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From rackets to revenues: How home-sharing impacts the economy

Home-sharing has become an automatic option for most travelers when it comes to finding accommodations. With access to a wide and varied catalogue of residences, customers can customize the accommodation to their needs, whether it’s a two-day staycation or month-long family trip.
But home-sharing services offer more than lodging for tourists. In their newly-launched book “At Home Around the World: The Short-Term Rentals Handbook for Guests, Hosts, Neighbors and Governments”, Robert Rosenstein and Peter Allen explore how the industry has positively impacted economies on both the micro- and macro-levels.

Boosting incomes and economies

One of home-sharing’s most immediate effects is how it’s opened financial opportunities for locals. By renting out their private properties, hosts are able to generate income on an asset that otherwise would have been monetarily stagnant. And since more accommodations are emerging due to this incentive, tourism also begins to boom.
“Local host rentals augment supply during peak events, helping municipalities not only manage tourism surges, but also by channeling more resources to the local economy,” said Allen, managing director of Agoda Outside. “And we also have reports showing guests stay anywhere from 25 to 50 percent longer in a home-share as compared to hotels, which of course has incremental benefits to the local economy.”
Aside from the hosts, cleaning and security services as well as payment and marketing platforms have also flourished with this industry.
Globally, these benefits are already being felt. According to a 2017 Skift report, home-sharing is expected to hit $169 billion in total global revenue by the end of the year.

What’s to come

Of course, the industry was met its fair share of challenges. According to Rosenstein, founder and chairman of Agoda Company Pte. Ltd., governments are still struggling with how to integrate home-sharing in legislation, which includes licensing and registration requirements and taxation.
On a local scale, government officials in Davao have been calling for tighter legislation on home-sharing operations within the city.
But with an annual growth rate of 30 percent, and an estimated $2 billion in local global tax revenue for the next 10 years, it seems that home-sharing will be catering to the global traveler’s lifestyle for decades to come.

Spending risks in focus at DBCC meeting

By Elijah Joseph C. Tubayan, Reporter
ECONOMIC MANAGERS will discuss in a meeting next month of the Development Budget Coordination Committee (DBCC) ways to mitigate the economic impact of a partially reenacted budget and the public works ban ahead of the May 13, 2019 midterm elections, the chairman of the interagency body said on Wednesday.
His statement coincided with a Department of Budget and Management (DBM) report showing government agencies’ budget use in proportion to total allocations slipped in the 11 months to November from the same period last year, even as amount was more than a year ago.
“DBCC will address that before end January, when we would have a better handle of the situation — how early or late the 2019 budget will be approved, the size of the infra[structure] budget that will be affected by election ban, which I think will take effect in the last week of March,” Budget Secretary Benjamin E. Diokno said in a mobile phone message.
“Will use the first month of the year to assess where we are and how to move forward, with the least damage to the economy in mind.”
The DBCC is mandated to set and review macroeconomic assumptions for state budgeting purposes; as well as revenue projections, borrowing level, aggregate budget amount and expenditure priorities; and recommend the fiscal program to the Cabinet and the President.
The body consists of the DBM, the Department of Finance, the National Economic and Development Authority, the Office of the President and the Bangko Sentral ng Pilipinas as a resource institution.
Congress went on a month-long break on Dec. 15 without passing the P3.757-trillion 2019 national budget and Malacañang said it won’t ask Congress to hold a special session as the Senate said it will not be able to finish deliberations on the proposed fiscal plan regardless.
Failing to enact a new budget would mean that the current spending plan will be reenacted, meaning no new project can begin.
Lawmakers return to work on Jan. 14.
The Senate’s budget timetable shows the chamber aims approval on third and final reading on Jan. 16, ratification by both chambers on Jan. 29 and submission to Malacañang for signing into law by President Rodrigo R. Duterte on Feb. 7.
The economic managers had warned that a reenacted budget for the whole year may cut economic growth by 1.1-2.3 percentage points, although Mr. Diokno said that he expects the government to operate on a new budget some time in February.
Delays in processing the proposed 2019 national budget began at the House of Representatives, halting committee-level deliberations for two weeks due to confusion over the shift to an allocation system based on the limited spending capacities of departments and agencies. Hence, this year’s budget is slightly bigger at P3.767 trillion.
The House approved the spending plan on final reading on Nov. 20.
The Senate argued that this left it will little time to examine the budget version that left the House.
At the same time, Batas Pambansa Bilang 881 or the Omnibus Election Code prohibits the government from releasing funds for public works 45 days before a regular election — which next year falls on May 13 — except for projects that have been awarded prior to that period. It also prohibits public works construction within 45 days before elections.
The Senate plans a joint resolution with the House that will provide for selective exemption from that public works ban in hopes of mitigating the economic impact of budget reenactment.
The DBCC targets a 7-8% economic growth rate for 2019-2022, which, if realized, is faster than the actual 6.7% in 2017 and 6.3% in the first three quarters of the year.
BUDGET USE
Also on Wednesday, the DBM reported that overall utilization rate of the DBM’s Notice of Cash Allocations (NCAs) stood at 88% as of November, lower than the 90.7% recorded in the same period last year even as it was more higher than the 81% logged in the 10 months to October.
The NCA is a quarterly disbursement authority issued by the DBM to government offices, allowing them to secure checks from the Bureau of the Treasury to pay for contracted projects. Once encashed, funds are deemed disbursed.
State departments and agencies utilized a total of P2.6 trillion in the 11 months to November of the P2.94 trillion released to them by the DBM, which was up 26.86% year on year. This leaves P339.54 billion in total unused funds, 61.69% higher year on year.
“It’s more than the frontloading we are seeing this year,” Budget Undersecretary Laura B. Pascua said in a mobile phone message when asked for an explanation.
“For some reason, contractors are speeding up the implementation of prior obligations which is consistent with the ACBA (Annual Cash-Based Appropriations). We want to wind down prior-year obligations which have yet to be implemented.”
The Department of Public Works and Highway (DPWH) had the highest NCA utilization ratio at 95% of the P535.73 billion released to it, marking the biggest sum of NCAs released by the DBM as of November.
National government agencies that received some of the biggest releases include the Department of Education, which used 88% of the P479.30 billion funds released to it; the Department of Interior and Local Government, which used 88% of its P240.33-billion allocation; the Department of National Defense, which used 90% of P224.47 billion; the Department of Social Welfare and Development, which used 84% of P135.32 billion; and the Department of Transportation, which used 69% of the P49 billion it got.
The National Economic and Development Authority logged the lowest utilization rate at 52%, followed by the Commission on Elections’s 61%.

World economic league ranking of select Asian economies

THE PHILIPPINES can be expected to close in on the top 10% of the world’s major economies in the next 15 years, partly as improved infrastructure spurs overall economic growth, according to a London-based consultancy. Read the full story.
World economic league ranking of select Asian economies

Production spurred by infrastructure build expected to propel Philippines up ranks of biggest economies

grocery imported goods
Elevated inflation, however, remains a risk to growth.

THE PHILIPPINES can be expected to close in on the top 10% of the world’s major economies in the next 15 years, partly as improved infrastructure spurs overall economic growth, according to a London-based consultancy.
According to the annual World Economic League Table (WELT) report produced by Centre for Economics and Business Research (CEBR), the Philippines is expected to be the 22nd among 193 major economies by 2033, from 40th this year.
Compared to select peers in Asia, the Philippines will fall below Indonesia’s 12th rank and Thailand’s 21st position in 2033, from those neighbors’ respective 16th and 25th ranks currently.
The Philippines will fare better than Vietnam, which will move up to 30th place by 2033 from 47th spot this year.
“High levels of infrastructure spending together with strong levels of domestic demand from the Philippines’ large and fast-growing population are set to sustain annual growth of around 6.6% per year over the next two years. In the longer term, improvements to infrastructure have the potential to unlock major productivity gains, fuelling annual growth of close to seven percent,” the report said, as it sees the Philippines placing 39th next year, 28th in 2023 and 25th in 2028 before reaching 22nd in 2033.
World economic league ranking of select Asian economies
“It is less reliant on exports than many other countries at a similar level of development,” the consultancy noted in its report.
“This, together with consistently strong levels of domestic demand, has enabled it to sustain positive growth in every year since the turn of the millennium, despite many external shocks such as the 2008 global financial crisis.”
DRIVERS AND RISKS
CEBR expects the Philippines to grow 6.5% in 2018, which would be slower than the 6.7% recorded in 2017, but will sit within the government’s target of 6.5-6.9% for this year.
The consultancy cited the government’s infrastructure drive among the main growth drivers, as well as inflows of foreign direct investments, but flagged a tightening external monetary policy environment and continued elevated inflation as risks.
“The Philippines has long lagged behind competing countries in delivering the infrastructure needed to attract foreign investment and a diverse manufacturing sector. President (Rodrigo R.) Duterte’s ‘Build Build Build’ policy recognizes this issue, and the government plans to raise spending on transport infrastructure from five percent of GDP currently to seven percent of GDP by 2022,” the report read.
“While tax reforms have been implemented to finance this investment drive, much of the funding will also come from overseas,” it added.
“The government has actively promoted this by easing limits on inward investment. With global interest rates on the rise, turning overseas for funding does represent a risk.”
Compared to many others on the list, “the Philippines is better placed than most to manage this risk, with high levels of foreign exchange reserves and only a small current account deficit, which is contained by the regular flows of remittances from overseas Filipino workers,” the report read.
And while “[i]nflation is felt particularly acutely by poorer households, and this represents a risk to growth in the coming years… the government has taken positive steps to tackle this issue by easing limits on food imports and lifting non-tariff barriers,” it added, noting that the central bank has raised rates by a total of 175 basis points this year “in order to stop the economy from overheating.”
The top four spots this year and in 2019 will be occupied, in descending order, by the United States, China, Japan and Germany. The United Kingdom, fifth this year, will slide to seventh place, while France will retain sixth rank. India, seventh this year, will unseat UK to grab fifth in 2019, while Italy, Brazil and Canada will retain eighth, ninth and 10th places, respectively. — Elijah Joseph C. Tubayan

ANZ Research sees smaller PHL trade deficit next year

THE PHILIPPINES will likely see a narrower external trade gap in 2019, a global bank said, citing help from falling oil prices in the world market.
Analysts at ANZ Research said the country’s current account deficit could see a slight narrowing next year, coming from a wide gap posted in 2018.
“We also forecast an improvement in the current account positions in India, Indonesia and the Philippines in 2019,” ANZ Research said in its Q1 2019 Outlook report.
Every $10 per barrel change in world crude prices will adjust the current account by an equivalent of 0.50% of gross domestic product (GDP), given that the Philippines is a net oil importer.
The impact is smaller for India and Indonesia at 0.25% and 0.11% of GDP, respectively.
“Thus, the recent fall in crude oil prices has been unambiguously positive for all three economies,” the bank economists said.
However, aggressive Philippine government spending may partly offset the impact of lower crude costs.
“The correction in the Philippines should be more moderate, hampered by a persistent expansionary fiscal policy,” ANZ Research said.
The current account, which measures fund flows from goods and services trading, posted a $6.47-billion deficit in the nine months to September. The Bangko Sentral ng Pilipinas (BSP) expects this level to hold till yearend at $6.4 billion, equivalent to 1.9% of GDP, amid a steady rise of the import bill.
Contrary to ANZ Research expectations, the central bank projects the trade gap to bloat to an $8.4-billion deficit next year — equivalent to 2.3% of GDP which will be the biggest proportion in 17 years — as the country brings in even more raw material and capital goods.
Still, BSP Assistant Governor Francisco G. Dakila, Jr. said that the trade shortfall remains sustainable, with oil price “normalization” helping to temper the increase in import payments.
ANZ Research said the current account gap will sustain the weakness of the peso, which has depreciated versus the dollar for much of 2018. “The Philippine peso will stay under pressure from the deteriorating current account deficit, as the government’s infrastructure building program lifts imports,” the report read.
Philippine GDP growth is expected to decelerate to 6.1% next year from 6.3% this 2018, shy of the government’s 7-8% target.
Meanwhile, inflation is seen returning to the BSP’s target range to average 3.8% in 2019, following a 5.2% estimate this year against an actual 5.2% in the 11 months to November. — Melissa Luz T. Lopez

Steady, not strong as SE Asia faces 2019 growth worries

SINGAPORE — Last year, economists predicted Southeast Asia would be blessed with a strong and vibrant 2018.
For next year, they’re not quite so optimistic.
Moderating economic growth and higher interest rates lie ahead.
The Federal Reserve is set to keep everyone on edge as it navigates an even trickier interest-rate path in 2019, while the trade war between the United States and China is already hurting exports in the region.
The Philippines might eke out a small gain in growth in 2019, if its bets that inflation will diminish come to fruition.
“ASEAN growth and inflation look set to soften in 2019,” said Tamara Henderson at Bloomberg Economics.
“Even so, a desire to attract investment inflows may require that the region’s central banks maintain a bias toward tightening — at least until a pause by the Federal Reserve comes into view or China’s stimulus starts to bear fruit.”
To top it off, elections in Thailand, Indonesia and the Philippines could rock the boat even more.
Here are the big economic themes for the region in 2019:
GLOBAL WEAKENING
We’d like to see the good times roll, but most economists are seeing a further slowing of global growth in 2019, just as this year couldn’t beat the previous one.
While economies like the Philippines and Vietnam remain outperformers, the slowdown probably will take its toll in Southeast Asia.
Especially due to China’s tight relationship with the region, demand that’s taken quite a hit in the world’s no. 2 economy amid tariffs and structural changes will negatively affect the neighborhood.
TRADE SLOWDOWN
The domino effect of trade pain remains a high risk amid both the delayed impact of third-quarter tit-for-tat duties and the uncertain outlook of a fragile truce forged between the US and China this month.
“Asia is going to face quite a few challenges” in early 2019, Rob Subbaraman, head of emerging markets economics and Asia ex-Japan fixed income research at Nomura Holdings, Inc., told reporters on Dec. 13.
Especially for global trade, things will get worse before they get better, with the technology cycle finding a bottom in the first half of the year, Nomura analysts project.
Merchandise trade accounts for more than 200% of Singapore’s economy, and more than 100% of those of Vietnam, Malaysia, and Thailand.
ELECTION UNCERTAINTIES
Thailand is set finally to hold a vote Feb. 24 after more than four years of military rule, and analysts are fretting over the potential of social unrest that could hurt tourism and investor sentiment.
Indonesia’s turn is in April — a rematch between President Joko Widodo and his rival Prabowo Subianto.
The Philippines is set to hold midterm elections in May.
FOLLOWING FED MOVES
Central banks will struggle with the US Federal Reserve’s evolving interest-rate path and act accordingly to protect their currencies and keep current accounts in check.
While Nomura analysts see a brighter second-half than the first, Selena Ling, an economist at Oversea-Chinese Banking Corp. in Singapore, conversely sees challenges mounting as the year goes on. A big part of her regressive-outlook view is a rocky Fed transition amid further balance-sheet trimming and the potential for the central bank to move beyond neutral rates.
INFLATION SURPRISE?
Economists are seeing a quiet rise in inflation for much of Southeast Asia next year.
Just the Philippines will be spared, according to Bloomberg surveys. Central bankers in the Philippines just slashed their inflation forecasts, seeing a continued calm for oil prices and relief from legislation that eases rice import restrictions.
Could the diminished expectations expose some analysts to a shock in price growth that leaves some central bankers behind?
It’s a risk worth watching, especially as the relatively low interest rates in much of the region have left the Philippines with a negative real rate, and Thailand’s close to zero. — Bloomberg

No ghosts are needed when the monsters are real

By Nickky F.P. de Guzman, Reporter
Movie Review
Aurora
Directed by Yam Laranas
EVEN WITHOUT the ghosts in it, Metro Manila Film Festival’s Aurora is a horror story: a harrowing tale of human greed.
Starring Anne Curtis as Leanna, the film tells the story of a ship called Aurora which sinks off Batanes after it hits a huge rock.
Leanna owns an inn just few kilometers away from the shipwreck, which becomes a temporary sanctuary for the families who are looking for their loved ones’ remains.
Days later, a storm is about to pass Batanes. The families leave Leanna’s inn, but before leaving she’s told that they will pay her P50,000 for every dead body she finds.
Without any other source of income and with the moral obligation to help search for the remains, Leanna agrees to the deal. She seeks the help of the fisherman Eddie (Allan Paule) and her former lover Ricky (Marco Gumabao) to find the trapped bodies.
Aurora, like any typical scream-filled movie, has all the ingredients of a horror film: some noir scenes, chilling sound effects, and ghosts and spirits that appear out of nowhere. It employs few jump-scares that are aided by camera tricks and music scoring. Some of the special effects can pass but others don’t, like a huge wave that engulfs the ship, or the shipwreck ablaze. It takes major on-screen convincing that Aurora really did crash into a boulder.
But as mentioned, even in the absence of these, Aurora is a horror story, a disgusting tale of human greed.
As the narrative moves forward, the audience is told that Aurora sank because it was overloaded. If one had the money to pay for the ticket, they could come aboard.
The shipwreck’s sole survivor tells of his experience: they were in like sardines and the ship experienced mechanical difficulties. From the ship owner and the captain, to the coast guard and crew members, the culture of accommodating many passengers is the norm. “It’s business,” said the survivor.
Screenwriter Gin de Mesa has said that she was inspired to write Aurora by true stories of sea tragedies like MV Doña Paz. Aurora is directed by her husband, Yam Laranas.
More than the spirits in the story, it’s the business behind the disaster that is scary because this happens in real life. While there’s nothing novel in Aurora and its story, it’s good to be reminded of the lesson of avarice during Christmastime — and beyond.
MTRCB Rating: PG

It takes a century to make this drink

THERE have been just a handful of “cellar masters” who have created Remy Martin’s Louis XIII, the liquor Paul-Emile Remy Martin began to make in 1874, and which was named to honor French king. Cellar masters are tasked to choose the best eaux-de-vie, or “water of life,” the selection of blends from which to create a Louis XIII. To do this, they must sift through an extensive range of choices, sampling the various eaux-de-vie produced by winegrowers and distillers around Grande Champagne in Cognac each year, and setting aside those which they deem as having the best potential for aging.
The selected eaux-de-vie are briefly stored in new oak casks, then are moved to older oak barrels, where they sit for 40 years. The next cellar master will then have to decide if the eaux-de-vie still needs time to mature, or if these can be transferred to 150-year-old casks, where they are left to age some more. It takes four generations of cellar masters (each of whom must pick up to 1,200 eaux-de-vie), around a century to produce a batch of Louis XIII.
The present cellar master, Baptiste Loiseau, has recently picked what he considered were the best eaux-de-vie for his successors to work with in the coming decades. But Mr. Loiseau is unlikely to taste the fruit of his labor in its final form. No cellar master ever did.
Uncorking a decanter of Louis XIII is no small occasion then, and it was something Remy Martin, through brand ambassador Florian Heriad Dubreuil, recently did for some guests in Manila. During the activity, Mr. Debreuil said opening a bottle of Louis XIII starts by pulling the string that lifts the foil seal away, then carefully removing the cork stopper — which should be immediately replaced by a crystal bottle stopper. Once opened, the bottle should be finished “within a few weeks.” According to Mr. Debreuil, this is especially crucial when the bottle is already halfway empty. Because it is at this point, he explained, when oxidation begins, and this affects the taste of the cognac.
In drinking Louis XIII, Mr. Debreuil said it is best to start with a small amount; this lets one’s palate get used to the taste of the liquid. Succeeding sips will then reveal complex flavors and aromas like myrrh, walnut, dried roses, plum, honeysuckle, figs, passion fruit, even cigar box and leather, he said.
Mr. Debreuil, a fourth-generation member of the family that owns Remy Martin (his great grandfather, Andre Renaud, acquired E. Remy Martin & Co. S.A. in 1924), noted cellar masters must use 1,200 eaux-de-vie to “ensure the quality and taste of each decanter of Louis XIII” are uniform. Using this many, he explained, allows the cellar master to adjust the quantity of each eaux-de-vie that goes into the cognac, compensating for the difference in harvests on some years. Which can be expected, given there is a century’s worth of harvests involved in the process.
As Louis XIII global executive director Ludovic du Plessis put it; “To drink Louis XIII is to drink time.” — Brian M. Afuang

It happened one night

By Zsarlene B. Chua, Reporter
Movie Review
The Girl in the Orange Dress
Directed by Jay Abello
FILIPINOS love love stories, So it comes as no surprise that this year’s Metro Manila Film Festival had three romantic entries: Mary, Marry Me by Paul Soriano, One Great Love by Eric Quizon, and the focus of this review, The Girl in the Orange Dress by Jay Abello.
The title is a very intriguing — this writer immediately thought of the infamous “girl in the red dress” from Steven Spielberg’s Schindler’s List (1993). But unlike the war drama, The Girl in the Orange Dress (TGITOD) is a romantic comedy about a woman who, after a drunken night, wakes up in bed with the hottest male celebrity in the country, Rye del Rosario (Jericho Rosales).
This one-night stand then sets of a paparazzi manhunt on a nationwide scale.
Anna (Jessy Mendiola Tawile) reluctantly goes to a house party with her friends — one of them, Kakai (Maria Sophia “Ria” Atayde), is adamant about meeting Rye as she says the fates have willed it for them to meet and fall in love.
As fates would have it, it is Anna who ends up in Rye’s bed with almost no recollection of what happened while the entire country goes crazy trying to find out who is “the girl in the orange dress” who managed to capture the hottest bachelor ever.
The entire film takes place on one day which Anna and Rye spend trying to avoid the bloodhounds and Anna tries to hide the hook-up from her friends, especially Kakai who’s also the president of the Rye del Rosario fan club.
Immediately The Girl in the Orange Dress makes it clear that it wants to follow in the footsteps of uber-successful romcoms of yesteryear such as the 2014 MMFF’s breakout hit English Only, Please and 2017’s All of You, both of which were directed by Dan Villegas, and both of which starred Jennylyn Mercado and Derek Ramsey.
While the effort to become a cult classic is appreciated, this writer feels TGITOD ultimately falls short — the emotional yet charming scenes which are meant to show how imperfect people fall in love fall flat, likely because it is hard to believe that the two protagonists can fall in love in the span of a night and a day.
In all fairness though, the scenes with the friends at the end are suitably touching and feel real, unlike the almost-forced love story Anne and Rye are telling.
If you want a more grounded tearjerker, this writer recommends watching the short film Kasilyas by Leslie Ann Ramirez of Bulacan State University, which is shown before Orange Dress. The short film is about a janitor who raises his mute daughter inside a restroom cubicle. It destroyed me emotionally.
Anyway, I digress.
I have issues with the film’s storyline (it is completely shallow) and how blasé they treat rape jokes (there is an elevator sequence I find objectionable) and sexual harassment (a tango teacher who slaps Rye’s butt because “he’s cute”), the latter two were things I felt could have been cut out of the film entirely.
I also did have an issue with how overexposed the hotel is in the film — I didn’t think the name “AG New World Hotel” (the film was set in the New World Manila Bay Hotel in Manila) needed to be repeated a hundred times, especially since the film is only an hour and a half long.
Mr. Rosales basically plays himself, a handsome actor, while Ms. Mendiola is a doe-eyed ingenue who suddenly has hang-ups against famous people — a lot of the time her acting fell flat although she was pretty good in the tango sequence.
The film isn’t without its charms: Sheena Halili, who plays Anna’s ditzy friend Sasha, was the film’s biggest laugh factory; and the sudden escape/heist sequence was enjoyable.
And then there is the cinematography which had a lot of close-ups, and Ms. Mendiola’s wardrobe (all three pieces) was pretty. And I do want her orange dress, which, after spending an entire night on the floor of a hotel room, had nary a wrinkle.
So there, take a cue from the father who came with his family to watch the film whose reaction to it was a confused “I think I enjoyed it? I think I enjoyed it.” Watch The Girl in the Orange Dress knowing that you HAVE to enjoy the film because ticket prices aren’t cheap.
MTRCB Rating: PG

Manila Water-led group bags Nueva Ecija project

MANILA WATER Co., Inc. and its two consortium partners have been awarded a 25-year contract to develop the water district of San Jose City in Nueva Ecija, the Ayala-led listed company said on Wednesday.
Manila Water told the stock exchange that it had received the notice of award from the San Jose City Water District-Nueva Ecija (SJCWD) “for the implementation of the joint venture project for the design, construction, improvement, upgrade, rehabilitation, maintenance, operation, financing, expansion, and management of the water supply system and the provision of water and sanitation services.”
Its partners in the consortium are its wholly owned subsidiary Manila Water Philippine Ventures, Inc. (MWPV) and Tubig Pilipinas Group, Inc. (TPGI), a company whose founders also have development projects in the energy sector.
Manila Water estimated the project will entail a capital expenditure budget of over P1.399 billion over the 25-year period.
By the 25th year, the San Jose water project is estimated to have a billed volume of about 21 million liters per day.
Manila Water said upon the completion of the conditions precedent specified in the notice of award, the consortium partners and the water district would enter into a joint venture agreement that will grant them “as contractor to perform certain functions and as agent for the exercise of its right and powers, the sole right to develop, manage, operate, maintain, repair, refurbish and improve, expand and as appropriate, decommission, the facilities in the service area, including the right to bill and collect tariff for water and sanitation services supplied in the service area of SJCWD.”
The award follows Manila Water’s disclosure on Nov. 16 that MWPV and Tubig Pilipinas had agreed to form a joint venture company (JVC) to handle the water supply of Malasiqui, Pangasinan. MWPV and TPGI will own 50% and 50%, respectively, of the JVC’s outstanding capital stock.
Manila Water and its unit MWPV on Nov. 16 also announced the signing of a joint venture agreement with Ilagan City’s water district for a bulk water supply project, which includes water system expansion and septage management.
Manila Water also received on Nov. 27 the notice of award from the Lambunao Water District for a joint venture for the design, construction, rehabilitation, maintenance, operation, financing, expansion, and management of the Iloilo town’s water supply system.
It also received on the same day a similar notice from the municipality of Calinog in Iloilo province. — Victor V. Saulon

An all-star cast in a film on the same old things

By Zsarlene B. Chua, Reporter
Movie Review
Fantastica: The Prince, The Princess, and the Perya
Directed by Barry Gonzales
THIS year, Jose Marie “Vice Ganda” Viceral’s entry to the Metro Manila Film Festival (MMFF) might have avoided the overly obvious product placements of his previous outings, but the people behind the film still made sure their film, Fantastica, would suck in all that blockbuster moolah by stuffing in as many big stars and cameos as they could in the almost two hour-long film.
Fantastica, a fantasy family drama directed by Barry Gonzales stars Vice Ganda as Belat, the daughter of perya (carnival) owner and tightrope performer Fe, played by Jaclyn Jose.
The film’s backstory starts a few years earlier when the carnival Perya Wurtzbach (a play on the name of 2015 Miss Universe Pia Alonzo Wurtzbach), was a very successful venture, attracting thousands every night as the masses come to see Fe perform her death-defying tightrope routine. But a freak accident ends Fe’s performance days and Belat tries to take up the reins and run the carnival. Fifteen years later, the carnival is facing bankruptcy and is threatened by Gang Nam (Ryan Bang) and Dong Nam (Jose Sixto “Dingdong” Dantes III) who want to buy the carnival and create a concert ground in its place. Dong Nam was Belat’s childhood friend who has lived in South Korea since the accident.
While Belat stands her ground in the real world, she gets roped into Prince Pryce’s (Richard Guttierez) mission to free the land of Fantastica from the hands of the fairy godmother (Krysta Elise “Bela Padilla” Sullivan) who made the once-happy fantasy land into a desolate wasteland where its citizens are forced to smile all day long.
The Prince, Belat, her assorted brothers and friends — and for some reason, Dong Nam — decide to band together to find the three princesses: Maulani (Marydale “Maymay” Entrata), Ariella (Kisses Delavin) and Rapunselya (Loisa Andallo) who were banished to Belat’s world.
But here’s the catch, in order to get back to Fantastica, the characters need to collect 10,000 “claughters” (a portmanteau of claps and laughter) and the only way to do that is to open the carnival once more and create a “perfect” show to get those claps and laughter.
(Warning: mild spoilers ahead.)
The movie’s premise and sheer starpower guarantee the film will be a blockbuster, but if you’re expecting something new from Mr. Viceral’s yearly MMFF entry, you’re bound to be disappointed as it is more of the same: innuendos (which makes one question why it’s rated Parental Guidance) and his usual insult comedy.
The crowd of 20 people I watched it with — to be fair, I did watch it at 10:30 a.m. in Ortigas — were laughing at several scenes and were completely silent in others, especially during the jokes where Mr. Viceral pokes fun at the appearance of his co-stars.
It’s not all bad though, as the opening sequence by El Gamma Penumbra — the shadow dance group which won 2015’s Asia’s Got Talent — was decidedly inspired, and the spoofs of romantic films like Hows of Us were spot on and the jokes landed beautifully.
The best jokes were those that broke the fourth wall.
This is Mr. Gonzales’ debut film and it was a decent first film by a director who is very much aware of what kind of film it was meant to be.
Yes, the editing is choppy and sometimes the scene changes give you whiplash, but if there’s anything to take away from this film, it’s that the cast (the multitude of them) had good fun doing Fantastica and it shows: it’s a feel-good if mind-numbing film for people who want to shut down and get a few laughs here and there.
MTRCB Rating: PG

Converge ICT eyes IPO in next 5 years

By Denise A. Valdez, Reporter
CONVERGE ICT Solutions, Inc. said it is looking to tap more sources of funding for its expansion plans, which includes an initial public offering (IPO) within the next five years.
Converge Chief Operating Officer Jesus C. Romero told BusinessWorld that Converge remains bullish on the telecommunications industry in the country.
“So far we’ve been making a profit every year. Kaya lang ngayon [But now], to really become a solid player, we do need to spend more money. That means also expanding our sources of funding,” he said on the sidelines of a company event at the Edsa Shangri-La hotel in Mandaluyong on Dec. 5.
At present, Mr. Romero said the fiber internet provider is getting most of its funds from vendor financing, supplier credit, some loans and equity.
“We plan to list because one, it’s an obligation, and also to unlock the value of the company. But probably not next year. We need to do a lot more work to make the company more attractive to investors,” he said, adding that he hopes the company’s IPO will be done in the next five years or less.
“I think right now we’re already attractive, but I think if we can continue to double every year, our value increases,” Mr. Romero said.
Last August, Converge chief executive officer Dennis Anthony H. Uy told reporters the company was hitting above P5 billion in revenues so far this year. He said last year’s revenue was above P2 billion.
Mr. Romero said revenues are driven by mostly enterprise customers, but residential customers provide the largest volume.
“You really have to watch your costs. Our 25 Mbps (megabits per second) plan is the best in the industry, it’s only P1,500. It’s not as if we’re making a lot of profit on that. We make profit when we have volume, and we provide a stable service,” he said.
Mr. Uy had said Converge has about 200,000 subscribers as of August, and the target is to reach 7 million in five years.
Mr. Romero said the subscriber base is set to double by the end of this year from last year, and the target for next year is to double the figure again.
Converge committed to a five-year, $1.8-billion investment for its nationwide rollout in August, partnering with South Korea’s KT Corp., US-based Tyco Electronics Subsea Communications LLC (TE SubCom) and local firm Fibernet Konstrukt Corp.

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