Just how many airports does the National Capital Region really need?

April 26, 2021 | 12:03 am

By Arjay L. Balinbin, Senior Reporter

The pandemic found the government in the midst of an airport building frenzy, no doubt based on ambitious assumptions for financial returns before COVID-19 shut the world down. But now that travel demand is going to be depressed for the foreseeable future and the airlines the airports were meant to serve as gleaming new home bases hanging on precariously, many of the projects could be in for a hard rethink, because by the time they are all built or upgraded, the travel volumes they were designed around might not be there for years.

The plan, as it stood before the outbreak, was to increase the capacities of both Ninoy Aquino International Airport (NAIA) and Clark International Airport (CIA) and build Sangley Point International Airport (SPIA) in Cavite and New Manila International Airport (NMIA) in Bulacan. That would give Metro Manila four international airports servicing its travel demand, just two shy of the record holder London, which has six.

Now, people are expressing doubts whether such ambitious plans are still viable.

“With a combination of strict health protocols, travel bans and restricted household incomes, passenger volume has dropped,” Infrawatch PH convenor Terry L. Ridon said in an e-mail interview. “The viability of the aviation sector is dependent on a gradual easing of the economy through an immediate and effective vaccination program along with already-proven health and safety protocols.”

San Miguel Corp.’s (SMC) Bulacan airport caught a break at least — it was still not operational when the pandemic inflicted massive damage on the travel industry, and can make adjustments based on how its managers project the future of air travel.

“With a construction horizon of five to 10 years, the coronavirus pandemic might be over by then,” Mr. Ridon noted.

“We certainly hope that passenger volume will have reverted to pre-pandemic levels. At present, similar to the broader construction sector, we may expect some construction delays due to limited supplies or personnel due to existing restrictions,” he said.

Eldric Paul A. Peredo, the Civil Aeronautics Board’s Air Operating Rights Division chief, reported at a recent House hearing that international and domestic passengers logged in by air carriers from the first to third quarters of 2020 were only 25% of 2019 levels.

Mr. Ridon believes the government’s multi-airport approach remains viable, with the strategy to decongest NAIA showing results, particularly with the expansion of Clark.

Chairman and Chief Executive Officer Edgar B. Saavedra of Megawide Construction Corp., which had previously negotiated with the government for a contract to rehabilitate NAIA, said the Greater Manila area will be needing more airports anyway because annual passenger volume is expected to increase by more than 65 million in the next five to 10 years.

“Any new airport will always augment or add capacity to the country. Since NAIA is in the southern part of Metro Manila, it will cater not only to Metro Manila but also to Calabarzon. The Bulacan airport will also cater to the northern part of Metro Manila, so Clark will cater up to northern Luzon. All of these airports are complementary to each other,” he said.

The Manila International Airport Authority (MIAA) board recently rejected the appeal filed by Megawide and its foreign partner GMR Infrastructure Ltd. seeking to overturn the revocation of its original proponent status for the NAIA rehabilitation project. The project had proposed to expand the airport’s capacity to up to 65 million travelers annually.

MIAA can rehabilitate NAIA on its own, according to the Department of Transportation (DoTr).

Manila’s main airport has been operating beyond its 30.5 million passenger capacity for years, handling 45.3 million passengers in 2018, 42 million in 2017 and 39.5 million in 2016.

CANNIBALIZATION
Avelino D.L. Zapanta, an aviation industry expert, said via e-mail that Clark might pose an obstacle to Bulacan NMIA’s bid to become the primary airport.

“At the very least, Clark has captive markets in North and West Luzon,” he said. “Passengers from Central Luzon, south of Clark, and north of Bulacan will choose either of the two depending on which would be more convenient for them.”

NMIA is a bit of a black box, offering no insight for now on its impact on the travel industry landscape, according to Mr. Ridon. “We cannot yet predict its impact on the airport sector until it becomes fully operational in five to 10 years.”

“The Finance department has put its foot down on the matter, stating that market forces should determine whether multiple airports in Mega Manila are viable,” he said.

Mr. Ridon believes cannibalization will only be relevant when NMIA becomes operational, by which time Clark will have been generating revenue for up to 10 years.

“If Clark does a great job in operating its airport in the next 10 years in addition to exponential economic growth in the surrounding regions, it will be harder for NMIA to compete for passengers, airlines and third-party vendors,” he said.

“Government should concentrate on both areas, which is why the NAIA rehabilitation project should not have been shamelessly rejected by MIAA and DoTr,” he said.

NAIA, as the main gateway, is relevant not only to passengers from Metro Manila and southern Luzon, but also to all travelers from across the country making airline connections through its terminals, Mr. Ridon said.

Mr. Zapanta believes NAIA-Sangley is more complementary since Sangley can serve Southern Luzon. “The reality though is Bulacan has a head start on Sangley,” he said.

The Cavite government is again seeking bidders for the Sangley airport project after it canceled an earlier deal with MacroAsia Corp. and China Communications Construction Company.

Meanwhile, SMC’s airport in Bulacan is expected to begin construction within the quarter, after it was granted an unprecedented legislative franchise that gives the project numerous tax perks.

Mr. Zapanta noted that Clark is at the crossroads of the South Luzon Expressway-North Luzon Expressway Connector, the Subic–Clark–Tarlac Expressway, the Tarlac–Pangasinan–La Union Expressway, and the MacArthur/Pan Philippine Highway, making it accessible from north, south, east, and west, and is thus more geographically strategic than Bulacan.

“North, West and Central Luzon air passengers will not bypass Clark to go at least 40 kilometers farther south to Bulacan,” he added.

Mr. Ridon believes that the Clark airport is going to be a viable alternative to NAIA even for travelers coming from Metro Manila and southern areas once the North-South Commuter Railway (NSCR) project is completed.

“In fact, the construction of the Clark Airport station is part of the NSCR project,” he added.

“The key for the continuing growth of Clark is not in its ability to get passengers from Metro Manila and southern Luzon, but for the general economy of central and northern Luzon to continue improving. With New Clark City and the new infrastructure further cutting Baguio and northern Luzon travel times, we are optimistic that economic growth will come to these areas in time,” he said.

Economic growth in the capital region has been mainly focused to the south of Metro Manila, away from Bulacan and closer to NAIA, he noted. “We are seeing massive economic development along southern Metro Manila’s bay area, currently anchored by Entertainment City and also driving passenger volumes through NAIA.”

Cavite and Laguna have more economic zones and metropolitan areas than the provinces north of Manila. “These are factors which will make NMIA a hard-sell proposition for passenger volume in contrast to NAIA,” Mr. Ridon said.

‘SELL NAIA’
SMC has a proposal to operate and maintain NAIA while it is building the Bulacan airport.

“Our proposal is brought on only by the need to have it running effectively and safely for the Filipino people, until our Bulacan airport project is up. And until our airport is ready, that task needs to be done,” SMC President and Chief Operating Officer Ramon S. Ang said in a statement.

According to Mr. Ridon, this move fits into SMC’s airport infrastructure agenda to retire and sell NAIA as soon as NMIA is built.

Mr. Ang said the government could better benefit from selling or redeveloping the 646-hectare NAIA complex once SMC completes its Bulacan airport project.

The NAIA property is about 2.5 times the size of Bonifacio Global City, Mr. Ang said, noting that it could “potentially earn the government as much as P2 trillion or more, which it can use for various purposes.”

“This posturing exhibits a massive conflict of interest as this seeks to limit growth in another airport to favor their own. Until the current or next government has decided on the fate of NAIA, SMC should focus its energies in constructing their airport in Bulacan,” Mr. Ridon said.

Mr. Zapanta said: “Of course, he (Mr. Ang) would go for that. That’s a swell real estate prospect, and he has a good eye for real estate.”

“My thought, though, is that NAIA is ideal for the domestic market whose true O&D (origin and destination) is Metro Manila, e.g. business, education, VFRs or the visiting friends and relatives market, and tourism as well. When the volume goes up in the immediate future, the need for NAIA to concentrate on domestic traffic will become more pronounced,” he added.

DoE clears Vires Energy’s LNG project in Batangas

April 26, 2021 | 12:03 am

VIRES Energy Corp. has secured clearance from the Energy department to proceed with its planned gas-fired power plant, which is integrated with a liquefied natural gas (LNG) storage and regasification facility, in Batangas province.

In a press release over the weekend, the Department of Energy (DoE) said it had approved on April 22 the “notice to proceed” for the application of Vires Energy to develop the integrated natural gas-fired power plant and LNG terminal project.

DoE Secretary Alfonso G. Cusi said the project “will boost the attainment of our vision to develop the Philippines as a LNG hub in the Southeast Asian region.”

A notice to proceed (NTP) is the first step for a company that seeks to develop an LNG terminal or other downstream natural gas projects in the Philippines, the DoE said.

Firms holding an NTP are required to submit relevant permits from various government agencies, endorsements from the local government units, and proof of financial closing to the DoE within six months.

Mr. Cusi said that he hopes Vires Energy will be able to complete all the requirements before the firm’s NTP expires.

Vires Energy’s planned floating storage and regasification unit (FSRU) will have a storage capacity of around 162,400 cubic meters, which will be located 1.6 kilometers (km) from the Batangas Bay coastline. The FSRU is a converted LNG tanker with a regasification capacity of up to 3 million tons per annum.

An FSRU contains an onboard regasification plant, which can turn LNG back to gas. Natural gas is typically liquefied for ease of transport.

In its statement, the DoE said that Vires Energy’s LNG terminal and regasification project will have a turret mooring system for its FSRU, a 1.6 km subsea gas pipeline, and a 500-megawatt floating power plant, which will serve as an anchor market.

It said the project will also use a land area classified as a “heavy industrial zone” for backup fuel supply of diesel fuel during gas outage events.

Vires Energy has targeted the commercial run of its integrated LNG project by January 2023.

The approval of its NTP application comes around three months after a DoE official identified Vires Energy as one of the potential investors that wished to build a floating facility for imported gas.

In a Senate hearing in January, DoE Assistant Secretary Leonido J. Pulido, III said that the department held a pre-application conference with Vires Energy and Atlantic Gulf & Pacific Co., among others, for their plan to bring in an FSRU.

Vires Energy is owned by Cagayan de Oro-based listed company A Brown Co., Inc. — Angelica Y. Yang

YouTube agriculture channel hoping to attract young farmers

April 26, 2021 | 12:03 am

A YOUTUBE channel is seeking to fill in the knowledge gap for people seeking farming know-how, borne out of the founder’s own struggle to find advice on agriculture.

Reden Mark F. Costales, who started the YouTube channel “The Agrillenial,” said he wants to provide potential young farmers access to videos that will help them set up and improve their own farming operations.

In a phone interview with BusinessWorld, Mr. Costales said the channel released its first video on July 31, 2019.

“I often go to the internet for research and I rarely find the content that I am looking for. And if ever I do find it, it always leads me to papers written by scientists, which are too much for me to understand. If I, a university graduate, am having difficulty taking in research, what more of farmers who barely finished high school?” Mr. Costales said.

Mr. Costales said the usual sources of know-how are formal seminars that impose costs on farmers.

He said since launching the channel, he has received much positive feedback from younger people, some of whom are determined to start their own farms.

“There is a connotation that farming is just for the older generation. I want to change this perspective. I want to show that farming is also for millennials and for kids,” Mr. Costales said.

“Farming really doesn’t have an age bracket If they see a millennial teaching and doing agriculture, it will somehow spark interest because “if he can do it, why can’t I?” Mr. Costales said.

Mr. Costales manages his family’s Costales Nature Farms in Majayjay, Laguna, which produces organic high-value vegetables and organic livestock.

“After I graduated from college, I immediately helped in managing the farm’s daily operations. In 2012, we started offering training and seminars here in the farm to those who want to start their own organic farms as well,” Mr. Costales said.

The YouTube channel brings in additional income of around P50,000 per month from advertisements and affiliate marketing.

“Affiliate marketing is a simple link pasted in our video descriptions and every time people buy from that link, we get a commission. Of course, the video would feature the product itself,” Mr. Costales said.

Moving forward, Mr. Costales said he wants to create more engaging content for his viewers.

The pandemic has not hindered content creation and has even helped increase viewership beginning from early in the pandemic last year.

“I don’t need to go out or to other farms to create content. It was actually beneficial for me since a lot of people are locked down. They have nothing else to do, so they just watch on YouTube,” Mr. Costales said.

To date, “The Agrillenial” channel has around 115,000 subscribers and 125 videos. — Revin Mikhael D. Ochave

This Levante is electrifying

April 26, 2021 | 12:03 am

Velo_image7 — *The Maserati Levante Hybrid variant surprisingly weighs less than its gasoline- and diesel-engined counterparts. — PHOTO FROM MASERATI*

1 of 3

Maserati releases a hybrid version of its SUV

THE PANDEMIC certainly did not slow down the 2021 Shanghai Auto Show — the world’s largest of its kind — now on its 19^th year. Highlighted in the fair this year were several new electric vehicles, among which was the impressive Maserati Levante Hybrid — the first electric SUV ever launched in the trident brand’s history. Maserati also took this opportunity to premiere its F Tributo Special Edition, as well as to showcase its MC20 supercar.

“(The) Shanghai Auto Show is an extremely important event for our brand. The show marks a rebirth in difficult times,” explained Maserati CEO Davide Grasso. He added, “We believe strongly in this new beginning, and today we are showcasing several world premieres that project us straight into the future.”

Maserati’s journey towards electrification started with the initial launch of the Ghibli Hybrid in the latter part of 2020. And this year, its revelation of the Levante Hybrid shows that this hybrid car surprisingly weighs less than its gasoline and diesel counterparts (the latter two both running on six-cylinder engines) and even has a more balanced weight distribution (because the weight of the extra battery in the rear spreads out the weight beautifully). Therefore, the Levante Hybrid is in fact, even more agile and fun to drive than its ICE counterparts.

The Levante Hybrid, which now completes Maserati’s full Levante range, boasts of a top speed of over 240kph and can accelerate from zero to 100kph in only six seconds. This is thanks to its 330 horses and 450Nm of torque from just a low 2,250rpm. The model is only available in all-wheel drive and, despite its being electric, is engineered in such a way that it still produces that distinctive growl of a typical Maserati internal combustion engine.

Furthermore, the Levante Hybrid is visually tickled with hints of blue here and there — as it is the official color chosen to identify its hybrid vehicles. Its iconic side air ducts, the vehicle’s C-pillar logo (and optionally, its brake calipers) come in Hybrid Blue. Inside the vehicle you will find blue seams embroidered on the upholstery, to further that distinctive hybrid identity. The automobile also carries Maserati’s Connect program, which is software that also maintains the Levante Hybrid as a futuristically “connected car.”

Meanwhile, Maserati’s Shanghai Auto Show display also included an area featuring its special Maserati Fuoriserie — a special customization program that allows clients to personalize their vehicles with thousands of possible combinations. And to serve as a basic guide, three design collections have been created for customers to more easily build upon: the Corse, Unica and Futura collections. These represent the trident brand’s values of sportiness, elegance, and innovation.

And to further celebrate its participation in the 2021 Shanghai Auto Show, Maserati also extended even more Fuoriserie options for its Ghibli, Quattroporte, and Levante range — including all-new external paints, liveries, wheel and brake caliper colors, as well as special cabin combinations that feature different layouts and colors of stitching.

The MC20 has now also been officially included in Maserati’s Fuoriserie Program, allowing it greater design customization based on the Corse, Unica and Futura collections.

Term limit for lenders’ independent directors non-extendable, BSP says

April 26, 2021 | 12:03 am

THE BANGKO SENTRAL ng Pilipinas (BSP) has reminded banks to comply with the maximum nine-year cumulative term limit for independent directors of BSP-supervised financial institutions, which follows previous issuances on corporate governance and reputational risk management.

In Memorandum No. M-2021-025, the central bank highlighted the provisions of both the Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions which gives independent directors a maximum term of a cumulative period of nine years.

“After which, the independent director shall be perpetually barred from serving as independent director in the same BSP-supervised financial institution but may continue to serve as its regular director,” the circular said.

“All BSP-supervised financial institutions are hereby advised that pursuant to Monetary Board Resolution No. 371 dated March 31, 2021, the BSP shall not approve requests for exemption from the said term limit for independent directors,” it said.

BSP Deputy Governor Chuchi G. Fonacier said they have received “quite a few requests” for term extensions.

“The BSP would like to emphasize that the term of an independent director should only be for a maximum of nine years (cumulative). After having served for that period of time as an independent director, that person may no longer be considered as really independent,” Ms. Fonacier said in a Viber message on Sunday.

An independent director is a person, “who, apart from his fees and shareholdings, is independent of management and free from any business or other relationship which could, or could reasonably be perceived to, materially interfere with his exercise of independent judgment in carrying out his responsibilities as a director,” based on Memorandum Circular No. 16 Series of 2002 of the Securities and Exchange Commission.

Aside from being allowed to become a regular director after their nine-year term in a bank, an independent director can also serve the same function for other lenders, Ms. Fonacier said.

“They can serve as independent director for other banks after serving the maximum term of nine years in a certain bank provided they qualify as an ‘independent director’ for that bank,” she noted.

The central bank earlier released Circular No. 1112 which tightened policies and control measures for hiring and performance management of bankers.

Meanwhile, Circular 1114 issued last week requires banks to report “reputational risks” that could be caused by stakeholders, customers and bank employees, which could spill over and adversely impact earnings, capital, and liquidity.

“It is the thrust of the Bangko Sentral to promote good corporate governance and effective risk management systems in the financial industry,” the BSP said.

“It is in this light that the Bangko Sentral issued regulations that institutionalize control measures to highlight accountabilities, strengthen checks and balances, and ultimately protect the interest of customers and depositors,” it added. — Luz Wendy T. Noble

US gymnast Simone Biles joins Gap’s Athleta, ends Nike deal

April 26, 2021 | 12:02 am

US gymnast Simone Biles — FACEBOOK.COM/ATHLETA

FOUR-TIME Olympic gymnastics champion Simone Biles has signed up with Gap, Inc.’s Athleta brand for a new apparel partnership, ending an almost six-year deal with Nike, Inc.

Ms. Biles, the most decorated gymnast in world championship history at age 24, said in an Instagram post on Friday she wanted to partner with a brand that shares her “passion to help girls rise and own their limitless potential.”

“They are committed to diversity and inclusion, which was really important for me to see in a partner,” she said.

The move is a blow to Nike, which tried for years with mixed success to expand in the lucrative market for women’s sports apparel, launching yoga, plus-size and maternity lines.

“What Nike have undersold — or at least under-monetized — in the past is womenswear,” said Michael Faherty, a portfolio manager at Adidas and Nike investor Seilern Investment Management. “You only have to look across at Lululemon to see the excellent growth they’ve been able to generate in the womenswear space.”

As it competes with Lululemon and Under Armour, Nike has spent millions cultivating relationships with Ms. Biles and other major athletes, including Serena Williams and Naomi Osaka. These deals have helped Nike’s womenswear sales growth outstrip that of its other brands for the past eight quarters.

“We will continue to champion and celebrate all athletes,” Nike said in a statement, confirming its contract with Ms. Biles has ended and wishing her “the very best.”

Athleta, founded in 1998 as a brand for female athletes, said it plans to co-create an activewear line with Ms. Biles and design other signature products.

The brand has also pledged to support Ms. Biles’ post-Tokyo Olympics gymnastics tour that she is planning to mount herself, rather than the usual tour backed by governing body USA Gymnastics, according to the Wall Street Journal.

She is not the first Nike-sponsored sports person to join Athleta. In 2019, six-time Olympic champion Allyson Felix signed up with the Gap-owned brand after penning an opinion piece in the New York Times in which she said she faced potential pay cuts from sponsors including Nike for having children.

Nike later committed to not financially penalize pregnant athletes. The company has also made a name for itself for taking a stand on social issues, fighting against racial injustice and showing solidarity with some protesting athletes. — Reuters

The race to get the power industry ready for imported LNG

April 26, 2021 | 12:02 am

By Angelica Y. Yang, Reporter

THE TRANSITION to imported natural gas was dictated by the impending depletion of the Philippines’ only indigenous provider of the resource, the Malampaya project. Malampaya provides fuel to natural gas-fired power plants in Batangas, which account for around 30% of the Luzon grid’s power needs. But with the field’s commercially viable reserves expected to run out by 2024, the power industry is racing to build out the infrastructure needed to bring in the gas and keep the power plants running.

As of February, at least six firms have expressed interest in setting up liquefied natural gas (LNG) terminals, either onshore facilities or floating storage regasification units (FSRU), which are needed to transform LNG into a form that power plants can use.

One of the issues that has turned up is how the LNG import sub-industry is to be regulated, including overarching concerns about the Philippine market’s general openness — or lack thereof — to foreign investment.

Batangas Clean Energy, Inc. (BCE) President Yari A. Miralao noted that anyone who wants to build an LNG terminal has to deal with the “lack of a regulatory framework to govern and incentivize this new industry; legal and regulatory constraints for foreign investors; the scarcity of good sites to build a facility, and poor infrastructure to deliver and distribute the natural gas to end-users.”

“Despite these headwinds, BCE recognizes the Philippine government’s efforts to address these issues and believes that conditions will improve going forward,” Mr. Miralao said in an e-mail.

BCE, a joint venture between Lucio C. Tan, Sr. and US-based Gen X Energy, is seeking to develop a P82.5-billion land-based project in Batangas, where natural gas plants in Luzon are clustered because the province was the landing point for gas extracted from the Malampaya field in northern Palawan.

According to its environmental impact statement, the project comprises an integrated LNG import terminal and 1,200-megawatt combined-cycle gas turbine power project.

The BCE project currently holds a notice to proceed (NTP) issued by the Department of Energy (DoE), a key milestone before construction.

PROPOSED MEASURE
Much of the LNG infrastructure industry’s hopes for regulatory clarity have been pinned on a piece of legislation, the proposed Midstream Natural Gas Industry Development Act.

DoE Assistant Secretary Leonido J. Pulido III said the urgency of having proper regulation in place stems from the view of prospective investors that the Philippines is a small market for LNG, which could encourage the development of monopolies.

His wish list for the midstream natural gas industry bill includes “provisions for third-party access in the use of the LNG infrastructure (to) increase competition in the market.”

The midstream natural gas industry bill covers activities like the aggregation, supply, import, receipt, unloading, loading, processing, storage, regasification, transmission and transportation of natural gas in original or liquefied form.

“The measure institutionalizes a regulatory and legal framework for the industry, which is important for investors because it gives them a peace of mind that there are sufficient protections for them to recoup their initial investment… We’re also hoping that (the bill) would incentivize industries to shift to the use of natural gas,” Mr. Pulido said by phone.

Ideally, he said the bill should strike a balance between enforcing industry best practices and enabling free-market solutions.

“Too much regulatory oversight may also lead to issues with investors coming in. At the same time, too little regulatory oversight could lead to anti-competitive behavior so we’re hoping to find a balance between those principles,” Mr. Pulido said.

Senator Sherwin T. Gatchalian, who chairs the Senate Committee on Energy, said that the measure is configured to exert a light regulatory touch, while letting the private sector take the lead in developing the LNG industry.

“We will only regulate the competition aspect of those plants, because we want to make sure that there is robust competition, and allow third-party access,” Mr. Gatchalian said in a video call.

The proposed regulations, he said, will cover import terminals, regasification facilities and pipelines.

“The best case is to get the terminals and regasification plants up and running prior to the depletion (of Malampaya). We need to get this law up and running soon because it gives the players the framework on how to proceed with their businesses,” Mr. Gatchalian added.

The consequences of not having enough LNG importing facilities to make up for the lost Malampaya gas, Mr. Gatchalian said, include an “electricity price crisis.”

“What will happen is that these plants will (use) gas condensate or oil, but it will have a very severe impact on pricing so the prices will go up and it will be passed on to us. It’s imperative that we get imported LNG before the depletion or else we will be faced with higher electricity costs,” he said.

University of the Philippines Diliman energy engineering professor Nicanor S. Villasenor III said the development of LNG import terminals addresses the immediate need for power, but much has to be done to ensure energy security.

“With Malampaya, more or less, we have some good level of energy security because we’re sourcing gas from our territory. But when you’re importing the fuel, it becomes a problem… As far as energy security is concerned, this is imported fuel. If anything happens globally along the supply chain, we can be (vulnerable) in terms of prices,” Mr. Villasenor said.

CLEANER THAN COAL?
Mr. Pulido said that the DoE advocates for natural gas since it is considered a “clean alternative to coal and a bridging fuel to (the future expanded use) of renewable energy (RE).”

He said that RE sources are intermittent by nature, but natural gas is more capable of addressing “baseload” demand — the portion of the generation mix that needs to be reliable and always on, as opposed to “peaking” — energy sources that are tapped when baseload capacity is exceeded.

“The beautiful thing about the value proposition of natural gas is its flexibility. You can easily adjust the amount of power that you need to balance the grid and that’s why it’s classified as mid-merit power. It can be baseload, and it can be used for peaking purposes,” he said.

Center for Energy, Ecology, and Development Executive Director Gerry C. Arances said however that natural gas is no alternative to coal, which the government recently declared a moratorium on with regard to new power plant construction.

“The turning of the tide against the coal industry seems to be giving the DoE an excuse to flaunt gas as the ready alternative and brand it as ‘clean energy.’ In fact, (we) refer to it as ‘fossil gas,’ if only to remind proponents that gas is but another obstacle to the reduction of greenhouse gas emissions required by the climate crisis,” Mr. Arances said in an e-mail.

He said that although natural gas emits up to 60% less carbon dioxide compared with a new coal plant, using the former “did not make it any better” than coal.

“Like coal, every stage of electricity production from fossil gas — from its extraction, transportation, to combustion — gives off pollutants that contaminate host environments and trigger health problems among communities exposed to it. It, too, is finite and thus vulnerable to fluctuations in supply and demand, unlike RE,” Mr. Arances said.

The latest draft of the National Renewable Energy Program, which is scheduled for a public hearing, currently gives natural gas a key role in accelerating the development of renewables.

National Renewable Energy Board Chairperson Monalisa C. Dimalanta has projected “an increase in RE share… supported by higher flexibility in the system coming from natural gas plants all the way to 2030, with a slight decline by 2040.”

SC affirms MWSS exemption from real property taxes

April 26, 2021 | 12:02 am

THE Supreme Court (SC) ruled that the Metropolitan Waterworks and Sewerage System (MWSS) is exempt from real property taxes by virtue of its being a “government instrumentality vested with corporate powers” as provided by law.

The cited Executive Order 596 of then-president Maria Gloria M. Macapagal-Arroyo and Republic Act No. 10149 or the Government-Owned and Controlled Corporation Governance Act of 2011.

In the High Court’s decision dated on Jan. 13 and made public on March 19, the SC reversed the decisions of the Court of Appeals dated June 3 and Dec. 11, 2014 that MWSS was liable to pay the Pasay City government for real property taxes worth P166,629.36 for taxable year 2008.

“The real properties of the [MWSS] located in Pasay City are declared exempt from real property tax,” the court said in its 13-page decision.

The SC further voided all other tax assessments issued to MWSS. It added that its decision does not stop Pasay City from collecting the said real property taxes from the private concessionaires of MWSS.

The MWSS has a concession agreement with Maynilad Water Services, Inc. for Metro Manila’s west zone that includes Pasay City.

The SC further said that the ruling does not automatically grant MWSS refunds of its earlier real property tax payments as the agency has to file a written claim for refund with the city treasurer within two years of the SC decision according to Section 253 of the Local Government Code of 1991 to do as such. — Bianca Angelica D. Añago

TESDA commits to organizing more organic farms, community gardens

April 26, 2021 | 12:02 am

THE Technical Education and Skills Development Authority (TESDA) said it hopes to organize more mini-organic farms and community gardens to help address the country’s food security issues.

TESDA Director General Isidro S. Lapeña said in a statement over the weekend that the program seeks to ease the threat of food shortages during the coronavirus disease 2019 (COVID-19) pandemic.

“Agriculture is not limited to the rural and far-flung areas. We are pursuing agriculture to achieve food sufficiency in all areas of the country, including cities,” Mr. Lapeña said.

“Growing one’s own food is among the best approaches to help the country achieve food security,” he added.

Mr. Lapeña has signed a memorandum ordering all TESDA training centers to build their own mini-organic farms to encourage the community to grow its own food. TESDA estimates that there are currently 161 mini-organic farms nationwide.

Meanwhile, TESDA is also inviting the public to undergo training in agriculture.

Recently, TESDA announced that it is set to offer a training program in drone operation for agricultural personnel. Graduates of the program can be employed as ground support staff, junior drone pilots, and senior drone pilots.

Uses of drones in agriculture include evaluating soil conditions, determining suitable areas for planting, fighting infection and pests, spraying, crop surveillance, and livestock monitoring. — Revin Mikhael D. Ochave

Sign of T-Cross

April 26, 2021 | 12:02 am

1 of 2

Volkswagen Philippines is dotting the i’s and, well, you know, with its coming crossover

By Aries B. Espinosa

AFTER MONTHS of waiting for the formal public introduction of Volkswagen Philippines’ first global crossover, the announcement of a date finally came during an online discussion with the motoring media last April 21: The subcompact SUV T-Cross would be formally launched this May 26.

This early, however, Volkswagen Philippines encourages the motoring public to already make reservations in order to enjoy the introductory prices and a sizeable discount.

One can sense the eagerness of the folks at Volks to push the T-Cross as aggressively as they could in the local market. One reason is that the T-Cross has had a two-year head start elsewhere on the planet. The crossover debuted in 2018, and sales formally began the next year, as production went full swing in Volkswagen’s three manufacturing hubs in Brazil, Germany, and China. By 2020, the T-Cross made its initial appearance in Asia via India, which helped propel the vehicle to a landmark 300,000 units in sales across 55 countries. The world’s second most populous nation also became the T-Cross’ fourth manufacturing hub.

Another reason is that the T-Cross may yet be Volkswagen Philippines’ long-awaited gust of wind propelling it out of the sales doldrums where it has been stuck for the past couple of years — no thanks to the less-than-inspiring market performances of its China-sourced models and the ongoing pandemic. The T-Cross brings a heaping of good repute to the table, as it comes loaded with awards from international auto and media organizations in the United Kingdom, Ireland, Germany, Brazil, and South Africa.

Volkswagen Philippines says it’s leaving nothing to chance in its debut of the T-Cross, making sure that the vehicle takes off on the right gear in the local market. Its president Felipe Estrella III made this crystal clear during the discussions. “The T-Cross is a vehicle that will be ushering in the revival for the Volkswagen brand in the Philippines. We are excited because it is a subcompact SUV, and as we all know, the Philippines has gone quite SUV-happy. So, we expect to attract the attention of the Filipino automotive consumer,” he said.

To this end, the Ayala-backed distributor has not only brought in the T-Cross variants it perceives as perfect matches to local market preferences, but also sweetens the deal in SRPs and after-sales perks.

Two T-Cross variants will debut on May 26 — the 180 MPI AT S and the 180 MPI AT SE, both powered by a 1.5-liter engine with six-speed Tiptronic AT capable of generating maximum power output of 113ps and 145Nm of torque, which Volkswagen Philippines claims would result to optimum fuel efficiency while providing satisfying power for city or countryside driving.

The SE is endowed with additional or upgraded features, such as leather seats, LED headlights and taillights, 17-inch alloy wheels, panoramic sunroof, six air bags, autonomous emergency braking, and a 9.2-inch infotainment monitor with Apple CarPlay and MirrorLink.

Apart from its trendy exterior design and interior layout that reveal its intended target market of young, upwardly mobile or accomplished urban professionals, the T-Cross’ other come-on (or “come-in”?) is its generous space. Despite being classified as a five-seater subcompact SUV, the T-Cross’ long wheelbase of 2,651mm (the longest in its class) offers 329 liters of rear luggage space, or up to 1,319 liters with the rear seats folded.

That amount of breathing room has also been offered in the SUV’s after-sales services. The day’s deep dive into the T-Cross eventually fathomed the scope of after-sales perks, especially the cost of scheduled periodic maintenance services (PMS). Like the rest of Volkswagen’s stable of vehicles, the T-Cross would need only a once-a-year trip to the dealership for scheduled PMS. This, Volkswagen Philippines’ after-sales people stressed, would be around 40% more affordable compared to its segment competitors for a normal five-year duration of ownership.

When “Velocity” asked Volkswagen Philippines to translate that to actual cash savings, its after-sales estimated that a once-a-year PMS would “figure in the P12,000-to-P15,000 range.” This would be on top of the warranty coverage of three years, or 100,000 km (whichever comes first); spare parts warranty of two years, and; service quality consistent with Volkswagen standards across the world.

The online media discussion culminated with the price reveal of the T-Cross variants. The MPI S would be offered at P1.098 million, while the MPI SE would be pegged at P1.198 million. Like what was said at the start, these introductory prices, plus a P30,000 discount on both variants, would be good only for those who reserve their T-Cross units before the market introduction on May 26.

After that, buyers can only pray that this world-renowned and multi-awarded global SUV won’t go out of sight of the crosshairs of their budgets.

SM Prime investors take profit as gloomy prospects linger

April 26, 2021 | 12:01 am

THE ongoing economic uncertainty brought about by the coronavirus pandemic prompted investors of SM Prime Holdings, Inc. to take profit, making it the 10^th most actively traded issue last week.

A total of 24.68 million SM Prime shares worth P875.36 million were traded from April 19 to 23, data from the Philippine Stock Exchange (PSE) showed.

The share price of the Sy-led property firm closed at P35 apiece, down 2.4% from April 16’s closing price of P35.85. Year to date, the stock has gone down by 10.8%.

In a Viber message, Mercantile Securities Corp. Analyst Jeff Radley C. See said SM Prime’s performance last week was reflective of the market’s “wait and see” attitude, adding that property firms are “heavily battered by the pandemic.”

SM Prime released several disclosures to the PSE on April 21, which includes the declaration of cash dividends, the release of capital expenditures (capex) for this year, the election of independent directors, and the amended full-year financial report. SM Prime’s annual report was first released on April 16.

The day of the disclosures’ releases sent the stock’s closing price down by 4% to P34.8 per share from P36.25 per share the previous day. Its closing price rebounded by 1.87% to P35.45 before falling back by 1.27% to P35 on Friday to end the trading week.

SM Prime named former central bank governor Amando M. Tetangco, Jr., Darlene Marie B. Berberabe, and J. Carlitos G. Cruz as newly elected independent directors, succeeding Jose L. Cuisia, Jr., Gregorio U. Kilayko, and Joselito H. Sibayan.

It also declared cash dividends of P0.082 per share with the ex-date set on April 30. This means only shareholders before this date will be eligible for the dividend payout.

“The cash dividends… were less than half of what they declared last year, which was understandable given the circumstances,” AAA Southeast Equities, Inc. Head of Research Christopher John J. Mangun said in an e-mail.

The company is also setting aside P80 billion for capital expenditures this year, to which Mercantile Securities’ Mr. See said signals SM Prime to be bullish despite challenges this year.

“This is the same capex without the pandemic. They are foreseeing that eventually the number of cases will subside, people would want to go out, and [the] economy will soon recover,” Mr. See said.

On the other hand, AAA Southeast Equities’ Mr. Mangun noted most investors have expected capex for this year to be “conservative as the economy struggles to recover from the effects of the pandemic.”

“Nobody wants to be aggressive right now because of the uncertainty,” he said.

SM Prime reported an attributable net income of P18 billion in 2020, 53.2% lower than the P38.09 billion posted in 2019. Its consolidated revenues fell by 30.8% to P81.9 billion from P118.3 billion previously.

Mr. See expects earnings to “continue to fall” given the current situation, but hopes to see a rebound “towards the second half” of this year as restrictions on the economy may be loosened by that time.

For Mr. Mangun: “We expect net income to come in 20-30% lower from the previous quarter as mall rentals and real estate sales remain depressed.”

“It is going to take a while for a big company like SMPH to recover,” he said, referring to SM Prime’s stock symbol.

“SMPH has already made the pivot to online both in retail sales and property although competition will be fierce as most businesses have done the same,” he added.

Mr. Mangun placed the stock’s support and resistance levels at P33.55 and P37.40 respectively.

Meanwhile, Mr. See pegged support at P34 and resistance at P37. — Abigail Marie P. Yraola

Style (04/26/21)

April 26, 2021 | 12:01 am

1 of 10

FAME+ fashion brands join Indonesian online expo

PHILIPPINE fashion brands housed on FAME+ are part of the inaFashion smesco Online Expo which is ongoing until April 30. Agsam Fashion Fern, Aranaz, Beatriz, Filip + Inna, Joanique, Ken Samudio, Maco Custodio, Mele + Marie, Vesti, and Zacarias 1925 fly both the Philippine and FAME+ banners in the Indonesia-based trade fair, offering their nature-inspired brand of chic to the textile, textile-product, and footwear industries. Carrying the theme “Fashioned from Nature,” the 10 brands offer export-ready and contemporary pieces ranging from apparel to accessories which take inspiration from the varied flora and fauna of the Philippines. All 10 participating brands are exhibitors at FAME+, the digital trade and community platform launched by CITEM late last year to respond to the increasingly digital demands of trade. Among other things, the digital trade platform improves the searchability and discoverability of its over 200 exhibitors from the home, fashion, and lifestyle (HFL) sectors to buyers and design enthusiasts across the globe. Register as a visitor at https://tradefair.inaproduct.com/ and visit the FAME+ virtual booth at inaFashion 2021.

UNIQLO to release League of Legends T-shirts

UNIQLO has announced an upcoming League of Legends UT (UNIQLO T-shirt) collection that will be released worldwide. The collaboration features six unique T-shirts with designs inspired by popular characters like Jinx, iconic in-game elements like Summoner’s Rift and poros, and the girl group K/DA. The T-shirts will be priced at $19.90 each and be available in sizes XXS-3XL. The League of Legends UT collection will be available globally on UNIQLO’s website and in-stores while supplies last. Part of UNIQLO’s LifeWear concept, the UT collection features a wide range of pop culture icons from around the world. To date, the lineup has included collaborations with other globally recognized brands such as Marvel, Disney, and more. Meanwhile, as more Filipinos embrace a stay-at-home lifestyle, there is a greater need for clothing that is comfortable, lightweight, and functional. UNIQLO’s LifeWear clothing embodies the Japanese values of simplicity, quality, and longevity. It is ever-evolving to meet the changing needs of consumers. Crafted with the best fit, fabrics, and innovations, they can complement everyone’s home, wellness, neighborhood, and new work life. Stay comfortable indoors with the Women’s AIRism Cotton Short T-Shirt which has DRY technology, cool to the touch, and moisture-wicking features that make it smooth and cozy. Pair this with the Women’s Drape Pants. The soft fabric and relaxed cut guarantee maximum comfort for lazy days. Hit those fitness goals with the Wireless Bra Active Cross Back which provides firm support with breathable pads and a mesh elastic under the bust. Match this with the AIRism Soft UV Protection Leggings which is cool to touch. For an online work meeting or presentation, stay fresh with the AIRism V Neck Short Sleeve T-Shirt. This garment has UNIQLO’s DRY technology, Cool Touch, odor-control, and deodorizing comfort features. The stretch fabric feels comfortable against the skin. The AIRism Jersey Short Sleeve Polo Shirt is for occasions that require smart wear. The jersey material is easy to move in. Style the shirts with UNIQLO’s Smart Ankle Pants. It has a slender tapered cut and made with a two-way stretch fabric that is comfortable and easy to care for while still looking polished. For more updates, visit UNIQLO Philippines’ website at uniqlo.com/ph.

Shopee Beauty’s summer skincare and makeup sale

FROM hair care to makeup, Shopee Beauty has summer makeup and skincare needs, on sale for up to 90%. These include Neutrogena Foaming Cleanser, a non-comedogenic facial wash that removes excess sebum while maintaining your skin’s natural moisture balance; Breylee Blackhead Mask which contains centella asiatica extract to soothe broken, irritated skin; NIVEA Deodorant which is made with aloe vera to help heal razor cuts and prevent ingrown hairs; Palmolive Shampoo, infused with natural lemon oil which removes dead skin cells and dandruff; Dove Body Wash, whose avocado oil helps prickly heat’s red, itchy skin calm down; Vaseline Gel Lotion, which contains niacinamide to remove dark spots; Cream Silk Conditioner which contains argan, rosehip, and marula oils; Lanbena Vitamin C Serum which, aside from Vitamin C, is packed with hyaluronic acid to moisturize the skin; Pond’s Day and Night Cream which contains not just retinol to reduce wrinkles and fine lines, but also niacinamide and hyaluronic acid for clear and hydrated skin; L’Oreal Repair Mask whose gold quinoa and protein extracts treat dry, brittle locks. There is also oil-free, water-based makeup for summer like lightweight and blendable Maybelline Gel Blush; Sace Lady Eyebrow Gel for sweat-proof eyebrows. For more information, visit https://shopee.ph/m/shopee-beauty. More beauty and healthcare brands such as Fresh PH, BLK Cosmetics, Lanbena, GSK, Sanofi, Garnier, Happy Skin, Revlon, The Body Shop, and L’Oreal Pro are going on sale up to 90% off at Shopee’s Beauty Fair this April 27-28. Watch out for even bigger deals at 5.5 Brands Festival as well. Visit https://shopee.ph/m/5-5 for details.

Kathryn Bernardo named endorser for Nivea deodorant

NIVEA Philippines has chosen actress Kathryn Bernardo as the new endorser of Nivea Deodorant. With her busy lifestyle, the actress acknowledges the need for a deodorant that can keep up. She looks for three things in a deodorant: the smell, ingredients that care for her underarm skin, and the effectiveness at keeping sweat at bay. For Ms. Bernardo, having fresh, bright and smooth underarms boosts her confidence to conquer life. “Underarms are very important for us girls. I feel like, when your underarms are beautiful, your confidence level as a woman is higher,” she said in a mix of English and Filipino in a statement released by Nivea. Nivea’s Extra Whitening Deodorant keeps sweat and odor at bay with 48-hours guaranteed protection, and contains licorice, Vitamin C, and skin nutrients that help repair damaged underarm skin by lightening dark spots and smoothing rough and bumpy skin. NIVEA is available in leading supermarkets, drug stores and groceries and online via Lazada and Shopee.

Ever Organics tackles summer skin

AS SUMMER sets in, so do the intense heat and harmful UV rays which can lead to skin problems. Ever Organics protects skin by keeping it cool and hydrated throughout the sunny days. There is Ever Organics Ice Jeju Aloe Gel Lotion which has a cooling effect that hydrates and refreshes the skin. It contains aloe from jeju plants that can boost suppleness and even out skin texture. It also has antioxidants and antimicrobial properties to handle skin irritation and redness. Then there is Ever Organics Ice Jeju Aloe Face Mist, packed with aloe leaf extract which soothes sore skin from sun damage. It contains Mesembryanthemum Crystallinum that helps fight skin aging and provides an added layer of protection for the skin. Both products are made in Korea and are free of harsh and harmful ingredients. Ever Organics Ice Jeju Aloe Soothing Gel Lotion (P188) and the Ice Jeju Aloe Face Mist (P198) are now available on Lazada. For more information, follow @EverOrganics on Facebook and @ever_organics on Instagram.

Make-up playtime at Beauty Bar

BEAUTY Bar, the one-stop shop for all things beauty, lets you play around with looks based on your mood with choices from two brands that will help you express yourself — Anastasia Beverly Hills’ new items and Smashbox’s bestsellers and exclusives. Prefer a minimalist approach for those less-than-an-hour essential trips out of home? Keep brows tamed with Brow Pen (P1,600) by Anastasia Beverly Hills; a superfine-tipped pen ideal for creating realistic hair strokes that will give you your most natural-looking brows yet. Its waterproof formula glides on effortlessly with a feather light feel and the sharp, flexible brush tip easily builds dimension by micro stroking in areas where you want more fullness. For those never-ending Zoom calls, give lips some color with Lip Stain (P1,150). This longwearing formula has four shades to choose from and goes on as light as water yet delivers lush pigment that stays put without drying out lips. When wearing a mask, let your eyes do the talking with the Amrezy Palette (P2,950) which boasts of 16 all-new, all-Amrezy shades. Rushing to an online meeting? Swipe up Anastasia Beverly Hills’s Lash Brag Volumizing Mascara (Full size P1,550 and Mini P895) and achieve maximum lash volume and fullness that will make you look fresh and awake. The specially designed hourglass-shaped mascara wand separately coats each lash with the lush, full-pigment formula that glides on without weighing down lashes. Want to do a full makeup look? Once you’re done with your base, apply a buildable cheek color and pick from one (or even mix to colors together) of three full-pigmented shades from the Blush Trio (P2,100) for color that lasts all day. Create endless makeup looks for face, eyes and body with the Contour Powder Kit (P2,750); an all-in-one contour powder kit containing three highlighter shades and three contour shades in matte and shimmer finishes featuring the brand’s finely milled powder formula that provides buildable coverage and effortlessly blends and adheres to skin. Then there is the Smashbox Art of Play Collection, a collaboration with artist Donald Robertson (@drawbertson) who created the artwork for these limited-edition makeup gift sets that come in playful, reusable boxes. Start off with the Photo Finish Primer Trio (P1,500) to set the base with smooth, hydrated, and revitalized skin. This set of three travel-sized Photo Finish Primers are vegan, cruelty free and can be used individually or together when prepping skin for makeup. Play up your features with the Halo Cheek Palette (P2,100), a versatile cheek and eye makeup palette that features two luminous putty blushes and two radiant powder highlighters that can be worn alone or layered to create a custom glow. Moisturize your lips with a pigmented and satin-smooth cream formula from the Be Legendary Lipstick Trio Set (P1,350) which has shea butter and vitamins C and E for soft lips. Be more playful with lightweight yet bold liquid matte lipsticks from the Always On Liquid Lip Set (P1,500), which has a water-resistant formula infused with Primer Oil Complex, a blend of jojoba, apricot, and sunflower oils to keep lips comfortable. Keep the focus on the eyes with the Super Fan Lash Duo (P1,500), a cruelty free volumizing lash primer and lengthening mascara gift set which provides 12-hour length without heaviness or clumping. Visit beautybar.com.ph/, lazada.com.ph/beauty-bar, facebook.com/BeautyBarPH, ssilife.com.ph, or follow @beautybarph and @ssilifeph on Instagram for more information about their upcoming Summer Sale.

Montblanc releases new movement

MONTBLANC unveils a brand-new Manufacture movement inspired by the historical Minerva Pythagore calibre 48 created in the 1940s. With the Montblanc Heritage Pythagore Small Second Limited Edition 148, Montblanc takes the best vintage cues from Minerva’s rich past to create timepieces for today. Two models in 18 K rose or white gold are being unveiled with new distinctive color dials. They feature the Minerva secret signature and are equipped with the new Manufacture calibre MB M14.08 with geometrical shapes that recall the historical Pythagore movement. Following the historical design of the collection, the Montblanc Heritage Pythagore Small Second Limited Edition 148 comes with a fully polished 18 K white or rose gold 39 mm case, curved horns with facets, and is fitted with a sapphire crystal glass box for an elegant vintage look. Inspired by historical Minerva timepieces from the 1940s and 1950, special attention has been paid to the dials that include technical finishes such as a two-tone decoration, dome-shape, and lacquering. The watches come with distinctive vintage colored dials, such as blue or burnt caramel. To complete the overall design, the timepieces are adorned with matching brown or blue vintage Sfumato alligator straps. Both of them are strictly limited to 148 pieces in homage to the historical Pythagore movement.