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Not all bliss

Most everyone who loves basketball — and a fair share who have, at best, a casual interest in the sport — will have already watched the first two episodes of The Last Dance. Compelled to stay home because of quarantine measures to mitigate the spread of the coronavirus disease 2019, they will have been intrigued by the prospect of seeing living legend Michael Jordan behind the curtains as he led the Bulls through the 1997–98 season and to its sixth and final National Basketball Association championship. And they will have come away equally impressed and perturbed at the unabashedly candid look the documentary series afforded them.

Indeed, the Bulls’ march to success was marred by shocking instances of disconnect. As The Last Dance showed time and again, their status as two-time reigning titleholders spearheaded by the otherworldly Jordan did not translate to a blissful pursuit of a collective objective. Far from it, in fact; they were slated for destruction, with general manager Jerry Krause determined to break them apart at the end of their campaign, hence the title of ESPN’s 10-part opus. And, in between, they had to deal with a disillusioned All-Star in Scottie Pippen, a distracted vital cog in Dennis Rodman, and a lame-duck head coach in Phil Jackson.

Needless to say, Jordan’s utter refusal to accept losing kept the Bulls focused on their ultimate goal. He was relentless and determined; if this was their final run, he argued, they would go out in a blaze of glory. And they did, but not before leaving a trail of bitterness and recrimination on which The Last Dance shines an illuminating light. Responsible for building the team following Jordan’s arrival, Krause delivered the goods. Unfortunately, the latter was likewise too prideful to bask in the returns sans the clearly desired public acknowledgement. No one front-office type in the proper frame of mind would have wished to rebuild while at the top.

Certainly, the Bulls were at the pinnacle when they let Jackson and Jordan (fresh off a fifth Most Valuable Player and sixth Finals MVP award) walk away, and then traded Pippen prior to the start of the lockout-truncated 1999 campaign. Krause made a mistake, and it would cement his role as the villain of the Dynasty. That said, he also deserved due recognition as its principal architect. He wanted it, only to get it too late; his inclusion in the 2017 class of the Naismith Basketball Memorial Hall of Fame came 10 days after his death.

Life is never just black or white. People are complicated. And if there’s anything The Last Dance has shown so far, it’s that even seemingly inevitable achievements cannot but be frayed at the edges; lost in the enveloping facade of good vibes are deep-seated emotions that tend to carry well past the celebrations and through new challenges. Little wonder, then, that it took so long for Jordan to green light, and, once out, that it took so little for the world to embrace.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

alcuaycong@bworldonline.com

How to support the mental health of frontliners

By Michaela Tangan
Features Writer, The Philippine STAR

STAR’s CG Live presents ‘Mental Health Check During Lockdown’

The coronavirus disease 2019 (COVID-19) has been taking a toll on everybody — from innocent children, adults trying to make ends meet, to frontliners working round the clock to serve and save lives. While the end of the pandemic is not yet in sight, we hope for the best but continue to ask questions and feel scared and anxious.

In CareerGuide’s online forum titled “Mental Health Check During the Lockdown,” psychiatrist Dr. Rene Samaniego and Jean Goulbourn of IASP Philippines noted: “It is okay not to be okay.”

The Inter-agency Standing Committee (IASC) said that frontline workers might feel stressed and overwhelmed, and this feeling may keep them from going to their jobs and provide a sense of purpose. Some might also experience ostracization or exclusion from the community due to stigma.

Moreover, chronic stress might also affect their well-being and work, even after the COVID-19 situation begins to improve.

If you are or have a loved one who’s a frontliner, Ms. Goulbourn said that utilizing warm water, practicing deep breathing, and making a game plan may help ease feelings of anxiousness. Meanwhile, the World Health Organization (WHO) and IASC shared the following tips:

– Show different form of support and acknowledge the role they play to save lives and keep our loved ones alive.

– Take care of your physical health and practice a healthy lifestyle by eating sufficient healthy food and engaging in physical activity.

– Use wireless forms of communication to stay connected with friends, family and other loved ones.

– Talk and open up about how you feel with your colleagues, managers and other trusted persons in your workplace — they might be feeling the same.

– Try and use helpful coping strategies such as ensuring sufficient rest and respite during work or between shifts.

– Avoid vices such as tobacco, alcohol or other drugs to cope with the stress.

Measuring COVID-19’s impact on local hospitality and tourism sectors

Data around the economic effects of COVID-19 shift every day. But current projections are painting a bleak picture of the hospitality and tourism industries.

Worldwide, these industries are expecting a loss of $2.1 trillion in revenue. The World Travel and Tourism Council, the trade group representing major global travel companies, estimates around 75 million jobs lost to the pandemic.

Regionally, Southeast Asia’s tourism-dependent economies are particularly vulnerable—not least because of its growing dependence on Chinese tourism. China’s rapidly swelling middle class sparked a boom in tourist visits abroad, which soared from 20 million in 2003 to 150 million in 2018. With much of the country still reeling from the pandemic, that swell has dipped considerably.

In the Philippines, hoteliers started feeling the crunch even before the Luzon-wide lockdown. Waterfront Philippines Inc. (WPI), which operates two Waterfront hotels in Cebu, said last month that room occupancy went down 55 percent on average. 

“This pandemic is causing a harsh economic downturn and is continuously taking a toll on the tourism industry and its allied services especially with the imposition of travel bans and community quarantines,” WPI reported, noting the booking cancellations and sales slowdown are causing “revenue strain.”

The operations of the Donatela Hotel in Bohol is likewise significantly affected by the community quarantine: “The management is keeping the expenses at minimum and is executing general cleaning and small in-house renovations while occupants are expected to be low at this time.”

Industry-wide, Arthur Lopez, president of Philippine Hotel Owners Association, told Philstar.com the group’s members are “feeling a downslide in their occupancies ranging from 30-50%, depending on source markets.”

Banking on local tourism

The current reality is that barely any tourists are taking holidays, many accommodations are running empty, and hotel personnel are being asked to cut work hours. Because this is an especially challenging year for tourism, the Philippines is banking on domestic travel to at least partly offset the expected dive in international visitors. “Domestic tourism cannot completely offset our losses from our foreign markets,” said Robert Zozobrado, president of Pacific Asia Travel Association, a group of airlines, hotels and restaurants, in a phone interview with PhilStar.

Tim Hentschel, CEO of HotelPlanner, a booking service which specializes in negotiated group deals and corporate events, shares this view. After having watched Singapore’s hotel occupancy rates from February until this month, he says that, “consumer demand for travel is now on life support and close to being dead. It will take at least two years before international travel comes back to 2019 levels worldwide. The new normal will be to travel locally and book staycations. This is extremely hard on Singapore and Southeast Asia that depends mainly on international travellers.”

To ensure that hotels win travellers back, Hentschel suggests two key strategies: First, let guests feel safe. Hotels can combat the fear of getting COVID-19 by conducting temperature screening for all guests, staff, suppliers, etc.; getting guests to complete a travel and health declaration and giving them a set of surgical masks and sanitizers upon check-in; and sanitizing public areas and guest room door handles regularly.

Second, provide customers with the flexibility to change their plans. “Not allowing discounted bookings, as well as the flexibility for date changes and cancellations, are no longer practical in today’s world where travel plans can be disrupted by government restrictions and other external factors. Trying to go after customers for extra cash to bolster your revenue will hurt your brand’s reputation and turn repeat customers away,” Hentschel said. Properties must also consider consulting their business insurance brokers, which should cover them for business interruptions like this outbreak.

A pledge of support

The Department of Tourism (DOT) has meanwhile pledged support for the travel and hospitality sector, saying it has lined up a host of incentives and will extend financial assistance to cushion the impact of the crisis. 

Among the immediate response actions are a moratorium on the collection of accreditation fees from new and renewing applicants from tourism—and tourism-related enterprises for 2020; the waiving of participation fees in international fairs and exhibitions between now and the end of 2021; and financial support like low interest loans from the Development Bank of the Philippines and the Land Bank of the Philippines through the Rehabilitation Support Program on Severe Events (RESPONSE) and the Rehabilitation Support to Cushion Unfavorably Affected Enterprises by Covid-19 (I-RESCUE) Lending Program.

The DOT has furthermore made representation with the Social Security System, Pag-IBIG Fund, and PhilHealth for the deferment of tourism workers’ contributions.

“To cushion the impact, the DOT and its attached agencies, even before the lockdown, laid out the response and recovery plan during the initial stages of the COVID-19 outbreak in the country with the tourism sector taking a direct hit early on,” Tourism Secretary Bernadette Romulo-Puyat said. The department pledges to help not only tour operators, but the entire travel and hospitality sector.

Five short courses to take for practical upskilling during quarantine

The enhanced community quarantine due to the COVID-19 pandemic quickly changed workplaces around the country. Workforces today are split, with many forced to adapt to remote work arrangements they may not be accustomed to.

For those finding themselves stuck at home, with more idle time and less to do with it, the internet is full of short courses one can take to ensure they stay productive through the quarantine.

For Dr. Amable C. Aguiluz IX, Vice Chairman and CEO of AMA Education System, this is exactly what their platform was built for.

“Using this time to continue studying through online short courses not only adds to your skillset, it also helps you emerge more equipped to take on the challenges the workplace will bring post COVID-19,” Aguiliz said.

AMA Education System is the school network behind the country’s first full online educational platform, AMA Online Education (AMA OEd).

AMA OEd recommends these five online short courses providing skill training that is immediately applicable today and can lead to opportunities to earn extra income later on.

Course: Working Remotely
Total time needed: 5 Hours

While working from home became an instant solution during this period, it will likely become part of the norm well beyond the COVID-19 pandemic. The Working Remotely course will teach students how to create a productive work environment at home and how to avoid distractions.

The content of this training serves as a practical guide to dealing with common challenges encountered by those who work remotely like feeling isolated, navigating office politics from afar, and mastering how to communicate virtually.

Course: Troubleshooting Common PC Issues for Users
Total time needed: 2 Hours and 12 Minutes

Working from home means needing to be your own IT specialist. This course, currently offered by AMA OEd, is designed to help diagnose common Windows computer issues. Students are systematically taught how to determine if an issue is hardware- or software-related, deal with common IT errors, run recovery processes, leverage the Task Manager, and restore Internet connectivity.

Course: Knowledge Work Presentation and Software Skills
Total time needed: 60 hours

Most jobs today require a mastery of a variety of software. This short course offered by AMA OEd gives refreshers for common applications like Microsoft Word, Excel, and Powerpoint, as well as other open-source software that can help with presentations, email clients, and graphics.

Those who take this course will also be taught the fundamentals of effective presentations, which is especially useful now when presentations are ordinarily made through online platforms.

Course: Network Security
Total time needed: 70 Hours

According to a recent study by software company Trend Micro, cybercriminals are increasingly using popular online tools, sharing software, and file attachments in their scams to steal your data. With the increased number of people taking the daily aspects of work online, susceptibility to cyberthreats is even higher. AMA OEd’s Network Security course is highly helpful especially for small to medium business owners who have taken their business transactions online.

The course deals with the principles of network security and the configuration for separate and shared networks. Modules include network security, encryption standards and methods, and defense measures against security threats. As more work and businesses shift online, this course helps assure business owners that their undertakings remain safe from cybersecurity threats.

Course: TESOL Professional Certification
Total time needed: 120 Hours

A popular course in AMA OEd’s platform, the Teaching English to Speakers of Other Languages (TESOL) Professional Certification is a course fit for those who are looking to teach or are already teaching English. The 120-Hour refresher course gives students new approaches and strategies in teaching the English language including effective classroom presentation skills, behavioral analysis of students, and developing mentor-mentee interactions online. Those who finish the course can then teach online as a side job later on.

AMA OEd currently offers a promo where students get free 5-day access for select courses until April 30, 2020. Also, enroll in any course and it gets you free 15-day access for up to 3 other online courses.

To find out more about this and other course offerings, log on to www.amauonline.com.

Philippines ranks among top countries innovating around COVID-19—StartupBlink report

StartupBlink has released their COVID-19 Innovation Ranking, “an algorithm ranking the top 20 innovating cities and countries in relation to the COVID-19 crisis”. The ranking is based on their Coronavirus Innovation Map, launched last March, as well as data gathered by their partners, the Health Innovation Exchange by UNAIDS, Moscow Agency of Innovations, Crunchbase, Meetup, and SEMrush.

The algorithm is split into two categories, each with 20 spots. For rankings by city, San Francisco, USA takes the top spot, a feat that it also accomplished in StartupBlink’s 2019 startup ecosystem rankings report. It is followed by two other US cities, Boston and New York, with Toronto, Canada and Milan, Italy rounding out the top five.

While it may seem counterintuitive for cities badly hit by the crisis to rank high, some of them are actually overperforming in developing innovative solutions. These include London and Paris, which are sixth and tenth on the list respectively.

As for rankings by country, the top five spots are occupied by the United States, Canada, Estonia, Switzerland, and Israel. The Philippines places 20th on the list, a notable feat considering that the country rarely ranks this highly in any of StartupBlink’s reports. Other notable overperformers are Ireland, sixth on the list, and Italy following at seventh.

Currently, StartupBlink is working on their next global ecosystem ranking report. This will be published in May.

Congress cool to possible tax hike

By Charmaine A. Tadalan, Genshen L. Epedido and Beatrice M. Laforga
Reporters

LEADERS of Congress are lukewarm to suggestions by the Finance department that a tax hike is needed in “a year or two” in order to cover the economic costs of the coronavirus crisis.

Finance Secretary Carlos G. Dominguez III first floated the idea on April 8, saying that the government may raise taxes in one to two years as it needs to pay off the debts incurred in the fight against the coronavirus disease 2019 (COVID-19).

“Certainly down the road. I think maybe in a year or two, that might be required, you know. All this money is really, has to be paid somehow. But we’re not going to do that immediately,” Mr. Dominguez told CNBC when asked if raising taxes is possible.

To fund its COVID-19 response, the government is negotiating $5.7 billion worth of loans from multilateral lenders including the World Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank.

However, Senate President Vicente C. Sotto III is reluctant to consider additional tax measures amid the coronavirus pandemic, but noted it is “possible” that it may be taken up by the next administration.

“In one or two years, then let’s talk about it then. Hard to predict at this point,” he said in a phone message on Monday.

Senate President Pro Tempore Ralph G. Recto in a text message said it is “crazy to talk about increasing taxes,” adding the government should focus on an economic recovery plan instead.

For House Ways and Means Committee Chairman Albay Rep. Jose Maria Clemente S. Salceda, any new tax measures would be taken up by the next administration.

“We will do it for the next administration, even if deferred or gradual implementation. It’s all there, waiting in the Senate anyway,” he told BusinessWorld via Viber message.

Asked whether new taxes are needed, Mr. Salceda said there are pending measures that would not impact low-income households, such as taxes on Philippine Offshore Gaming Operators and an increase on the motor vehicles users charge.

Despite the government’s plans to incur more debt, Mr. Salceda said that the Philippines’ fiscal position or long-term growth outlook will not be compromised.

“We can negotiate very favorable terms, too, because of our attractive credit ratings,” Mr. Salceda said. “The interest rates are usually concessional. If we can get them at 2% interest, that would almost already be free money.”

“How quickly we were able to access credit from multilaterals, and how easy the terms are (just pay it, no other strings attached), shows us the fundamental strengths of the Philippine economy and fiscal position,” Mr. Salceda added.

ARE NEW TAXES NEEDED?
Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said fiscal reform measures would have to be rolled out to pay for the debts and offset the higher state spending this year.

“Once the COVID-19 is better controlled/contained and economies locally and overseas gradually recover and normalize, fiscal reform measures such as increasing structural tax revenue collections could be resumed to sustain the country’s fiscal gains over the long run,” Mr. Ricafort said in an e-mail.

While raising taxes is an option, Finance Assistant Secretary Maria Teresa S. Habitan said there are no concrete plans for another tax hike yet.

In the near term, Mr. Ricafort said “higher taxes may not be appropriate especially if more financial aid/relief measures from the government are still needed by the most vulnerable sectors.”

For Ateneo School of Government Dean Ronald U. Mendoza, policy makers should focus on recovery programs for sectors hardest hit by the pandemic such as health care, tourism, construction and retail, as well as displaced overseas Filipino workers.

“Introducing new taxes during a fragile recovery period is probably counter-productive. The next 1-2 years will be critical in terms of ensuring recovery-for-all vis-à-vis the COVID-19 health and economic shocks… What is more critical is to continue to provide support, rather than to implement a heavier tax burden on top of the burden of recovery itself,” Mr. Mendoza said in an e-mail on Sunday.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said raising taxes in one to two years will have to depend on the performance of the economy after all the fiscal and monetary policies were rolled out.

“Expanding government in a recovery state would not be ideal. Government would have to come up with more creative fiscal policies. If and when economic recovery comes quickly, I do not think that derailing the current tax reform would be needed,” Mr. Asuncion said via Viber.

Mr. Mendoza said the government could also consider dropping its plan to lower the corporate income tax if it wants to stabilize its revenues and instead, pursue governance reforms for the country’s two largest tax-collecting bodies — Bureaus of Internal Revenue and Customs — to plug revenue leakages.

However, DoF’s Ms. Habitan said they will still prioritize passing the remaining packages of the tax reform program, especially the Corporate Income Tax and Incentives Rationalization Act (CITIRA) bill.

“We’ll see how things develop, baka naman ’di (maybe not) actually raising taxes but continuing the tax reform. I think it’s even needed urgently especially ’yung CITIRA because it can focus on more COVID-related incentives and the way that it should be targeted, it should be really targeted,” Ms. Habitan said in a telephone interview on Friday.

While the CITIRA bill is revenue neutral or not expected to generate more revenues for the government, Ms. Habitan argued that a more targeted incentive system will attract investments for strategic sectors.

Congress has not yet approved the CITIRA bill, which aims to gradually lower corporate income tax to 20% and streamline the tax incentive system. Congress is expected to resume on May 4.

The Duterte administration has so far passed three measures that raised taxes, such as the Tax Reform for Acceleration and Inclusion law.

2019 growth expansion scaled up using 2018 prices

THE ECONOMY grew faster than previously estimated last year using 2018 as the base year in measuring the country’s gross domestic product (GDP), the Philippine Statistics Authority (PSA) reported on Monday.

Using 2018 as the base, Philippine GDP growth averaged six percent in 2019, a tad faster than the 5.9% previously reported in January that used 2000 prices.

Growth in the fourth quarter was revised upwards as well to 6.7% from 6.4% previously.

On the expenditure side, household consumption growth last year was scaled up to 5.9% from 5.8% using 2000 as the base year. Likewise, gross capital formation growth in 2019 was revised to 2.5% from a 0.6% decline.

On the other hand, government spending growth was revised to 9.6% last year, down from the previously reported 10.5%.

The growth in the exports and imports of goods and services were also downscaled to 2.4% (from 3.2%) and 1.8% (from 2.1%), respectively.

On the production side, the new base year led to upward growth revisions in the services sector in 2019 at 7.5% from 7.1% using 2000 prices.

On the other hand, industry and agriculture, forestry and fishing grew by 4.7% (from 4.9%) and 1.2% (from 1.5%), respectively.

According to a note provided by the PSA titled “Primer on the overall revision and reading to 2018 of the Philippine System of National Accounts,” rebasing is a process of replacing an old base year with a more recent one.

“The base year provides the reference to which future values of GDP are compared,” the PSA primer read.

Using an outdated base could mean the growth of an economy may be underestimated as new industries may not be captured by the old method.

The overall revision and rebasing to the 2018 base year include new industries such as information and communication; accommodation and food services; education; and human health and social work activities.

It also added expenditure components such as “valuables” under gross capital formation and “newly highlighted export and import commodities.”

Prior to the 2018 base year, the country’s national accounts have undergone four overall revisions — 1968 (from base year 1955 to 1967), 1973 (from base year 1967 to 1972), 1995 (from base year 1972 to 1985), 2011 (from base year 1985 to 2000).

The preliminary results of the first-quarter 2020 economic performance, which will henceforth be using the 2018 base year, is scheduled to be released on May 7. — LOP

DoTr proposes to free up P15-B funds for coronavirus response

By Arjay L. Balinbin
Reporter

THE Department of Transportation (DoTr) on Monday said it identified 35 transport projects where around P15 billion can be freed up for the government’s coronavirus pandemic response efforts.

“[The DoTr] submitted to the Department of Budget and Management (DBM) the list of projects for budget realignment to free up P15.1 billion of funds for initiatives to mitigate COVID-19 (coronavirus disease 2019),” the department said in a statement.

Transportation Assistant Secretary Goddes Hope O. Libiran declined to provide the list, but said it includes 35 program items and projects across all transport sectors such as rails, airports, ports and roads.

“Hindi ko pa ma-ishare kasi proposal pa lang siya (I cannot share the list because it’s just a proposal). It’s still up to the DBM if they will accept it,” she said in a phone interview.

Ms. Libiran said the projects are not being axed and will still proceed since only a portion of their budgets may be realigned.

“Hindi ititigil ang project… ’Yung portion ng budget ng projects na hindi naman madi-disburse this year, ’yun ang pwede naming ibigay o i-realign (The project will not be stopped… The portion of the budget that will not be disbursed this year, we can realign those),’’ she said.

Under the Bayanihan to Heal as One Act, the President has the authority to realign items from the 2019 and 2020 national budgets so it can fund measures to contain COVID-19.

The government has allocated P1.45 trillion so far for fiscal and monetary measures for COVID-19 response, the Finance department said. Around P304 billion has been allotted to assist the most vulnerable sectors, while the majority of the P830.272-billion funds will go to initiatives that will support the economy.

The Department of Finance recently said government expenditures are expected to hit P583 billion for emergency support to vulnerable sectors alone, while it has allotted P35 billion for medical expenses for the COVID-19 fight.

Work on many public infrastructure projects have stopped in Luzon, as the island was placed under enhanced community quarantine (ECQ) on March 16. The ECQ is scheduled to be lifted on April 30, although the government is weighing whether or not to extend it further.

The Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) has allowed limited work for 13 rail projects despite the Luzon-wide lockdown.

These rail projects are the Light Rail Transit (LRT) Line 1 Cavite Extension, LRT-2 East Extension, LRT-2 West Extension, LRT-2 Fire Restoration, Metro Rail Transit (MRT) Line 3 Rehabilitation, MRT-7, Metro Manila Subway, Common Station, Philippine National Railways (PNR) Clark 1, PNR Clark 2 and Calamba, Subic-Clark Railway, PNR Bicol, and Mindanao Railway.

Public Works Secretary Mark A. Villar has said the department has reallocated a small amount — about P30 billion — from the government’s “Build, Build, Build” program to help finance the response to the crisis.

The “Build, Build, Build” budget stood at P816.2 billion last year. This year, the main agencies implementing the program, the Department of Public Works and Highways and the DoTr, have been given a budget of P581.7 billion and P100.6 billion respectively.

Mr. Villar has also said that projects under the infrastructure program will be slightly delayed, but targets for 2020 will still be met.

MB foreign debt approval falls 30% in first quarter

THE Monetary Board (MB) approved $2.38 billion worth of foreign borrowing by the National Government (NG) in the first quarter of 2020, down 30% year on year, according to the Bangko Sentral ng Pilipinas (BSP).

The approvals included a bond issue worth 1.2 billion euros, four project loans amounting to $493 million, as well as two program loans totaling $800 million.

The NG will use the funds for general financing requirements and projects related to infrastructure development and transport connectivity, as well as the implementation of the Philippine Competition Act.

It will also use the proceeds to generate employment and support for operations to respond to natural disasters, the BSP said.

“Of the total approved borrowing, about 9.23% or $219.8 million will fund an infrastructure flagship project (IFP) under the ‘Build, Build, Build’ program particularly the undertakings of the Project Management Consultancy of the Philippine National Railways South Long Haul Project,” the BSP said.

The MB must give prior approval for all foreign loans entered into by the national government, according to the 1987 Constitution.

Outstanding external debt rose 1.1% quarter on quarter to $83.6 billion at the end of 2019. — Luz Wendy T. Noble

Ayala Corp. to merge energy, water and infrastructure units

By Adam J. Ang

AYALA Corp. is merging its energy, water, transport, and logistic entities to boost its power and infrastructure portfolios in the country.

In an announcement sent to the stock exchange on Monday, the diversified conglomerate said it was consolidating two of its listed firms, AC Energy, Inc. and Manila Water Co., Inc., as well as its unlisted unit, AC Infrastructure Holdings Corp. (AC Infra).

The consolidated firms will be placed under AC Energy, which is set to be renamed as AC Energy and Infrastructure Corp. (ACEIC).

“We believe that consolidating our various infrastructure interests creates a formidable platform with a strong balance sheet and allows Ayala to participate in the many opportunities in infrastructure development in a more significant way,” Ayala Corp. Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said in a statement.

Ayala Corp. will sell and transfer its shares in its infrastructure arm to ACEIC, as well as its shares in MWC or its shares in Philwater Holdings Co., Inc. The new holding firm will also subscribe to primary shares in AC Infra.

Analysts saw the move to consolidate the businesses as “strategic” as it could offer more to investors and in turn, they could bet on the company for the long-term.

“The move of Ayala seems strategic to consolidates all it BUs (business units) into one platform to benefit from synergies as well as make them a more formidable player in the infrastructure space,” said Luis A. Limlingan, managing director of Regina Capital Development Corp.

Claire T. Alviar, a research associate at Philstocks Financial, Inc., said the consolidation is “more strategic for the company to integrate the said units into one company.”

“It can perform better in its industry since the company has now more capacity to offer… Lastly, opportunities will rise given that the integrated unit could offer more services, so planning and executing one project would be easier, and this is favorable for the clients,” she added.

Shares in Ayala Corp. on Monday rose by 1.51% to close at P606 apiece.

The announcement came as Ayala-led AC Energy Philippines Inc. (ACEPH) held a “virtual” annual stockholders meeting during which it was renamed AC Energy Corp. after stockholders adopted a resolution to change the company’s name.

In the meeting of ACEPH held via teleconference on Monday, a majority of the company’s stockholders approved the resolution to change the corporate name of the Ayala unit, as well as the move to raise its authorized capital stock to P48.4 billion from P24.4 billion.

The move to change the company’s name followed ACEPH’s acquisition of the international renewables business of its parent company AC Energy, Inc.

“The Board of Directors has deemed it appropriate to amend the name of the corporation and remove ‘Philippines’ from the corporate name to make it clear and to emphasize that the business and operations of the corporation are no longer limited to the Philippines, but also in other countries in the Asia-Pacific region,” ACEPH President John Eric T. Francia said in the virtual meeting.

Last month, ACEPH’s board agreed to inject primary shares to its parent in exchange for the latter’s shares in Presage Corp., which has a portfolio of renewable energy projects in Indonesia, Vietnam and other countries in the Asia-Pacific region.

Stockholders approved the proposal to increase the firm’s authorized capital stock to realize this deal, which is expected to close within the year.

“The issuance of additional shares to AC Energy will require an increase in the corporation’s authorized capital stock, thus the board has approved the creation of P24 billion shares,” Mr. Francia said.

Mr. Francia said that minority shareholders are not compelled to subscribe to additional shares of ACEPH upon the infusion of the international asset to the company, but it will put up a follow-on offering as required by the Philippine Stock Exchange.

“ACEPH will need to undertake a follow-on offering after this second asset-for-shares swap. This will be a public offering and will not be limited to existing shareholders of ACEPH,” he added.

The company has been repurchasing up to P1 billion of its shares since March 24.

It is also expecting to complete its stock rights offer of up to P2.27 billion within the second quarter of the year.

In June last year, AC Energy acquired the controlling stake of the Philippine Investment Management (Phinma) Group in Phinma Energy Corp., which was later renamed AC Energy Philippines.

Meanwhile, the listed firm said it had seen a 30%-40% drop in power demand, which brought down its uptake volumes, as businesses have temporarily shuttered following the implementation of the enhanced community quarantine (ECQ) in Luzon.

The company has since worked with both suppliers and consumers to ensure unhampered delivery of energy services.

“Most of our plants are under bilateral contracts or feed-in-tariff arrangements, so our commercial operations team is working closely with our customers and suppliers to make sure that we maintain a balanced portfolio, in terms of energy supplied and energy delivered,” Mr. Francia said.

Amid slumping oil prices, the energy firm said its peaking power plants are in a “very good position” to provide cost-efficient power supply and ancillary services to the grid during periods of high demand.

The company also saw delays in their on-going projects due to work restrictions as per quarantine protocols. “However, our development teams continue with planning, engineering and permitting work on projects to maximize timelines,” he said.

ACEPH ENDS COAL INVESTMENTS
Further, ACEPH will no longer invest in coal-fired power plants in part of its commitment to having a low-carbon portfolio by 2030.

“With its new EMS (Environmental Management System) policy, ACEPH will now focus on renewable investments and we will not be making additional investments in coal plants. The company, however, remains open to thermal technology such as gas or diesel-fired power plants that complement our renewable assets and developments, Mr. Francia said.

AC Energy targets to have an attributable capacity of about 1,500 megawatts this 2020 with 50% of this coming from renewables.

“We are making a commitment to transition into [a] low-carbon portfolio by rebalancing our generation portfolio to grow our renewable energy assets,” ACEPH Chairman Fernando Zobel de Ayala said in a taped video message.

Shares in ACEPH on Monday grew by 4.23% to close at P2.22 each.

ACE Enexor studies two potential oil exploration sites

AN Ayala-led petroleum exploration unit is currently assessing two potential areas for oil drilling in West Palawan.

In the online annual stockholders meeting of ACE Enexor Inc. on Monday, the company said that its subsidiary Palawan55 Exploration & Production Corp. is conducting evaluations for two possible oil sites.

“Palawan55 is currently conducting [a] follow-on evaluation of two candidate targets for drilling. Upon completion of the comparative assessment, the consortium will decide the prospect to be drilled,” ACE Enexor Chief Operating Officer Raymundo A. Reyes, Jr. said in the virtual meeting.

ACE Enexor Chairman Jose Eric T. Francia said they might focus on one of the two specific target sites for potential drilling by 2022 after finishing on-going studies within the year.

Mr. Reyes said the prospect-specific technical studies are expected to be finished by June. “The second half of 2020 will be spent primarily for well planning,” he added.

Recently, the Department of Energy (DoE) approved the entry of the deep-water block project led and operated by Palawan55 into an appraisal period starting April 26.

Within the first two years of this period, it committed to drill at least one deep-water well. The unit will soon submit for approval a new work program and budget for this phase.

The project under the DoE Service Contract 55 was classified as a non-associated gas discovery.

Palawan55 is currently undertaking a quantitative interpretation of over 1,000 square-kilometer of recently reprocessed 3D seismic data over the greater exploration area called Hawkeye-1 and a large carbonate reef prospect.

The ACE Enexor unit recently raised its stake in SC 55 to 75% after a co-contractor, Singapore bourse-listed Century Red Pte. Ltd., transferred its 37.5% interest share to the company as it pulled out from the project. Pryce Gases, Inc. owns the remaining quarter of interest.

Meanwhile, the company aims to execute its drilling programs throughout 2021, including permitting work, procurement of supplies and equipment, and deployment of a drilling team.

“We anticipate that the execution of the drilling program will be our focus throughout 2021,” Mr. Reyes said.

On Monday, shares in ACE Enexor rose by 5.31% to close at P6.74 each. — Adam J. Ang

Dylan’s ‘Times They Are A-Changin’’ lyrics for sale for $2.2 million

LOS ANGELES – Bob Dylan’s handwritten lyrics to his 1960s classic “The Times They Are A-Changin’” are going up for sale with a $2.2 million asking price in what could mark a world record for rock lyrics.

Gary Zimet, owner of Los Angeles-based autograph dealers Moments in Time, said on Sunday that the one-page sheet of lyrics, written in a notebook and with changes and scribbles, was originally owned by Dylan’s current manager, Jeff Rosen, and was now being sold by an anonymous private collector.

“It’s not an auction. It’s a private sale. First come, first served,” Zimet told Reuters.

Dylan’s handwritten lyrics to “Like a Rolling Stone” fetched a world-record $2 million when they were sold at auction by Sotheby’s in New York in 2014.

“The Times They Are A-Changin’,” written by Dylan in 1963 and released on his 1964 album of the same name, is regarded as one of the most iconic protest songs of the 1960s.

Zimet said he was also selling the lyrics of two other Dylan songs – his 1965 track “Subterranean Homesick Blues” for $1.2 million, and 1969 ballad “Lay Lady Lay” for $650,000.

“They are not quite as important, as iconic,” said Zimet, explaining the lower prices. “‘Subterranean Homesick Blues’ is certainly a major, major song but not in the same league as ‘The Times They Are A-Changin’.”

The lyrics to popular songs, especially when handwritten and with scratched-out ideas or doodles, have become some of the most sought-after items for collectors of celebrity memorabilia.

Don McLean’s 16-page draft for “American Pie” fetched $1.2 million in 2015, while Paul McCartney’s scribbled partial lyrics for a recording of “Hey Jude” sold for $910,000 at an online auction earlier this month.

Dylan, 78, last month released his first original music in eight years with a 17-minute song called “Murder Most Foul” that was inspired by the 1963 assassination of US President John F. Kennedy. In 2016, Dylan became the only singer-songwriter to win the Nobel Prize for Literature. – Reuters

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