Joblessness picks up in April amid tighter lockdowns
THE RANKS of unemployed Filipinos increased in April, when the government tightened lockdown restrictions in Metro Manila and nearby provinces to curb a surge in coronavirus disease 2019 (COVID-19) cases, data released by the Philippine Statistics Authority (PSA) showed.
Preliminary results of the PSA’s April 2021 round of the Labor Force Survey showed an unemployment rate of 8.7%, inching up from 7.1% in March.
Metro Manila, Cavite, Laguna and Rizal were placed under an enhanced community quarantine from March 29 to April 11 as the government tried to slow the surge in COVID-19 cases that were overwhelming hospitals. This was later relaxed to a more lenient modified enhanced quarantine from April 12 to 30.
The April unemployment rate was still lower than 17.6% in April 2020 — at the height of the strictest form of lockdown in Luzon at the onset of the pandemic.
In absolute terms, there were 4.138 million unemployed Filipinos in April, higher than 3.441 million in March and 7.228 million in April 2020.
The underemployment rate — the proportion of those already working but still looking for more work or longer working hours — worsened to 17.2% in April from 16.2% in March. This translated to 7.453 million underemployed Filipinos, more than 7.335 million in the previous month.
The latest figure was lower than April 2020’s 18.9% underemployment rate, though there were fewer underemployed Filipinos (6.398 million) because many had left the labor force that time.
The size of the labor force was about 47.407 million in April, down from 48.772 million in March. This brought the labor force participation rate to 63.2% of the working age population in April from 65% a month earlier.
In a joint statement, Socioeconomic Planning Secretary Karl Kendrick T. Chua, Finance Secretary Carlos G. Dominguez III and Budget Secretary Wendel E. Avisado noted that while the results in April were “substantially better” than last year, there was “temporary reversal” of the gains made in the previous months due to the lockdowns.
“The impact of the enhanced community quarantine and modified enhanced community quarantine on unemployment is more pronounced in regions with stricter quarantine measures, further highlighting the sensitivity of the labor market to the quarantine level,” they said.
The economic managers said unemployment rates in the National Capital Region and Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) regions, where the strictest quarantines were imposed, were the highest in April at 14.4% and 13.4%, respectively.
“Meanwhile, the unemployment rate outside NCR continued its general downward trend, declining from 8.7% in January 2021 to 7.9% in April 2021. This reflects the gains from the safe reopening of the economy in the provinces,” they said.
They also noted that total employment in April remained above pre-pandemic levels: “While the economy lost 8.7 million jobs at the height of the quarantines last April 2020, the economy generated 9.4 million jobs or a net of 0.7 million jobs between April 2020 and April 2021. Improving the rate of job creation will be crucial in our recovery effort this year,” they added.
In an e-mail, Security Bank Corp. Chief Economist Robert Dan J. Roces said the April result “underscores the sensitivity of sectors to stricter mobility curbs.”
The employment rate — the proportion of the employed to the total labor force — stood at 91.3% in April, down from 92.9% in March. This was equivalent to 43.269 million Filipinos in April compared with 45.332 million in the previous month.
The service sector made up 57.4% of total employment in April, slightly up from 57.2% in March. Agriculture remained mostly unchanged with 24.4%, while industry edged down to 18.2% from 18.4%.
Between April 2020 and April 2021, services saw the most jobs generated on a net basis at about 5.509 million, followed by industry’s 2.131 million and agriculture’s 1.799 million. Among subsectors, wholesale and retail trade led with 3.391 million net jobs created followed by agriculture and forestry (1.55 million) and construction (1.346 million).
In contrast, 2.062 million net jobs were lost between March and April led by industry (917,484), services (575,124), and agriculture (569,742). On a month-on-month basis, construction posted the largest drop in net employment among subsectors (804,893), followed by agriculture and forestry (492,608) and wholesale and retail trade (456,747).
“Moving forward, the main challenge to economic authorities will be to restore business confidence on the back of gradual reopenings that should result in more persons joining the labor force. With the recent decision by authorities to start the ‘phased implementation’ of the vaccination of workers in essential industries (A4 sector), a turnaround in confidence is possible soon and should lead to better employment numbers and contribute to the pace of the economic recovery beginning in the second half of this year,” Mr. Roces said.
In a separate e-mail, Asian Institute of Management economist John Paolo R. Rivera said normalization would only happen once herd immunity is achieved and the economy is fully opened.
“The employment figures so far, given measures to contain the pandemic, can be an indication that we still cannot expect significant improvements in GDP (gross domestic product) growth figures. Steep growth rates are constrained by the ‘opening-lockdown-opening’ approach because momentum is not sustained,” he said.
“There might be a need to channel resources in enabling enterprises to stay afloat and allowing consumers to sustain consumption through assistance or amelioration programs. It cannot be a one-time-big-time provision. It has to be strategically and systematically done,” he added. — Lourdes O. Pilar with inputs from Beatrice M. Laforga
World Bank cuts GDP growth outlook for Philippines
By Beatrice M. Laforga, Reporter
THE World Bank slashed its Philippine growth outlook for this year to 4.7% as it expects a “fragile and challenging” rebound amid a resurgence in coronavirus disease 2019 (COVID-19) infections, renewed lockdowns and worsening poverty.
In its Philippines Economic Update released on Tuesday, the multilateral lender cut its 2021 gross domestic product (GDP) growth projection again from 5.5% in March and the 5.9% forecast given in January.
While the World Bank’s latest projection is a reversal of the record 9.6% contraction in 2020, it is still lower than the government’s GDP growth target of 6%-7%.
Kevin C. Chua, a World Bank senior economist, said the GDP estimate for the Philippines was lowered after a larger-than-expected 4.2% economic contraction in the first quarter and the reimposition of tighter quarantine restrictions in the capital region in late March.
“However, the recovery remains fragile and challenging given the continuing threat — the pandemic — on the country’s health system, the lives and livelihoods of Filipinos and the vitality of the economy,” he said at an online briefing on Tuesday.
A spike in COVID-19 cases in March prompted stricter lockdown curbs in Metro Manila and nearby provinces until mid-May.
Restrictions have been eased since then as new infections fell significantly from the peak. On Tuesday, the Health department reported 4,777 new infections, bringing the number of active cases to 56,452.
The World Bank expects the government’s mass vaccination program to gain traction in the second half, which will help boost consumer and business confidence and domestic consumption.
“The growth prospects hinge on the country’s ability to manage the COVID-19 health crisis, the medium-term growth trajectory depends on effective pandemic containment delivery of mass vaccination and further loosening of mobility restrictions,” said Mr. Chua.
The World Bank lowered its growth forecast for next year to 5.9% (from 6.3% in March) and to 6% in 2023. This is still lower than the government’s 7-9% growth targets for 2022 and 6-7% in 2023.
The latest projections will bring the World Bank’s estimated growth for the Philippines to 5.7% over 2020-2029, but Mr. Chua said this is partly because 2021-2022 are coming from a low base last year.
“Economic growth is expected to recover in the medium term for the Philippines because of the improvement in the external environment and the projected return of domestic activity,” Ndiame Diop, World Bank country director for Brunei, Malaysia, the Philippines and Thailand, said during the briefing.
Mr. Chua said a strong rebound in the country’s major trading partners such as the United States and China could buoy Philippine exports and remittances. However, the multilateral bank warned that the country lags in leveraging foreign investments after the pandemic because of its restrictive foreign policies.
The base effect coming from the deep contraction in 2020 will also contribute to this year’s growth while the national elections in May 2022 could stimulate economic activity towards yearend, the World Bank said.
Market uncertainty and muted bank lending could temper investments from the private sector.
Mr. Chua said another wave of COVID-19 cases poses a major risk to the Philippine economy since this could threaten the healthcare system.
A possible delay in the arrival of vaccines could also dampen the outlook for the Philippines, along with other external risks such as a slower global economic recovery, disruptions in international value chains and trade protectionism.
While it is crucial for the government to prioritize pandemic containment and the vaccination program, Mr. Chua said effective rollout of social protection programs such as direct cash aid to poor families will help prevent the long-term adverse effects of the pandemic on human capital.
“COVID-19 pandemic-related shocks, including hunger incidences have manifested in higher levels of childhood malnutrition, especially among the poor. It is important to reduce the extent of these losses and mitigate the shocks from resulting in a persistent impact on wellbeing in future economic opportunities. Social programs including cash transfers can help alleviate food in subsistence conditions,” he said.
Since the government’s fiscal space has narrowed with the sustained high expenditures and weak revenues, Mr. Chua said government spending should be efficient and targeted.
The state must also pursue fiscal consolidation in the medium term by improving tax administration, ensuring that all expenditures have meaningful impact on the economy, and possibly raising taxes, the economist said.
POVERTY
The World Bank estimated the country’s poverty rate, or the share of the population living with less than $3.20 a day, will increase by 1.4 percentage points to 21% in 2020 from 16.7 in 2018.
This meant two million more Filipinos slid into poverty last year from 2018 levels, even after considering the impact of government subsidies.
“The reimposition of stricter quarantines risks poverty further. However, if wage and nonfarm employment increase with an anticipated GDP growth and inflation (remains) stable, the poverty rate will likely decline back to 2018 levels by 2021 and maintain a downward trend through 2022,” Mr. Chua said.
The multilateral bank said the quality of jobs being created remain a concern despite signs of recovery in the labor market as the share of wage workers dipped while the proportion of self-employed and nonpaid workers increased.
MANDANAS RULING
Amid limited fiscal space and uncertainties over service delivery, the World Bank cautioned Philippine authorities to “prudently manage institutional changes” when the Mandanas ruling is implemented next year. This means the share of local government units (LGUs) from national tax collections, or their internal revenue allotment (IRA), will increase.
IRA of LGUs could spike by 55% to 1.08 trillion in 2022, prompting the National Government to devolve some of its functions.
“While the Mandanas ruling provides an opportunity to strengthen decentralization, a poorly managed implementation of the Mandanas ruling represents a significant risk to local development. In particular, local governments are likely to face issues on weak budget execution, while the transition towards re-devolution could lead to gaps in service delivery,” the bank said in a special chapter of the latest report.
Short-term and long-term policies should be rolled out to manage the transition and address implementation challenges, it said.
Factory output rebounds in April after 13 months of decline — PSA
INDUSTRIAL PRODUCTION recovered in April following 13 straight months of falling output, the Philippine Statistics Authority (PSA) reported on Tuesday.
Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries showed factory output, as measured by the volume of production index (VoPI), surged by 162.1% year on year in April. This marked a reversal from the 73.3% annual decline recorded in the previous month as well as the 64.8% drop in April 2020.
April’s growth snapped the thirteen consecutive months of contraction in manufacturing output.
So far, factory output has averaged by a 19.6% decline this year.
Twenty out of 22 industry divisions posted year-on-year growth in April, 15 of which were in triple digits led by the manufacture of basic metals (687.5%); fabricated metal products, except machinery and equipment (610.1%); and furniture (577.4%).
On the other hand, the manufacture of coke and refined petroleum products continued to post an annual decline in April at 32.3%, though slower than March’s 97.5% fall. Likewise, the manufacture of basic pharmaceutical products and preparations shrank by 18.9% in April, softer than 27.7% in the previous month.
Capacity utilization — the extent to which industry resources are used in producing goods — inched up to 63.6% in April from 63% in the previous month.
Eighteen out of 22 industry divisions averaged a capacity use rate of at least 50% in April, led by the manufacture of furniture (81.3%), nonmetallic mineral products (80.9%), and electrical equipment (75.2%).
In comparison, the IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI), which is based on survey responses, fell to 49 in April from 52.2 in March. The country’s PMI in April fell below the neutral 50 mark that separates expansion from contraction. This means the respondents that reported a decrease outweighed those that reported an increase with regard to indicators like output, new orders, inventory, employment, input and selling prices, as well as sentiment over the following 12 months.
In an e-mail, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion attributed the April VoPI results to base effects as the same month last year brought manufacturing to a near standstill at the onset of the coronavirus disease 2019 (COVID-19) pandemic.
“The first lockdown in April 2020 rendered everyone clueless of how to approach the spreading virus. Fast forward to April 2021… companies and employees have somehow adjusted to the restrictions made by the government to help curb the virus’ spread. I think this has helped somehow and production has clearly adjusted to the new normal,” Mr. Asuncion said.
Federation of Philippine Industries Chairman Jesus L. Arranza recounted several problems that hounded manufacturing last year, including the lack of transportation for factory workers, the pause in construction of commercial and residential buildings, and other issues concerning the opening of establishments as these sorts of work “cannot be simply done from home.”
“[It’s much better lately], because manufacturing industries have synchronized by now with the pandemic restrictions,” Mr. Arranza said in a phone interview.
He added that recovery might have subdued given the reimposition of stricter lockdown measures in Metro Manila and nearby provinces from late-March to mid-May.
Mr. Arranza hopes to see a further rebound in manufacturing as the country’s vaccine rollout picks up and economic activity recovers.
UnionBank’s Mr. Asuncion likewise sees further recovery, barring a fresh wave of COVID-19 cases.
“With more vaccine supplies coming online, economic recovery prospects may continue to be better, and with this, the environment may continue to recover from the lack of consumer and business confidence in the last months,” the economist said. — Bernadette Therese M. Gadon
Japan issues 3rd tranche of its standby loan to PHL
THE Philippines has received ¥20 billion (P8.71 billion) as part of the third tranche of the Japan International Cooperation Agency’s (JICA) ¥50-billion standby loan, which will be used in the government’s post-pandemic recovery efforts.
In a statement, JICA, the lending arm of the Japanese government, said the latest issuance has brought overall disbursements from the post-disaster standby loan phase II to ¥40 billion so far, following the ¥10 billion released in January and the first issuance worth ¥10 billion in October 2020.
Signed in September 2020, the loan was seen as a contingency fund for the Philippines in case the government needs to raise money for its recovery efforts following natural disasters or public health emergencies.
JICA Chief Representative Eigo Azukizawa said the release of the third tranche should help the government fund its planned financial aid program for affected households and sectors.
“JICA will continue to support our partner countries like the Philippines in building back better from the COVID-19 crisis. The disbursement hopefully will support social amelioration program for vulnerable people and sectors, and thereby cushioning the economic impact of the pandemic in the Philippines particularly on job losses and support economic recovery efforts,” he said.
Disbursement of the standby loan can be triggered once certain conditions are met, such as a declaration of a state of calamity or of a state of public health emergency; public health emergencies such as the coronavirus disease 2019 (COVID-19) pandemic; and the imposition of an enhanced community quarantine.
JICA said one month of strict quarantine measures in Luzon could lead to economic losses equivalent to 1.5-5.3% of the country’s total economic output, and with up to one million jobs lost, based on a report by the National Economic and Development Authority (NEDA).
Aside from funding the pandemic response, the initial tranches of the loan also supported rescue, relief and rehabilitation efforts of cities and provinces hit by strong typhoons toward the end of 2020.
The standby loan facility can be tapped in batches within three years, while the loan’s validity can be extended by three more years for up to four times.
It has a fixed interest rate of 0.01% and has a maturity period of 40 years, inclusive of a 10-year grace period.
In July 2020, the Philippines also obtained a separate ¥50-billlion loan from JICA for its pandemic response.
“While we support the Philippines with financial resources through PDSL (post-disaster standby loan), JICA will continue to extend our technical assistance in other areas to sustain economic growth, overcome vulnerability of certain sectors and support peace-building and development in Mindanao,” said Mr. Azukizawa.
In a separate statement, the Embassy of Japan in the Philippines said Tokyo would also extend a ¥2-billion grant to help Manila buy more medical equipment and build laboratory surveillance centers. It will also give ¥1-billion worth of grant assistance to develop cold chain facilities in the Philippines.
JICA has more than 70 development projects in the Philippines such as in infrastructure, disaster risk reduction and management, agriculture, energy, health, social development, and the peace process in Mindanao, among other things.
Japan was the country’s top source of official development assistance with outstanding grants and loans totaling $8.537 billion at the end of March 2020, or 42.66% of the Philippines’ foreign aid. — Beatrice M. Laforga
Former broadcast giant ABS-CBN continues to bleed
ABS-CBN Corp. said it would continue to seek partnerships with other companies that would allow it to air its content nationwide after it incurred significant losses in 2020 and the first three months of 2021.
ABS-CBN’s attributable net loss for 2020 stood at P13.46 billion compared with the previous year’s P1.62 billion.
Consolidated revenues declined 50% to P21.42 billion from P42.83 billion in 2019.
Broken down, advertising revenues dropped 69.2% to P7.06 billion from P22.94 billion, while consumer sales fell 27.8% to P14.36 billion from P19.89 billion a year ago.
ABS-CBN said the decrease in advertising revenues was attributable to the absence of the company in the free-to-air advertising space following the cease-and-desist order issued by National Telecommunications Commission on its broadcast operations on May 5, 2020 and the adoption of a resolution denying its franchise application by the House Committee on Legislative Franchises on July 10, 2020.
Voting 70 to 11, the House committee rejected the application for a franchise renewal of ABS-CBN — a media company critical of President Rodrigo R. Duterte — saying the broadcaster was “undeserving” of the privilege.
Mr. Duterte had openly harbored a grudge against the media company.
“Consumer sales was similarly affected by the cease-and-desist order as this prohibited the company in engaging in Sky Cable’s DTH (direct-to-home) services and distribution of TV Plus Boxes,” ABS-CBN said.
The company also closed down several ancillary businesses including Heroes Burger, Kidzania Manila and Studio XP due to the coronavirus pandemic.
It likewise implemented a retrenchment program last year. “In addition to the retirement costs, the company also provided additional separation benefits amounting to P1.1 billion during the year,” ABS-CBN said.
The company currently produces content and distributes programs through its partnerships with A2Z Channel 11 and TV5, Kapamilya Online Live on Facebook and YouTube, and streaming service iWantTFC, among others.
“Launching these platforms allowed the company to generate P1.01 billion in revenues mostly from the fourth quarter,” ABS-CBN said.
FIRST QUARTER
The company’s attributable net loss for the first quarter of 2021 widened to P1.95 billion from P763.30 million in the same period last year.
Consolidated revenues decreased 54.6% to P3.92 billion from P8.64 billion previously.
Broken down, advertising revenues dropped 78.3% to P929 million from P4.28 billion, while consumer sales fell 31.3% to P2.99 billion from P4.38 billion previously.
To mitigate the impact of the denial of the franchise application and of the coronavirus pandemic on its operations, ABS-CBN said: “The company has and will continue to pursue partnerships with various reputable companies that will allow the parent company to share its free-to-air produced content nationwide.”
“The parent company will closely coordinate with its creditor banks and negotiate for waivers of certain covenants as the need arises. Management believes that it will be able to satisfy the requirements of the creditor banks to retain the existing payment schedules, under the relevant loan agreements,” it added.
“The company continues to explore and intends to pursue all available remedies and courses of action, and will comply with relevant legal, regulatory and contractual requirements, to be able to sustain its current and future business operations, which do not necessarily involve broadcast only.”
ABS-CBN announced recently that it had reached a standstill agreement with its existing lenders.
ABS-CBN Corp. shares closed 0.34% lower at P11.60 apiece on Tuesday. — Arjay L. Balinbin
Pangilinan steps down as president, CEO of PLDT
BUSINESSMAN Manuel V. Pangilinan stepped down as president and chief executive officer (CEO) of PLDT, Inc. on Tuesday.
“At the end of this meeting, I will discharge my duty as president and CEO of PLDT. I’ve asked Al to succeed me in this position,” Mr. Pangilinan said at the company’s virtual annual stockholders’ meeting, referring to PLDT Chief Revenue Officer Alfredo S. Panlilio.
Mr. Pangilinan remains as chairman of the company. Mr. Panlilio is also president and CEO of PLDT unit Smart Communications, Inc.
“I will continue to be your chairman; and as such, I will always follow the affairs and fortunes of our company with profound interest,” Mr. Pangilinan said.
“I look forward to a great future for PLDT where our accomplishments will match our service and our passion with our purpose,” he added.
Responding to Mr. Pangilinan, Mr. Panlilio said: “I greatly look forward to supporting you and working with you in this new capacity.”
“As CEO, I will work diligently to materialize our responsibility to realize our vision for PLDT as a true customer-centric… company that empowers all Filipinos in building a stronger nation by providing world-class connectivity as a human right, asserting the Philippines as a key player in the global arena, and actively embarking on sustainable development to secure everyone’s future,” Mr. Panlilio added.
Mr. Pangilinan said choosing Mr. Panlilio to be his successor was “made less difficult by the knowledge that Al, with his long experience with PLDT and his competent qualities, would be able to take my place forthwith, without interruption or detriment to the progress of PLDT.”
“As the new CEO, I am far from perfect, and I will need unsparing support, cooperation and trust from everyone here. But I pledge to serve you well,” Mr. Panlilio said.
Mr. Pangilinan said he first became PLDT president “23 years ago.”
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin
JG Summit, FDC forge airport ownership deal
LISTED companies JG Summit Holdings, Inc. and Filinvest Development Corp. (FDC) have entered a shareholders’ agreement, which laid out their ownership interest in Luzon International Premiere Airport Development Corp. (LIPAD).
In separate disclosures, the companies said the agreement signed on Monday allots a 42.5% stake to FDC, and 33% to JG Summit in LIPAD.
LIPAD is a special purpose vehicle incorporated by the North Luzon Airport Consortium, which includes FDC, JG Summit, Philippine Airport Ground Support Solutions, Inc. (PAGSS), and Changi Airports Philippines (I) Pte. Ltd. (CAP).
Meanwhile, PAGSS is given a 15% stake and CAP, a wholly owned subsidiary of Changi Airports International, takes 9.5% of LIPAD.
LIPAD is responsible for the management, operations, and maintenance of Clark International Airport. It was awarded a 25-year operations and management contract for the airport’s terminals in January 2019.
Stocks of JG Summit at the local bourse gained 0.83% or 50 centavos on Monday to close at P61 each, while FDC shares went up by 2% or 16 centavos to P8.15 apiece. — Keren Concepcion G. Valmonte
NCCA publishes registry of national heritage sites
THE NATIONAL Commission for Culture and the Arts (NCCA) and City of Manila published last month The Philippine Registry of Cultural Property (PRECUP), a repository of all information pertaining to cultural properties in the Philippines.
The registry was established through 2009 or Republic Act 10066, also known as the National Heritage Act of 2009. Article V Section 14 of the Act states, “All cultural properties of the country deemed important to cultural heritage shall be registered in the Philippine Registry of Cultural Property, (PRECUP)” and that “The Commission, through the appropriate cultural agencies and local government units, shall establish and maintain this Registry.” (https://www.officialgazette.gov.ph/2010/03/26/republic-act-no-10066/).
According to the PRECUP brochure, establishing a registry “plays a crucial role in identifying and providing information on all available cultural resources in the country which can be used by the public, land use planners, property owners, developers, the tourism industry, and educators.”
In additional, the registry is expected to increase awareness of cultural heritage, especially in local communities, and facilitate the protection, preservation, and conservation of cultural property.
Considered cultural properties under the PRECUP are those that were declared cultural property by the NCCA or National Cultural Agencies (NCAs); that are presumed important cultural property which are currently not declared by the NCCA or NCAs; local cultural property declared by the respective LGUs through executive order, ordinance, or resolution; and registered cultural property which carry significance to local culture and history.
A post on NCCA’s official Facebook page on May 27 stated that the City of Manila is the first local government unit to use the electronic PRECUP Registration Forms for data gathering.
Based on the data gathered by the City of Manila, the district of Sta. Ana has the most heritage sites with 88, followed by the districts of San Nicolas and Malate with 78 and 55, respectively.
Manila’s list includes parks, monument, buildings, interiors, and even a vista. Among these are the walls of Intramuros, office buildings in the Binondo and Escolta areas including El Hogar and First United Bldg. (formerly Perez-Samanillo Bldg.), Arroceros Park, Paco Park, churches including Quiapo Church and the Manila Cathedral, the Aristocrat restaurant along Roxas Blvd., the interior of the Playboy Club in the Silahis hotel, and Manila Bay and the Waterfront from Del Pan Bridge to the Cultural Center of the Philippines,
The PRECUP is to be updated periodically.
For more information on the registry, visit https://ncca.gov.ph/philippine-registry-cultural…/ and https://tinyurl.com/PRECUPLocal. — MAPS
Cebu Landmasters tops off residential tower 38 Park Avenue
CEBU Landmasters, Inc. has topped off 38 Park Avenue, a P3.5-billion residential development located at the Cebu IT Park, it said in a statement on Tuesday.
“38 Park Avenue has successfully topped off despite lockdowns due to the pandemic as construction continued following strict compliance to health and safety protocols including COVID-19 (coronavirus disease 2019) testing,” Cebu Landmasters said.
The 38-story tower with a sales value of P5.5 billion is a joint venture project of El Camino Developers, Inc., which is composed of Cebu Landmasters, Gothong Southern Properties, Acrissor Development Corp., 12Sika Holdings Corp., and RKP Property Holdings, Inc.
It features 764 units, composed of 459 studio units, 230 one-bedroom units, 56 two-bedroom units, and 11 three-bedroom units, and eight penthouse units. Cebu Landmasters said the tower is already 96% sold.
The company said units of 38 Park Avenue are laid out around “a soaring atrium that infuses light and energy to the entire development.”
Aside from an atrium, the project will also feature a “Sky Club” on its 26th and 28th floors, eight elevators, a three-level basement parking, high-ceiling lobbies in the East wing and the West wing, a fitness gym, lounge areas, a swimming pool, and a multi-function hall.
“38 Park Avenue’s distinct sustainable design, its generous mixed-use master plan and premium location within the Cebu IT Park ensure that it will offer a new residential option not only for Cebuanos, but also for business and leisure travelers from other global markets,” said Jose Franco B. Soberano, chief operating officer of Cebu Landmasters.
The 7th Annual Property Guru Philippines Property Awards recognized 38 Park Avenue as the Best High-End Condominium Development in Cebu for 2019.
It is said to be the first of a three-phased mixed-use development in a 1.2-hectare property developed and managed by Cebu Landmasters along with El Camino Developers.
38 Park Avenue is slated for turnover by the last quarter of this year, while the next phases are said to be under the planning stage.
Cebu Landmasters is anticipating the recovery of Cebu with the rest of Visayas and Mindanao. The company noted the strong demand for residential offerings in Cebu’s business district.
“The Cebu property market remains to be one of the bright spots in the region with sustained demand and highly resilient property values,” Mr. Soberano added.
On Tuesday, shares of Cebu Landmasters at the stock exchange improved by 1.91%, closing at P6.92 each from P6.79. — Keren Concepcion G. Valmonte
No brushes used for Lito Carating’s paintings
“I NEVER use painting brushes! I threw them away decades ago,” said artist Norberto “Lito” Carating. Thus the 14 canvasses in an exhibit that can be seen at Salcedo Private View were created with the use of tools he himself designed, patterned on baking decoration tools.
The paintings included in his solo exhibit — entitled “Vivace” (Italian for “lively or “vivid” ) — were created spontaneously through what the artist calls the wet-on-wet technique.
“I don’t stop until the work is finished,” Mr. Carating told BusinessWorld via Messenger.
Mr. Carating likens his working process to an orchestra conductor. Prior to beginning a piece, he pre-mixes the colors to avoid breaking the spontaneity of his application.
“I apply layers of paints on top of one another and then manipulate the colors to create textures and other accidental designs. I apply strong colors on top of another color or side by side and the effect is like vibrating lively colors and different shapes, as if the forms are moving and floating,” he said.
Prior to a career in visual arts, Mr. Carating pursued professional opera singing, performing locally and in Canada and the United States as a sought-after baritone. After more than a decade as a performer, Mr. Carating — who earned a degree in Fine Arts at the University of the Philippines in 1971 — took up his brush again to create abstracts and expressionist works.
Mr. Carating has continuously experimented with different techniques, contrasting bright saturated colors with the rich metallic tones. Among the accolades heaped on the artists was the Thirteen Artists Award in 1990. He was also chosen to participate in the Venice Biennale in 2015.
“We believe that now is the best time for new collectors to discover and fall in love with Lito’s work,” said Victor Silvino, Salcedo Auctions Managing Director, in a statement. “As one of the seniors, established expressionist artists in the country, Lito never fails to surprise his long-time and new clients with his pieces.”
“Vivace” by Norberto Carating runs until June 19 at Salcedo Auctions Private View, located at NEX Tower, 6786 Ayala Ave., Makati.
The exhibition is co-presented by Salcedo Auctions Exclusive Banking Partner HSBC Premier. For inquiries, about the exhibit, call 0917-825-7449 or send an e-mail info@salcedoauctions.com. To view the exhibition online, visit https://salcedoauctions.com/exhibition/136/vivace. — Michelle Anne P. Soliman
Corporate regulator clears EDC’s P15-B green bonds
THE Securities and Exchange Commission (SEC) has “favorably considered” Lopez-led Energy Development Corp.’s (EDC) registration of up to P15-billion fixed-rate ASEAN green bonds, the regulator said on Tuesday.
In a statement, the SEC said its commission en banc cleared EDC’s registration statement after a meeting yesterday.
The approved registration covers EDC’s ASEAN green bond program for securities that may be issued in one or more tranches within three years, subject to certain requirements.
ASEAN green bonds comply with the ASEAN Green Bonds Standards, which aim to tap into green financing to support sustainable growth and meet interest for green investments.
“For the first tranche, EDC will offer up to P3 billion of three-year bonds due in 2024 and five-year bonds due in 2026, with an oversubscription option of up to P2 billion,” the corporate regulator said.
The firm expects to raise P4.93 billion from the offer if the securities are oversubscribed.
“Proceeds will be used to fund geothermal growth and maintenance capital expenditure projects, including a portion of the capex for its (29-megawatt) Palayan Bayan Binary Project, (3.6-megawatt) Mindanao III Binary Project, and other geothermal capex for natural catastrophe resiliency, power plant equipment upgrades, spare parts replacements and other capex projects,” the SEC said.
The bonds will be offered at face value, and will be listed and traded on the Philippine Dealing & Exchange Corp.
EDC tapped BDO Capital & Investment Corp, and BPI Capital Corp. to be the joint issue managers, joint lead underwriters, and joint bookrunners for the offering, while SB Capital Investment Corp. will serve as co-lead underwriter.
EDC ended the first quarter with a 2.1% increase in its net income to P3.3 billion on the back of higher sales.
Shares of EDC’s listed parent firm First Gen Corp. shed 0.32% or 10 centavos to finish at P30.80 apiece in the local bourse on Tuesday. — Angelica Y. Yang