Businessmirror november 4, 2014

27

18

17% More laws passed signed by Obama

Laws and the 114th Congress

A YouGov poll asks Americans for their prediction on what will happen with laws being passed if: If the Democratic Party keeps If the Republican Party controls control of the Senate and the Senate and keeps control of Republicans keep control of the the House: House:

52

38 18

More laws passed signed by Obama

17

12%

Same amount

Fewer

19 No Opinion

Same amount

Fewer

19 No Opinion

World»B3-2

W Democrats slipping in Tuesday Senate contests

Do you think there have been too many, too few, or the right amount of laws passed by Congress and signed into law by President Obama?

Too many Republicans Independents

27

17%

17

12%

Democrats

Too few

23%

Right amount

41%

24

18% 9

36 56

7

11 © 2014 MCT

Source: YouGov

Do you think there have been too many, too few, or the right amount of laws passed by Congress and signed into law by President Obama?

Too many

Too few

23%

Republicans

Right amount

41%

18%

BusinessMirror

24

Independents

9

36

56

7

Democrats

11

© 2014 MCT

Source: YouGov

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

U.N. Media Award 2008

www.businessmirror.com.ph

Life

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ear Lord, we learn to love what we have. We look for the needs that we want.

We smile when we accept what we receive. We share what we can afford to give.

Keep reminding us, Lord that what goes around comes around. and we ever believe, yes we can. amen!

OLDERHOOD INSPIRATION AND LOuIE M. LAcSON Word&Life Publications • teacherlouie1965@yahoo.com

Their moThers’ daughTers

BusinessMirror

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

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Tuesday, November 4, 2014 D1

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❷

A small house can be a great house ❸

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By Rebecca Teagarden | The Seattle Times

About 15 years ago, Burgess and her husband, Henry Shepherd, were searching for a house on the island. Shepherd was raised here. (Also, “beaches are minutes away in three directions.”) Friends told them about the cottage, but it was out of their league.

They bid on a house in Port Madison. But it didn’t feel right. They took the offer back. A year later the cottage was still for sale.

Burgess knew it was the one, her first and, so far, only house. The little place is both an intimate and interesting choice for a woman who is often called upon to transform and personalize far grander homes for others.

“I didn’t anticipate that we’d still be here

CrySTAl Waters

❹

or that the building would still be this size,” she says.

Burgess guesses her home is 1,600 square feet. She is being generous. It’s kitchen to living room, left through the pocket doors to the “master” bedroom (also Burgess’s office).

Daughter Paloma sleeps in the other bedroom off the short hallway. The attic has been conscripted into a bedroom for daughter Ava and office for Shepherd (up a ship’s ladder in the kitchen). One bathroom.

Out back, what was once the garage is now the “Party Palace,” one room that holds a table for 12, a chandelier in the rafters, waiting to be called upon to cast a welcoming glow.

That’s it.

Burgess’s home is like her work, organic and evolutionary. Sometimes, on the job, a client might have to wait a year or more for the right dining-room fixture to appear. But it does. Burgess, a violinist by schooling and an art professional by happenstance (she worked at Linda Farris, was a partner at the Winston-Wachter gallery), calls what she

ichelle Burgess believes that if you look and if you listen, a house will tell you what to do.

does “3D composing.”

“I’ve tweaked it over the years to a lighter palette. Light, that’s always my deal. There are windows everywhere, and everywhere you look it’s green.

“It’s just a nice scale of living. I like it when things don’t get overthought.”

To fit everybody into the kitchen, Burgess created a banquette, and Shepherd, a builder (and art director), designed a table.

“I found a beautiful Schumacher fabric for the banquette that even with a discount was $175 a yard,” Burgess says. “I needed seven yards. But I just couldn’t pull the trigger on that.” And then the right thing turned up. “I found this heavy-duty fabric at Ikea, and it transformed the whole banquette; $8 a yard! I loved it so much I bought more.”

Of the entire home and her solutions for making it work she says, “It is like living in a boat, actually. You are given a set of things to work with and you have to edit, edit, edit.

“But there’s something about this place, I can’t tell you.”

❶ Henry SHepHerd and Michelle Burgess moved in when

daughter Ava was 1 and paloma was expected: “When I walked into the kitchen I thought, ‘How am I gonna fit two high chairs in with this woodstove in here?’” Out went the woodstove. The ladder leads to Shepherd’s office, Ava’s bedroom.

➋ THe master bedroom (also her office) expresses Burgess’s design approach, the “trust-me” instinctual method. “I think of myself as an architectural anthropologist (she has a graduate degree in music anthropology). I’m always trying to compose this environment that not only functions but feeds the people’s experiences in it.”

➌ “IT’S a humble home,” says interior designer Michelle

Burgess of her family’s cottage. “people ask me if I get jealous of my clients. I really don’t. Just like my clients I have a kitchen and a bedroom and a bathroom. Except sometimes mine would fit in their garage.” The sofa is from an island antiques store. The coffee table, Thomas O’Brien for Target.

❹ MOST people would look at the little place behind the

house and see a garage. Burgess sees the “party palace.” By day it is her work space for design projects. When guests are expected, she lowers the candlelit chandelier and sets a fine table. PHOTOS by bENJAMIN bENScHNEIDER/SEATTLE TIMES/McT

Lighting sculptures for everyday living

delpHInIuM

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rt without restraints, innovative, unique—these aptly describe the lighting sculptures of Dutch design label Brand van Egmond. You can now adorn your homes with these handcrafted art translated into light through Steltz, the Gallery, at the sixth floor, East Wing, Shangri-La Plaza. renowned for selling high-end lighting products for the last 26 years, Steltz International (www.steltzinternational. com) started an exclusive partnership with Brand van Egmond this year. In line with its launch and as an introductory treat, it offers special prices on the products.

An international innovator in exclusive lighting and interior objects, Brand van Egmond was founded in 1989 by husband-and-wife team William Brand, an architect, and Annet van Egmond, a sculptor. Since then, the brand has become a trendsetter, illuminating the homes of the world’s aristocracy and glitterati, from royals to rappers.

It has also partnered with prominent establishments, such as Chopard, Louis Vuitton, Four Seasons Hotels, Hilton Hotels, La Cornue and Neuhaus. the versatility of their designs can be applied to both classic and modern interiors. Aside from their regular collection, Brand van Egmond also produces haute couture objects for clients’ specific requests and preferences.

Its first famous lighting sculpture was the “Hollywood Chandelier” that became an instant icon. In 2004 it shed its light over the 76th Academy Awards presentation in the US. In their native country, Brand van Egmond’s “Night Watch” chandeliers were selected by the Dutch government to decorate the VIP Lounge of the Dutch pavilion at the World Expo 2008 in Zaragoza. In 2010 the couple even launched their first book Lighting Sculptures, which is carried by all major bookstores worldwide, including the Museum of Modern Art bookstore in New York.

life

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CUBAN CRISIS The World BusinessMirror

news@businessmirror.com.ph

Tuesday, November 4, 2014 B3-3

Tim Cook fills role-model void for LGBT employees

PEOPLE in the city of Bayamo in the eastern Cuban province of Granma use horse-drawn carts as public transportation. JORGE LUIS BAÑOS/IPS

APPLE chief executive and Alabama native Tim Cook waves to the crowd during an Alabama Academy of Honor ceremony at the state Capitol on October 27 in Montgomery, Alabama. Cook and seven others, including University of Alabama football Coach Nick Saban were inducted into the Alabama Academy of Honor. AP/BRYNN ANDERSON

B C H, J K  C G

“Bible Belt,” he has dealt with many incidents of bigotry.

‘Significant impact’

Bloomberg

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S CEO of Apple Inc., the world’s most valuable technology company, Tim Cook has license to say what he thinks, including announcing that he’s “proud to be gay” in Bloomberg Businessweek last Thursday.

Th at pronouncement, almost universally lauded, is a lot riskier for gay executives still trying to get to the corner office.

“He has helped push the rock a long distance uphill toward more openness and opportunity, but it isn’t going to be instant paradise in the C suite for gay people,” said Linda Hirshman, author of Victory, the Triumphant Gay Revolution.

Cook is the first CEO of an S&P 500 company to come out in public. It’s a watershed moment for the gay community, which still lacks protections against workplace discrimination in 29 states in the US. Yet while a growing number of business leaders are now openly gay—including Burberry Group Plc. CEO Christopher Bailey, Anthony Watson, Nike Inc.’s chief information officer, and Robert Greenblatt, chairman at NBC Entertainment—others worry that coming out still carries a stigma.

“Even in today’s more open climate, gays who come out risk derailing their advance, especially to the CEO spot,” said Pat Cook, president of Cook & Co., a boutique search firm in Bronxville, New York.

Gay employees instead are often expected to stay discreet with customers or clients.

Oil industry

“IT’S much more accepted within company walls, but you’re not supposed to flaunt this to outsiders,” said Peter Crist, chairman of recruiting firm Crist/Kolder Associates in Downers Grove, Illinois.

When boards are choosing between two candidates with equal credentials they almost always choose the person who fits in the most, according to executive recruiters.

John Browne, the former CEO of BP Plc., was forced to resign in 2007, after being outed by a British tabloid. He has since written a book, The Glass Closet: Why Coming Out is Good Business, about being a closeted gay in the oil industry.

During his tenure, BP had a joint venture in Russia, where President Vladimir Putin has approved laws against homosexuality.

“To a headhunter, I would have been seen as ‘controversial,’ too hot to handle,” he wrote.

Bob Page, founder of Replacements Ltd. in McLeansville, North Carolina, a retail company selling antiques, said in an interview that as an openly gay entrepreneur in the

ONE local told him, “I used to ride by your building and my dad would say, ‘that’s where the queers are,’” Page said. The father of twin 15-year-old boys, Page was also once told that having a picture of his children on his office wall was “flaunting your sexuality,” he said.

“I think Tim Cook coming out can have a significant impact,” said Page. “Others may hear this and think, ‘here’s someone who’s very successful and admired for their business acumen who feels safe to come out’—and that might encourage another kid who’s struggling” with his sexual identity.

Watson, Nike’s 37-year-old chief information officer who came out when he was a student at Dublin’s Trinity College, didn’t have a gay role model to look up to while growing up, he said in an interview.

“There were never any role models, just some campy or effeminate people on TV who would get a laugh,” he said. Tim Cook’s coming out is “game changing. It’s fundamentally shifting perspectives on LGBT [lesbian gay bisexual and transgender] leaders.”

LGBT employees

MORE than 40 percent of LGBT employees are still in the closet at work in the US, according to Todd Sears, founder of Out Leadership, an advocacy group for LGBT employees in business and a former Wall Street banker who worked at Credit Suisse Group AG. In Asia 90 percent of LGBT workers are closeted, Sears said.

Still, times have changed dramatically, said George Slowik, 59, a longtime publishing industry veteran. He was asked to step aside as publisher of Publishers Weekly in 1988 after being featured in the first issue of Genre Magazine, which was aimed at gay men, he said. He promptly joined Out Magazine.

“For people growing up and thinking of their options who may be in a less supportive environment to know they can achieve whatever they want, it’s as significant in some ways as an AfricanAmerican president,” Slowik said in an interview.

Cook’s coming out sends a message to the 78 countries around the world, including Uganda and Nigeria, where being gay is still illegal, according to Sears. Apple sells iPhones in all these countries, including Singapore, which earlier this week upheld its anti-homosexuality law.

“The next time Cook comes to Singapore, are they going to arrest him?” asked Sears. “Tim has put a face to this, and in an indirect way, put his product there. It’s going to be very hard to be a homophobe holding an iPhone.”

Crisis in Cuba fuels use of horse-drawn carriages

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B I G | Inter Press Service

AVANA—Up and down the streets of towns and cities in Cuba go horse-drawn carriages with black leather tops and large back wheels, alongside more simple carts, operating as public transportation.

This ancient means of transportation can be seen throughout this country, in urban, suburban and rural areas, where motor vehicles are expensive and there are not enough cars and buses. And in the most remote parts of the country carts are virtually the only way to get around.

As he has done every morning for the past 11 years, Bienvenido García waits for customers at the piquera or stop in the resort town of Varadero, 121 kilometers (km) east of Havana, to take them in his carriage along a fixed route down the main street of this tourist town.

Depending on where, what kind of cart, and the distance to be traveled, the cost ranges from P2 to P10 pesos per passenger (10 to 50 cents of a dollar). But a jaunt in one of the comfortable fancy traditional carriages is much more costly, because they cater exclusively to foreign tourists.

“I used to work in the guaguas [public buses]. But with the crisis, there weren’t any spare parts or fuel. So I started driving a carriage,” García, a cuentapropista, or self-employed worker, told Inter Press Service (IPS).

Like most sectors of the economy, transportation collapsed in 1991 when the East European socialist bloc, Cuba’s main trade and aid partner, fell apart. Observers say measures aimed at recuperating transport have been slow and inefficient.

Cubans were forced to find ways

of getting around that did not depend on fossil fuels—such as horses, carts, bicycles and three-wheeled pedal-powered bicitaxis.

In response, as part of the socialist government’s opening up to small private businesses and cuentapropistas, new trades were added by the authorities: cochero or carriage driver, and bicitaxista and mototaxista, who drive bicitaxis and motorcycle taxis.

In 2010 the government declared that private enterprise was key to easing the chronic public transportation shortage. Most of the country’s 473,000 cuentapropistas work in the areas of food and restaurants, housing rental or transportation.

There are no specific statistics on the number of cocheros, who are mainly men. But they abound in cities like Bayamo, called “the city of the carriages,” and Guantánamo, in the east; Cárdenas and Varadero in the west; and Santa Clara, Ciego de Ávila and Santi Spíritus in central Cuba.

Nor are there clear figures on how many motor vehicles are circulating today in this Caribbean island nation of 11.2 million people. But in July 2013 the local media reported that there were only 7,840 public transport buses—just half of the 15,800 buses serving the population in the 1980s.

And due to the lack of new vehicles, classic US 1950s cars or Soviet-made Ladas are still plying the streets of Cuba’s cities.

“You can just get by on this job as a cochero because the taxes are high,” said García, whose cart carries up to eight people, “the weight that the horse can pull without it being abusive.”

“I keep the culero [manure bag] in good shape, to avoid getting the streets dirty, and I taught my horse to make the stops, so we don’t distort traffic on the road,” he said.

But not all of the streets in towns with horse-drawn carts and carriages are as clean as Varadero’s.

“To get something done, people had to complain to the authorities about horses on the streets. There was manure everywhere,” Aliuska Labrada, a young woman who lives in the town of Cayo Ramona, 200 km southeast of Havana, told IPS. The resurgence of this old means of transportation brought with it problems related to hygiene, the public image of rural and urban areas, traffic safety, and the welfare of draft animals.

Rules established by local authorities included carriage stands that must be kept clean by the drivers, the following of traditional ways of handling carts, and urban areas off-limits to horse-drawn vehicles. And for the drivers to obtain a license, their horses must undergo veterinary exams.

“It’s a more natural means of transportation…but at what price?” wrote a cybernaut who identified herself as Marina in an online IPS forum.

“The horses damage the paved streets and can cause accidents because the drivers don’t have total control over their animals,” she said.

“There’s also the question of mistreatment of the animals. Some people exploit them to exhaustion, just to make money from them.”

That is a sensitive issue that animal-rights organizations have been complaining about for years.

Since 1988, the Scientific Veterinary Council and the Cuban Association for the Protection of Animals and Plants have been presenting a proposed draft law on animal protection

to the Agriculture Ministry, without success.

The local scientific community is pressing for the development of green-friendly, sustainable transportation in Cuba.

In an e-mail response to IPS, engineer Lizet Rodríguez identified several short- and long-term alternatives, although she said the shift to a cleaner transportation system would require an in-depth feasibility study.

“What are needed first of all are solutions that would strengthen and reorient the public-transportation system, improve road infrastructure and reduce vehicle emissions, which would mean upgrading the vehicle fleet,” she said.

Rodríguez, a researcher at the Marta Abreu Central University in the city of Villa Clara, 268 km east of Havana, recommended “improving communications over the Internet, to make it possible to carry out a large number of operations online that today require that people physically go somewhere.”

Few people in Cuba have online connection in their homes, most of them dial-up and some wireless.

In 2013, there were 2,923,000 users, including both Internet and intranet accounts, which offer access to a limited number of local and international web sites.

The engineer said, “The use of the bicycle [as long as there are bike paths] would be feasible above all in small and medium-sized towns, and the use of cleaner fuels like natural gas or socalled biofuels— methanol and ethanol, obtained from biomass residue— could be encouraged.”

Last year, renewable energy sources made up 22.4 percent of the country’s primary energy production, according to the latest report by the national statistic institute, Onei.

Up to now, renewable-energy sources have only been used in a handful of industries, mainly for generating electricity, pumping and heating water, and cooking food.

VIRGIN DISASTER IS A REMINDER OF DEADLY EXPLOSION B B M The Associated Press

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OJAVE, California—The loss of an experimental spaceship that broke up over the Mojave Desert, killing one pilot and seriously injuring another, has renewed criticism of the way the craft’s designer and Virgin Galactic handled a deadly explosion seven years ago.

Space enthusiasts watching Virgin Galactic’s race to send tourists on suborbital flights have complained for years about

a 2007 explosion that killed three people on the ground and critically injured three others during a ground test in the development of a rocket engine for the same vehicle that crashed last Friday.

“Now we’ve got another person killed, another person seriously injured. So we’ve got a lot that has hurt the industry,” said Geoff Daly, an engineer who has filed complaints with several federal agencies over the use of nitrous oxide to power the ship’s engine.

SpaceShipTwo tore apart last Friday after the craft detached from the underside

of its jet-powered mothership and fired its rocket engine for a test flight.

Authorities have not given any indication what caused the accident. National Transportation Safety Board (NTSB) investigators were on the scene on Sunday. The agency could take up to a year to issue a final report. The accident was the second fiery setback for commercial space travel in less than a week.

Last Tuesday an unmanned commercial supply rocket bound for the International Space Station exploded moments after liftoff in Virginia.

Daly was co-author of a critical report on the 2007 incident at Scaled Composites, the Northrop Grumman-owned designer of SpaceShipTwo. Among the report’s complaints was that the public was never given a full accounting of what went happened.

“Something is wrong here,” Daly said on Sunday. “We offered to talk, give our experience. It was either ignored or totally dismissed.” Virgin Galactic CEO George Whitesides issued a statement on Sunday.

“Now is not the time for speculation,” he said. AP

WORLD

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ON SECTIONS Design&Space BusinessMirror

D4 Tuesday, November 4, 2014

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Urban Monologues V2.0

Nikki Boncan-Buensalido

ARTWORK BY NIKKI BONCAN-BUENSALIDO

Armless chairs help you squeeze more seating into your décor

By Vicki Payne

The Charlotte Observer

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armless chairs by just replacing one chair with arms.

Armless chairs are often ideal for small rooms, such as a secondary bedroom. their size and scale can vary from very petite to comfortable and plush. they are also great options for dining rooms. it is easier to pack a dining table with additional chairs if you don’t have to contend with chair arms. think of your guests. they will find it much easier to slip out of an armless chair at a crowded table. consider investing in an armless chair that you can move from room to room, which will add to its versatility. it may start off in your living room but end up in a guest room. the Middleton chair from Anna French, upholstered in oatmeal linen fabric from thibaut, has wonderful tailored details including self-welting and diamond tuck upholstery. Neutral upholstery is always timeless.

Armless office chairs provide many benefits. A smaller width can be a great space-saver. that’s important as many of us transform utility rooms and small guest rooms into home offices where every inch of space counts.

An armless chair may fit easier under the desk and have narrow enough proportions that you can stow the chair out of the way when it’s not in use. the smaller your office, the more important this benefit becomes.

Armless chairs are also easier on the budget. Without adding arms, manufacturers can produce these designs at a lower cost.

Furniture stores are filled with wonderful armless chair options.

Don’t be afraid to experiment with bold colors and prints when purchasing an armless chair. these designs let you move a little out of your comfort zone. When it comes to color, it’s a good idea to experiment with smaller furniture rather than a sofa or pair of overstuffed lounge chairs. regardless of the color or the fabric you choose, you’re sure to find many benefits in having armless chairs in your décor. they can easily become the best seats in the house.

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ThE ribbon-cutting of Amaia Scapes in San Pablo, Laguna, during its launch.

Nikko Reyes (from left), project development manager for South Luzon projects; Chay Viray, project sales officer; Donna Ramirez, sales regional director; and Milfa Pagsisihan, broker head.

design&space swimming pool, basketball court and jogging path.

On top of everything, Amaia scapes san pablo puts everyone’s safety first before anything else. it is designed with guarded entrance and exits, a perimeter fence and tree-lined spine road.

Amaia scapes san pablo is a quality residential project bearing the stamp of Makati Development corp.’s Buildplus track record and experience, and is maintained by Ayala property Management corp.

D4

a different kind of heat

Sports BusinessMirror

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| Tuesday, November 4, 2014 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

CHRIS BOSH works toward the basket against Toronto’s Tyler Hansbrough. AP

ERIK SPOELSTRA: It’s the power of working together that will make us more successful. AP

A DIFFERENT KIND OF HEAT Defense has taken a backseat because the way Miami has played on offense and the Heat once again put on a scoring show in Sunday’s 107-102 victory against the Toronto Raptors.

By Shandel Richardson

Sun Sentinel

IAMI—A strong emphasis has always been placed on defense the past few seasons.

The Miami Heat have often called it their “identity.” Defense first. Offense second.

Yet, this season it’s been different. Very different.

Defense has taken a backseat because the way they have played on offense. The Heat once again put on a scoring show in Sunday’s 107-102 victory against the Toronto Raptors at American Airlines Arena.

“We’re three games into this, so it could quickly go the other way if guys start to feel comfortable and try to do it on their own, and that’s not the makeup of this group,” Heat Coach Erik Spoelstra said. “That’s not at all a referendum on our personnel. It’s the power of working together that will make us more successful.”

The Heat have now topped the 100-point mark in every game, improving to 3-0. They are the only remaining undefeated team in the Eastern Conference after handing the Raptors their first loss. It was the second straight game they scored at least 60 points in the first half.

Guard Dwyane Wade led the way with 19 points, 11 rebounds and seven assists, the closest he had come of recording a triple-double in nearly four years. Wade even hit a rare threepointer to put the Heat ahead by 16 with four minutes and 53 seconds remaining in the third quarter.

“I took the shots that were there,” Wade said. “I was able to hit as many shots to start the game as I did all [on Saturday against Philadelphia].”

The performance answered any questions about Wade’s playing status this season. He looked plenty healthy in the second

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Wozniacki N finishes NY run

CAROLINE WOZNIACKI is thrilled by her accomplishment outside of the tennis court. AP

game of a back-to-back. Last year Wade rarely played on consecutive nights because of his knees, missing 28 games.

Before the game, he made it clear he was growing bothered by the constant concerns of his health. He’s stated several times he will approach these stretches on a game-by-game basis. The plan, though, is to play in as many games possible.

“Just keep playing,” Wade said. “Don’t even think about it....

We’ve got a lot of games coming up. You knock on wood for your health. As you see around the league and in sports, it’s a lot of major injuries going on. You knock on wood to be able to go out there and just play.”

Center Chris Bosh continued his impressive start to the season. He finished with 21 points and 11 rebounds—his second double-double of the season—in his third game as the primary scoring option. The Heat led by double-figures most of the second half until offense started flowing less smoothly.

The open looks weren’t as frequent and the Heat got careless with the ball, allowing the Raptors to close within 93-84 on a layup by James Johnson.

“We got a little stagnant in the third quarter,” Bosh said. “We had a chance to put them away, and we let them back in the game.... Hopefully, we can learn from our mistakes. What’s most important is we got the win, and we got a lot of contributions.”

A three-pointer by DeMar DeRozan, who led the Raptors with a season-high 30 points, made it 98-83 with 5:18 remaining. The Raptors had a chance to pull even closer, but Luol Deng (18 points) blocked DeRozan on the following possession.

The Heat then pushed the lead back to eight on a threepointer by Shawne Williams.

EW YORK—Caroline Wozniacki was thrilled with her first marathon.

The tennis star ran the 26.2-mile course in just under three hours and 27 minutes—a few minutes ahead of her desired time. She originally had hoped to come in under four hours and quickly adjusted her goal to 3:30 during the race. So when she crossed the line and saw her time she was ecstatic.

“The crowd was amazing. It was incredible.

It was such an incredible experience,” the 24-yearold former No. 1-ranked player said. “I’m so happy to have done this. I’m so proud. Now I have this medal. I can say that I’ve done the New York City Marathon. I’ve even done it at a cool time. So I’m really, really happy.”

She was met at the finish line by her friend and tennis rival Serena Williams and the pair hugged.

Wozniacki was somewhat amazed

that she had done so well since she admitted that she didn’t really prepare, as well as she could have, for the race. Her longest training run was 13 miles.

“I think I’ve done everything you’re not supposed to do before a marathon,” Wozniacki said laughing. “I had a Halloween party three days ago and came back at like 4 in the morning. Two days ago I chilled a little bit, but I’ve been really busy.”

She also said she went to the New York Rangers game on Saturday night, foregoing a traditional pasta dinner.

Wozniakci was also busy raising money for charity. Her marathon raised over $81,000 for Team for Kids, which helps fund marathon organizer New York Road Runners’ youth programs.

She said that Williams made a big contribution to the charity.

Wozniacki left open the chance to run another marathon—just don’t expect it any time soon.

“Right now I don’t think I’m going to do one for a few years, but probably at some point I’m going to do another one. Right now I’m just tired,” she said.

“I’m exhausted. If you ask me right now, then I’d say no, but I’m sure that I’m going to look back on this experience and say that this was awesome and want to do it again.” AP

MELO POWERS KNICKS

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EW YORK—On a night when he joined the National Basketball Association’s 20,000-point club, Carmelo Anthony scored 28 points, including the go-ahead basket with 1:23 remaining, as the New York Knicks narrowly defeated the Charlotte Hornets, 96-93.

Al Jefferson had 21 points, and Gary Neal added 17 points in a reserve role for the Hornets (1-2), who lost their second straight.

Charlotte’s guard Michael Kidd-Gilchrist fell awkwardly late in the first quarter and didn’t return to the game.

Amar’e Stoudemire had 17 points for the Knicks (2-1), who won their second straight.

Iman Shumpert added 15 points.

In Los Angeles, DeMarcus Cousins had 34 points and 17 rebounds, and Rudy Gay added 25 points as the Sacramento Kings handed the poor-shooting Los Angeles Clippers their first loss, 98-92.

The Kings (2-1) rallied from a 10-point deficit in the third quarter and outscored the Clippers, 28-18, in the fourth. They took the lead for good on a lay-up by Gay with just under six minutes to play.

Blake Griffin and Spencer Hawes both scored 17 points to lead five Clippers in double figures. Chris Paul had 16 points and 11 assists; JJ Redick had 12 points; and Jordan Farmar 10.

Sacramento’s Darren Collison scored 14 points in his first game against his former team.

The Golden State Warriors beat the Portland Trail Blazers, 95-90, after Klay Thompson scored 29 points, including a go-ahead jump shot with 8.7 seconds left.

The victory gives the Warriors three straight wins to open the season—their best start since 1994-95 when they opened 5-0.

LaMarcus Aldridge had 26 points and 13 rebounds to lead the Blazers, who dropped to 1-2 to start the season.

After wrestling for the lead throughout the fourth quarter, Aldridge’s lay-up and a fadeaway jumper with 2:01 left gave Portland a narrow 90-88 lead.

Andre Iguodala missed the second of a pair of free throws for Golden State with 26.3 seconds to go to keep the Blazers in front. But Thompson nailed the running jumper to give the Warriors a 91-90 lead.

Steph Curry made free throws the rest of the way for the final margin.

Curry finished with 21 points for the Warriors. AP

sports

ANG WANTS MORE STAKE IN ENERGY INDUSTRY

By Catherine N. Pillas

he Philippines has a huge potential to become a major player in the global aerospace industry, provided the government will put in place the necessary support mechanisms and incentives that include a longer incometax holiday (ITH) period.

D

John Lee, president of the Aerospace Industries Association of the Philippines (AIAP), said the industry’s revenues from manufacturing of parts and components, alone, may already exceed $2.5 billion by 2022.

This is if the government will put in place policy reforms that will entice more investors to set up manufacturing operations in the Philippines and integrate the industry’s supply chain.

“Just for manufacturing only, with the interventions and programs we are trying to implement, we can have $2.5 billion or higher by 2022,” Lee said.

By Bianca Cuaresma

Imagine no more a picturesque home in the suburbs picturesque and affordable dream home seems far from your grasp. But, with Amaia, the economic housing arm of Ayala Land, you can turn that dream into a reality.

Keeping its promise to provide better living for more Filipinos, Amaia Land (www. amaialand.com) recently launched another affordable, yet quality, development in san pablo city, Laguna, with Amaia scapes san pablo. the launching of this third Amaia project in Laguna was attended by Donna ramirez, sales regional director; Milfa pagsisihan, broker head; Nikko reyes, project development manager for south Luzon; and Willy del rio from general services office of san pablo city.

Amaia scapes san pablo is a horizontal development in Barangay san Lucas 2, san pablo city, Laguna—a site that gives homeowners a scenic environment. it occupies 4.3 hectares of land with 313 residential units for its first sector. Buyers will have the freedom to choose from three house models: twin pod, Bungalow pod and Multi pod.

What makes this project suitable for new and growing families is its close proximity to commercial and business establishments, such as puregold and san pablo Market, saving you time and money. it is also ideal to raise your children here because educational institutions are in the area, including Laguna college, san pablo college and Laguna state polytechnic university, among others.

Getting your dream home at Amaia is also pocket-friendly since it offers different payment options, such as cash payment, deferred, pag-iBiG, bank and in-house financing. staying true to its mission of giving an affordable and balanced lifestyle, Amaia scapes san pablo prioritizes every family’s needs and happiness by providing a green patio for a fresher and greener environment. Also, homeowners don’t have to go far for recreational activities because there is a village patio equipped with a pavilion,

P25.00 nationwide | 7 sections 32 pages | 7 days a week

BSP TO CONTINUE INTERVENTION TO CUSHION PESO FALL

www.businessmirror.com.ph

have always had a fascination with sections. People on different floors do things simultaneously without realizing their parallel existence.

rMLess upholstered chairs are one of the most versatile occasional chairs you can buy. Often referred to as “slipper chairs,” they can easily slip into any room’s décor. perhaps that’s how they got their name. they provide a backrest and comfortable seating but don’t take up visual space or limit access as traditional chairs with armrest often do. chairs designed without arms allow seating access from three directions. the temptation for guests to use the arms as a spot to balance a beverage glass also is removed with this design. if your rooms seem crowded but you need extra seating, try replacing a bulky armchair. You may be amazed by how much more visual space a sleek armless chair can add. Many times, you can open up enough space for a pair of

Tuesday, November 4, 2014 Vol. 10 No. 27

See “PHL aerospace,” A5

On sections

In architecture, sections are equally as important as elevations, and, for concept-driven projects, sections are referenced even more. Sections depict some of the most intricate details that explain how to construct a structure. It is interesting to see how these drawings are detailed on paper and how the user’s lifestyle and habits change according to how these sections are designed.

I was at a friend’s condo recently and found myself observing the habits of these vertical residential dwellers. As the sun set and dusk turned into night, I observed how the building came to life as lights were turned on. It was enchanting to witness a static structure turn into a living organism, as if revealing its internal organisms. Some units turned on their lights; others, their television sets, or were in the kitchen preparing dinner, or in the living room entertaining friends or having family time together. It was just alluring to see how different people adapt and change their lifestyles based on how developers and their architects design these urban spaces. Condo units are identically laid-out, save for a few changes in configuration, such as the number of bedrooms, but, as I sat there that evening and watched how each space was used and how each was decorated differently from the other, it became readily apparent how creative people can be—sometimes, even without them realizing it. They are able to customize the space according to their lifestyle. They are able to work around set conditions and adjust to the parameters dictated by the units themselves.

The same is true with the office spaces that I routinely pass by on my way to the office or a meeting. The only difference is the usage and the function of the buildings. In office spaces, instead of couches, TV screens, kitchens and bedrooms, desks piled with paperwork, conference rooms and rooms brain-storming fill each window. It is fascinating to see how even the lighting preferences differ among people. Some use warm white, while others prefer daylight. They have different minds of their own.

As we go about our busy days, it can be rewarding to look at things in different perspectives and different situations. Sometimes, the insights you gain from these musings become your daily doses of wisdom. Looking at different perspectives make us realize what life is all about. There are always insights that we can extract from these experiences—we just have to be sensitive enough to take in and process these to make us better creative individuals, perhaps even better people. These are instances, thoughts and perspectives from which we can draw inspiration as we continually study the habits and lifestyles of people that we, as designers, need to take into consideration when it comes to designing for communities that work.

n

PHL aerospace prospects bright

A SMALL HOUSE CAN BE A GREAT HOUSE Yes we can

A broader look at today’s business

AEROSPACE INDUSTRY SEEKS LONGER I.T.H. PERIOD TO ATTRACT MORE PLAYERS

INSIDE

This is the story of what the interior designer/artist did to hers.

There are pictures of family and “things I found.” Antiques and bits from relatives. Art from those she likes and admires. Burgess is not above Ikea nor beneath fine textiles.

The latest item to settle in is a love seat that belonged to a friend. “Every time I had a dinner party I borrowed it from her. Last year at Thanksgiving she brought it and said, ‘Here, this is yours.’”

It all comes back to family and friends at the place she calls Taylor Cottage, cheery cherry red and tucked into the woods of Bainbridge Island, Washington.

ASHINGTON—Increasingly confident Republicans claimed new momentum on Sunday, just two days before Americans vote in a national election, assailing President Barack Obama in a final weekend push to motivate voters to give them a Senate majority. Democrats deployed their biggest stars to boost turnout in an effort to minimize expected losses.

Obama started his presidency with Democrats controlling both houses of Congress, but in 2010, midway through his first term, his party lost the House of Representatives in a wave of very conservative Republican tea-party victories and backlash against the president’s health-care overhaul, widely called “Obamacare”.

c1

T

he Bangko Sentral ng Pilipinas (BSP) vowed on Monday to maintain a presence in the foreign-exchange market, as the peso weakened to as low as 45 per dollar at one point during trading.

In a statement released late Monday, BSP Governor Amando M. Tetangco Jr. said the day’s fluctuations were on account of “two-way flows,” when foreign currency flowed inward in the form of investments or loan proceeds, but flowed out, as well, when these were also repatriated.

Data from the Philippine Dealings System Holdings Corp. (PDS) showed the peso closing at 44.9 per dollar on Monday’s $411.9-million trades. This was 2 centavosweakerthanthepreviousday’scloseof44.88 per dollar.

The local currency started the day at 44.96, and traded to as weak as 45 per dollar and to as strong as 44.89 at one point.

“Initially, the peso’s weakness was in line with the US dollar strength, which was still in reaction to the Bank of Japan’s move last Friday. Some corporate dollar receipts and equity-related inflows Continued on A8

PESO exchange rates n US 44.8810 n japan 0.3995

ayala christmas streetlights The ceremonial switching-on of the Ayala Christmas Streetlights, an annual spectacle in the Makati Central Business District, was held on Monday night, with (from left) Ayala Land Inc. President and CEO Bernard Vincent Dy, Ayala Corp. Chairman Jaime Zobel de Ayala, Rep. Monique Lagdameo of the First District of Makati City, Patricia Zobel de Ayala, Ayala Land Inc. Vice President Anna Ma. Margarita Dy and Makati Commercial Estate Association President Dave Balangue leading the rites. ALYSA SALEN

By Lenie Lectura

iversified conglomerate San Miguel Corp. (SMC) is aggressively expanding its presence in the energy industry amid the problems the country faces, particularly the power-supply deficiency anticipated next year.

At the listing of Petron Corp.’s 10 million preferred shares on Monday, SMC President Ramon S. Ang divulged his plans for the oil and power sectors.

For oil, Ang said Petron, the country’s leading oil-refining and -marketing company, is keen on expanding further overseas, similar to what it did in 2012, when it acquired ExxonMobil’s downstream business in Malaysia.

“We are looking at a possible overseas acquisition but we are being careful,” Ang said in Filipino.

The businessman stressed that he does not want Petron to be involved in any environmental issue that could affect the company’s business.

“Usually, there are many environmental issues in running an oil refinery or tank farm, such as leaks. If this happens, the cost for cleanup operations is expensive,” Ang explained.

Ang did not elaborate when asked for details on its planned acquisition, saying it’s better for Petron to plan its moves carefully and thoroughly.

Petron’s financial performance is improving. In the first half of the year, it posted P3 billion in net income, higher than the P1.1 billion posted in the same period last year.

Continued on A8

MVP eyes JV with PNCC for connector road

By Lorenz S. Marasigan

PANGILINAN: “The joint venture is a much easier process.

We officially confirm that our inclination is to implement the project under a joint venture, if possible.“

T

he government has relaxed its position on the implementation of the P18-billion connector -road venture, prompting Metro Pacific Investments Corp. to express its preference to undertake the project under its existing North Luzon Expressway (Nlex) franchise.

Chairman Manuel V. Pangilinan said his company prefers to implement the multibillion-peso road-linkage project under a joint venture (JV) with state-run Philippine National Construction Corp. (PNCC).

“The joint venture is a much easier process.

We officially confirm that our inclination is to implement the project under a joint venture, if possible,” he said.

Public Works Secretary Rogelio L. Singson earlier said President Aquino had ordered his office to sort out the legal aspect of the controversial proposal, whether it is best to implement the project on a JV or it follows the original proposal under the build-operate-transfer law.

“Both are possible, both are legally possible,” the Cabinet official said in a recent interview.

Continued on A8

n UK 71.8635 n HK 5.7872 n CHINA 7.3413 n singapore 34.9568 n australia 39.5497 n EU 56.2583 n SAUDI arabia 11.9635 Source: BSP (3 November 2014)

The Nation BusinessMirror

news@businessmirror.com.ph

Editor: Dionisio L. Pelayo • Tuesday, November 4, 2014 A3

GMA asks Sandiganbayan for 9-day furlough

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By Jovee Marie N. dela Cruz

In a three-page ex parte motion for leave, Arroyo asked the court to allow her to visit the wake of Jorge Alonzo “Jugo” Arroyo Bernas, the son of her only daughter, Luli Arroyo-Bernas.

“Accused Arroyo respectfully prays that the Honorable Court immediately issue an order placing her under house arrest for nine days from November 3 to 12 at her residence in La Vista in Quezon City [and] allowing her to attend daily the wake of her grandson at North Forbes in

ORMER President Gloria Macapagal-Arroyo asked the Sandiganbayan on Monday for a nine-day furlough to enable her to attend the wake of her 13-month-old grandson who died on Sunday of a congenital heart disease.

Makati,” the motion said.

The former president also asked the Sandiganbayan that she be allowed to atarroyo tend the burial of her grandson.The date and time of the burial has yet to be announced.

“Arroyo received the crushing news of Jugo’s death while she was

waiting for him to arrive at the Veterans Memorial Medical Center yesterday [Sunday] morning.

A day that was supposed to bring joy in the form of a grandson delivered [to her] unspeakable grief instead,” it said.

“A grandson is not supposed to die ahead of a grandparent. Jugo was not supposed to die ahead of his grandmother. But for reasons beyond human understanding, he did,” the motion added.

“She is not a flight risk and has no

intention of fleeing. She only wishes to be with her family at this hour of terrible personal tragedy,” the motion also said.

The Sandiganbayan will hear on Tuesday the request of the former president.

Currently, the former president, who is appealing for humanitarian consideration owing to her deteriorating health condition, is under hospital arrest at the Veterans Memorial Medical Center in Quezon City.

3 US Navy ships cancel Subic port call DOJ files charges against Chinese drug traffickers

By Recto Mercene

T

HREE US Navy ships have canceled their scheduled port call at Subic Bay owing to operational requirements and not because of anti-American sentiments, the Department of Foreign Affairs (DFA) said.

“The reconsideration of the port call is a normal occurrence as US ships deployed in the Pacific are subject to operational requirements,” Dfa Spokesman Charles Jose said in a news briefing.

He said the DFA was informed recently of the cancellation by the US Embassy in Manila through a diplomatic note.

News reports said nine US Navy ships, scheduled to arrive this month until December have decided to cancel their port calls “due to anti-American sentiments” in the country after a US Marine was implicated in the slaying of a Filipino transgender in Olongapo City last month.

The Subic Bay Freeport Chamber of Commerce

was quoted as saying local businessmen are disappointed for losing the business in anticipation of the rest and recreation the sailors are expected to enjoy while docked in Subic.

The DFA said that the three ships are part of the nine-strong flotilla ships that has canceled the port call.

Jose belied claims that the cancellation of the visit was due to anti-American sentiments prevailing in the wake of the killing of transgender Jeffrey Laude.

“It is not true [that it is because] of antiAmerican sentiments, usually the purpose of port calls are for repair and operational reasons.

We can say they are not related to joint military exercises, they are not related at all,” Jose said.

He added that ships who fails to call could have been sent to other ports doing the same repair.

Jose added that the alleged killing of Laude by US Marines Pfc. Joseph Scott Pemberton is “not reason to cancel…we don’t see the ongoing case to be a reason.”

By Joel R. San Juan

T

HE Depar tment of Justice (DOJ) has recommended the filing of drug charges before the trial court against four Chinese who were earlier arrested in two separate raids in Pampanga.

The raids resulted in the seizure of at least P7 billion worth of methamphetamine hydrochloride, or shabu.

Charged before the Regional Trial Court in Pampanga were Jayson Lee, Willy Yao alias Jun Lee, and Near Tan alias Tsoi, all from Xiamen; and Yingying Huang alias Sophia from Fujian.

They were specifically charged with violation of Sections 8 (Manufacture of Dangerous Drugs and/or Controlled Precursors and Essential Chemicals) and 11 (Possession of Dangerous Drugs) Article II of Republic Act 9165.

plementation of the search warrants, dangerous drugs were found in the place subject of the search warrant,” the 14-page resolution said.

The resolution was prepared by Assistant State Prosecutor Michael Vito Cruz and approved by Senior Assistant State Prosecutor Lilian Doris Alejo and Prosecutor General Claro Arellano.

With regard to the three other respondents, the DOJ said it is clear based on the evidence gathered from their residence at Greenville Subdivision, Barangay San Jose, City of San Fernando, Pampanga, that they are engaged in the manufacture of illegal drugs.

“The presence of the precursors dimethyl and phenylaziridine [aziridine] in the clandestine laboratory is a prima facie proof of manufacture of dangerous drugs,” the resolution said.

On the other hand, Yingying was charged for violation of Section 11 only because she was arrested at her house, not in the alleged shabu laboratory where the other accused were arrested.

During their inquest proceedings, the respondents waived their right for a preliminary investigation and instead opted to move for the immediate resolution of the complaint.

In the case of Yingying, the DOJ held that the confiscated shabu found in her house clerly shows that she was engaged in the illicit trade of dangerous drugs.

“Positive declarations prevail over bare denial by the herein respondent.

The complaint is presumed, under the law, to have implemented the search warrant with regularity and in accord with the law. The evidence submitted sufficiently shows that upon the im-

NOV 7

3-DAY EXTENDED FORECAST

TODAY’S WEATHER

NOVEMBER 4, 2014 | TUESDAY

Typhoon is a cyclone category with winds of 118 - 181 kph.

TYPHOON “PAENG” LOCATED AT 1,210 KM EAST OF APARRI, CAGAYAN.

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.

NORTHEAST MONSOON AFFECTING NORTHERN LUZON. (AS OF NOVEMBER 3, 5:00 PM)

SBMA/CLARK 24 – 32°C METRO MANILA 23 – 33°C

TAGAYTAY CITY 21 – 29°C

NOV 7 FRIDAY

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

METRO CEBU 25 – 32°C CAGAYAN DE ORO CITY 23 – 30°C ZAMBOANGA CITY 25 – 32°C

25 – 32°C

25 – 33°C

25 – 33°C

23 – 31°C

23 – 32°C

23 – 32°C

TACLOBAN

25 – 32°C

25 – 32°C

25 – 33°C

23 – 32°C

CAGAYAN DE ORO

24 – 31°C

24 – 31°C

24 – 32°C

25 – 33°C

24 – 32°C

25 – 33°C

25 – 33°C

25 – 33°C

25 – 34°C

24 – 32°C

24 – 32°C

BAGUIO

16 – 24°C

16 – 23°C

16 – 23°C

METRO DAVAO

SBMA/ CLARK

25 – 32°C

25 – 33°C

25 – 33°C

ZAMBOANGA

21 – 29°C

22 – 29°C

PUERTO PRINCESA

ILOILO/ BACOLOD

24 – 33°C

25 – 33°C

SUNRISE

SUNSET

MOONSET

MOONRISE

5:52 AM

5:26 PM

3:03 PM

3:24 PM

22 – 29°C

25 – 33°C

HALF MOON FULL MOON

OCT 30

10:48 PM

23 – 30°C

23 – 30°C

24 – 31°C

CELEBES SEA

LOW TIDE MANILA HIGH TIDE SOUTH HARBOR

NOV 7

6:06 AM

2:03 PM

0.18 METER

8:31 PM

0.76 METER

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

26 – 32°C

26 – 33°C

26 – 33°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

www.panahon.tv

SABAH

FRIDAY

TUGUEGARAO

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

METRO DAVAO 25 – 33°C

NOV 7

24 – 33°C

LEGAZPI

PUERTO PRINCESA CITY 23 – 31°C

NOV 6

THURSDAY

24 – 33°C

TAGAYTAY

TACLOBAN CITY 25 – 32°C

NOV 5

WEDNESDAY

23 – 33°C

LEGAZPI CITY 24 – 32°C

ILOILO/ BACOLOD 25 – 31°C

3-DAY EXTENDED FORECAST METRO CEBU

TUGUEGARAO CITY 23 – 31°C BAGUIO CITY 16 – 24°C

NOV 6

THURSDAY

METRO MANILA

LAOAG

LAOAG CITY 24 – 32°C

NOV 5

WEDNESDAY

@PanahonTV

Economy

A4 Tuesday, November 4, 2014 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

ADB may extend $150-M more loans for Yolanda rehab and reconstruction

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By Cai U. Ordinario

HE Asian Development Bank (ADB) is open to extending an additional $150 million in loans for the reconstruction and rehabilitation of Supertyphoon Yolanda-affected areas.

In a news briefing on Monday, ADB East Asia, Southeast Asia and the Pacific Vice President Stephen Groff told reporters that the additional assistance is still being discussed with the national government and may be disbursed in tranches through various projects.

Groff said the amount is on top of the $900 million the Manila-based multilateral bank already extended for Yolanda-related projects.

“This $150 million is additional to the $900 million that we’ve announced previously and its $150 million additional for projects that are under way, projects that have been approved in previous years that are relevant to the needs of Eastern Visayas,” Groff said.

“We won’t be able to announce one big $150 [million], elements of each of those over time could add up to as much as $150 million but whether its $150 [million] or $156 [million] or $130 [million] at this point, we don’t

quite know but it could be as much as $150 [million],” he later clarified.

Groff also said the discussion for the additional funds could be completed before the end of the year or early 2015.

ADB Philippines Country Director Richard Bolt said the additional assistance will be focused on financing three kinds of projects.

These include road- improvement projects that are focused on rehabilitating typhoon-damaged roads and bridges, as well as agrarian-reform community projects that are geared toward the provision of irrigation facilities and farm-to-market roads.

The other project, Bolt said, could finance the ongoing Conditional Cash-Transfer Program, which has recently been modified by the government to include high-school student recipients of the assistance.

“That said, it is important to realize that many of these are loans. conditional cash transfer are loans

to the government, that is how these projects work,” Bolt said.

Groff said that, of the $900 million, the ADB extended to the Philippines to help in the reconstruction and rehabilitation of Yolanda-affected areas, only $23 million was extended as a grant and the rest was a loan.

Of the $877 million worth of loan, Groff said $500 million was extended as an emergency-assistance loan to the national government.

Groff said that, a year after the disaster, some $300 million of the emergency-assistance loan has been disbursed to the national government, while the remaining $200 million will be disbursed starting early next year.

Of the $23-million grant, Groff said $3 million was recently disbursed for life-saving services in the communities affected by Yolanda.

The remaining $20 million, which was funded by the Japan Fund for Poverty Reduction, may also be disbursed soon.

“It is not surprising that those funds have not disbursed quickly because there’s a lot of planning and preparation that go into those,” Groff said.

He, likewise, said Yolanda may have little positive impact on the country’s gross domestic product (GDP), but would rather expectedly raise poverty incidence in areas affected by the super typhoon.

Groff said the reconstruction and rehabilitation efforts, particularly

next year, will increase and is expected to provide some boost to the country’s economic growth.

However, given that Eastern Visayas does not contribute a significant amount to GDP, the impact will not be that significant.

Groff said poverty incidence in Yolanda-affected areas is expected to increase compared before the typhoon hit.

In Eastern Visayas alone, Groff said, poverty incidence could increase to 55 percent from 41 percent prior to Yolanda.

“One year after Yolanda, it is important to recall the scale and scope of this disaster. Yolanda was the largest and most powerful typhoon ever to hit land. It impacted a huge area, including some of the poorest regions in the Philippines,” Groff said.

“These are not just numbers. We’re talking about people’s lives here, we’re talking about families, we’re talking about people’s finances, their homes, their livelihoods,” he added.

Data from the ADB showed that Yolanda affected 16 million people, or 3.4 million families in central Philippines.

The typhoon damaged more than 1 million homes; 248 transmission towers; 33 million coconut trees; 600,000 hectares of agricultural land; and over 1,200 public structures, like provincial, municipal and barangay halls and public markets.

news@businessmirror.com.ph

briefs british permanent undersecretary visits manila Sir Simon Fraser, permanent undersecretary at the Foreign and Commonwealth Office and head of the UK government’s Diplomatic Service, will visit Manila on Wednesday and Thursday as part of Britain’s strategic engagement with the government of the Philippines.

Fraser will meet Foreign Secretary Albert F. del Rosario, Energy Secretary Jose Rene D. Almendras and other senior officials in Manila to discuss a range of bilateral and global issues. He will also meet business leaders as part of ongoing efforts to maintain the growth of trade and investment between the two countries that has been achieved in recent years.

The British Embassy Manila now employs up to 200 staff at peak times, including over 160 Filipinos.

This will be Fraser’s second trip to the country as permanent undersecretary, the first being in 2011. The UK has been stepping up its engagement with the Philippines as one of its key partners, aiming to double bilateral trade by 2015 and mounting its second GREAT campaign to boost business and cultural collaborations with the Philippines.

Fraser will also visit the global transaction processing center and regional corporate services hub. Manila was chosen as the “hub” for the largest center for the Foreign Commonwealth Office’s shared services due to the Philippines’s global excellence and competitiveness in the business-process outsourcing sector. The British Embassy Manila now employs up to 200 staff at peak times, including over 160 Filipinos. Recto Mercene

qc bags 2 more ‘galing pook awards’

Two Quezon City government programs won this year’s prestigious Galing Pook Awards on outstanding local government units (LGUs) that promote innovation and excellence in local governance.

Quezon City, recognized by the Galing Pook Foundation for its socialized housing program and for having established a pioneering male-focused sexual health-care facility, is only one of two LGUs that won the most awards. Quezon City shared such distinction with the Quezon provincial government, which also won two Galing Pook Awards.

Quezon City’s socialized-housing program, as envisioned by Mayor Herbert M. Bautista, is aimed at creating slum-free communities in the city by building well-organized Bistekville housing projects with multipurpose facilities for public services, such as health and day-care centers. With this development, the upgrading of the living conditions of the poor and removal of urban blight are simultaneously achieved.

Meanwhile, Quezon City pioneered in the establishment of the Klinika Bernardo male sundown social hygiene clinic in order to reach out to more individuals at risk of contracting sexually transmitted infections, especially those with exposure to male-to-male sexual behaviors.

The Regions BusinessMirror

news@businessmirror.com.ph

Police motorist assistance centers continue operating

P

ERSONNEL manning police assistance centers in major highways and transportation terminals have been instructed to remain in their posts to assist travelers returning to cities from the provinces after the observance of All Souls’ Day and All Saints’ Day. Director General Alan LM Purisima, National Police chief, issued the order on Monday, even as he noted the generally peaceful and almost “uneventful” twin celebrations.

Purisima’s move was prompted by field reports of inbound passengers that continue to pour into land, sea and air transportation hubs in Metro Manila, following the two-day traditional Filipino celebration to honor the dead.

He commended the commanders and personnel responsible in the implementation of “Ligtas Undas 2014” security plan.

“I extend the congratulations of President Aquino and Interior Secretary Manuel Roxas II to all police personnel, force multipliers, civilian volunteers and private security citizens who took part in ensuring a safe, orderly and meaningful observance of the traditional undas holiday nationwide,” Purisima said.

From the National Headquarters situation room at Camp Crame, Quezon City, the National Police Command Group kept in regular communication with designated directorial staff area supervisors, regional directors and ground com-

manders during the nationwide security operations for undas.

The National Police’s operations center recorded seven separate untoward incidents that marred the celebrations in different parts of the country, including a commotion at the Manila North Cemetery; a liquefied petroleum gas tank explosion in Taguig City; a stabbing incident in Baliwag, Bulacan; two separate incidents of firearms discharge in Carmen, Bohol, and Babatngon, Leyte; attempted agaw-armas in Guinhulngan City, Negros Oriental, and a fire in Benguet.

Despite these incidents, National Police spokesman, Senior Supt. Wilben Mayor said that, overall, the situation was generally peaceful.

Strict enforcement of security measures and local ordinances resulted in the confiscation of seven bottles of liquor and 52 prohibited items.

Meanwhile, continuous focused police operations resulted in the arrest of 32 wanted persons and 24 other violators of special laws. Also confiscated were eight firearms, two grenades, 51 sachets of prohibited drugs and a stolen van.

The mayor said the force deployed a total of 42,035 police personnel for Oplan Ligtas Undas 2014, who were backed by some 50,000 force multipliers composed of Barangay Tanods and Barangay Peacekeeping Action Team members, private security guards, civilian volunteers and nongovernmental organizations. ReneAcosta

Communist rebs kill 2 soldiers

T

WO soldiers were killed on Monday after they were ambushed by members of the New People’s Army while on their way to an evacuation center in the town of Daraga in Albay.

Lt. Col. Perfecto Peñaredondo, commander of the 2nd Infantry Battalion, said two soldiers were on the way to an evacuation center to check the security situation in the area when they were fired upon by rebels at around 7:40 a.m. at Barangay Anislag, Daraga.

Peñaredondo refused to reveal the identities of the two soldiers pending

notification of their next of kin.

However, a separate report from the Bicol police command identified the factalities as Pfcs. Dario Mahawis and Jerome Sambrona. It also said that the ambush exactly happened at Purok 5, Barangay Anislag.

Peñaredondo deployed a squad of soldiers that was able to catch up with the fleeing rebels, triggering a five-minute firefight. No casualties were reported in the brief gun battle.

Col. Raul Farnacio, commander of the 901st Infantry Brigade based in Albay ordered the deployment of other units to track down the rebels. R. Acosta

PHL aerospace. . . continued from a1 The $2.5-billion revenue target by 2022 was already presented earlier when the industry submitted its road map to the trade department.

But Lee said the industry now considers it is a conservative target.

A government intervention the industry wishes to see, Lee said, is the extension of the ITH period for both support-process services and manufacturers to a minimum of eight years from the prevailing four to six years.

“If you’re a supply-chain player and you would put in investments in a country where the volume is low, by the time you get the optimum volume, you already lost two to three years of your ITH. What we are trying to tell the government is that the subcontractors, or the added processes, be given incentives maybe at the minimum of eight years,” Lee said.

For manufacturers, since the process of certification of the products are drawn-out and takes two years, the industry is vying for an ITH period of six to eight years.

“Even if it’s not granted, what we are hoping is for the government to give some sort of assurance to these investors when they come in that they can extend it later on if the targets are still not achieved,” Lee added.

Lee also said a key to reaching higher production volumes to meet the industry’s revenue target is the certification of more parts and components suppliers—a rigid process considering the strict safety and quality standards for aircraft parts.

“The more companies that can certify for the AS-9001C standard, the more products they can supply,” Lee said.

The AIAP president explained that part of the government’s aid to ensure companies can meet international standards is the rolling out of training programs, through the Department of Science and Technology’s Metals Industry and Research Development Center. The program will help players meet the standards and develop better capabilities in support processes to manufacturing,

Editor: Efleda P. Campos • Tuesday, November 4, 2014 A5

Customs exec orders investigation into ‘overstaying’ cement shipment

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By Joel R. San Juan

HE collector of Customs at the Port of Batangas has ordered the investigation of reports that an “overstaying” shipment of imported cement was stockpiled at an extension of the the berthing facility in Mabini town.

Distr ict Col lector Er nesto Benitez Jr. was referring to a shipment that arrived two weeks ago from Vietnam, which is reportedly consigned to Cohaco Merchandising and Development Corp.

(CMDC) based in Makati City.

Benitez d irected Bata ngas Deputy District Collector Julius Premedes to particularly look into the apparent lack of proper storage facilities for the

construction material.

Initial findings showed that CMDC reportedly asked for permission to stockpile the 4,000-metric ton shipment at the pier side for want of a warehouse or a proper storage facility.

Benitez revealed that trucks loaded with portions of the cement importation with a total value of $208,000 have already rolled out of the Philippine National Oil Corp.

pier in Mabini even as the inquiry went under way.

A ranking port official also pointed out that the importation could not be immediately releases owing to the absence of a load port survey, which might be secured at the port of origin, or a discharge port obtainable at the port of call.

Concerned quarters in the construction industry warned that improper handling and exposure to the elements might have resulted in the deterioration of the cement’s quality, giving rise to the possibility for substandard cement to penetrate the local market.

They were also concerns that since the imported cement was deposited at the wharf, covered only by a tarpaulin, its strength as a construction material is seriously jeopardized by the very humid air prevalent in the area.

Most cement bags, the sources said, have a thin plastic lining to

Pizza parlor opens new resto concept in Angeles

By Ashley Manabat Correspondent

A

NGELES CITY—The No. 1 pizza parlor is levelling up. This time, Shakey’s Pizza Parlor has moved a notch higher with its newly opened store on MacArthur Highway in Barangay Santo Cristo here.

Shakey’s inaugurated its newest restaurant on Thursday with its “new concept” unveiled for the first time in Central Luzon.

The new Shakey’s concept now signifies it as a “family casual-dining restaurant” moving up from its old concept of a casual dining and fast-food outlet.

With its new concept also comes a new logo.

Shakey’s General Manager Jorge Maria Q. Concepcion said, “Two years ago, we started renovating Shakey’s from a mere 150-square-meter stores to 1,000-sq-m restaurants to accommodate more people and provide spacious parking for customers.

“It’s not only the food, fun and the experience that we want to share to our customers, but also the good memories,” he said.

Concepcion also assured that, despite the new concept, that has elevated the status of Shakey’s, the company has maintained its affordable prices in the menu.

such as heat treatment and surface treatment.

The Department of Trade and Industry, Lee said, is also helping the aerospace industry, not just through promotions abroad, but also by considering a longer program in aid of meeting certification standards, as well as to ensure more parts suppliers are brought up to international standards.

The AIAP said that, currently, there are 10 certified local companies, with two more hoping to get certification this year. Four more AIAP members are hoping to get certification next year.

“For aerospace, the players have to be very competent because of the strict process. It takes about two years before you can be accredited, so it is essential for us to build a supply chain that can help players perform better. Right now, the supply chain of aerospace is global, majority of the parts travel to and from the certification process in order to deliver the components; so the idea now is how to address the issue and localize it here,” Lee said.

Local players are upbeat in increasing investments for capacity building even in the short term, Lee said, as the production of new aircraft is increasing to meet demand.

“Some of our members have already invested about P400 million to P500 million this year in capacity-building. That would jump up next year when new aircraft by American and European assemblers are being built faster to meet demand.

The investments next year would probably double. They want to increase the production capacity of their suppliers so, in essence, they’re driving the Tier-1, Tier-2 suppliers to also increase their production capacity,” he said.

While the industry is bullish on meeting the $2.5-billion goal for the manufacturing component, AIAP said the maintenance, repair and overhaul and the airline sector of the industry may combine their road map with theirs so they can come up with a larger revenue target by 2022. The integration of the road maps is seen by next year.

He said another restaurant will soon open on December 3 under the new Shakey’s concept.

Pampanga Gov. Lilia “Nanay Baby” Pineda and Mayor Edgardo Pamintuan cut the ceremonial ribbon.

Pineda commended the Shakey’s management by providing migrant Filipino workers another venue to stay in touch with their families here.

Earlier, Concepcion said that, under the new concept, Filipino workers abroad or any Filipino out of the country who want to take part in birthdays, anniversaries or any other occasion in the Philippines can simply log in the Shakey’s web site (www.shakeyspizza.ph) and order pizzas or anything in the menu online, which can then be delivered to their loved ones here.

Pineda said Pampanga has the third-largest migrant population in the country at over 100,000 that provides additional revenues to the province. She also encouraged Shakey’s to join in the coming Pampanga Day celebration from December 1 to 11.

Luistro lauds Mayon DRR system

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luistro

EGAZPI CITY— Education Secretary Bro. Armin A. Luistro, FSC, has lauded Albay’s effective disaster-risk reduction (DRR) strategy, as proven once again in the recent evacuation of some 2,600 families from Mayon Volcano’s

danger zones.

Luistro said Albay should be a model for other local governments in the country. The evacuees, numbering to about 55,000 persons are now housed in 743 classrooms of 45 school buildings converted as evacuation centers accross the province, following the volcano’s imminent eruption last month.

Albay Gov. Joey Salceda ordered a preemptive evacuation of the resdents within the volcano’s danger zones after the Philippine Institute of Volcanology and Seismology (Phivolcs) raised Mayon’s alert to Level 3. It was aimed at zero casualty, a strategy Albay has pioneered and continuously implemented, and which goal it had consistently attained.

Talking to reporters during his visit here, Luistro said Albay is possibly the most organized and the most compliant to standards for internal displacement in terms of health, food security and education.

Preemptive evacuation and the systematic maintenance of evacuation centers are strategies Albay had almost perfected, a most important factor in disaster resilience, he said.

The secretary visited the populated evacuation centers in Camalig, Guinobatan, and Malilipot towns, and Tabaco City and was surprised to find out from camp managers that basic education classes for all of the 83 schools affected have resumed in 10 days following evacuation, and that attendance rate

were at 94 percent.

The 94-percent attendance was even higher than the 85 percent required by the Pantawid Pamilyang Pilipino Program, or 4Ps, under the Department of Social Welfare and Development, and better than the rate outside the evacuation camps.

Albay had also completed the construction of some 300 temporary learning spaces (TLS) and had procured the required 15,000 chairs, with a budget of P23 million from the Department of Education in places where schools were used as evacuation centers.

In health, Salceda said outcomes invariably show lower morbidity than when they were in the danger zones. Both morbidity and mortality (nondisaster related) rates among the evacuees were even lower than the general population outside the camps. Morbidity is recorded at one-third of 1 percent versus 2.5-percent to 3-percent national average, and cases have fallen from 740 to 340.

He said mortality is also lower for a 55,000 camp population. There were only 12 deaths reported from nondisaster causes versus 51 outside, reflecting better consultations, faster remedies and quicker referrals with health officials in the camps. Peace and order was also well maintained, with a zero-crime rate both in the camps and in the danger zones.

The evacuation centers are managed by Team Albay, the veteran and multiawarded composite group of civilian health and social workers, and police and military officers who have action in at least 11 major calamities around the country in the past four years.

Team Albay, that is divided into five clusters, handles the entire evacuation processes.

Since the emergency started, its members worked in shifts 24 hours a day in the centers managing and helping make life for the displaced families as normal as possible. PNA

protect it from humidity, not rain, and is only meant to be temporary.

An overexposed bag will yield “dead” cement, because the binding power has already begun the chemical reaction with water, resulting in hardening and clumping.

They also said atmospheric conditions within the warehouse or any storage facility affect the shelf life of the cement.

T he y recom mend t h at, to achieve ideal storage conditions, the shed should be “weather-proof with a damp-proof floor covered by a tarpaulin.” The cement bags should be closely stacked to minimize air circulation and should not be stored against outside walls.

All doors and windows of the shed should be kept closed as much as possible.

Even under good storage conditions, the cement will still lose about 20 percent of its strength after three months, and 50 percent after two years.

Catapang orders probe of six soldiers’ death

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By Rene Acosta

EN. Gregorio Pio Catapang, A r med Forces chief of staff, ordered on Monday the military commander in Western Mindanao to investigate the clash between Abu Sayyaf bandit and government forces on Sunday in Basilan, that resulted in the killing of soldiers, including a junior officer.

Catapang told Lt. Gen. Rustico Guer rero, Wester n Command chief, to determine the circumtances behind the encounter and submit a report on why the government incurred such number of casualties.

“I have ordered an investigation as to how come that incident happened so I’m not saying anything as of now on who’s at fault or if were there tactical lapses…what is important is that the incident be investigated,” Catapang said in a news conference.

“Well, to find out why how come these soldiers, one officer, died?

What are the circumstances?” He said of the investigation.

Members of the Army’s 64th Infantry Battalion were on security patrol at Sitio Mompol, Barangay Libug, Sumisip, when they clashed with the bandits at around 7:30 a.m. on Sunday, killing six troops, including a new graduate of the Philippine Military Academy (PMA).

The officer was identified on Monday as 2nd Lt. Jun Calima Corpuz, a member of PMA Class of 2014. Corpuz was 13th in his class.

On the other hand, the bandits were reportedly led by a certain Radzmi Jannatul, who is now the subject of an ongoing military operation.

Earlier, Col. Rolando Bautista, commander of the 104th Infantry Brigade said his troops were deployed at Barangay Libug to secure a vital project.

“My soldiers are securing the Basilan Circumferential Road projec t to ensu re it s t i me ly completion before the end of this year. I am saddened by this senseless violence against our soldiers who are helping deliver public services to the people,” he said.

Catapang said the investigation is needed, because, for one, “there is no ongoing all-out operations in Basilan.”

Opinion BusinessMirror

A6 Tuesday, November 4, 2014

Editor: Alvin I. Dacanay

editorial

Tax reform: Who’s supposed to benefit?

T

he Philippine Senate and House of Representatives are apparently set to discuss changes in the tax code, specifically the income tax.

For businesses, income tax is an expense that increases with profitability, which means the more a business succeeds, the more it gives the government. For an individual, the income tax means that you work for the government for part of your workday whether you want to or not.

John Marshall, the fourth chief justice of the Supreme Court of the United States, said this about taxation: “The power to tax involves the power to destroy.”

The first taxes on income came from Chinese Emperor Wang Mang of the Xin dynasty, who taxed the profits of professionals and skilled labor. The Emperor and his profit tax were overthrown a few years later.

Through the centuries, taxes on the people were usually used either to keep the rulers in a comfortable lifestyle or to fight wars. It is a relatively new development that the people actually expect to get something back for what they pay in taxes.

There is certainly economic feasibility and practicality to pooling funds to pay for goods or services. Homeowners or condominium association dues are a tax and are usually based on the value of the unit. But the farther the “taxes” go away to than be returned to the user, the more waste. It is like passing buckets hand to hand to put out a fire. By the time the bucket reaches the last person in line, some, if not much, of the water is gone.

Tax reform is the process of changing the way taxes are collected. But what is the goal of this proposed tax reform?

One representative says that his bill will leave more money in the hands of the lower-income workers. Another says the Philippines will be more competitive for foreign investments. But this is what the Department of Finance (DOF) says: “Lowering income-tax rates may attract more foreign investors into the country, but will be detrimental to our fiscal health if they are not offset by revenue-generating measures.” So tax reform is fine, as long as the government is still able to take the same amount from the economy. We just need to jumble things around a bit.

Further, the DOF said, tax reform must be “equitable so all Filipinos may continue to benefit from a robust fiscal position.”

Our current “equitable” system has a worker paying 32 percent on a P500,000 income. Maybe Thailand’s 10-percent rate on the same income would be more “equitable”. Thailand also has a national budget of P3.5 trillion versus our 2015 budget of P2.6 trillion, with almost the same government debt-to-gross domestic product ratio. Maybe someday tax reform will make taxes more equitable between the taxpayers and the tax takers.

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The house that provides joy of a hundredfold Manny B. Villar

THE Entrepreneur First of two parts

I

decided to veer away from economic and business issues for this week’s column, in deference to the weekend All Souls’ Day or All Saints’ Day, when many Filipinos trooped to the cemeteries to remember their departed.

This is also an opportunity to talk about one of my favorite advocacies: building churches. My family and I recently traveled to Spain, on invitation of the Recolletos or Recollects, to see the place where Ezekiel Moreno spent his last days. He was a parish priest of Las Piñas for many years, before he was assigned to another country, and then went back to Monte Agudo in Spain, where he died of cancer. We were shown his room at the church in Monte Agudo, which was well-preserved. It has a hole that allowed him to watch and pray while Mass was going on.

That visit inspired me to revisit our plans for the Santuario de San Ezekiel Moreno in Pulanglupa, Las Piñas City. When the groundbreaking was held in 2011, the plan was for a 700-seating capacity, but, when it was finished, the capacity reached

750 seats, expandable to 1,000.

Santuario de San Ezekiel Moreno is now a work in progress. In addition to the inspiration I got from the trip to Spain, public reception also encouraged me to expand and improve the church way beyond the original plans. The church is not located at the center of heavily populated communities, yet, in recent weeks, it had attracted as many as 900 churchgoers.

It is the fourth church that I have built since 2010, and I am now going back to the first three, also for further improvement and expansion.

These are the Savannah City Church in Iloilo, with about a thousand seating capacity and is the centerpiece of the community’s Village Center, where residents gather for celebration, fun and leisure; the Santuario Madonna del Divino Amore

at Evia in Alabang, which can also seat a thousand; and the Maia Alta in Antipolo, Rizal.

When Santuario de San Ezekiel Moreno neared completion, I thought of building three or four more churches. Now, I plan to build churches for the rest of my life.

Among the possible sites for the new churches include Cebu, Malolos (Bulacan), General Trias (Cavite) and Lipa (Batangas).

At the Crosswinds in Tagaytay, where I planted 30,000 pine trees to develop a Swiss-inspired residential community, I plan to build a church that, while small, will be a very beautiful structure, which will stand out and become a landmark in Tagaytay. Actually, I want it to become the prettiest church in the Philippines. My daughter Camille is involved in this project, which will sit on top of a hill.

Initially, we used in-house architects from Vista Land and its subsidiaries, but, now, we are hiring outside architects and designers, who are experts in church construction and design.

All of the churches will be built on land that we own, because it would be very expensive if we have to buy the sites.

When I was young I dreamed of building homes. And, now, I feel personal satisfaction every time a family moves into a house that I built. For more than three decades

Be careful what you listen to John Mangun

OUTSIDE THE BOX

S

ince 2008 we have been swamped with investment advice and market predictions. It is certainly important to understand money and what you can do to increase your wealth. But we need to be cautious about what we are being told.

There is little unbiased analysis/ advice/forecasting available. It is virtually all agenda driven. The global financial press and media cannot be trusted as its purpose is to support government and central bank policy.

The only thing that is keeping the global financial system together is confidence that the governments and central banks know what they are doing.

Any sensible person looking at the data realizes that the debt level of individuals, corporations and governments in the “developed” world is unsustainable. Global economic growth is being funded by government debt and even what growth there is, is insufficient to increase standards of living. So the only factor that keeps the system running is the mantra, “Keep calm and carry on.”

The man who ran the first quantitative easing (QE) operation in

the US, Andrew Huszar, recently said this: “The reality is that confidence in markets has been artificially stimulated in the last few years by the Federal Reserve.” The financial markets can operate only when people believe that they are sound and stable, and the only thing that is keeping them stable is government intervention.

The Emperor may be naked but if too many people admit that fact, the kingdom will collapse.

Because people are now more aware of the importance of taking care of their personal finances, after seeing the disaster of public finances, many are almost desperate to increase their knowledge and get some practical advice on how to weather the situation.

While everyone knows that the world changed in 2008, at least the world we knew before in our lifetimes, the personal financial advice

has not changed much, if any.

Take saving money, for example.

We have always been taught to put a little aside for the future. But following that piece of wisdom today is a guaranteed way to grow poorer.

Every peso, dollar, or Japanese yen saved today is worth less tomorrow.

Look at it this way. Would you go to Jollibee and buy their gift checks to “save” for the future? Of course not, because you cannot buy a gift check good for a “Two-Piece Chicken Joy” redeemable in 2020. If you would not save a P100 Jollibee gift check, why would you save a P100 Philippine government “gift check”?

The same applies with the stock market. We are told to put P2,000 in the market every month and in 20 years you are guaranteed to be a millionaire. The reality is that had you done that for the last 20 years, the value of your stock-market investment, at best, would have been better than breakeven with the increase in prices. At worst, you would have lost purchasing power.

Ask this question: “What advice are you giving today that you would not have given 10 or 20 years ago?”

If the nature of money has changed, and it has, how can we use the same investment methods that worked before? It does not make sense.

Twenty years ago the Philippine central bank wanted a stable and fairly strong peso. Now a relatively weaker peso is fine because it

I have built more than 200,000 houses for people, yet each church that I complete fills me with joy that is a hundredfold the gladness that I feel when I build a house for people.

I think it’s because building houses for people fulfills one of the basic needs in this life, where parents and children can stay together. On the other hand, a house dedicated to the Lord serves as a special place where people can communicate with their Creator, where they can find refuge and receive the kind of comfort that even the most elegant mansions cannot provide.

Filipinos are known to be a religious people and, especially for the poor, often the church is the only place to go to during crises. They serve as special places for meditation and calming experience, as well as family bonding. This is especially true in recent days, because of the calamities that hit the Philippines. Our people need to be close to churches where they can find refuge, too.

Building churches serves as the spiritual side of the advocacies of the Sipag Foundation, which is undertaking livelihood and environmental programs.

To be continued

For comments, e-mail mbv.secretariat@gmail.com or visit www. mannyvillar.com.ph.

improves the purchasing power of remittances, supposedly helps exports and may attract more foreign investment.

Be wary of predictions and forecasts that never seem to change.

Two years ago I wrote a column entitled, “What $3,000 Gold Will Mean To PHL?” Based on my analysis then, gold should have moved significantly higher but, in fact, went lower. Six months later, I discarded that idea because the situation had changed with more QE. Economist John Maynard Keynes said, “When my information changes, I alter my conclusions.”

The same is true with those that have been saying, literally for years, the debt bubble will burst or that the PHL property sector will collapse.

You have to act based on the current condition, not what may happen in some undefined future. If you keep on guard and keep watching, you will have plenty of time to avoid the crash. Do you believe that every investor was wiped out in the 1929 or the 2008 US market crashes? Sadly, it was primarily the ones that listened to the “experts” that lost.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Opinion BusinessMirror

opinion@businessmirror.com.ph

‘Ang pagbabalik ng Panday?’

Bayantel’s unused radio frequencies Butch del Castillo

OMERTA

Ernesto M. Hilario

ABOUT TOWN

D

on’t look now, but actor-politician Bong Revilla just might make it home from Camp Crame before Christmas, if we’re to believe his defense lawyers.

Their optimism is grounded on the results of their recent cross examination of the witness presented by the Office of the Ombudsman, lawyer Leigh Von Santos of the AntiMoney Laundering Council (AMLC).

What did Santos reveal during the proceedings?

The AMLC bank investigator said his team only looked into the senator’s cash deposits and that he has no records to support the contention of the prosecution that Janet Lim-Napoles transferred funds to Revilla.

Santos said they examined the cash allegedly received by lawyer Richard Cambe, Revilla’s legislative officer who is co-accused in the plunder charge, but the inquiry was not supported by bank documents.

Cambe’s counsel, lawyer Michael Ancheta, asked Santos if he had bank records proving that Cambe received cash from Napoles. Santos said he had none.

Revilla asserts that he can defend all the transactions in his bank accounts examined by the AMLC: “Everyone in the movie industry knows how I make millions of money from one blockbuster movie alone. And in my more than 20 years in showbiz, I can say that the amount of money I am accused of having stolen is quite small compared to my aggregate earnings as an action star.”

With the AMLC investigator’s testimony appearing to favor the detained senator, Ombudsman lawyers filed a motion asking the Sandiganbayan to issue a writ of preliminary attachment against Revilla’s assets, even though the court has yet to rule on the senator’s petition for bail. The prosecutors said a notice of garnishment—basically a freeze order—covering cash and properties totaling P224.5 million, would preserve the assets while the accused is on trial.

Revilla believes the move by the Ombudsman lawyers is aimed at deflecting the dismal performance at the witness stand of AMLC’s Santos, who was forced to admit under cross examination that he has no records to support the claim that Napoles transferred funds to the senator’s bank accounts.

“The cross examination on Santos clearly showed that the prosecution has no evidence that will show that the deposits in my bank accounts came from Janet Lim-Napoles. Even star witness Benhur Luy admitted that he does not know me personally, and that we never met or talked to each other, and that he never transacted business with me,” Revilla said.

Revilla also disputes the amount of P224.5 million, which the Ombudsman lawyers want to garnish from bank accounts, shares of stocks and other properties listed in his Statement of Assets, Liabilities and Net worth.

Revilla cited the conflicting figures presented by the prosecutors.

At the start of the Senate inquiry into the pork-barrel scam, he was accused of pocketing P1.2 billion, which became P400 million, and later P224.5 million.

Revilla also lamented the timing of the suspension order by Senate President Franklin M. Drilon, which coincided with the filing of the writ of temporary attachment by Ombudsman lawyers. Drilon ordered on October 27 (the same day that the Ombudsman lawyers filed their motion with the Sandiganbayan) the 90-day preventive suspension of Revilla and Cambe in connection

Tuesday, November 4, 2014

with the plunder case pending before the Sandiganbayan. The 90-day suspension orders against Revilla and Cambe will be in effect from November 3 to January 31, 2015.

Revilla suspects that there is an orchestrated move by the administration to keep him behind bars, especially after his defense lawyers had demolished the testimonies of star witness Luy and, later, Santos.

With the weak plunder case filed by state prosecutors against him, Revilla appears confident that he would be granted bail by the Sandiganbayan and could spend Christmas with his family.

Revilla’s temporary liberty will depend, of course, on the judgment of the three justices of the Sandiganbayan’s First Division. We’ll know soon enough.

Camp John Hay row still unresolved

We’ve written about the longstanding dispute between the state-run Bases Conversion and Development Authority (BCDA) and the privately run Camp John Hay Development Corp. (CHJDevco) over the former American R&R facility, which is now a special economic zone.

BCDA claims that CJHDevco has defaulted on its rental payments now totaling P3.4 billion for leasing and developing a 247-hectare land parcel at the JHSEZ. But CHJDevCo counters that the supposed P3.4 billion in unpaid rentals is just a figment of the BCDA president’s imagination because CJHDevco is actually up to date in its payments “based on the actual implementation [or lack of it] of the 1999 MOA [memorandum of agreement] and the subsequent revisions [RMOAs]” and has already invested P5 billionplus in developmental and operational costs plus interest expenses in its leased JHSEZ property.

The two sides are now waiting for the resolution of their case at the Philippine Dispute Resolution Center Inc., which is expected to hand out its decision in a month or two.

Meanwhile, CJHDevco contends that BCDA has been filing legal cases and employing harassment tactics against it as part of a sinister plot to drive it away from Camp John Hay, apparently for the benefit of a big Makati-based conglomerate.

In August 2012 BCDA filed with the Department of Justice (DOJ) 52 counts of malversation of public funds and property charges against CJHDevco for allegedly not providing income and accounting of 26 hotel units paid in kind in 2008.

In September 2013 the DOJ dismissed 50 counts, but somehow retained two to keep alive both the case and CJHDevco’s negative image. In March this year another estafa case was filed with the DOJ

by BCDA against CJHDevco, involving the 2008 payment in kind of a log cabin that BCDA alleged to have been sold to an individual, Wilson Sy. This complaint was used by BCDA in full-page newspaper ads to claim that CJHDevco was engaged in “fraudulent” acts at the JHSEZ. Despite an affidavit from Sy denying that he owned the cabin, the DOJ allegedly sat on the estafa case and other seemingly frivolous BCDA suits, including a “professional squatting” charge on the leased property by lessee CJHDevco.

Email: ernhil@yahoo.com.

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he Philippine Long Distance Telephone Co. (PLDT) and Smart Communications are, of course, dead set on blocking the impending takeover by the Ayala-led Globe Telecom Inc. of the cash-strapped Bayan Telecommunications Holdings Inc. (Bayantel, owned by the Lopezes).

Already, the tandem has obtained a temporary restraining order (TRO) from the Court of Appeals (CA) stopping the National Telecommunications Commission (NTC) from acting on Globe’s bid to acquire the majority stake in Bayantel.

It seems PLDT and Smart will do whatever it takes to derail the proposed arrangement between Globe and Bayantel pending the settlement of a vital legal issue concerning the disposition of unused radio frequencies.

PLDT and Smart believe that the government should first auction off the unused frequencies held by Bayantel before it gets into any deal with Globe for the former’s financial rehabilitation.

However, Globe general counsel Froilan Castelo was quoted as saying that “the radio frequencies being disputed by the PLDT are vital in the rehabilitation of Bayantel and this has been approved by a lower court in Pasig City in August last year.”

As far as PLDT and Smart are concerned, the financial rehab of Bayantel, owned by the Lopez family, is a mere ploy to take over control of Bayantel’s unused radio frequencies.

It doesn’t matter if a lower court has approved the deal.

In a disclosure to the Philippine Stock Exchange, PLDT First Vice President Melissa Vergel de Dios said

the Globe-Bayantel arrangement would circumvent pertinent laws regarding the assignment, allocation or use of radio frequencies that have remained idle for more than 10 years since Bayantel obtained its provisional authority.”

Vergel de Dios also said: “It should be noted that Bayantel’s congressional franchise also specifically prohibits the transfer, sale or assignment of any right or privilege granted it without the approval of Congress.”

Castelo, however, has argued that the proposed takeover of Bayantel

by Globe does not need congressional approval “as the transaction only involves the transfer of shares of stocks.”

This case bears watching not only because it is usually entertaining to watch two giants wrestle. There are also important public policy issues at stake.

According to Globe’s statement, the TRO would only delay the completion of Bayantel’s rehabilitation, harm the interests of its employees and delay service improvements for its 350,000 customers.

For its part, PLDT maintains that the CA action was necessary because aspects of Bayantel’s rehab plan were in violation of current laws and regulations, particularly those covering how radio frequencies assigned by the government to

Should the long-idle radio frequencies assigned to Bayantel be auctioned off to resolve all doubts? Or, putting it another way— why would anyone oppose a public bidding, which could only ensure that the process of assigning them would be transparent, above-board and legally unassailable? telecoms companies.

“The real bone of contention here is the radio-frequency spectrum that Bayantel holds, which can be used for mobile-phone services,” a PLDT executive said. Radio spectrum is the lifeblood of cellular companies.

That’s what this contentious debate is all about.

But Globe insists that the matter of radio frequency is a nonissue because its investment in Bayantel merely involves the acquisition of shares of stock in the company.

It says the use of Bayantel’s radio frequencies would be covered by a joint-use agreement between the two companies.

Do you believe that?

PLDT, in reply, is saying that the so-called joint-use agreement effectively enables Globe to acquire and freely use Bayantel’s frequencies.

This, it says, will be in violation of Bayantel’s own franchise, which specifically prohibits the transfer, sale or assignment of any right or privilege granted it with the approval of Congress.

PLDT had earlier warned that Globe stood to acquire a “grossly disproportionate” amount of frequencies in relation to subscribers as it currently accounts for 32 percent of the cellular market as against PLDT’s 68 percent.

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Globe already has control over 22.5 megahertz (MHz) of the 1,800 MHz 2G bandwidth. PLDT has 37.5 MHz, 50 MHz, and 2,500 MHz 4G bandwidth and 35 MHz. With the planned acquisition, Globe would have access to Bayantel’s 50 MHz for 4G frequencies on top of its existing 45 MHz, while PLDT, through Smart and Digitel, only has access to 35 MHz of frequencies in 4G bandwidth.

PLDT also pointed out that Bayantel’s unused radio frequencies should have been recalled by the NTC a long time ago. Bayantel had consistently failed to deliver on its commitment to set up a mobile-phone service since it was granted a provisional authority in 2000. That was 14 years ago.

Under NTC rules, the radio frequencies of operators that fail to deliver on their network rollout commitments within one year would make those frequencies subject to recall.

Once recalled, such frequencies should be made available to other operators with enough financial muscle to harness those frequencies for the benefit of the public. This means the frequencies should be auctioned off in a public bidding.

Incidentally, it is not only the PLDT-Smart tandem that is opposing the Globe-Bayantel joint-use agreement. A start-up company, Next Mobile, currently referred to as NOW Telecom, has also filed an opposition, arguing that the proposed scheme circumvents the public bidding requirement.

So, the question remains: Should the long-idle radio frequencies assigned to Bayantel be auctioned off to resolve all doubts? Or, putting it another way—why would anyone oppose a public bidding, which could only ensure that the process of assigning them would be transparent, above-board and legally unassailable?

E-mail: Omerta_bdc@yahoo.com.

A technology-oriented development agenda

week ago Filipino and American officials, led by Science Secretary Mario G. Montejo and US Ambassador Philip S. Goldberg, convened the first Joint Philippine-US Science and Technology Committee meeting.

This partnering with the three top scientific nations of the world is a good start for a laggard in innovation and creativity. This collaboration may very well lay the foundation for the country to leapfrog its development, in spite of the lack of direction and foresight from our political leaders.

Four working groups of scientists and technologists from both countries presented action plans for collaborative projects on climate change and disaster resilience; health research; marine biodiversity and conservation; and the Philippines’s scienceand-technology capacity-building.

This pioneering effort coincides with the United States Agency for International Development’s Science, Technology, Research and Innovation for Development Program aimed at sustaining the Philippines’s economic growth by jump-starting its “science innovation ecosystem.” Under the

research institutions, public and private, can seek financial support (P2 million to P10 million per grant) for establishing new or refreshing existing partnerships with their UK counterparts. Grants will be awarded for projects on health and life sciences; environmental resilience and energy security; future cities; agritech; and digital innovation and creativity.

Also in June, the Department of Science and Technology concluded an agreement with the Japanese government for information and communications technology (ICT) development. A memorandum of

Edgardo J. Angara

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program, $32 million (P1.3 billion) was available to the Philippines over the next five years for scholarships, US study tours, industry-academe research and technology transfer.

In June the British government announced a similar developmental initiative called the “Newton Fund,” which is a P27.5-billion (€375 million) foreign-aid fund of which P733.5 million (€10 million) will be devoted to the Philippines for bilateral and multilateral projects on research and innovation for economic development.

For the Newton Fund’s first year (of five), Philippine universities and

Europe’s crazy finance tax

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rangling among the 11 euro-region nations planning to tax financial transactions is further evidence, if any were needed, that the levy is a bad idea that should be abandoned.

The European Commission acknowledges that the latest version of its planned financial transactions tax (or Tobin tax, or Robin Hood tax, if you prefer) isn’t the best option. That, it says, would be a globally coordinated toll on trading—which is laughably unlikely. The narrower the tax’s coverage, the less sense it makes. That’s why Europe’s proposed transactions tax isn’t even second best: An earlier effort to apply it across all 27 European Union members failed.

In its current diluted form, the tax would charge 0.1 percent for non-

derivative securities such as government bonds or company shares, and 0.01 percent on the notional value of derivatives trades. Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain are the willing 11 countries; but they can’t agree on how to divvy up the proceeds. They’re struggling to meet a self-imposed deadline for an agreement by the end of the year, with the duty scheduled to be imposed by the end of 2015.

The most fundamental question about the tax still hasn’t been answered—what’s it for? If the aim is to reduce volatility and speculation in the securities markets, it’s far from clear that the tax would work, according to a study by the consulting firm PricewaterhouseCoopers.

If the idea is to strengthen the economy, the tax is a failure at the planning stage. Depending on how the proceeds were spent, the commission itself estimates the transactions tax would raise the cost of capital and could cut as much as 0.28 percent from gross domestic product—a little more than it would raise in extra revenue. With the bloc threatening to slide back into recession, you’d think any policy that risked hurting growth would be rejected out of hand.

The chief motivation for the tax is populist politics: It’s mostly about vengeance for the financial crisis.

Bashing bankers, regardless of the collateral damage, remains popular with European politicians. The commission’s justifications for the tax are based more on the desire to punish,

understanding was signed with the Ministry for Internal Affairs and Communications (MIC) for technical assistance during the Philippines’s transition to the Japanese standard for digital TV broadcasting technologies.

The DOST and the MIC, moreover, agreed to cooperate toward developing ICT for disaster risk-reduction and enhancing cybersecurity programs for e-commerce and e-government.

This partnering with the three top scientific nations of the world is a good start for a laggard in innovation and creativity. This collaboration may very well lay the foundation for the country to leapfrog its development, in spite of the lack of direction and foresight from our political leaders.

Government needs to be “a proactive conductor” and orchestrate the actions of our innovation ecosystem, as I said in my column a few weeks back (October 21).

Website: www.edangara.com.

E-mail: angara.ed@gmail.com.

and on resentment over bankers’ pay, than on reducing risk. “The tax revenues collected should constitute a fair and substantial contribution from the financial sector for covering the cost of the financial crisis,” it says. And it sees the tax as an apt response to the “significant earnings premium in the financial sector.”

Finance needs to be effectively regulated, with systemic safety to the fore. Revenge is not the point— least of all if it harms the economy into the bargain. Wim Mijs, the chief executive of the European Banking Federation, said last week that the tax is “about the worst idea of the last three centuries.” That might be putting it a little high, but he’s right that the sooner Europe abandons this notion, the better. Bloomberg

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www.businessmirror.com.ph

PHL seeks fresh $1.36-B funding from WB

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By Cai U. Ordinario

Bus Rapid Transport (BRT); and the $108.89-million Manila-Quezon Avenue BRT Project (formerly the Manila-Quezon Avenue Corridor Improvement Project).

The other projects include the $200-million to $250-million worth Bangsamoro Financing Facility (BFF) for Agribusiness, as well as the Project Gearing Rural Organizations for Wealth Creation toward Household Income Improvement

(Project Growth) and the Philippines Cross-Sectoral Health Enhancement Program (PHICS-HEP), which costs have yet to be determined.

In the PRDP, the World Bank is expected to extend a loan of $501.25 million and a grant worth $7 million. The remaining $163.34 million represents counterpart funding by the government. “[The] loan agreement was signed on September 8, 2014. The DOF [Department of Finance] is currently securing Monetary Board final approval, which is one of the conditions for loan effectivity,” the Neda said. “ICC-CC [Investment Coordination Committee-Cabinet Committee] approval of the project was confirmed by the Neda Board on June 26, 2013.”

In the DPL, the Neda said, the World Bank will shoulder the entire cost of the project. The project,

however, is still under evaluation by the World Bank Board.

The project was approved by the Development Budget Coordination Committee (DBCC) in June and was “approved in principle” by the Monetary Board in July.

The Cebu BRT will be financed by the World Bank and two other donor agencies. The government is also seeking a loan for $110 million from the World Bank’s International Bank for Reconstruction and Development for the project, while the remainder of the cost is proposed for funding by the French Development Agency and the Clean Technology Fund.

“Following loan negotiations, World Bank is currently securing board approval of the loan prior to loan-agreement signing,” the Neda said. “ICC approval of the project was confirmed by the Neda Board

on May 29, 2014.”

For the Manila-Quezon Avenue BRT, the government proposed for the World Bank to finance $59.11 million of the cost through a loan.

The remaining cost of $49.78 million represents government counterpart funding.

The project, the Neda said, is still under ICC Secretariat review. Only after the ICC Secretariat review can the project be submitted to the ICCCabcom for approval and to the Neda Board for confirmation.

The government, meanwhile, seeks World Bank funding for Project Growth through an $88-million to $144-million loan and at least $300 million for the PHICS-HEP project.

However, the full cost of both projects are still being determined since the project concepts are undergoing revisions at the World Bank.

The World Bank’s contribution

to the BFF, on the other hand, is still being determined pending the revision of the project’s concept note by the Washington-based lender.

“Included among the World Bank potential pipeline projects for FY 2015-2017. The project will be included in the next updating of the PIP provided that the feasibility study is available,” the Neda, however, said.

ODA, as defined in Republic Act 8182-ODA Act of 1996, is a loan or a grant administered with the objective of promoting sustainable social and economic development and welfare of the Philippines.

ODA resources are contracted from governments of foreign countries with whom the Philippines has diplomatic, trade relations or bilateral agreements, or which are members of the United Nations, their agencies and international or multilateral lending institutions.

Continued from A1

A legal opinion from the Department of Justice emphasized the need for the project to be reverted to an unsolicited proposal and undergo a competitive challenge.

To recall, the group of businessman Manuel V. Pangilinan submitted the expressway project to the public works agency as an unsolicited proposal in May 2010.

It was duly approved by the high-

est planning body of the government in 2013.

Under the recommendation of Transportation Secretary Joseph Emilio A. Abaya, the National Economic and Development Authority Board moved to amend the existing supplemental toll-operations agreement of the firm to hasten the project’s mode of implementation.

Under the revised supplemental toll-operations agreement, Manila North Tollways Corp. (MNTC)—the

corporate vehicle for the implementation of the connector road project—would connect the thoroughfare to the two-segment Harbor Link Project. This effectively eliminates the long process of placing the unsolicited offer under a competitive challenge.

MNTC is a JV between Metro Pacific Tollways Corp. and PNCC, which holds the franchise for both the Nlex and South Luzon Expressway.

“It will no longer undergo a Swiss

Challenge,” Pangilinan said. “But it still depends on the government.”

Despite the relaxed stance of the government, which deems the project as a priority to lessen the traffic buildup at the ports in Manila, Pangilinan is still firm on his statement that the project will be delayed by a year or two.

He lamented that his firm could not catch up with the original timeline of completing the project within the President’s term. “Given where

we are, I think we declared that more likely it will be anytime between 2017 and 2018. As we speak today, there’s no way we could finish by 2016,” the businessman said.

The connector road, or Segment 10.2, is an 8-kilometer mainline road that will run from C-3 Road in Caloocan to Polytechnic University of the Philippines in Santa Mesa, Manila. It will also have 2.6-km port area spur road that will run from C-2 Road to R10 in Tondo, Manila.

he government has sought $1.36 billion worth of financial assistance from the World Bank for various infrastructure projects.

As of end-September, the National Economic and Development Authority (Neda) sought funding for seven projects in the pipeline under the official development assistance (ODA) window of the World Bank.

The projects include the $671.59million Philippine Rural Development Program (PRDP); the $300million Development Policy Loan (DPL) Series; the $187-million Cebu

MVP eyes JV with PNCC for connector road

Bsp to continue intervention to cushion peso fall Continued from A1

during the day, however, helped the peso recover a bit toward the close,” Tetangco said in a text message to reporters.

On Friday Japan’s central bank

stepped up its bond purchases as part of its monetary stimulus program to help push inflation higher to avoid a deflation spiral when prices fall and consumers postpone purchases that fuel growth.

The peso had been testing the

45-territory since last month as markets react to US growth getting more traction. The central bank vowed to take necessary actions if necessary.

“We will keep a presence in the market as appropriate to help avoid excessive volatility,” Tetangco said.

Ang wants more stake in energy industry

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The growth was attributed to higher sales from both its Philippine and Malaysian operations. The combined sales volume went up by 8 percent, to 43.1 million barrels for the period from 39.8 million barrels last year. This resulted in an 18-percent increase in sales revenue to P258.2 billion as against P218.8 billion in the first half of 2013.

When Ang was asked how Petron will end the year, he said: “Looks like it should be at par with last year.”

Petron, in 2013, posted profits of P5.1 billion, 186 percent higher than in 2012.

The Jalan Selayang station in Malaysia is the first station built by Petron from the ground up since the Philippine refiner invested in early 2012 to acquire publicly listed Petron Malaysia Refining and Marketing Bhd., Petron Fuel International Sdn Bhd. and Petron Oil (M) Sdn Bhd. These three companies comprise Petron Malaysia, which, in turn, represents the single-largest investment by a Philippine company.

Oversubscribed

On Monday Petron successfully listed P10-million preferred shares worth P10 billion in the Philippine Stock Exchange.

Due to the favorable reception of the investment community, the issue was oversubscribed. The offer size of P7 billion was increased by another P3 billion to reach a total of P10 billion. Dividends on the preferred shares shall be at a fixed rate of 6.3000 percent per annum for the Series 2A, and 6.8583 percent per annum for the Series 2B. “The strong response to our offering signals the trust and confidence of the investment community in the growth prospects of the company and its viability over the long term,” Ang said.

The oil firm earlier disclosed that proceeds from the offering will be used to redeem the P10-billion preferred shares it issued in 2010.

“The solid support we received from investors bodes well for the company at a time when we are already commissioning our biggest and most ambitious project to date,” Ang added.

Petron’s $2-billion RMP-2 investment is now complete and is slated for full commercial operation by early 2015. It has begun starting up major units in September.

RMP-2 was completed on time and on budget. Projects of this magnitude usually take about 60 months to complete, but

Petron was able to finish the project in just 44 months from inception to completion. The construction phase, alone, was completed in just 21 months.

Once fully operational, this massive project will allow Petron to fully utilize its 180,000-barrels-per-day refinery in Limay, Bataan; increase its production of highervalue white products such as gasoline, diesel, liquified petroleum gas and petrochemicals; and produce Euro-4 standard fuels.The project is also expected to reduce the country’s dependence on imported fuels.

The RMP-2 transforms Petron’s refinery into one of the most-advanced refinery facilities in the region in terms of processing and energy efficiency, operational availability and complexity.

New power plant

For its oil business, SMC’s power-generation subsidiary SMC Global Power Holdings Corp. will construct a new power plant in Cebu, in a bid to contribute more capacity to the country’s power grid.

“We will be building a power plant in Cebu to cater to the Visayas market. We are looking at a 300-megawatt [MW] coalpower plant using Circulating Fluidized Bed [CFB] technology, and eventually will build it up to 900 MW,” Ang said.

The Department of Energy (DOE) has been informed of SMC’s plans. Ang said the agency may approve the planned power facility within the year.“Right now, I think it’s just waiting for the DOE approval,” said Ang, who added that approval may be released within the year.

SMC Global, which entered the power sector in 2009, owns and operates the Sual, Ilijan and San Roque power plants that generated a total of 15,250 gigawatthours of electricity in 2012.

In just four years, SMC Global Power has become one of the largest independent power-generation companies in the country, with an installed capacity of 2,545 MW. As of 2012 it already cornered a 17-percent share in the power supply of the national grid and 23-percent share of the Luzon grid.

When sought for comment, Energy Secretary Carlos Jericho L. Petilla welcomed SMC’s planned investments here and abroad. “Any form of investment in power is welcome, especially merchant plants which are built even without any prior off-take,” he said in a text message.

However, Petilla’s office has yet to validate whether to include SMC’s power projects in the committed or indicative list.

Nonetheless, he said he admires Ang for

pursuing big-ticket projects.

“RSA [Ramon S. Ang] is very bold. He builds plants even without off-take and financial closing. We should have more of his kind,” Petilla said.

The conglomerate is also constructing a 600-MW coal-fired power plant in Barangay Lamao, Limay, Bataan, that will come on stream starting 2016, and a 300MW coal-fired Malita power plant in Davao City in 2017.

It has tapped Formosa Heavy Industries as engineering, procurement and construction contractor of both the Bataan and Davao power projects.

Astro del Castillo of First Grade Holdings Inc. said SMC’s future investments are expected. “Mr. Ang is known to still be on an expansion mode. Not really a surprise. Such investment is timely given the opportunities in energy,”he said when sought for comment.

SMC also forayed into power distribution by taking over the operations of the Albay Electric Cooperative (Aleco).

“We are in the process of building and replacing a major equipment, including transformers, lines and switches. Hopefully, it will all be finished next year,” Ang said.

SMC Global Power won the bid to take over the management of Aleco for 35 years. It will not own Aleco but merely“run and shoulder the debt and pay monthly concession fees.”

SMC Global Power had said it was shelling out P350 million in separation payments to affected Aleco workers. Also, some P250 million was earmarked for capital expenditure. Meanwhile, Aleco’s debt exposure to SMC Global amounts to P600 million.

SMC is also pursuing a team up with K-Water Resources Corp. of Korea for the 218-MW Angat hydropower plant project in Bulacan. “Hopefully, within 30 days, the partnership with K-Water will be affirmed,” Ang said.

Ang had said SMC and First Gen Corp. are going to be the local partners of K-Water. Together, they will take up 60 percent of a special purpose company that is yet to be formed with K-Water. The remaining 40 percent will be held by K-Water.

When asked for an update on SMC’s possible joint venture with the Lopezowned First Gen, Ang said: “We still have to go back to K-Water for clearance. The first step is to materialize the agreement with K-Water.”

On SMC Global’s planned initial public offering, Ang also said the company is not in a hurry to list its shares in the local bourse.