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PHL urged to pursue critical mineral deal with United States

Container vans are seen inside the Manila South Harbor, Metro Manila. — REUTERS

By Justine Irish D. Tabile, Reporter

THE PHILIPPINES should pursue a sectoral agreement with the United States with a focus on critical minerals, even as it hopes to forge a free trade agreement (FTA) under President Donald J. Trump’s administration.

“We do have a good chance of being able to pull that (FTA), but I think it would have to be sectoral. It can’t be the entire free trade agreement,” said Jose Manuel D. Romualdez, Philippine ambassador to the US, at the US-Philippines Society press briefing on Tuesday.

“We’ve had some discussions during the first Trump administration on how we would proceed on the FTA, but that obviously was abbreviated, and so we have a chance now to renew that,” he added.

Mr. Romualdez said the idea was floated during his talks with former US Commerce Secretary Wilbur L. Ross, Jr.

“His advice to me was for us to pursue a sectoral type of FTA, like for instance in minerals, which we can offer the US, and then on the aspect of other areas where we can also be helpful, like semiconductors,” he said.

“While the US is trying to bring all of that back into the US, we are one of seven countries that have been identified as trusted allies of the US. So, we can be a recipient of some of that semiconductor industry that’s being moved out of China,” he added.

Asked why critical minerals should be a priority, Mr. Romualdez said this is an area where the Philippines and the US could mutually benefit from.

“It’s one of our natural resources, and part of our wealth. And we could get better prices for nickel, for instance, if we were able to process it here,” he said.

More than 90% of Philippine nickel exports go to China, Mr. Romualdez said.

“They get the entire thing, and they even dictate prices. So, we want to change that. We’ve been pursuing the critical minerals agreement with the US, even during the Biden administration, and we will pursue it even more vigorously this time,” he added.

Earlier this year, the Philippine Department of Trade and Industry said the country would double efforts to secure an FTA with the US.

“The Philippines needs the FTA with the US, and equally important is that the partners within the region, like Japan and South Korea, need us to have an FTA with the US,” said Trade Undersecretary Ceferino S. Rodolfo.

“This is so they can secure a non-China supply chain for certain critical industries, including our minerals for batteries,” he added.

The Philippines is the biggest exporter of nickel ore concentrate, accounting for more than one-fourth of the global supply. Of the country’s total nickel ore concentrate exports, over 98% go to China, while 1% go to Japan. 

Rene D. Almendras, a member of US-Philippines Society, said that the Philippines should push for a sectoral agreement focusing on critical minerals as it will benefit provincial areas. 

“A revitalized mining industry will benefit rural and provincial areas that have been neglected in the past. So, if we’re able to revive that industry, then the benefits will be very, very good in the areas where we most need it,” he said.

“The geographic location of those mines and hopefully those processing facilities will spur development in those areas where it is badly needed. And the Marcos administration is doing a really good job trying to decentralize the economy,” he added.

However, Mr. Almendras said the Philippines would have to first address potential investors’ concerns over power supply.

Aside from a sectoral FTA, Mr. Romualdez said there is a good chance that the US Generalized System of Preferences (GSP) would be reauthorized by the US Congress.

“[There is] a very good chance, actually. There are so many other countries who are working to get that GSP… In the US Congress, while they all agree that the GSP should be given to the Philippines, there’s some issues that each senator or a congressman would like to insert or they would like a bargaining chip,” he said.

“But we’re confident that we will be able to pass it through within this coming Congress.”

The Philippines was a beneficiary of the US GSP, which eliminated duties on about 5,000 or 47% of the total US tariff lines.

However, the Philippines’ eligibility for the US GSP benefits expired on Dec. 31, 2020, which meant Philippine exports to the US that were previously duty-free under the preferential scheme are now subject to most-favored-nation tariffs.

While active, the Philippines was the fifth-largest beneficiary of the US GSP with about $1.6 billion in duty-free exports in 2020. This made up 10% of the total US GSP imports, which amounted to $16 billion.

Earlier this month, the Philippine Exporters Confederation, Inc. lobbied for the reauthorization of the US GSP, saying that it could increase exports, especially of hard goods, by 5-10% this year.

Meralco power rates up in Feb.

A lineman is working on an electric pole in Ermita, Manila. Manila Electric Co. (Meralco) is raising rates this month. — PHILIPPINE STAR/RYAN BALDEMOR

By Sheldeen Joy Talavera, Reporter

CUSTOMERS of Manila Electric Co. (Meralco) face higher bills as the power distributor is set to raise rates for February due to higher generation charge.

The overall rate will climb by P0.2834 per kilowatt-hour (kWh) to P12.0262 per kWh in February from P11.7428 per kWh in January, the company said in a statement on Tuesday.

This will translate to an upward adjustment of around P57 in the total electricity bill of residential customers with a consumption of 200 kWh. Those consuming 300 kWh, 400 kWh and 500 kWh will have to pay an additional P85, P114 and P144, respectively, this month.

Meralco attributed the increase in the overall electricity rate to the generation charge, which rose by P0.3845 per kWh due to higher costs from independent power producers (IPP) and power supply agreements (PSA).

IPP charges increased by P0.8355 per kWh due to lower average plant dispatch, a weaker peso and higher liquefied natural gas terminal fees imposed by First Gas Sta. Rita and Sta. Lorenzo.

Charges from the PSAs also climbed by P0.0837 per kWh.

Meralco said the peso depreciation affected 97% of IPP costs and 61% PSA costs that were dollar-denominated.

The local unit closed at P58.365 a dollar on Jan. 31, weakening by 52 centavos from its P57.845 finish on Dec. 27.

However, these higher costs were offset by the P3.005-per-kWh drop in charges from the Wholesale Electricity Spot Market (WESM). The average and peak demand in the Luzon grid both declined, offsetting the impact of the increase in the average capacity on outage.

IPPs, PSAs and WESM accounted for 29%, 43% and 28%, respectively, of the power distributor’s total energy requirement for the period.

On other components, the transmission charge dipped by P0.0013 per kWh as lower ancillary service charges mitigated the impact of the first of the three monthly collections for the recovery of costs of reserve market suppliers.

The Energy Regulatory Commission (ERC) directed the recovery of the remaining 70% of the reserve market settlement fees incurred in March last year. It will be billed to customers over three months beginning this month.

Taxes and other pass-through charges rose by P0.1289 per kWh, reflecting the impact of higher ERC-approved universal charge for missionary areas of P0.0171 per kWh.

“This month’s rates also reflected a one-time downward rate adjustment of P0.2264 per kWh and another downward adjustment of P0.0023 per kWh, both related to regulatory reset fee adjustments, also ordered by the ERC,” Meralco said

The company reiterated that pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government.

Meralco’s distribution charge has not moved at P0.0360 per kWh since August 2022.

PROPOSED REFUND
Meanwhile, the power distributor is proposing to refund about P19 billion in compliance with the ERC order in December that declared July 2022-June 2025 as a lapsed period that is part of its regulatory reset process.

Meralco wants to implement the refund over 36 months equivalent to P0.19 per kWh for residential customers.

“We filed it early this February and we’re ready to implement it as soon as the ERC approves it. The earliest that we might be able to implement it might be March or April, but we will wait for the ERC directive,” Lawrence S. Fernandez, Meralco vice-president and head of utility economics, said at a briefing.

The company earlier said there was “no completed rate reset” during the period which was supposedly under the fifth regulatory period.

The total proposed amount covers the difference between Meralco’s actual weighted average tariff and the last approved rate of P1.35 per kWh for Meralco from July 2022 to December 2024.

The rate reset process is usually a “forward-looking” exercise that requires the regulated entity to submit forecasted expenditures and proposed projects for the ERC to review and adjust rates.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.

Philippines’ ranking inches up in global corruption perceptions index

PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES saw a slight improvement in its ranking in a global corruption perceptions index by Transparency International, although its score remained well below the global average.   

In the watchdog’s 2024 Corruption Perceptions Index (CPI), the Philippines ranked 114th out of 180 countries with a score of 33 out of 100, up a spot from 115th last year.

This was the Philippines’ best ranking since 2018 when it ranked 99th.

Philippines' Perceived Corruption Rank Improves In 2024However, Manila’s score of 33 is below the global average of 43, and the Asia-Pacific region’s average of 44. A score of 0-9 means “highly corrupt,” while a score of 90-100 means “very clean.”

The Philippines lagged most Asia-Pacific countries in the index, which ranked countries and territories according to the levels of public-sector corruption perceived by experts and businesspeople.

Singapore ranked third in the global index and first in the Asia-Pacific region with a score of 84.

Other Asia-Pacific economies that scored higher than the Philippines in the index include Japan (71), Taiwan (67), South Korea (64), Malaysia (50), Timor-Leste (44), China (43), Vietnam (40), Indonesia (37), Nepal (34) and Thailand (34).

Manila got the same score as Laos and Mongolia, and was higher than Cambodia (21), Myanmar (16) and North Korea (15).

In a statement, Transparency International regional advisers for Asia-Pacific Ilham Mohamed, Yuambari Haihuie and Urantsetseg Ulziikhuu said the index showed governments in the region are “still failing to deliver on anti-corruption pledges” amid a climate crisis.

“After years of stagnation, the 2024 average score for the region has dropped by one point to 44. This is especially devastating considering corruption’s detrimental impact on climate change — the biggest challenge humanity faces,” they said.

“Corruption obstructs environmental policy, hijacks climate financing and hinders the enforcement of regulations and policies, leaving the most vulnerable with little recourse.”

Countries in the Asia-Pacific region were prone to the misuse and theft of funds meant for climate financing programs, Transparency International said in the report.

“The Philippines can improve its standing in the CPI if both the executive and legislative branches of government become transparent in the allocational and use of public funds,” I-Lead Executive Director Zyza Nadine M. Suzara said in a Viber message.

She said the Executive needs to provide more spaces for public participation in procurement, budgeting and auditing and for Congress to make bicameral conference committee meetings open and transparent to curb misuse of state funds.

“We must strengthen political and government institutions. This may also mean modernizing the processes and mechanisms of our institutions through lessening institutional delays and digitalizing processes,” Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said in a Facebook Messenger chat.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies said in a Viber message that a better ranking in the corruption perceptions index “signals stronger governance.”

“(This) could attract more foreign direct investments, particularly in infrastructure, technology and climate-related projects. Companies assess corruption risks when entering markets,” he said.

He cited the need for the government to boost efforts to cut bureaucratic red tape and to enforce tougher anti-bribery laws to boost investor confidence.

Leonardo A. Lanzona, who teaches economics at the Ateneo, said the Philippines moving up a notch in the corruption index is unlikely to influence investor confidence.

“In fact, the lack of a more notable improvement can worsen the situation,” he said in a Facebook Messenger chat. “For economic conditions to improve, the country should exhibit sustained political will, strong leadership and active participation and influence from all sectors of society.”

Transparency International said two-thirds of the countries on the index had a score of below 50.

“The international community and every nation must make tackling corruption a top and long-term priority. This is crucial to pushing back against authoritarianism and securing a peaceful, free and sustainable world. The dangerous trends revealed in this year’s Corruption Perceptions Index highlight the need to follow through with concrete action now to address global corruption,” Francois Valerian, chair of Transparency International, said.

Denmark had the highest score (90) among 180 countries in the corruption index for the seventh straight year, followed by Finland (88), Singapore (84) and New Zealand (83).

Countries experiencing conflict and weak democratic institutions had the lowest scores. South Sudan (8) ranked last, followed by Somalia (9) and Venezuela (10). — J.V.D. Ordoñez

Meralco eyes P215-B capex for 2026–2029

PHILIPPINE STAR/JESSE BUSTOS

MANILA ELECTRIC Co. (Meralco) is proposing a capital expenditure of approximately P215.36 billion for its regulatory period spanning 2026–2029.

Meralco plans to invest P34.39 billion in 2026, P59.50 billion in 2027, P57.91 billion in 2028, and P64.56 billion in 2029, based on its filing with the Energy Regulatory Commission (ERC) published in a newspaper on Feb. 7.

The power distributor said it aims to augment the capacity of its network, relocate assets required for the implementation of government infrastructure and third party-initiated projects, purchase non-network assets necessary for the efficient operation of the electric distribution system, and deploy automation and technology projects.

Meralco is also proposing an annual revenue requirement (ARR) totaling P393.18 billion, with P81.85 billion for 2026 and rising to P114.62 billion by 2029. The ARR refers to the amount the company needs to generate per year to cover its operating and maintenance expenses.

Meralco said that its proposed ARR is partly based on a proposed weighted-average cost of capital of 14.6%, considering the recommendations of global economic consulting firm NERA Economic Consulting, Inc.

At the same time, the power distributor is seeking approval for an annual maximum average price of P1.6871 per kilowatt hour (kWh) for 2026, P1.6899 per kWh for 2027, P1.6894 per kWh for 2028, and P1.6872 per kWh for 2029.

In a stock exchange disclosure on Monday, Meralco confirmed its application filed with the ERC but clarified that the application has not yet been formally docketed and remains subject to approval.

Meralco’s proposal is part of its new application for its fifth regulatory period (5RP), covering the period 2026–2029, which was adjusted from July 1, 2025–June 30, 2029.

Under the Electric Power Industry Reform Act of 2001, or EPIRA, the ERC is mandated to establish and enforce a methodology for setting transmission and distribution wheeling rates for a distribution utility.

Regulated entities such as Meralco are subject to performance-based regulation, wherein they are required to undergo a rate reset process prior to the start of the next regulatory year.

The rate reset process is usually a forward-looking exercise that requires the regulated entity to submit forecasted expenditures and proposed projects for the ERC to review and adjust rates.

At present, Meralco is proposing a refund of around P19 billion in compliance with the order from the ERC last December that declared July 2022–June 2025 as a “lapsed period.”

The ERC has acknowledged that certain years within Meralco’s original 5RP have already lapsed, given the need to address “the complex legal challenges involved, along with prior actions of various stakeholders.”

The commission is targeting completion of Meralco’s 5RP reset within the first half of 2025.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. and Hastings Holdings, Inc. — a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — which has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

PSEi seen reaching 7,600 level this year

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINE Stock Exchange Index (PSEi) could reach 7,600 this year, driven by improving economic conditions and a positive market outlook, according to First Metro Securities Brokerage Corp.

The brokerage’s broader target range for the PSEi this year is 6,600 to 8,600, First Metro Securities said in an e-mail statement on Tuesday.

Factors that could drive market momentum include the possible reduction of stock transaction taxes, which could boost market liquidity, an upgraded credit outlook, and higher domestic consumption ahead of the midterm elections, First Metro Securities said.

“We believe the market is positioned for a turnaround,” First Metro Securities First Vice-President and Equity Research Division Head Reuben Mark A. Angeles said during the brokerage’s recent Trader’s Playbook 2025 online market briefing.

“With inflation easing, economic data improving, and monetary policy becoming more accommodative, the business cycle is shifting from a slowdown to early recovery,” he added.

On Tuesday, the PSEi fell by 0.81% or 49.37 points to 5,987.75. This was the PSEi’s lowest close in 14 months, since the 5,973.78 finish on Oct. 31, 2023.

The broader All Shares Index likewise declined by 0.28% or 10.24 points to 3,607.03.

The PSEi closed 2024 in negative territory as the main index dropped by 0.15% or 10.23 points to 6,528.79.

Year-on-year, the PSEi’s 2024 close was higher by 1.2% or 78.75 points from its 6,450.04 finish in 2023, marking the first time the bellwether index closed higher since 2019.

First Metro Securities said it sees emerging structural growth opportunities with the Luzon Economic Corridor, which positions Clark, Pampanga, as a future economic hub.

It added that investment themes for 2025 include early-cycle recovery, midterm election plays, greater artificial intelligence (AI) adoption, and companies positioned to benefit from AI-driven efficiency gains.

“Despite global uncertainties, First Metro Securities believes the Philippines remains resilient due to its domestically driven economy, ample reserves, and strong geopolitical ties with the US. While Trump’s policies introduce some risks, many of these concerns have already been priced into valuations,” it said.

Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said at the briefing that the country’s gross domestic product growth could reach 6% this year, supported by improving fundamentals.

However, he warned that sustained growth should come from “meaningful investments rather than short-term election-driven spending.”

“We want spending to have a lasting impact, creating jobs and strengthening industries rather than fueling temporary consumption,” he said.

Mr. Peña-Reyes added that the country’s inflation rate is expected to remain within the Philippine central bank’s 2-4% target range.

First Metro Securities offers equity brokerage services and solutions to individuals and corporations. It is backed by First Metro Investment Corp. and Metropolitan Bank & Trust Co. — Revin Mikhael D. Ochave

World War II through the eyes of an unsung hero

CRAIG SCHARLIN at the book launch at the Ortigas Foundation Library.

COLONEL Narciso L. Manzano was the highest-ranking Filipino officer in the US Army under the command of General Douglas MacArthur.

During World War II, he led and was involved in multiple battles and intelligence operations, like the blowing up of the bridge in Calumpit, Bulacan, the defeat at the Battle of Bataan, and the resistance movement that sprang up against Japanese invaders. All this he did as a professional soldier who rose to field officer rank through merit, without having graduated from any military academy. Unfortunately, despite his numerous military achievements and strong reputation among MacArthur and his staff officers, his exploits have been seldom reported in detail outside of the US Army.

This is now being corrected through the publication of a book.

American author Craig Scharlin, who worked closely with Manzano as his secretary and personal assistant, has woven together the Colonel’s accounts of his life before and during the war for his new book, The Manzano Memoirs: The Life and Military Career of Colonel Narciso L. Manzano.

“This book is a compilation of three memoirs that I discovered many years after Colonel Manzano passed away. We didn’t know they existed for a long time,” Mr. Scharlin said during the book’s launch at the Ortigas Foundation Library on Feb. 6.

The book blends the three memoirs: one written by Colonel Manzano in 1948 which was initially handwritten on yellow lined pad paper; another that had been typed out in 1984 when he was already a retired colonel and real estate developer; and the last one by his son, Jaime Manzano, who had written about his family. At the book launch, Mr. Scharlin read a passage on Colonel Manzano’s childhood in Atimonan, Quezon, before he joined the army and became an integral part of the country’s defense campaign.

During the launch, Mr. Scharlin noted that the colonel often gave input that was not listened to by MacArthur’s officers, including about the Battle of Manila (whose 80th anniversary falls this month).

“I know this is a controversial issue with the World War II experts, but Manzano had specific intelligence that the Japanese, if given the opportunity, would have retreated from that. Now, for the first time, people can read that Colonel Manzano said this,” he said.

“Filipinos suffered having to fight a war under the auspices of the Americans. They’re never given the opportunity to fight their own battles, and Colonel Manzano spent his whole war career fighting the war violently, gallantly, and heroically, but always under the shadow of the Americans. General MacArthur, General Willoughby, and General Whitney were always above him, keeping him from making the war probably more successful than it was,” Mr. Scharlin explained.

He added that he had met Mr.  Manzano in 1975, when the colonel was already retired and speaking out against the Marcos dictatorship, which he “took very personally.”

“Manzano fought throughout the entire war and put his life — and the lives of all the men and women who served under him — on the line, and many died. And so he took it as sort of a personal affront that Marcos again took away the freedom of Filipinos,” said Mr.  Scharlin.

Dr. Ricardo T. Jose, war historian and professor emeritus at the University of the Philippines, told BusinessWorld that this marks “the first time many details of the resistance movement are published” — especially with regard to the internal battle that Filipino officers like Mr. Manzano had to fight within the US army headquarters.

In his foreword, he details how Mr. Manzano was “a professional caught in between these different wars and between powerful and clashing individuals.”

“It is high time that the story of this Filipino hero is told, in his own words. It’s a story that we can all learn from,” said Mr. Jose.

The Manzano Memoirs: The Life and Military Career of Colonel Narciso L. Manzano is published by the Ateneo de Manila University Press. It is available at the Ateneo University Press Bookshop in Bellarmine Hall, and its official Lazada and Shopee stores, for P650 (paperback) and P1,850 (hardcover). — Brontë H. Lacsamana

Pangilinan group looking to increase stake in Maya

MPIC CHAIRMAN, President, and Chief Executive Officer Manuel V. Pangilinan — BW FILE PHOTO

BUSINESSMAN Manuel V. Pangilinan said his group is looking to increase its stake in financial technology company Maya Bank, Inc.

“We’d like to, if we can. We’re talking to KKR about that. But that’s all I can say at this stage,” Mr. Pangilinan told reporters on the sidelines of a signing event in Pasig City on Monday.

In January, KKR tapped Goldman Sachs for the possible sale of its minority stake in Maya.

KKR owns more than 20% of Maya. Once the potential sale is completed, Maya’s value could exceed $2 billion.

Maya is owned by Voyager Innovations, Inc. Pangilinan-led telecommunications company PLDT Inc. is Voyager’s main shareholder.

Other existing Maya investors include Tencent Holdings Ltd., International Finance Corp. (IFC), IFC Emerging Asia Fund, IFC Financial Institutions Growth Fund, SIG Venture Capital, EDBI, and First Pacific Co. Ltd.

First Pacific has a 25.6% interest in PLDT, the largest shareholder in Maya. Maya Bank disbursed P68 billion in loans and recorded P39 billion in deposits last year.

Meanwhile, Mr. Pangilinan confirmed that his group will participate in KKR and GIC’s planned stake sale of Metro Pacific Health Corp. (MPH).

“I’m meeting them (global investment company KKR) next week. I’ve gotten some rumors about values, but I don’t know. We’re participating in the purchase of the total of 80%. We’ll probably pick 30%,” he added.

He said that KKR’s sale and his group’s plan to increase ownership could be finalized by the middle of the year.

“If we agree on the price and the process, because I don’t know who the bidders are. We’re picking up some noises, some names. Hopefully, middle of the year,” he said.

In September last year, KKR and GIC tapped Bank of America, Jefferies, and UBS to sell their 80% stake in MPH. The deal could put MPH’s value at $3.2 billion. Metro Pacific Investments Corp. holds the remaining 20% of MPH.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Asian Cultural Council holds fundraising auction

VICENTE MANANSALA’S Dambana, Fernando Zóbel’s Septiembre, a las siete de la tarde, en Tres Juncos, and Vicente Manansala’s Sabungero

Proceeds go to art fellowships

AS PART of its commitment to nurturing Filipino artists, the Asian Cultural Council (ACC) will auction off major artworks on Feb. 22 at the Leon Gallery.

The ACC Philippine Fellowship Program will benefit from the auction, which is now on its 10th year. For this edition, nine Filipino artist-fellows are set to embark on cultural exchange projects in the United States, India, and Japan.

Among this auction’s highlights is Fernando Zóbel’s Septiembre, a las siete de la tarde, en Tres Juncos, a key work from TIME magazine’s 1966 feature on Museo de Arte Abstracto Español in Cuenca, Spain. It is considered by experts to be among Mr. Zóbel’s most important works, said Leon Gallery director Jaime Ponce de Leon.

“This was [on] the cover of last year’s important Fundacion Juan March exhibition in Madrid,” said Mr. Ponce de Leon at a press conference on Feb. 10 in Makati. “Zóbel dedicated his work to the mayor of Cuenca who allowed him to accomplish his dreams to build a museum there.”

The public sale will also have two works by National Artist Vicente Manansala on the block: the Spanish colonial heritage tribute Dambana and the Cubist stained glass-inspired Sabungero, reflecting his depictions of the sacred and the ordinary.

These three works actually form an interesting connection to ACC’s ideals, said Leon Gallery curator Lisa Guerrero-Nakpil.

“In the 1950s, before ACC was ever invented, Mr. Zóbel was like the one-man ACC. He arranged for a scholarship for Manansala,” she said. “Some people think [the Sabungero work] would be an Ang Kiukok, but it isn’t — but Manansala did also take Ang Kiukok under his wing.

“You can see a relationship between all the artists and their tradition [in] what the ACC does today, in the sense that they’re spreading the word through sponsorships, not just affecting the life of one artist, but a whole community, up to several generations of artists.”

GRANTEES
Over 300 artists, scholars, and professionals across various art disciplines — including performing arts, visual arts, archaeology, and curatorship — have received ACC grants since 1963. Some of them have since become National Artists: Jose Joya (Art), Lamberto Avellana (Film), Kidlat Tahimik (Film), Ramon Santos (Music), and Alice Reyes (Dance), among others.

This year, 140 paintings, sculptures, and antiques will be up for grabs for the benefit of nine more grantees. Currently doing their fellowships in New York are dance artist Maria Patricia Bernas, who is pursuing dance movement therapy; visual artist Archie Oclos who is doing art research; dramaturg-educator Anril Tiatco, who is training on dramaturgy; and curator-critic John Alexis Balaguer, who is studying exhibition writing and art criticism. Theater artist Toni Go and playwright-director Joshua Lim So will be joining them in July, for theater-related fellowships.

Meanwhile, theater arts practitioner Aina Ramolete is taking on puppetry studies in Connecticut, while literary artist Padmapani Perez is conducting nature-centered research across India. Already back from his fellowship is conservation specialist Peter John Natividad, who studied techniques used in the mounting and seismic control systems of various museums in Japan.

AUCTION HIGHLIGHTS
Works by many important names in art will go on the block on the Feb. 22 auction. There will be Evening in Shanghai by José Joya, who was also the first-ever Filipino ACC grantee for visual arts.

Anita Magsaysay-Ho’s On the Beach, a masterpiece from her ink-blot series, and Mother and Child, a rare terracotta sculpture, are expected to fetch high prices. Also included are pivotal works by Philippine masters: Hernando R. Ocampo’s Terminal, painted at the start of his Visual Melody period; Ang Kiukok’s Android, from his groundbreaking 1966 Luz Gallery exhibit; and Elmer Borlongan’s Pahinga, exhibited at the Fukuoka and San Francisco art museums.

Two paintings from the collection of the Ford Foundation’s Philippine representative Arthur Hill and his wife Julie, will go under the block for the benefit of underprivileged provincial students who passed the University of the Philippines College Admission Test but do not have the means to afford the cost of living on campus. These are H.R. Ocampo’s A Song for Summer and Ang Kiukok’s Mother and Child.

“These are works of excellent provenance, published, and of such high quality,” said Leon Gallery’s Mr. Ponce de Leon. “Through them, the ACC underlines the importance of sponsorship and mentoring, for the spread and development of Philippine art.”

The works can be viewed at the Leon Gallery starting Feb. 18, 6 p.m. The auction will be held on Feb. 22, with open bidding commencing at 2 p.m. For details, visit leon-gallery.com. — Brontë H. Lacsamana

T-bond yields drop as market eyes BSP cuts

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday at lower rates amid healthy appetite for longer tenors on expectations that the Bangko Sentral ng Pilipinas (BSP) will continue to ease its policy stance.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 10-year bonds it auctioned off on Tuesday as total bids reached P67.611 billion or more than twice the amount on offer.

This brought the total outstanding volume for the bond series to P323.6 billion, the Treasury said in a statement.

The bonds, which have a remaining life of seven years and seven months, were awarded at an average rate of 5.973%. Accepted bid yields ranged from 5.9% to 5.984%.

The average rate of the reissued papers declined by 27.6 basis points (bps) from the 6.249% fetched for the series’ last award on Jan. 14 and was also 77.7 bps lower than the 6.75% coupon for the issue.

This was likewise 2.1 bps lower than the 5.994% quoted for the seven-year bond but 1.3 bps above the 5.96% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

Following the oversubscription seen for Tuesday’s offering, the BTr opened its tap facility window to government securities eligible dealers and market makers to raise up to P5 billion more via the bonds at the same average rate fetched during the auction proper.

The Treasury fully awarded the T-bonds as the average rate fetched was lower than the previous reissuance and also broadly in line with comparable secondary market yields, it said.

The full award came as the offering was met with “good demand,” a trader said in a text message.

“Investors seem comfortable extending duration amid the rate cut outlook,” the trader said.

The average auction yield declined ahead of a widely expected BSP rate cut this week and expectations of further easing amid a benign inflation outlook, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Monetary Board will hold its first policy meeting for the year on Feb. 13 (Thursday).

A BusinessWorld poll conducted last week showed that 19 out of 20 analysts expect the BSP to cut its target reverse repurchase rate by 25 bps on Thursday.

This would mark the central bank’s fourth straight 25-bp cut since August and would bring the policy rate to 5.5% from 5.75% currently.

BSP Governor Eli M. Remolona, Jr. earlier said a rate cut is “on the table” at this week’s meeting.

He said they may slash benchmark interest rates by 50 bps this year as “policy insurance” against risks, with the cuts likely to be done in 25-bp increments each in the first and second half.

Philippine headline inflation stood at 2.9% year on year in January, steady from the December print.

This was within the BSP’s 2.5%-3.3% forecast for the month and its 2-4% annual target.

The central bank expects headline inflation to average 3.3% this year under its baseline scenario.

The BSP said following the data release that it will continue to monitor risks to the inflation outlook and maintain a “measured approach” to policy easing.

Mr. Ricafort added that T-bond rates declined to mirror the recent easing in US Treasury yields following various policy statements by US President Donald J. Trump.

The BTr is looking to raise P203 billion from the domestic market this month, or P88 billion from Treasury bills and P115 billion from T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — Aaron Michael C. Sy

Botero, Banksy win big in Sotheby’s debut Saudi auction

SOCIETY WOMAN by Fernando Botero was sold at the inaugural auction of Sotheby’s Saudi Arabia for $1 million. — SOTHEBYS.COM
SOCIETY WOMAN by Fernando Botero was sold at the inaugural auction of Sotheby’s Saudi Arabia for $1 million. — SOTHEBYS.COM

THE HISTORICAL mud-brick city of Diriyah in Saudi Arabia played host to an unusual crowd on Saturday night: art aficionados, new collectors, and first-time paddle holders melding together to take part in Sotheby’s inaugural auction in the kingdom.

The offerings were as diverse as the crowd, with everything from high-end collectible watches to handbags, paintings, jewelry, and sports memorabilia on sale to the highest bidder. In the end, it may have been Saudi Arabian businessman Amr Zedan who struck the most luck.

Mr. Zedan, who had participated in Sotheby’s auctions on the phone prior to the event, won bids for two pieces, including the oil painting Society Woman by Fernando Botero for $1 million. A new art collector, Mr. Zedan said he plans to add the piece to a portfolio started with his wife.

Society Woman was among the top lots of the night, along with a work from Banksy that fetched $1.2 million. In all, the 117 lots of the evening sold for a total of about $17 million, compared with a pre-sale estimate of $14 million to $20 million.

That’s not a lot of money for a major art auction or in moneyed Saudi Arabia. But Sotheby’s was aiming for a solid if limited start for the kingdom to start catching up with regional neighbors.

The United Arab Emirates has been active on the arts scene for years, with the Louvre Abu Dhabi drawing visitors since 2017 and both Sotheby’s and Christie’s are operating in Dubai. While its art industry is still developing, Saudi Arabia’s economy is the biggest in the Middle East, and its young population of citizens are being encouraged to pursue more creative avenues to help drive non-oil growth.

For Sotheby’s, the event’s stakes were high. The auction house is investing to expand in new countries as it battles a prolonged slump in the art market along with rival Christie’s. Sotheby’s recently sold a minority stake to Abu Dhabi’s sovereign wealth fund, in part to establish a regional partner to help sharpen its focus on the Middle East, said Chief Executive Officer Charles Stewart.

Holding an auction in Saudi Arabia is part of that strategy. “This is the beginning of a new chapter of focus.”

Before the auction started, attendees and registered bidders who spoke to Bloomberg expressed deep curiosity on what items would sell best and noted that prices seemed lower than in auctions in New York and Paris.

“They’re testing the waters,” said Ali Mubarak, who works at a local art house. “It’s hard to know what people want in such a new market.”

The open-air venue, surrounded by palm trees alight in yellow hues and the aroma of cardamom from servings of Arabic coffee, featured 250 seats. Participants came from 45 countries and about a third of buyers were from Saudi Arabia, Sotheby’s said. More than 30% were under the age of 40.

The collection put up for sale was broad by design to give Sotheby’s a chance to “see where the real heat is” and showcase the breadth of auction offerings to new audiences, Mr. Stewart said.

Heba Alali was one participant who traveled from abroad, driving five hours from Bahrain to Diriyah, located just outside the Saudi capital of Riyadh, to bid for the first time after watching auctions online for years.

“I came tonight to finally experience it myself,” said Alali, who was outbid for the Botero painting that was among the night’s top lots. “It’s important to us in the Arab world to see this happening in Saudi Arabia.”

CONTEMPORARY COMPETITION
The strongest interest was for modern and contemporary art, including paintings and ceramics and pieces from the Islamic world.

The battle for the opening piece, an oil on canvas painting by late Lebanese artist Huguette Caland, was among the most heated, with bids over the phone, online and in person. It was ultimately sold over the phone.

A work on paper creation by Picasso and light installation piece by James Turrell were also highly competitive. Leading the offering of Saudi art was a painting by Mohammed Al Saleem, which fetched $660,000, triple the estimate.

As the night moved on to luxury items including sports memorabilia worn by Cristiano Ronaldo, the first major football star to play in a local Saudi league, the crowd at Diriyah slimmed. Bidding was heavy and quick among online participants but saw limited in-person paddle activity.

The Ronaldo items, including four jerseys and signed boots, sold for a total of about $151,000.

In the luxury category, a pair of pendant Graff earrings featuring pear-shaped diamonds sold for $780,000.

TOP LOTS
Ahead of the sale, three pieces carried the highest estimates at $1 million to $1.5 million: a Fernando Botero sculpture, a René Magritte painting, and a Richard Mille timepiece.

In the end, Magritte’s L’État de veille painting, signed and dated 1958, fetched $1.2 million — on par with Banksy’s Subject to Availability, which was created as part of his series of vandalized oil works.

While it wasn’t Botero’s sculpture that ultimately won out, his Society Woman painting earned applause when being won out by a local Saudi bidder. There was competition from three people before Saudi businessman Mr. Zedan ultimately secured the prize at what he called a “good deal.”

“We happened to be at the right place at the right time,” he said. — Bloomberg

Injap Sia pledges P10M to boost PERA investments

EDGAR J. SIA II — PHILIPPINE STAR/ERNIE PEÑAREDONDO

DRAGONFI Securities, Inc. has secured a P10-million matching grant fund after its recent launch as the first personal equity and retirement account (PERA) administrator accredited by the Securities and Exchange Commission (SEC).

The grant, which came from DragonFi Co-Founder and DoubleDragon Corp. (DD) Chairman Edgar “Injap” J. Sia II, seeks to encourage more Filipinos to invest in PERA, the stock brokerage said in an e-mail statement on Tuesday.

DragonFi is the stock brokerage arm of DD. The grant is expected to support 2,000 Filipinos aged 18 to 35.

Each participant who contributes the first P5,000 to their PERA account will receive an additional P5,000 in matching funds, doubling their investment.

DragonFi said the creation of 2,000 new accounts will result in a 35% increase in the country’s overall number of accounts.

It added that the P20-million infusion into PERA, consisting of the P10 million from contributors and P10 million from the grant, will generate a 4% increase in total PERA contributions.

“I hope that through the PERA program and this initial grant, we’re not only paving the way for 2,000 Filipinos to become future millionaires but also igniting a movement that will empower millions of young Filipinos to achieve financial independence within our lifetimes,” Mr. Sia said.

Following the launch, DragonFi aims to introduce its PERA services in the second half of this year.

“With strong support from regulators, businesses, and individual investors, PERA has the potential to reshape the way Filipinos prepare for retirement,” DragonFi Chief Executive Officer Jon Carlo Lim said.

In September last year, the SEC issued Memorandum Circular No. 14 that included securities brokers, investment houses, and fund managers as eligible PERA administrators.

PERA refers to a voluntary retirement saving program on top of existing retirement benefits from the Social Security System, Government Service Insurance System, and employer-sponsored plans.

“DragonFi’s accreditation signals a new chapter in making retirement savings more accessible and efficient for Filipinos,” SEC Commissioner McJill Bryant T. Fernandez said.

“This is a key undertaking that reflects our shared commitment to advancing the Philippine capital market and ensuring the financial well-being of every Filipino,” he added.

On Tuesday, DD shares were unchanged at P10 apiece. — Revin Mikhael D. Ochave

TransUnion Philippines appoints banker Peter Faulhaber as president

TRANSUNION Philippines has appointed veteran banker Peter Faulhaber as its new president and chief executive officer, it said on Tuesday.

“We are excited to welcome Peter and his appointment comes at an important time for TransUnion Philippines as we work to further enhance our services and solutions in a rapidly growing market with surging credit adoption and proliferating digital services,” TransUnion Asia-Pacific Regional President Marie Claire Lim Moore said in a statement.

“As a former user of TransUnion services, Peter is uniquely positioned to understand our business, the local Philippines market and the needs of our customers. He is the ideal leader to help us implement our wider global TransUnion solution set in the Philippines for the benefit of the customers and consumers we serve, and advance our mission of Information for Good,” Mr. Moore added.

Mr. Faulhaber will oversee the Philippine office under the supervision of Ms. Moore. He will also report to the board of TransUnion Philippines.

“I am delighted and honored to join TransUnion, which is dedicated to driving financial inclusion in the Philippines through innovation and insights. Since it was established, TransUnion has enabled a large number of Filipinos consumers greater access to the formal financial system, unlocking more potential and opportunities in businesses and in communities. I look forward to leveraging my skills and expertise in the financial industry to enhance the nation’s financial knowledge and resilience. This will enable consumers to access credit more responsibly and empower them to achieve great things,” Mr. Faulhaber said.

The new TransUnion Philippines CEO has more than two decades of experience in the banking industry, holding various leadership roles in the Philippines, Asia, the United States, and the Middle East, the company said.

He holds a Master of Business Administration degree from INSEAD.

“He joins TransUnion Philippines from HSBC Philippines, where he served as head of Wealth and Personal Banking and held the position of vice-chairman at HSBC Investment and Insurance Brokerage Philippines, which was established during his tenure,” it said.

“Faulhaber has a proven track record of balancing performance growth and risk mitigation, as demonstrated by his dynamic leadership in both areas throughout his career. His experience aligns seamlessly with TransUnion, which is dedicated to supporting growth with insight-driven risk management,” TransUnion Philippines added. — A.M.C. Sy