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Bloomberry suffers P771-M net loss due to pandemic lockdown

BLOOMBERRY Resorts Corp. incurred P771.17 million in first-quarter net loss attributable to parent firm equity holders, a reversal of year-ago’s P1.38-billion income, after its operations were hampered with the return to stricter quarantine measures.

“Solaire has been closed to the public since March 29,” the listed company said in a regulatory filing on Monday. Its subsidiaries own and operate Solaire Resort & Casino and Jeju Sun Hotel & Casino.

Bloomberry cited the rising cases of coronavirus disease 2019 in March 2021, which prompted authorities to again place Metro Manila and nearby provinces under an enhanced community quarantine (ECQ) on March 29. The measure transitioned to a less strict modified ECQ on April 12.

“For 88 days in the first quarter, Solaire’s casino was operating at a capacity consistent with a limited dry run as allowed by the Philippine Amusement and Gaming Corp.,” Bloomberry said.

“Such dry run operations, which involve only long-stay and select invited guests, are a means for the industry to fine-tune its services in accordance with new normal protocols,” it added.

During the quarter, Bloomberry’s consolidated revenues reached P5.51 billion, 41% lower than the P9.36 billion a year ago, while its consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 59% to P1.4 billion from P3.5 billion previously.

The company’s operating costs and expenses also dropped 6.7% to P4.97 billion in the first quarter from P6.78 billion a year ago.

Bloomberry said its gross gaming revenues (GGR) for the period fell 43.6% to P6.9 billion from P12.2 billion in the same quarter last year.

“Solaire’s VIP, mass table, and electronic gaming machine GGR in the first quarter were P1.9 billion, P2.5 billion, and P2.4 billion, representing year-over-year declines of 59%, 36%, and 32%, respectively,” the company said.

It added that Solaire’s January-March non-gaming revenues fell 49% to P872.1 million, with hotel occupancy at 21.5% — lower than the 67.3% recorded in the same period last year. 

Meanwhile, Jeju Sun Hotel & Casino posted no gaming revenue for the period as its operations were suspended since March 21 last year, while its non-gaming revenue fell 96% to P700,000.

Enrique K. Razon, Jr., Bloomberry chairman and chief executive officer, said the momentum of Solaire Resort & Casino was cut short as it was closed for the duration of the lockdown.

“In the meantime, Bloomberry will carry on with further strengthening services and health security protocols at Solaire in anticipation of restarting operations as soon as allowed by the relevant authorities,” Mr. Razon said.

“Despite the challenges, the company generated solid results in the first three months of 2021 with gaming revenues, EBITDA and the bottom line improving from the previous quarter. Our performance highlights our management team’s commitment to return to profitability as well as the dedication of our team members to creating unparalleled entertainment experiences for our returning guests,” he added.

On Monday, shares of Bloomberry at the stock exchange improved 1.14% or seven centavos to end at P6.20 apiece. — Revin Mikhael D. Ochave

Hell’s bells!

POISON CONTROL — NINTENDO.COM/GAMES

Video Game Review
Poison Control
Nintendo Switch

Saviors of Sapphire Wings/Stranger of Sword City Revisited
Nintendo Switch

Immortals Fenyx Rising
Nintendo Switch

NIPPON Ichi Software’s Poison Control hits all the check marks of a standard game from the Japanese developer and publisher. It’s got fun characters, a nice art style, and a witty story to wrap it all up. Blend all these together inside a third-person shooter cum role-playing game hybrid, and you have the makings of an extremely interesting game, with a lot of personality. After all, what other game throws you in hell to clean it all up?

In Poison Control, you’re tasked with the impossible idea of getting out of hell, a goal possible only by purifying the various delusions called “Belle’s Hells” into reality. Each of these Hells are created by strong, negative emotions. It’s only by going inside of them and cleaning them of “poison” that you can eventually find a way to escape, as each conquered hell earns you a ticket for your effort. Enough of these tickets can send you to Heaven, and from there, be able to make a wish to set you free from your bondage. It won’t be easy, though, as you’ll need to sweep up toxic pools of poison, shoot down the denizens living inside each fantasy, and even have to tread carefully around your sidekick Poisonette. It’s only by doing all of this that you can be cleansed of these delusions, and, in so doing, be able to escape hell as well.

The concept of Poison Control borders on the ridiculous, but the premise of the game holds up well. Its nonsensical parts are kept in check by each of the Belle’s Hells you have to conquer, and there’s enough substance in there to keep you going. Each Belle’s Hell is its own persona; it has its own narrative, objectives, and conclusions attached to it, offering uniqueness in spades, especially when complemented by the various enemies and obstacles you have to face. Rounding these stories together is the tale of your own plight. Here, Poisonette serves as both helper and hindrance in your quest to escape, and it’s surprising how well its plot can craft an interesting but uneasy partnership.

Fanservice moments aside, Poison Control’s cutesy attitude hides an overall engaging story, one that’s reliant on trust and mistrust to carry its message through. When paired with the game’s great art style and addictive music, it’s only natural to fall in love with the narrative, which, happily, does not disappoint. It’s decidedly over the top — sometimes serious, sometimes silly, but always fun to parse through.

To be sure, story isn’t the only thing that propels Poison Control. It is, at heart, half visual novel, half RPG, and just like any good third-person shooter, you’ll be doing a lot of sniping. The movement and shooting controls are fairly standard, primarily focused on dancing around enemies and avoiding fusillades of shots. You can return fire with your own weapons, and there is a fair amount of different weapon types to get your hands on. You’ll be able to equip antidotes and catalysts to buff your stats, not to mention arm yourself with new kits and abilities that can affect how you approach combat. You can even talk to your partner-in-hell Poisonette to give you some extra insight into her character.

Above all else, what makes Poison Control stand out is in how it manages to meld its pluses together so that it becomes greater than the sum of its parts. Shooting and dodging might be a simple affair, but the levels are crafted with poisonous terrain in mind, and stepping on one not only slows you down but also damages you over time. Ridding yourself of poison, though, gives you some helpful benefits, and even lands a free hit on enemies that stand on it, so you’ll find yourself juggling between cleansing the poison and shooting down enemies.

It’s the edge-of-seat decision making that keeps Poison Control interesting, and you’ll soon find yourself instinctively dancing between enemies, mowing them down with your shots, and taking a breather by skating through the poison. The game does this type of gameplay loop so well that it just naturally clicks and becomes addicting and addictive, especially when it isn’t afraid to throw some tougher enemies and weirder level designs at you.

Which is not to say Poison Control is perfect. The gameplay mechanics are fairly solid, but the constancy of encounters admittedly engenders a been there, done that vibe. Towards the latter half of the game, it’s hard for you not to feel like there was something missing to spice things up, as if just one more new mechanic or item could be for the better. If anything, its pacing is its biggest flaw; even as the story is invariably entertaining, its mechanics can feel repetitive after a few hours, when its outstanding level and enemy design is hard-pressed to offset familiarity.

For anyone who’s a big fan of good stories and NIS’ trademark cute designs and music, Poison Control is charming enough to keep you entertained all the way to the end. Its action RPG elements will tide you over between major story segments, and when that starts to get boring, the game’s writing can make up for it with significantly dramatic moments. At the end of the day, its story drives it – more story driven than third-person shooter, and that’s not an entirely bad thing. It might not be everyone’s cup of tea, but for those who love its flavor, it’s one that won’t disappoint.

THE GOOD:

Great story, good art style, and nice music to enjoy throughout

Excellent gameplay mechanics

Multiple endings to play through

THE BAD:

Can get tedious and repetitive in the latter half

Somewhat lacking in enemy and stage variety

Occasional glitches and optimization issues

RATING: 9/10

POSTSCRIPT:

Games like Etrian Odyssey, Shin Megami Tensei, and Legend of Grimrock prove that while first-person dungeon crawler RPGs come from a niche genre, there’s still a very dedicated fanbase looking for them. While the market isn’t bustling with these titles, there’re still a lot of good ones to pick from, with two of them being NIS’ Saviors of Sapphire Wings and Stranger of Sword City Revisited. The entertaining mixes of JRPG and adventure have a lot on offer; from its beautiful art style to its interesting gameplay, they present a good blend of accessible gameplay features with deep, engaging, and ultimately enjoyable combat and narrative.

The premise of Saviors of Sapphire Wings and Stranger of Sword City Revisited are simple. Create your own party of daring adventurers, deck them out into unique classes of your choice, and unleash them into the world. They’ll fight monsters, explore dungeons, use skills, and even bond with one another, and, once powered up to fullest potential, save the world from what evils lay in wait to threaten its existence.

That’s the primary gameplay of Saviors of Sapphire Wings and Stranger of Sword City Revisited in a nutshell, and while it’s standard for dungeon crawlers, the features do stand out. There’s a wide variety of classes to experience, with each having its own unique strengths and drawbacks. Characters can form bonds with one another to boost their effectiveness, take different row positions to maximize their strengths, and even customize their ability progression, lending you a small degree of freedom in how each operates. Equipment also goes a long way into determining their effectiveness, and the games will have you running from dungeon to dungeon in an effort to maximize your gear. And that’s not talking about the base combat mechanics either. With lots of buffs, status ailments, debuffs to manage, and a simple elemental system to master, it’s “cookie cutter,” but all good fun, especially when enhanced by the capacity to repeat actions or skip animations entirely to cut down on the grind time.

And, make no mistake, grinding is really what you’ll be doing for most of Saviors of Sapphire Wings and Stranger of Sword City Revisited. You explore, you level up, you sell trash, you acquire new loot, and you do it all over again until you’re strong enough to face the boss. It’s evidently time-consuming, but you’ll find yourself losing track of the hours as you traipse through dark hallways and musty corridors. The epic monsters you face, the well-designed backgrounds, and the engaging combat all serve to keep you occupied through your playtime, and even well-beyond that if you’re in the mood for some well-designed dungeon-crawling fun. The gameplay style doesn’t change much, but the music does, and it’s pretty good, too. Stranger of Sword City Revisited’s fantastical, melancholic music melding with its faster paced boss pieces serves a stark contrast to the Saviors of Sapphire Wings’ much cooler, composed tracks. Moving from one game to the other really serves to highlight the contrast, and gives each its own distinct personality.

If there has to be anything to knock the twin releases for, it’s that the base games are honestly not very difficult. Unlike their contemporaries, Saviors of Sapphire Wings and Stranger of Sword City Revisited’s game designs aren’t the cruel and unusual types you’d find in some of the older dungeon crawlers veterans of the genre. What curve balls exist in the games are more than manageable, and what mistakes you make in the process can be made up for with surprising leniency. At no point do the games ever feel truly challenging, and while it’s easy to appreciate their fairness, restraint, and, most tellingly, lack of instantaneous deaths, they can just feel a little too easy sometimes. It lacks a sense of urgency inherently important in games like these, as without it, much of the tension and enjoyment of exploring goes away. They do try to challenge you, but not for long, and without much of a fight.

In sum, if you’re looking for an accessible dungeon crawler with solid JRPG elements, good Quality of Life features and interesting environmental and enemy designs, then the Saviors of Sapphire Wings and Stranger of Sword City Revisited bundle is a decidedly good buy. It might be missing the challenges posed by the harsher, more serious dungeon crawlers in the genre, but it features solid mechanics, and should prove more than enough to keep the vast majority of gamers entertained.

THE GOOD:

Great artwork, design, and soundtrack

Accessible and easy to understand dungeon-crawling

Plenty of game time to run through, and most of it enjoyable due to QoL features that mitigate frustration

THE BAD:

Customization isn’t as flexible

Gameplay is interesting, but not very challenging, and somewhat easy to master

RATING: 8/10

If there’s one thing Ubisoft is known for, it’s the design of open world games. Whether you’re trudging through the forests of Far Cry or traipsing through the medieval cities of Assassin’s Creed, the familiar sandbox formula of the French developer and publisher is one you’re not likely to miss, and within this formula lies a plethora of side activities to engage in. Tons of collectibles to pick up and a lot of land to cover blend together to make for an experience designed to hold your attention for hours to come.

This sandbox formula is one that Immortals Fenyx Rising seems to have taken to heart. And, while much of what it does is formulaic, its own sense of style pushes through in a way that makes it hard to forget, as very few games manage to pull off what it does with its jokes, its visuals, and its gameplay. In Ubisoft’s latest offering, you play as Fenyx, off to save the world from mad Typhon’s grasp. After the latter has locked away the gods and turned to stone all who oppose him, it’s up to you to undo the chaos and restore order back to the land, no matter the cost.

What this means for you is navigating Fenyx through the land and rescuing the four main gods from their confinement. However, travel is not a mundane experience in Immortals Fenyx Rising, as unlike other adventure games, you don’t just walk. You glide. This is one of the more charming ideas implemented in an engaging way, and while it’s hardly an original idea, it does keep you immersed as you swoop across the skies and explore the land at your leisure. Being open world, the game offers you more than enough locations, and whether it’s the dried-out wastelands or lush forests and rivers, you’ll be steeped in exploration.

But that’s not all you do in Immortals Fenyx Rising. Finding treasure is only half the fun. After all, Typhon has twisted the land and its denizens to his will. Now, mythical creatures are out for blood, and you’ll have to use every trick in the book to beat them. From hacking them down with your sword and axe to throwing parts of the environment at them to knock them flat on their behinds, combat is fast, fluid, and responsive, with your heavier hits capable of stunning opponents and leaving them vulnerable. And that’s not even mentioning the wide variety of skills available for you to unlock in order to complement your fighting style, letting you play much more aggressively than you would otherwise have been able to.

There’s also the many dungeons in Immortals Fenyx Rising to explore. Each of these Vaults is unique, testing particular skills in platforming, combat, and puzzle-solving, and each rewards players with valuable equipment and loot. What’s more, exploration also nets you power-ups, giving important boosts to your health and stamina that allow you to take more punishment, climb higher objects, and use your skills more often.

All of these positives — the exploration, the story, the combat — hit hard, mainly because of one thing; the game’s unique brand of humor emanating even from its unique art style and design, which fit perfectly with its story and themes. Its Greek motif stands strong, with the enemies you face pulled straight from the annals of Greek mythology. Minotaurs, cyclopses, and harpies roam the land. The shades of fallen soldiers haunt graves, shipwrecks, and tombs long forgotten, and Typhon’s corruption seeps through the terrain and causes it to fester and break out into rubble. It’s a sight to see, and when it’s good traits are combined with its constant references to Greek mythology, it’s hard not to fall in love with it outright.

If Immortals Fenyx Rising does have a flaw, it’s that the jokes fall flat if you aren’t too familiar with Greek mythology. Much of its dialogue and story segments rely on prior knowledge of how these Greek myths were told. Without it, much of the game’s humor goes by unnoticed, and the jokes feel more irritating than witty. The game relies heavily on its charm to keep its foundation strong, and without it, Immortals Fenyx Rising feels wobbly at best.

Still, what Immortals Fenyx Rising manages to accomplish is truly surprising. It’s not as gritty, or as dark, or as dramatic as Ubisoft’s other open world titles, but it’s just as captivating, if not more so. It’s a title that’s hard to put down, and while it doesn’t tread new ground, the path it walks is certainly one worth choosing.

THE GOOD:

Great sense of atmosphere, design, and pacing

Simple but robust combat mechanics revolving around hitting, parrying, stunning and dodging

Tons of areas to explore, challenges to face, and puzzles to solve

THE BAD:

Story can be hit or miss depending on degree of familiarity with Greek Mythology

Can at times feel grindy due to its open world nature

RATING: 9.5/10

THE LAST WORD: If you’re on the lookout for outstanding gaming hardware on the go, look no further than Asus’ Republic of Gamers lineup. The name speaks for itself, and, for those angling to get their hands on the best laptops it has to offer, there is no better time to act than now. The brand is heavily pushing its top-of-the-line models via a month-long promotion that gives significant freebies to buyers.

If there’s one minus to Asus, however, it’s that the Taiwan-based multinational company will implement its promotion mechanics to the letter. The sales blitz started on April 29, and, as far as it’s concerned, any purchase before it will not qualify. A purchase of the ROG S17 made on April 26, for instance, was denied the opportunity to avail of the freebies.

Which, of course, is Asus’ prerogative. That said, the intrinsic value of any promotion lies in its capacity to engender customer loyalty. It’s one thing to entice gamers to make a one-time purchase, and quite another to ensure that they stay with the brand for the long haul. The insistence on sticking to the fine print is even more telling in light of the cost of the laptops. The cost of the S17 in the aforementioned case is in the six figures, certainly far from cheap. Moreover, the fact that the purchase was made a mere three days from the start of the promotion — and well within the seven-day window for returns — should have made the decision a no-brainer for Asus.

‘Build, Build, Build’ enters legacy-building stage

PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza, Reporter

HEADING into its final year in office, the government will have tweaked the “Build, Build, Build” (BBB) program multiple times to favor those projects with the best chance of being even partially completed before President Rodrigo R. Duterte steps down.

Starting with 75 big-ticket projects at its launch in 2017, the P8.4-trillion flagship infrastructure program was meant to address the Philippines’ lack of competitiveness because of bad roads, transportation, and crippling road traffic that made Metro Manila a difficult place to live for its residents, much less investors.

But the project list was subjected to three revisions in four years, entailing several rounds of feasibility reassessment. The result was that some projects were omitted and other more “shovel-ready” projects added to the list, ultimately expanding it to over 104. The National Economic and Development Authority board, chaired by the President, put the value of these projects at P4.13 trillion in mid-2020, a little lower that the P4.23-trillion cost estimate for the 2019 revised list of 100 projects.

The stakes couldn’t be higher — the political future of Mr. Duterte’s successors, who can be expected to continue his programs and forestall retaliation from any potentially hostile new administration.

Robin A. Gonzales, a 28-year-old resident of Manila, is determined not to vote for Mr. Duterte’s “anointed” candidate if road congestion doesn’t improve.

Speaking to BusinessWorld via Facebook chat in February, Mr. Gonzales said he needs to commute to work on the capital’s traffic-choked roads. He describes the time he spends stuck on the road in terms of opportunity losses.

“The traffic problems eat up my time, which could have been used for more productive work,” he said in a Facebook messenger chat.

On how he intends to vote in the national election of 2022, he said: “It’s better to vote for someone who can fulfill his promises.”

Citing studies by the Japan International Cooperation Agency, the Metro Manila Development Authority said in 2019 that the capital region’s road congestion cost the economy P3.5 billion a day in 2018. Losses may rise to P5.4 billion a day by 2035 if no changes are made.

So far, only two items from the original flagship list — the Angat Water Transmission Improvement Project and the Luzon Bypass Infrastructure Project, an information and communications technology upgrade — have been completed, according to a study released by the Philippine Institute for Development Studies in December.

With time running out on the administration, the best-case scenario for the end of term might be leaving a substantial project pipeline, trusting that they will be implemented by the next government, with the risk that the successor administration may want to associate itself with its own projects or otherwise pursue other priorities. The government gamely insists that its official target remains the completion of 56 of the flagship projects before Mr. Duterte steps down. The remainder will be completed as late as 2028 — when the successor government itself is due to leave office.

A total of 34 projects in the latest list are in the pre-construction stage, 44 are being built, and 24 are in the various stages of approval.

Eight projects from the old list have been shelved, including five transport projects — Sangley Airport, New Dumaguete Airport, New Zamboanga International Airport, the Bataan-Cavite Interlink Bridge, and the Dalton Pass East Alignment Alternative Road Project; three water projects — the Panay River Basin Integrated Development Project, the Kabulnan-2 Multipurpose Irrigation and Power Project in Maguindanao, and the Kanan Dam Project in Quezon.

Despite the culling of transport projects, the sector remains the largest spending item with 74.4% of the total, followed by water (12%), social infrastructure (5.03%), information communication technology (3.17%), healthcare (2.70%), and power (1.76%).

SPENDING BAN
One recurring hurdle to any government infrastructure initiative is the election-period ban on public works spending, which was designed to prevent incumbents from disbursing money on so-called “midnight projects” in the run-up to the election. What the drafters feared most was a last-minute surge of project spending in a bid to influence the outcome of the polls.

One drawback of this rule is that contractors need to maximize the dry-season construction window. As it happens, national elections are typically scheduled in May — the height of the dry season. Which means that every presidential term of six years will automatically sacrifice two construction windows in the years when the midterm and the national elections are due to be held. The election spending ban in 2022 runs from March 25 to May 8, as outlined in Commission on Elections (COMELEC) Resolution No. 10695, released in February.

The workaround to the spending ban is that contracts or funding for flagship projects must be secured weeks or months before the ban. Failing to do so means “all these projects may risk being shelved by the next administration,” InfraWatch PH conveyor Terry L. Ridon said in an e-mail.

The only way out of the spending ban is to obtain an exemption from the COMELEC. The commission has stringent rules for granting exemptions.

“Prior to the ban, public works funding should have already been released, and public works contracts should have already been awarded in order to qualify (for) exemptions,” Mr. Ridon said.

Flagship projects funded via Public-Private-Partnership (PPP) schemes are not covered by the ban, but “projects supported by official development assistance may be subject to the rule, unless infrastructure agencies seek specific exemptions from the Comelec for these projects,” he said.

Foreign loans play a key role in flagship-project spending. Of the P4.13 trillion earmarked for the projects, more than half or P2.26 trillion will be funded via loans and grants from overseas across 50 projects or so, most of them transport-related.

“Frankly, if flagship projects fail to get funded or awarded prior to the ban, it will be the next administration that will decide whether or not to pursue the project,” Mr. Ridon said.

“One month prior to the transfer of power will certainly be not enough to undertake the funding and awarding of flagship projects without allegations of midnight deals and golden parachutes for outgoing government executives,” he added.

Although there had been initial reluctance to undertake projects under build-transfer-operate terms, the government eventually included 29 PPPs worth P1.69 trillion in the latest list, in consideration of the private sector’s substantial appetite for public works projects.

Meanwhile, a total of 25 projects worth P180.321 billion will be funded directly by the government from budget funds. These projects are topped by the Philippine Identification System project, which is worth P26.26 billion.

“We are expecting infrastructure agencies and contractors to expedite processes and activities” prior to the ban, Mr. Ridon said. “But this will also be dependent on how soon the 2022 General Appropriations Act is signed into law.”

Any delay in the passage of the government’s spending plan for 2022 would cause funding difficulties to ongoing and approved projects, and result in construction delays, he said. “In order to avoid further delays, the budget bill should be enacted by early December.”

Economic growth in the second quarter of 2019 slowed to 5.4% from the 6.0% recorded a year earlier, due to the nearly four-month delay in the 2019 budget, which was signed one month before that year’s midterm elections.

Mr. Ridon said agencies in charge of infrastructure projects need to make projections and plan around any bans, to minimize disruption. They must also study temporarily transferring idled workers to other projects not covered by the ban, in order to minimize the impact on livelihoods.

“A balance needs to be struck for infrastructure funding, because of its potential for providing immediate and massive employment during the pandemic,” he said.

“The setbacks relating to the election ban should have been incorporated into the projections of projects that will be implemented during this period (including) the cost of leasing heavy equipment and finance charges for funding operations and supplies.”

‘PORK-HEAVY PROJECTS’
The 2021 General Appropriations Act authorizes a national budget of P4.5 trillion in 2021, featuring at least P1.1 trillion for public infrastructure.

“The increase to P1.1 trillion of the infrastructure budget in 2021 is conspicuous especially amid so many urgent social and health needs,” IBON Foundation Executive Director Sonny A. Africa said via Facebook messenger. “Like many, we suspect that this is at least partly motivated by politicians eager for ‘multi-purpose facilities,’ roads, bridges, and other pork-heavy projects.”

Senator Panfilo M. Lacson, a long-time opponent of pork barrel public spending, said during the budget deliberations last year that as much as P469 billion worth of projects could represent illegal lump-sum budget items. “It begs the question: Is this an election campaign budget?” he said during one session.

“Politicians are well aware of the 45-day ban on public works spending before the May 2022 elections and there is no doubt that the 2021 budget is designed as a pre-election budget to serve their interests,” IBON’s Mr. Africa said.

The wrangling over the 2021 budget helped produce a leadership change at the House of Representatives, with the coup crystallizing in a rogue session by the conspirators outside the Batasang Pambansa during last year’s budget discussions. Their main grievance was the allegedly uneven distribution of infrastructure funds across the various congressional districts.

“Legislators did their homework early and the pork projects they negotiated with the executive were already built into the 2021 budget submitted to Congress,’ Mr. Africa said.

The spending plan also earmarked at least P16 billion for the so-called “Barangay Development Program” run by the government’s anti-communist insurgency task force. The program rewards barangays that have cleared their territories of Maoist rebels, by funding farm-to-market roads, school buildings, the reconstruction of public facilities damaged by calamities, among others.

Under the communist-clearing program, the Davao region received at least P4.3 billion. The President’s home town, Davao City, received almost 40% of the region’s anti-communist fund, or about P1.64 billion.

‘NO MAGIC BULLET’
Build, Build, Build is not the only way out of the pandemic, Mr. Africa said.

“The economic managers should realize that their BBB is not some kind of magic bullet for development,” he said.

“It didn’t work to boost economic growth before the pandemic. Infra spending increased from 3.9% of GDP in 2016 to 5.4% in 2019 yet, over that exact same period, GDP growth slowed in each and every year from 7.1% in 2016 to 6% in 2019. Average annual job generation also slowed compared to before 2016-2019.”

With the prolonged pandemic, emergency cash assistance and support to small enterprises will provide much more social and economic bang for the buck than big-ticket infrastructure projects, he said. “This can bring about a much more immediate improvement in people’s welfare as well as a much bigger boost to domestic aggregate demand and economic recovery.”

“Every billion pesos spent on imported materials, equipment, machinery, contractors and labor is a billion-peso stimulus to the Chinese, Japanese or other foreign economy and not to the Philippines,” he said.

“There will be no problem of absorptive capacity here as with many government departments because ordinary Filipinos are in such distress that they will certainly spend whatever they get immediately.”

With only a handful of flagship projects being constructed at the tail end of the Presidential term, “it will be difficult to honestly state that this six-year period has indeed been the country’s golden age of infrastructure,” Mr. Ridon said.

With less than 15 months left in office, the only recourse for Mr. Duterte, aside from handing over a solid infrastructure pipeline to his successor, is to take decisive measures in reducing bureaucratic hurdles, he said.

Red tape is one of the biggest stumbling blocks to completing the administration’s flagship program, Mr. Ridon said.

“While we would not want shortcuts, particularly on social and environmental licenses, five years of permitting delay should give us pause (to rethink) what really needs to be done to fast-track implementation,” he said.

Mr. Ridon said the government should “strictly implement timelines and enforce penalties for bureaucratic delay.”

“The speed bump has been with the bureaucracy itself: the countless permits and regulatory setbacks have delayed most of our flagship projects.”

Mr. Duterte last year signed a law granting him special powers to fast-track the processing and issuance of government permits and licenses.

“We have seen the streamlining of permits in (cellular) tower buildings. We should see the same in other infrastructure projects,” Mr. Ridon said.

If construction does not commence within the next 16 months, the administration’s infrastructure program list “will remain a wishlist,” he said.

“Without these projects commencing before June 30, 2022, there is no certainty whether these projects will be continued by the next administration,” he added.

“Resolving this constraint certainly assures dividends to Filipinos in the long term. New infrastructure should decongest traffic in metropolitan areas, allow suburban dwellers to travel efficiently across all points in city centers, and create conditions for sustained economic growth.”

Ultimately, the success or failure of Build, Build, Build will have repercussions beyond this Presidential term, with Mr. Duterte’s anointed successor being judged in the 2022 polls by how well Build, Build, Build turned out, political science professor Maria Ela L. Atienza of the University of the Philippines said via Viber.

“It could be one of the issues against the Duterte administration and the anointed candidate,” she said.

Gov’t hikes award of T-bills as rates drop further

BW FILE PHOTO

THE GOVERNMENT hiked the volume of Treasury bills (T-bills) it awarded on Monday as yields declined across the board on expectations that the central bank will keep benchmark interest rates unchanged this week.

The Bureau of the Treasury (BTr) raised P30.2 billion via the T-bills on Monday, bigger than the programmed P25 billion, as the offering was almost four times oversubscribed. Total tenders reached P97.24 billion on Monday, slightly higher than the P93.9 billion in the previous week’s auction.

The BTr also opened its tap facility to offer P7 billion more in 364-day securities.

Broken down, the Treasury raised P7 billion via the 91-day T-bills, breaching the P5-billion program, as bids hit P23.172 billion. The three-month papers fetched an average rate of 1.278%, down by 2.8 basis points (bps) from the 1.306% seen last week.

It also hiked its award of 182-day debt to P11.2 billion from the programmed P8 billion after the tenor attracted P31.431 billion in tenders. The average yield on the six-month papers likewise went down by 8 bps to 1.549% from 1.629%, previously.

Lastly, the government accepted the planned P12 billion in bids for the 364-day securities, with tenders for the tenor reaching P42.636 billion. The one-year paper’s average rate stood at 1.829%, declining by 3.4 bps from the 1.863% fetched at last week’s auction.

“Strong market presence in auction with rates declining across all tenors. Markets see BSP (Bangko Sentral ng Pilipinas) providing continued anchor for economic rebound,” National Treasurer Rosalia V. de Leon told reporters via Viber after the auction on Monday.

A bond trader interviewed by phone said the BSP will likely continue to keep benchmark interest rates at their current record lows for now, especially with inflation remaining stable.

A BusinessWorld poll held last week showed 15 out of 17 analysts expect the central bank to maintain its overnight reverse repurchase rate or the key policy rate at its record low of 2%.

Analysts said the scope for interest rate adjustment is limited as inflation continued to exceed the annual target and supply issues persisted.

Inflation was steady at 4.5% for the second straight month in April, according to the Philippine Statistics Authority (PSA). However, it still marked the fourth straight month of inflation exceeding the central bank’s 2-4% annual target.

The BSP expects inflation to average at 4.2% this year from 2.6% in 2020, mainly due to supply disruptions in meat products caused by the African Swine Fever outbreak and the uptick in global oil prices.

Ms. De Leon added that the Treasury also continues to reposition its debt portfolio, with a bias for local borrowings.

The BTr wants to raise P170 billion from the local bond market this month: P100 billion via the weekly offering of T-bills and P70 billion in Treasury bonds to be auctioned off fortnightly.

The government is looking to borrow P3 trillion this year from domestic and external sources to help fund a budget deficit seen to hit 8.9% of gross domestic product. — B.M. Laforga

Vista Land sees profit decline on higher interest expenses

VISTA Land & Lifescapes, Inc. said it expects to report P2.1 billion in consolidated net income in the first quarter, declining by 12% from P2.44 billion a year ago due to higher interest expenses.

“Coming from 2020, our preliminary first-quarter headline numbers this year are quite encouraging,” Manuel Paolo A. Villar, president and chief executive officer of Vista Land, said in a statement on Monday.

The company also said total revenues for the quarter went down by 12% to around P8.7 billion from last year’s P9.93 billion, while its EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to P3.9 billion.

Real estate revenues amounted to P6.3 billion, declining by 13% from the P7.2 billion-P2 billion generated in the first three months of 2020.

Meanwhile, revenues from rentals were estimated to reach P2 billion, which is a 14% drop from P2.2 billion.

Vista Land’s optimism for the year ahead rides on the back of the vaccination program.

“In addition, indicators such as overseas Filipinos (OF) demand remains to be resilient with an upward trend as the host countries of our OFs are on their way to achieving herd immunity,” Vista Land Chairman Manuel B. Villar, Jr. said.

“The projected growth of OF remittances this year also bodes well for the company since approximately 55% to 60% of our sales are OF sales,” he added.

In the January-to-March period, sales reservations picked up by four percent, generating P16.1 billion. The company said the growth seen from June last year was sustained.

Vista Land said it will “maintain its stance on minimal land acquisition” by maximizing its existing land bank instead. The company also aims to be “conservative” in its leasing space expansion plans.

“However, the company has the capacity to [fast-track] construction and to launch projects when opportunities present themselves,” Vista Land said.

The Villar-led property firm also said it is looking to offer a real estate investment trust (REIT) for its office spaces.

Shares of Vista Land at the stock exchange went up by 2.3% or eight centavos on Monday to close at P3.56 apiece. — Keren Concepcion G. Valmonte

Vlad the vaccinator: Dracula’s castle lures visitors with COVID-19 jabs

Dracula’s castle in Bran, România — DOROTHEA OLDANI/UNSPLASH

BUCHAREST — Visitors to Dracula’s castle are more likely to find puncture marks in their arms than their necks this month, after medics set up a coronavirus disease 2019 (COVID-19) vaccination center at the Transylvanian attraction. Doctors and nurses with fang stickers on their scrubs are offering free Pfizer shots to all-comers at 14th century Bran Castle, which is purported to be an inspiration for the vampire’s towering home in Bram Stoker’s novel Dracula. Castle staff hope the service will bring more people to the site in Romania’s Carpathian mountains, where tourist numbers have plummeted since the start of the pandemic. Anyone can turn up without an appointment every weekend in May. They also get free entry to the castle’s exhibit of 52 medieval torture instruments. “The idea … was to show how people got jabbed 500-600 years ago in Europe,” the castle’s marketing director, Alexandru Priscu, said. The government has said it wants to vaccinate 10 million of its people by September, but a survey released in April by Bratislava-based think tank Globsec showed Romanians were the least inclined to get vaccinated among the EU’s eastern members. — Reuters

Damosa Land builds up flexible workspace portfolio with IWG

COMPANY HANDOUT

By Maya M. Padillo, Correspondent

DAVAO CITY-based property developer Damosa Land, Inc. (DLI) is stepping up its shared office space venture in partnership with International Workplace Group (IWG), riding on the growth of hybrid work models prompted by the coronavirus pandemic.

“We believe that flexible workspaces will start to make a bigger percentage of our total portfolio,” DLI First Vice-President Ricardo F. Lagdameo said during a May 4 event for the launch of Regus Felcris Centrale, the first IWG franchise center of DLI.

DLI’s Topaz Tower at the Damosa IT Park in Davao City has also been rebranded as the HQ Topaz Tower, making it the first such IWG brand in the Philippines. 

The new 15-storey Damosa Diamond Tower, expected to be fully completed by June, will also be launched as Regus Diamond Tower early next year.

Mr. Lagdameo said professional services firm Sycip Gorres Velayo & Co. (SGV & Co.) will be occupying one floor of the Diamond Tower and they are expected to move in by the end of the year.

“SGV & Co. will occupy at least one floor with a floor area of roughly 1,600 square meters,” he said.

The Diamond Tower, an accredited special economic zone, has over 20,000 square meters of leasable space.

“The office sector has been one of our first projects as a real estate company and office leasing business is one of our most important assets in our portfolio. When we had the chance to work with IWG way back in 2016, we had the opportunity to set up the first and the largest premium flexible workspace in the city,” Mr. Lagdameo said.

In January 2020, DLI and IWG signed an agreement for the establishment of eight franchised IWG centers in the cities of Davao, Cagayan de Oro, and General Santos over the next five years.

Lars Wittig, IWG country manager for Philippines, Thailand, Vietnam, Cambodia, and South Korea, said they see the future of work in the hybrid model.

“Pandemic or not, the demand for flexible workspaces in the provinces has been growing tremendously and that employees have a clear preference for flexible working with its work-life balance benefits, and both local and multinational companies recognize the role it plays in securing and retaining the best talent,” he said.

IWG — whose brands include Regus, SPACES, and HQ among others — has a global network of more than 3,300 work spaces in over 1,000 towns and cities.

Century Properties records lower income after pandemic’s impact

LISTED Century Properties Group, Inc. (CPG) on Monday reported P795.56 million in net income to equity holders for 2020, nearly 38% lower than the previous year’s P1.28 billion due to the pandemic’s impact on sales, collections, and construction activities.

The listed property firm’s Chief Financial Officer Ponciano S. Carreon, Jr. said the results were “within expected levels that the company has prepared for.”

“CPG generated reasonable profits as a result of its diversification strategies in the prior years, demonstrating the industry experience and track record of the company and its management team,” Mr. Carreon said.

The company finished the year with a 22.2% decline in net income to P1.15 billion from P1.48 billion, while the company’s topline fell 24% to P10.84 billion from P14.32 billion in 2019.

“The high-margin segments of affordable housing and office leasing proved to be resilient throughout the year and contributed 93% to the net income compared [with] 43% last year,” Mr. Carreon said.

Office rentals accounted for 58% or contributed P665 million to CPG’s net income, while its affordable housing segment accounted for 35% or P398 million.

“The company’s in-city vertical developments and property management businesses posted marginal contributions, as last year’s quarantine measures hampered construction and streamlined property management operations,” it said.

CPG, through its joint venture with Mitsubishi Corp., will be launching new housing communities under the brand PHirst Park Homes in Cavite, Bulacan, and Quezon by the second half of the year.

The company also said it accelerated its digitalization programs and contactless transaction systems — from sales transactions to home owner unit turnovers — to ensure safe and convenient services.

CPG said it provided 7,200 free COVID-19 (coronavirus disease 2019) tests for its employees and residents in all of its residential, office, retail, and medical properties.

It is also preparing a vaccination program to be held in the second quarter for the company’s employees and their qualified dependents.

“More recently, the company successfully raised P3 billion from its offering of three-year bonds that is intended to refinance existing debt, support the company’s capital expenditures and fund general corporate purposes including working capital,” it said.

It added that the bonds due in 2024 were more than twice oversubscribed from its base offer.

On Monday, its shares at the stock market closed unchanged at 40 centavos each. — Keren Concepcion G. Valmonte

Underwriters puzzle over how to make pandemics insurable

LONDON — When much of the global economy locked down last year, insurers, facing estimated losses of more than $100 billion globally, reached straight for their red pens to strike pandemic cover from all new business policies.

Denis Kessler, chairman and CEO of French reinsurer SCOR, summed it up when he told a recent conference that pandemic risk was like war.

“We exclude war — it’s not insurable,” he said.

But as industries spanning travel and hospitality to construction and manufacturing revert to a new normal, huge demand is causing insurers to figure out how they can put pandemic risk back in policies without making them prohibitively expensive.

One example is the film and television industry.

US company SpottedRisk has devised a model built on years of data on the political and economic environment of film locations in 150 countries, as well as a year’s COVID-19 shutdown data, to come up with a pricing mechanism to cover the risk of production stopping due to the pandemic.

“I had been told by 20-plus industry insiders that it was going to be impossible, but we found a way,” said SpottedRisk chief executive Janet Comenos.

The company, which declined to name its clients, said its insurance policy has enabled 19 independent film and TV productions with budgets of between $1 and $85 million to film at locations across the globe.

The SpottedRisk policy, which typically costs between $50,000 and $80,000 for $1 million of cover, helps to fill a gap in Hollywood where independent filmmakers have bemoaned the lack of cover, and contrasts with Britain, where a government scheme to enable film and TV production to go ahead has no insurer involvement.

While the film industry’s risks are relatively contained over finite time periods, industries such as airlines have much higher potential losses and may prove harder to insure, with many insurers saying extensive cover can only come back if governments provide the same kind of backstop they offer for floods or terror attacks in some countries.

REMODELING
Insurers do not want to be caught out again, having failed to predict the extent to which economies around the world would lock up in order to suppress the virus and keep juddering health systems afloat.

“Our modeling does capture infections and mortality,” said Robert Muir-Wood, chief research officer at risk modeling firm RMS.

“It didn’t capture all the subtlety of how governments respond, driven by the number of vacant ICU (intensive care unit) beds.” RMS is now factoring those in.

Government responses meant that, surprisingly, claims on trade credit, event cancellation and business interruption insurance were higher than for life insurance, industry sources said, because many of those who died may not have held life insurance due to their age.

“A year ago, on the nonlife side we had essentially no pandemic modelling skills,” said Iwan Stalder, head of accumulation management at insurer Zurich, who has since been engaged in broader scenario modelling for pandemics.

Few have returned to offering pandemic cover for nonlife policies, except where events have been scheduled long in advance and insurance bought years ago, such as the Olympics.

Cancellation of the Olympics would result in a “mind-blowingly” large loss of $2-3 billion, insurance sources say.

Instead, insurers have asked governments for help.

Britain, the European Union and the United States are all looking at arrangements in which cover from commercial insurers would be backed by government reinsurance schemes. Such schemes could be less costly than business bailouts but the process of developing them is slow, as governments grapple with the problems at hand.

CREATIVE SOLUTIONS
Some say commercial insurers are capable of doing more.

“The private market has the ability to create solutions,” said Rod Fox, CEO of broker TigerRisk Partners, which helped SpottedRisk find underwriters for its film and TV policy.

Another way to cover COVID-19 could be to repackage pandemic risk as debt through so-called insurance-linked securities (ILS), sharing that risk with investors such as pension funds.

“It became clear to us early in the pandemic that the models which were appropriate prior to COVID were no longer appropriate,” said Scott Mitchell, portfolio manager for life ILS at fund manager Schroders.

“COVID-specific aspects simply weren’t captured…the characteristics of the disease and the response by governments, and political factors that were involved in that.”

Schroders has developed new types of life ILS which take account of factors beyond mortality rates.

Insurers are also working on so-called parametric policies. These automatically pay out a specified amount when a certain trigger is reached, such as a government shutdown.

“If you put a boundary around it, you can price the risk,” said Greg Medcraft, the Organization for Economic Cooperation and Development’s director for financial and enterprise affairs.

“For low probability, high impact events like climate change, cyber, pandemics — you have to have a new way of thinking.”

While pandemics as a whole are hard to cover, some insurers have managed to slice out small parts of the risk, for instance providing travel insurance for short periods, or extra medical insurance for coronavirus patients after they leave hospital.

But policyholders may have to accept more expense in future.

Businesses will likely need to show insurers they are minimising their risks, for instance by requiring a negative COVID-19 test for spectators at live events, said Paula Jarzabkowski, professor of strategic management at City University of London.

And to enable insurers to bring in enough premium to cover pandemic risk, businesses interruption insurance may need to be mandatory, like motor insurance, she added.

“That does ensure that everybody who is prone to the possible risk takes some level of responsibility towards it.” — Reuters

Jason Statham’s Wrath of Man debuts at No. 1 with $8 Million

Jason Statham, Darrell D’Silva, Cameron Jack, and Babs Olusanmokun in Wrath of Man (2021) — IMDB.COM

LOS ANGELES —  Wrath of Man, a heist thriller starring Jason Statham, is leading box office charts with its $8.1 million debut. It’s hardly the start to summer movie season, which typically kicks off the first weekend in May, that many theater owners were hoping would ignite with Marvel’s Black Widow. (Disney recently moved the release of its superhero tentpole starring Scarlet Johansson from May 7 to July 9). At the very least, it’s something to keep film exhibitors afloat until moviegoing picks up with Disney’s Cruella and Paramount’s A Quiet Place Part II at the end of the month, followed by F9, the musical In the Heights and The Hitman’s Bodyguard’s Wife in June. In North America, the box office has returned in fits and starts as COVID-19 vaccination rates rise and major movie markets, such as New York City and Los Angeles, loosen capacity restrictions in theaters. That should help cinemas sell more tickets and, in turn, give Hollywood the confidence to roll out big movies. In the meantime, receipts for Mortal Kombat, Godzilla vs. Kong, and Demon Slayer: Mugen Train have been encouraging. Though its momentum has slowed, Godzilla vs. Kong crossed $92 million in the US this weekend and has a shot of becoming the first pandemic-era movie to surpass $100 million at the domestic box office. Directed by Guy Ritchie, Wrath of Man represents a pandemic anomaly because it’s having a traditional theatrical release. Unlike Godzilla vs. Kong or Disney’s Raya and the Last Dragon, the MGM film isn’t available simultaneously on a streaming service or digital rental platform. If audiences want to see a vengeful Mr. Statham kick ass and take names, the only place to do so is their local theater. Critics were less than impressed (it holds a 66% average on Rotten Tomatoes), but several reviewers pointed out that plot aside, the action was fun to watch unfold on the big screen. Overseas, where Miramax is handling distribution, Wrath of Man has taken in $17.6 million to date. The movie opens wide in China on Monday. —  Reuters

Three QC malls host vaccination sites

THREE ROBINSONS MALLS will host vaccination drives of the Quezon City government.

The Gokongwei-led mall operator said in a statement a vaccination hub was recently opened in Robinsons Magnolia’s expansion wing.

Around 150 medical frontliners, senior citizens and persons with comorbidities from Barangay Kaunlaran received their coronavirus vaccines at the mall, as part of the vaccination drive dubbed as QC Protektado sa Bakunang Sigurado.

“This further strengthens the fruitful partnership between the Quezon City government and Robinsons Malls as it sets to roll out two more vaccination drives in the latter’s Quezon City malls — Robinsons Novaliches and Robinsons Galleria,” the company said.

Banks’ NPL ratio up as soured loans rise

BW FILE PHOTO

NONPERFORMING LOANS (NPLs) held by banks picked up for the third consecutive month in March, reflecting the impact of the coronavirus crisis on borrowers’ ability to repay their debt.

Gross NPLs reached P448.593 billion in March, surging by 80% from the P249.184 billion seen a year earlier and also higher by 4.01% from the P431.266 billion in February, based on preliminary data from the Bangko Sentral ng Pilipinas (BSP).

This brought the NPL ratio to 4.21%, higher than the 2.25% in March last year as well as the 4.08% in February. This is the highest ratio since the 4.25% seen in August 2009.

Loans are classified as nonperforming when they are left unpaid at least 30 days beyond the due date.

They are considered as a risk to banks’ asset quality as borrowers are likely to default on these debts.

“The [NPL] uptick is still mainly because of the impact of the pandemic, particularly on personal incomes and decline of investment opportunities for firms,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

Mr. Asuncion, however, noted that the March NPL ratio, albeit higher, remains “comfortable” versus the levels seen during the Asian Financial Crisis. The NPL ratio peaked at 17.6% in 2002 in the aftermath of the downturn.

As nonperforming loans continued to climb, banks’ loan book shrank by 3.91% to P10.658 trillion from P11.092 trillion a year earlier. It, however, inched up by 0.75% from the P10.579 trillion seen in February.

Past due loans in March climbed 65.7% to P568.974 billion from P343.33 billion a year ago. This brought the ratio to 5.34% against the 3.1% in March 2020.

Meanwhile, restructured loans increased by more than six times (396%) to P232.546 billion from P46.829 billion. These made up 2.18% of total loans from 0.42% a year ago.

RESERVES RISE
As they continued to see more bad debts, lenders hiked their loan loss reserves by 63.7% to P372.72 billion in March from P227.629 billion in the previous year. This brought the ratio up to 3.05% from 2.05%.

Meanwhile, lenders’ NPL coverage ratio — a gauge of allowance for potential losses due to soured loans — dropped to 83.09% from 91.35% a year earlier.

Mr. Asuncion said banks’ nonperforming loans may continue to increase in the next months as the crisis stretches on.

“I do expect the NPL ratio to still rise with the uncertainties of new variants and the toll it can take on employment and investment,” he said.

Mr. Asuncion added that the Financial Institutions Strategic Transfer (FIST) Law could also be beneficial to the banking sector.

Republic Act 11523 or the FIST Law allows lenders to sell their nonperforming assets to FIST corporations. BSP officials said the law could bring down the NPL ratio by 0.63 to 0.71 percentage points. — Luz Wendy T. Noble