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One in four people globally may not get COVID-19 vaccines until 2022

ROME — Nearly one in four people may not get COVID-19 vaccines until at least 2022 because rich countries with less than 15% of the global population have reserved 51% of the doses of the most promising vaccines, researchers said on Tuesday.

Low- and middle-income countries—home to more than 85% of the world’s population—would have to share the remainder, said researchers from the Johns Hopkins Bloomberg School of Public Health in the United States.

An effective response to the pandemic requires high-income countries “to share in an equitable distribution of COVID-19 vaccines across the world,” they wrote.

“The uncertainty over global access to COVID-19 vaccines traces not only to ongoing clinical testing, but also from the failure of governments and vaccine manufacturers to be more transparent and accountable over these arrangements,” they added.

As of Nov. 15, high-income nations had pre-ordered nearly 7.5 billion doses of vaccines from 13 manufacturers, the paper said.

This included Japan, Australia, and Canada who collectively have more than 1 billion doses but accounted for less than 1% of current novel coronavirus cases, it said.

Even if leading manufacturers’ vaccines reach their projected maximum production capacity, nearly 25% of the world’s population may not get the vaccines for another year or more, according to the paper.

The People’s Vaccine Alliance coalition last week said pharmaceutical companies should openly share their technology and intellectual property through the World Health Organization (WHO) so that more doses can be manufactured.

The John Hopkins researchers said WHO’s COVAX Facility could play a key role in ensuring fairer access to approved vaccines but it has only secured 500 million doses, far below its target of delivering at least 2 billion doses by the end of 2021.

Launched in April, the global pact aims to pool funds from wealthier countries and nonprofits to accelerate the development and manufacture of COVID-19 vaccines and distribute them equitably around the world.

It has so far secured half of the funding it needs and the United States and Russia—key players in vaccine development and manufacture—have not joined, the Johns Hopkins study said. — Thin Lei Win/Thomson Reuters Foundation

End the year on a high note with ASUS Business

The year 2020 has been one of the longest, most difficult years in recent history, especially for any struggling business. The world seems to be changing so rapidly that entrepreneurs and professionals who fail to adapt fast enough could be left behind.

Yet with everyone so busy trying to stay afloat these trying times, there is all the more reason to seek joy and celebration wherever you can find it. Especially for Filipinos, when the holiday season is a season for hope and new beginnings. Year 2020 does not have to end with uncertainty and doubt.

Knowing the importance of keeping the Filipino holiday spirit alive, ASUS, the leading electronics brand, in partnership with popular e-commerce platform Shopee, is launching its new “ASUS For Business Share 2020” promo, in which customers can win exciting prizes for the holiday season.

The prizes include an ASUS AiO 24, ASUS ExpertBook P1410, ASUS P1 Business Laptop, along with three ASUS ZenWifi routers.

Any purchase of ASUS business laptops, desktops, all-in-one PCs, Chromebooks, and Studiobooks in the ASUS Expert Series Official Store in Shopee from Jan. 1, 2020 to Dec. 31, 2020, is eligible to join the promo.

What’s more, customers who will purchase in the ASUS Expert Series Official Store in Shopee starting Nov. 25, 2020, up to Dec. 31, 2020, will be getting an ASUS Wifi Router (RT-AC1300UHP) worth P4,250 for free, to be delivered 14 working days upon receipt of purchased item/s.

All customers need to do is register at bit.ly/ASUSForBusinessShare2020 and fill out the form with their necessary details. But better hurry, because the registration is only open from Nov. 25, 2020 to Feb. 28, 2021.

After the registration, promo participants must also like and share publicly the “ASUS For Business Facebook Page” with the tags #ASUSBusiness #ASUSExpertBook #TrustTheExpert, and leave their thoughts about the brand’s Expert Series.

The raffle draw will happen on March 5, 2021, in presence of a DTI representative, and the results will be announced on March 15 via the ASUS For Business and ASUS Philippines Facebook pages. The winners will receive an email notification from ASUS Philippines (asuscommercialbusiness@gmail.com) in which the winning participants should reply within 7-10 working days.

Designed with the ever-shifting, ever-changing business landscape in mind, the ASUS Expert Series aims to blend the latest technologies with ASUS’s signature award-winning minimalist designs. The result are notebooks that are the lightest, yet toughest in the world, and desktop PCs with the greatest reliability and manageability.

As the business world continues to change further into 2021, keep you and your business on the cutting edge with the best tools and equipment from ASUS. Whatever the need, there is a perfect ExpertBook or ExpertCenter to fill it.

Visit ASUS Philippines and ASUS For Business Facebook page to learn, or click here to check out the products for ASUS Expert Series:

ASUS Business Website: https://www.asus.com/ph/Business/

Lower electricity rates this holiday season

Power rates down again in December 2020, Second lowest overall power rate since September 2017

The Manila Electric Company (MERALCO) announced today another downward adjustment of power rates as the overall rate for a typical household decreased by P0.0352 per kWh, from last month’s P8.5105 per kWh to P8.4753 per kWh this December.

This is equivalent to a decrease of around P7 in the total bill of residential customers consuming 200 kWh.

This month’s overall rate is also a net rate reduction of P1.3870 per kWh, equivalent to bill reduction of more than P277 for a 200 kWh household, since the start of the year.

This the second-lowest overall power rate in more than three years, or since September 2017.

Lower Generation Charge mainly brought about by lower Luzon grid demand

From P4.2018 per kWh in November, the generation charge decreased by P0.0502 per kWh to P4.1516 per kWh this December.  All sources of supply registered lower charges this month.

Meralco said there was a P0.1881 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM).  The Luzon grid’s power supply situation improved in November following a drop in demand which decreased due to successive weather disturbances. From October 2020’s peak demand of 10,344 MW, November 2020 peak demand decreased to 9,886 MW. Also, due to the effects of Typhoon Ulysses, the WESM was suspended by ERC from November 12 to 13, 2020.

The cost of power from the Independent Power Producers (IPPs) also decreased by P0.2577 per kWh due to improved average plant dispatch and Peso appreciation.  Charges from Power Supply Agreements (PSAs) also went down by P0.0214 per kWh with the strengthening of the Peso against the US Dollar.

WESM, IPPs, and PSAs accounted for 9%, 39%, and 52% of MERALCO’s energy requirements, respectively.

Movements in Other Charges

Transmission charge for residential customers registered a slight reduction of P0.0044 per kWh due to lower Power Delivery and Ancillary Service Charges. Meanwhile, taxes and other charges registered a net increase of P0.0194 per kWh.

Collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh remains suspended, as directed by the ERC.

MERALCO’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 65 months, after these registered reductions in July 2015. MERALCO reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.

MERALCO continues to serve during General Community Quarantine (GCQ) 

Customers may visit their nearest Meralco Business Center, which will continue to open its doors during the GCQ and accept service applications, payments, and other transactions.

Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, Social Distancing, and Temperature Check. Frontliners are available and ready but strictly follow Social Distancing guidelines. Visitors can rest assured that these front liners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner.

But, for maximum safety and convenience, Meralco still encourages customers to use Meralco Online to transact from the safety of their homes. Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App via https://onelink.to/meralcomobile, Meralco Online via www.Meralco.com.ph, and the Meralco authorized payment channels at bit.ly/MeralcoPaymentPartners.

For more information and concerns, customers may visit MERALCO’s website at www.MERALCO.com.ph, its social media accounts, Twitter @MERALCO, and Facebook at www.facebook.com/MERALCO or may also call the MERALCO Hotline at 16211.

Remote working solutions you can trust

Secure your remote workforce with ICS and Dell Technologies

The pandemic has pushed many organizations to shift to remote work.  IT solutions provider Integrated Computer Systems, Inc. (ICS) understands the need to cope with the changes and challenges that come with this. Having been in business for over 40 years, ICS enables organizations to adapt to the changing times by delivering relevant and reliable solutions from top global brands.  The company knows the importance of meeting its customers’ and their stakeholders’ needs, no matter the situation.

ICS is a Titanium Partner of Dell Technologies, which offers mid-size markets a wide range of trusted solutions engineered to simplify digital transformation while securing critical assets.

Trusted devices for remote work

Dell Technologies’ broad portfolio of business notebooks and desktops ensures a flexible, secure remote work experience, empowering customers to expand opportunities and streamline operations – anywhere and anytime, without compromising the productivity, connectivity and security.

Dell helps end-users manage the growing cyber risk with ease and confidence. The SafeID is factory built-in to secure end-user credentials; while SafeBIOS is Dell’s unique off-host BIOS verification tool. SafeData, on the other hand, has unique data protection, control, and monitoring capabilities that work across any application, device, or OS.

Dell Optimizer is an intuitive Artificial Intelligence software that learns and adapts to user behavior, creating a smart and personalized user experience. It automatically improves application performance and responsiveness, extends battery runtime, enhances audio, enables and faster sign-in through ExpressSign-in and modern standby features.

One of Dell Technologies’ premier desktops, the OptiPlex 7070 Ultra, is designed for ultimate flexibility. This desktop features swappable elements and an ultracompact PC module that can be hidden in a stand for a beautiful and sleek desktop experience.

The Latitude 9510 exemplifies a new class of ultra-premium mobility, available in laptop or 2-in-1. This is Dell’s smartest and lightest 15-inch business laptop 1, with a stunning brushed aluminum design, diamond-cut edges, and an Infinity Screen.

Trusted infrastructure for data centers

Dell EMC’s infrastructure solutions let you modernize your data center while keeping it protected. The 2U rack servers, flexible-capacity storage, and turnkey HCIs are designed with security from the ground up and are engineered to meet mid-market demands.

The Dell EMC PowerEdge servers are equipped with exclusive capabilities like Automatic Recovery and Dual Root of Trust in scalable rack and tower configurations. They are built to enable ironclad security in data centers, as well as improved productivity to workforces anywhere they work.

Its storage solutions, namely the Dell EMC PowerVault ME4 and Dell EMC Unity XT, protects data in each array across hybrid, all-flash, and multi-cloud storage environments using built-in, drive-level data-at-rest encryption. With these capabilities, Dell EMC storage solutions optimize workloads, reduces risk, and boosts productivity.

Dell EMC VxRail has built-in security from BIOS to hypervisor with protection for data in use, at rest, and in motion across cloud-ready data centers. The VxRail provides a secure, modern infrastructure built to secure remote workforces and ensure business continuity. This reduces the need for multi-vendor add-on products, thus helping simplify the security landscape of mid-market organizations.

Dell EMC’s trusted infrastructure is backed by CloudIQ, a cloud-based monitoring and advanced analytics feature for your data center. CloudIQ provides real-time actionable insights on your data center’s health, simplifying, and streamlining daily IT management tasks.

Hybrid cloud solutions including the Dell EMC PowerEdge and VxRail, to name a few — can scale to dynamic workforce needs and are equipped with built-in security to protect data wherever it resides.

Trusted data protection

Dell EMC is consistently named a Gartner Magic Quadrant Leader for Data Center and Backup Recovery Solutions for over 20 years, proof of its unmatched performance.2

In the digital workspace where data is a critical asset, businesses can be assured that their data is secure all the time with Dell EMC’s purpose-built data protection solutions.

Dell EMC’s PowerProtect DP Series Appliances deliver powerful backup and recovery of a company’s data, wherever it lives, using a single appliance. This line of appliances also offers grow-in-place expansion in 4TB increments up to 96TB, with an optional hardware kit and simple license keys.

PowerProtect DD Series Appliances, on the other hand, offers small and medium organizations fierce security and support for any workload — to, from, and in the cloud. It sets the bar high for efficient data management from edge to core to cloud, with the ecosystem support and comprehensive data protection that customers have come to appreciate from Data Domain.

All these solutions are engineered for small and medium markets to effectively and securely enable digital transformation in their organizations.

Dell Technologies’ vast array of mid-market solutions is available through Integrated Computer Systems, Inc. ICS adheres to its core values of integrity, commitment, and service, providing customers only the most authentic and high-standard products and services.

Get in touch by emailing info@ics.com.ph, or visit ics.com.ph.

1 Found in https://www.delltechnologies.com/en-us/latitude/index.htm
2 Found in https://www.gartner.com/doc/reprints?id=1-1ZHGKFPJ&ct=200716&st=sb

Built with Purpose, Surviving with Relevance

By InLife

As this surreal and seemingly eternal year wraps up — finally, thankfully — many businesses are scrambling to meet targets, cut losses or simply remain standing. At a time when survival has become a measure of success, three industry leaders reflect on the power of purpose, tenacity and reinvention to carry people through crises.

With 2020 being the most challenging year for business globally, seeing things from the perspective of institutions that have survived world wars, political upheavals, natural disasters and pandemics could offer some hope, if not comfort.

Being at the helm of organizations that have been around for over a hundred years, they know a thing or two about thriving in a difficult situation.

“One advantage, if you view it from the lens of a company with a long history, is that there have been cycles like this before, and there are ways of getting through those cycles. What you need is a capacity for reinvention of your organization and the capacity to keep looking forward and setting the sights forward,” said Jaime Augusto Zobel de Ayala, CEO of Ayala Corp., a family-owned corporation with interests in real estate, telecom, and banking that go back 186 years.

“A crisis has to be managed in a very different way. It needs entrepreneurial ability and innovation capacity to work with uncertainty. You try to build an organization that’s comfortable with those elements,” he added.

Like him, Erramon “Montxu” Aboitiz comes from a long line of capitalists from the 1870s and was the president of Aboitiz Equity Ventures from 2009 to 2019.

“I think, a team that has gone through hardship in the past knows that it has to do what it takes to change to innovate to adapt and, and to survive. The real value of a company with our longevity is the likelihood that we are diversified and have established businesses that to make up for each other,” Aboitiz shared.

“Being part of Philippine business and society for such a long time, we thought that there was more than just making money. Our employees are looking for purpose, not just a paycheck every two weeks,” Aboitiz said, noting that purpose is embedded in the services that Aboitiz Equity Ventures provides.

“Purposes are normally forward-looking, very big in scale, ambitious. Having that to work for — both personally and as an organization — it’s amazing what it will do to help you achieve your goals. So, I always tell people: when you make a decision, ask why you’re making the decision. Does it support your purpose? And if it does, you probably are making the right decision,” Aboitiz said.

The two gentlemen made these comments during an online forum hosted by Insular Life (InLife) recently, to highlight the company’s 110 years anniversary (Nov. 25) and to showcase the reason behind the success of Philippine companies that have reached over a hundred years.

“For us at InLife, the starting point is always our sense of purpose and stewardship. Generating profit is of course important, and we need scale to be financially stable and to create impact. But our purpose does not end there. Quite the contrary, our focus is on the difference we make in the broader society. We help in developing the local economy, in continually looking for ways to offer people life chances, as fellow Filipinos first,  part company owners second (InLife is a mutual company), but never as mere consumers,” said Nina D. Aguas, Executive Chairman of InLife.

Ayala Corp., the oldest company in the Philippines, has had to get back on its feet with little liquidity after the Second World War. It was the parent company of InLife until 1987, when InLife became a fully mutual company, transferring ownership to its Filipino policyholders. Today, InLife is the biggest Filipino insurance company in terms of assets and net worth. InLife’s bancassurance partner, Union Bank, is owned by Aboitiz Equity Ventures, which also has interests in power, property, food, and biofuel.

The three companies’ related history and mutual interests highlight the enduring power of purpose in business. Knowing their “why” has guided them in determining their “what”, which is crucial for industry leaders who are drivers of change in the country.

Clarity of purpose is so important for everyone. To me, ‘built to last’ is a perspective, not an end goal. Decade after decade, you have to go through that period of reinventing yourself, as Jaime mentioned, and reimagining what it could be for the current moment because it evolves over time — what society, as Montxu says, requires of each of us,” said Aguas.

Zoble de Ayala said: “I think we’ve reached a new period in our lives as private institutions. The nature of the corporation, its role in society is continuing to shift. More is expected of all of us now. There will be times when we have to be good at what we are doing but we also have to be institutions that can hold hands, cooperate particularly in difficult times, and address the bigger issues that face us, which we cannot do alone.”

Aboitiz echoes this sentiment: “If our businesses is to survive, it can’t survive as an island. It has to survive with this community, with its employees, with its partners, and with society.”

In these trying times, the three leaders agree, businesses should promote cooperation more than competition, and step up as their broader responsibilities evolve with the needs of the people.

 

Remittances up for 2nd straight month

MONEY SENT HOME by Filipinos abroad rose for a second straight month, albeit at a slower pace as the global economic slowdown continued, the central bank said on Tuesday.   

Data released by the Bangko Sentral ng Pilipinas (BSP) showed cash remittances coursed through bank channels rose 2.9% to $2.747 billion from $2.671 billion a year ago. This is the second straight month of year-on-year growth of remittances after the 9.3% recorded in September.

The October inflows were also higher by 5.6% than the $2.601 billion in September.

“The growth was attributed to the increase in remittances from land-based workers with work contracts of one year or more to $2.374 billion in October 2020, 3.3% higher than the $2.298 billion recorded in October 2019,” the BSP said in a statement.

Money sent by OFWs with less than a year of contract also inched up 1.2% to $612 million.

Analysts said the remittance trend in recent months proved to be better than expected given the ongoing crisis. UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said he was actually expecting a 3.6% decline in inflows for October.

“The big story here is more of the OFWs’ resiliency and the timeless Filipino spirit of family first, such that, crisis times further amplifies this warm tradition,” Mr. Asuncion said in an e-mail.

Meanwhile, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the slower pace of remittance growth in October from the September print may be due to some renewed restriction measures in some host nations as infections surged. These include some industry-specific restrictions for European countries such as the United Kingdom, the Netherlands, and Germany, among others.

Despite this, the recovery of remittance inflows is a welcome development to temper the impact of weaker incomes in the recession-stricken local economy, he said.

“The fact that remittances continue to rise even after 300,000 OFWs were repatriated and the global economy faces recession is truly impressive and a testament to the grit and heart of our modern-day heroes,” Mr. Mapa said in an e-mail.

Meanwhile, cash remittances for the 10 months to October slipped 0.9% to $24.633 billion from $24.858 billion in the same period of 2019.

“By country source, cash remittances from Saudi Arabia, Japan, the United Kingdom (UK), the United Arab Emirates (UAE), Germany, and Kuwait declined, while those from the United States (US), Singapore, Qatar, Oman, Hong Kong and Taiwan increased,” the central bank said.

The biggest remittance market was the US, where 40.2% of the inflows were sourced. Remittances from the US, Singapore, Saudi Arabia, Japan, UK, UAE, Canada, Hong Kong, Qatar and Taiwan made up 78.7% of the total.

“The US economy has largely remained open even amidst the coronavirus outbreak and this has somehow helped with continuing positive levels of OFW remittance inflows,” Mr. Asuncion said.

Cash remittances could fall by 2% this year, based on BSP projections.

Meanwhile, personal remittances — which include inflows in kind — rose 2.5% to $3.044 billion from $2.969 billion a year ago. Year-to-date inflows dipped 1% to $27.346 billion from $27.612 billion in the first 10 months of 2019.

The remaining two months of 2020 will bring in continued growth in remittances given the usual holiday flows, said Mr. Asuncion. He expects remittance could range from a growth of 0.1% to -2% for 2020.

Amid the likely increase in remittances for the Christmas season, OFWs may be forced to send more as the peso appreciation story stretches on, Mr. Mapa said.

The peso has been playing around the P48-per-dollar level in recent weeks. It closed at P48.063 on Tuesday, depreciating by 1.30 centavos from its P48.05 finish on Monday, data from the Bankers Association of the Philippines showed. — Luz Wendy T. Noble

Congress OK’s extension of Bayanihan II validity

Public utility vehicle drivers, who were displaced by the pandemic, register with the Land Transportation Franchising and Regulatory Board service contracting program, Nov. 26. The program is funded by Bayanihan II. — PHILIPPINE STAR/MICHAEL VARCAS

CONGRESS has approved the bill extending the validity of the Bayanihan to Recover as One Act (Bayanihan II) by six months, a few days before the law was set to expire on Dec. 19.

The House of Representatives approved the bill on third reading on Monday evening, while the Senate passed the House version on final reading on Tuesday afternoon.

With 179 affirmative votes, six negatives, and no abstention, lawmakers approved House Bill (HB) No. 8063, which extends the validity of Republic No. 11194 or Bayanihan II until June 30, 2021.

The Senate approved the measures extending the validity of Bayanihan II and the 2020 national budget on Tuesday, after the Finance Committee adopted the House versions.

The House on Monday approved on final reading HB 6656, which extends the effectivity of the P4.1-trillion national budget until Dec. 31, 2021.

President Rodrigo R. Duterte certified the measure as urgent, which allows Congress to skip the three-day interval between the second and third reading approval.

The Senate panel adopted HB 6656 without amendments, but proposed to exclude the special powers granted to Mr. Duterte from the extension of Bayanihan II.

“We cannot agree more with President Duterte on the need to extend the effectivity of Bayanihan II in order to accelerate the country’s socioeconomic recovery from the adverse impact brought about by the COVID-19 pandemic,” Speaker Lord Allan Q. Velasco said in a statement.

Bayanihan II, which took effect in September, allocated P140 billion for relief programs for sectors hit hard by the pandemic and another P25 billion in standby funds.

Mr. Velasco said “a huge portion of the allocation has yet to be released.”

A total of P105.775 billion has so far been released under Bayanihan II, the Department of Budget and Management (DBM) reported.

“If not extended, the government will have to release the remaining funds by Dec. 19, or else the funds will revert to the Bureau of the Treasury,” Mr. Velasco said.

Since March, the DBM has released a total of P498.5 billion in funds to mitigate the effects of the pandemic on Filipinos. This included fund releases under Republic Act No. 11469 or Bayanihan to Heal as One Act (Bayanihan I) which reached P386.1 billion from March to June.

EXTENSION OF BUDGET’S VALIDITY
In Tuesday’s session,  Senator Juan Edgardo M. Angara sponsored the bill extending the 2020 budget’s validity. Citing data from the Budget department, he said some P110 billion of the budget have yet to be released as of Nov. 13.

“With the adoption of the cash budgeting system, that means this P110 billion would need to be released and obligated before the year ends or else these are returned to the national treasury,” Mr. Angara said during the sponsorship speech.

“With just a few weeks left in the year, it would be extremely difficult for agencies with pending releases to submit the requirements.”

The extension of the 2020 national budget would help boost public spending, which was disrupted when Luzon was placed under a strict lockdown starting March to contain the coronavirus pandemic.

“So unfortunately, hindi nagastos this year, that’s why you had the economy contract by roughly 10%,” Senator Ralph G. Recto said in a television interview on Tuesday.

“It would be more difficult to recover, for the economy to recover if the government spent less. Government is 25% of the total economy. The private sector will not be making those investments, which we need.”

The Philippine economy contracted by 10% in the first nine months of the year, amid weak consumption and sluggish government spending.

Congress on Wednesday will go on a month-long break until Jan. 17, 2021. — Kyle Aristophere T. Atienza and Charmaine A. Tadalan

Dutch firm to start preparation work for Bulacan airport in Q1

By Arjay L. Balinbin, Senior Reporter

CONSTRUCTION of the P740-billion airport project in Bulacan is set to begin in the first quarter of 2021, San Miguel Corp. (SMC) said on Tuesday, with land development work to be undertaken by a Dutch company.

The Manila International Airport project “is set to take off in the first quarter of 2021, after it awarded global firm Boskalis a $1.73-billion contract” to restore the land where it will be built, SMC said in an e-mailed statement.

The company in October said groundbreaking for the Bulacan airport would take place “by the end of the year.”

SMC said it selected Dutch firm Royal Boskalis Westminster N.V., through its local unit Boskalis Philippines, Inc., to undertake land development work for the project, which will be built in the coastal areas of Bulakan town, Bulacan.

“Our selection of a global giant in dredging shows how ready, willing, and committed we are to do everything necessary to make sure this airport project is developed properly and sustainably,” SMC President and Chief Operating Officer Ramon S. Ang said in the statement.

Mr. Ang said the mega-airport is expected to be fully completed by 2024.

He noted the Dutch dredging firm, which has been involved in development projects in South Korea, Panama, Indonesia, and Amsterdam, will prepare the area to “withstand potential large earthquakes, local typhoon conditions, and even future sea level rise.”

To recall, SMC’s airport project has faced criticism from various groups over its environmental impact.

The Philippine Institute of Volcanology and Seismology said during a Senate hearing in September that the airport project is at risk of flooding and ground shaking.

Mr. Ang said the company will use engineering intervention to avoid the risks that come with building an airport in a coastal area.

To address such concerns, SMC has tapped Groupe ADP (Aeroports de Paris), Meinhardt Group and Jacobs Engineering Group for the construction of the airport. These firms are behind Singapore’s Changi airport, France’s Charles de Gaulle airport, and the United States’ Hartsfield-Jackson Atlanta International airport.

WRIT OF KALIKASAN
Meanwhile, Oceana Philippines in a statement said fisherfolk and civil society groups filed a petition for a Writ of Kalikasan against SMC’s airport project before the Supreme Court.

The petitioners included Bulacan-based fishermen Teodoro Bacon and Rodel Alvarez, Oceana Philippines Vice-President Gloria Estenzo Ramos, Archbishop Roger Martinez of the Archdiocese of San Jose del Monte, and Aniban ng mga Mangagawa sa Agrikultura led by Renato de la Cruz.

Oceana Philippines said the petition was filed to stop the reclamation of Manila Bay in order to save marine life, endangered birds and mangroves and ecosystems. They also claimed that the airport project did not have an environmental compliance certificate (ECC), as it was SMC’s contractor Silvertides Holdings that was issued an ECC on June 14 last year.

“We have to keep on working together in the protection, rehabilitation, and conservation of Manila Bay, not only for its economic importance and contribution to national food security, and for its historical, cultural, and aesthetic value but to make ecosystems and people resilient to the impacts of climate change,” Oceana’s Ms. Ramos said.

The case respondents include Mr. Ang, Silvertides President Hercules V. Galicia, Environment Secretary Roy A. Cimatu, Environmental Management Bureau Region III Regional Director Wilson L. Trajeco, and Transportation Secretary Arthur P. Tugade.

A Writ of Kalikasan is a legal remedy that protects the people’s constitutional right to a healthy environment.

As of press time, SMC has not yet replied to BusinessWorld’s query for comment.

SMC shares closed 1.08% lower at P137.70 apiece on Tuesday. — with Angelica Y. Yang

Dollar reserves hit new record as of end-Nov.

THE COUNTRY’S foreign exchange buffers reached a new all-time high as of end-November, according to the Bangko Sentral ng Pilipinas (BSP).

The gross international reserves (GIR) stood at $104.51 billion as of end-November, increasing by 21.2% from its $86.227-billion level a year ago and up 0.68% from end-October’s $103.802-billion dollar stash.

This is the third consecutive month that the GIR level is beyond the $100-billion projection by the central bank.

The BSP said the month-on-month uptick in the dollar buffers got a boost from inflows from its foreign exchange operations and income from overseas investments.

On the other hand, foreign currency withdrawals during the month meant for debt obligations and revaluation losses from the gold stash were offsetting factors to the GIR buildup.

“The latest GIR level represents an adequate external liquidity buffer, which can help cushion the domestic economy against external shocks. This buffer is equivalent to 11.2 months’ worth of imports of goods and payments of services and primary income,” the BSP said in a statement.

At its end-November level, the GIR is also about 9.3 times the country’s short-term external debt based on original maturity and 5.3 times based on residual maturity.

Sufficient buffers cushion financial markets from volatility and assure foreign investors and debt watchers of the government’s capacity for debt payments despite the crisis.

The continued rise in the GIR also reflects the narrower trade deficit trend due to the slow recovery in imports, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

Latest data from the Philippine Statistics Authority showed imports continued to shrink for the 18th consecutive month by 19.5% to $7.979 billion. Trade deficit in October was at $1.777 billion, narrower than the $1.783 billion in September 2020 and $3.573 billion in October 2019.

Broken down, reserves in the form of gold stood at $10.747 billion as of end-November, increasing by more than a third (34%) against its $8.015-billion standing a year ago.

Gains from foreign investments, which make up the bulk of the GIR, climbed 21.5% to $89.063 billion from $73.295 billion in November 2019.

On the other hand, foreign currency deposits decreased 15.7% to $2.681 billion from $3.18 billion.

Meanwhile, the country’s reserve position with the International Monetary Fund surged 44.1% to $809 million from $561.8 million. — Luz Wendy T. Noble

AboitizPower seeks to raise P30B from retail bonds

PROCEEDS of the first tranche will be used for debt refinancing and/or for general corporate purposes. — ABOITIZPOWER.COM

ABOITIZ POWER Corp. is looking to raise P30 billion by issuing retail bonds, which it plans to sell in tranches depending on market conditions, the energy company told the stock exchange on Tuesday.

It said its board had approved on Dec. 14 the filing of a registration statement under the shelf registration program of the Securities and Exchange Commission for peso-denominated fixed-rate retail bonds.

AboitizPower also said its board had approved on Monday the issuance of the first tranche of retail bonds worth P4 billion, which is scheduled to be rolled out in the first quarter next year.

The retail bonds have an oversubscription rate of P4 billion, and they will be made available to the public “subject to market conditions” next year. The company intends to list the first tranche with the Philippine Dealing and Exchange Corp. (PDEx).

“Proceeds of the first tranche of the Retail Bonds will be used for refinancing of corporate debts and/or for other general corporate purposes,” AboitizPower said.

The company’s planned debt offering comes after its announcement last month that it had scheduled the two units of a subsidiary’s 1,336-megawatt (MW) supercritical coal-fired power plant in Dinginin, Bataan to start operating commercially around the middle of next year.

AboitizPower said the first unit of GN Power Dinginin Ltd. Co. is set to synchronize with the grid by the end of the year and start operating by the second quarter of 2021.

The second unit will be synchronized and start earning commissioning revenues by the second quarter of next year. It is scheduled to start operating commercially by the third quarter. The two units have an identical capacity.

AboitizPower, which accounted for nearly half of Aboitiz Equity Ventures, Inc.’s income as of the third quarter, said its ownership of the plant allows it to surpass its 4,000-MW target “attributable” capacity while serving the country’s base load energy demand.

AboitizPower did not give details on its attributable capacity or its share in the new energy generating project. GNPower Dinginin is a joint venture of AC Energy, Inc., AboitizPower subsidiary Therma Power, Inc. and Power Partners Ltd. Co. — Angelica Y. Yang

Lopez Holdings files petition to delist from stock exchange

LOPEZ HOLDINGS Corp. has asked that its common shares be delisted from the bourse’s main board after its stocks’ public float fell below the minimum public ownership requirement with the completion of an associate firm’s tender offer.

In a statement dated Dec. 14 but disclosed to the Philippine Stock Exchange on Tuesday, the holding firm said it had filed a petition for voluntary delisting of its 4,628,672,611 common shares from the Philippine Stock Exchange, which requires listed companies to have a minimum public ownership of 10%.

The voluntary delisting follows Lopez Holdings’ disclosure on Dec. 1 about its board’s nod on the tender offer of First Philippine Holdings Corp. (FPH) to acquire from shareholders a minimum of 20% and a maximum of 45.56% of the total issued and outstanding common shares. The shares were priced at P3.85 apiece.

Excluded from the tender offer are the shares owned by its ultimate parent entity, Lopez, Inc., which has agreed not to tender its common shares.

Lopez Holdings also said that a fairness report from independent financial adviser KPMG/R.G. Manabat & Co. dated Dec. 14 provides that the fair value of the listed common shares ranges from P2.34 to P3.92 each as of the cut-off date, Sept. 30, 2020.

As such the tender offer price of P3.85 per share is within the computed range of Lopez Holdings’ equity value per share, the firm said.

It quoted the financial adviser as saying that the price is deemed “fair and reasonable from a financial point of view, as of the cut-off date.”

As of Nov. 30, Lopez, Inc. owned 54.44% of the listed and outstanding common shares of Lopez Holdings, while the remaining 45.56% was owned by the remaining shareholders.

On Tuesday, shares in Lopez Holdings at the stock exchange were down 0.27% at P3.72 each.

Gov’t makes full award of bonds as yield drops on strong demand

THE GOVERNMENT on Tuesday made a full award of its offer of reissued 10-year Treasury bonds (T-bonds) as its yield dropped, with investors continuing to prefer safe-haven securities as the coronavirus pandemic stretches on.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 10-year papers. Demand for the T-bonds reached P70.45 billion, more than double the offered amount. This brought the outstanding volume for the series to P94.94 billion.

To accommodate the excess demand, the Treasury also opened its tap facility to borrow another P10 billion via the tenor.

Yesterday’s offering was the Treasury’s last regular auction for the year.

The 10-year T-bonds, which have a remaining life of six years and four months and carry a coupon rate of 4.75%, were quoted at an average rate of 2.791% yesterday, declining by 194.1 basis points (bps) from the 4.732% fetched during the previous auction of the series.

National Treasurer Rosalia V. De Leon told reporters after the auction that investors continue to favor government securities in their search for returns, as seen in the demand logged yesterday.

“We saw big volume tendered and lower bids versus secondary for the security. [We] saw interest shift to belly of curve for yield pickup as GS [government securities] auctions wrapped up for the year,” Ms. De Leon told reporters in a Viber message.

She added that within-target headline inflation prevented yields on government debt from climbing.

Headline inflation stood at 3.3% in November, quicker than the 2.5% in October on the back of an uptick in food prices and energy costs.

Despite this, the year-to-date increase in the consumer price index settled at 2.6%, still within the Bangko Sentral ng Pilipinas’ (BSP) target of 2-4% for 2020.

The central bank expects headline inflation to average at 2.4% this year.

Meanwhile, a trader said investors continue to tread the market cautiously amid uncertainties caused by the pandemic.

“With ample liquidity and with BSP seen to keep its monetary policy settings accommodative, investors continue to place their funds to safer options such as government securities,” the trader said in a Viber message.

The BSP’s policy-setting Monetary Board will hold its last review for the year on Thursday, Dec. 17.

The central bank will likely keep its key policy rates at their current record low levels as it considers the recent uptick in the country’s inflation rate, according to analysts.

A BusinessWorld poll last week showed all 15 analysts do not expect the Monetary Board to go for another rate cut at its seventh and final policy meeting for the year.

The BSP unexpectedly slashed rates by 25 bps last month, citing the need to provide support amid continued uncertainty caused by new virus cases globally and the impact of a recent string of typhoons.

The central bank has lowered policy rates by 200 bps this year.

However, many analysts believe the BSP will resume its easing cycle as early as the first quarter of 2021 to help the economy bounce back as recovery prospects remain dim.

The Treasury wanted to borrow P120 billion from domestic lenders in December: P60 billion in weekly T-bill auctions and P60 billion in fortnightly T-bond offerings. It made full awards of all its offerings even as rates on some papers inched higher.

The government wants to raise around P3 trillion this year from local and foreign lenders to help fund its budget deficit, which is expected to hit 7.6% of the country’s gross domestic product. — LWTN