CENTURY Properties Group, Inc. (CPG) is seeking approval from its shareholders to convert three billion common shares into preferred shares with a par value of 53 centavos each, for future fundraising activities.
In a disclosure to the stock exchange Friday, the Antonio-led property developer said its board of directors has approved the reclassification of the preferred shares.
“The company’s reclassification of the three billion common shares to preferred shares is a capital raising activity which the company views as more beneficial to the Company’s interests as there will be no increase in the Company’s debt-to-equity ratio,” CPG said.
The board also amended its previous decision to increase its authorized capital stock to P10.95 billion as part of the issuance of the preferred shares. Its authorized capital stock will now remain at P9.54 billion.
Once the company secures shareholder approval, the amendments will be filed with the Securities and Exchange Commission (SEC).
The company’s board will also determine the terms of the preferred shares once the transaction gets the SEC’s nod.
Preferred shares typically have no voting rights, but are prioritized in the distribution of cash dividends.
CPG has committed to spend P30 billion in capital expenditures over the next three years, as it looks to construct more projects across the country. This includes the expansion of its leasing assets and launch of more residential communities in Pampanga, Quezon City, and Makati.
It targets to book P2 billion in leasing revenues by next year on the back of its aggressive expansion.
Aside from its office and in-city residential projects, the company is also expanding its affordable housing project under the Phirst Park Homes brand.
CPG’s net income rose 63% to P704.56 million in the first half of 2019, on the back of a 24% uptick in gross revenues to P5.45 billion.
Shares in CPG ended flat at 58 centavos each at the stock exchange on Friday. — Arra B. Francia
A BILL seeking to renew the franchise of ABS-CBN Corp. for another 25 years has been re-filed at the Senate.
Senate President Pro Tempore Ralph G. Recto filed Senate Bill No. 981, as the media giant’s franchise is set to expire by end-March 2020.
In the bill’s explanatory note, Mr. Recto described ABS-CBN as the country’s “largest entertainment and media conglomerate in terms of revenue, operating income, net income, assets, equity, market capitalization, and number of employees.”
“Despite the growing popularity of social media, television still remains as a preferred mass medium in our provinces and other far-flung areas,” he said.
“ABS-CBN has remained steadfast in its commitment to reach out to as many Filipinos as possible by delivering their quality core programs closer to our countrymen by taking advantage of emerging broadcast technologies,” he added.
Nueva Ecija Rep. Micaela S. Violago last month filed a similar bill at the House of Representatives.
To recall, President Rodrigo R. Duterte has repeatedly expressed his opposition to the renewal of ABS-CBN’s franchise.
But Presidential Spokesperson Salvador S. Panelo previously said it is up to Congress to decide on the fate of ABS-CBN, not Mr. Duterte.
ABS-CBN reported its attributable net income grew by 89.2% to P856.35 million in the first quarter of 2019, driven by a 24.4% increase in advertising revenues at P5.4 billion.
Meanwhile, a bill was also filed at the House renewing the franchise of ABS-CBN’s telecommunication unit ABS-CBN Convergence, Inc. for another 25 years.
The Lopez-led media giant is focusing on boosting its digital business this year, as it faces the possibility that its legislative franchise would not be renewed. — Vince Angelo C. Ferreras
BANK of the Philippine Islands (BPI) will issue its first two-year, 100-million Swiss franc-denominated, negative-yielding green bond, proceeds of which will be used to fund environmental projects through its Green Finance Framework.
In a disclosure to the local bourse on Friday, the Ayala-led bank said it priced on Aug. 29 its ASEAN green bond amounting to 100 million Swiss francs bonds at 100.040% with a re-offer yield of -0.02%.
This is the first Swiss franc-dominated issue out of the Philippines carrying an annual coupon rate of 0.00%.
The bonds will be issued on Sept. 24 and are due on Sept. 24, 2021.
“The net proceeds from the bonds will be used for the financing and/or re-financing, in whole or in part, of “green” eligible projects, as further described in BPI’s Green Finance Framework,” the statement read.
This is the first ASEAN green bond for BPI and the first rated Philippine green bond in international capital markets.
This is another drawdown from its $2-billion medium term note (MTN) program, the bank said.
BPI Capital Corp., Credit Suisse and UBS are the lead managers for the transaction.
BPI’s Green Finance Framework was established in June, providing guidelines for any green bonds or loans issued by the bank including the evaluation and selection of eligible projects, management of proceeds, and reporting, among others.
The lender established its $2-billion medium-term note program in June last year.
In its maiden drawdown from the MTN, BPI raised $600 million in August last year via five-year senior unsecured fixed-rate bonds quoted at 4.25%.
The Ayala-led lender posted a net income of P7.01 billion in the second quarter, up 46.8% from a year ago.
BPI shares went up by 45 centavos or 0.51% to close at P89.95 apiece on Friday. — BML
THE PESO ended stronger on Friday ahead of the first tranche of the planned tariffs by the United States on some Chinese-made goods on Sept. 1.
The local unit closed at P52.05 against the dollar on Friday, 13 centavos higher than the P52.18-to-a-dollar finish on Thursday.
The peso opened the session at P52.17 against the dollar. Its highest point for the day was logged at P52.04, while its lowest showing was at P52.18 versus the greenback.
Dollars that changed hands on Friday amounted to $989.53 million, lower compared to Thursday’s $1.148 billion.
“The peso strengthened [on Friday] on easing trade tensions after the US said that it would proceed with the scheduled September trade talks and China pledged not to impose any interim retaliatory tariffs,” a trader said in an e-mail on Friday.
The local unit went up as “there’s a bit improvement in the rhetoric between the US and China. We’re mirroring this move,” another trader said in a phone interview.
The US and China signalled the resumption of trade talks as the two countries discussed the next round of negotiations next month.
This, as the US will start collecting 15% tariffs starting this Sunday on more than $125-billion worth of Chinese-made goods.
Another 15% levy will be imposed on some $250-billion Chinese imports starting Dec. 15.
Chinese commerce ministry spokesman Gao Feng was reported by Reuters as saying: “The most important thing at the moment is to create necessary conditions for both sides to continue negotiations,” he said during a weekly briefing, adding that China was lodging “solemn representation” with the United States.
A separate Reuters report on Friday said trade negotiating teams from Chinese and US sides are maintaining “effective communication,” according to China’s Foreign Ministry. — Mark T. Amoguis
THE main index bounced back to end the month at the 7,900 level, riding on the positive sentiment in Wall Street after China said it will not immediately retaliate against the United States’ tariff increase this Sunday.
The 30-member Philippine Stock Exchange index (PSEi) climbed 1.10% or 86.85 points to close at 7,979.66 on Friday. The broader all shares index likewise rose 0.92% or 43.71 points to 4,809.48.
“PSEi ended higher amid trade developments on US-China and month-end window dressing,” Philstocks Financial, Inc. said in a market note.
The stock barometer however ended 0.82% lower on a monthly basis due to volatility brought about by the trade war and fears of a US recession.
China’s commerce ministry reportedly said they would not immediately respond to the latest round of tariffs announced by US President Donald J. Trump concerning $300 billion worth of Chinese goods starting Sept. 1.
The same spokesperson said both sides are now discussing when their trade negotiators could meet next month.
“Equity markets gained confidence following the positive development in the U.S.-China trade negotiations, but concerns over the global economy kept prices near the multi-year peak,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.
With this, the Dow Jones Industrial Average jumped 1.25% or 326.15 points to 26,362.25. The S&P 500 index rallied 1.27% or 36.64 points to 2,924.58, while the Nasdaq Composite index firmed up 1.48% or 116.51 points to 7,973.40.
Asian counters however ended mixed, with Japan’s Nikkei 225 up 1.19% or 243.44 points to 20,704.37. The Hang Seng index eked out gains of 0.01% or 1.36 points to 25,704.86, while the Shanghai Composite slippeed 0.16% or 4.68 points to 2,886.24.
Locally, mining and oil was the lone counter that ended in the red, slumping 0.19% or 16.01 points to 8,250.52. The rest moved to positive territory, led by services which rose 3.07% or 48.32 points to 1,623.75, as shares in telco rivals Globe Telecom, Inc. and PLDT, Inc. gained 5.51% and 4.8%, respectively.
Financials went up 1.29% or 23.39 points to 1,833.28; holding firms gained 1.02% or 80.01 points to 7,922.86; industrial firmed up 0.54% or 59.43 points to 11,126.30, while property added 0.18% or 7.14 points to 3,998.
Turnover rose to P9.74 billion after some 1.31 billion issues switched hands, higher than the previous session’s P8.44 billion.
Advancers trumped decliners, 126 to 72, while 35 names were unchanged.
Foreign investors snapped their seven-day net buying streak as net inflows reached P409.13 million, against P419.63 million in net outflows on Thursday.
1. Retail isn’t an online or offline experience — it’s both. (3:06-3:40)
Since the advent of e-commerce, there’s been a lot of debate on whether retail should remain brick-and-mortar or fully migrate online. For several experts, it’s not an either-or situation. It can exist on both domains as a holistic and effective experience, creating what we call “new retail”.
“[It’s] about bridging the gap… and using user data [from] both online and offline to create an omnichannel that would meet customers’ expectations,” said Aragon.
“It basically lets the business understand what the customer behavior is, their buying patterns, their customer portraits, and making sure that when [they] arrive at that store, they already know what [they’re] going to buy.”
2. Keep track of the best kinds of toys… (4:24-4:43)
This ability to anticipate customers’ needs relies on relevant information from several key factors:
a. Consumer: Knowing your customers locations and habits can tell you a lot about what they need and want. ADD
b. Environment: It’s also important to know the different ways the environment can influence your customers. Knowledge in this area can also get you a step ahead in certain aspects of your business, such as logistics.
c. Business: “Business always keeps on changing, that’s why you always have to adapt [to] the patterns,” said Aragon. “In the US or in China, retail shops are closing. And that’s because the businesses weren’t able to translate what the people really want.”
d. Technology: Invest in technology that can help make your processes easier and more efficient. Also, keep track of the latest apps and tech that customers are using: it can be as simple as joining a platform marketplace to increase sales.
3. … and the marketplace can become your playground. (5:56-6:27, 9:21-9:38)
With both offline and online platforms and tons of information at your fingertips, the possibilities are truly endless. Get creative with the ways that you can integrate these aspects so that you can offer the best experience to your customers.
Consider Alibaba’s TMall. Aside from being able to purchase from its online platform, you can also go to their physical malls and purchase items through a vendo machine using QR codes.
TMall’s neighborhood convenience store is a great example of using data to lessen friction. Its LST system can recommend products to be stocked in a store based on demographics and purchasing behavior of customers around its area.
4. Invest in maximizing the customer journey… (10:28-10:38, 11:51-12:13)
A customer’s purchase journey can be a treasure trove of information, but only if you know where to look. Evaluate the process from start to finish, and you’ll identify key points from which you can unlock great insights.
For instance, Alibaba utilizes machine vision technology while customers consider products to analyze their facial expressions. They also use movement tracking and heat maps to identify which areas in their malls the customers are flocking to.
If these examples seem to advanced, try to revisit available services that you may be taking for granted. While utilizing chatbots and reading customer reviews may seem so simple in theory, they can effectively glean ways to improve your products.
5. … and challenge your network while you’re at it. (11:34-11:44)
Customer experience isn’t the only thing that you can help improve on during the purchase journey. Identify where your network gets involved in the process and think of ways that can help them exceed their current performance.
Part of the data that the Cainiao Network track is the delivery performance of their delivery providers. At the end of the year, they display their rankings to customers while assessing with the bottom-placers how they can improve.
“Business owners have egos; they will say, ‘Why am I ranked 10?’” said Aragon. “So they will try to work better and better everywhere to make sure that all deliveries are properly managed.”
Those interested in applying for the Alibaba eFounders Program can find more information at this link. The upcoming program class will take place from Dec 2 to 12. The deadline for applications is on Oct 7.
1. Being a leader isn’t about you. (1:18-1:47, 14:15-14:24, 15:25-15:36)
JC Bisnar used to believe that being a founder or CEO was all about the fame and fortune. Eventually, he realized that it entailed a more meaningful responsibility.
“As you grow your company, and you realize that you’re taking care of more people and customers or making an impact on the community, you’re going to realize that it’s not about your own success,” he said. “It’s about enabling your people.”
Consider the two paths to success: The diva and the mama-san. You could be the former, hogging all of the attention and profits. Or you could be the latter, staying quietly at the side, pulling strings among various networks for widespread benefit.
“The mama-san takes care of everyone. That’s leadership. The mama-san gets a cut from everyone. That’s a platform business,” he said. “[Investors] don’t see the network effects, the ability to scale, the power that you have when you reach out to all the users and you’re the top mama-san.”
2. Think big from the start. (18:02-18:19, 18:33-19:01)
With this kind of leadership, your startup has the opportunity to touch lives on a grand scale. This is only possible if you dream big about your impact from the get-go.
“The top businesses in the world… they have the ability to think long-term and focus on impact-building. And that’s why in the region, they forego the initial profits or the initial temptation, they stick to their long-term vision, and that’s where they scale.”
One way to support this is through your mode of funding. “Talk to all of the VCs here, that’s cool, but then talk to the regional VCs. Because in the region, they have higher valuations,” said Bisnar. “So it would be better if Filipino startups can peg themselves as a global company rather than just having a presence in the Philippines. Because [investors] would look down on us, that’s the reality.”
3. Remember the value of 9-9-6. (5:26-5:56)
While trying to reach such lofty goals may at times feel overwhelming for you and your team, the focus should be on the positive impact that your startup can create once they’re achieved. Once your team is able to take your mission into heart, the motivation to work even harder will just come naturally.
Take the principle of 9-9-6, which describes how the Alibaba staff often work from 9:00 AM to 9:00 PM for 6 days a week. “It’s not forced… but with the gravity of their goals, that’s the reason why they’ve gotten into this scale,” said Bisnar. “They put that extraordinary effort to reach that extraordinary goal. “So us Filipino founders, you can see the operational excellence in there. Do we just want to confirm to the ordinary corporate rules? Or do we want to put our hearts into it, the extra effort?”
4. Suffer optimistically — and grow stronger — together. (2:58-3:14)
Unfortunately, such noble pursuits can’t stop challenges from being thrown at your startup everyday. While it’s important to keep your team’s morale afloat, it’s just as vital to remain grounded by the reality of your problems.
During this time, train your team members to remain tenacious through difficult times.
“It’s not just about the founders being strong, it’s about the founders developing a strong team,” said Bisnar.
“While you have to be optimistic, leading them to the vision, you also have to pull them down with, ‘Hey, this is the reality. If we want to make this happen, then we better toughen up.”
5. “Feedback is a gift.” (8:37-8:55, 10:18-10:32, 11:08-11:20)
Speaking of being tough, this trait is just as crucial when it comes to giving feedback.
Filipinos are notorious for beating around the bush, crafting long-winded criticism to avoid hurting a colleague.
To turn this around, startups can try the 3-6-1 practice of feedback.
● Round 1: 10 team members will give feedback to each other. The leader will simply facilitate the process.
● Round 2: Each team member gives their feedback of their teammates to the leader.
● Round 3: The team leader gives feedback to each member. During this time, they will also give out scores transparently: Three will receive a 3.75 (“above expectations”), Six will receive a 3.5 (“meets expectations”), and one will receive a 3.25 (“below expectations”).
“The way that you have to explain it to your people is that, ‘Hey, feedback is a gift.’” said Bisnar. “Because oftentimes, the ones who are on the lowest scores, they transform that feedback and become the best versions of themselves.”
Living proof is Brian Wong, whose 3.25 score inspired him to work even harder. Eventually, this drive propelled him to the vice president position at the Alibaba Group.
“Appreciate the feedback because it’s rare where people will care enough to give you real talk that isn’t offensive, but is built enough to help you grow as a person,” said Bisnar.
Those interested in applying for the Alibaba eFounders Program can find more information at this link. The upcoming program class will take place from Dec 2 to 12. The deadline for applications is on Oct 7.
Torre Lorenzo Development Corporation offers premium residences for students
The Philippines has always been regarded as one of Asia’s top intellectual centers, attracting students from all over the world, especially as the country marches towards progress. That potential is what property developer Torre Lorenzo Development Corporation (TLDC) aims to tap with their mission of offering Premium University Residences near the country’s top universities.
“The idea of Premium University Residences came to me after I studied abroad in the 1990’s and observed the disparity between students’ living quarters abroad with what was being offered in Manila at the time,” said TLDC Chief Executive Officer Tomas P. Lorenzo. “I realized this is a gap I can capitalize on. We don’t do dormitories; we do Premium University Residences.”
With a vision to revolutionize university housing, Mr. Lorenzo aims to provide students with a better living experience. The company recognized that the housing options available to students at the time were often cramped, dull, unconducive to learning. And many young people had to endure grueling commutes to get to school.
TLDC goes to great lengths to buck that perception of student housing and to offer Premium University Residences. The company always keeps the welfare and needs of its student residents in mind; from the time a property is chosen, to the project design concept, up to the time the unit is turned over and the student lives in it.
With its commitment to elevating student living, TLDC developed the Student First Program for their Premium University Residences. This is executed through four pillars: Safety First, Studies First, Balanced-Life First, and Convenience First.
The company prioritizes its residents’ safety through 24/7 security, CCTV cameras, RFID with parent notification feature, and its proximity to schools. All of TLDC’s Premium University Residences are located near schools, so students don’t need to worry about commuting far.
TLDC helps students focus on their academic responsibilities by building environments conducive for learning, such as quiet study spaces and areas for group study which are WiFi-equipped.
“We found that learning transcends beyond the classroom and becomes a social activity that occurs in many places. Thoughtful attention to design allows for study time and collaboration,” Mr. Lorenzo said.
Projects are designed in a way that students can fulfill academic responsibilities and a balanced lifestyle. Socializing is a great way to grow and learn about life. To help students develop healthy relationships and take care of their physical well-being, TLDC provides state-of-the-art amenities such as swimming pools, fitness centers, half-courts, function rooms, and sky lounges.
The Premium University Residences are also equipped with convenient services to help make students’ daily lives easier. Services include 24/7 Resident Assistance, Touch Payment facilities for faster transactions, and commercial tenants that serve student needs like bookstores, coffee shops, restaurants, and banks, so residents do not need to go far for their daily needs.
TLDC residences also have an esteemed property management team that is intuitive to the needs of its student residents and ensures the properties’ maintenance and value.
“Furthermore, TLDC’s student residences are a sound investment option for entrepreneurial Filipinos. Investors can snap up a suite or two and then hand them over to the TLDC Property Management team which takes away the headache of unit leasing and ensures that the unit will be well-maintained. We have found demand to be high, both for rentals and for investment,” Mr. Lorenzo added.
Since the 1990s, TLDC has sought to keep the standards of university living higher and higher, moving them further away from regular dormitories. In fact, the company recently won “Best Boutique Developer” at the PropertyGuru Philippine Property Awards 2019.
Torre Lorenzo University Residences can be found near the country’s major universities, such as University of the Philippines Diliman and Manila, Ateneo de Manila University, Miriam College, De La Salle University Taft, De La Salle-College of Saint Benilde, St. Scholastica’s College, University of Santo Tomas, and University of Perpetual Help.
“We know how important study-life balance is to students and their parents, so we make sure that our projects are conducive to these,” Mr. Lorenzo said.
He added, “We strive to stay ahead of the curve by continuing to keep a dialogue with our residents — both students and their parents. We stay abreast with their needs and wishes to make our student residents feel as comfortable as possible while they’re away from home.”
Students, particularly children of overseas Filipino workers and affluent households and those from foreign countries, are proving to be an attractive market for residential property developers, in addition to employees of Philippine Offshore Gaming Operators and the business process outsourcing industry and other professionals.
“Colliers believes that a mix of demand from offshore gaming employees and local professionals is helping sustain the Metro Manila residential market, partly driving demand for other segments such as dormitories that cater to professionals and students,” Joey Roi H. Bondoc, senior research manager at Colliers International Philippines, a real estate consultancy, was quoted as saying in a BusinessWorld report published earlier this year.
A growing number of developers are building high-rise condominiums and dormitories near schools with large student populations, like those in the capital city of Manila and Quezon City and other urban areas, where traffic problems are chronic and intractable.
Torre Lorenzo Development Corp. (TLDC) is one of the most notable players in the student-centric real estate sector today. Established in 2000, it is behind such properties as Torre Lorenzo Tower, 2Torre Lorenzo and Torre Central in Manila. The first two are situated near De La Salle University (DLSU), and the latter is a few minutes away from the University of Santo Tomas.
One of the firm’s latest projects is Torre Lorenzo Loyola, which is currently being built in Quezon City, in close proximity to Ateneo de Manila University, Miriam College and University of the Philippines Diliman. “We are expanding our footprint in this vital space as part of our pursuit to sustain the high standards we have long set for our student accommodations. Our upscale university residence strives to upgrade the quality of life of university students in the Philippines,” Tomas P. Lorenzo, president and chief executive officer of TLDC.
But the residences of TLDC are not only targeted to local students but to foreign students as well, whose numbers steadily grew from 2015 to 2017, according to available government data. Mr. Lorenzo said, “TLDC also wants to capitalize on this growing trend by making our properties the top choice for foreign students pursuing their education here in the country.”
Another property developer, Federal Land, Inc., through its unit Horizontal Land Property Development Corp., launched last year its Quantum Residences project on Taft Avenue in Pasay City. It will consist of three towers, each having 35 floors, and is being constructed on a 5,960-square-meter lot. It is located near a number of big tertiary institutions, including DLSU, Philippine Women’s University and Arellano University.
“The dormitory is for sale. It’s used as a dormitory, but it’s actually units for sale that’s designed for students. That will mostly be studio types,” Carmelo Maria Luza Bautista, president of GT Capital Holdings, Inc., said at a media briefing in August of last year. Federal Land is the property arm of GT Capital.
The development will offer 2,693 units, ranging in size from 21.50 square meters to 49 square meters. There will be studio, one- and two-bedroom types. Aside from students, these units are also aimed at start-up families and young professionals.
Back in 2017, SM Development Corp. (SMDC) unveiled its three-tower development Green 2 Residences in Dasmariñas, Cavite, in order to take advantage of the large student population there. This development will occupy roughly 1.6 hectares of land.
“… Green 2 is our first project in Cavite. We are inspired by the success of our school hub projects, starting with Sun Residences in University Belt, Blue Residences in Ateneo, Green in La Salle, and these have had very strong rental income for our buyers,” Jose Mari H. Banzon, executive vice-president at SMDC, said at a media round table last year.
Three tertiary schools in the Dasmariñas — DLSU Dasmariñas, De La Salle Health Sciences Institute and Emilio Aguinaldo College Cavite — have an estimated population of 20,000 students. According to a BusinessWorld report, SMDC expected that population to grow by 2% annually. SMDC calls areas like this in the city “University Towns.”
“There are two ways of investing in the area and leasing out the business. If you have a unit, you can rent it out to students for a long-term lease, you can serve the college population… We also have an alternative market for short-term lease rates… for faculty members that are visiting, doctors and nursing staff, parents of visiting children, conferences and seminars in the campus,” Mr. Banzon said.
The college years are a very important chapter that completes one’s academic journey. It is a time when students are being prepared for the real world, not only in terms of honing knowledge and skills but also in terms of gaining valuable experiences. For such reasons, a home near a university or college is a helpful asset to a student’s success and growth during his or her stay.
At present, there are many condominiums within Metro Manila located near schools, offering both current and future students a better alternative to dormitories or near-campus housing. It is important, therefore, to wisely choose a condominium that will make one’s college life more productive, more enjoyable, and more memorable.
The location is one of the first things to consider in choosing a condo. As much as possible, a condo that is a few walks away from the school will bring a great benefit to the student, since it cuts the time and energy spent by commuting far from campus.
Security should also be a priority. As much as the school should be a safe space for students, the condominium itself should also have the necessary features that ensure the security of its tenants.
In an article, online real estate marketplace Lamudi Philippines said, “Most condominium buildings have 24/7 security, including guards, CCTV, and other measures to ensure the safety of residents. There are also some projects that implement the latest security technologies, such as RFID access cards to prevent non-unit owners from gaining access to the property.”
Since a condo should make life easier and more efficient for the student, convenience is another very important factor to consider. The condo should have the utilities he or she definitely needs to do schoolworks such as a high-speed Wi-Fi connection and electrical sockets for phones and laptops.
Also, there should be adequate supplies of water, lighting, ventilation, and electricity, among others.
Furthermore, Lamudi Philippines shared that student-centric condos “often have student-friendly facilities on sites, such as study rooms or other quiet areas that will allow students to concentrate on their work. Some properties even have libraries so that students will not have to stay in school for research.”
“Condo buildings also often have commercial establishments at the lobby, such as convenience stores and restaurants that deliver food,” it added. “This provides residents with convenience for their daily breakfast, lunch, and dinner so that they will not have to go far from home just to eat.”
A condominium’s environment is also worthy to note. The real estate marketplace recommends looking into key points such as cleanliness, waste segregation, noise, pollution, and the general population of the building and the community surrounding it.
College life inevitably has its stressful and even exhausting periods. The condo, therefore, should also serve as a place for students to relax, unwind, and recharge. Amenities are another worthy consideration, since condominiums have a lot of them, including gyms, jogging paths, swimming pools, game rooms, courts, landscaped parks, lounge areas, and gardens — all of which will further make a student feel more at home even in somewhere far from home. — Adrian Paul B. Conoza
A CIRCULAR of the Department of Energy (DoE) that gives retail electricity users a choice of suppliers has taken effect, prodding the retail competition and open access (RCOA) scheme forward.
Department Circular No. DC 2019-07-0011 amends various DoE issuances implementing RCOA, which is provided under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) to allow greater competition among power sellers by letting “contestable” consumers — or those whose consumption has reached a set threshold — choose their electricity supplier.
“Consistent with the definition of open access, CCs (contestable customers) are hereby allowed use of transmission and distribution systems and may voluntarily register as a trading participant in the WESM (wholesale electricity spot market),” according to circular, which was published in newspapers on Aug. 14.
The circular, which took effect 15 days after publication, has also been posted on the department’s Web site.
EPIRA mandates that upon initial implementation of “open access,” the Energy Regulatory Commission (ERC) is to allow electricity end-users with a monthly average peak demand of at least 1 megawatt (MW) for the preceding 12 months to be part of the contestable market.
Two years after, the threshold for the contestable market is to be reduced to 750 kilowatts (kW). At this level, aggregators are allowed to supply electricity to contestable customers whose total demand within a contiguous area is at least 750 kW.
After every year, the ERC will evaluate the market’s performance and use findings as basis for gradually reducing the threshold level until it reaches household demand level.
“Consistent with the objectives of EPIRA and its implementing rules and regulations (EPIRA-IRR), and other applicable rules and regulations, a CC shall source its electricity supply requirement from ERC-licensed/authorized suppliers,” the circular states.
The circular also directed the ERC to issue rules necessary to implement the system with 30 calendar days from its effectivity.
The new rules amend some sections of DC2012-05-0005, which states that — consistent with the definition of open access — contestable customers “are hereby allowed the use of the transmission and distribution systems and shall therefore be integrated into the WESM. For this purpose, all CCs shall become members of the WESM as trading participant directly or indirectly…”
Under the new circular, the market operator is directed to recommend to the DoE the appropriate changes on existing WESM rules, retail rules and market manuals to carry out policies for the further development of RCOA.
Retail electricity suppliers (RES) have been awaiting developments in this business segment after the Supreme Court issued a temporary restraining order on the RCOA rules that stopped the lowering of the consumption threshold for contestable customers.
ERC Chairperson and Chief Executive Officer Agnes VST Devanadera had said her office would defer issuing new RES licenses until the court will have lifted its order.
Some retail suppliers have been doing business despite their expired licenses. Those with valid licenses expect theirs to lapse in the coming months.
Officials of the DoE and ERC did not immediately respond to questions on whether the new circular will circumvent the court’s hold order and whether expired licenses will be renewed or new ones will be issued. The DoE did not validate whether the new circular is now in effect.
According to the latest data from the Philippine Electricity Market Corp., the country as of the first quarter had a total of 1,240 registered contestable customers, up from 1,198 as of the previous quarter.
The market recorded a total of 31 registered retail electricity suppliers (RESs), 14 registered local RESs, or affiliates of distribution utilities that sell within their franchise areas.
Majority or 1,119 registered contestable customers were in Luzon and the remaining 121 were in the Visayas. Of the total registrants, 19% were in the 750 kW-999 kW contestability threshold, while 81% were in the 1 MW and above threshold.
The total energy consumption of the registered contestable customers for the first quarter of 2019 stood at about 4,477 gigawatt-hours. This consumption level accounts for about 24% of the combined energy use of the registered contestable customers and the captive customers, or those sourcing power from franchised utilities.
If the new circular is not questioned in court, retail electricity suppliers will be competing for 34% of the 1,884 electricity end-users that have been issued “certificates of contestability” but have not yet registered in the market. — Victor V. Saulon
THE SENATE Finance committee on Thursday grilled state economic officials on low disbursement and revenue leakages as the chamber began hearing the proposed P4.1-trillion national budget for 2020.
Senator Emmanuel Joel J. Villanueva, vice-chairman of the committee, questioned the absorptive capacity of state offices that will receive bigger allocations despite a low disbursement record.
“Among the biggest gainers in this year’s budget across the different sectors you presented this under the NEP (National Expenditure Program) is the communications, road and other transport sector, whose budget is to increase by 27%, equivalent to an additional hundred billion,” Mr. Villanueva said, addressing representatives of the Department of Budget and Management (DBM).
“From P496 billion to P630 billion, however, ito pong mga concerned agencies… have been constantly and consistently showing very dismal utilization performance.”
The Development Budget Coordination Committee was holding a briefing in the Senate on the proposed 2020 national budget, which is 12% more than the P3.662-trillion budget this year and is equivalent to 19.4% of projected gross domestic product (GDP).
Among others, Mr. Villanueva noted that the Department of Public Works and Highways spent just 39.72% of its P752.16-billion allotment in 2018.
Acting Budget Secretary Wendel E. Avisado said the Executive pushed a cash-based budget for 2019 — based on the spending record of state offices and which will force them to disburse allocations within the fiscal year — precisely to address the government’s chronic underspending. Before 2019, obligation-based budgeting provided for validity of funds for up to two years.
“The possible solution that we were looking at is the adoption of a cash-based budgeting system. We wanted to make sure that whatever is funded for the year is really implemented within the year,” Mr. Avisado told senators, while citing “[t]he possible enactment for example of the budget modernization law… to shift to the one year validity of appropriation to encourage spending agencies to utilize their funds within the year and reduce an obligated balances.”
In the 17th Congress that ended on June 3, the budget reform bill secured final-reading approval in the House of Representatives in March 2018, but failed to get Senate approval.
The same hearing saw Senator Panfilo M. Lacson, also committee vice-chairman, citing a P82.181-billion “discrepancy” between the Bureau of Customs’ revenue collection from products brought in from China and the regional giant’s exports to the Philippines, according to a 2017 World Bank report.
Department of Finance officials blamed leakage due to undervaluation and tax evasion.
This, the officials said, is why it is crucial to approve remaining tax reforms.
“The executive branch will continue to be engaged with the legislature in passing the remaining tax reform packages that will generate additional revenue streams for government to fund social amelioration programs,” Finance Undersecretary and chief economist Gil S. Beltran told senators.
Latest available DBM data showed state infrastructure and other capital outlays dropping by 11.7% to P311.4 billion last semester from P352.7 billion in 2018’s first half, and missing a P392.9-billion target for the period by 20.8%.
The government plans to spend P861.2 billion on infrastructure this year, 24% of the P3.662-trillion national budget that was signed into law on April 15, four-and-a-half months late.
The government and private economists blamed the delayed budget for a disappointing 5.5% GDP growth last semester, that compared to an already tempered 6-7% official full-year goal for 2019.
For next year, the Executive branch has proposed P972.5 billion in infrastructure funds, about 12.9% more than this year’s allocation and also 24% of a proposed P4.1-trillion national budget. — Charmaine A. Tadalan
Security should also be a priority. As much as the school should be a safe space for students, the condominium itself should also have the necessary features that ensure the security of its tenants.