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T-bills may fetch higher yields

GOVERNMENT SECURITIES on offer this week are expected to fetch higher yields as investors likely price in the possible cut in reserve requirements and anticipation of a retail treasury bond (RTB) offering.
The Bureau of the Treasury (BTr) is offering P20 billion worth of Treasury bills (T-bill) today, broken down into P6 billion each for the three- and six-month instrument and another P8 billion in one-year papers.
The BTr will also offer on Tuesday fresh seven-year Treasury bonds (T-bond) amounting to P20 billion.
Traders interviewed before the weekend said the T-bills on offer today will likely move sideways, with one saying the rates will move 5-10 basis points (bp) higher from the previous auction.
The government decided to fully award the T-bills on offer last week, raising P20 billion as planned versus total tenders amounting to P33.657 billion.
Rates of the three-month, six-month and one-year instruments slid 2.2-5 bps to 5.484%, 5.867% and 5.924%, respectively.
For the T-bonds, the trader expects the average rate to land between 6.25% and 6.375%, while another trader gave a 6-6.15% range.
The government raised P15 billion as planned from its auction of seven-year T-bonds when it was last issued in December. It fetched an average rate of 7.09%, 11.6 bps higher than the previous offer.
The other trader said rates will be “a bit higher” this week in anticipation of the RTB sale.
“Last week, there’s an announcement of possible RTB issuance soon. So dealers will keep that in mind coming into this week’s auctions,” the trader said in a text message.
In June last year, the government offered three-year retail bonds, issuing P121.765 billion with a coupon rate of 4.875%.
“The seven-year bond auction may receive less demand or investors may demand 5-10 bps higher.”
“Aside from the possible RTB issuance, the market will also look out for possible cut in reserves,” the first bond trader said.
Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, said on Thursday that the Bangko Sentral ng Pilipinas (BSP) is expected to announce a reduction in reserve requirement ratio (RRR) at an off-cycle meeting this month.
However, BSP Deputy Governor Diwa C. Guinigundo highlighted the need for “tight” liquidity conditions before further reserve requirement cut can be considered.
Meanwhile, international banking giant HSBC said it would be prudent for the BSP to hold off from trimming reserve requirements for banks until inflation is “firmly within its 2-4% target.”
For this quarter, the government is planning to borrow P360 billion. Some P240 billion will be borrowed this quarter through 12 weekly T-bill auctions. On the other hand, P120 billion worth of T-bonds will also be issued through six fortnightly auctions.
The state plans to borrow P1.189 trillion in 2019 to fund its spending plans. Of the amount, 75% will be sourced domestically while the remainder will be from foreign creditors. — Karl Angelo N. Vidal

Ayala unit sees steady flow of ‘contestable’ customers

By Victor V. Saulon
Sub-editor
AYALA-LED AC Energy, Inc. has started supplying electricity to customers with an average monthly consumption of at least 750-kilowatts (kW) for the past year, moving forward the government’s goal of cutting power prices through greater retail competition.
“We’re happy to note that there has been a steady flow of ‘phase 2’ customers who are now able to enjoy competitive rates from retail suppliers,” said Eric T. Francia, AC Energy president and chief executive officer, via e-mail.
He said the company was able to serve the 750-kW customers who are able to obtain a certificate of contestability from the Energy Regulatory Commission (ERC).
The second phase of the rules on retail competition and open access (RCOA) allows a retail electricity supplier (RES) to sell directly to “contestable” customers with a smaller power consumption.
The first phase limited the qualified customers to those using an average of at least 1-megawatt (MW) in the past year. Contestable customers have the power to buy electricity directly from a RES and away from a distribution utility, which previously served them as captive customers.
Provisions of the RCOA rules had been questioned before the Supreme Court by some sectors, including educational institutions, stalling the full implementation of the regulation, which is called for under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA).
The high court issued a temporary restraining order on the implementation of the crucial provisions of RCOA, including the lowering of the threshold to 750-kW and the issuance of new licenses to retail electricity suppliers.
The Department of Energy (DoE), however, issued a circular to make the RCOA rules “voluntary,” skirting the mandatory requirement of the rules that were questioned before the Supreme Court.
Retail electricity suppliers were initially hesitant to sell to those consuming power below the 1-MW threshold, but based on AC Energy’s response, contestable customers are now being certified by the ERC as required under RCOA rules.
David Mikel Aboitiz, manager for market strategy at Aboitiz Power Corp., earlier said in an interview that the company had started supplying to the 750-kW customers.
“There have been some 750 kW and above customers, right below the 1 MW between where it is, that have been able to sign up. I’m not sure exactly where it stands at the moment in terms of [them] being able to get those certificates of contestability,” he said.
“I believe that we’ve demonstrated ourselves since the beginning of open access that we’re able to secure those clients, regardless if it’s 1 MW or a hundred. We treat everybody the same,” he added.
Based on data from the ERC, AC Energy is one of three Ayala-led companies in the RES business. The other two are Ecozone Power Management, Inc. and DirectPower Services, Inc.
As of September 2018, AC Energy had a total of 71 customers with a total consumption of 106.43 MW, taking the lead for the Ayala group ahead of Ecozone Power’s 102.40 MW and DirectPower’s 95.93 MW.
As group, the Ayala companies have a combined market share of 10.6%, trailing Manila Electric Co.’s 31.56% share from its three RES units and the Aboitiz group’s 19.67% from five different entities.

Bambanti Festival 2019:From Aliw Awards to a Guinness World Record

A SCARECROW is a human-like figure that guards crops from marauding birds, and is usually made of sticks and old clothes stuffed with straw, held up by a frame over a field — and can be a farmer’s best friend. The province of Isabela celebrates these farmer’s helpers — known in the province as bambanti — with a festival every fourth week of January.
Isabela holds the Bambanti festival in thanksgiving for the previous year’s harvest. The celebrations includes a trade fair, parades, street dancing, and competitions.
This year there were 34 booths at the provincial capitol where each municipality sold its specialties. Each booth was decorated with scarecrows, not just of wood and straw but also made with corn seeds, mung beans, rice, assorted vegetables, and bamboo.
The festival was introduced in 1997 during the term of former governor Benjamin Dy, and the first festivals were held in May — the province’s founding month.
When the current governor, Faustino G. Dy III, assumed office in 2011, a resolution was drafted to move the festival to January. “The reason why we separated it is not only to have its own identity, but of course, kasi laging napo-postpone (it was always being postponed) due to elections. So, we thought dapat magkaroon ng sariling (it should have its own) schedule,” the governor said during a press conference at his office during the festival on Jan. 24.
He added that it was set in the month of January due to good weather conditions.
“It’s always nice to start the year with a celebration of thanksgiving,” Antonio “Tonypet” Albano, vice-governor of Isabela added. “Since we are an agricultural province, maganda na ang symbol namin (it is appropriate that our symbol) would be the bambanti.”
The festival has received numerous awards including the Aliw Award for Best Festival Practices and Performance from 2015 to 2017 and the Aliw 2018 Hall of Fame Award for Best Festival Practices and Performance.

RECORD SETTING
This year’s festival, with the theme “Tagumpay ng Pusong Isabela” (Victory of Isabelan Heart), was held from Jan. 21 to 26.
Aside from the annual cooking competition and street dance contest, the highlight of this year’s festival was setting the Guinness World Record for the “largest gathering of people dressed as scarecrows.”
During the street dance parade and dance showdown, performers from 25 contingents delighted the audience at the Isabela Sports Complex with their energetic moves. Halfway through the dance showdown, the official Guinness World Record adjudicator Paulina Sapinska confirmed achievement of a new world record and awarded a certificate to the governor and vice-governor.
“To break this record, we needed a total of 250 participants dressed as scarecrows. Everyone needed to stay in full costume for a total of five minutes. After a lengthy verification process, I can confirm that there was a total of 2,495 individuals dressed as scarecrows. Meaning, this is a new Guinness World Record title,” Ms. Sapinska told the crowd.
The municipality of Alicia bagged first prize for Best Street Dance Contingent, while the municipality of Echague bagged first prize for the Best Dance Showdown Contingent.
At the Makan Ken Mainum (food and drink) contest, 28 contingents were tasked to innovate their own longganisa (sausage) dish. The cooking contest is an initiative of the governor’s wife, Mary Ann Arcega-Dy, through the Isabela Green Ladies Organization, to give opportunity for the various groups to explore their creativity in preparing dishes using ingredients and produce from their own towns.
The first prize of the Best Longganisa Mix, Best Makan ti Isabela and Best Mainum ti Isabela were all awarded to the municipality of Tumauini.
“Kaya namin ginawa yung contest na ’to (The reason why we hold the contest is), because I know that it will help the women. Alam naman natin na sa (We all know that in the) provinces hindi lahat ng kababaihan nagtratrabaho (not all women go to work). They usually stay at home. So, kahit nasa bahay lang sila (even if they’re at home), they can do business,” Mrs. Dy told BusinessWorld at the sidelines of the competition.
The final competition for this year’s festival was the Festival King and Queen costume show. The participants donned colorful costumes that represented their respective municipality’s local festivals. The designer from the municipality of Quezon was awarded the first prize for Best Costume of Festival king and Festival Queen; while the first prize awards for Festival King and Festival Queen was awarded to the representatives from the municipality of Echague.
As for the awards for the Bambanti Village, the first prize for Best Agri-ecotourism booth and Best Giant Bambanti Installation were awarded to the city of Cauayan for its use of painted bamboo in the image of the city’s patron, La Virgen del Pilar.
Cauayan city was named the festival’s overall winner followed by the municipalities of Echague and Alicia in second and third place, respectively. — Michelle Anne P. Soliman

Imports of Japanese pork banned as more cases of African Swine Fever emerge

THE Department of Agriculture (DA) is set to ban pork imports from Japan due to the discovery there of African Swine Fever (ASF), Secretary Emmanuel F. Piñol said on Sunday.
“At 12 noon today (Sunday), I alerted the Bureau of Animal Industry (BAI) through Undersecretary for Policy and Planning Segfredo Serrano to immediately impose a ban on the entry of pork and other pork products from Japan following reports of its spread in that country,” Mr. Piñol said in a social media post.
Japan News reported that ASF was found in four separate cases in Japan on Jan. 12 and Jan. 16. The report also indicated that seven cases have been confirmed in Japan from October and January involving pork inspected at domestic airports.
“A written formal directive will be issued shortly on the imposition of the temporary ban against the entry of pork and pork products from Japan which will be in effect while our quarantine officials are validating the reports with the OIE or the World Animal Health Organization,” Mr. Piñol said.
“In view of this, all quarantine officers in ports of entry all over the country are directed to implement this directive immediately. The quarantine officers are also advised to review their quarantine protocols including the foot baths installed at the ports of entry and the monitoring of all meat products being brought into the country by tourists,” Mr. Piñol added.
Other countries banned from exporting pork and pork products to the Philippines are China, Hungary, Belgium, Latvia, Poland, Romania, Russia, Ukraine, Bulgaria, the Czech Republic, Moldova, South Africa, and Zambia. — Reicelene Joy N. Ignacio

Yields on gov’t debt slip on increased demand

By Mark T. Amoguis
Researcher
YIELDS ON government securities moved sideways last week on better-than-expected January inflation data and the central bank’s decision to keep rates steady.
GS yields — which move opposite to prices — slightly slipped by a week-on-week average of 1.6 basis points (bp), according to the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s Web site as of Feb. 8.
“Government securities yields were slightly lower [last] week on increased demand from end clients and market participants, who were emboldened by a better than expected inflation figure at 4.4% versus the 4.5% market consensus,” said Carlyn Therese X. Dulay, first vice-president and head of Institutional Sales at Security Bank.
“The slightly lower inflation print led to speculation that the reserve requirement cut would happen sooner rather than later,” she added.
Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, said: “Decelerating inflation and BSP’s (Bangko Sentral ng Pilipinas) pause all helped push buying interest in the GS market.”
The increase in prices of widely used goods continued to cool for the third straight month in January to 4.4% from 5.1% in December but faster than 3.4% in January 2018 due to slowing food costs.
The January result was better than the 4.5% median estimate in a BusinessWorld poll of 12 economists and analysts and within the BSP’s 4.3-5.1% forecast range for that month.
January’s inflation print was the slowest in 10 months or since the 4.3% pace recorded in March last year.
As widely expected, the BSP’s Monetary Board kept its policy rates steady for the second straight meeting last Thursday at 4.25-5.25% range.
The central bank also revised lower its inflation estimate this year to 3.1% from 3.2%, while it maintained three percent forecast for next year.
On the other hand, big banks’ reserve requirement ratio (RRR) was left untouched by the BSP on Thursday, but some analysts expect reserve cuts will come before any changes to the key policy rates.
To recall, the central bank cut RRR in two moves last year to 18%, which it described as “procedural” changes to reduce the cost of borrowing money in the financial system. This forms part of BSP Governor Nestor A. Espenilla, Jr.’s long-term goal of bringing down the RRR to single-digit levels when his six-year term ends in 2023.
A bond trader interviewed on Friday said that the market reacted to the better-than-expected January inflation.
However, the bond trader said that much of the gains last week were wiped off before the weekend on speculations of a planned retail Treasury bond (RTB) sale.
Security Bank’s Ms. Dulay concurred: “Later in the week, yields increased by as much as 30 basis points from the lows established at the peak of the rally after a rumor of a possible (RTB) circulated.”
“Investors are now wary for a possible RTB given reports that the BTr (Bureau of the Treasury) was mulling issuance,” ING’s Mr. Mapa said.
Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC), said: “Proposed (RTB) issuance may also increase supply of government securities (though may be seen as a good move to lock long-term government borrowings at lower interest rates/borrowing costs).”
At the close of trading on Friday, GS yields ended mixed across the board with rate on three-month debt inched up by 0.4 bp to 5.440%, while six-month and one-year papers dipped by 2.3 bp and 3.7 bp, respectively, to 5.790% and 5.940%.
The belly of the curve saw rates on two-, three-, four-, and five-year bonds went down by 6.7 bp, 10 bp, 10.5 bp, and 8.3 bp, respectively, to 5.947%, 5.970%, 6.001%, and 6.048%. Seven- and 10-year bonds, meanwhile, increased by 0.1 bp and 7 bp, respectively, to 6.182% and 6.326%.
At the long end, yields on 20- and 25-year debts rose by 9.1 bp and 7.3 bp, respectively, to 6.611% and 6.699%.
For this week’s trading, RCBC’s Mr. Ricafort said that “short-term local interest rates could continue to go down and catch up with the bigger cumulative declines in long-term local interest rates.”
The bond trader said the market will watch out for further details of the rumored RTB sale.
“Also, will the timing of RTB sale force BSP to reduce RRR? Those are the factors we’re looking into [this] week,” the bond trader said.
“[M]arket players will be looking to the upcoming auction schedule for [this] week for direction as the rally appears to have ran out of steam, awaiting fresh leads and a possible easing move from the BSP,” ING’s Mr. Mapa said.
Security Bank’s Ms. Dulay expects “GS levels to move depending on the results of Tuesday’s seven-year bond auction.”
The Bureau of the Treasury will offer Treasury bills worth P20 billion today and fresh seven-year debt amounting to P20 billion tomorrow.

Modernizing a ’70s aesthetic

CLASSIC designs start off as the trends in their time. When revived, these may elegantly evolve and be adapted to the present aesthetic.
Italian watch manufacturer D1 Milano was born in Milan, Italy in 2013. The brand’s 26-year-old founder and CEO Dario Spallone began working on it as a business concept while studying at the Bocconi University of Milan. The brand expanded after it gained traction from the Bocconi University Business Incubator in 2014 — a workshop for start-up businesses.
It is now present in 28 countries and has its headquarters in Dubai and Hong Kong.
Martina Zonta, D1 Milano Sales Area Manager for Asia Pacific, noted that the brand is “not high-end where you spend a lot of money for” but it has “a high-end look.”
“They can spend a good amount of money for a reasonable high end-looking watch behind a lot of quality materials,” she told BusinessWorld of the brand’s design, during the launch at The Refined men’s grooming lounge in BGC, Taguig City on Jan. 30.
The watch’s design is inspired from the 1970s aesthetic where watches had a clean, slightly rounded square shape.
D1 Milano is launching four of its collections in Manila: the Polycarbon, Ultra Thin, P701, and the Super Slim.
The bestselling timepiece is the Polycarbon collection (P8,000 to P11,800) which has a thin and lightweight 40mm quartz with a black Luminova finish on the hands. It comes with either a silicone strap or polycarbon bracelet.
The Super Slim collection (P11,500 to P13,800), designed with a stainless steel 36mm or 40mm case, comes with interchangeable strap options such as Perlon, leather, or Milanese.
The Ultra Thin collection (P18,200 to P23,800) comes with Italian suede leather strap or a full stainless steel bracelet. It comes in 38mm or 40mm.
The P701 collection (P34,200 to P43,800) uses a 1.55mm stainless steel case with an automatic movement and is paired with either a rubber strap or stainless steel bracelet. It is available in either a skeleton or a solid black dial.
According to the Mr. Spallone, D1 Malino’s appeal is about sporting one’s attitude. “Someone who would wear D1 Milano is cool, who plays by the rules but has some unique detail that they like to look at that makes them stand out. We say people who wear our watches wear their attitudes, this is a watch that gives you social recognition even if it doesn’t cost $10,000. It’s not about the price,” he was quoted as saying is a press release.
“This is a watch that you can wear every day and don’t feel it, but at the same time it makes you proud because it differentiates you, it shows that you care about details, about trends about style.”
D1 Milano is available in Swissgear Greenbelt 1, Wristpod Uptown Mall, Robinsons Ermita, SM Megamall, Swissgear Shangri-La Mall, and SM North EDSA. — Michelle Anne P. Soliman

Bench founder Ben Chan plans to develop office tower in Clark Global City

THE COMPANY behind homegrown clothing brand Bench is planning to develop an office tower in Clark Global City, Mabalacat, Pampanga.
In a statement issued over the weekend, Global Gateway Development Corp. (GGDC) said it has signed a memorandum of agreement with Suyen Corp. for the sublease of a 2,886-square meter (sq.m.) property in Clark Global City.
Suyen Chairman and Chief Executive Officer Ben Chan said they plan to build an office tower for lease in the property, banking on the strong demand for office spaces in the rising business district outside Metro Manila.
“We’re bullish on the Philippine economy and seeing how it’s slowly but surely extending to key cities outside of Metro Manila,” GGDC quoted Mr. Chan as saying in a statement.
Suyen had developed Bench Tower, a mixed-use, high-rise building in Bonifacio Global City, Taguig. The 24-storey building houses the firm’s corporate offices and office spaces for lease.
“Our government has been working hard to promote Clark and to make it much more accessible. There’s a lot that’s been done to develop Clark and even more that can be done to help it reach its full potential, so it’s not hard to see it becoming the next big metropolis it’s poised to be,” Mr. Chan added.
GGDC has been partnering with several firms to develop parts of Clark Global City, in line with its vision to transform the former military base into a business district.
So far, the company has inked a sublease agreement with SM Prime Holdings, Inc. for retail, office, and hotel projects. It has also recently signed a memorandum of agreement with Century Properties Group, Inc., which plans to develop an affordable housing project.
“Through Clark Global City, we hope to attract more businesses and investors to expand in the Philippines and thereby create more and better employment opportunities for our countrymen. With our partners, we look forward to realizing our vision as soon as possible,” GGDC Chairman Dennis A. Uy said in a statement.
GGDC is a wholly owned unit of Mr. Uy’s property firm Udenna Development Corp. It took over Clark Global City in 2017, after it secured the lease rights for the 177-hectare property for the next 67 years.
Clark Global City has a buildable area of more than 109 hectares, which is envisioned to host top-grade office buildings, upscale retail outlets, academic centers, sports centers, an urban park, an integrated resort casino, as well as support services and amenities.
The property is also seen to benefit from the construction of several infrastructure projects, including the expansion of the Clark International Airport, the NLEX-SLEX Connector Road, the Subic-Clark Cargo Railway, and Philippine National Railway North Railway. — Arra B. Francia

Bill protecting agri reform beneficiaries hurdles committee

A BILL protecting the rights of agrarian reform beneficiaries (ARBs) entering into Agribusiness Venture Arrangements (AVA) has hurdled the House Committee on Agrarian Reform.
House Bill No. 9060, or the “Agribusiness Ventures Arrangements in Agrarian Reform Lands Act,” has been recommended by the panel to the Rules Committee for plenary action.
The measure is intended to ensure that “control over the lands awarded under the agrarian reform program shall remain always with the agrarian reform beneficiaries.”
This is to address the issue of landowners losing control and access after the takeover of their land’s management by agribusiness partners.
An AVA is an entrepreneurial collaboration between ARBs and private investors, such as growership, contract growing, marketing contracts, service contracts, build-operate-transfer, joint venture agreements and lease agreements.
If enacted, the bill, under Section 8, will prohibit agreements between ARB and investors that will result in the beneficiaries being relegated to minority stakes.
The same section will also void any provision that will allow the permanent takeover of the “management of agricultural production in growership contract or contract growing.”
It, however, will allow temporary takeovers, limited to farm operations, provided there is mutual agreement between the parties and the agreement lasts for one crop cycle.
Violators of this provision face three to six years of imprisonment. The same will be subjected to those found guilty of coercion to pressure ARBs to enter into or renew an AVA.
The agreement may be revoked once the AVA is no longer financially and economically viable, or due to gross violation of the terms and conditions of the contract.
AVA contracts may also be revoked when an investor fails to provide benefits and incentives stipulated in the contracts without reason. — Charmaine A. Tadalan

Peso seen to strengthen vs dollar this week

By Karl Angelo N. Vidal
Reporter
THE PESO is expected to strengthen further this week as the dollar will likely depreciate on expected dovish remarks from Federal Reserve (Fed) officials and potentially weaker US economic data.
The local unit ended last week at P52.07 versus the greenback, up 17 centavos from the previous close of P52.24, as investors took cue from the Bangko Sentral ng Pilipinas on inflation’s downward trajectory.
Week-on-week, the peso also strengthened from the P52.21-per-dollar finish last Feb. 1.
A market analyst said the dollar is expected to generally depreciate this week, although it may initially strengthen as investors might park their funds on safer currencies such as the greenback amid fears of a global economic growth slowdown.
“Recently, the European Commission trimmed its growth outlook for the eurozone economy to 1.3% in 2019 from 1.9% last year. Growth is expected to remain below the 2017 level until next year, when the economy is seen to expand by 1.6%,” the analyst said in an e-mail, adding that the lingering trade dispute between the US and China may keep demand for safe havens strong.
Trade talks between the world’s two largest economies will resume this week in Beijing, days before the March 1 deadline of its 90-day truce.
Towards the end of the week, the analyst said the peso is seen to recover, with the dollar shedding its initial gains on the back of expected dovish statements from US central bank officials and weak economic data.
The policy makers will likely amplify the central bank views communicated during its latest policy meeting, as Fed officials Jerome Powell, Michelle Bowman, Esther George and Loretta Mester are expected to reiterate the need to take a cautious approach to monetary policy due to signs of slowing growth.
Last month, the Fed opted to keep its borrowing costs stable, saying it will be more patient in raising interest rates amid conflicting signals on the US economic outlook.
“Supporting this dovish view, US consumer and producer price inflation reports for January 2019 are expected to show weaker readings,” the analyst added.
Meanwhile, a foreign exchange trader said on Friday the peso will “remain strong” this week, as market players await for the local trade data.
According to latest data, the country’s trade deficit narrowed in November to $3.9 billion from the record high of $4.08 billion in October, given that imports grew at a slower pace even as exports shrank.
For this week, the analyst expects the peso to trade between P51.70 and P52.40, while the trader gave a slimmer P51.90-P52.20 range.

Solar Philippines enters India market


SOLAR PHILIPPINES Power Project Holdings, Inc. has entered the renewable energy sector in India with the construction of a 500-megawatt (MW) solar farm, its top official said.
“We already have our first project in India,” Leandro L. Leviste, president of Solar Philippines, told reporters last week, but declined to give details because of the issues faced by his proposed minigrid franchise in the Philippines.
“Ayaw lang namin guluhin ang kuwento (We just don’t want to muddle the story),” he said, when asked to elaborate. “But this year we’ll have around 500 MW of projects in India.”
Mr. Leviste first disclosed in May last year his company’s plan to venture in India, which he described as having a favorable regulatory environment.
Asked about his company’s partner in India, he said: “We don’t do partnerships in India. The beauty of India is the very low barrier to entry to develop grid-connected power projects in solar parks, as what they are called, with land and transmission provided by the government.”
“So any company in the world, with no local ownership condition can come in and bill P2.00 per kilowatt-hour (kWh), and basta P2.00/kWh makakakuha ka ng kontrata (as long as it is P2.00/kWh, you’ll get a contract),” he added.
Mr. Leviste had said the solar power rates in India are in the range of P2 to P3/kWh, although the capacity at stake is in thousands of megawatts. That range compares to the P2.34 per kWh offered by his company to distribution utility Manila Electric Co.
“In the last tenders of India, they awarded more than a thousand megawatts to just one company in one go. So we’re hopeful that by bringing the cost of solar energy down to India levels in the Philippines, we’ll be able to convince utilities and policymakers to unlock that same volume,” he said in a previous interview.
He said every year, India awards around 20,000 MW of solar energy as the country targets to have a solar capacity of 100,000 MW by 2022.
For Solar Philippines, the target capacity in India is dependent on the number of contracts it signs in the Philippines as the balance of what has not been taken up of its solar panels will be filled by the overseas market, Mr. Leviste had said.
In the Philippines, the company has around 300 MW of solar energy, either operating or under construction, he said last year. He expected the number to reach 400 MW end-2018.
The company has a manufacturing plant in Sto. Tomas, Batangas that produced solar panels with an equivalent capacity of 800 MW in 2017. Its target output in 2018 was 2,000 MW. — Victor V. Saulon

Awit at Laro, Tesoros revive childhood games


BACK IN the days before digital games like Cooking Mama and Café World, kids would play and pretend to cook using luto-lutuan (toy cooking pots). Before Angry Birds crashed pigs into houses, kids used a tirador (slingshot). Before anyone played indoors with Wii Sports, games were played in the backyard or on the road in the absence of courts. Before strolling everywhere in search of Pokemon characters, there was hide and seek. But if we think all these are a thing of the past, Awit and Laro aims to prove otherwise.
In 2015, Creative Kids Studio — an art school founded by interior designer Bambi Mañosa-Tanjutco — held a fund-raising art exhibit called LARO (play). It was then that Ms. Mañosa realized that the children needed to learn the games first to have an idea for their artworks.
“We brought kids together to come up with a fund-raising exhibit thinking that all children knew Filipino games and play. I was surprised to find out they didn’t. How could they draw their art if they didn’t know what they were drawing? So, we had to teach them how to play. We created a play day where we taught all these Filipino games,” Ms. Mañosa told BusinessWorld on Jan. 31 at the Tesoros store in Makati City.
Ms. Mañosa’s project was eventually expanded to incorporate music with the childhood games. Awit at Laro aims to revive and reintroduce traditional Filipino toys, songs, and games to children.
“I think nowadays parents feel like there is really like a gap. The generation gap is getting wider and wider. So, I thought it would be a nice advocacy because not only is it raising funds for a cause, but, at the same time, it’s to bridge generations together,” she said.
This year, the project partners with Tesoros as its exclusive retail partner in promoting Filipino traditions and culture to all generations.
The centerpiece of the project is a 20-track album, made in collaboration with Filipino singers, containing rearranged traditional songs and songs about Filipino games which was released in October 2018. Sold alongside the album are redesigned Filipino toys such as Chinese garter, jackstones, lutu-lutuan, tirador, and sungka. Paintings on old doors by Filipino artists depicting the traditional games are also on display at the store.
“We asked different visual artists to do the rendition of Filipino games on the door [which] symbolizes ‘Let’s go outdoors and play.’ It was exciting. It was a different canvas,” Ms. Mañosa said, adding that the doors will be part of exhibitions in future events.
“Tesoros has always been an advocate for all things Filipino. What about Filipino habits that expose us not only to things but also to culture?” Beatrice Tesoro-Arit told BusinessWorld about the partnership.
“When Awit at Laro came, we were so excited to introduce a [brand] new experience to others. As an advocate of all things Filipino, we want to expose another generation to what it means to be Filipino [through] these games,” she added.
The album and toys are exclusively available in all Tesoros retail outlets.
Proceeds from their sale will benefit the rehabilitation of Museo Pambata’s playground, Tukod Foundation, which is an organization supporting the advancement of Filipino art and design, and UNICEF Philippines. — Michelle Anne P. Soliman

Affordable organic certification bill elevated to Senate plenary

SENATOR Cynthia A. Villar has presented to the plenary a bill establishing a more affordable system for certifying organic products.
Senate Bill No. 2203 amends Republic Act No. 10068 or the Organic Agriculture Act of 2010 to introduce the Participatory Guarantee System (PGS) in which associations and groups involved in the organic agriculture sector conduct the certification process themselves.
At present, the law only allows the certification of organic farms of small farmers by third-party certifiers to facilitate the labeling and marketing of products to markets.
The present system has been deemed costly among farmers who have to pay P42,000 to P150,000 per crop in order to be certified, according to Ms. Villar, chair of the Senate committee on agriculture and food.
“Ironically, this certification requires big financial capital which is not affordable for small famers. Aside from the fees for certification, it requires a significant financial outlay for establishing the required facilities, maintaining cleanliness and orderliness in the farm, and keeping an updated record of farm activities,” she said in her sponsorship speech.
“Hence, more farmers are not able to have their farms and products certified, which puts them at a disadvantage with conventional food products because of the lack of the organic label,” she added.
Under the proposed measure, a group under the PGS requires at least five members practicing organic agriculture and coming from various farms in the locality. The group must be registered with the Bureau of Agriculture and Fisheries Product Standards (BAFPS).
When conducting the certification process, the bill requires the PGS group to adhere to the Philippine National Standards for organic agriculture and to the standards provided by the International Federation of Organic Agricultural Movement (IFOAM).
Ms. Villar said that the PGS will only cost farmers P600 to P2,000.
Associations and groups under the PGS can be created in the municipality or city level, provincial level, and national level. Products certified by these groups can be traded only on the domestic market.
The bill also gives an incentive to organic agriculture producers who have been certified by PGS to be compliant with the standards for five years. He or she will be eligible to be given a full subsidy for the cost of an international certification accreditation.
The measure also increases private-sector participation in the National Organic Agricultural Board (NOAB) by including two representatives nominated by the associations and groups under PGS. The NOAB is the policy-making body under the Department of Agriculture (DA) tasked to implement the National Organic Agricultural Program.
“Providing a low-cost and efficient alternative to third-party certification is seen as a solution to boost the participation of small farmers and the development of organic agriculture in the Philippines,” Ms. Villar said. — Camille A. Aguinaldo

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