3 cooperatives sign power deal

September 30, 2019 | 8:14 pm

THREE electric cooperatives in Mindanao have signed an agreement with a non-government group to power the provinces of Davao del Norte, Davao Oriental and Davao del Sur using renewable energy.

The European Union-funded project was signed by Davao del Norte Electric Cooperative, Inc., Davao del Sur Electric Cooperative, Inc., Davao Oriental Electric Cooperative, Inc. and Yamog Renewable Energy Development Group Inc, the National Electrification Administration said in a statement yesterday.

The project will bring electricity to the most remote areas of the country and lead to economic and social development, NEA Administrator Edgardo R. Masongsong said. — Victor V. Saulon

UN agency starts livelihood program

September 30, 2019 | 8:14 pm

THE UNITED Nations Human Settlements Programme has started a P44.2-million livelihood project for Marawi City residents affected by a terrorist attack in 2017.

The Japan-funded project that will run for six months will complement a shelter project it is implementing and will benefit about 4,000 households, the UN agency said in a statement at the weekend.

The project, which features agribusiness and enterprise development and training, will help reintegrate people displaced by the clash between Islamic State-linked terrorists and government troops, it said.

The program will prioritize people from the 20 villages near Lanao Lake who could no longer return to their homes. — Carmelito Q. Francisco

Nationwide round-up

September 30, 2019 | 8:13 pm

Court asked to void early-release rules

EIGHT convicts at the national penitentiary in Muntinlupa City have asked the Supreme Court to void the rules implementing a law on the early-release of inmates for good conduct.

In a petition, the felons questioned the validity of the rules, which disqualify recidivists, escapees, habitual delinquents and convicts of heinous crimes.

They also asked the court to order jail officials to refrain from retroactively applying the exclusions in the law and recompute their time allowances.

The plaintiffs said the exclusion on credit for preventive imprisonment should not be applied retroactively

“The retroactive application of disadvantageous provisions of Republic Act 10592 would work to the prejudice of petitioners and those who are similarly situated,” they said. “The same would preclude the decrease in the penalty attached to their respective crimes and lengthens their prison stay.” — Vann Marlo M. Villegas

Defense chief seeks financing from Australia

MANILA has sought financing from Australia for six offshore patrol vessels that companies there will build for the Philippine military, Defense Secretary Delfin N. Lorenzana told senators yesterday.

“I have just written them a letter that we would like to avail of the financing from the government of Australia and they have not yet replied to me,” he said at a hearing. “Once I get that reply, then I will get exemption from the president,” he said, alluding to President Rodrigo R. Duterte’s order to stop loan deals with countries that had supported a United Nations probe of his deadly war on drugs.

Mr. Lorenzana said Australia, one of those that voted to investigate the human rights situation in the Philippines, was willing to finance the military project.

He also said he was reviewing an agreement that would allow a Chinese-linked company to set up telecommunication towers inside military camps.

The president has ordered all agencies to reject loans and grants from the 41 countries that backed a thorough probe of his deadly war on drugs that has killed thousands. — Charmaine A. Tadalan

Court asked to reverse case dismissal

THE FAMILY murder victim Ruby Rose Barrameda has asked a Malabon City trial court to reverse its dismissal of the parricide case against the victim’s husband.

In a 32-page motion for reconsideration filed on Sept. 25, the family said Judge Edwin G. Larida, Jr. had abused his discretion when ruled out probable cause against the husband, Manuel Jimenez III.

The family said the court “gravely abused its authority and jurisdiction to dismiss the case outright.”

“In the present case, this honorable court, with all due respect, disrespected the Department of Justice’s finding of probable cause for parricide against Manuel Jimenez III,” according to a copy of the pleading.

It cited jurisprudence that an indictment should be given weight if there was no error in the finding of probable cause. The family also asked the judge to inhibit from the case.

The Office of the President, Court of Appeals and Supreme Court had upheld the indictment. Ms. Barrameda went missing for two years until her body was found inside a steel drum dumped at the Navotas fish port on June 10, 2009. — Vann Marlo M. Villegas

Palace says pork ban to protect people

MALACAÑANG on Monday said it would not interfere with the decision of some local governments to ban the importation of hogs, pork and processed pork products from Luzon areas where there has been an outbreak of African swine fever.

“We have to respect them. They are only trying to protect their constituents,” presidential spokesman Salvador S. Panelo told a press briefing at the presidential palace.

Earlier this month, the Department of Agriculture confirmed an outbreak of the disease in the Philippines after reports of an unusual number of pig deaths in backyard farms in Rizal province.

The country has also banned pork and pork-based products from more than a dozen countries including Vietnam, Laos and China. — Arjay L. Balinbin

Nation at a Glance — (10/01/19)

September 30, 2019 | 8:10 pm

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

DoT launches Tourism Decade campaign

September 30, 2019 | 10:32 am

In celebration of the Philippine travel industry’s rise

It is something of an understatement to call the Philippines a tourism hotspot. If the country could only be known for any one thing, it would be the beauty of its natural heritage, the expansive cuisine, and the hospitality of its people.

The age of the Internet and globalization has only cemented the country’s reputation, with many tourists from overseas coming to the Philippines to explore its pristine beaches and sample its exotic food. In fact, a total of 4,852,107 international visitors were recorded from January to July this year alone.

Tourism has proven to be a significant pillar for the country’s economic development, as it grew by in the past 10 years (2009-2010).

“Revenue from arrivals is 24.24% higher versus the same period in 2018, translating to about P298.81 billion in inbound receipts in just the first seven months of the year,” Department of Tourism (DoT) Secretary Bernadette Romulo Puyat said.

For the month of July this year alone, 18.06% more inbound arrivals were recorded than in 2018 for a total 719,057 visitors. Tourism generated an estimated P53.47 billion during that time, the highest month in terms of receipts and 53.64% higher than the same month last year.

Tourist per capita expenditure — the sum of expenditure made by inbound tourists for travel costs and consumption in the country — reportedly rose to $1,263.96 or 40.39% higher than July 2018.

The numbers mark 12.36% increase from the same period of last year’s figures with the peak season months of November to December remaining, according to the DoT.
In 2018, the Philippines welcomed 7.1 million international visitors compared to 2009 where there were only three million foreign arrivals.

The tourism decade and onwards

The tourism industry is booming, and many Filipinos are enjoying its benefits. By 2018, 13% of total employment — 5.4 million jobs — was directly attributed to the tourism sector.

Onward: The Philippine Tourism Decade Exhibition

“The positive growth of the tourism industry today is because of the innovations of the Tourism Act of 2009. The law has enabled the nation to develop the sector to provide inclusive growth to communities all over the country,” said Ms. Puyat.

Signed into law on May 12, 2009 by then-President Gloria Macapagal-Arroyo, the Tourism Act was authored by Senator Richard J. Gordon and 1st District of Bohol Representative Edgardo M. Chatto.

Since the enactment of Tourism Act in 2009, foreign arrivals have more than doubled, growing from three million in 2009 to 7.1 million individuals by the end of 2018. Before the full implementation of the law, in 2009 total employment in the tourism industry was only at 3.9 million.

In celebration of the law’s massive achievement, the DoT will launch a year-long campaign titled “Tourism Decade: Celebrating the Rise of the Philippine Travel Industry with the Tourism Act of 2009,” which will narrate how the RA 9593 has significantly improved the lives of thousands of individuals and communities.

Howard Lance A. Uyking, assistant secretary for branding and marketing communications

The DoT launched the campaign with the release of its latest video, a microsite with mini-documentaries and the opening of the multi-media exhibition, Onwards: The Philippine Tourism in Intramuros. The launch event was held at Museo de Intramuros on September 27, 2019.

Through the stories of the people from the tourism sector, and those that dedicated their lives to making meaningful and memorable experience for visitors, the government hopes to spread awareness about the transformative power of the tourism industry, and how it can lead the country towards growth.

“The Tourism Decade celebration is an event not only to commemorate the law, but also to honor the travel industry’s contributions to the improvement of the lives of the Filipino people, and to bring attention to tourism’s functions as an engine of investment, employment, growth and national development,” Ms. Puyat said in her keynote speech.
“If not for the implementation of Tourism Act, it would have been difficult for us to see the rising impact of the tourism industry on the country’s economic progress over the years, reaching a 12.7% contribution to the nation’s gross domestic product in 2018. This continued growth has proven tourism’s direct linkages to various socio-economic development activities that have been helping improve our people’s quality of life,” she added.

The campaign features the stories of Whang-Od, the century-old Mambabatok of Kalinga; Rambo, the dog tour guide of Batad, Ifugao; the Deafinite Tour Guiding Service of Intramuros for its deaf-friendly tours; the Lake Pandin Women Rafters of San Pablo, Laguna; and Bobby Adrao, an advocate for whale shark protection in Donsol, Sorsogon.
Further down south, the campaign also puts the spotlight on two Puerto Princesa locals: Angelo Cayabo, a former dishwasher who established dolphin-watching tours in Palawan; and Eva Valledor, founder of Binuatan Creations, a successful sustainable community livelihood program famous for their weaved products. It also covered the experiences of the Loboc River Choir in Bohol; Laida Escoltura, a known home cook from General Luna, Siargao; and the indigenous T’Boli people of South Cotabato who exemplify how cultural tourism can enhance Philippine living traditions.

Throughout the campaign, DoT plans to add more stories about more people who will forever be part of its more fun tourism story. There will be an exhibition for the public to explore the impact of the act in more detail called “Onwards: The Philippine Tourism Decade Exhibition” which has two parts: the outdoor and interactive installation at Plaza Roma; and the indoor exhibition in San Ignacio Church, both located inside Intramuros’ historic walls.

Today, Sept. 30, a preview of the exhibition is open while DoT continues to collect stories nominated by different regions which will also be featured in the exhibition.
Featured at the indoor exhibition are portraits of the DoT tourism workers and documentary shows.

Syngenta: Stopping the march of the Fall Armyworm

September 30, 2019 | 10:05 am

Since it landed in Africa from its native South America in 2016, Spodoptera frugiperda, or the lepidopteran Fall Armyworm (FAW) has quietly eaten a path to Asia. The continent’s favorable sub-tropical environment and crops provided a steady medium of growth. It enabled this insect horde to reach India, Thailand, Vietnam, Indonesia and China– the second largest producer of corn in the world. In the Philippines, the pest has been spotted in Cagayan Valley– the country’s top corn area. Government and agricultural companies are coordinating and monitoring the spread of this pest before it affects the nation’s production.

Spodoptera frugiperda, the Fall Armyworm. Note the distinct upside down Y on the head.

The Philippine Statistics Authority reports that the country produces more than 7.5 million metric tons of corn annually for both human and livestock feed use. About 20% of national corn production comes from Cagayan Valley thus making Fall Armyworm a concern for farmers. From there, it can spread to other corn growing regions. However, FAW can also feed on other crops even if there is no corn.

An adult FAW moth lays an average of 1500 eggs in its lifespan, in clusters of 150 to 200 eggs on plants. Once hatched, the larvae feed at any crop stage, in daytime and in nighttime, with the most damage done during the pre-tasseling stages of corn. Larvae attack inside the whorls and destroys the developing tassel. It also burrows into the side of the corn cob and damages kernels. Larva can also transfer from plant to plant if carried by the wind. A FAW attack reduces grain harvest and quality, with yield losses potentially as high as 60%.

It is critical for farmers to properly identify this pest before implementing any control measures. To spot FAW infestation farmers should conduct regular scouting of corn fields at three to four weeks after emergence and through to the seventh week. The Fall Armyworm can be recognized through its dark head with distinct upside-down Y in the front. Based on experience of other countries where the pest appeared, farmers can employ different cultural practices to limit its impact. These include: Deep ploughing before sowing to expose pupae to predators; clean cultivation and balanced use of fertilizers; timely planting or sowing, to limit plant stages susceptible to FAW attack; planting of maize hybrids with tight husk cover to minimize ear damage; use of pheromone traps. Chemical control can also be done if pest damage is observed at 5%. Available Bt-corn varieties may also exhibit some form of suppression or resistance to Fall Armyworm but this could only be temporary.

Syngenta’s Virtako communication poster informing farmers about FAW control

Syngenta Philippines proposes a combination of cultural practices, durable corn varieties and crop protection products to control FAW. As a true global leader in crop protection, Syngenta is now the first to secure approval for control versus Fall Armyworm in the Philippines. Backed with its proven performance against lepidopteran pests, Virtako is Syngenta’s first offering against FAW. The product can be applied twice throughout the corn production cycle. First application is at three to four weeks (or seedling) stages at a rate of 2 sprays with 150 milligrams per hectare. Second application within V7 (28 days) through to VT (55 days) at the same rate. Virtako gives the farmer an immediate means to control this economically ruinous pest in his field.

In terms of overall outlook, there is no certainty on how FAW can quickly spread across the Philippines. Syngenta Philippines commits itself to the proactive protection of the livelihood of the Filipino farmer. The company pledges to launch other crop protection products and new seed varieties that are suitable to control this threat.

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Poll: Base effects to slow Sept. inflation

September 30, 2019 | 12:33 am

By Luz Wendy T. Noble

INFLATION this month could turn out to be the slowest since mid-2016 due to “base effects” from the year-ago nine-year-high 6.7%, according to a poll of 16 economists, who also cited opposing pressures from oil price volatility after the Sept. 14 attack on Saudi oil facilities and lower pork prices amid the African swine fever (ASF) outbreak.

The poll bared an estimate median of 1.1% and a 1.28% average for September inflation, which the Philippine Statistics Authority will report on Oct. 4.

If realized, both median and average would mark September with the fourth straight month of easing.

The poll’s median and its average would also be the slowest since May 2016’s 0.9%.

The overall rise in prices of widely used goods clocked in at 1.7% in August — itself the slowest in nearly three years — and at a nine-year-high 6.7% in September last year that was sustained in October.

The Bangko Sentral ng Pilipinas (BSP) targets inflation to clock in at 2-4% in 2019 and 2020. In its latest policy review on Sept. 26, the central bank’s Monetary Board further trimmed its forecast average inflation for 2019 to 2.5% from 2.6%, and retained the 2.9% forecasts for 2020 and 2021.

In its July meeting, the interagency Development Budget Coordination Committee also adjusted its inflation projection this year to 2.7-3.5% from 3-4% previously, but maintained the 2-4% annual projection for next year until 2022.

“Inflation likely to tank further to 1.1% mainly on base effects in the index heavy food basket. Supply-side pressures forced the 2018 inflation pop and, with these bottlenecks addressed, we’ve seen inflation decelerate rather quickly,” said ING Bank N.V. Manila Branch Senior Economist Nicholas Antonio T. Mapa.

ANZ Research Economist Mustafa Arif said in an e-mail that while hikes in food and fuel prices could have exerted upward inflation pressures from the preceding month, “high base effects will cause the annual rate to decline.”

Six analysts said upward pressures from the Sept. 14 attack on Saudi Aramco’s two processing facilities — which had immediately halved the kindom’s output and cut world production by five percent — should be manageable since production is expected to be fully restored early this week.

“Transportation made the biggest upward move due to the attack on the Saudi Aramco facility. But it will be temporary since the Saudis believe that they can bring it back to normal production by the end of this month,” University of Asia and the Pacific Senior Economist and professor Victor A. Ebola remarked, while Security Bank Corp. Chief Economist Robert Dan J. Roces said “… we do not see a repeat of the inflationary push similar to last year as production levels are slowly normalizing in Saudi Arabia.”

On the other hand, “[h]igher fuel prices are an important upward contributor, with higher global oil prices flowing through to the consumer,” Moody’s Analytics Economist Katrina Ell said, while Jonathan Ravelas, BDO Unibank, Inc. chief market strategist, said September inflation “could have been lower” amid opposing pressures from oil and pork prices.

“Demand for pork has slightly declined and consumers may have substituted [pork with] other meat products and have preferred other food items, resulting in an uptick of these particular alternatives’ annual percentage price increases,” UnionBank of the Philippines, Inc. Ruben Carlo O. Asuncion said.

For Rizal Commercial Banking Corp. Economist Michael L. Ricafort, “[a]s of this point, the adverse effects of the African Swine Fever on both hog production and pork prices remained negligible in terms of the effects on the country’s overall inflation and economic growth.”

NCR water rates to increase

September 30, 2019 | 12:32 am

By Victor V. Saulon
Sub-Editor

CUSTOMERS of the two water concessionaires servicing the National Capital Region (NCR) will see an increase in their bills — to take effect in mid-October — as the water regulatory office factors in the impact of the weakening of the peso against foreign currencies, largely the US dollar and the Japanese yen.

In a notice pushed in newspapers, Manila Water Company, Inc. said the foreign currency differential adjustment (FCDA) for customers of the ease zone will result in a P0.17 per cubic meter (/cu.m.) increase in the fourth quarter over the rate in the previous quarter.

Separately, Maynilad Water Services, Inc. announced an FCDA adjustment equivalent to a P0.02/cu.m. increase quarter-on-quarter in the tariff mechanism to recover or compensate for fluctuations in foreign exchange rates.

“Gains and losses can arise from the payment of concession loans and foreign-currency-denominated debt whose proceeds are used to improve services,” Patrick Lester N. Ty, chief regulator of Metropolitan Waterworks and Sewerage System (MWSS), said in a statement.

The adjustment — by the MWSS Board of Trustees on Sept. 26 — will take effect 15 days after publication or on Oct. 13.

For Manila Water, the impact of the fourth-quarter FCDA adjustment is a P0.93 per month increase for those consuming 10 cu.m. or less, except lifeline customers, who are exempt from the quarterly charges.

The monthly bills of those consuming 20 cu.m. per month and 30 cu.m. per month will increase by P2.06 and P4.20, respectively.

Manila Water’s approved FCDA adjustment is 2.43% of its average basic charge of P28.52/cu.m. or P0.69/cu.m., higher by P0.17 per cu.m. than the P0.52 per cu.m. in the third quarter.

Meanwhile, Maynilad residential customers using 10 cu. m. or less will see their monthly bills go up by P0.09. Those consuming 20 cu.m. per month can expect an increase of P0.34, while those using 30 cu.m. will have an increase of P0.70 monthly.

Maynilad’s FCDA adjustment is negative 0.35% of its 2019 average basic charge of P36.24 per cu.m. or negative P0.13/cu.m. This is an increase of P0.02/cubic meter compared to P0.15 in the third quarter.

Ayala-led Manila Water provides water and wastewater services to the east zone concession areas covering the municipality of Pateros, as well as the cities of Makati, Mandaluyong, Pasig, San Juan, Taguig and Marikina. It is also serves the southeastern parts of Quezon City, as well as Sta. Ana and San Andres in Manila.

In the province of Rizal, the company serves the city of Antipolo as well as the municipalities of San Mateo, Rodriguez, Cainta, Taytay, Teresa, Angono, Baras, Binangonan and Jala-jala.

Maynilad provides water and wastewater services to residents in most parts of Manila; northern and western parts of Quezon City; western parts of Makati City; as well as the cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Muntinlupa, Navotas, and Malabon in Metro Manila.

It also serves the cities of Cavite, Bacoor and Imus, as well as the municipalities of Kawit, Noveleta and Rosario in the province of Cavite.

No sign Duterte will end ban on open-pit mining — spokesman

September 30, 2019 | 12:31 am

By Arjay L. Balinbin
Reporter

PRESIDENT Rodrigo R. Duterte is not likely to lift the ban on open-pit mining — a method widely used by miners here and abroad — anytime soon, his spokesman said on Thursday last week.

“I think he will maintain the ban. Ayaw niya ng open-pit mining. ‘Yun ang kanyang policy… (He does not like open-pit mining, that is his policy),” Presidential Spokesperson Salvador S. Panelo said in an interview.

Antonio N. Apostol, officer-in-charge of the Mines and Geosciences Bureau’s Lands Geological Survey Division, told reporters at the sidelines of a Sept. 24 news conference that “there is a lot of pressure because business people have a lot of influence, and it’s a political decision.”

Rodolfo L. Velasco, head of the MGB’s Mine Safety, Environment and Social Development division, said in the same conference that the lifting of the ban will depend on the recommendation of the current environment secretary, Roy A. Cimatu.

The ban on open-pit mining was imposed by the late former Environment Secretary Regina Paz L. Lopez, an environmental advocate, in April 2017. She was supported by Mr. Duterte, who rejected a proposal by the Mining Industry Coordinating Council (MICC) to lift the ban in November 2017.

Mr. Velasco said that the ban has had a significant negative impact on the attractiveness of the country for mining investors.

He noted that the most significant project that was put on hold is the $5.9-billion Tampakan project in South Cotabato, touted as one of the largest gold prospects in the world, which Ms. Lopez rejected in 2016. Its operator is Sagittarius Mines, Inc. (SMI) which was able to secure declaration of mining feasibility and was steps away from starting operations.

Mr. Apostol said that open-pit mining is safer than underground mining, and that the government can easily regulate mining companies using this method since work is very visible.

Rocky G. Dimaculangan, vice-president for communications of the Chamber of Mines of the Philippines, was sought for comment on Sunday but had yet to reply as of early evening.

Meanwhile, Albay 2^nd District Representative Jose Ma. Clemente S. Salceda, chairman of the House of Representatives Ways and Means committee, reiterated to reporters late last week that a bill he will file that will raise the government’s take in miners’ revenues will also provide for a sovereign wealth fund.

He said the bill seeks to raise miners’ excise tax to five percent from the current four percent, on top of the additional two percent sovereign wealth tax on firms’ gross output.

“There’s a new tax, a sovereign wealth tax… Ang in-adjust ko lang ‘yung excise tax, from four ginawa kong five (percent). ‘Yung sovereign wealth ginawa kong two from zero,” Mr. Salceda said.

Currently, he said that mining firms pay the regular 12% value-added tax, 30% corporate income tax and four percent excise tax.

Also included in the draft bill, he added, is a proposal that new mining tenements should be awarded via auction on a “first-come, first-served” basis.

“[The bill seeks to] provide for the auction. Second, sovereign wealth plus two (percent), excise tax (increase) by one percent[age point], everything [else] the same. Just increase the excise then add another two for sovereign wealth and the sovereign wealth cannot be taxed by the incumbent president administration that collected it,” he explained.

Looking back, Executive Order No. 79 in 2012 stopped approval of new mining permits until a new legislated revenue-sharing scheme is enacted. Several measures have since been filed in both the Senate and the House of representatives overhauling the tax regime of the industry. Senate President Vicente C. Sotto III and Majority Leader Juan Miguel F. Zubiri have each filed bills increasing the government’s revenue share from mineral products; while three bills have been filed in the House of Representatives. — with B. M. Laforga

Analysts’ September Inflation Rate Estimates

September 30, 2019 | 12:30 am

INFLATION this month could turn out to be the slowest since mid-2016 due to “base effects” from the year-ago nine-year-high 6.7%, according to a poll of 16 economists, who also cited opposing pressures from oil price volatility after the Sept. 14 attack on Saudi oil facilities and lower pork prices amid the African swine fever (ASF) outbreak. Read the full story.

Believing in and living your brand

September 30, 2019 | 12:30 am

The Entrepreneur Of The Year Philippines 2019 has concluded its search for the country’s most successful and inspiring entrepreneurs. Entrepreneur Of The Year Philippines is a program of the SGV Foundation, Inc. with the participation of co-presenters Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange. In the next few weeks, BusinessWorld will feature each of the finalists for the Entrepreneur Of The Year Philippines 2019.

Miguel Garcia
Founder and Chairman,
President and CEO
DTSI Group

MIGUEL GARCIA has always aspired to create his own brand.

Born into a family of entrepreneurs, he was exposed to business from a very young age. He graduated from Bentley College and went to the Stanford University Graduate School of Business. He also studied for a year in Sophia University in Tokyo, Japan.

Mr. Garcia remembers being offered a job in the family business, but he wanted to make a name for himself.

His first job after college was in a telecommunications company where he worked for three years.

In 1997, Mr. Garcia met people from the Philippine branch of a multinational Japanese information technology company, whom he invited to invest in his start-up company, Diversified Technology Solutions International Inc. (DTSI). DTSI has now become a leading enabler of facilities and IT solutions for Enterprises, Business Process Outsourcing (BPO) and shared services clients. DTSI designs, builds and manages facilities and enables clients with the best in class technology solutions.

Mr. Garcia recalls that back when he started DTSI, it took off immediately. After a few years and although it was doing well and was profitable, DTSI faced the same problem of many start-ups during the Asian financial crisis, which was access to credit.

“I had no collateral,” Mr. Garcia recounts, “it took me almost two years before I could get the first bank loan.”

After months of persistent applications, he was finally able to convince a local bank to extend him a loan, with both he and his wife signing a Joint and Solidary Signatures (JSS) Guaranty. The loan was put to good use and the business thrived, allowing him to repay the loan ahead of schedule.

DTSI continued to grow until it came to a point when he realized that he had to deleverage risk by bringing in a partner. In 2010, to further globalize DTSI, Mr. Garcia sought a partner with depth, breadth and aligned cultural values. He started talking to one of his supplier vendors, Nippon Telegraph & Telegraph (NTT) of Japan, a Global Fortune 100 company. After 18 months of due diligence and negotiations, DTSI and NTT forged a partnership.

DTSI’s target market includes large enterprises and multinationals. Mr. Garcia said they are only one of two service providers in the country that offer full end-to-end facilities solutions for companies. DTSI sells technology and develops services tailored to the needs of its customers, from designing office space to building their IT systems. As part of the NTT Group, DTSI develops technology-based products, solutions and services for digital disruptors. It provides digital transformation, robotic process automation, intelligent business solutions, intelligent infrastructure, intelligent workplace and cybersecurity. To date, DTSI manages over 21,000 seats of various clients spread over 30 sites.

For Mr. Garcia, the importance of trust and values is most significant when it comes to dealing with customers and stakeholders.

“People don’t do business with companies, they do business with people they trust,” Mr. Garcia said.

This is the reason DTSI’s slogan is “Going Beyond Solutions.” It means doing not only what is right, but going above and beyond what is expected. He is focused on his passion for excellence and the speed to produce better business and social outcomes.

Mr. Garcia states he is an advocate for the Philippines.

“That’s what I’m really passionate about, selling the Philippines,” he expresses, “before I could sell DTSI it’s always about selling the Philippines first and that’s what I love doing.”

DTSI has a team of people in the USA, Colombia and Morocco that markets the Philippines.

Mr. Garcia is one of the founding members of the Business Process Association of the Philippines (BPAP). As early as 2002, he foresaw the business process outsouring (BPO) industry as a major provider of jobs for the Philippines.

According to him, DTSI has played a key role in the growth and development of the IT-BPO sector. “We’ve gone so far as a company, industry and as a country. The second largest contributor to the Philippine GNP is the BPO industry,” he said. “Changing society, that’s what we’re doing and for me that’s the greatest pride of DTSI.”

He also takes pride in DTSI’s indirect contribution to Philippine growth: it is a catalyst in bringing new businesses to the Philippines, which then cascades to generating more business and employment for other industries.

As part of giving back to society, DTSI also has an annual CSR Foundation called “Fair Play for all Foundation.” It is a year-long program where DTSI employees go to Payatas to paint houses, give donations and provide education services in order to keep the youth away from drugs and crime.

Mr. Garcia sees DTSI creating the workplaces of the future. The company anticipates collaborating in the digital journeys of businesses while providing a secure environment against digital threats. Aside from foreign companies and the traditional BPOs, DTSI now aims to offer the same solutions to local enterprises and conglomerates, including banks and insurance companies.

Innovation is an ongoing process at DTSI. Mr. Garcia is aware that the technology the company sells now will be very different in 5 years.

“As soon as the technology is there, we want to make sure that we’re at the forefront and be the enablers,” he says, “there will be hurdles and detours but the challenge is to find ways to make the goal a reality.”

The official airline of the Entrepreneur of the Year Philippines 2019 is Philippine Airlines. Media sponsors are BusinessWorld and the ABS-CBN News Channel. Banquet sponsor is Uratex.

The winners of the Entrepreneur Of The Year Philippines 2019 will be announced on Oct. 15 in an awards banquet at the Makati Shangri-La hotel.

The Entrepreneur Of The Year Philippines will represent the country in the World Entrepreneur Of The Year 2020 in Monte Carlo, Monaco in June 2020.

The Entrepreneur Of The Year program is produced globally by Ernst & Young.

Big Boss allocates P10 billion for 2 cement manufacturing facilities

September 30, 2019 | 12:07 am

BIG BOSS Cement, Inc. (BBCI) is spending P10 billion to build two cement facilities in the country as it looks to increase production to 10-12 million bags of cement a month.

The cement manufacturer led by businessman Henry Sy, Jr is currently undertaking a P7-billion expansion of its plant in Porac, Pampanga, and a P3-billion new facility in Zamboanga del Norte.

BBCI President Gilbert S. Cruz said the Pampanga plant is currently running with two lines, while two more will be opened by February and May next year. This will bring its capacity to 4-5 million bags per month.

Meanwhile, one more line will be opened in Roxas, Zamboanga del Norte before the year ends. It will have a total of two lines each producing two million bags every month.

With 25 bags of cement equivalent to one ton, BBCI will have a capacity of about 4.8-5.76 million tons annually from the two plants.

“For the last one year and three months, we produced 10 million bags already. Everybody prefers our cement. The only problem is we don’t have the volume,” Mr. Cruz said in a media roundtable in Bonifacio Global City on Friday.

Mr. Cruz added that once they reach their target of 10-12 million bags per month, they plan to bring down prices to as low as P100 for each bag of cement, from the current price of P150 to P160.

“This will really bring about construction development and it may not sound good, but this will drive (away) all the foreign companies, because there is no way they can compete with our process,” he said.

Unlike other companies that use clinker as the main material to produce cement, BBCI uses a cement manufacturing process called Grinded Activated Sand by Heating, or G-ASH. This replaces clinker with substitute material that are readily available. The company’s patent for this technology is currently pending.

Once they secure the patent, the company is eyeing to expand to other countries. Mr. Cruz said they already have invitations from Malaysia and Indonesia.

BBCI has also requested for tax incentives from the Board of Investments (BoI) for its cement plants, although Mr. Cruz said they were previously turned down because they do not use clinker, which is what is granted tax breaks under the law.

“We changed our position and said that we are making clinker-like material which is called G-ASH. They’re now listening to us, and they’ve given the case to DoST (Department of Science and Technology)…Looks like they were convinced so now we’re waiting for BoI,” BBCI Vice President Ishmael D. Ordoñez said in the same event.

BBCI launched on Friday bulk cement products called B40 and B43, used for ready mix concrete and precast applications, respectively. The products have a minimum strength of 40 megapascal (MPa), indicating how much pressure concrete can withstand before it cracks or breaks down. This follows the same standards as the US and other parts of Europe. — Arra B. Francia