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Failure to reform military pension system may hurt PHL credit rating

PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES may lose its investment grade rating if it fails to reform the pension system for military and uniformed personnel (MUP), Finance Secretary Benjamin E. Diokno said on Wednesday.

This would affect the Philippine government’s efforts to cut its debt levels, Mr. Diokno said during a Development Budget Coordination Committee (DBCC) briefing at the Senate.

“The rating agencies look at that. If we continue to ignore the military pension system, our investment grade will likely become ‘junk,’” he said.

Mr. Diokno said that if debt watchers downgrade the country’s investment grade rating to “BB+” and below, it will be more difficult for the government to borrow and finance the budget.

The National Government’s (NG) debt as a share of gross domestic product (GDP) stood at 61% at the end of the second quarter, slightly above the 60% threshold considered by multilateral lenders to be manageable for developing economies. The Marcos administration is targeting to lower the debt-to-GDP ratio to 51.1% by 2028.

Philippine sovereign bonds have a “Baa2” rating from Moody’s Investors Service, BBB+ from S&P Global Ratings, and BBB from Fitch Ratings. All three debt watchers have assigned a “stable outlook” for the Philippines, indicating that no rating changes may occur in the next 12 to 18 months.

Mr. Diokno has been pushing for reforms in the military and police pension system, which does not require them to contribute to their pensions and is sourced entirely from the government budget.

“The amount that we allocate for military pension is much higher than the current operating budget,” he said.

Under the 2024 National Expenditure Plan, the proposed allocation for pension benefits of uniformed personnel and veterans is P140.68 billion, 3.5% up from the P139.5-billion budget this year.

“The pension system that is for the military is not a real pension system in the following sense — there are no contributors,” Mr. Diokno said.

“A pension system is where the beneficiaries of the pension system contribute to the system and there is a government counterpart, but in this particular sense, there is no contribution on the part of the beneficiaries, and we only appropriate it annually,” he added.

A House of Representatives ad hoc committee approved on Tuesday a consolidated bill that seeks to reform the military pension system.

Under the measure, all MUP would be required to contribute to the pension fund.

The MUP pension reform bill is on the Legislative-Executive Development Advisory Council’s list of 20 priority measures that are targeted for approval by December. — Keisha B. Ta-asan

Villar proposes to handle seven stations of LRT-1 line extension

THE Villar family’s Prime Asset Ventures, Inc. (PAVI) has proposed to take over the next phase of the Light Rail Transit Line 1 (LRT-1) extension project by adding seven stations beyond the ongoing development of five stations.

Manuel B. Villar, Jr., chairman of the Villar group of companies, told reporters on Tuesday that his team had submitted a proposal to the Department of Transportation (DoTr) to take over the rail’s Cavite extension project.

“Di ba ang [LRT-1] hanggang Zapote? Mukhang hindi na nila itutuloy, mga hanggang Sucat na lang (The LRT-1 extension is supposed to be until Zapote, but it looks like they might reach only until Sucat),” Mr. Villar said.

The move, which is aimed at expanding the Villars’ infrastructure portfolio, has led to the group’s negotiation with Ayala Corp. and Metro Pacific Investments Corp. (MPIC).

Mr. Villar said both conglomerates seem not keen on completing the entire line extension project. He added that the proposal may be changed depending on the outcome of the talks with Ayala and MPIC.

The LRT-1 Cavite line extension project is being handled by Light Rail Manila Corp. (LRMC), a joint venture company of MPIC’s Metro Pacific Light Rail Corp., Ayala’s AC Infrastructure Holdings Corp., Sumitomo Corp., and Macquarie Investments Holdings (Philippines) Pte Ltd.

LRMC declined to comment on Mr. Villar’s plans at this time.

Sought for comment, DoTr Undersecretary for Railways Cesar B. Chavez said he has not heard whether the Villar group has indeed submitted a proposal to LRMC for the takeover of the Cavite segment of LRT-1 line extension.

The Cavite line extension project adds 11 kilometers to the existing railway system. Its first phase covers Redemptorist Station, MIA Station, Asia World Station, Ninoy Aquino Station, and Dr. Santos Station.

As of the first half of 2023, LRMC completed about 88% of the first phase, which covers about 6.7 kilometers. Most of the stations were more than 50% complete.

Dr. Santos Station or the Sucat station is the last station for the first phase. It was around 71% complete as of last month.

In a press release in July, LRMC said it was optimistic about completing the construction of the first phase by the fourth quarter of 2024.

The remaining phases will cover the construction of the Las Piñas, Zapote, and Niog stations, which have not yet started because of right-of-way issues.

Mr. Villar said his group’s line proposal will run from Sucat station in Parañaque City and pass along Molino Blvd. as it extends to Governor’s Drive in Cavite.

“Ang gusto ko lang, baka ma-extend hanggang d’yan sa Silang, closer to Tagaytay pero hindi ko naman bibiglain ’yan (I want to extend it beyond Silang, maybe move closer to Tagaytay, but I will not rush it),” he added.

Meanwhile, Mr. Villar said that the company also plans to extend its recently acquired four-kilometer Muntinlupa-Cavite Expressway (MCX) to Tanza, Cavite.

His group has recently signed the implementing agreement with Ayala as the Department of Public Works and Highways had given its consent for the transfer of ownership last July 19, 2023.

The Villar-led PAVI is an investment and holdings company with a diverse portfolio of infrastructure and public utility assets. — Adrian H. Halili

SMIC defers REIT listing

SM PRIME Holdings, Inc. is looking to defer the market listing of its real estate investment trust (REIT) to next year due to market conditions, an official of its parent firm SM Investments Corp. (SMIC) said on Wednesday.

“They have always said that [the REIT] is subject to market conditions. As we are looking at things now… we may look to potentially do this a bit later than had initially been said,” said Timothy Daniel, SMIC head of investor relations, sustainability, and communications, said during the PSE STAR event.

“[In] the second half of this year, they will assess market conditions, and this is maybe something for next year,” he added.

Mr. Daniels cited market headwinds like higher interest rates, inflation, and market sentiments.

Earlier this year, SM Prime said that it was targeting to launch its REIT portfolio by the second half of the year.

The company’s planned REIT offering is likely to be valued at around $3.5 billion to $4 billion and initially composed of 12 to 15 assets, which will come from the 82 malls it currently has as 30 to 35 malls are now fully matured.

“Perhaps they would list about a quarter of that, bringing in about $1 billion of revenue, particularly towards funding the reclamation efforts in Manila Bay,” Mr. Daniels said.

Additionally, he said SM has fully stopped its reclamation operations after the government halted all Manila Bay reclamation projects.

“We have been working on this reclamation project for over a decade, during that time one of the real priorities has been to make sure that all of the documentation required is in place,” Mr. Daniels said.

“Right now, under the government’s requirements, we have stopped all of the work — for now, and we are listening to what else [they] want,” he added.

He said the company would announce its plans regarding the reclamation project once the government has completed its review.

SMIC through SM Prime is developing a 360-hectare reclamation project in Pasay City directly connected to the Mall of Asia Complex worth around P100 billion.

The government announced earlier that it had suspended all reclamation projects ahead of a review by the Department of Environment and Natural Resources.

SM Prime shares rose by 1% or 30 centavos to P30.40 apiece, while SMIC shares went up by 3.02% or P26 to P886 per share on Wednesday. — Adrian H. Halili

Globe closes P2.6-B tower deals with MIDC, Frontier

GLOBE TELECOM, Inc. has closed deals to sell 213 telecommunication towers to Frontier Tower Associates Philippines, Inc. and MIESCOR Infrastructure Development Corp. (MIDC) for around P2.6 billion.

“The business of Globe is a capital-intensive one and this transaction that we initiated with tower companies has proven to be a great complement to our rollout of critical infrastructures to achieve wider coverage and consistency of service across the country,” said Rosemarie Maniego-Eala, chief finance officer of Globe, in a statement on Wednesday.

In a regulatory filing, the network operator said that 113 of the towers closed on Tuesday were sold to Frontier Tower for a total cash consideration of P1.4 billion.

It added that 77% of the 113 towers are ground-based and 23% are rooftop-based located in Luzon, Visayas, and Mindanao.

The latest deal closing brings the total received by Globe from Frontier Tower to around P26.6 billion for 2,094 towers out of the 3,529 acquired by the latter.

“The handover of this fourth batch of towers is another important step in our journey towards delivering stronger connectivity and sustainable, inclusive economic growth to the people of the Philippines,” Frontier Tower Chairman and Chief Executive Officer Patrick Tangney said.

Meanwhile, Globe and MIDC — a joint venture between Manila Electric Co. subsidiary MIESCOR and investment firm Stonepeak — closed on Aug. 15 the fourth tranche of their tower deal comprising 100 towers for P1.2 billion.

The tower assets transferred to MIDC are composed of 64% ground-based towers and 36% rooftop towers.

With the recent closing, MIDC is now in control of 1,120 towers from Globe out of the 2,180 towers that are covered by the P26-billion sale-and-leaseback deal signed on Aug. 11 last year.

“Each transitioned tower signifies a step toward building a robust and widespread digital ecosystem. Our journey is a collective effort, and our commitment to advancement remains steadfast, one tower at a time,” said MIDC President and Chief Executive Officer Helen Grace T. Marquez.

MIDC Chief Operating Officer Ricky Steyn said in a separate press release that the newly transferred assets will help in optimizing the company’s operational efficiency.

“As we integrate these towers into our system, we are streamlining our processes to provide seamless connectivity experiences for our customers. Our core focus remains on delivering quality, reliability, and innovation,” Mr. Steyn added.

CREDITSIGHTS RATING
Meanwhile, credit analyst CreditSights has maintained its “market perform” recommendation on Globe, citing the weakness of its broadband segment.

“Despite stable first-half earnings and lower capital expenditure (capex) spending, improvement in leverage has not yet played out as we had expected due to a challenging telecom environment and continued weakness in the fixed wireless broadband segment,” CreditSights said.

Globe has earmarked $1.38 billion or P71.5 billion as capex for 2023. During the January-to-June period, the company used P37.7 billion as capital spending.

CreditSights said Globe is seen to have improved credit over the next two quarters due to the tower sales.

“We see a mildly improving credit outlook aided by residual tower sales and lower capex that outweighs a challenging operating environment,” it said.

CreditSights said that it is anticipating the residual P47.2 billion of tower sale closures through the second half to “boost liquidity and lessen the need for additional debt incurrence.”

Data from CreditSights showed that Globe has four tower sale-and-leaseback deals, which comprise 7,506 towers for a total purchase price of P96.6 billion.

The other companies it has tower sale arrangements are Phil-Tower Consortium, Inc. and Unity Digital Infrastructure, Inc.

CreditSights has also maintained its expectation for low-single-digit EBITDA (earnings before interest, taxes, depreciation, and amortization) growth with second-half growth seen to be modestly higher versus the first half.

“Management has already begun transiting fixed wireless subscribers to wired and focusing more on the wired offering since the end of 2021,” it said.

“It expects its fixed wireless broadband subscriber net losses to stabilize by the third quarter, which should buoy the overall broadband business,” it added.

On Wednesday, shares in Globe went up by P3 or 0.16% to P1,918 apiece. — Justine Irish D. Tabile

DMCI eyes power, mine expansion

DMCI Holdings, Inc. is exploring opportunities for its core businesses, mainly its mining and power units, officials of the Consunji-led firm said on Wednesday.

“We do have a strong stream of feeders for new opportunities and investment. Our core businesses continue to expand organically. Aside from that, at [the parent company level] we continue to look at new verticals that would complement our core businesses,” said DMCI Holdings Deputy Chief Financial Officer Joseph Adelbert V. Legato said during the PSE STAR event.

“We are still expanding out mining and power businesses, but beyond that, we are going up and down the vertical supply chain in order to expand our scope of operations,” Mr. Legato added.

The company expects more value from its coal assets for Semirara Mining and Power Corp. (SMPC) by exploring more mining methods in Semirara Island.

“Assuming production of 15 to 16 million metric tons a year, we have enough coal to last until 2027, which is the end of our COC (coal operating contract),” said DMCI Holdings Senior Vice-President for Communications and Investor Relations Cherubim O. Mojica.

“But even after that, assuming a favorable outcome for our COC application extension, we’re exploring other mining methodologies that would allow us to generate more value from the coal reserves of the island,” Ms. Mojica added.

She said this would mainly depend on exploration activities, which the company would do if the COC extension has been issued.

The company is also expecting sales in China to weaken given economic headwinds in the foreign country. This is after it reported a 75% surge in China shipments for the second quarter to 1.4 million metric tons (MMT) from 0.8 MMT.

“Given the economic trend in China, we don’t expect China sales to remain strong or even improve,” Ms. Mojica said.

For its nickel ore assets through DMCI Mining Corp., the company expects to start operations for two of its nickel facilities in Zambales by December this year and the middle of next year.

“We have five areas undergoing permitting and they are in varying stages of accomplishments,” Ms. Mojica said. “For Palawan, we are expecting to operate by the third quarter next year.”

She added that the remaining two nickel facilities are still in the exploration stage.

For the second quarter, DMCI Holdings posted a 9% decline in attributable net income to P8.24 billion from P9 billion last year.

Its revenues for the period slipped by about 2% to P36.96 billion from P37.7 billion last year, with higher electricity sales offsetting the impact of weaker commodity prices and fewer construction achievements.

On Wednesday, DMCI Holdings went up by 4.49% or 42 centavos to close at P9.78 per share. — Adrian H. Halili

Eased vaccine rule seen to boost inbound travel

PHILSTAR

AIRLINES are anticipating further growth in international travel after the Department of Health removed the vaccine certificate mandate for inbound foreign travelers starting Aug. 12.

Budget carrier Cebu Pacific, operated by Cebu Air, Inc., said it welcomes the lifting of the travel requirement.

“[T]his will further encourage travelers from all over the world to visit the Philippines,” said Carmina Reyes-Romero, director for corporate communications of Cebu Pacific, in a Viber message.

“As demand for travel increases with the easing of health protocols, Cebu Pacific will continue to improve its operations to ensure a safe, accessible, and affordable air transport for our passengers,” she added.

Flag carrier Philippine Airlines Spokesperson Cielo C. Villaluna said the removal of the mandate will ease travel for inbound travelers, which would lead to increased foot traffic.

“We look forward to serving more tourists and business travelers in both our international and domestic travel sectors. We will continue to work on enhancing the passenger experience through digital transformation and fleet expansion,” she said in a Viber message.

The Health department’s Circular 2023-06 states that airports and seaports are to accept all arriving international travelers regardless of their vaccination status.

AirAsia Philippines Head for Communications and Public Affairs Steve F. Dailisan said the vaccine certificate has been the most essential travel requirement for inbound tourists. 

“[The lifting of the travel requirement] is also very timely now that we are a few days away from welcoming the ‘Ber’ months, the usual peak of travel in the Philippines,” he said.

AirAsia Philippines in its study found out that Koreans were the leading nationality among visitors to the Philippines from Jan. 1 to Aug. 13, representing 13% of the total.

They were followed by Japanese visitors at 7%, Chinese at 6%, Taiwanese at 3%, and Americans and other nationalities at 22%.

Noteworthy destinations are Cebu, Caticlan in Boracay, Davao, Iloilo, and Tacloban, the airline said.

The Department of Tourism set a target of 4.8 million international tourist arrivals for 2023, after recording 2.65 million visitor arrivals last year.

In her presentation at the House Appropriations Committee’s deliberations on the 2024 national budget on Tuesday, Tourism Secretary Ma. Esperanza Christina G. Frasco said that year-to-date arrivals reached 3.43 million, reflecting 71% of the target in 2023. — Justine Irish D. Tabile

Fuel surcharge for airlines to rise in September

Image by Andy Choinski from Pixabay

The Civil Aeronautics Board (CAB) has raised the passenger and cargo fuel surcharge rate for September, after keeping it at level 4 for three consecutive months or from June to August.

In an advisory posted on Wednesday, the CAB announced that the applicable fuel surcharge for domestic and international flights was raised by two levels or to Level 6.

Under level 6, passengers will have to pay a fuel surcharge of between P185 and P665 for domestic flights, and between P610.37 and P4,538.40 for international flights.

At the current level 4, CAB permits a fuel surcharge per passenger of between P117 to P342 for domestic flights and from P385.70 to P2,867.82 for international flights.

CAB Officer-in-Charge Maria Elben SL. Moro said that the applicable conversion for the Sept. 1-30 period is P54.97 per US dollar.

The fuel surcharge level set for September is the first rise since CAB started reducing rates in April.

Airline fuel surcharge is an optional fee imposed by airlines to recover fuel costs. It is evaluated based on a one-month average of jet fuel MOPS (Mean of Platts Singapore) prices. — Justine Irish D. Tabile

ISOG champions public sector cybersecurity, digital transformation at 2nd I AM SECURE 2023 Forum

The Information Security Officers Group (ISOG) continued its cybersecurity campaign this year with the second forum of I AM SECURE 2023. With the theme Strengthening Defenses: Continuing Digital Transformation, the forum was held on Aug. 10, 2023, at the Dusit Thani Hotel.

While the first forum held in June focused on banking and finance industries, the second forum revolved around equipping and establishing the cyber defenses of the government and public sector in the age of digital transformation.

“As our government implements plans and strategies to reinforce the Philippines’ defenses in the digital realm, it needs the support of information security professionals throughout the country.  With a huge responsibility on our shoulders, we have to ensure that we are equipped for the battle. The constant need to keep our guard up is the very reason that we are dedicating our time to this forum and other activities organized by ISOG,” said ISOG President Archie Tolentino  in his opening remarks.

The forum brought together hundreds of participants, consisting of local and international decision-makers, C-suite executives, and cybersecurity experts. The delegates learned about empowering data privacy in the Philippines from keynote speaker, Atty. John Henry D. Naga,  Commissioner of National Privacy Commission. Moreover, guest speaker,  Vazir Joshua Querol, Project Director for Services of the Department of Information and Communications Technology’s National Government Data Center Project, shared updates on current projects that aims to Strengthen the Digital Transformation Journey.

The plenary session featured a dynamic lineup of informative and engaging presentations by global thought leaders and industry experts from the Titanium and Platinum sponsors. The roster of speakers included Brian Cotaz, Technical Solutions Architect for Cybersecurity at Cisco (through Trends); Abhilash Purushothaman, VP and General Manager, Asia at Rubrik (through Exclusive Networks); Christina Tee- Bautista, Senior Pre-sales Consultant at Trend Micro (through Netsec and VST-ECS); Ching Ping Wong, Business Development Manager, SEA and HK at Fortinet (through Netsec & VST-ECS); Harley Magsino,  Country Manager at Arcon; Edward Lim, Security Solutions Architect at Crowdstrike and Kunal Jha,  Regional Director of Sales – Asia, at Netskope (through Nextgen); Brandon Tan, Director, Sales Engineering Asia Pacific & Japan, Forcepoint; Han Yang Lau Manager, Solutions Architects, APAC at SecurityScorecard (through WSI); Chin Keng Lim, Director for Sales Strategy, ASEAN at F5 (through Westcon); Chris Thomas, Senior Security Advisor at ExtraHop (through Westcon); Roger Hsu, Regional Sales Director at Sailpoint; and Edwin Patricio, APAC Sales Engineer at Delinea (through ITSD, and Atty. John O Bello, Medialdea, Bello and Suarez  (represented Kaseya and NMI).

One of the highlights of the forum was the panel discussion among some of the plenary speakers representing the Titanium and Platinum Sponsors. Moderated by Ricson Singson Que, President of SQrity Consulting, the panel discussion entitled entitled Implications of Artificial Intelligence (AI) in Today’s Digital Transformation Efforts  allowed the forum participants to learn from the panelists’ take on how AI can help organizations accelerate their digital transformation journey.

In the afternoon, participants attended a breakout session featuring presentations by speakers from the Gold and Silver sponsors including Derek Lok, Director, South East and North Asia at Yubico(through WSI); Justin Eric Rivera, Manager, Technology & Product Solutions at Trellix (representing VST-ECS); Duc Toan Lee, Technical Director at Bizsecure (with Gatewatcher and Wallix), Ryan Ngai, APAC Field Chief Technology Officer at Stellar Cyber, with Microgenesis (through Nextgen); Lee Mun Fai,  Field Chief Technology Officer at ViewQwest; Saurabh Lal,  President for Cyber Research & Customer Success at Cyfirma (through Nextgen); Jefferson Haw Principal Solutions Architect at  Okta (through Nextgen); John Henri Ralleta, Sales Engineer at  Gigamon (through Westcon); and Amy Lyn Tabiliran-Castillo, Business Unit Head-Security at Fujitsu.

The forum also provided an avenue for participants to interact with each other through the speed networking session, a series of brief one-on-one information exchanges.

“Attending this forum is one of our ways to sharpen our expertise, equipping us with up-to-date knowledge and skillset essential to ensuring cybersecurity. ISOG commits to providing everyone in our industry with opportunities to advance their proficiency and connect with other professionals,” ISOG Vice President and 2023 Events and Membership Chairman Chito Jacinto said.

ISOG is set to hold the ISOG Conference, in celebration of cybersecurity month, on October 26 at Shangri-la at the Fort.  The organization is also looking forward to its annual donation drive and corporate social responsibility project in December.

Organized by XMS, the second forum of the I AM SECURE 2023 was supported by media partners, DIGI.PH, Backend News, BusinessWorld, and Market Intelligence Partner, IDC.

ISOG is a leading professional information security organization that provides a platform for companies to the country’s cybersecurity community by strengthening information technology through education and awareness programs. Promoting fellowship among information security leaders to achieve sustainable info. security environment.

For more details about ISOG and its campaigns, visit ISOG’s official website at www.isog-org.ph and socials at LinkedIn: ISOG (Information Security Officers Group), Facebook: ISOGPH, YouTube Channel: ISOG SUMMIT.

 

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Meet Raging Bull Chophouse’s burger sibling

RBB KICKASS

CITED in Asia’s 50 Best Discovery List, the Raging Bull Chophouse and Bar at Shangri-La The Fort knows its steaks. You should meet their burgers.

A sister brand, Raging Bull Burgers, opened its doors at Shangri-La Plaza on Aug. 10 for a tasting (but has been open since July).

We met two of their burgers recently, namely, the Kickass (the names might be PG-13; beers brewed exclusively by Nipa Brewery for them are also available), made with 1/3 lb. Angus beef patty, iceberg lettuce, tomato, dill pickles, and Raging Bull sauce; and the Raging Wagyu, 1/3 lb. Australian Wagyu beef patty, braised onions, chili chutney, lettuce, tomato, and dill pickle. Both burgers were especially satisfying, especially with their quality and that price — at about P350, while premium burgers in the city can clock up to P450 or higher.

While the beef is imported, sustainable diners can sigh a bit easier: most of the ingredients used in the store are sourced from local farmers, while the utensils are made biodegradable cornstarch.

Other items in the menu include The Mighty Beast (US Angus beef patty,  griddle maple bacon, aged cheddar, spicy beer mustard sauce, lettuce, tomato, and dill pickle toppings), Kickin’ Chicken (grilled chicken, smoky bacon, iceberg lettuce, tomato, dill pickle, and Raging Bull homemade BBQ sauce), Naked Fish (fried grouper fillet, criolla and romaine lettuce, and tartar sauce), and a vegan option, The Clean Slate (squash patty, iceberg lettuce, cauliflower parsley tabbouleh, and a vegan BBQ sauce). All of these are topped off with a bun (also locally sourced) made from corn, which, while giving the burger a sweetish note, is also firmer — which keeps the burger more intact as you hold it between your hands.

The patties are made from choice cuts of brisket, rump, and wagyu; a callback to the fancier steakhouse with which the burger joint shares its name. Soh Rosario, Director of Marketing Communications at Shangri-La The Fort outlined the close relationship within the brands during the launch. “It’s on the premium side. When you say Raging Bull, consumers can be assured that it’s premium quality beef.” He adds, “It’s the Shangri-La brand. Five-star quality.”

Raging Bull Burgers is located at the ground floor of the North Wing of Shangri-La Plaza Mall in Mandaluyong. — Joseph L. Garcia

Repower Energy expects to maintain growth momentum

Repower Energy Development Corp. is optimistic that it would further grow its earnings for the rest of the year, mainly driven by the commissioning of its hydropower plant.

In a stock exchange disclosure on Wednesday, the company reported an attributable net income of P40.40 million for the second quarter, a reversal of the P12.39-million net loss incurred in the same period last year.

“The third and fourth quarters of 2023 is expected to likewise grow further with the commissioning of the Tibag 5.8-megawatt (MW) plant last June and the Lower Labayat presently undergoing testing and commissioning,” it said.

For the April-to-June period, Repower Energy saw its gross revenues increase by 48.6% to P105.35 million from the P70.91 million reported a year ago.

For the first semester, its attributable net income reached P88.65 million, reversing the P28.78-million net loss a year ago.

Repower Energy’s net income for the period climbed more than threefold to P95.70 million from P27.32 million previously, which is mainly due to the contribution of its two power plants, the Tibag and the Lower Labayat hydroelectric facilities.

For the first half, Repower Energy’s gross revenues jumped 64.5% to P226.31 million from P137.57 million in the corresponding period a year ago.

Repower Energy, a subsidiary of Pure Energy Holdings Corp., has set a target of expanding its installed capacity by 1 gigawatt in the next five years, with its main focus on hydropower plants.

It debuted on the Philippine Stock Exchange last July 24 where it raised P1.15 billion to fund the expansion of its renewable energy portfolio. — Ashley Erika O. Jose

Taste of high-altitude wines

WHEN I first encountered Bodega Colomé wines around eight years ago, either in VinExpo Asia Hong Kong or ProWein Germany (not sure which one), I was immediately captivated by their wines during my tastings of their verticals of Malbec. After all, Malbec is Argentina’s proudest and most famous wine varietal. Back then, I only recalled three levels of Malbec from Colomé, and they were all color-coded: Red-label for Estate Malbec, Blue-label for the Authentico Malbec, and Black-label for their top-of-the-line Reserva Malbec.

Colomé back then also had the distinction of being the highest vineyard on earth according to the Guiness Book of World Records, which stood then at 3,111 meters or 10,200 feet above sea level in Salta region. Imagine this — an elevation of over 3,000 meters is close to that of our own Mount Apo, the highest mountain and volcano in the country, which takes hikers two to four days to reach the summit. This record was shattered recently by a vineyard in Cai Na Xiang, Qushui, Lhasa County, Tibet, China that is situated at an altitude of 3,563 meters.

However, Bodega Colomé as a winery and vineyard owner, still owns some of the world’s highest altitude vineyards, ranging from a low of 2,300 meters to a high of 3,111 meters. In comparison, France’s Bordeaux vineyards are just around 40 meters above sea level, while the renowned Napa Valley in California has its highest altitude vineyards in their subregion of Atlas Peak, and those vineyards can only go as high as 800 meters.

Obviously, this means that lower altitude vineyards can still make amazing wines, as elevation is just one of several factors affecting vineyard conditions. So then, what are the qualities of high-altitude wines?

BENEFITS OF HIGH-ALTITUDE VINEYARDS
First, oenologists agree that altitude is relative and has more of an impact on vineyards in areas with tropical and subtropical climates of very hot and humid summers, rather than those in areas with a temperate climate of moderate summers like the ones in Europe and North America. High altitude cools down the vines in areas with temperatures that may otherwise scorch the berries, especially in the light of global warming.

A higher altitude also means a wider difference between day and night temperatures that ultimately preserves acidity and contributes to freshness.

Also, a high altitude gives the vines more direct contact with the sun, making grapes reach their ultimate physiological ripeness with positive effects on thicker skins, more color, and likely, more flavor depth.

MORE ABOUT BODEGA COLOMÉ
Bodega Colomé was founded in 1831, almost 200 years ago, and is in fact the oldest continuously operating winery in all of Argentina. Since 2001, the winery has been under the control and management of businessman Donald Hess, and at present, it is under the auspices of the second generation, Larissa and Christoph Ehrbar.

Bodega Colomé is a pioneer in making the best high-altitude wines in the world.

Bodega Colomé is based in Calchaquí Valley in the Salta region, home to Argentina’s highest vineyards. This year, Bodega Colomé ranked No. 24 out of the Top 100 in the World’s Best Vineyards list.

While you can already purchase Colomé Estate Malbec or Colomé Authentico Malbec at your favorite online wine shops, there are three other specific high-altitude Malbec wines that are missing from the Bodega Colomé portfolio in the Philippines.

These missing Malbecs are actually Colomé’s finest wines that came to being relatively recently. I was very fortunate to preview and taste these top-tired premium Malbec wines — all from Colomé’s highest vineyards, and all boasting of great critical reviews. These wines are not yet available in the Philippines but will most likely be released here come early 2024. 

Below I share my tasting notes from when I tasted them for the first time.

MY CUSTOMARY TASTING NOTES:
Colomé Altura Maxima Malbec 2018, Salta Argentina — “altura maxima” means highest altitude and this wine comes from vineyards with elevation at 3,111 meters (10,200+ feet) above sea level, still the second highest vineyard after the one in Tibet. Only 7,000 bottles are produced for this specific wine annually.

“Wine has brilliant brooding deep violet color, nose of freshly picked berries, figs, buttered-toast bread, full-bodied, mocha-taste, with nice BBQ charred flavors, long with butter-scotch lingering finish.”

Estimated retail price: P8,000

Colomé El Arenal Single Vineyard Malbec 2021, Salta Argentina — from the estate’s El Arenal vineyard with elevation at 2,600 meters (8,500+ feet) above sea level.

“Wine has bright dark ruby color, aromatic, coffee-latte nose, intense flavors, more on tangier fruits like raspberry, rich and velvety texture, tannin are coffee-bean like, with lingering dark chocolate-bitter finish.”

Estimated retail price: P3,300

Colomé 1831 Oldest Vines Malbec 2019, Salta Argentina — named after the founding year of the winery. This wine comes from the oldest vineyards of the winery, with many over 100 years old, and grown at an elevation of 2,300 meters (7,500+ feet) above sea level.

“The wine has dark ruby color, more delicate flavors, cinnamon pie, juicy, minty, silky, long raisiney finish.”

Estimated retail price: P4,200

After tasting these Colomé wines, I am now a true believer of high-altitude wines, but don’t take my word for it, try them as soon as they are available on the market. And if you want to try the existing Colomé range from the Estate — the Authentico to their white wine Torrentes — look for them at your favorite online stores, or e-mail Golden Wines, Inc. at info@goldenwines.com.

The author is the first Filipino member of both the Bordeaux-based Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux (FIJEV) and the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy, and other wine related concerns,e-mail the author at wineprotege@gmail.com, or check his wine training website at https://thewinetrainingcamp.wordpress.com/services

Changing the way we drive

TIM-FOSTER-TW-UNSPLASH

I have been writing about the electric vehicle (EV) industry for some time now, tackling various issues and concerns regarding the Philippines’ phased transition to EV from gas- and diesel-powered motor vehicles. But truth be told, I have not actually driven an EV myself until a few weeks ago when Audi Philippines introduced the new Audi Q8 E-Tron.

My thanks to former BusinessWorld colleague Brian Afuang for the invitation to view up close and personally try out the new fully electric Audi Q8. It has been around 20 years since I gave up my weekly motoring column, and the Audi event was a great opportunity to reconnect with old friends and other motoring journalists.

More importantly, the event gave me a new perspective on EVs. You see, I am late in the game when it comes to driving electric, or hybrids for that matter. I have never owned such vehicles, and to be honest, up until recently remained unconvinced of the urgency to shift to hybrid or EV. Heck, I still own a gas-guzzling 1975 Range Rover classic with a V-8 engine.

But driving the Audi Q8 E-Tron even for just a short time made me realize how extensively technology has been changing the motoring industry. And it is not just the internal combustion engine that is being replaced. Most everything else connected to “old school” motoring seems to be on the way out with all the “computers” now in our cars.

Despite my background in electronics, having gone to a technical high school, I have always been averse to more electronics in cars. Thus, my natural liking for motor vehicles with limited electronics, for old-school technology. To date, all the cars I own use either gas or diesel fuel, are rear-wheel drives, and have ladder frame chassis — all old-school tech.

I entered this era of EVs with much skepticism. I doubted the range and lifespan of EV batteries; EVs’ ability to survive the heat of our summers and our typhoons and floods; and the local motoring industry’s capability to deal with EV repair and maintenance issues. I also questioned the economics of purchasing an EV relative to fluctuations in fuel prices and the limited number of charging stations.

All told, my sense of things told me not to put my hard-earned money on any EV just yet, especially given the premium on its sticker price compared to gas- or diesel-powered cars. And not until more charging stations are put up inside and outside of Metro Manila. Even hybrids, given their price premium over ordinary vehicles, I felt were still not very accessible to many of us. I will make the jump perhaps when EV prices come down — or when gas or diesel cars are no longer sold.

The Audi Q8 E-Tron, obviously, is only for the wealthy few who can afford its price tag of P6.25 million for the base variant and P7.25 million for the top-of-the-line variant Q8 E-Tron 55 Quattro. It is, obviously, not the every-man EV. It has a claimed range of up to 600 kilometers and can wade in about half-meter of flood water. These two features are the game-changers that tempered my skepticism. My Audi Q8 E-Tron experience revealed a realm of possibilities.

In so short a time, the EV industry has gone a long way in producing better-built cars. And with continuous investments in research and development, technology changes so fast that upgrades now come in shorter cycle times. So, if an Audi Q8 E-Tron can have a claimed range of 600 kilometers today, which was unheard of a couple of years back, then I am sure by next year even more EVs will start trumpeting longer ranges as well. And I would not be surprised if Audi, by 2024, retails EVs with ranges over 600 kilometers.

The Ford Mustang Mach-E has a claimed range of 372 miles (595 kilometers) while the BMW iX has a claimed range of 380 miles (608 kilometers). The newer Tesla Model 3 claims a range of 389 miles (622 kilometers). By next year, with newer battery technologies, many models will probably be looking at ranges of 700-800 kilometers, thus mitigating the urgency of making more “charging” stops or needing to access more charging stations. A game changer.

Upgrades and development with respect to weather and the elements are also surely forthcoming. I have always doubted if EVs could wade in floodwater, even the shallow ones. After all, one would generally assume that “electric” cars will not do well in “wet” environments. But lo and behold, the Audi Q8 E-Tron can wade through 500 mm of water. Like many others, I also dipped the car in the big tub of water and came out unscathed. Again, in just a short time from now, I am certain Audi and other EV makers will be going for even deeper wading depth. More important, EVs are proving to be real all-weather vehicles.

But the greater revelation for me is how driving an EV was like not driving at all. I did not feel any strong engine vibration, or heard much noise from the engine compartment as I drove around the track. There was no engine revolution or automatic shifting to “feel.” Initially, I found this disconcerting. But, after a while, I began to appreciate the quiet engine and the silent drive. And I am certain, after such an experience, many motorists will start turning to EVs as well.

And this now prompts me to believe that with the market putting a greater premium on comfort and convenience, and fuel “savings,” EVs might just turn the corner sooner than later and become the initial choice for new car buyers. Better range, and ability to navigate wet environments, are big pluses. And with EVs now coming in various configurations, customers have a greater variety to choose from.

During my time in the Audi Q8 E-Tron, I did not dare touch any of the buttons or switches, for fear of disrupting any of the “settings.” For the car, in the truest sense, was being run by a network of small computers — by artificial intelligence — that worked with each other to control all the moving parts and components to ensure the optimum configuration for the drive. All I did was gently step on pedals, steer the wheel, and enjoy my first EV experience.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

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