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DPWH, DoTr budgets get big boost

Infrastructure agencies will get higher allocations under the 2021 national budget. — PHILIPPINE STAR/MICHAEL VARCAS

THE Budget department submitted to Congress on Tuesday the P4.506-trillion spending plan for 2021, where allocations for the Public Works and Transportation departments were increased significantly as the government hopes an aggressive infrastructure push will drive post-pandemic economic recovery.

The House of Representatives is aiming to pass the national budget in “record time” or before the end of September,  and signed into law by President Rodrigo R. Duterte by mid- to late November.

“We expect the whole September that we will be busy. We will try to pass it in record time,” Speaker Alan Peter S. Cayetano said during the turnover ceremony at the House of Representatives, Tuesday.

“While we’re implementing Bayanihan II this September, October, November, December, we will try to finish the budget before the end of September — a very ambitious schedule.”

With the theme “Reset, Rebound, and Recover: Investing for Resiliency and Sustainability,” the P4.5-trillion budget is equivalent to 21.8% of the gross domestic product (GDP). It is also 10% higher than the P4.1 trillion allocated for this year.

The Development Budget Coordination Committee (DBCC) in its July 28 meeting expects GDP to grow by 6.5-7.5% in 2021, bouncing back from an up to 6.6% contraction this year. Next year’s revenues are projected to reach P2.72 trillion or 13.2% of GDP, while disbursements are seen to rise P4.47 trillion or 21.6% of GDP. The deficit target is at 8.5% of GDP for 2021.

The national budget will focus on “improving healthcare systems, ensuring food security, creating more jobs by investing in labor intensive projects, enabling a digital government and economy as well as help communities cope and prevail in these trying times,” Budget Secretary Wendel E. Avisado said during the turnover of the National Expenditure Program for 2021.

The Department of Education and attached agencies still get the lion’s share with a P754.4 billion budget, 16% higher than the P650.2 billion set aside this year. This will cover the implementation of the free tuition law and the learning continuity plan.

The Department of Public Works and Highways’ (DPWH)budget for next year has been increased by 50% to P667.3 billion, while the Department of Transportation’s (DoTr) budget surged by 70% to P143.6 billion. This as the government pins its post-pandemic recovery hopes on the “Build, Build, Build” (BBB) infrastructure program.

The DBM said a total of P1.107-trillion has been allocated for BBB projects, such as the P157.5-billion Network Development Program, P125.9-billion Flood Management Program, and P106.3 billion for rail transport development.

The Department of Interior and Local Government will get a P246.1-billion budget, up by 4%, while the Department of National Defense’s budget jumped 16% to P209.1 billion.

As the coronavirus pandemic continues, the allocation for the Health department rose only by 14% to P203.1 billion. Mr. Avisado said P71.4 billion has been set aside for the National Health Insurance Program, P16.6 billion for hiring health workers, and P2.5 billion for the procurement of a vaccine for the coronavirus disease 2019 among others.

Also, the Department of Social Welfare and Development budget has been slashed by 53% to P171.2 billion next year, while the Agriculture department’s allocation fell by 6% to P66.4 billion.

More than a third of the national budget or P1.664 trillion will go to the social services sector, up 11% from this year’s allocation. Another third or P1.347 trillion will be funneled into the economic services sector, while P724.2 billion will be allocated to the general public services, P560.2 billion for debt burden, and P210.6 billion for defense.

ACT-CIS Rep. Eric Go Yap said the House Appropriations Committee will work on the immediate passage of the general appropriations bill.

“Layon nating maisaayos agad ang pagpasa ng budget at tiyakin na hindi lamang sa panahon ng pandemya mararamdaman ang tulong kundi sa pang araw-araw na buhay rin ng bawat Pilipino,” he said. “We intend to sustain our economic growth and build on our previous gains while facing the pandemic head-on.”

Senator Juan Edgardo M. Angara said the Finance Committee can hold parallel hearings, provided the committee report is finalized in the plenary until the House version is approved.

“We can start the budget briefings in a few weeks as is the custom in the Senate even as the House is also tackling it,” he said in a mobile phone message.

“As required by the Constitution we cannot finalize the committee report for plenary discussion until the House has passed the budget measure on 3rd reading, usually towards October.”

The 18th Congress is working to avoid a repeat of the nearly four-month delay in the passage of the 2019 budget, which prompted the government to operate on a reenacted budget. — C.A. Tadalan

2021 Spending Priorities

Finance charge cap seen to hurt banks

By Luz Wendy T. Noble, Reporter

THE proposed cap on credit card finance charges will weigh heavily on banks amid the coronavirus crisis, an analyst said.

Despite this, industry groups on Tuesday backed the Bangko Sentral ng Pilipinas’ plan to implement a 24% interest rate limit on credit card installment payments and cash advances in a bid to provide relief to consumers.

Fitch Ratings director for APAC-Banks Willie Tanoto said the move to cap credit card finance charges, if implemented, will be “significant” during a crisis when lenders are experiencing slimmer margins and slower demand.

“The effect of an interest rate cut [on credit cards] will be significant, especially during a time when banks are facing narrower (net interest margins) and lower credit demand,” Mr. Tanoto said in an e-mail.

The Bankers Association of the Philippines (BAP) and Management Association of the Philippines (MAP) expressed support for the BSP’s proposal.

“We welcome this initiative of the BSP and hope that this collective effort of the banking industry will help ease the burden of our credit cardholders during these challenging times,” BAP President and Bank of the Philippine Islands President and Chief Executive Officer Cezar P. Consing was quoted as saying.

“[The] BSP Governor’s (Benjamin E. Diokno) proposal, coupled with the 60-day payment deferment under the Bayanihan to Recover as One Act, will provide big relief to businesses and individuals using credit cards, many of whom have found themselves jobless as a result of the pandemic,” MAP President Francisco E. Lim said in a separate statement.

Mr. Diokno has said some credit card charges rise to “about 40%,” which is “unacceptable.”

“It’s for fairness, and maybe as a result, more will be inclined to use the credit cards with much lower interest rates,” Mr. Diokno said in an interview with ANC on Monday, noting key policy rate or overnight repurchase facility is at a record low of 2.25%.

From a consumer perspective, Fitch’s Mr. Tanoto said lower interest rates will have a limited impact on bringing down risks related to credit card defaults as borrowers face lower income and unemployment.

Mr. Tanoto said banks may tighten approval criteria for credit card applications and trim reward offerings as well.

“A bank could conceivably also make up for some of the lower revenues via other non-finance charges means, e.g. from higher late payment charges, higher loan service fees, etc. Until the BSP formally provides implementation guidelines, it is unclear if these will be similarly restricted,” he added.

Joyce Ong, an analyst at the Financial Institutions Group of Moody’s Investors Service, said the proposal’s impact will be “diluted” for banks with lending that are more focused on large corporates. However, this could dent growth for lenders that are seeking to expand their credit card businesses, she added.

“Banks that have been growing their SME (small and medium-sized) and retail portfolios, including unsecured credit card loans, as part of yield-enhancement and diversification strategies are more affected,” Ms. Ong said in an e-mail.

On the other hand, S&P Global Ratings analyst Nikita Anand said the proposed cap will have a “marginal impact” on credit cards as they only make up about 4% of the industry’s total loan portfolio.

“With the proposed cap, credit card interest rates will be broadly comparable to peers in the region,” Ms. Anand said, noting the caps on credit card charges with different levels are already imposed in Malaysia, Thailand, and Indonesia.

Lending disbursed by big banks totaled P9.28 trillion in June, up by 9.6% from the P8.47 billion a year ago but lower by some P107 billion from the May level, data from the BSP showed.

Credit card loans grew 28.4% to P410.39 billion in June, a slower growth against the 34.3% expansion seen in May when the loan disbursements for the segment hit P418.885 billion.

New rules on corporate debt vehicles OK’d

THE Securities and Exchange Commission (SEC) approved new rules for the creation of investment firms that will buy corporate debt papers of large and medium enterprises.

SEC Memorandum Circular No. 23 sets the guidelines on corporate debt vehicles (CDV), which the regulator says will help companies maintain liquidity amid the coronavirus disease 2019 (COVID-19) pandemic.

A CDV is defined as a closed-end investment company that offers securities in the form of shares or units of participation. It will use the proceeds to invest in bonds, notes, or any other debt papers of corporations and medium-sized enterprises operating in the Philippines.

It may also invest in any corporate debt guaranteed by a domestic corporation or by the Philippine government and/or its agencies, or by multilateral agencies that involve SEC-exempt securities.

“CDVs can play a significant role in the survival and recovery of our economy from the impact of the COVID-19 pandemic by providing large corporations and medium-sized enterprises the necessary funding to meet their obligations, sustain their operations and preserve jobs,” SEC Chairperson Emilio B. Aquino said in a statement.

To be qualified as CDV, it must have a minimum subscribed and paid-up capital of P50 million. If it is part of a group of investment companies with at least a five-year track record, its minimum subscribed and paid-up capital may be P1 million.

A CDV may invest in up to 25% of the net asset value of a corporate debt issued by a single enterprise. In the case of single group entities, a CDV’s investments may reach up to 50%. It will be computed based on the total proceeds of the securities sold within the initial offering period.

Large corporations will be considered as those with total assets above P350 million or total liabilities above P250 million. Medium-sized enterprises will be companies with total assets more than P100 million to P350 million or total liabilities more than P100 million to P250 million.

A CDV is prohibited from investing in securities that it will be issuing, and investing in corporate debt of corporations where any of its directors or officers are members.

Buyers can include banks, registered investment houses, insurance cowmpanies, individuals with an annual gross income of at least P10 million, or individuals that have gross assets of P100 million.

Subscription to CDV securities may be done through an initial public offering with redemption at maturity. A CDV may offer several securities managed as separate asset pools but have the same investment objectives.

The securities may be issued in tranches, with the first tranche issued within six months from the SEC approval. The subsequent tranches must be issued within three months from the submission of the CDV’s current report and updated simplified prospectus to the SEC.

The distribution will be done by a registered mutual fund distributor and certified investment solicitor.

The CDV will not be required to list or trade at an exchange, but it will be required to submit a monthly report to the SEC detailing information such as its net assets, corporate debts acquired and outstanding balance of investments. — Denise A. Valdez

BSP ready to ease policy ‘if warranted’

THE central bank still has room for further easing if the need arises, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said.

“With the policy rate at 2.25% and inflation well within target, there is room for further adjustment in the key rate. Also, there is room to further reduce the reserve requirement,” he said in an online investor conference with Nomura Holdings on Monday.

Mr. Diokno’s statement came after the Monetary Board on Thursday maintained the overnight reverse repurchase, lending, and deposit facilities at record lows of 2.25%, 2.75%, and 1.75%, respectively.

The BSP chief said they went for a “prudent pause” given the manageable inflation outlook and an observed pickup in economic activities as lockdown measures were eased.

The Monetary Board’s decision to keep rates at its fourth policy review for the year followed aggressive easing at the earlier part of 2020 with 175 basis points (bps) of reduction in benchmark interest rates.

“Let me be clear: the BSP is prepared to do more if warranted. The BSP remains committed to a disciplined- and evidenced-based monetary policy making as it pursues its price stability objective,” Mr. Diokno said.

The dovish guidance from Mr. Diokno is unlikely to translate to another policy easing in the near term, according to analysts.

“It’s possible (rate easing) but probably not this year. Compared to other countries, our BSP has done more,” BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas said in a phone call.

He noted the BSP may still be gauging the impact of its previous moves and its impact on the economy given monetary policy takes a while before being felt by the financial system.

The BSP’s decision to keep rates despite its higher inflation outlook for the year of 2.6% from 2.3% is also a sign that a rate cut is unlikely this year, said Mr. Ravelas.

To recall, Mr. Diokno said last week that their monetary policy stance could “probably hold for the next few quarters” as their previous moves were made in anticipation of the trajectory of the crisis.

“I think we’ll have to see what happens in the third quarter GDP (gross domestic product) numbers,” he said, adding this will be a key consideration for monetary policy aside from the impact of Bayanihan II’s implementation and the previous policy moves by the BSP.

The economy slumped into a recession after a 16.5% contraction in GDP in the April to June period following the 0.7% drop in the first quarter as the lockdown halted economic activity. Economic managers expect the third quarter GDP to fare better than the previous quarter as restrictions eased.

Alvin P. Ang, an economist from Ateneo de Manila University, said further easing of policy rates is unlikely in the near-term.

“I doubt that they will cut rates because they’re already very low and lending is not aggressive so far,” Mr. Ang said in a text message.

He said further reduction in the reserve requirement is only in the cards “when liquidity dries up”.

In June, domestic liquidity or M3 rose by 14.9% year on year, a slower expansion compared to the 16.7% seen in May, BSP data showed. This ended three successive months of faster liquidity growth.

Meanwhile, bank lending growth continued to slow for the third consecutive month in June. Outstanding loans disbursed by big banks inched up 9.6% during the month, easing from the 11.3% logged in May.

The Monetary Board is authorized to cut up to 400 basis points of banks’ RRR this year.  — Luz Wendy T. Noble

Razon gets PCC nod to lead Manila Water

THE Philippine Competition Commission (PCC) has approved Trident Water Holdings Co., Inc.’s acquisition of the controlling stake in Manila Water Co., Inc., capturing 51% voting interest in the Ayala-led company.

Trident Water will be acquiring the controlling stake after a subscription of 820 million common shares of stock from Manila Water’s unissued capital stock, the PCC said in a press release on Tuesday.

Trident Water is a subsidiary of Prime Metroline Infrastructure Holdings, Inc. (Prime Infra), a holding firm led by businessman Enrique K. Razon, Jr.

Manila Water’s subsidiary, Philwater Holdings Co., Inc. will also grant proxy in favor of Trident Water over the seller’s preferred shares.

The PCC said that the transaction would not likely lead to a substantial lessening of competition in the market of the supply of water to the east zone concession area.

As the sole water distributor in the area, Manila Water has a captive customer base and no downstream competitors, PCC said.

“As waterworks is a form of ‘natural monopoly’ allowed by law through regulation, East Zone concessionaire Manila Water is subject to the extensive oversight and regulation by the MWSS (Metropolitan Waterworks and Sewerage System) in operating within 23 areas,” the PCC added.

The PCC’s mergers and acquisitions office found that the merged entity will not have incentive or ability to engage in customer or input foreclosure in the market for raw water in the area.

While the review found that there is a vertical relationship between the parties’ notifying group within the water sector before the transaction, PCC said customer or input foreclosure is unlikely “given that the arrangement is meant to service the East Zone even beyond the lifetime of Manila Water’s concession.”

Such foreclosure is unlikely, the PCC said, because operations are highly regulated.

In a disclosure to the stock exchange in March, Manila Water said Prime Infra would own 28% of the firm after its acquisition of 820 million shares priced at P13 each. At the time, Trident Water was yet to be incorporated.

The acquisition will reduce Ayala Corp.’s ownership in Manila Water to 30% from 41%. Public ownership in turn will be reduced to 41% from 58%, while foreign ownership will decline to 9.18% from 10.41%.

Prime Infra is involved in hotels, casinos, mining, infrastructure, power generation and distribution, and port services.

The PCC approval comes after Manila Water disclosed on Monday that it had received regulatory approval to increase its authorized capital stock to P4.4 billion after amendments to its articles of incorporation were cleared by the Securities and Exchange Commission (SEC).

The water provider also said the SEC approved to increase its carved-out shares to 900 million unissued common shares, which are reserved for cash, properties, or assets to carry out its business as approved by the company’s board of directors.

On Tuesday, shares in Manila Water slipped by 2.07% to close at P13.22 each. — Jenina P. Ibañez

Justices dismiss ABS-CBN’s move to block closure order

THE SUPREME COURT dismissed for mootness the petition of broadcast network ABS-CBN Corp. to stop the order of the telecommunications regulator directing it to go off air.

In a statement, the court said the ABS-CBN’s petition against the cease-and-desist order of the National Telecommunications Commission (NTC) was dismissed for being moot as the Congress denied its franchise application last month.

“Because of this supervening event, there is no actual substantial relief which ABS-CBN Corporation would be entitled to regardless of the Court’s disposition of the merits of the Petition,” the court’s public information said in a statement.

It said that 14 justices voted to dismiss the petition except for Associate Justice Priscilla J. Baltazar-Padilla, who was on leave.

The network went off air on May 5 after the NTC issued the order after its 25-year legislative franchise expired on May 4 while its franchise renewal application was pending at the House of Representatives.

The Lower House denied its bid for franchise after several hearings.

The network filed a petition for temporary restraining order or preliminary injunction against the order of the telecommunications regulator.

In its petition, the network said that it was losing P30 million to P35 million everyday that it is off air and would risk the jobs and livelihood of its more than 11,000 employees.

The court in June also dismissed for mootness the quo warranto petition of the Office of the Solicitor General filed in February seeking to nullify the franchise of the network over alleged violations such as allowing foreign investors to take part in its ownership by issuing Philippine depositary receipts to foreigners, among others. — Vann Marlo M. Villegas

Proposal to allow 100% foreign ownership in shipping to crush small local firms — Cebu group

By Arjay L. Balinbin, Senior Reporter

CEBU-BASED shipping group Philippine Coastwise Shipping Association on Tuesday warned that allowing full foreign ownership in domestic shipping will totally wipe out small and medium-sized companies on the island-province.

“What we are really concerned about, since I’m the president of the [association], [is] this will totally wipe out the small and medium-sized companies, which are really the backbone of the island-province,” Paul Rodriguez, who is also the president of the Cebu-based Asian Marine Transport Corp., said in an online forum on Tuesday.

He was referring to the proposed law amending the Public Service Act, which would open the domestic shipping sector to 100% foreign ownership.

“I hope our lawmakers and our government would really seriously consider the position that the inter-island shipping should only be for Filipinos. I still believe that we can do the better… [and] save an essential industry,” he said.

“History will tell that Filipino shipowners are the first responders to our nation’s crises and emergencies. We should not forget that. Just like power and water, the movement of essential goods is carried out by the cheapest mode of transportation, the shipping industry. So let us not forget the sensitivities of our industry,” he added.

The House of Representatives in March approved on third and final reading House Bill No. 78, which distinguishes between a public service and a public utility and will remove the “60-40” rule.

Public utilities were defined in the amendment as electricity distribution, electricity transmission, and water pipeline distribution or sewerage pipeline system. Telecommunications and transportation were removed from the list of public utilities.

At present, public utilities are subject to a foreign equity cap of 40% as provided under the 1987 Constitution.

Maritime Industry Authority (MARINA) Administrator Robert A. Empedrad said his agency has already presented its position on the Philippine Service Act to lawmakers.

“Allowing foreign ships to ply our routes will be beneficial to the public, and it will enhance competition…. We will support the 60-40 ownership. We allow foreign competition but on a 60-40 ownership basis pa rin, ibig sabihin (still, that means) if there will be foreign competitors plying our routes, they will be owned 60% by Filipinos and 40% by foreigners,” Mr. Empedrad said of MARINA’s position on the matter.

Mr. Rodriguez noted the proposed measure is now being deliberated at the Senate.

“With the direction of 60-40 ownership suggested by MARINA, I think it will just be used to skirt around to be honest. I don’t think foreigners would want to have a local partner really…. If they are to send their ships here, they will be running their show. Perhaps this 60-40 ownership will just become really a dummy setup,” he said.

Various business groups and foreign chambers of commerce have expressed support for the bill, saying that it “will provide a concise definition of public utilities, institute a rate-setting methodology that is fair to both investors and consumers, and facilitate greater competition in the public services sector.”

Shakey’s signs deal with Singaporean firm Koufu Group for milk tea franchise

SHAKEY’s Pizza Asia Ventures, Inc. (SPAVI) is joining the bubble tea craze by bringing Singapore’s R&B milk tea brand to the Philippines.

The operator of Shakey’s and Peri-Peri Charcoal Chicken restaurants signed a franchise agreement with Singapore’s Koufu Group Ltd. to sell R&B milk tea, bubble tea and other specialty drinks in the country.

SPAVI is looking to open stand-alone R&B stores and offer R&B products through co-branding in select Shakey’s and Peri-Peri stores.

“We are pleased to bring the R&B milk tea experience to the Philippines… This co-branding initiative is likewise in line with our renewed focus on out-of-store consumption, enhancing sales thru these channels with minimal additional investment and maximizing the use of our existing assets,” SPAVI President and CEO Vicente L. Gregorio said in a statement.

SPAVI noted milk tea is a top-selling product for take-out and delivery, making it a good pairing with its pizza product, which it said is also popular for delivery.

“Though we remain in unusual times and continue to prioritize cash and liquidity as we navigate thru the crisis, we are also working on a number of strategic initiatives, including this one, rolling out a variety of new and exciting innovations for our guests,” Mr. Gregorio added.

R&B is currently present in Singapore, China, United States, Cambodia, Vietnam, Malaysia and Indonesia. Koufu Group, which signed the franchise agreement with SPAVI, also operates food courts and coffee shops in Singapore.

“We adopt stringent evaluation criterions in selecting our strategic partners… We are pleased to have found a strong strategic partner in Shakey’s to expand our footprint in the region,” Koufu Executive Chairman and CEO Pang Lim was quoted in the statement as saying.

SPAVI has allotted P300 million for capital expenditures this year, down from P500 million a year ago, as it tightens its belt to preserve cash amid the coronavirus pandemic.

The company posted a P290-million net loss in the first half, reversing its P389-million net income in the same period last year, due to store closures at the height of the pandemic-related quarantine.

Shares in SPAVI at the stock exchange picked up nine centavos or 1.62% to close at P5.66 each on Tuesday. — Denise A. Valdez

Unable to have live performances, Teatro Europa theater festival goes online

IF THE TIMES were normal, the first Teatro Europa — a festival featuring plays from all around Europe — would have been staged by theater companies in Paco Park, Manila. With the country (and much of the world) grappling with a pandemic, such performances are not possible because of limitations on gatherings and movement. But the show must go on, and go on they will, digitally.

“I think it is a beautiful initiative, especially in these times of the pandemic,” Thomas Wiersing, charge d’affaires of the European Union delegation to the Philippines, said in a digital press conference on Aug. 18.

Teatro Europa will feature seven plays to be performed by six theater groups from universities and colleges in Metro Manila every Friday and Saturday of September on the Teatro Europa Facebook page.

The plays were chosen because they were from European playwrights “who nurtured and shaped the foundations of European culture,” said Mr. Wiersing.

The plays are: The Green Room by Arnošt Goldflam (Czech Republic), to be performed by the Rizal Technological University; Tango by Sławomir Mrożek (Poland), to be performed by MINT College; Robbers by Friedrich Schiller (Germany), to be performed by MAPUA University; School for Wives by Molière (France), to be performed by the University of Makati; Servant of Two Masters by Carlo Goldoni (Italy) and The Trickster of Seville and the Stone Guest by Tirso de Molina (Spain), to be performed by the University of the East; Everyman by Hugo von Hofmannsthal (Austria), to be performed by Arellano University.

Before each performance, an introduction to the play, the cast, and the participating university will be presented.

The performances are also to be produced virtually to ensure that the students will be properly distanced, a feat that presented difficulties in itself, according to MINT College theater director Dennis Marasigan.

“In the final performance, we are also prevented from having all the students in one place… and so we are being very creative in terms of presenting the performance of the play online,” Mr. Marasigan said during the conference.

He added that he’s the “first to admit that it is not exactly theater” as the performers and audiences are not in the same place, but that he hopes “that the performance that you will finally see will, at the very least, communicate the intent and elements of the play.”

“It is inspiring to see how our partner university theater organizations enthusiastically selected from the roster of European plays to interpret and perform online. It is admirable to witness that due to the pandemic they had to become more creative in their performances utilizing online streaming and meeting platforms,” Mr. Wiersing said.

The full schedule of the plays can be found on the Teatro Europa Facebook page. — Zsarlene B. Chua

Century Properties expands commercial leasing portfolio

CENTURY PROPERTIES Group, Inc. (CPG) continues to beef up its commercial leasing portfolio with the P1.9-billion buyout of a Makati-based office building from its joint-venture partner.

In a statement on Tuesday, the property developer said it successfully bought the ownership of Mitsubishi Corp. in Century Diamond Tower, an office building they completed through a joint venture that started in 2015.

Century Diamond Tower is a 41-floor office building accredited by the Philippine Economic Zone Authority with 63,000 square meters (sq.m.) of gross floor area.

The deal would add 25,000 sq.m. of floor area to CPG’s commercial leasing portfolio, raising it to a total of 137,000 sq.m.

“This acquisition effectively builds up CPG’s recurring income assets in line with our strategy of growing the company’s high-margin businesses including office leasing. This has proven to be a resilient sector by nature of longer-term leases,” CPG President and CEO Marco R. Antonio said in the statement.

Mitsubishi was CPG’s joint-venture partner through Century City Development II Corp. The two companies eventually agreed to a buyout, which was approved by the Philippine Competition Commission on Aug. 11. The deed of sale of shares was executed on Aug. 24.

“We thank Mitsubishi for the trust, the fruitful partnership and its invaluable support to this project. The completion of Century Diamond Tower is a milestone for CPG…,” Mr. Antonio said.

“We express our sincerest gratitude to our partner, Century Properties and to all parties involved in the construction and completion of the Century Diamond Tower,” added Masahiro Nagaoka, general manager of Mitsubishi’s Asia Real Estate Development Department.

Part of CPG’s strategy to balance its revenue mix is expanding its commercial leasing and affordable housing segments. The two segments accounted for 42% of its net income in the first half of 2020, up from 29% last year.

“While the current situation has affected office demand, market analysts still see office leasing as one with higher resilience among other real estate sectors,” it said.

CPG’s net income fell 36% to P458.13 million in the six months to June, as consolidated revenues declined 25% to P4.52 billion.

Shares in CPG at the stock exchange ended flat at 35.5 centavos each on Tuesday. — Denise A. Valdez

Mural opened in newly renovated Lagusnilad Underpass

A NEW MURAL called Masigasig na Maynila by the art collective, Gerilya, was officially unveiled on Aug. 24 at the Lagusnilad Underpass which connects Manila City Hall and Intramuros. The mural is part of the city’s Ang Bagong Maynila Program.

Masigasig na Maynila presents the rich history of Manila by highlighting the development of the city and the history of the country such as the Spanish colonial period, the Philippine-American War, World War II, the First Quarter Storm and Martial Law, and the present. The mural also honors the heroes of history and the modern-day heroes — the doctors, nurses, riders, and other frontliners — who lead the fight against the ongoing COVID-19 (coronavirus disease 2019) pandemic.

The underpass links Manila City Hall, Intramuros, the Bonifacio Shrine, and the National Museum of the Philippines.

Gerilya is an artist collective formed in 2008 whose three original members — Jano, Kube, and Zap — all hail from the College of Fine Arts at the University of the Philippines Diliman. Gerilya is involved in a variety of art related activities and experimental ventures such as comics, street art, graffiti animation, fine art exhibitions, and illustration commissions. They classify their works as falling into three main categories: political, socio-cultural, and historical.

The newly renovated underpass has Spanish-themed features designed by architect Antonio Toledo. There are vertical gardens installed at the Manila City Hall and Intramuros entrances of the underpass; an interactive and informational motion sensor and touch screen wall which is accessible to the passersby. The famous Books from Underground book shop will also make a comeback at the Lagusnilad Underpass.

Phinma Education records 30% income growth

The education unit of Phinma Corp. posted a 30% improvement in net income in its fiscal year ending March 2020 as it accommodated a 7% larger volume of students in the last academic year.

In a statement on Tuesday, Phinma Education Holdings, Inc. said it booked a net income of P532 million during the 12-month period, up from P410 million in the last financial year. Revenues from the seven schools in its network stood at P2.9 billion.

The growth was attributed to the surge in freshman enrollment, which expanded 24% year on year to push total enrollment up 7%.

“These numbers reflect the commitment in the work that we are doing and the trust that we have earned from our growing number of students and their parents,” Phinma Education President and CEO Chito B. Salazar said in the statement.

This year, Phinma Education added a new school to its network, Rizal College of Laguna, Inc., which it bought in July. It now owns eight schools in the Philippines, the others being Phinma-Araullo University, Phinma-Cagayan de Oro College, Phinma-University of Iloilo, Phinma-University of Pangasinan and Phinma Upang College of Urdaneta, Phinma-Saint Jude College, Phinma-Republican College and Southwestern University-Phinma.

Phinma Education also operates one school in Indonesia and a training institution in Myanmar.

“We want to reach as many underserved students as we can, not just in the Philippines but in Southeast Asia. To this end, we are establishing a Metro Manila network, opening a branch campus in San Jose City, Nueva Ecija, and looking at two more schools in the Philippines and another in Indonesia,” Mr. Salazar said.

Phinma Education is the largest business in the Phinma group and is being eyed for public listing in two to three years. Other businesses in Phinma’s network are construction, property, hospitality and consulting.

Phinma booked a P38.28-million attributable net loss in the first half of 2020, a turnaround of its P27.84-million attributable net income last year, as it suffered from the effects of the coronavirus pandemic and the subsequent lockdown measures.

Shares in Phinma at the stock exchange slid 10 centavos or 1.11% to close at P8.90 each on Tuesday. — Denise A. Valdez

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