BusinessMirror - November 3, 2014

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three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

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rissa mananquil trillo D

EAR God, we read, study and meditate Your word in the Bible. It is the core of our work in the new evangelization. We read the Bible to help us grow in holiness and discipleship. We commit ourselves to live the word in thoughts, words and actions. We try to focus on the methodology of liturgical Bible study. By the help of the Holy Spirit we can claim the Good News of salvation in Christ. May the new evangelization lead us to a greatest height of knowing, serving and loving God all our life. Amen.

LITURGICAL BIBLE STUDY, FRANK P. AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Life

NEW SEASON, NEW DESIRABLES »D4

BusinessMirror

Monday, November 3, 2014

Rissa Mananquil Trillo: Model, mom, mogul

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THE women driving the local cosmetics brand Happy Skin: Jacqe Yungtian-Gutierrez (left) and supermodel Rissa Mananquil Trillo.

TOTA PULCHRA MISS CHARLIZE

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OR the millions of Filipino women who live in a culture that dictates beauty and nubility as the norms, a little help with makeup to attain these attributes wouldn’t hurt, would it? A young cosmetics brand is generating industry buzz, earning street cred and igniting a shopping frenzy, and its perky name is Happy Skin.

When Happy Skin first launched on October 18, 2013, it started with five counters. In less than a month, local luxury department store Rustan’s and leading cosmetics hub Beauty Bar welcomed Happy Skin into their stores. In six months, the number of counters had increased tenfold. Happy Skin is now in 50 counters across the Philippines.

Co-created by supermodel Rissa Mananquil Trillo, Happy Skin is “an approachable, fun and friendly brand, that’s why we went for pretty packaging and witty product names. No intimidating black and white packaging. Happy Skin is all about makeup for real women. It’s not telling women that they need three steps or four layers of products to achieve flawless skin or the perfect blush on the cheeks. It’s telling them they can achieve it with just one product—but the right one,” Rissa shares.

The idea behind the names is that Happy Skin is a persona and she’s talking to you through the product names. For example, a Happy Skin girl would be able to say: Shut Up & Kiss Me, or Don’t Get Mad, Get Even! On the other hand, all the names for the lippies celebrate happy occasions in a woman’s life: First Kiss, Just Married, My First Time, Summer Fling, Crushing On You and Girls Night Out. “We wanted to also make sure that our packaging is a joy to whip out of your kikay kit, something that brings a smile to your face because you remember not just how pretty the products are but how well they work for you, too,” Rissa says.

Like supermodels Iman, Tyra Banks and Anna Bayle, it has always been Rissa’s dream to have her own makeup line, but not the kind that merely attaches her name onto the packaging but the kind which allows her to be hands-on with creating, formulating and testing everything from the start. What fueled this dream was how hard it was to find good makeup when she started modeling 14 years ago. Even as a beauty columnist, Rissa’s always been proud to be brown and dreamed to create the perfect makeup line that would wonderfully celebrate the Filipino woman’s skin. Partnering with Jacqe Yungtian-Gutierrez, formerly with Unilever and a revered heavyweight in the skin-care industry, allowed her to make this dream come true and offer even so much more to make the Filipino woman feel effortlessly more beautiful.

“I’ve been modeling for more than a decade and I have had every imaginable makeup brand on my face.

Many of them instantly prettify you but the biggest beauty woe is going home with ruined skin. As a beauty columnist, I’ve road-tested countless beauty products.

My skin has been subjected to pimples, rashes, burns and itching—all for the sake of beauty. But I have, likewise, made the most wonderful discoveries and realized which products are worth keeping,” Rissa says.

What are the innovative, unique and pro-Filipina complexion qualities of Happy Skin?

“Our lippies are our bestsellers. Every time we formulate a new lippie, choosing the perfect color is the most difficult and, honestly, that’s what always takes us the longest! We really go to great lengths just to test them to make sure they complement different Filipino skin tones—whether you’re fair, chinita or morena. We have women telling us they never imagined they could wear a red lippie, or how some have finally found their perfect nude. Then there are others who never really wore lipstick but began to do so because of Happy Skin.

There are countless stellar lip products, but what gives that giddy I-can’t-breathe feeling is when they ultimately look amazing on you,” Rissa reveals.

Rissa chose to harness the strengths of the different beauty capitals. Japan is revered for its skin care and flawless makeup, so Happy Skin’s foundations, powders, concealers and blushes originate there. Additionally, nothing agrees more with Filipino skin than cosmetics from Japan. Koreans, on the other hand, are brilliant when it comes to making the eyes more beautiful, that’s why Happy Skin’s soon-to-be released eyeliners come from there.

“What excites me most is that Happy Skin is my first business venture. It’s unlike any of the work I’ve done before, yet I feel so fulfilled doing something I’m passionate about. I get to live my dream and not everybody gets to do that,” says the entrepreneurial mother of two, an Ateneo de Manila University Bachelor of Science in Management graduate and consistent

dean’s lister. She also took up short postgraduate courses on Strategic Brand Management and Marketing Distribution Management at the Asian Institute of Management.

Now that she has a beauty range, will she be expanding into clothing, accessory and houseware lines?

“I was already asked long ago by one of the department stores to create my own clothing line. It was a great opportunity but I declined. I don’t feel it’s fair to impose to the public something I have no formal training in. I have a lot of designer friends and I very much respect their craft,” Rissa demurs.

Pablo Cabahug, a fast-rising designer who will headline the forthcoming Manila Fashion Festival on November 13, says of his good friend: “She’s always there to help. She is the sweetest and I’m truly blessed to have her as a muse. I love dressing her. I think with her venture to another area/industry serves as an inspiration to all of us.” As a supermodel, would she choose a fellow model to endorse her brand as opposed to a screen star (like Gwyneth for Max Factor, Halle for Revlon, Brooke for MAC)?

“Right now, every woman is the Happy Skin star.

We have women aged 15 to 50 buying our products.

We have students, debutantes, brides, career women, models, moms, even makeup artists and celebrities buying Happy Skin. To each woman, it boils down to finding a makeup brand that finally makes it easy to look beautiful without harming your skin,” Rissa replies.

How do you balance being a model, a mogul and a mom? “It’s all a matter of defining your priorities.

If you put equal weight to everything you do, you’ll only end up disappointed and stressed out. I do everything I can to always be with my children. I may take on many roles—model, columnist, entrepreneur, modeling teacher—but before anything else, I’m a mother. Every other role comes second to that. If you know your priorities—who and what you hold close and dear—and you stay honest to yourself and others, then you can never make a wrong decision.”

Rissa admires makeup moguls, such as Estée Lauder, Helena Rubinstein and Elizabeth Arden, and she also believes that “truly good makeup should be your ally— not your enemy—in making you look and feel more beautiful. Makeup should enhance and empower, but if it’s a struggle to make it work for you, it’s pointless.

We get so much love because it’s unbelievably easy to look beautiful with Happy Skin, and it makes women feel like anyone can wear makeup. Also, aspire for peace of mind and genuine happiness. The happier you are in life, the more beautiful you are going to be on the outside,” Rissa philosophizes.

“I think the single biggest reason Filipino women like Happy Skin is because we fulfill not just their beauty wishes but equally address their frustrations with makeup. Women’s complaints about makeup inspire our products,” the articulate beauty says. “So many people mistakenly think Happy Skin is an imported brand. It’s a homegrown brand proudly created by Filipino minds.

Happy Skin is not just pro-Filipino when it comes to complexion but we are also giving world-class products at pro-Filipino prices, too.” ■

❶ SHUT Up & Kiss Me Moisturing Lippie

❷ ALL Eyes On Hue Eyeshadow Palette

❸

life

EYE Need A Miracle Corrector

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predictive medicine depends on analytics BusinessMirror

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dePends on AnAlytics A T

By Jeff Elton & Arda Ural

directions for life sciences research and development.

In this new arena, the once-clear lines between companies that make drugs and medical devices, providers who diagnosis illnesses and treat patients, and payers who provide the financial support for care are blurring. Actors in this ecosystem are establishing more iterative and interactive connections with each other and with patients.

They are collaborating with (sometimes highly unlikely) partners. They’re also sharing risk.

For example, one estimate of the annual cost of medication noncompliance in the United states is a hefty $289 billion.

What if a pharmaceutical company took the lead in creating a collaborative solution, using predictive analytics to assemble and deliver a package of product and service offerings to motivate patients to stay on track? With a focus on adhering to treatment, patients, providers, risk bearers and life science companies would all benefit.

Predictive analytics is fueling a transformation from a focus on the volume of procedures to the value of outcomes. For example, predictive tools can pinpoint treatments that sustain health in a more precise way than ever before.

Used to its full potential, this approach is predictive medicine— the ability to integrate and analyze known disease characteristics with a specific patient’s history and health status, and use the resulting insights to change outcomes and inform new

Medical device companies have begun using predictive analytics and other Big Data technologies in certain areas of their businesses.

Leading pharmaceutical companies are also investing and establishing operations in advanced analytics.

Life science company executives need to think about how—and how much—they will develop and integrate predictive analytics capabilities into their services.

While the most visible immediate benefit is cost reduction, the real motivation is a patient-centric business model—one that recognizes that health and care management needs to occur wherever the patient is, not just in hospitals or physician offices.

The goal is threefold: Improve clinical outcomes, enhance patient satisfaction and drive more value to the entire health-care system.

Jeff Elton is managing director in Accenture Strategy and Global Lead of Predictive Health Intelligence. Arda Ural is senior manager in Accenture Strategy and Predictive Health Intelligence.

A MIlITAry leAder’S APPrOAch TO deAlIng wITh cOMPlexITy

By John Michel

triumphs. This approach will build deep trust and enduring respect, and reinforce that you don’t expect anyone to do anything you wouldn’t do yourself. Model for others the selfless attitudes and behaviors you want to see in them.

He most effective leaders I’ve known or studied all share a common trait: They were unwilling to settle for the existing state of affairs.

They believed with all their heart that what we focus on can become reality. After a quarter-century of military service, I’ve been afforded the rare privilege of leading in a broad array of environments. I know how daunting it can be to lead dedicated professionals to undertake complex endeavors, and I’ve lived the reality of trying to bring positive change to large, bureaucratic organizations.

Here are four principles I’ve learned:

Principle 3: remember that leaders should be generalists, not specialists.

NoBoDY can be an expert in everything, but the greater your scope of responsibility as a leader, the more you need to learn about what you are demanding of your people. effective leaders develop a keen sense of how the organization’s various roles, functions, systems, people and processes contribute to achieving its desired goals.

Principle 1: craft your vision in pencil, not ink.

Principle 4: recognize that every interaction is an opportunity

LeADINg entails being a visionary—confidently looking ahead and ascertaining how best to transform your current reality into your desired future. Leaders err when they develop their vision in isolation and then expect people to accept it at face value.

Making inclusivity a priority will increase ownership, enhance motivation, improve information sharing and result in leaders making wiser, more informed choices.

eFFecTIve leaders understand that every interaction with someone is a potentially powerful means of nurturing a relationship, eliminating an obstruction to progress or reinforcing trust. Adopt a walk-the-floor policy instead of an open-door policy.

These principles of military leaders are the same ones that companies need to prevail in a climate of increasing uncertainty and accelerating complexity.

It is up to each individual leader to put these lessons to work.

Principle 2: Believe no job is too small or insignificant for anyone, especially you.

IF your team is cold, wet, hungry and sleepless, you should be, too.

You should be prepared to eat last, own failure and generously share

Brig. Gen. John E. Michel is the commanding general, Nato Air Training Command-Afghanistan; and commander, 438th Air Expeditionary Wing, Kabul, Afghanistan.

TeScO’S dOwnFAll IS A wArnIng TO dATA-drIven reTAIlerS

By Michael Schrage

scale, Tesco had committed to customer research, analytics and loyalty as its marketing and operational edge. For example, the supermarket chain ingeniously succeeded at Internet-enabled grocery shopping. Tesco was digital before digital was cool.

Tesco’s clubcard loyalty program was launched under Leahy in 1995 and redefined both the company and the industry. American supermarkets— notably Kroger—sought to emulate Tesco’s success. Practically every retail Big Data and analytics case study over the past decade referenced Tesco as “best practice.” But Tesco’s decline present an unambiguous warning that even rich and data-rich loyalty programs and analytics capabilities can’t stave off the competitive advantage of slightly lower prices and a simpler shopping experience. or did today’s Tesco simply lack the innovation chops to craft promotions, campaigns and offers that allow it to preserve share, let alone grow it?

Is Tesco’s fall from grace a typical tale of shambolic succession and enterprise lassitude as times turned tougher? or, is it a market signal that Big Data, predictive analytics and customer insight aren’t the sustainable competitive weaponry they’re cracked up to be? The schadenfreude gang may be counting on the former; but datanauts would be wise to consider the latter possibility. or is it probability?

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The Internet of things will change your company, not just your products

By Joey Fitts

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HAve had a front row seat as companies have struggled to enter the emerging world of the Internet of Things or IoT—first, 10 years ago as a vice president at Ambient Devices, an MIT Media Lab spinoff that was a pioneer in commercializing IoT devices, and then as a consultant.

Traditional functional departments often can’t meet the needs of IoT business models and have to evolve. Here are some of the challenges that I’ve observed: nProduct management. successful IoT plays require more than simply adding connectivity to a product and charging for service—something

many companies don’t immediately understand. Building an IoT offering requires design thinking from the start—reimagining your business, empathizing with your target customers and their challenges, and determining how to solve their problems most effectively. nFinance. Finance teams often have trouble changing their traditional planning, budgeting and forecasting processes to accommodate radically new IoT business models.

Forecasting and planning for product upsells, service additions, increased utilization and churn across both products and services can also be difficult. And changes in the focus of the business can quickly upend

product and service to market.

New skills may be required, and new distribution options may emerge. sales operations must consider changes to market segmentation, territory management and resource allocation.

Determining how best to approach partnerships and compensation can be complicated.

Those practices and capabilities that suffice today will not do so tomorrow. An ability to evolve—and quickly— is a prerequisite for success.

long-held performance indicators. nOperations. When product-based companies add services and connectivity, operational requirements increase. The resulting challenges may include new contract-manufacturing relationships, which can be a disorienting process for the uninitiated. The addition of thirdparty services and shared customer ownership can introduce tiers of customer-support challenges. Inventory requirements, warranties and returns may change. companies may also suddenly have to comply with unfamiliar laws and regulations. nSales. In IoT businesses, sales departments often struggle to determine how to best take a combined

esco’s chairman has resigned in disgrace. The company’s market value has more than halved to an 11-year low as it acknowledged overstating profits by hundreds of millions of dollars. A humbled Warren Buffett, who opportunistically raised his stake in the company after a surprise profit warning, confessed to cNBc: “I made a mistake on Tesco. That was a huge mistake by me.”

Britain’s biggest supermarket chain has not only seen its fortunes erode but also its reputation for competitiveness, creativity and integrity. even before its accounting travails, a former chairman had sharply criticized former ceo sir Terry Leahy, who had led Tesco to market dominance and worldwide admiration, for leaving a shambles of a legacy.

Leahy’s immediate successor resigned in July; his successor from Unilever now confronts more of a turnaround than he had ever expected.

Many analysts and unhappy investors point to Tesco’s ill-fated Fresh & easy convenience store foray in America just as the global financial crisis kicked in. The failed expansion effort ultimately led to write-downs topping $3 billion. At the same time, dramatically increased price competition by discounters such as Aldi severely undercut Tesco’s “every little helps” value proposition.

The company still declines to say whether its systemic supplier-related accounting misstatements better reflect malpractice or malfeasance.

More than any other retailer of

monday morning Joey Fitts is CEO of outelligence, a SaaS provider that offers instant industry insight via interactive go-to-market graphs and APIs.

Michael Schrage, a research fellow at MIT Sloan School’s Center for Digital Business, is the author of serious Play, Who Do You Want Your customers to Become? HBR Press, and The Innovator’s Hypothesis, MIT Press.

© 2013 Harvard Business School Publishing Corp. (Distributed by The New York Times Syndicate)

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POLICE, YOUTHS CLASH IN FRANCE World The

A protester throws a tear-gas canister during clashes with the police on the sidelines of a demonstration against police violence in Nantes, western France, on November 1. AP

Police, youths clash at protests in French cities

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youths and police on the margins of mostly peaceful rallies by environmental activists in recent months. A long-running standoff has involved foes of an airport project in Nantes and more recently, green groups have protested against the Sivens dam project in southwestern France.

Saturday’s rallies were called to honor Remi Fraisse, a 21-yearold protester who died last week in clashes between police and demonstrators near the southwestern town of Lisle-sur-Tarn, not far from

Power restored as Bangladesh struggles to fix grid

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HAKA, Bangladesh—Power was restored in most of Bangladesh on Sunday, a day after the impoverished, energystarved nation was plunged into a nationwide blackout when a transmission line from neighboring India failed, officials said.

The blackout was the country’s worst since a 2007 cyclone knocked out the national grid for several hours, and again exposed inefficient and dated infrastructure that has held back development in the South Asian nation.

Electricity was cut across Bangladesh at around noon on Saturday, after the transmission line experienced a “technical glitch” that led to a cascade of failures throughout

the national power grid, with power plants and substations shutting down, said Masum-Al-Beruni, managing director of the state-run Power Grid Co. of Bangladesh Ltd. After an evening spent in the dark, most of the residents of Dhaka, the capital of more than 10 million people, got electricity back on by 1 a.m. on Sunday, said Mohammad Nasir Uddin, a control room official of the Dhaka Power Distribution Co. Power was restored in other major cities, too, but it was not clear how many people were still without electricity.

Tawfiq-e-Elahi Chowdhury, energy adviser to Prime Minister Sheikh Hasina, said late Saturday that he expected the supply would be back to normal by Sunday afternoon.

Dhaka’s hospitals and the international airport continued to operate after the blackout on Saturday with emergency generators. But many offices normally open had to send their employees home.

“This is terrible,” said Mohammad Hasan, a resident of Dhaka’s upscale Bashundhara neighborhood.

“We had some confidence in the government over last few years that the power sector was improving slowly.

But what is this?”

Bangladesh is considered one of the most energy-poor nations, with one of the lowest per-capita electricity-consumption rates in the world.

More than a third of Bangladesh’s 166 million people still have no access to electricity, while the country of-

Russia’s top radio station slapped by government

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OSCOW—The Russian government’s communications watchdog has issued a warning to a top independent radio station over a program about Ukraine.

Roskomnadzor’s warning to Ekho Moskvy related to this week’s program, in which two journalists exchanged firsthand accounts of fighting between pro-Russia rebels and government forces in eastern Ukraine.

The journalists, Sergei Loiko of the Los Angeles Times and Timur Olevskiy of Russia’s independent Dozhd television station, talked, in particular, about fighting around the airport in the main rebel-held city of Donetsk, that has continued despite a truce signed in September.

The agency said on Friday the program contained “information justifying war crimes,” but didn’t elaborate.

Ekho Moskvy’s editor in chief, Alexei Venediktov, rejected the claim and said the station would appeal the warning.

Under Russian law, a media outlet could face closure if it receives two warnings in one year.

The warning was the first for Ekho Moskvy.

IN this July 4 file photo, ekho Moskvy’s editor in Chief Alexei Venediktov attends the traditional July 4 garden party at the spaso House, residence of the American ambassador, in Moscow, russia. the russian government’s communications watchdog, roskomnadzor, has handed Moskvy a warning over a program about Ukraine, saying it contained “information justifying war crimes. ”Venediktov rejected the claim and said the station would appeal it. AP

While most Russian media toe the government’s line, Ekho Moskvy has given a platform to Kremlin critics despite being majority-owned by a branch of Gazprom, Russia’s state-controlled gas giant.

Media freedom in Russia has steadily shrunk under the rule of President Vladimir Putin.

With all nationwide television stations under state control and most print media full of adulation for Putin, authorities have methodically moved to tame few remaining independent media outlets amid a strain with the West over Ukraine.

Early this year several leading cable and satellite providers cut Dozhd, the top independent TV station, from their packages following an inquiry by prosecutors. Later, the owner of Lenta.ru, a leading online news outlet, fired its editor over coverage of Ukraine.

And last month Russian lawmakers approved a bill that would limit foreign ownership in Russian media to 20 percent. The measure was widely seen as directed at critical print outlets with foreign ownership, such as the Vedomosti business daily and the Russian Forbes magazine. AP

ten is able to produce only some of its 11,500-megawatt generation capacity.

Power outages blamed on old grid infrastructure and poor management are common in Bangladesh.

Bangladesh has tried to improve its energy situation, extending access to electricity to about 3.45 million more people since 2008. Last year it started to import electricity from India through the 400-kilovolt transmission line, which runs from Baharampur in the Indian state of West Bengal to the town of Bheramara in southwestern Bangladesh.

It also has signed agreements with energy companies in Russia, Japan, China and the United States to build power plants and improve energy infrastructure. AP

as U.s. election day nears, obama takes center stage

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ASHINGTON—President Barack Obama and the top Senate Republican offered clashing views about America’s trajectory on Saturday in the final weekend before a national election in which control of Congress and 36 governorships will be at stake.

Obama emphasized economic growth during his tenure while Senate Republican leader Mitch McConnell depicted events he says seem to be spinning out the White House’s control.

Republicans were hoping to gain the six Senate seats needed to come away with the biggest prize in Tuesday’s election—control of both chambers of Congress during Obama’s final two years in office, which would give them more power to thwart his legislative agenda and block key nominations. The party is all but certain to hold its majority and even gain seats in the House of Representatives.

Democrats are at a disadvantage in the Senate contest because they have to defend seats in a number of states carried by Republican presidential nominee Mitt Romney in 2012, including Montana, West Virginia, South Dakota, Arkansas, Alaska and North Carolina.

But with just three days remaining before Tuesday’s election, an unusually high number of Senate races remain too close to call—with polls showing 10 states in which the candidates are separated by 5 percentage points or less. AP

where the dam is to go up. Such rallies—first primarily about environmental causes—have for some morphed into protests about alleged police brutality.

Hundreds of riot police and officers were mobilized in the two cities. The local government office said at least two protesters were injured on Saturday in Nantes, as were two police officers—one burned by acid that was allegedly thrown by a rioter. At least 16 people were arrested there.

In Toulouse one police officer was slightly injured and eight demonstrators were detained, the local government office said in a statement.

Authorities denounced the violence on Saturday and called for a return to calm.

French President FranÇois Hollande has called for an investigation into what caused Fraisse’s death, and an autopsy found that a large wound on his back was caused by some kind of explosion. AP

8 convicted for alleged same-sex wedding in egypt

eIgHt egyptian men convicted for “inciting debauchery” following their appearance in a video of an alleged same-sex wedding party on a Nile boat leave the defendant’s cage in a courtroom in Cairo, egypt, on November 1. AP

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pieces of cloth or paper when they were led by police out of the cage after they heard the verdict.

The verdict is the latest in a crackdown by authorities against gays and atheists.

The campaign also targets liberal and prodemocracy activists and violators of a draconian law on street protests.

New York-based Human Rights Watch (HRW) said in September that Egyptian authorities have repeatedly arrested and tortured men suspected of consensual gay conduct.

HRW condemned Saturday’s convictions as part of a widening campaign of intolerance in Egyptian government and society.

“Egypt’s government, evidently not satisfied jailing opposition members, students and human-rights activists, has found the time to prosecute [gays],” said Graeme Reid, HRW lesbian, gay, bisexual and transgender rights director, in a statement. Reid called the sentencing “the latest signal that the new government will prosecute anyone to try to bolster its support.”

In April four men were convicted and sentenced to eight years in prison for “debauchery” after allegedly holding parties that involved homosexual acts and where women’s clothing and makeup were found.

In 2001 Egypt made headlines around the world when 52 men were arrested in a police raid on a Nile boat restaurant and accused of taking part in a gay sex party. AP

AIRO—An Egyptian court on Saturday convicted eight men for “inciting debauchery” following their appearance in an alleged same-sex wedding party on a Nile boat, sentencing each of them to three years in prison.

The Internet video shows two men exchanging rings and embracing among cheering friends. The eight were detained in September, when a statement from the office of Egypt’s chief prosecutor said the video clip was “shameful to God” and “offensive to public morals.”

Egypt is a conservative majority Muslim country with a sizable minority of Christians. Homosexuality is a social taboo for both communities and only in recent years have fiction and movies included gay characters. Consensual same-sex relations are not explicitly prohibited, but other laws have been used to imprison gay men in recent years, including “debauchery” or “shameless public acts.” Same-sex marriage is unheard of in Egypt.

The verdict was received with protesting screams by relatives waiting outside the Cairo courthouse court. Some of them broke down, and cried while others protested that medical examinations carried out by state doctors showed the defendants were not gay.

While inside the defendants’ cage for the hearing, the eight buried their heads in their hands or hid their faces under baseball caps. They covered their faces with

WORLD

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right on target

Sports BusinessMirror

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| Monday, noveMber 3, 2014 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

Djokovic sets up paris Masters final vs raonic

RIGHT ON TARGET P

By Samuel Petrequin The Associated Press

ARIS—Everything is going Novak Djokovic’s way right now.

The top-ranked Serb, who celebrated the birth of his first child last month, is on course to finish the year as the No. 1 player in the world for the third time, and eased into the Paris Masters final on Saturday—where he will face a player who has never beaten him.

“I try to cherish every moment that I experience on the court and also off the court,” Djokovic said after easily defeating Kei Nishikori 6-2, 6-3 on Saturday and set up a final against bigserving Milos Raonic.

“Off the court especially this year, my private life with getting married, becoming a father, it’s been an incredibly joyful year for me,” he added. “So I can’t complain.... I’m enjoying every moment of it.”

Djokovic, the defending champion in Paris, has yet to lose a set this week in the French capital and needed just over an hour to complete his win against Nishikori, the Japanese player who beat him in the US Open semifinals.

The victory also extended Djokovic’s lead over Roger Federer in their fight for the year-end No. 1 spot. They will be reunited for a last showdown at the Association of Tennis Professionals finals in London from November 9 to 16 at the O2 Arena, where Raonic and Nishikori will also feature.

After trading breaks early in the second set, Djokovic saved three consecutive break points in the sixth game before converting his first match point when Nishikori’s lob was out.

The sixth-seeded Nishikori lacked his usual speed after a nearly three-hour match against David Ferrer on Friday.

“Maybe I was a little bit tired. My body wasn’t 100 percent ready for today’s match,” said Nishikori, the first Asian player to qualify

serBia’s novak Djokovic, here returning the ball to kei nishikori of japan, is on course to finishing as no. 1 at the end of this year. AP

for the eight-player field at the ATP finals.

Raonic followed up his win over Federer with a 6-3, 3-6, 7-5 victory over former champion Tomas Berdych.

The Canadian came out on top when Berdych, the 2005 champion, lost his composure in the final game. Serving to stay in the match, the fifth-seeded Czech made four consecutive unforced errors, including two double-faults, to hand his opponent the win.

“In a very uncharacteristic way, he sort of just gave me a big opening, and I did good enough to make the most of it,” said Raonic, the No. 7 seed.

Berdych smashed his racket in anger before leaving the court.

“I just totally messed it up with the last game,” he said.

“It was definitely the worst game I ever played here on this tournament this year.”

Until then, Berdych had played consistently, returning well to neutralize Raonic’s booming serve and leveling the match at one set apiece after securing an early break in the second set.

“You have days like this when things are going well and then, just at the last moment, everything is gone,” Berdych said.

Although he did not come close to the 21 aces he had against Federer, Raonic added 12 to increase his tally this week to 75.

The 23-year-old Raonic will be playing in his second Masters final after losing in Montreal to Rafael Nadal last year.

Raonic has been enjoying the best year of his career, winning his sixth title in Washington and making it to the semifinals at Wimbledon.

“I definitely think I can do a lot better than I’m doing now,” Raonic said. “I’m learning a lot more about myself, a lot more about my potential, what I believe I can do and how I need to do it. I think every goal that I set this year would be leading to me being in the finals in London, so to be able to achieve that is very special. It means a lot.”

WESTBROOK OUT

AT LEAST A MONTH

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KLAHOMA CITY— Thunder point guard Russell Westbrook will miss at least a month with a broken right hand.

The team said in a news release that Westbrook had successful surgery on Saturday morning, and he will be reevaluated in four weeks. The three-time All-Star was injured during the second quarter of Thursday night’s 93-90 loss to the Los Angeles Clippers.

He was expected to carry more of the load while Most Valuable Player Kevin Durant sits out for at least a month with a broken right foot. Westbrook got off to a good start, scoring 38 points in the season-opening loss at Portland, before getting hurt in Oklahoma City’s second game.

Reggie Jackson, Jeremy Lamb, Mitch McGary and Anthony Morrow also are out with injuries. Oklahoma City’s home opener is Saturday against Denver. AP

Bryant (center) challenges the defense of Golden state Warriors’ klay thompson (left) and andrew Bogut. AP

Warriors, tHoMpson BurY l.a. lakers

AKLAND, California—Klay Thompson scored a career-high 41 points in his first game since signing a contract extension, teaming with backcourt star Stephen Curry to lead the Golden State Warriors past the winless Los Angeles Lakers 127-104 on Saturday.

Thompson, who inked a four-year maximum extension worth about $70 million on Friday, shot 14 for 18 from the floor. Curry added 31 points and 10 assists, and the Warriors withstood Kobe Bryant’s big plays to thrill a blue-shirt wearing sellout crowd of 19,596 in the team’s home opener.

Bryant scored 19 of his 28 points in the third quarter

Continued on A2

and nearly brought the depleted Lakers back. Instead, Los Angeles collapsed in the final quarter to lose its fourth game in five nights.

Chandler Parsons scored 20 points as the Dallas Mavericks won their second straight game, 109-104 over the New Orleans Pelicans.

Dirk Nowitzki scored 17 despite foul trouble, making a 12-foot fade over Anthony Davis that gave Dallas a 109103 lead with 49 seconds left.

Monta Ellis also scored 17 for Dallas. Parsons’s performance was highlighted by a momentum-swinging three-pointer from well behind the arc that gave Dallas a

101-96 lead in the middle of the fourth quarter.

Davis had 31 points, 15 rebounds and three blocks for New Orleans.

Atlanta’s Jeff Teague scored 25 points and Al Horford added 20 in the Hawks’ 102-92 win in the home opener against the Indiana Pacers.

Indiana closed to 95-92 when Donald Sloan was fouled in the corner by Horford and knocked down all three free throws with 1:13 left. But Teague answered with a jumper, Sloan missed and Teague made a pair of free throws with 26.6 seconds left to clinch the victory.

At Orlando, Florida, DeMar DeRozan scored 26 points

and Kyle Lowry added 21 as the Toronto Raptors beat the Magic 108-95.

Evan Fournier scored 18 points for the Magic, who have lost three straight. Rookie point guard Elfrid Payton had 16 points and nine assists.

Chris Bosh had 30 points and eight rebounds for the Miami Heat, which downed the Philadelphia 76ers 11496 for their second straight win.

Mario Chalmers scored 18 points, and Dwyane Wade had nine points and 10 assists for Miami.

Tony Wroten had 21 points and 10 assists for the Sixers.

Paul Pierce was ejected before halftime in his first

home game with the Wizards as Washington beat the Milwaukee Bucks 108-97 after Otto Porter scored a career-high 21 points.

The Memphis Grizzlies edged the Charlotte Hornets 7169 after Marc Gasol scored 22 points, and Zach Randolph had 12 points and 12 rebounds, while Joe Johnson scored 15 of his 34 points in the fourth quarter as Brooklyn Nets earned their first win, 102-90 over the Detroit Pistons.

In other games, the Houston Rockets defeated the Boston Celtics 104-90, the Oklahoma Thunder downed the Denver Nuggets 102-91 and the Chicago Bulls sneaked past the Minnesota Timberwolves 106-105. AP

sports

hina’s manufacturing slowed further in October, as a property slump and slowdown in investment growth put the world’s second-largest economy on course for the slowest full-year growth since 1990.

The government’s Purchasing Managers’ Index (PMI) was at 50.8 in October, trailing the 51.2 median estimate of analysts in a Bloomberg News survey and compared with September’s 51.1. Readings above 50 indicate expansion.

A pullback in manufacturing will test the government’s determination to refrain from broad stimulus. The economy expanded 7.3 percent in the third quarter from a year earlier, the weakest pace in more than five years.

“The biggest drivers of growth, such as fixed-asset investment, are still slowing,” Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd., said by phone from Hong Kong on November 1. “Heavy industries like steel and coal are contracting on lower prices, and the negative impact of the weak property market is becoming more pronounced.”

Growth slowed from September for output, new orders, new export orders, stockpiles and expectations, according to the statement released on November 1.

The economy “still faces some headwinds” although a downward trend is unlikely after the government implemented policies to stabilize growth in the third quarter, the statement said.

Some headwinds

los angeles »lakers’ kobe

O

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he local government of Puerto Princesa City in Palawan is pursuing an initial P1.2-billion infrastructure buildup program seen to help boost its stature as one of the world’s best leisure destinations and, at the same time, cement its capacity to create internally generated funds not just for now but for the long haul.

C

B3-1 | Monday, November 3, 2014 • Editor: Lyn Resurreccion

Riot police bearing shields fired tear-gas canisters in western Nantes to disperse masked protesters—some of whom lit fires, chucked back the canisters, and tore down street signs to use as projectiles. Similar unrest broke out in southwestern Toulouse, where authorities said some rioters among mostly peaceful protesters smashed bank windows and tore up public property.

The demonstrations testified to growing tensions between angry

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CHINA MANUFACTURING HEADED FOR SLOWEST GROWTH SINCE 1990

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ARIS—Projectile-throwing youthsclashedwiththepolice in two French cities on the sidelines of demonstrations on Saturday honoring a protester who was killed during a similar confrontation over a dam project last week.

Monday, November 3, 2014 Vol. 10 No. 26

This was learned from city Mayor Lucilo “Cecil” Rodrigues Bayron, who said that two state-owned banks and one privately owned commercial lender offered very competitive loan rates to finance a number of projects requiring also the participation of private investors to hasten the development of one of the nation’s premier island destination.

The local government unit’s (LGU) infrastructure buildup program comes at a time when barely none of the LGUs have taken advantage of the highly liquid banking system now offering historically lowinterest charges because there are only very few administrators willing to take the risk before interest rates head back up again.

Monday, November 3, 2014 E 1

Predictive Medicine dvAnces in information technology have made it possible for predictive tools to access and manipulate Big data, and to do so continuously—opening up opportunities to anticipate issues with unprecedented precision. no industry is unaffected. But nowhere is the potential more exciting than in health care.

n

Puerto Princesa courting lenders, investors for major infra face-lift

INSIDE

Live the word

A broader look at today’s business

c1

The PMI result reflects weak demand growth in the economy despite the government’s loosening efforts, Goldman Sachs Group economists, including Song Yu in Beijing, said in an e-mailed research note. Bloomberg News

PESO exchange rates n US 44.8760 n japan 0.4108

SLOW DAY A woman waits for customers at her vegetable stall in Las Piñas Market. She said prices of vegetables are stable as of the moment. NONIE REYES

PHL named ‘Region’s Best Borrower’ by ‘FinanceAsia’

By David Cagahastian

T

he Philippines was named as the “Region’s Best Borrower” in FinanceAsia’s Fixed Income Research Poll 2014 because of the government’s innovative “accelerated one-day switch tender offer” and the concurrent $1.5-billion new 10-year bond issue in the global bond market in January.

FinanceAsia hosted the awards’ gala night to honor the winners in this year’s Fixed Income Research Poll on October 29, coinciding with the Third Annual Borrowers and Investors Forum-Southeast Asia in Singapore.

Under the switch-tender offer in January, the Philippines targeted 11 series of bonds with a notional value of $9.6 billion, wherein investors could choose between switching into the new 10-year bond or tendering for cash. The bonds were tendered through dealer managers, saving time and reducing market-risk exposure for the Philippines The global investor response to the new 10year bond issue was nine times oversubscribed, with an order book of approximately $13.5 billion from 500 investors.

The accelerated switch tender offer was the first of its kind conducted in Asia, indicating the Philippines’s sophistication as a sovereign issuer. It also marked the first time since January 2012 that the Philippines went to the

DE LEON: “This reflects well on the development of the Philippine debt market and emboldens us to pursue more innovative strategies to manage sovereign debt.”

EMERGENCY POWERS MAY INCLUDE I.L.P. COMPLIANCE

By Lenie Lectura

T

international bond market, and the first time since achieving investment-grade status.

The tender offer allowed the country to retire outstanding high coupon bonds and extend the maturity of other outstanding debts. The transaction was followed by a domestic bond exchange in August as part of the strategy to rebalance the domestic portfolio and extend the maturity dates of debts.

In conferring the award, FinanceAsia highlighted the government’s efforts to boost the development of the local capital market by its efforts to promote liquidity and consolidate the debt portfolio.

This was achieved by increasing the volume at auction and the reissuance of outstanding benchmark securities. The success of this strategy is indicated by the year-on-year decline in the number of outstanding securities

he House of Representatives is expected to release within the month its own version of the joint resolution that will grant President Aquino special powers to address the energy crisis anticipated in Luzon next year.

It will give President Aquino the power to compel companies to participate in the Interruptible Load Program (ILP), with the risk of not getting paid at all if they fail to sign up for the scheme by December 1.

The House energy committee chairman, Rep. Reynaldo Umali of the Second District of Oriental Mindoro, said it is certain that the President will be granted powers, although there would be limitations to dispel apprehensions of possible abuse. Former President Fidel V. Ramos also exercised emergency powers during his term to buy more capacity, albeit on a take-or-pay basis, which led to higher power rates because consumers

See “Best borrower,” A2

Continued on A2

n UK 71.8106 n HK 5.7867 n CHINA 7.3376 n singapore 35.1362 n australia 39.5453 n EU 56.5976 n SAUDI arabia 11.9625 Source: BSP (31 October 2014)

A2

News BusinessMirror

Monday, November 3, 2014

BRT loan. . . continued from a12

news@businessmirror.com.ph

Puerto Princesa courting lenders, investors for major infra face-lift

The BRT system to be installed in Cebu was chosen over other mass-transport systems because of its low cost (5 percent to 10 percent rail), quick construction (around two years), and its higher quality of service despite having the same capacity as rail.

Cebu City is also a prime location for the BRT system because it is governed by a single local government unit supportive of the project and has high public-utility jeepney dominance with no significant bus presence.

The Department of Transportation and Communications will serve as the implementing agency for this project, which is expected to run from 2013 to 2018 and will be operational from 2018 to 2030 and beyond.

Emperador. . . continued from a12

products. Whyte and Mackay has a history of more than 160 years, and owns some of the Scotch brands in the industry, including the British luxury brand The Dalmore Single Highland Malt, Jura Premium Single Malt and other blended whiskies.

The group has a production capacity of 50 million liters of alcohol per annum with five distilleries and one bottling plant in Scotland. It produces a wide range of products sold in more than 50 countries, mainly in Europe and North America.

The Dalmore brand, in particular, is unsurpassed in prominence and quality. Last year a bottle of The Dalmore Brilliance, a one-of-a-kind 1926 single malt whisky, set a world record when it sold for €250,000, or nearly P15 million, in a liquor sale at Amsterdam Airport Schiphol. It is considered the highest sale value of a single bottle of liquor globally.

“Emperador Inc. is privileged to bring The Dalmore to the Philippines. It is a very prestigious addition to our product portfolio,” Tan added.

Best borrower. . . continued from a1

and the secondary-market activity of reissued securities. National Treasurer Rosalia de Leon welcomed the award and said: “We are thankful for the recognition given by the international investors’ community in response to our efforts in proactive liability management.

This reflects well on the development of the Philippine debt market and emboldens us to pursue more innovative strategies to manage sovereign debt.”

Continued from A1

According to Bayron, the city already secured authority from the Bureau of Local Government Finance (BLGF), an adjunct of the Department of Finance, to borrow P540 million from the banks to begin the construction of a three-story commercial building and allied facilities along scenic Puerto Princesa Bay. The SM Supermalls chain has conducted preliminary talks with the city government and committed to complete the construction of a mixed-use building in just 10 months from the day the contract is signed.

Under the proposed agreement, SM Supermalls, would lease the bayside property for 25 years, an arrangement that would free Puerto Princesa City from having to fund the construction of a P100-million wet market that would also house the province’s first SM Hypermart outlet.

The ground floor would host the city’s wet market, while the second and top floors would host the Hypermart branch and parking facilities.

Since the local government would lease the wet market from SM Supermalls when the building is completed, the transaction

would entail no cash out on the part of the city hall of Puerto Princesa, Bayron said.

He also said the state-owned LandBank and the Development Bank of the Philippines (DBP) offered to extend the city government a loan with the potential to go from the BLGFendorsed P540 million to as high as P700 million because a keen rival, the Philippine National Bank (PNB), offered terms superior to that extended by the state-owned lenders.

While LandBank offered a loan costing Puerto Princesa residents 5.5 percent a year and DBP agreed to only 5 percent, Philippine National Bank (PNB) agreed to charge only 4.75 percent.

Even better, Bayron said, PNB agreed to the city’s plan to refinance outstanding debt of some P1.2 billion with a new loan costing only 4.75 percent.

Given that some of the loans cost the city government interest charges as high as 12 percent, Bayron said the terms presented

by PNB seem the most tempting of all.

According to the former city administrator, city planner and erstwhile city vice mayor, the former tenant at city hall had a penchant for building beautiful toolboxes such as the P739-million City Hall Building, but neglected to provide its inhabitants

Continued from A1

had to pay for electricity capacity that was not consumed. “We will be issuing the joint resolution to give the President authority to deal with the power crisis minus the option of purchasing or leasing additional capacity,” Umali said. “When we open again on November 17, I will need a week for the committee to pass it and another week for the plenary to approve it. So, it will be finished by November.”

The Electric Power Industry Reform Act (Epira) prohibits the government from put-

NOVEMBER 3, 2014 | MONDAY

TODAY’S WEATHER Typhoon is a cyclone category with winds of 118 - 181 kph.

TYPHOON “PAENG” LOCATED AT 1,120 KM EAST OF CASIGURAN, AURORA MAXIMUM WINDS: 175 KPH GUSTINESS: 210 KPH MOVEMENT: NORTH WIND SPEED: 13 KPH NORTHEAST MONSOON AFFECTING NORTHERN LUZON.

Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rains and showers.

(AS OF NOVEMBER 2, 5:00 PM)

ting up power plants. However, Section 71 of the said law states that the President, upon determination of an imminent shortage in the supply of electricity, may ask Congress for authority, through a joint resolution, to establish additional generating capacity under such terms and conditions.

“The ILP is a more effective approach. The participants will be given a deadline to register until December 1. If they do not, they run the risk of being called in to run their plant but not get paid,” Umali said.

Among others, the joint resolution seeks to compel electricity consumers with large

BAGUIO CITY 16 – 23°C

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loads to sign up with the government’s ILP, in which they will be asked to operate their own generator sets if the grid operator projects a need to augment generation capacity in the Luzon grid.

Through this, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the season.

At present, the ILP is voluntary; but Umali said the joint resolution will compel them to sign up. “The government will pay the ILP participants that will register on or before December 1. But those who

NOV 5

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24 – 32°C

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TACLOBAN

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LEGAZPI

PUERTO PRINCESA CITY 23 – 30°C

TACLOBAN CITY 24 – 31°C

METRO CEBU 24 – 32°C CAGAYAN DE ORO CITY 24 – 32°C ZAMBOANGA CITY 25 – 33°C

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0.78 METER

Cloudy skies with rain showers and/or thunderstorms.

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26 – 31°C

26t – 32°C

Partly cloudy to at times cloudy with rain showers.

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

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1:31 PM

0.11 METER

Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

METRO DAVAO 25 – 32°C

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opt not to will also be asked to participate in the program should they be called in by the government. However, the risk is that they won’t get paid,” Umali explained.

The joint resolution will likewise relax the permitting process that power producers will have to go through. “For the rehabilitation and upgrading of power plants targeted for next year, we will help these facilities finish the work on time. The intervention that will be done will relax the operability of any law concerning power plants. This may include tax exemption,” Umali said.

METRO CEBU

LEGAZPI CITY 25 – 32°C

ILOILO/ BACOLOD 25 – 31°C

3-DAY EXTENDED FORECAST

METRO DAVAO

TUGUEGARAO CITY 23 – 31°C

SBMA/CLARK 24 – 32°C

money would underwrite the construction of facilities that would attract even more investments for Puerto Princesa City.

He also said nine cruise ships with scheduled stops have already been booked a year in advance beginning this month and for the next 12 months, providing the city with potentially more tourism receipts. Thus for this year, Puerto Princesa attracted four cruise-ship stops. A ship typically carries 1,500 passengers and 1,000 crew, half of whom disembark to explore such attractions as the Palawan Underground River.

Bayron said 83 percent of tourist arrivals are locals but the construction of a regional international airport already under construction by a South Korean contractor magnifies the potential tourism receipts for the city that already bested 147 other world cities as top destination.

That airport will directly connect Puerto Princesa with tourists from China, Hong Kong, South Korea, Vietnam and Malaysia after 30 months of construction that began only recently. “We did not expect or plan for the new international airport but its construction, along with the buildup of other leisure facilities in and around Puerto Princesa, are all welcome developments, Bayron said.

Emergency powers may include ILP compliance

3-DAY EXTENDED FORECAST

LAOAG CITY 22 – 32°C

with a practical range of tools they could depend for many years after the paint and the luster has faded.

“I am an imaginer. The city already has authority to borrow at least P540 million for the purchase of heavy equipment. The banks are offering us attractive rates for the loan because interest rates are very low at the moment. And we have inherited a loan that is costing us 12 percent per annum but which we can refinance for only 4.5 percent, without repricing,” Bayron said.

He believes he has the financial wherewithal to underwrite the ambitious project even in the event SM Supermalls fails to win the bidding process. Bayron said the city’s internal revenue allotment had been raised

by P200 million under next year’s budget and those are funds over and above the city set aside for street lighting next year totaling P150 million, P100 million for the wet market, another P100 million to develop the city’s commercial bayside boulevard and P250 million for the purchase of heavy equipment.

Bayron acknowledged an SM Supermalls participation in the project would free millions of pesos of city hall funds that he would otherwise be forced to forego delivery to the city’s inhabitants because then the

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The Nation BusinessMirror

Palace leaves PCOS machines’ 2016 fate to Comelec’s hands

By Butch Fernandez

M

ALACAÑANG is leaving it up to the Commission on Elections (Comelec) to heed calls by concerned groups, including a private watchdog, led by industrialist Raul Concepcion, to correct discovered flaws in the voting process, junk the Precinct Count Optical Scan (PCOS) machines and use a new automated election system for the 2016 national elections.

Palace Spokesman Edwin Lacierda said the Palace shares the concerns raised about the urgency of putting in place needed reforms in the electoral process in advance of the upcoming national and local elections scheduled in May 2016.

“The principle of fair, honest and transparent electoral process is always at the heart of any elections,” Lacierda said in a text message to the BusinessMirror.

But President Aquino’s chief spokesman added the Palace would rather let Comelec officials act on Concepcion’s suggestion to consider the wisdom of using a new automated election system (AES) and discard the old PCOS machines altogether.

“The proposal of Concepcion is a matter within the purview of the Comelec and its Commissioners,” Lacierda said.

Concepcion, who chairs the private group Government Watch, pointed out in a position paper last week that urgent electoral reforms need to be installed “now” given that there are barely 19 month left before the May 2016 elections.

LACIERDA: “The principle of fair, honest and transparent electoral process is always at the heart of any elections.”

He asserted that whether the Comelec opts to correct the remaining flaws and reuse the existing system, or “better yet” consider the wisdom of using a new automated election system and discard the old PCOS machines, “the decision, announcement, and preparation must be made now.”

According to the industrialist, “enough time” must be given to adopt the needed poll reforms and train election personnel to ensure free and honest electoral exercise. ”There has to be enough time for installation, training of election personnel, quality control and audit, and most important an open and transparent review of all hardware and software source codes,” Concepcion added.

He argued that among the legacies Mr. Aquino will leave behind when the President steps down two years from now is his “reform agenda,” noting that “the continuity of good governance depends on our choice of leaders and the process with which we elect them.”

A Supreme Court resolution cited that the PCOS was included in the AES contract budget of P11.23 billion for the May 2010 polls.

Editor: Dionisio L. Pelayo • Monday, November 3, 2014 A3

Capital left with horror of 830-ton garbage

S

EVEN days leading to and after Halloween, the metropolis is left with more than 830 tons of garbage, according to the Metropolitan Manila Development Authority (MMDA).

“The number is double compared to last year’s celebration,” Francis Martinez, head of the MMDA’s Metro Parkway Clearing Group, said.

Martinez said that from October 27 to November 1, they were able to collect 139 truckloads of garbage from 21 cemeteries in the cities of Pasay, Valenzuela, San Juan, Que-

zon, Parañaque, Taguig, Marikina, Manila, Pasig and Mandaluyong and the municipality of Pateros.

From Manila North Cemetery alone, which is one of the biggest cemeteries in the metropolis, the MMDA collected 17 tons of waste materials, Martinez said.

He told reporter the agency col-

lected 15 tons of garbage from the Manila South Cemetery, 12 tons from the San Juan public cemetery and 11 tons from Manila Memorial Park, a private cemetery.

“We collected styro, papers, plastic cups, basket for flowers, dried flowers, among others,” he said.

On a positive note, Neomie Recio, head of MMDA’s Traffic Engineering Center, said no untoward incident was reported during the days when millions of Filipinos honored their dead and held reunions.

Still, heavy traffic at the SkywaySucat Road area was reported in the run up to the All Saints’ Day and All Souls’ Day. Recio said the MMDA concen-

trated personnel on areas near the four major cemeteries: Manila North Cemetery, Manila South Cemetery, Loyola in Marikina and Manila Memorial Park.

“We encountered a slight problem in Manila North and South cemeteries because of the influx of people,” she said.

Recio, however, said they were able to prevent motorists from parking their vehicles in front of Manila Memorial Park because tow trucks were deployed in the area.

“Motorists avoided parking in front of the cemetery because we deployed tow trucks in coordination with the local government of Parañaque,” she added.

Non-govt groups want more funds for poor PWDs

N

ON - G OV E R N M E N TA L organizations proposed to lawmakers a P116.4-million allocation for persons with disabilities in poor municipalities, citing worsening poverty situation among person with disabilities (PWDs).

Former National Treasurer Leonor Magtolis-Briones, who presented the budget proposal to Congress, said the government’s actual spending on PWDs since 2011 only range from 0.008 percent to 0.98 percent.

“It is evident that not enough is done to address vital concerns, such as education, access to justice, social protection of the sector of persons with disabilities,” Briones said in a statement.

BRIONES: “It is evident that not enough is done to address vital concerns, such as education, access to justice, social protection of the sector of persons with disabilities.”

She added: “The budget and spending for PWDs is so disproportionately small considering it is estimated that 10 percent of the population has [a disability] and the demands are rights-based.”

She cited the actual spending for

PWDs in 2011 is only 0.0007 percent of the annual budget of the Department of Social Welfare and Development, while the National Council on Disability Affairs (NCDA) spent only 0.002 percent of its budget for PWDs. Briones said other executive agencies have had a highly variable range of actual spending for PWDs. She noted the education and health departments each spent only 0.05 percent of their budget in 2011 for PWDs. Briones added that of the 609 poor municipalities, only 99 have special education centers in the primary level and 53 at the secondary level.

Citing research by group Alterna-

tive Budget Initiative (ABI), Briones said spending of local government units for PWDs in Luzon and Metro Manila reveal variable and incomplete reporting of expenditures.

Of ABI’s proposed budget for poor PWDs, specific allocations must be integrated in different agencies “to allow them to adhere to their specific mandates in addressing the needs of persons with disability.”

Briones said these include allocating P19.8 million for the NCDA; P4.8 million to the Department of Transportation and Communications for mobility; and, P5 million to the Department of Trade and Industry for promotion of product standards. Estrella Torres

International Women’s Alliance says Laude murder ‘systemic violence’

A

N activists’ group led by former Gabriela Partylist Rep. Liza Maza said the murder of 26-year-old Filipino transgender woman Jennifer Laude allegedly by a US serviceman is “part of systemic violence” clutching the country.

Laude was reported found dead inside a hotel after being with US Private First Class Joseph Scott Pemberton on October 11.

Maza said the International Women’s Alliance (IWA), which she heads, condemns the

murder and “places the culpability for this crime on the Aquino regime for continuing agreements, policies, treaties and laws that trample on the sovereignty of the Philippines, the rights of the Filipino people and condone the unequal relations between the US and the Philippines.”

Under the Mutual Defense Treaty, the Visiting Forces Agreement and the Enhanced Defense Cooperation Agreement, US military servicemen

have and continue to regard the Philippines as a playground for ‘rest and recreation’ and the Filipinos as sex slaves and sex objects for consumption, according to Maza.

“Laude’s murder is part of the systemic violence that is deeply rooted in a historical legacy of imperialist occupation and an extension of all systems of exploitation and slavery. We believe that, in order to build safety for lesbian, gay, bisexual, transgender, and Queer people,

women and children, we must eliminate the root causes and conditions that contribute to and justify the senseless violence.”

Maza added her group recognizes that “transphobia, homophobia and hate crime, as expressed differently in the world, have resulted in many deaths.”

“We acknowledge that [Laude’s] life, along with the lives of other victims of transviolence and hate crimes, matters a great

deal. Their deaths have provided impetus for awareness raising on the issues and struggles of transgenders.”

Maza said IWA also laments the “royal treatment” accorded to the suspect.

“In the past weeks, PFC Pemberton has been shielded by the US with the latter swiftly taking custody and protecting the alleged murderer of Laude in a US-controlled facility.”

Maza said that although Pemberton is cur-

rently being tried under Philippine laws, “he can choose not to appear and was never presented to the family and the Filipino people.”

“Under US protection, PFC Pemberton even had the gall to arrogantly demand that the murder charge against him be reduced to homicide.”

The MDT, VFA and EDCA have made all of these abuses possible, she noted.

Marvyn N. Benaning

A4

Regions BusinessMirror

Monday, November 3, 2014

news@businessmirror.com.ph

Biggest multidonor program wraps up operation in ARMM

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By Manuel T. Cayon | Mindanao Bureau Chief

AVAO CITY—The biggest multidonor-assisted development program of the Moro areas wrapped up its operation in the Autonomous Region in Muslim Mindanao (ARMM), after more than a decade of working in the most blighted provinces in the country.

The ARMM Social Fund Project (ASFP) formally wrapped up its operation in September this year and turned over government property and equipment under its care to the

regional government on Thursday, the ARMM Bureau of Public Information said.

Abba Kuaman, outgoing ASFP project manager, turned over nine

vehicles, office equipment and project documents to lawyer Laisa Alamia, the ARMM executive secretary, on Thursday at the open grounds of the ARMM compound in Cotabato City. He also turned over 188 one-story school buildings, with a combined total of 317 classrooms, and 12 two-story school buildings constructed by the ASFP. Kuaman turned them over to ARMM Education Secretary Jamar Kulayan.

Kulayan said the school buildings would benefit around 2,000 students. Kuaman said the ASFP “also brought forth best practices in the handling of projects in farflung and depressed communities.”

“The ASFP experience was a big challenge, but by using community development-driven [CDD] method in program implementation, I say we had satisfactorily achieved our aim for projects that created impacts in the grassroots communities,” Kua-

man said.

The ASFP has three major components: community development assistance (CDA), strategic regional infrastructure (SRI) and institutional strengthening and governance (ISG).

“The project was designed to empower ARMM communities through social and economic infrastructure, capacity building of community groups, social cohesion and partnerships, and improvement of local governance and institutional capacities,” he added.

The project also intended “to strengthen and expand the role of the ARMM government in improving the quality and scope of public service, addressing the needs of conflict-affected areas and poor communities.”

The CDA component included livelihood support and food-sufficiency programs that encouraged

recipient communities to identify and decide on the kind of assistance they need, he said.

The SRI component included the construction and rehabilitation of development centers, base ports, hospitals and other important public infrastructure.

The ASFP was established in 2003, and was considered the biggest and only donor-assisted project directly managed by the ARMM government. It was funded through a government loan from the World Bank and the Japan International Cooperation Agency.

“From the ASFP experience, we get the best practices to implement other programs like ARMM Health Education, Livelihood Peace and Security and Synergy, Payapa at Masaganang Pamayanan and the Bangsamoro Regional Inclusive Sustainable Development with Growth and Equity program,” Alamia said.

Boracay Water installs drinking fountains in island

Sorsogon school calls for closure B of coconut-processing plant

ORACAY Water, in support of good health and tourism, recently installed drinking fountains in several of the most accessed places in Boracay to provide clean, safe, potable water to residents and tourists. Ben Manosca, general manager of Boracay Water, said this project highlights the company’s dedication to make potable water accessible and readily available for everyone. “In doing this, we would like to protect tourist and residents from waterborne diseases and other potential health challenges, as the island braces itself for bigger economic and tourism potential,” Manosca said.

Three drinking fountains were installed

in D’Mall, Cagban Jetty Port and D’Talipapa as part of the company’s Lingap Drinking Fountain Project.

This project was made possible in cooperation with the Manila Water Foundation, Philippine Chamber of Commerce Inc.-Boracay Chapter, Sunshine Inns Inc., Tourism Infrastructure and Enterprise Zone Authority (Tienza), and the provincial Government of Aklan. Boracay Water, a company formed through the partnership of Manila Water and the Tienza in 2009, provides water and used-water services in Boracay, Malay, Aklan, particularly in its three barangays— Manoc-manoc, Balabag and Yapak.

BDO Foundation builds schools in Muslim Mindanao

ESTEVEN Garcia (left), a provincial agriculturist, joins Sr. Odelia B. Golloso (center), Divine Healer Academy of Sorsogon (DHAS) director and superior of Sister Servants of the Divine Healer; and Thelma Engay, DHAS principal, in inspecting the fence that separates the school from the coconut-processing plant of Peter Paul Philippines Corp. in Sorsogon City. OLIVER SAMSON

By Oliver Samson Correspondent

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ORSOGON CITY—A school ran by a religious congregation called on the Catholic Bishops’ Conference of the Philippines (CBCP) to intervene for the closure of a coconut-processing plant here following over a year of industrial smoke.

The Divine Healer Academy of Sorsogon was also prompted to seek the bishops’ mediation after Peter Paul Philippines Corp. failed to keep its word of easing the reeking smoke in the last 16 months, said Sis. Odelia B. Golloso, school directress and superior of the Sister Servants of the Divine Healer (SSDH).

“The plant began operation in March last year,” she said. “We started to smell the foul odor in April. By June, we started complaining.” Students and teachers experience headache, dry throat, eye irritation, gastric disturbance, and vomiting,” Golloso said. At times, the school was forced to suspend classes due to the unbearable stench enveloping the campus. The school, located in a retreat compound called El Retiro, is filled with awful smoke particularly between June and mid October, when the plant’s smoke is blown toward it, she said.

Aside from the smoke, the students are also disturbed by “a

rumbling noise” that originates from the plant, Golloso said.

The school has a population of over 340 kinder, primary and secondary students and more than 20 teachers.

El Retiro in Barangay Cabid-An is separated from the plant only by a concrete fence topped with hog wire. Aside from the school, the compound holds an SSDH convent, a formation house, a mother house, and a Poor Claire Monastery.

SSDH arrived here in 1986, Golloso said. The school has been around since 2003.

The school and the religious community were not considered before and during the construction of the plant. El Retiro has earned the esteem of retreatants and families who get-together here for its ambience and solitude until the plant changed that reputation, she said. The company maintains that its plant operation abides by the Department of Environment and Natural Resources’s (DENR) standard.

Quirino Panganiban, Peter Paul Philippines Corp. plant manager, said in a letter to Golloso dated October 3, 2014, that “the bunker fuel boiler was decommissioned on the first week of July 2014” which “might be the cause of the irritating smoke.”

He said that their “biomass boiler was designed based on the DENR standard” and it is

“fueled by coco shell which is organic in nature.”

The plant also conducts a “24hour spraying of organic smell repellant to all possible sources of unpleasant smell,” Panganiban said. Despite this, the students, teachers, school staff, nuns and monks still smell the foul odor of the industrial smoke, Golloso said. Thelma Engay, Divine Healer Academy of Sorsogon principal, like Golloso, is calling for the “closure or relocation of the plant.”

“We suffer almost half a year,” she said. The company had even attempted to bribe the school to loosen its stance, but it refused, Engay said. The school seeks nothing less than clean air, she said.

Esteven Garcia, a provincial agriculturist, expressed apprehension over the hazardous effect in case the smoke happens to be carbon monoxide.

His family living in Sea Breeze also complains of a vinegar-like foul odor when the wind blows toward their direction, he said.

Sea Breeze is over a kilometer from El Retiro and the most populous village in the city, Garcia said.

Golloso is spearheading a campaign mounting more pressure on the DENR to order the closure of the plant, saying “they are supposed to protect the environment, not belch foul smoke in the area.”

DEED of donation signing as witnessed by Mayor Lina Montilla for Elisa P. Bernardo Memorial Elementary School, Tacurong, Sultan Kudarat.

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DO Foundation reached out to Muslim Mindanao to build three school buildings. Each building has two classrooms equipped with a toilet per classroom. Two school buildings were constructed in Tacurong and Isulan in the province of Sultan Kudarat and one in Midsayap, North Cotabato. The project is in partnership with the Federation of FilipinoChinese Chambers of Commerce and Industry Inc. (FFCCCII) in support of its “Barrio School” program.

BDO Foundation partnered with FFCCCII to fund the construction of 10 two-classroom buildings in various provinces visited by last year’s various disasters and included three in Muslim Mindanao.

The schools were selected based on nominations from BDO branch heads who were more attuned to the needs of their communities. Ala Central School in Ala, Esperanza, Sultan Kudarat, was nominated by BH Mark Philip Mariveles, BDO Sultan Kudarat-Isulan branch, while Elisa P. Bernardo Memorial

Elementary School in New Passi, Tacurong, Sultan Kudarat was nominated by BH Karen Hong, BDO Sultan Kudarat-Tacurong branch.

Midsayap Dilangalen National High School was nominated by BH Ronald Alonzo, BDO Cotabato-Midsayap branch. The school buildings were turned over by BDO Foundation President Maureen C. Abelardo with BDO branch managers from Sultan Kudarat and North Cotabato led by BDO Southern Mindanao Area Head Diosdado The, as well as FFCCCII local chamber officials headed by Martin Te, witnessed by school and local government officials in separate turnover ceremonies.

Mindanao has one of the lowest enrollment and literacy rates compared to the rest of the country due to decades of conflict and insurgency in the region.

The construction of additional classrooms will definitely improve the access to education among the youth, a much-needed component in the region’s development.

Panay’s first integrated cold-storage facility inaugurated in Pueblo

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OXAS CITY—The first-ever integrated world-class coldstorage facility in Northern Panay recently opened in Roxas City’s emerging central business district, Pueblo de Panay.

Owned and managed by Panay Cold Chain Services Corp. (PCCSC), a joint venture between Megafridge 168 Corp., owner of Glacier Refrigerated Services Corp., one of the biggest cold-chain operators in the country with a proven track record in cold storage and logistics chain operations, and leading property developer Pueblo de Panay Inc. (PDPI), the Panay cold-storage facility aims to provide integrated cold-storage solutions, and processing and logistics services in Northern Panay Island, which covers Capiz province, Aklan province, Northern Antique and Northern Iloilo. The construction of the new integrated cold-storage facility is bound to improve the coldchain infrastructure on Northern Panay Island with its world-class features and facilities, like drive-in and selective racking system, dedicated refrigeration system of Japanese and German make, lighting system using LED bulbs, engineered and pre-fabricated sandwich insulation panels, built-in power-generating system, wide maneuvering space and stateof-the-art forklifts and materials handling system.

Other premium services include inventory management system, warehouse management flow system, and distribution and logistics service. It will provide a space where farmers, fishermen and other traders can store their produce, and as a result, enhance perishable foodquality standards and help maximize their profit.

“The Panay cold-storage facility is the answer to the needs of the local cold chain business. It will help stabilize prices of select food products and maintain the balance between supply and demand. I am confident that it will have an immediate significant effect to the local economy,” Pueblo de Panay Inc. (PDPI) President and CEO Jose Nery Ong said. The Panay cold-storage facility is also expected to enhance business-development activities of local micro, small and medium enterprises with value-added/export processing capabilities.

The Panay cold-storage facility is strategically located across the Roxas City Integrated Transport Terminal inside Pueblo de Panay, the first mixed-use, master-planned and Filipino-inspired township development in Northern Panay Island.

PDPI is a subsidiary of Sacred Heart of Jesus Prime Holdings Inc. (SHJPHI), whose more than two decades of impeccable and successful track record in real-estate and property development in Northern Panay Island has made it an industry leader in the area. SHJPHI is poised to sustain its significant role in countryside development as the region’s pioneer player through its multibillion-peso flagship project—Pueblo de Panay.

Pueblo de Panay is a 400-hectare mixed-used, master-planned, and Filipino-inspired township development at the heart of the country’s seafood capital, Roxas City, Capiz province, North Panay Island. It is in a natural expansion zone of Roxas City, and is strategically connected to two of only three highways of the city (namely, Lawaan and Sibaguan) via at least eight entrance/exit points.

As a proponent of local ecotourism and countryside development, SHJPHI, through PDPI, is committed to develop Pueblo de Panay into a world-class multifaceted township, sought-after travel and leisure destination with pedestrian and bicycle-oriented developments, and a progressive business district.

The company aims to foster not only economic growth, but also cultural, historical, artistic, educational and culinary advancement in the Northern Panay region.

Economy

BusinessMirror Editors: Vittorio V. Vitug and Max V. de Leon • Monday, November 3, 2014 A5

news@businessmirror.com.ph

Industrial sector lures more East Asian locators to PHL

Bidding for two ITS projects moved anew

XPECTATIONS for the industrial segment of the Philippine real-estate industry remains high as more and more locators, especially from East Asia, are considering moving in to the country for their manufacturing operations.

Jones Lang LaSalle (JLL) Chief Operating Officer (COO) Lindsay Orr told the BusinessMirror that this sector continues to grow steadily as Japanese manufacturers prepare to decentralize their locations away from China.

“The industrial/warehouse sector also looks promising given the interest now being shown by manufacturers looking to scale down in China,” he said. “Korean and Taiwanese manufacturers [also] look for cheaper opportunities here.”

The Philippines has proven popular with warehousing and distribution companies as both consumer-goods companies and logistics firms have expanded locally in the last few years.

“Warehousing and distribution are other areas that have considerable growth prospects, particularly with the development of more industrial-business parks in Central Luzon and the South,” the COO of JLL said.

Properties in Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) area, for instance, typically offer rents from P150 per square meter (sq m) monthly to P200 sq m per month depending on the age of the structure, amenities offered and whether or not it is in a Philippine Economic Zone Authority site.

Meanwhile, Pinnacle Real Estate Consulting Services Inc. said the expanding industrial and manufacturing sector has been filling up even in Clark Special Economic Zone (Clark) and Subic Bay Freeport Zone (Subic). “Between these two special economic zones, the combined available industrial space is less than 150 hectares,” the company said.

From January to July 2014, Clark Development Corp. executed 193 contracts with a total investment of P4.1 billion.

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E

Roderick L. Abad

By Lorenz S. Marasigan

he government’s target dates for the auction of two multibillionpeso Integrated Transport System (ITS) projects were reset anew to give bidders ample time to prepare their bids.

Transportation Undersecretary Jose Perpetuo M. Lotilla said the bid submission deadline for the P2.5-billion ITS Southwest Terminal is now set on December 1, after being deferred several times since it was first offered in December 2013.

The tender was also scheduled on May 15, but was rescheduled to June 16 so bidders can have more time to finalize their bids. But, changes were made in the contract to increase investor appetite, thus, forcing the agency to postpone the bidding to August 30.

It was then moved to September 29.

However, another round of revision on the project structure was made, hence an indefinite postponement.

Lotilla added that his agency has moved the deadline for the submission of qualification documents for the P4billion ITS South Terminal deal to No-

AIR-CONDITIONED POULTRY

Roxas, Isabela, Municipal Agriculture Officer Ernesto Paccarangan Jr. (left) conducts a routine inspection in an air-conditioned poultry house in Barangay Lugban. Some 30,000 broilers are being grown at controlled temperature in the facility. LEONARDO PERANTE II

DENR alerts public on fake ECCs

By Jonathan L. Mayuga

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nvironment Secretary Ramon J.P. Paje warned the public against unscrupulous individuals using fake documents purportedly coming from the Department of Environment and Natural Resources (DENR), or any of its offices, for their money-making schemes.

The DENR chief issued the warning following the discovery of a fake environmental compliance certificate (ECC) purportedly issued by the agency to a tribe in Zamboanga del Sur for a “Minahang Bayan” operation.

The document used the letterhead of the Environmental Management Bureau, the office that issues ECCs, one of many documentary requirements in operating a business.

The fake ECC was purportedly issued to a certain Balabag Indigenous People’s Minahang Bayan Produc-

ers Cooperative (BIPMBP). The document bore forged signatures of DENR officials, including that of Paje.

Mines and Geosciences Bureau Director Leo L. Jasareno’s signature under the “Recommending Approval” heading was also forged in the said document, while the forged signature of the DENR chief appears under the “Approved by” heading.

The ECC supposedly gives BIPMBP the clearance to conduct “open-pit and tunnel method” of mining gold and other minerals covering 25,000 hectares in Sitio Balabag, town of Bayog.

Paje warned the public that the document is a forgery. He said no such ECC has ever been issued or approved by his office.

Jasareno also said no such ECC was issued or recommended for approval by his office.

He said DENR records show that no such ECC was issued to any group. He said that his signature affixed to the fake ECCs was not his.

Photographic activities a booming business

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By Cai U. Ordinario

entimental and social media-savvy Filipinos paved the way for the mushrooming of establishments engaged in photographic activities, according to the Philippine Statistics Authority (PSA).

In the 2012 Census of Philippine Business and Industry, the PSA said the photographic-activities industry had the highest number of establishments in the professional, scientific and technical activities sector.

Data showed that there were a total of 1,567 establishments engaged in photographic activities nationwide. This accounted for 22.8 percent of the total number of establishments in the sector.

The photographic-activities industry employed 7,223 Filipinos nationwide, but paid the lowest in terms of total compensation.

With only 6,539 of its employees paid, the total compensation the industry paid in 2012 only reached P698.64 million,

or roughly P8,900 a month.

“Those employed in photographic activities were paid only P106,800 per year,” the PSA added.

The industry posted a total income of P6.01 billion, but had total expenses of P5.62 billion in 2012. The category “other expenses” had the biggest share in its biggest operating cost amounting to P4.92 billion.

There were a total of 6,867 establishments engaged in the Professional, Scientific and Technical Activities sector.

About 89.5 percent, or 6,145 establishments, had total employment (TE) of less than 20. The remaining 10.5 percent or 722 establishments, were with total employment of 20 and over.

Apart from photographic activities, other industries that posted a high number of establishments are those engaged in legal activities with 1,328 establishments, or 19.3 percent of the total, and those that undertake management consultancy activities with 897 establishments, or 13.1 percent.

vember 25 from November 4.

“This is to give prospective bidders ample time to prepare their qualification documents, which shall be opened immediately,” he said.

Deadline for the submission of bids is set on March 16 next year.

The Southwest deal has so far attracted 12 prospective investors, namely: D.M. Wenceslao and Associates Inc.; Ayala Land Inc. and Ayala Corp.; Metro Pacific Tollways Corp.; San Miguel Corp.

(SMC); Vicente T. Lao Construction; Egis Projects Philippines; Robinsons Land Corp.; Filinvest Land Inc.; Megawide Construction Corp.; States Properties Corp.; Expedition Construction Corp.; and Altus San Nicolas Corp.

Five investors, meanwhile, are interested to bid for the multibillion-peso South Terminal deal. They are San Miguel

Corp. and Ayala Land Inc., Datem Inc., Filinvest Land Inc., and Megawide Construction Corp.

The Southwest Terminal project, which will be constructed in 2.9-hectare area near the Manila-Cavite Toll Expressway (Cavitex), will connect passengers coming from Cavite to urban transport systems in Metro Manila.

The South Terminal deal, meanwhile, aims to provide a central transport terminal where all modes of transportation will be available in one terminal, which will be near the Food Terminal Inc. compound.

It will connect passengers from the Laguna/Batangas side to other urban transport systems such as the future North-South Commuter Rail, city buses, taxis and other public-utility vehicles that serve inner Metro Manila.

The two hubs will include a passenger terminal building, arrival and departure bays, public-information systems, ticketing and baggage-holding facilities and park-ride facilities.

Since the infrastructure program’s inception in 2010, the government has awarded eight contracts so far. These are: the P1.96-billion Daang Hari-South Luzon Expressway project, bagged by Ayala Corp. in 2011; the P16.42-billion first phase of the PPP School Infrastructure Program,

which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc., as well as the BF Corp.-Riverbanks Development Corp. Consortium; the P15.68-billion Ninoy Aquino International Airport expressway, given to SMC unit Vertex Tollways Development Inc. in 2013; the P3.86-billion PSIP Phase II contract, partially awarded last year to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construction consortium; the P5.69-billion modernization of the Philippine Orthopedic Center project, which went to the Megawide-World Citi Inc. consortium also last year; the P1.72-billion Automatic Fare Collection System contract, awarded to the AF Consortium of Ayala and Metro Pacific Investment Corp. in January; the P17.5-billion Mactan-Cebu International Airport New Passenger Terminal project, bagged in April by Megawide Construction Corp. and GMR Infrastructures Ltd.; and the P64.9-billion Light Rail Transit Line 1 Cavite Extension deal, awarded in September to Light Rail Manila Consortium of Ayala and MPIC. The administration aims to sign at least 15 contracts by the time President Aquino steps down from office in 2016.

Tourism

A6 Monday, November 3, 2014 • Editor: Alvin I. Dacanay

The island of Sicily: Five free things to do

THIS September 2014 photo shows the Norman cathedral of Cefalu in northern Sicily.

S    C B | The Associated Press

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ALERMO, Sicily—Sicily is the Mediterranean’s largest island, and a trip around this triangularshaped ancient land can be particularly rewarding for those in search of free things to do.

Besides Sicily’s sights, smells and sounds—the feast of wildflowers in the rainy months, colorful street markets in towns and cities alike, picturesque faces and places around every corner—many of the island’s greatest gifts are free.

Mountains

THERE are three extensive regional parks to explore—those of Mount Etna, and the Nebrodi and Madonie mountains. In each of these reserves there are a wealth of hiking trails, rivers and spectacular gorges to navigate. Many paths skirt the smoldering volcano of Etna, which offers one of the most spectacular free shows on earth during its frequent eruptions. Near the volcano is the Gole dell’Alcantara, a gorge where incredible rock formations seem to dance with the shadows of the sparkling water. The Nebrodi mountains also offer hiking trails, lakes, forests and historic sites. Next to the Nebrodi are the Madonie mountains, where walkers of various ability levels can choose a path to reach the summit of Pizzo Carbonara, the island's secondhighest peak. One particularly rewarding and challenging route winds through an ancient grove of holly trees, among the oldest in the world.

The sea

WHEN you think of Sicily, you can’t help but imagine the sea. Sicily's

THIS September 14 photo shows men carrying an image of the Crucified Christ to commemorate the Feast of the Holy Cross in Castelbuono, a mountain town in the Sicilian province of Palermo.

coasts are dotted by public beaches and gorgeous quiet spots. Besides the beaches of the main island, Sicily’s satellite islands—the Aeolian and Egadi are the easiest to reach— offer stunning oases. To enjoy the sea at its best, go to the protected marine area of the Egadi islands, where sea life flourishes. The western and southern coasts are flatter and sandier with beaches that can appear endless. The northern coast offers reefs and sea life for the snorkeler and a variety of locales for the sun-worshipper, from the sandy tourist beaches of Cefalu and Mondello, near Palermo, to slices of peaceful bliss among rocky outcroppings, especially where the regional park boundaries touch the shore.

The Norman cathedrals

IN the Middle Ages Sicily was conquered by the Normans, bands of northern knights who were leading the Crusades at the time. In Sicily the Norman kingdom merged northern and Muslim aesthetics to create one of Europe's most fascinating architectural styles. Awe-inspiring vaulted ceilings, glass mosaics with rich golden backgrounds and moving depictions transfix visitors. The cathedrals at Monreale and Cefalu are open to the public and free, giving one the chance to appreciate their splendor in various lights and when Mass is being celebrated.

Targa Florio

FOR those who like motor sports, Sicily remains a great destination to watch open-road racing. The biggest of these events is connected to the historic Targa Florio, an open road race begun in 1906 that took racers onto the hair-raising mountain roads near Palermo. The Targa Florio became a celebrated event of daring and innovation, but it eventually became too dangerous, both for drivers and spectators. Regardless, the event continues as a rally in May, where classic and modern souped-up cars roar through the narrow mountain switchbacks above Termini Imerese. Other motor sports give visitors the chance to combine speed with breathtaking panoramas, including auto slalom races and other similar sporting events on many parts of the island.

Festivals

IT’S not an exaggeration to say there’s a town festival nearly every week somewhere in Sicily. Celebrations for patron saints, religious days, local food, music and art pop up around the island in all seasons.

Among the biggest and most celebrated festivals are those connected to Easter. Trapani's daylong Easter procession—the Misteri di Trapani—is best known for its masses of people, its ornate wooden statues, music and the range of emotions displayed by participants and viewers alike. The hours-long procession evokes everything from frenzy to sorrow to joy as bearers bolster the statues through crowded streets. More secular delights include indulging in April’s artichokes cooked in a myriad ways in Cerda or cheering on the men of Cefalu as they try to grab a fl ag from the end of a greased pole suspended over the sea during the town’s Saint Salvatore festival in early August.

m&Entertainment BusinessMirror

tourism@businessmirror.com.ph • Monday, November 3, 2014 A7

TURKEY

THRIVING IN HISTORY AND HEALTH CARE

HAGIA Sophia. NARYA/PIXABAY

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ASPENDOS Theater. BETACOMMANDBOT/ WIKIMEDIA COMMONS (CREATIVE COMMONS 2.5)

B G A K | Arab News (TNS)

URKEY has emerged as one of the world’s top destinations for medical tourism as it tries to boost tourism revenue.

History fanatics, adrenaline junkies, sunbathers and foodies are all in for a treat when they go for a holiday in Turkey, but the nation is also drawing tourists who are seeking to take advantage of Turkey’s competitive edge in medical tourism.

Today Turkey is the world’s sixth top destination in terms of tourist numbers.

Out of the roughly 35 million tourists who visited Turkey last year, about 188,095 came for surgical procedures, from hair transplants and liposuction to cancer and orthopedic treatments, according to the World Tourism Organization (WTO).

The number of medical tourists who visited Turkey in the first six months of 2014 totaled 162,445, with revenues reaching $328 million.

“Currently, more than 1,000 patients travel to Turkey every year to take advantage of the medical services we offer,” said Fatih Ozturk, the project manager of VisitandCare. com, a patient-and-doctor-matching service that helps visitors from the Middle East and Europe.

Meanwhile, those from less developed nations are attracted by the Western-trained medics and new facilities that are sprouting as Turkey’s private health-care industry flourishes.

Plus, the fact that Turkey is a central tourist attraction in the region also helps.

Turkey’s Health Ministry said the country has great advantages in terms of health tourism, thanks to its very convenient geographical location.

“The country has made significant improvements and began to compete with countries such as India, Malaysia, Thailand and Hungary, which are strong in the sector,” the ministry said.

Foreign institutions, including Malaysian sovereign fund Khazanah Nasional, Qatar’s First Investment Bank, Argus Capital Partners

and the World Bank’s International Finance Corp. have put money in the Turkish health-care sector.

The country is building medical facilities through public-private partnerships, under which the state will rent city hospitals built and run by the private sector for 25 years.

Thriving tourism sector

THE boom that Turkish medical tourism is enjoying right now is one indication that the country’s tourism sector continues to thrive.

Another is the recording of a 7-percent increase in the number of visitors to Turkey in the first eight months of the year, which Turkish Tourism Minister Omer Celik welcomed.

He said recently that close to 25.7 million tourists came to Turkey between January and August, compared with the 23.7 million recorded in the same period last year.

This is a very good record, he said, because it exceeded the 4-percent to 5-percent growth that the WTO has projected for global tourism this year. Among foreign visitors to Turkey, Germans topped the list, followed by Russians and Britons.

As these tourists have discovered, Turkey offers a wide range of splendid destinations, from the dome and minaret-filled skyline of Istanbul to the Roman ruins along the country’s western and southern coasts, from the beaches of Antalya and the Mediterranean seaside resorts to the misty mountains of the eastern Black Sea. With so many amazing destinations, a top 10 list is bound to leave out some great tourist attractions in Turkey.

So consider the list of destinations below as just the start of a great holiday in Turkey.

The fi rst is Aspendos Theater, regarded as one of the best-preserved ancient theaters of antiquity. It was built in 155 AD, during the rule

of the Roman Emperor Marcus Aurelius. The theater could seat between 15,000 and 20,000 spectators.

Next is Patara Beach, which is widely regarded as the longest beach in the Mediterranean.

Then there is Pamukkale (“cotton castle” in Turkish), a place in western Turkey that is famous for its white terraces, which are made of travertine, a sedimentary rock deposited by mineral springs, especially hot ones.

Historic structures

TURKEY is also called a land of castles and mosques. One such castle is Bodrum Castle, found in the city of the same name in southwest Turkey.

It was built by the Crusaders in the 15th century as the Castle of Saint Peter. It is one of the world’s bestpreserved monuments that date back to medieval times.

The castle now operates as a museum; the Museum of Underwater Archaeology is found inside it. It overlooks the internal marina of Bodrum, which is filled with millions of dollars worth of sailing vessels.

On the other side is Nemrut, a

2,134-meter-high mountain found near the city of Adiyaman in southeastern Turkey. Its summit offers a great view of the surrounding mountains. Visitors can watch the sunrise from the eastern terrace, giving the stone heads found there

a beautiful orange glow that adds to the mystique of the place.

A visitor to Turkey can also enjoy its pastoral charm by visiting Ölüdeniz, a small village and beach resort on the country’s southwest coast. This beach—one of the most

photographed on the Mediterranean—is famous for its shades of turquoise and aquamarine.

The long list of attractions in Turkey also includes the famous Blue Mosque, which has six minarets and boasts of sweeping architecture. It was built between 1609 and 1616. Like many other mosques, the Blue Mosque houses the tomb of its founder.

Another attraction is the ruins of Ephesus, found in the country’s west coast. Some of the ancient city’s structures can still be seen, including the Great Theater and the Library of Celsus. This library was built about 125 AD to store 12,000 scrolls and to serve as a monumental tomb for Celsus, who was the governor of Asia during Roman times.

Another holdover from ancient times is Cappadocia, which is famous for its weird and wonderful rock formations and unique historical heritage.

However, great these structures are, none are greater or more famous than the Hagia Sophia.

Found in Istanbul, the Hagia Sophia was originally a Christian basilica constructed for the Eastern Roman Emperor Justinian I in 6th century AD. A masterwork of Roman engineering, the massive dome (31 meters, or 102 feet in diameter) covers what was, for over 1,000 years, the largest enclosed space in the world.

BIRD’S-EYE view of Ölüdeniz. DAN TAYLOR/ WIKIMEDIA COMMONS (CREATIVE COMMONS 2.0)

TheElderly BusinessMirror

A8 Monday, November 3, 2014 • Editor: Efleda P. Campos

Antipolo City forum tackles senior, PWD discount privileges

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By Oliver Samson | Correspondent

EPRESENTATIVES of more than 30 companies doing business in Antipolo met on October 29 with over 100 senior citizens and persons with disabilities (PWDs) for mutual understanding and compliance of the law at the Forum on the Rights and Privileges of Senior Citizens and PWDs at SM Masinag.

Noli Villafuerte, Office for Senior Citizens Affairs (Osca) Makati consultant and resource person, discussed some points of Republic Act (RA) 9994, also known as the Expanded Senior Citizens Act of 2010, to bring restaurants and senior citizens into mutual awareness for the 20-percent dining discount older citizens enjoy. This is minus the 12-percent value-added tax given by some restaurants to senior diners.

Villafuerte also cited provisions of RA 9994 that call for pharmacies and senior citizens into reciprocal understanding of the 20-percent discount on medicine prescribed by their doctors.

The 20-percent discount on medicine could be availed of by senior

citizens only with a prescription note from a duly authorized physician, said Martina Beltran, Osca Antipolo staff.

Villafuerte, who hosts a senior citizens forum at dwIZ, encouraged senior citizens to take advantage of the discount on dining and medicine, and urged restaurant owners and pharmacies to honor these privileges.

Beltran made clear that, on consumption commodity, only basic needs are discounted under RA 9994.

Bakery products and cakes are not covered by the discount privilege, she said.

The half-day forum at SM Masinag saw over 70 senior-citizen leaders and representatives from the 16 barangays of Antipolo.

More than 60 PWDs, who are

Older adults need to guard vs sarcopenia or muscle loss

By Rizal Raoul Reyes

W

Correspondent

HEN an individual is over 50 years old, he or she will start experiencing the symptoms of Sarcopenia, the gradual and progressive loss of muscle mass, strength and functionality due to aging.

Some of the symptoms are having difficulty climbing stairs, unable to carry heavy loads and loosening of the hand grip.

However, people in this bracket don’t need to worry as there are alternatives to make their lives fruitful and productive.

“Maintaining health as we age is an important concern for all adults. In healthy young adults, 30 percent of body weight is muscle and 20 percent is adipose tissue or fat. As early as the age of 40 and by the age of 60, our body would have lost 20 percent of its total muscle mass. By age 75, our body would have only 15-percent muscle; and adipose tissue, or fat, is 40 percent, which can hinder adults from doing daily tasks,” said Dr. Cheridine Oro-Josef, chairman of the Geriatrics Committee of the Philippine Academy of Family Physicians (PAFP) in a recent news briefing at the Bonifacio Global City.

The high nutritional intake of protein and vitamin D should be complemented by resistance exercise to reduce the risk of Sarcopenia and improve muscle health so adults can continue doing the activities that they enjoy, such as dancing, sports, traveling, pursuing a new interest, or completing their bucket lists.

Forms of resistance exercises are pushups and lifting of weights.

“The adult concerned should consult their doctor on the right level of resistance exercise they should pursue,” Josef said.

“They should remember that individuals have different capabilities

and body types,” she said.

Citing a study, she said pursuing physical activities is important to adults because they want to remain productive so they can make life meaningful for them as they age.

Seeing this need of the seniors, United Laboratories Integration Manager Barry Barrientos said the company is aware of the needs of senior citizens for supplements that have high-quality protein and vitamin D. In response, Unilab is promoting the Enervon Prime as a health supplement.

Meanwhile, Unilab is organizing a Seniors Prom, a series of decade-themed prom nights one Friday every month from October to January 2015. It will turn the hands of times as guests will sing and dance to their favorite songs from the 1950s to the 1980s. This will kick off with the Prime Time Seniors Prom: 1950s Flashback on October 24, 2014 at the RJ Bistro in Dusit Hotel, Makati.

The Seniors Productivity Fair in December is a one-day event that will bring together all fun and exciting productive activities that adults can engage in like arts and crafts, fitness, travel, education, fashion and volunteerism.

“We, at Enervon Prime, are excited to be part of the next chapter of our consumers’ lives. We understand the physical, mental and emotional effects and limitations that may come when you hit 50 and, more so, after retirement.

But we also know that this is their ‘prime time’ to pursue their passions and fulfill their bucket lists as they reap the fruits of their labor and enjoy the rest of their lives. We believe that through proper nutrition, we can help our consumers stay stronger for longer and equip them with the strength to do what’s next,“ said Raine Romero-Calma, Enervon assistant product manager.

ANTIPOLO’S senior citizens, people with disabilities, and representatives from business establishments listen as Noli Villafuerte, Office for Senior Citizens Affairs Makati consultant, discusses the rights and privileges under RA 9994 of the elderly on October 29 at The Event Hall in SM Masinag. OLIVER SAMSON

seeking awareness and compliance by business establishment on their rights and privileges under the PWD law, joined the forum, Esperanza Cervantes and Loreto Jolloso Jr. of the PWD office in Antipolo said.

Senior-citizen leaders, who attended the discussions, would reecho the rights and privileges under RA 9994, particularly discounts on dining and medicine, to fellow old hats in the barangays, Beltran said.

Antipolo, with 16 barangays, currently has an estimated number of 60,000 active and non-active senior citizens, she said.

Represented companies at the

Forum on the Rights and Privileges of Senior Citizens and PWDs include Mercury Drugs, Generic Pharmacy, Jollibee, McDonald’s and Tropical Hut, the PWD office staff said.

The forum was jointly sponsored

by Osca Antipolo and the city’s PWD office following complains by both sectors regarding particular business establishments that allegedly refuse to honor discount rights, Beltran said.

Osca encourages senior citizens who have complaints against certain business outfits regarding discount privileges to visit the office and seek settlement.

Caloocan City presents birthday packages to seniors

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ALOOCAN City Mayor Oscar Malapitan said City Hall will bestow gifts to all senior citizens celebrating their birthdays.

In a statement, Malapitan emphasized that it is appropriate to pay tribute to the parents of today’s laborers, or working group, who are unwaveringly and diligently sacrificing to provide for the education of their children. These children are now productive citizens, who play a vital role in the country’s economy.

A birthday package consists of groceries, such as spaghetti, canned goods, cheese, condiments, all with an attached birthday card signed by the mayor.

“Our city’s Social Welfare and Development Office, in coordination with the Office of the Senior Citizens’ Affairs (Osca), are now

stock-piling birthday gifts of 7,418 packages, which already cover the senior citizens of Caloocan City, whose birthdays are from October 2014 up to January 2015,” the mayor said.

Malapitan said they will be having around 400 to 500 birthday celebrators every week. Delivering packages right at their homes will be a “logistical nightmare,” but the city government will do everything just to fulfill its promise “to the elderly who served as the foundations of our society’s wisdom and morality.”

As news regarding the distribution of birthday packages circulated among communities, Osca expressed surprise after this resulted to the abrupt influx in the number of registrants applying for senior citizenship. PNA

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Active aging

By Cheridine P. Oro-Josef, MD, FPAFP, FPCGM

right to health

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an a 90-year-old still be called to active aging? How do you promote active aging among the old old 80 years old and above?

Being active in old age does not necessarily mean being into full sports or strenuous physical exercises. The call to be active is a platform we can use to face the opportunities and challenges of an aging population.

One way to longevity is to promote active aging across all ages. Active aging promotes successful aging, regardless of age. We have to engage in life within the seven dimensions of wellness: emotional, environmental, intellectual, physical, vocational, social and spiritual.

The International Council on Active Aging (ICAA) has created Nine Principles of Active Aging, a model to guide governments, product and service providers, employers and the healthcare industry on how they respond to the aging of the population. By implementing and operating by these guiding principles, organizations and agencies will be able to build a foundation for their efforts and encourage active, engaged living for people of all ages.

As written by Colin Milner in “Building the Foundation for Active Aging,” these nine principles are: Populations: The diverse population of older adults requires diverse solutions. Taking into consideration the different physiological changes of aging, older population presents with unique needs and challenges.

Perceptions: Ageism and negative stereotypes of aging impede an inclusive society. Older persons may be viewed either as a burden or a treasure, depending on family dynamics. Unrealistic perceptions of older persons can have a negative impact on their well-being.

People: Trained and committed individuals are needed to meet the needs of older adults. Depending on society’s perceptions, people should be competent to support the older populations’ needs. The heart and passion to serve the elderly should be a tangible reality among those who work for them.

Potential: Population aging is creating new economies. Older population will be making use of new focused economies.

Products: Products and services that tailor to older adult needs. The use of devices and, perhaps, utilities addressing the concerns of the elderly will need to be developed.

Promotions: Older adults are a key market to attract. Effective promotions and marketing should be applied to the realities of older persons.

Their purchasing power is immense.

Places: Environment must be constructed to enable multiple functional abilities, such as older person friendly side streets, etc.

Policies: The human rights of older adults should be protected. Republic Act 9994, or the Senior Citizens Act, should be properly implemented.

Programs: The seven dimensions of wellness are anchored on the principles of active aging.

We have to be ready to face the future and enable a healthy, happier life for us when we age.

Cebu City gives P100,000 each to four centenarians

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EBU CITY—The Cebu City gover nment has g iven P100,000 to each of the city’s four centenarians.

The four—Maxima Cabilao of Barangay Kamputhaw, Paulina Sy of Barangay Kasambagan and Cristina Abella of Barangay Ermita—had difficulty walking but came to claim their P100,000 cash gift during the culmination activity of the senior citizens’ month at the Cebu City Coliseum on Friday.

Rosario Ynclino, 101, of Barangay Basak, San Nicolas, was also included in the list of those who qualified for the cash gift, but she was unable to claim the money.

Her daughter, lawyer Bingo Gonza-

les, claimed the incentive on her behalf.

“She can still walk but she could not come to get her cash because she was restless and did not have enough sleep last night,” Gonzales said.

Cebu City Mayor Michael Rama handed the money to the three centenarians and to Gonzales. Cabilao, an old maid, lives with her nieces and nephews in her old house on Gorordo Avenue in Barangay Kamputhaw.

Nelida Cabilao-Seno, one of Maxima’s nieces, said their aunt earned a living as a vendor in Carbon Public Market until she reached the age of 75.

Asked what is her secret for long life, Cabilao said she lived a healthy life and prayed that she be given a long life. PNA

NorCot elders’ contribution to peace and development cited

K

IDAPAWAN CITY—North Cotabato Gov. Emmylou Mendoza on Friday lauded the senior citizens of North Cotabato for its contribution to peace and order campaign of the provincial government.

Mendoza led the seniors during the culmination program of the Senior Citizens Month at the provincial capitol grounds here.

“Your wisdom as senior citizens helped a lot in our campaign for peaceful community,” Mendoza said in a statement read for her by North Cotabato Provincial Administrator Van Cadungon.

About 1,000 elders attended the culmination program who also shared their little contributions to the overall campaign of attaining peaceful communities in the province.

Mendoza also lauded the officers of Federation of Senior Citizens Association of the Philippines (FSCAP) for making themselves part of the concerted efforts to bring about peace and development in far-flung communities, despite their age and physical status.

FSCAP President Rolando B. Pagtolon-an Sr. said the culmination program also provided them an opportunity to discuss issues and concerns affecting the elderly and the government’s program for them. PNA

Grandpa’s corn delight At 72, “Lolo” Gerardo

Domingo of Barangay Nuesa, Roxas in Isabela enjoys peeling fresh glutinous corn before selling it at the farmers’ market in town. Despite his age, the enterprising elderly farmer still manages to market his produce. LEONARDO PERANTE II

Opinion BusinessMirror

A10 Monday, November 3, 2014

Editor: Alvin I. Dacanay

editorial

Filipinos and the ‘life satisfaction’ survey results

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NEW global survey from the Pew Research Center, a nonpartisan “fact tank” in Washington, D.C., shows that people in emerging-market countries are catching up to advanced economies in terms of life satisfaction.

The survey, released last week, asked respondents to place themselves on the “ladder of life” on a scale of zero to 10. For example, people were asked how satisfied they were with their health and the safety of their neighborhood.

Not surprisingly, the richer the nation, the higher the overall life satisfaction. But it was not necessarily income that influenced the answers. It came down to having more “stuff.” The amount of household goods had four times the effect on positive and high survey scores as did income. The amount of things that a person owns had 10 times as much impact on the answers as did the quality of a person’s job.

Being married or single did not significantly influence the final score. However, age plays a big role. The most satisfied were the 20- to 25-year-olds, followed by the 75-to-80 age group. The least satisfied were the 50- to 55-yearolds, perhaps, because they have to take care of their young adult children and worry about their elderly parents.

In order to make general comparisons between countries, Pew Research consolidated the results down to what percentage of the population rated their life satisfaction in various areas as seven, eight, nine or 10. The global leader— with 79 percent of the answers being seven, eight, nine or 10—is Mexico, followed by Israel (76 percent). The United States comes in at 65 percent, while the Philippines is at a low 38 percent.

The Philippines’s overall satisfaction score comes in slightly below those of all our neighbors. Our highest satisfaction score—80 percent—was in “Religious life”, while the lowest—54 percent—was in “Standard of living”.

Perhaps, the most disturbing thing about this is the Filipinos’ perception of progress over the last five years. Only 41 percent of our people think our situation is better today than five years ago, as opposed to 56 percent of Thais and 59 percent of the Vietnamese. More depressing is that 31 percent of our people think things are worse today than five years ago, in contrast to only 19 percent of Malaysians and 27 percent of Indonesians.

There seems to be a big disconnect from what the government is telling the people about the nation’s progress and what the people are telling Pew Research.

What do we think about our country’s and our personal future? Sixty-eight percent believe that, in five years, our situation will be better than today. Only 18 percent think that there will be no improvement, while 11 percent think our situation will be worse.

Overall, compared to other nationalities, Filipinos may be more realistic about their life situation, or maybe we are just inherently more cautious and have lower expectations.

BusinessMirror A broader look at today’s business Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief

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Dennis D. Estopace Eduardo A. Davad Nonilon G. Reyes Romeo M. del Castillo Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan

Business: It’s more fun in the Philippines Atty. Jose Ferdinand M. Rojas II

RISING SUN

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HE Philippines climbed 13 spots in the World Bank’s Ease of Doing Business list, from No. 108 last year to No. 95 (out of 189 countries), following a change in the research methodology.

Last week the World Bank released its report, “Doing Business 2015: Going Beyond Efficiency”, which states that government reforms led to the double-digit improvement in the Philippines’s ranking.

In the “resolving insolvency” category, the Philippines jumped from 100th to 50th place, while in the “getting electricity” category, it went up 17 places from No. 33 to No. 16.

The Philippines was the fifth most improved nation, after Vietnam, Thailand, Malaysia and Singapore.

Also, the country’s performance in global best practices earned it a score of 62.08, close to Indonesia’s 59.15 and Vietnam’s 64.42.

However, in the “dealing with construction permits” category, the Philippines fell 25 places, from 99th to 124th. It also remains one of the most difficult countries to do business in, due to its requiring the most steps and permits before opening a business, compared with other Southeast Asian nations. Philippine

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STEADIER interest rates may be in the offing in the coming year following the United States Federal Reserve’s (the Fed) decision to end its stimulus program, which lasted more than five years.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said last week that “the Fed’s announcement of the end of [the program]…confirms the underlying strength of the US economy, [and] it

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INFLOW of remittances recorded a 6-percent increase in August to $2.1 billion from $1.9 billion in the same period last year, according to the BSP. About 10 million overseas Filipinos contributed part of their earnings, represented by the remittances, to the country’s economic growth in the third quarter.

Cash remittances from January to August totaled $15.5 billion, an increase of 5.8 percent from the $14.7 billion posted in the same period last year.

Nearly a tenth of gross domestic product comes from remittances, which, generally, are spent on household expenses, travel, education, retail, health care and real estate, among others. nnn

THE Philippine Charity Sweepstakes Office (PCSO) celebrated its

Three pillars of policy tightening Paul Donovan

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laws and regulations require 16 procedures, while Thailand needs only four and Singapore and Malaysia require three.

Such reports are welcome and helpful. The good news shows that our efforts have borne fruit, while the rest reveal gaps and areas for improvement. This should inform and channel the needed changes that will result in a better business climate that will attract foreign investors and further encourage local entrepreneurs.

should be positive for the emergingmarket economy trading partners of the US, including the Philippines.”

He added that the end of the stimulus “gives us some latitude to keep rates steady, as our own domestic inflation dynamics [are] fairly stable,” but warned that there could still be “some market volatility before the actual lift happens.” He said the BSP would closely monitor market conduct.

Last Thursday the Philippine Stock Exchange index climbed 1.1 percent to 7,170.99 after news of more stable interest rates broke out.

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ENTRAL-BANK policy is already being tightened. The problem is, in the world after quantitative policy, central-bank policy can no longer be represented by a simple interest-rate line on a chart. Policy has become more complex, and that complexity is something that markets seem to overlook. Central-bank policy now rests on three pillars, and tightening in any of these will restrict economic activity.

The first pillar of policy tightening is quantitative policy. Both the United States Federal Reserve (the Fed) and the Bank of England (BOE) are now tightening it. Although the Fed only intended to stop its bond purchases at the Federal Open Market Committee meeting last week, it has already been tightening. This is because the balance sheet of the Fed has begun to shrink as a proportion of US gross domestic product (GDP).

In normal circumstances, that balance sheet should grow in line with the nominal growth of the US economy, in order to keep a steady relationship between the liquidity in and the size of the economy. With the Fed growing its balance sheet at a slower rate than nominal GDP growth, the ratio has declined. The BOE’s position is even more advanced: Its balance sheet peaked as a share of the economy at the end of

the first quarter of 2013, and has been slowly, but steadily declining ever since.

The second pillar is financial regulation. Financial regulation used to be a significant weapon in the armory of any central bank. Regulation fell into disuse during the 1980s, but it is unquestionably back today. Policy regulation can work in two ways. First, regulation of the banking sector can force banks to hold more liquidity, and that has been a policy across the world’s major economies since 2009. The more liquidity that banks are forced to hold as idle balances, the less stimulatory any central-bank injection of liquidity will be. Not only are the US and the United Kingdom tightening policy in this manner, the European Central Bank (ECB) seems to be creating a regulatory climate that replicates a policy tightening. Second, central banks can directly

intervene to limit credit creation in an economy.

The BOE is the leading proponent of this policy.

Restrictions on UK mortgage credit creation, put in place over the summer, have started to have a visible impact on both mortgage lending and housing-market activity.

The third pillar is the conventional form of monetary policy tightening. Raising interest rates will be contemplated in the coming months, at least in the Anglo-Saxon world. It is worth remembering that real, or inflationadjusted, interest rates are resolutely negative.

As inflation starts to increase, the real interest rate will become even more negative. If left unchanged, therefore, monetary policy will actually ease, rather than tighten (as it is real interest rates that matter to economic stimulus).

From a policymaker perspective, different combinations of policy tightening can be put in place to achieve the desired outcome (which is, presumably, the control of inflation). Each policy will have different implications for different parts of the economy, however. Tightening monetary policy, for instance, will impact both existing and new borrowers of floating-rate debt. Financial regulation is only likely to impact new borrowers of debt, and existing borrowers will be less affected. Thus, the BOE’s current policy leaves the household cash flow of existing mortgage payers unaffected, but is working to restrict the creation of new credit in the economy.

From an investor perspective, these differences may matter. Policy tightening will not only have different and direct consequences for financial markets—quantitative policy and

80th anniversary last week with various activities, including a medical mission and a “homecoming” for employees.

Service awardees were honored during the latter event, which was held last Monday. The “topnotcher” was Carlos Castillo, who has been a PCSO employee for 47 years.

He joined the agency as a 17-yearold janitor in 1967 and worked his way up, serving as sales-department and racing-department manager at various points in his career.

Those who have worked in the PCSO for decades have many stories to tell about the institution, with the common theme being the thousands upon thousands of people that the charity agency has helped through the years, and how much hope and comfort the assistance extended by the PCSO has brought into their lives.

It is an honor to serve one’s country in any capacity, and to be a public servant is one of the most meaningful ways of doing so. Castillo and other government workers who have devoted their lives in service to their fellow Filipinos deserve to be recognized for their efforts and commitment.

And to the PCSO, happy 80th anniversary, and we wish for more decades of charity, care and compassion!

Atty. Jose Ferdinand M. Rojas II is the vice chairman and general manager of the Philippine Charity Sweepstakes Office.

bond markets being the most obvious—but also have indirect impacts through the reactions of consumers and companies. Central banks may tighten and ease policy at the same time, as the ECB is arguably doing with a policy that effectively eases credit conditions for larger companies without creating many immediate benefits for smaller companies. There are further complications for those counties that seek to tie their foreign-exchange rates to developed economies, for interest-rate changes may cease to be the dominant policy tool (and if, for instance, US rates are kept lower because tightening takes place through one of the other two pillars of policy, countries with dollar pegs may end up having too accommodative a domestic monetary policy).

The global financial crisis has made things more complex in many areas. Investors need to become more sophisticated in their analysis of central-bank policy. A chart of the policy interest rate is no longer a guide to how the central bank is seeking to influence economic activity.

Paul Donovan is the managing director and deputy head of global economics of Zurich-headquartered UBS. He is responsible for formulating and presenting the UBS Investment Research global economic view, drawing on the bank’s worldwide resources.

Donovan took up philosophy, politics and economics at Oxford University. He holds an MSc in financial economics from the University of London.

In the Philippines his column appears exclusively in the BusinessMirror once a month.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Toward an inclusive and The looming state failure sustainable future for industrial development Teddy Locsin Jr. Free fire

By Li Yong and A.L. Abdul Azeez Inter Press Service

V

IENNA—As representatives of the United Nations Industrial Development Organization (Unido), we are sometimes asked whether industrial development is still relevant to a world that many observers have claimed over the past decades to have entered the “post-industrial age.” Our answer is always an emphatic “yes,” shaped both by the evidence of history and current events.

In the wake of the recession and sluggish growth, policymakers around the world are increasingly recognizing the merits of industrialization, both in developing and developed countries.

The European Union, Japan, the United States and a few other countries have given greater prominence to reindustrialization in their respective economic policies in recent years, while both middleincome and least-developed countries have cited industrialization as vital for their future prosperity.

Unido promotes industrial development as the primary vector through which poverty can be eradicated, by enhancing productivity, stimulating economic growth and generating associated increases in incomes and employment. We cooperate with governments and privatesector actors to harness the investments necessary to strengthen the productive and trade capacities of our member-states.

History has shown that industrialization has an immense potential to propel upward social mobility; as a result of the Industrial Revolutions in England and the US in the 19th and 20th centuries, millions of people were lifted out of poverty. In recent times, industrialization has been central to the booming growth enjoyed by East Asian economies, especially that of China, where gross domestic product per capita has risen over 30-fold since 1978.

However, Unido recognizes that, while industrialization has often been the motor for positive economic change, this has sometimes been achieved at the expense of social inequality and environmental degradation. Industrialization must, therefore, be embedded in a socially equitable and environmentally sustainable policy framework if it is to achieve the desired developmental impact.

Three dimensions

AN integrated approach to society’s most urgent challenges must address all three dimensions of sustainable development: economic, social and environmental. At its 15th General Conference in Lima, Peru, last December, Unido’s 172 member-states unanimously adopted the Lima Declaration, giving the organization a mandate to promote inclusive and sustainable industrial development (Isid) as the principal means of realizing their industrial development policy objectives.

The achievement of Isid represents Unido’s vision for an approach that balances the imperatives of economic growth, social cohesion and environmental sustainability.

The world is united in regarding poverty eradication as the overarching objective of development, and Unido’s member-states have placed it at the core of Isid. Industrial development has been shown to be a key driver of processes that make a difference to the world’s poorest citizens.

Research from Unido demonstrates that countries with a larger share of industry in their economies perform better with regard to a wide range of indicators that correspond to social well-being, such as income inequality, educational opportunities, gender equality, health and nutrition. The contribution that Isid could make to youth empowerment through skills development and youth entrepreneurship is now widely recognized.

Similarly, environmental sustainability is also central to Isid. Unido promotes so-called green industry and the use of clean technologies in industrial production; greater resource and energy efficiency; and improved water and waste management. Not

only do these measures reduce harmful emissions and waste, but they also offer a significant potential for increased competitiveness and employment opportunities.

Isid also prioritizes creating shared prosperity. This means that the benefits of growth must be inclusive if they are to improve the living standards of all women and men, young and old alike. Employment opportunities, particularly in the industrial and agro-industrial sectors, must be available to all members of the workforce, thus, building greater prosperity and social cohesion.

As we approach the end of the Millennium Development Goals (MDGs) framework in 2015, the international community has been reflecting on how best to address outstanding challenges. Although the MDGs achieved some remarkable successes—for example, in terms of halving extreme poverty and increasing access to education and sanitation—much still remains to be done in order to achieve “the world we want.”

E

BOLA, as it claims lives in poor countries and threatens those in rich ones, underscores the fundamental evil of the only irrational economic system in the world since feudalism sprang up in Europe. Unlike socialism, which can be expressed in mathematical models—e.g., Joseph Stiglitz’s Whither Socialism?— capitalism can only be described and never understood, let alone predicted. This is because it is only buy and sell. It is not a system; whatever rationality that capitalism possesses consists of the extent of its socialist character and the elements of the command or regulated economy it has adopted, University of Cambridge economist Ha-Joon Chang says. Otherwise, you can’t make useful sense of it, and it is harder to adapt for the public good.

At its best, capitalist economic theory only shows how badly it did in a past crisis, while promising that fewer can still make money in the next one. After one such crisis, two

Nobel winners derived derivatives from bankruptcy; that’s why they called them derivatives, just when we thought there was nothing left for the bankers to steal. Then the

Monday, November 3, 2014 A11

United States Treasury threw hundreds of billions of dollars at them, so the sting of the impact on their faces would be a kind of punishment.

Now another facet of capitalism is showing. Never mind the 5,000 poor dead in Africa; the additional 1,000 who are dying every week; and the 10,000 per month by December.

Never mind the thousands of health workers shunned by communities for coming in contact with the infected, including the brave American nurses locked up by Republicans in the homes to which they returned in the hope of relief. These workers just keep on going, resigned to joining their patients.

A Spanish nurse got Ebola in Madrid while gravely tending two Catholic priests who returned from their mission in Africa. The two priests died, while she’s being treated in an abandoned hospital that was shut down by the government as part of cost-cutting measures that was ordered by the World Bank and the International Monetary Fund (IMF).

In the US two nurses were infected while treating just one patient. The French-founded non-governmental organization Doctors Without Borders observed it is 16 French doctors treating half a million patients. What does that tell you? The US has the worst public-health system in the First World. Even worse are poor countries, where health services are systematically stamped out on orders of the World Bank and IMF in order to save money that will be used to pay back bankers.

The disease will reach us. Are we prepared? Are we prepared to set aside cost-cutting measures? Are we prepared to spend on more measures against the Ebola threat?

Margaret Chan of the World Health Organization warns that we will face state failure all over the world once the disease rages out of control.

In the anarchy, the weak will fall prey to the strong. And in every rich or poor country, the strong are not the rich who are few, but the poor who are legion.

Development issues

THE post-2015 development agenda currently being discussed by the international community aims to address the many development issues that still need to be resolved. The Open Working Group, which was tasked with formulating the Sustainable Development Goals (SDGs) that will be at the core of the post2015 development agenda, has recognized the importance of inclusive and sustainable industrialization by including it as one of the 17 goals it has proposed, clustering it in Goal No. 9 with resilient infrastructure and innovation.

Given the ambitious scope of the post-2015 development agenda and experience gained over MDGs, the focus of international deliberations has now shifted from the determination of the SDGs to addressing the means of implementation.

Recognizing the budgetary constraints imposed by the prolonged period of stagnant growth and recession experienced in many countries, the recent report of the International Committee of Experts on Sustainable Development Financing acknowledged the necessity of mobilizing alternative resources for the implementation of the SDGs, including those of the private sector.

Unido has already worked extensively on securing greater engagement from private industry in international development, and over the past year was honored to have been selected to co-lead the UN System’s consultations on engaging with the private sector. As the organization mandated to promote industrial development, which is quintessentially a private-sector activity, we are wellplaced to partner with and promote private enterprise, and look forward to achieving increased progress in this field in the future.

Industrialization has consistently transformed living standards throughout modern history.

Isid is the next phase in its evolution. The overarching goal of the post-2015 development agenda is to eradicate poverty and improve the quality of life of the world’s poorest citizens.

This is a challenge that Unido is well-placed to meet in partnership with governments, the global development community, business and civil society.

Li Yong is the director general of the United Nations Industrial Development Organization (Unido) and Sri Lankan Ambassador A.L. Abdul Azeez is the president of Unido’s Industrial Development Board.

Bank of Japan’s money can’t match China’s engine William Pesek

BLOOMBERG VIEW

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S Japanese Prime Minister Shinzo Abe looks for new growth engines to reinvigorate Japan, he’s ignoring the most obvious one.

Last Friday Japan’s stock markets zoomed upward on news that the Bank of Japan (BOJ) is ramping up its massive quantitative-easing program, boosting holdings of government bonds to an annual pace of about $725 billion and purchasing riskier assets. Soon afterward it was leaked that Japan’s $1.2-trillion Government Pension Investment Fund would dramatically rebalance its portfolio, reducing holdings of Japanese bonds and raising the share of Japanese and foreign stocks to 25 percent apiece. The one-two punch cheered punters, many of whom had begun to be disillusioned with the pace and results of Abenomics.

Whether last Friday’s moves will be enough to boost inflation, now at its slowest pace in half a year, and revive Japan Inc. is another question.

As analysts and pundits (including me) have grown weary of saying, only bolder structural reforms can put the Japanese economy on a path to truly sustainable growth. And even if one has more faith in Abe’s

so-called third-arrow fixes, the fact remains that he is studiously ignoring the biggest economic engine of all: China.

That’s Stephen Roach’s thesis: “As the main driver of Chinese growth shifts from external to domestic demand, who could benefit more than Japanese exporters?” the former Morgan Stanley economist wrote in an op-ed piece earlier last week.

Yes, growth on the mainland is slowing. But there are signs that the long-awaited rebalancing from investment to consumption is beginning to take place. “China is already Japan’s largest export market, leaving it ideally situated to capture additional market share in the coming surge of Chinese demand for consumer products and services,” Roach added. “Japan cannot afford to squander these opportunities.”

Yet, Abe has done just that. In his 22 months in office, he has alienated the country’s biggest customer by giving free rein to his nationalistic leanings. Nor has he done much to make Japan less dependent on

China by deregulating the economy or pushing forward free-trade agreements, like the Trans-Pacific Partnership. Abe may be the mosttraveled Japanese leader ever—he has visited 49 countries since December 2012—but his government has little to show for all the globetrotting.

An upcoming trip to Beijing for November’s Asia-Pacific Economic Cooperation (Apec) summit presents a perfect opportunity to mend relations. China has been playing coy on Abe’s bid for a tête-à-tête with President Xi Jinping. According to the state-run Xinhua news agency, the onus “is first and last on Abe” to improve relations. In China’s view, Abe must stop “whitewashing Japan’s militarist past” and abstain from visiting Yasukuni, the controversial shrine to Japan’s war dead, including 14 Class-A war criminals. Beijing also wants Abe to admit that there’s a dispute over a set of offshore islands, currently administered by Japan.

China’s position is a bit disingenuous. Xi has proven quite adept at whipping up anti-Japanese sentiment when it suits his needs. China is inciting hostility around Asia with its ever-expanding West Philippine Sea (South China Sea) land grab, and its military buildup is fueling an Asian arms race.

But Abe would be wise to extend a sincere olive branch. He should make a key concession or two so that Japan gets more than a photo op out of the November 10 and 11 Apec summit. Yasukuni is a good

place to start. Last week a politically powerful group representing families of soldiers killed in World War II recommended that the souls of the Class-A war criminals, including Hideki Tojo, be banished from the Tokyo shrine. That way, Abe and future prime ministers can honor the 2.5 million other war dead without enraging China and South Korea. By saying publicly that he supports the families’ request, Abe could begin paving the way for detente in North Asia.

It’s easy to see why Abe’s government wants to boost the stock market. Only if the Japanese feel richer will they start spending again, driving up prices and, perhaps, counteracting the effect of another sales- tax rise scheduled for next year. Friday’s moves, however, are another sugar high with little hope of producing sustainable growth in the long run. While China says the diplomatic onus is on Abe, the risk is that last Friday’s actions take pressure off him to loosen labor markets, encourage greater innovation and prod companies to be more accountable to shareholders and hire more female executives.

It’s a gamble. And even if it works, as Nobel laureate Paul Krugman said in Tokyo last Friday, that doesn’t change the fact that Europe is falling again and United States growth is undershooting its potential. As the West underperforms, the obvious alternative is China. For Japan, the mainland is too good an opportunity to ignore.

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Merchandise trade deficit fell 26.65% to $1.64 billion in H1

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BY Cai U. Ordinario

he country’s merchandise trade deficit declined by 26.65 percent in the first semester of 2014 on the back of the Philippines’s strong export performance in May and June, according to data released by the Philippine Statistics Authority (PSA).

The PSA data showed the country’s balance of trade in goods (BOTG) declined to $1.64 billion in the January-to-June period from the $2.24 billion recorded in the same period last year.

Data also showed the country’s total external trade in goods for the first semester of 2014 reached $61.264 billion, representing an increase of 7 percent from $57.267 billion for the same period in 2013.

“The growth of the external trade was due to the increase of both inward and outward trading of goods,” the PSA said.

The PSA added that the decline in the deficit was partly due to the improvement in the BOT-G in May and June, when the country recorded surpluses of $423 million and $625 million, respectively.

Total imports increased by 5.7 percent to $31.45 billion in 2014

from $29.75 billion in 2013, while total export receipts grew by 8.3 percent to $29.81 billion in 2014 from $27.52 billion in 2013.

Meanwhile, the PSA said the country’s top-10 exports in 2014 contributed $24.24 billion to the export bill, or 81.3 percent of total receipts. It increased by 10.4 percent from $21.95 billion reported in the same period of 2013.

The top 10 imports for the first semester of 2014, on the other hand, accounted for 74.6 percent, or $23.470 billion, of the total imports.

The PSA said the country’s top -10 imports registered a positive growth of 6.6 percent from $22.024 billion during the first semester of 2013 The country’s top-traded commodity group is Electronic Products, including those traded on consignment basis.

Electronic products accounted for 40 percent of exports and 22.3 percent of the country’s total import bill.

Total electronic products exports reached $11.924 billion in 2014, a 4.8-percent growth from $11.378 billion in 2013.

In terms of imports, electronic

products amounted to $7.01 billion in the January-to-June 2014 period, a 1.3-percent decline from $7.1 billion in the same period in 2013.

The country’s top-10 trading partners accounted for 76.6 percent, or $46.95 billion, of the total trade value in the first semester of 2014.

This comprised a total export receipt of $24.92 billion, or 83.6 percent of the total exports, and total import bill of $22.04 billion, or 70.1 percent of the total imports.

The top-3 trading partners of the Philippines in the first semester were Japan (including Okinawa), which accounted for 15 percent; People’s Republic of China, 14.3 percent; and the US (includes Alas-

The government stands to earn roughly $3.2 billion more from the 1,600 megawatts (MW) of power-generation capacity that will be offered to the private sector, the Power Sector Assets and Liabilities Management Corp.

(PSALM) said over the weekend.

PSALM is the agency mandated by Republic Act 9136, or the Electric Power Industry Reform Act of 2001, to handle the sale of the remaining state power assets and financial obligations of the National Power Corp. (Napocor).

Emmanuel Ledesma Jr., PSALM president, said among the power facilities that are up for bidding are the 32-MW Power Barge (PB) 104 in Davao City; the 727-MW CalirayaBotocan-Kalayaan (CBK) hydropower facility; the Agus hydropower plant; the independent power producer administrator (Ippa) contracts for the Unified Leyte (UL) geothermal power plants; the 210-MW Mindanao coal-fired power plant in Misamis Oriental; and the 140-MW Casecnan multipurpose hydroelectric power plant. The agency will also rebid the 850-MW Sucat thermal power plant.

Ledesma said PB 104 will be sold within the year; UL in the first quarter of 2015; Mindanao coal-fired power plant by mid-

2015; Casecnan facility in the third quarter; and CBK in early 2016. For Agus, the PSALM board is eyeing the sale in 2017.

“There’s still roughly around 1,600MWremaining.Soassuming the rule of thumb is applied, then that’s going to be multiplied by $2 million per MW,” Ledesma said.

Only about 20 percent of government-owned power assets have yet to be privatized since PSALM took over Napocor, the PSALM official added.

So far, the biggest power facility sold by PSALM is the 218-MW Angat hydroelectric power plant to Korea Water Resources Corp.

(K-Water) for P19.66 billion.

K-Water took over the facility last Friday, more than four years since it won the bidding in April 2010. The delay was caused by a number of reasons, including a court battle over the legality of PSALM’s conduct of the bidding.

The privatization of the Angat power facility will not affect the water supply from the Angat reservoir, as the Angat Dam remains the property of the Philippine government.

Other power facilities sold since Ledesma was appointed include the 153.1-MW Naga Power Plant to SPC Power Corp. for P1.14 billion, and the Ippa for 40 strips of energy of Unified Leyte Geothermal Power Plants at P4.6629 per kilowatt-hour.

PHL, World Bank ink Cebu BRT loan deal

By David Cagahastian

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he Philippines and the World Bank have signed a loan agreement that will fund the Cebu Bus Rapid Transit (BRT) project, which aims to improve the overall performance of urban passenger transport in Cebu City.

Under the loan agreement, the World Bank will provide funding of $116 million from its International Bank for Reconstruction and Development (IBRD), and $25 million from its Clean Technology Fund.

The Cebu BRT project includes the development of segregated BRT bus-ways from Bulacao to Ayala, with a link to Cebu’s South Road Property. It will also provide for a feeder service between Ayala and Talamban.

Other specifications of the project are the construction of 33 sta-

EMPERADOR NEW OWNER OF WHYTE & MACKAY

ka and Hawaii), 11.5 percent.

Total trade with Japan amounted to $9.21 billion of the total external trade, while total trade with China reached $8.78 billion. Total trade with the US amounted to $7.07 billion.

The country’s primary traded commodities with Japan are woodcraft and furniture, electronic products and transport equipment.

Top-traded commodities with China are electronic products; other mineral products; mineral fuels, lubricants and related materials; and iron and steel.

The top commodities traded with the US are electronic products; articles of apparel and clothing accessories; and feeding stuff for animals.

$3.2B WORTH OF POWER ASSETS UP FOR BIDDING

By Lenie Lectura

www.businessmirror.com.ph

tions that are expected to service 330,000 people per day in 2015, a central transport-control room, an area stop-light control for the whole city of Cebu and 176 buses.

The project is expected to service an average of 433,000 individual trips per day. The Cebu BRT project is projected to save each commuter 25 minutes of travel time and P7.50 in fares.

“Our improved public finances have enabled us to spend more confidently on public investments supporting our rapid growth. As Cebu City is fast becoming one of our prime urban centers, investing in sound infrastructure lays solid groundwork for a more sustainable growth trajectory,” said Finance Secretary Cesar V. Purisima, who signed the agreement on behalf of the Philippine government.

See “BRT loan,” A2

Whyte & Mackay’s famous Dalmore Brilliance Vintage 1926 is the world’s most expensive whiskey bottle that comes with a 1.83-carat diamond stopper from Gassan Diamonds, priced at €250,000 (almost P16 million).

TAN: “We are going to officially launch and sell the existing Whyte & Mackay products, especially The Dalmore, Jura and Whyte & Mackay in the Philippines soon.”

By VG Cabuag

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mperador Inc., the liquor firm of businessman Andrew Tan, said it completed its deal to acquire Whyte & Mackay Group Ltd., becoming the world’s fifthlargest scotch whiskey maker and top brandy seller by brand.

Tan, Emperador’s chairman, said the company will start selling Whyte & Mackay brands in the Philippines, including Dalmore, which, he said, is “a very prestigious addition to our product portfolio.”

“Whiskey is the second-largest selling liquor category in the world.

We look forward to developing a scotch whiskey-drinking culture in the Philippines. We are going to officially launch and sell the existing Whyte & Mackay products, especially The Dalmore, Jura and Whyte & Mackay in the Philippines soon,” Tan said.

Emperador, known for its brandy of the same name, sold some 33 million cases last year, or selling seven out of 10 liquor bottles in Metro Manila.

Emperador, through its United Kingdom unit, bought Whyte & Mackay for an enterprise value of £430 million, or P31 billion.

The agreement for the acquisition was signed on May 9, 2014, but it was only completed recently as it has to hurdle several regulatory approvals, including those from the Reserve Bank of India, the country’s central bank, as the sale will result in significant write-off of loans recoverable by United Spirits Ltd., the previous owner of Whyte & Mackay.

United Spirits had to sell Whyte & Mackay after British firm Diageo Plc., the maker of Johnnie Walker whisky and Smirnoff vodka, bought United for $1.9 billion.

UK’s Office of Fair Trading said Whyte & Mackay’s whiskey brands directly compete with those of Diageo and that could lead to substantial lessening of competition.

United Spirits bought White & Mackay in 2007 for £595 million.

On the other hand, Diageo is Emperador’s partner in the Philippines to distribute the latter’s See “Emperador,” A2