 Martin D-18E guitar that he played for his 1993 appearance on MTV Unplugged sold for over $6 million.

Kurt Cobain popularized grunge rock in the early 1990s. Nirvana broke through to mainstream pop success with the smash hit “Smells Like Teen Spirit,” the first single from the band’s second album, Nevermind, released in 1991.

The auction also features items belonging to Cobain, including his cardigan, jeans, and a pack of cigarettes, all of which he left behind at rehab.

The lead singer of Nirvana was found dead, aged 27, of a self-inflicted gunshot wound in his Seattle home in April 1994.

A portion of the guitar proceeds will go to Kicking the Stigma, a mental health initiative.

There are over 1,000 items going up for auction at Nashville’s Hard Rock Cafe between Nov. 16-18 at the “Played, Worn & Torn: Rock ‘n’ Roll Iconic Guitars and Memorabilia” event.

Also for sale are Amy Winehouse’s bustier from her performance at the Brit Awards, jewelry belonging to Prince and Elvis Presley, and items from the estate of Frank Zappa, including the first guitar he ever bought. — Reuters

DICT’s National Broadband Project transforms Northern Luzon with 438 satellite broadband sites

Northern Luzon locals can now enjoy a wide range of essential digital services without the need to travel for hours to get online.

The Department of Information and Communications Technology (DICT) in the Philippines has successfully collaborated with internet service provider Stellarsat Solutions, Inc. and its partner Kacific Broadband Satellites to achieve a key milestone in its effort to provide equitable broadband connectivity across the country, under a National Broadband Plan.

This transformative project, integral to DICT’s mission of bridging the digital divide in Geographically Isolated and Disadvantaged Areas (GIDA), involved connecting 438 sites across the North Luzon provinces of Benguet, Kalinga, Ifugao, Ilocos Norte, Quezon, and Pangasinan. The work was completed in just 30 days and marked the largest VSAT installation and activation in the Philippines.

Despite significant advancements in digital connectivity, the Philippines still grapples with the digital divide, with 65% of Filipinos lacking access to the internet. To address this issue, the DICT embarked on a mission to connect every barangay in the country. As a part of the government’s Executive branch, the DICT is committed to providing every Filipino access to vital ICT infrastructures and services while also ensuring the sustainable growth of ICT-enabled industries that can lead to the creation of more jobs.

This achievement highlights both DICT’s commitment to digital transformation in GIDA regions and the role of Stellarsat Solutions, Inc. in overseeing the deployment and connection of satellite terminals with the support and expertise of Kacific. Residents in Northern Luzon can now readily access essential digital services via high-speed broadband.

DICT Secretary Ivan Uy, on-ground at North Luzon, spoke to installers and communities about the role of satellite technology and its importance in achieving better connectivity and digital inclusivity in GIDA.

By providing high-speed internet connectivity to Northern Luzon, this project equips the region’s micro, small, and medium enterprises (MSMEs) with the tools to participate in the thriving e-commerce landscape. Improved connectivity also fosters e-commerce transactions, e-retail growth, and the development of digital payment systems. Furthermore, it opens online education and remote work opportunities, transforming remote areas into digital communication hubs. These connections also extend to essential services, like better healthcare and emergency management.

The involvement of the Cybercrime Investigation and Coordinating Center (CICC), an attached agency of the DICT, was critical in ensuring the security and quality of the installation sites. As the entity responsible for all functions related to cybersecurity, the CICC conducted security assessments, working alongside DICT Secretary Ivan Uy during site inspections. The CICC took charge of coordinating the deployment of VSATs, ensuring strict adherence to industry standards. The CICC also evaluated opportunities to initiate educational outreach programs in these GIDA areas when accompanying Mr. Uy during the site inspection.

DICT Undersecretary Alexander Ramos and Secretary Ivan Uy ensuring project success through thorough site inspections.

The Kacific1 satellite, with its 56 powerful high-throughput spot beams, is a key infrastructure for addressing bandwidth needs in rural and remote areas, and delivering broadband service, bridging the digital divide, and improving the lives of unserved and underserved communities required close collaboration among the DICT, CICC, Kacific, Stellarsat and its installers in each province. Fifteen installation teams, comprising 200 workers and Kacific Distributors, overcame the typhoon season and the archipelagic nature of the Philippines to coordinate seamlessly in real-time. These distributors, understanding the connectivity needs of their local communities, actively contributed to fostering digital inclusivity.

DICT advances its mission of introducing more digital transformation initiatives in GIDA by utilizing Kacific’s satellite terminals.

“One big challenge in connecting the Philippines is our geographic location and the nature of our archipelago. Connecting all the scattered islands remains a challenge, and the digital divide is still pronounced, especially in GIDA,” says DICT Secretary Ivan Uy. “Access to the internet opens a world of opportunities for locals in those areas. With reliable and affordable broadband internet, Filipinos in Northern Luzon province can access not only the Philippines but the entire world, capitalizing on the benefits of the digital era.”

“Kacific understands that a business like ours can be a powerful force for good. This aligns with our efforts of achieving Environmental and Social Goals (ESG), which has been recognized through multiple ESG awards, including the recent Euroconsult award for Universal Broadband,” says Christian Patouraux, Kacific CEO. “While the journey is far from over, the digital divide in the Philippines gets smaller with each connection made. It has been an honor for us to collaborate with the DICT on this mission to shape a future where connectivity knows no bounds and all Filipinos can utilize the internet to its full potential.”

 

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PEZA ties up with JICA, Japan firm for renewable projects

SENIVPETRO-FREEPIK

THE Philippine Economic Zone Authority (PEZA) signed a partnership agreement with Japan International Cooperation Agency (JICA) and Japanese-led Advantec Philippines, Inc. for future renewable energy projects.

“The tie-up is part of JICA’s Public-Private Partnership (PPP) promotion program that utilizes Japanese innovations in implementing development cooperation projects,” JICA said in a press release.

Under the partnership, Advantec will introduce its solar power technology in the Pampanga Economic Zone with an annual energy yield of 3.6 million kilowatts.

The project is also seen to potentially reduce approximately 1,200 tons of carbon dioxide annually.

“JICA has been actively undertaking its PPP promotion program that encourages more business deployment of Japanese companies in the Philippines,” JICA Chief Representative Takema Sakamoto said in a statement.

“These Japanese companies introduce unique and advanced technologies and business models that are geared towards sustainable development. JICA keeps on supporting Filipino friends in line with the co-benefit approach,” Mr. Sakamoto said.

For the initial stage of the cooperation, Advantec will conduct a feasibility study to determine the viability of the solar power technology operation in the economic zone and how it fits into Philippine laws and regulations.

The study also aims to identify what PEZA rooftops or land areas will be used for the pilot project sites.

“Such partnership is powerful to also give potential renewable energy investors ideas on the best pathways to participate in the Philippine renewable energy landscape,” JICA said.

PEZA Director General Tereso O. Panga said that the memorandum of understanding signed on Thursday is in support of President Ferdinand R. Marcos, Jr.’s directive to promote clean and green production, energy efficiency, and the use of renewable energy sources.

In his second State of the Nation Address, Mr. Marcos announced that the Philippines is aiming to achieve a 35% renewable energy share in the power mix by 2030 and 50% by 2040.

Mr. Panga said that Advantec’s primary objective “is to establish and execute numerous solar power facilities initially within the Pampanga Economic Zone, with the aim of supplying generated electricity to PEZA and its locators operating within the zones.”

He added that PEZA will assist Advantec, particularly in securing the documentary requirements with the government, identifying suitable land areas, and facilitating the registration of solar photovoltaics.

“All these efforts shall be in accordance with the provision of the Corporate Recovery and Tax Incentives for Enterprises Law and the Renewable Energy Act of 2008,” Mr. Panga said. — Justine Irish D. Tabile

Novelist Salman Rushdie’s memoir on 2022 stabbing to be published next year

KNIFE —PENGUINRANDOMHOUSE.CA

WASHINGTON — Salman Rushdie, the Indian-born novelist who spent years in hiding after Iran urged Muslims to kill him because of his writing, will publish a memoir on his 2022 stabbing in New York, book publisher Penguin Random House said on Wednesday.

Mr. Rushdie’s new memoir, Knife: Meditations After an Attempted Murder, will be published on April 16, 2024.

“This was a necessary book for me to write: a way to take charge of what happened, and to answer violence with art,”

Mr. Rushdie, whose public appearances have been limited since last year’s attack, said in a statement released by the publisher.

Mr. Rushdie, 76, was awarded the “Freedom to Publish” award by the British Book Awards in May.

An attack onstage in August 2022, during a lecture in New York state left the British author blind in one eye and affected the use of one of his hands. His attacker, a Shi’ite Muslim American from New Jersey, has pleaded “not guilty” to charges of second-degree attempted murder and assault.

Mr. Rushdie released a new novel, Victory City, nearly six months after his stabbing attack.

Mr. Rushdie has long faced death threats linked to his fourth novel, The Satanic Verses, which was banned in many countries with large Muslim populations upon its 1988 publication over passages deemed to be blasphemous by some.

Mr. Rushdie spent years in hiding after Iran’s supreme leader at the time, Ayatollah Ruhollah Khomeini, pronounced a fatwa, or religious edict, calling upon Muslims to kill him.

While Iran’s pro-reform government of President Mohammad Khatami distanced itself from the fatwa in the late 1990s, the multimillion-dollar bounty hanging over Rushdie’s head kept growing and the fatwa was never lifted.

Mr. Khomeini’s successor, Supreme Leader Ayatollah Ali Khamenei, once said the fatwa against Rushdie was “irrevocable.” — Reuters

Assault in Gaza Strip: A new wild card

MOHAMMED IBRAHIM-UNSPLASH

As the International Monetary Fund (IMF) annual meetings in Morocco unfold, it warned against stubborn inflation and weak global growth in 2024. But it chose to be more circumspect with its assessment of the latest hostilities in the Gaza Strip. Gita Gopinath, the Fund’s First Deputy Managing Director, estimated that “If it turns into a wider conflict, and that causes oil prices to go up, that does have an effect on the economies.”

Such a scenario is likely to yield this correlation: a 10% increase in oil prices could lead to inflation rising by 0.4 percentage point one year after. As a consequence, global output might fall by 0.15 percentage point. Both challenges are additional headaches for central bankers everywhere, just after they expressed confidence that they were succeeding in containing the price surges following the invasion of Ukraine and the pandemic.

A not-too-different sentiment was expressed by the Bank for International Settlements (BIS) through its general manager, Agustin Carstens. While too early to be definitive, Carstens was rather quick in saying that the oil and equity markets might be in for harder days ahead. An unpredictable set of forces could worsen the global scenario that is already complicated by lower economic growth and possibly prolonged high interest rates in the United States.

All up, the cards seem stacked against a quick resolution of this long and winding search for peace in the Middle East.

As the New York Times reported, about 300,000 soldiers are assembling near the Gaza Strip for what could be a massive ground invasion of the territory. Israel announced that their mission was to ensure that Hamas “at the end of this war won’t have any military capabilities by which they can threaten or kill Israeli civilians.” That promises a long, protracted bloody war that could bring in many nations into the fold.

This must be the mission order corresponding to Israeli Prime Minister Benjamin Netanyahu’s threat that his country would inflict an “unprecedented price” and fight a war. The other day, he formed a unity government as hostilities escalated. He brought in two opposition lawmakers — both former army chiefs — to his cabinet. Israel needs to decide quickly whether to invade Gaza or even south Lebanon.

Both the IMF and the BIS fears of a wider conflict could therefore be a likelier scenario. Israel is smarting from the failure of security and intelligence, for no red flag was promptly raised when Hamas militants fired thousands of rockets and sent hundreds of gunmen into Israeli towns at 22 different locations near the Gaza Strip during the Jewish holiday of Sukkot. The assault reached as far as 24 kilometers away from the Gaza border, shooting at civilians and soldiers for hours. Saturday’s attack is considered the worst civilian massacre in Israeli history.

The leader of Hamas’ military wing, Mohammed Deif, clarified that this recent attack on Israel “was in response to the 16-year blockade of Gaza, Israeli raids inside West Bank cities over the past year, violence at Al Aqsa — the disputed Jerusalem holy site sacred to Jews as the Temple of Mount — increasing attacks by settlers on Palestinian and growth of settlements.”

This is not the first time we are seeing Israeli-Palestinian hostilities. They date back to biblical times. As Simon Sebag Montefiore, in his classic Jerusalem: The Biography, published in 2011, documented, even after the United Nations ruled to divide Palestine into Israel and Palestine in 1947, there were outbreaks of serious conflict, even with calls to “butcher the Jews.” In 1967, Israel occupied the Gaza Strip and the West Bank including East Jerusalem, establishing a two-tiered legal and political system that provides comprehensive rights for Jewish Israeli settlers while imposing military rule for the rest of the population. What we see today is an extension of these territorial differences.

Subsequent attempts to establish peace in Israel and West Bank and Gaza (WBG) peaked during the Oslo Accords signed between the Israelis and the Palestinians in 1993-95. As an IMF Program Note wrote, the Accords created the Palestinian Authority to build new institutions and develop both policy and a legal framework for the WBG as basis for a future Palestinian state. The outbreak of the second Intifada in 2000 disrupted whatever progress had been made. In fact, the IMF was mandated to provide some technical assistance to WBG focusing on tax administration, public expenditure management, banking supervision and regulation, and macroeconomic statistics. Financial support cannot be extended to WBG because it is not a member state.

But what is most concerning to the global economy must be the recorded message of Deif that the Saturday morning attack was only the start of “Operation Al-Aqsa Storm,” calling on Palestinians from East Jerusalem to Northern Israel to join the fight. This is consistent with its earlier assurance that Hamas is prepared for all options including all-out war.

It is quite challenging to be optimistic over the prospects for the global economy. The risks cannot be ignored. Both sides of the Gaza-Israel conflict are more than battle-ready, with sustained outbreaks of rocket launching and automatic fire in different parts of the disputed territory. Most iterations of what could happen appear to be pointing to an upset of medium- and long-term equilibria.

Today’s deep state of flux due to the economic scarring of the pandemic and trade tensions is bound to worsen due to the war’s potential hit on global inflation. The broader area is home to major oil producers such as Iran and Saudi Arabia. As Reuters recently wrote, it is also a major shipping lane through the Gulf of Suez, and therefore supply chains are most vulnerable. With the war, unless we see a defense deal between Washington and Riyadh, it is difficult to expect Saudi Arabia to raise its oil output and mitigate the potential disruption in oil supply. In the first place, Saudi Arabia has an outstanding agreement for a voluntary reduction in oil production of a total 1.3 million barrels a day. Some analysts are predicting a potential slowdown in oil exports this time from Iran.

Should inflation resurge, central banks may have little option but to tighten the monetary screws again. Otherwise, economic growth might be restrained, if not reversed.

Both the US Fed and the European Central Bank have already raised the risk of renewed hikes in energy prices to their inflation fight. The signs are beginning to show in Europe. Shares in European oil and defense companies a few days ago started soaring while the rest of the equities market exhibited significant weaknesses. A similar trend is also happening in the US. On top of that, while interest in the US dollar and assets seems to grow, the risks to inflation are gathering more momentum. That could all put the US Fed at a crossroad of deciding the next direction of monetary policy.

In the Philippines, as far as we could extract from the macroeconomic assumptions of the Development Budget Coordination Committee, the crude oil assumption for this year and the next is between $70-90. Recent oil prices are uncomfortably inching towards the high end. On top of that, based on the Bangko Sentral ng Pilipinas (BSP) statement after the Monetary Board meeting on monetary policy last month, many of the upside risks are vulnerable to significant oil price adjustments. Minimum wages have been adjusted in many parts of the Philippines. Transport costs for jeepney-riding public are bound to climb with the provisional increases granted by the Land Transportation Franchising and Regulatory Board (LTFRB) effective last Sunday. Power rates, while lowered in earlier months, could renew their increase if oil prices sustain their uptrend. Food prices continue to suffer from low farm productivity and huge adjustments in the cost of fertilizers and pesticides which are oil related. Food prices also react significantly to higher transport costs.

All of these are at the back of the market’s mind, so it’s not impossible that inflation expectations are also de-anchored.

We therefore expect to see the BSP upgrading its forecasts for the next three years given the second upsurge of inflation in September. If October inflation disappoints again, we can expect more tightening for the last two meetings of the Monetary Board in 2023. To what extent, it is difficult to say. While the Israel-Hamas conflict is likely to affect our economic calculus, it is also a wild card, for which we need to prepare.

A wild card is, after all, an unpredictable factor.

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Cebu Pacific stays on course as it transitions to fuel-efficient fleet

SILVER RINGVEE–UNSPLASH

BUDGET CARRIER Cebu Pacific has maintained its commitment to transition its fleet to the all-new engine option or NEO aircraft by 2028 as part of its decarbonization program.

“Acquiring and maintaining next-generation aircraft is vital to meeting our climate goals and maintaining high-quality services. We have implemented a capital expenditure program to replace our older aircraft with fuel-efficient NEO aircraft by 2028,” Alex B. Reyes, Cebu Pacific’s chief strategy officer, said in a media release on Thursday.

The company’s decarbonization program includes modernizing its fleets, which will allow it to reduce carbon dioxide (CO2) emissions per passenger by up to 29%.

A NEO aircraft is the latest generation of Airbus planes that have been designed to have better fuel efficiency.

Cebu Pacific said its fuel efficiency practices have improved after it managed to reduce its fuel consumption by about 7.9 million kilograms in 2022, which is equivalent to avoiding CO2 emissions.

The company is also targeting to use sustainable aviation fuel (SAF) across its commercial network by 2030 as part of its commitment to help the aviation sector achieve net-zero greenhouse gas emissions by 2050.

SAF can help reduce emissions from air transportation and is made from nonpetroleum feedstock like agricultural waste and used vegetable oil.

Cebu Pacific started to integrate SAF blend into its operations with a series of new Airbus aircraft delivery flights, it said.

“Our effort to partner with SAF suppliers is one of the many initiatives positioning us to meet the demands of our customers for responsible and convenient air travel,” Alexander G. Lao, president and chief commercial officer of Cebu Pacific, said.

Mr. Lao said SAF usage would allow the company to achieve its net zero target by 2050, as it also aims to increase its sustainability efforts in 2023.

“The airline also plans to address its ground operations emissions and transition to an all-electric, zero-emission ground support equipment (GSE) fleet,” Cebu Pacific said.

The International Air Transport Association has estimated that SAF will contribute 65% of carbon emissions reduction.

For this year, Cebu Pacific aims to assess market acceptance and engage with stakeholders to develop future SAF supply ahead of its planned integration into regular commercial flights by 2030. — Ashley Erika O. Jose

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