Contents
Business Review
www.eccp.com
December - January 2012
Volume XXVIII No. 1
Renewable Energy Development: Who is in charge?
4
editorial
Renewable Energy and Energy Efficiency along the Value Chain
Luncheon Meeting with Transport Sec. Mar Roxas
Meeting with Customs Comm. Biazon on Customs Brokers
Sunrise Industry: Retirement, Building Communities/Addressing Lifestyle Expectations
6 CHAMBERS@WORK
ECCP Dialogue with European Ambassadors
EU Policy Dialogue on Energy
Building Your Brand in Asia: Asian Consumer Trends 2012
Moving Forward with Renewable Energy: Opportunities and Challenges
Market Access Team
7 2
December 2011
15 FEATURE
Renewable Energy Development: Who is in charge?
22 MEMBERS’ CORNER
Making Coffee Growing Economically Viable
15 BUSINESS REVIEW
About CHAMP Cargosystems
Revisit the Grand Dame, Relieve the history
25 SMART CEBU
SMART Cebu Project wins SWITCHAsia Project Award Southeast Asia.
26 EVENTS
I Run For Integrity Towards A New Philippines- Cebu Leg
Football and Fashion
28 IMPRESSUM
27
Editorial
Renewable Energy and Energy Efficiency along the Value Chain By: Gerry Constantino
T
wo years ago, in 2010, ECCP launched the Energy SMART program as its energy efficiency initiative with the strong support of its member companies engaged in the energy sector. Since 2010, more attention has been given by legislators with the drafting of several Senate and House bills that focus on providing a basis for a policy and regulatory environment that will promote energy efficiency through the value chain of the power sector. For years, the issue focused on the impending power crisis in the country that threatens to cause major power outages and brownouts especially in many parts of the Visayas and Mindanao. The main challenge was how to improve the business environment for attracting investment in the energy sector .
cost of energy will continue to rise unless we tackle the matter of energy efficiency on the whole value chain of the power sector. High power costs arise mainly from inefficiencies passed on to consumers from the power generators and the transmission/distribution sectors. There are a lot of issues involved on the matter of improving efficiency at the power plant and transmission/distribution levels. There are also policy and regulatory issues that make it difficult for energy efficiency to be promoted at these levels. ECCP is now expanding the scope of its energy efficiency initiative to cover the promotion of energy efficiency in the whole value chain of the power sector. As problems are identified at every level, opportunities also arise for stakeholders involved in the energy efficiency business.
Solving the power crisis has been addressed partially by managing energy demand through the implementation of energy efficiency and conservation programs. For the past two years, we have seen programs launched by ECCP (Energy Smart), the International Finance Corporation (Sustainable Energy Finance), the European Commission through its Switch Asia Program (SMART Cebu, Green Philippines), private and government banks (BPI, BDO, DBP, Landbank, etc.), among others, to encourage and help companies look at ways to cut operational costs through energy efficiency and conservation, resource efficiency and even cleaner production.
We need to tackle the problems and to find cost effective solutions in order to make power plants more efficient and to significantly systems loss as ariseing from the transmission and distributions systems. We need to see what technologies and processes are available that will make the whole value chain more energy efficient.
While major achievements have been made by enterprises on the side of energy efficiency, the
The bills filed by Senators Angara, and Defensor, Representative Yap and a draft bill prepared by
4
December 2011
Another dimension is the rising cost of fuel needed to operate power plants. Are there cheaper and cleaner alternative fuels? We have heard of cleaner fuels as well as renewable sources. It is essential now to see what role these can play in addressing today’s rising cost of energy.
BUSINESS REVIEW
the DOE provides clues on what role the government wants to play in improving energy efficiency along the value chain of the power sector. While ECCP welcomes this special attention given by legislators to the importance of energy efficiency, the Chamber hopes to see a sense of urgency within government in promoting energy efficiency and use of renewable energy. The bills basically addressed the problems at all stages of the value chain. What needs to be done now is to look more closely at the merits of each bill and to align the provisions of the bills into an integrated and comprehensive draft that would address the need for a policy environment that will encourage players at every stage of the value chain to seriously consider implementing energy efficiency programs while providing for a technical as well as financial support system for helping players implement their programs. We are looking at this legislative support at both the national and local government levels. The mindset of both parties needs to be aligned to come up with a harmonized and effective policy environment in support of energy efficiency. ECCP has led this advocacy since 2010 and is now working on this new framework for addressing concerns in the whole value chain of the power sector. We are bringing together players and resource persons to look closely at all the issues at each level. The results of consolidation will be presented in the upcoming 3rd Philippine Energy Efficiency Forum on July 2012.
Feature
Renewable Energy Development:
Who is in charge?
By Art Villasanta
A
s a litmus test of Private-Public Partnership (PPP)—that concept in which the private sector drives and the government enables—the quest to grow the renewable energy sector is increasingly taking on a blood red color. The reddening denotes that the substance being tested (renewable energy investments in this case) is turning acidic, or too bitter to the taste of investors. In the case of the companies that invested heavily in the renewable energy sector, this litmus test result also shows that red will be the color of their bottom line in years to come. Pioneer renewable energy developers who took part in the “Renewable Energy Forum” last Dec. 7 expressed concern about future for renewable energy is that old gremlin called government waffling, as the government is simply not enabling renewable energy development in the country. Too many government officials appear to be involved but clearly nobody is in charge. The forum, organized by the European Chamber of Commerce of the Philippines (ECCP), brought together renewable energy investors, users and financiers to discuss opportunities and challenges, and share best practices among stakeholders in the renewable energy sector.
It consisted of four panel discussions covering renewable energy (RE) from the perspectives of end-users, developers and project financing. The keynote was given by Sen. Edgardo Angara, Chairman of the Congressional Commission on Science & Technology and Engineering (COMSTE). Angara described the Philippines’ $3 billion RE potential as “stupendous” and the FIT (Feed-in Tariff) law regulation as “fantastic” but said the absence of an “impatient directing hand” at the top was stifling these advantages. He chided the government’s fiscal authorities and the DTI for impeding the growth of RE by their “obsessive attitude” in avoiding tax leaks, thereby denying RE developers the incentives they need to survive. “The only one that can move them (the fiscal authorities) is their boss,” Angara said. “In this government, the attitude is - you do your thing and I do my thing.” Where is FIT? Among stakeholders, the developers or investors were most vocal about the serious injury government indecision continues to wreak on their RE projects and other potential investors.
BUSINESS REVIEW
December 2011
15
Member’s Corner
REVISIT THE GRAND DAME, RELIVE THE HISTORY
T
he year was 1912 when the grand edifice of Manila Hotel was built and the first five-star hotel in the country was born. Soon after, many dubbed the hotel as the Showcase of the Philippines and Address of Prestige. For decades, prominent figures milled around in the Grand Dame’s ethereal lobby, from heads of state and movie stars to royalty. Its roster of illustrious guests includes Gen. Douglas MacArthur, US Presidents Lyndon Jonson, Richard Nixon and Bill Clinton, their Royal Highnesses Edward and Charles Princes of Wales, Ernest Hemingway, The Beatles and Michael Jackson. In time for its grand centennial celebration on October 6, 2012, Manila Hotel underwent a series of dramatic renovations while maintaining its distinct classic interiors and ambience of comfort and exclusivity enjoyed by guests of centuries past. All of Manila Hotel’s rooms are fully refurbished and renovated and are fully equipped with the most modern facilities and amenities. The new guest rooms exude elegance and sophistication while showcasing the beauty of authentic Philippine interior design. The rooms are further made surreal by huge windows that provide a breathtaking view of the bay and the fabled Manila sunset. The famous Café Ilang-Ilang was also renovated and was launched as a
24
December 2011
three-period meal buffet restaurant. It boasts of nine live cooking stations and features a wide array of local and international cuisines. The buffet restaurant also opens to the newly renovated Pool and Garden area with reconfigured and re-engineered pool and brand new state-of-the-art pumps and filter system. Other new features include a sun deck that beckons guests to relax on its comfortable Dedon Orbit lounge chairs for hours and a newly-refurbished wet bar. Apart from all these, also located by the bay is the Manila Hotel Spa which offers a five-star relaxation experience to its guests. And to complete their rejuvenation and wellness interests, next to the spa is the Manila Hotel Health Club. Manila Hotel’s newly opened gym features state-of-the-art and high technology Life Fitness Elevation series machines and all of these come with touch screen LCD, iPod control and a virtual trainer. The Manila Hotel Health Club also has its own dry sauna, steam room and Jacuzzi. “It’s a good story if it’s like Manila Hotel,” Ernest Hemingway once said. With Manila Hotel’s commitment to maintain the elegance of its history while constantly striving to exceed the expectations of its modern clientele, indeed, the story just keeps getting better and better. For inquiries and more information, please call (02) 527-0011 or visit www. manila-hotel.com.ph
BUSINESS REVIEW
Events
I Run For Integrity Towards A New Philippines- Cebu Leg
T
he European Chamber of Commerce of the Philippines (ECCP) calls on the private sector to join them in a Run towards a New PhilippinesA country that is fighting corruption and values Integrity.
On February 5, 2012, starting at the Ayala Center Cebu Terraces, a symbolic run will unfold as people will take a stand and proclaim that anti-corruption starts with me through I Run For Integrity- Cebu Leg
A historical running event and a bold move by the private sector
A CALL FOR THE WHOLE NATION to FIgHT CORRupTION
P250.00
ORGANIZED BY:
RegistRation Fee FoR all categoRies Includes: Race Packet
(Singlet, bib, information brochure)
The I Run for Integrity is in support of the ECCP’s Integrity Initiative that calls on all businesses and organizations to sign an Integrity Pledge that aims to help the Philippines escape from the vicious cycle of corruption andcreate a level playing field for business. This movement’s inspiration is to eradicate corruption in the Philippines because “corruption steals from the poor.”
Post-Event Pack
(Certificate and items from sponsors and medal for winners)
Under the initiative, the I Run for Integrity was first launched last 29 May 2011 in Manila and gathered more than 5,000 runners and participated by leading personalities from government agencies and companies. ECCP wishes to continue in spreading the message of Integrity in Cebu and invites everyone to be part of this historical event. Mechanics: Register, Pay & Pick-up your race packets at any of the following registration sites : ECCP office, 3/F C.L. Center, 14 J. Osmeña St. cor Llorente St., Cebu City Chris Sports Branches: SM City Cebu and Ayala Center Cebu Entry fee is P250 for all categories, which includes the Race Packet (Singlet, Bib, Information Brochure), Post-Event Pack (Finisher Certificate, Items from sponsors) & Medal for all the winners of 3k, 6k, 12k winners. For more details on the registration and sponsorship: Contact ECCP Events Officer Ms. Cahea Ang at (032) 254-3765 or 67 or email cahea@eccp.com.
Platinum SPonSorS
Gold SPonSorS
Front
Back
media PartnerS
REGISTRATION CENTERS ECCP Office
3/F, C.L. Center, 14 Juana Osmeña St. cor Llorente St., Cebu City
(Across Mango Square and Asia United Bank),
Tel. No: (032) 254-3765 or 67
• •
2nd Floor, Ayala Center Cebu, Tel. No. (032) 231-8793 Upper Ground Floor, SM City Cebu, Tel. No. (032) 232-1497
Category
Race Bib Number Series
3K
1001-1300
6K
501-850
12K
1-350
Cash prizes and more surprises await the winners! Initiative, please visit www.eccp.com and www.integrityinitiative.com For more details about the I run for Integrity-Cebu Leg and the Integrity cp.com Ang/ Lemuel Moncada or email cahea@eccp.com or jose.moncada@ec For further inquiries call (032) 254-3765 or 67 and look for Cahea
For further inquiries call (032) 254-3765 or 67 and look for Cahea Ang/ Lemuel Moncada or email cahea@eccp.com or jose.moncada@ec cp.com For more details about the I run for Integrity-Cebu Leg and the Integrity Initiative, please visit www.eccp.com and www.integrityinitiative.com
Cash prizes and more surprises await the winners!
Tel. No: (032) 254-3765 or 67 (Across Mango Square and Asia United Bank),
cor Llorente St., Cebu City 3/F, C.L. Center, 14 Juana Osmeña St.
ECCP Office
•
Tel. No. (032) 232-1497 Upper Ground Floor, SM City Cebu,
•
Tel. No. (032) 231-8793 2nd Floor, Ayala Center Cebu,
12K
1-350
6K
501-850
3K
1001-1300
Category
Race Bib Number Series
REGISTRATION CENTERS
media PartnerS
Platinum SPonSorS
26
December 2011
BUSINESS REVIEW
Gold SPonSorS
Front
Back
Events
Football and Fashion
BUSINESS REVIEW
December 2011
27
Impressum
Business Review Published by European Chamber of Commerce of the Philippines (ECCP) Main office: 19/F Philippine AXA Life Centre Corner Sen. Gil Puyat Ave. and Tindalo St., Makati City, Philippines Tel: (02) 845 1324, 759 6680 Fax: (02) 845 1395, 759 6690 Cebu branch: 3/F C. L. Center 14 Juana Osmeña St., Cebu City, Philippines Tel: (032) 253 3389 254 3765 254 3767 Fax: (032) 253 3387 E-mail: info@eccp.com ECCP is on the World Wide Web at: http://www.eccp.com
14
Submissions Articles and other materials of interest to the general membership are actively solicited and may be sent to the Chamber All materials submitted for publication become the Chamber’s property and are subject to editorial review and revisions.
reasons why you should join the ECCP
1.
Business support – Receive comprehensive and effective business support from industry and support committees and a team of dedicated government relations staff.
2.
Business advocacy – Take advantage of the chamber’s more than 30year track record in successfully addressing business issues with the Philippine government – both national and local.
3.
28
ECCP Board of Directors Hubert d’Aboville - President Erik Moeller Nielsen - Vice President Michael Raeuber - Vice President Cyril Rocke - Treasurer Edgar Chua - Director Anthony Cripps - Director Richard Eldridge - Director Consuelo Garcia - Director Rico Gonzales - Director Guenter Matschuck - Director John Miller - Director Bernard Poplimont - Director Jose Luis Romero-Salas - Director Ernst Wanten - Director
Networking & business opportunities – Meet and exchange views with some 700 local and foreign senior business executives that are active in various business and social activities each year, in Manila and Cebu.
www.eccp.com
Honorary Auditors KPMG Manabat Sanagustin & Co. Reproduction No part of the Business Review may be reproduced or transmitted in any form or by any means, electronic or mechanical without prior written permission. Circulation 1,000 copies of the Business Review are distributed free of charge on a bi-monthly basis to ECCP members, friends of ECCP, as well as to industry associations and government officials with whom the Chamber has dealings. Subscription service Subscriptions from non-members are also accepted: in the Philippines: Pesos 1,500 (6 issues); Individual copies may be purchased locally at Pesos 220 (members) and Pesos 250 (non-members); and for companies outside the Philippines at US$25.00.
communication, business continuity, soft skills, HR management, and quality management. We also provide local and international coaches. 8.
Business promotion – Promote your business to a targeted audience of senior business executives through the introduction of potential business partners, sponsorship of high-profile events, and promotion through the chamber’s publications and websites.
9.
Trade fair participation – through its affiliate fairs&more, the chamber offers a wide range of trade fair services, from booth / pavilion design to stand construction, from marketing collaterals to pavilion management, from product selection to design support – in Asia, Europe, the Middle East and the United States.
10. Social & community activities – Enjoy high-quality social and sports events, organized and managed by the chamber, for members and third parties, including golf events, soccer tournaments, fashion shows or wine tasting. 11. Corporate Social Responsibility – Be part of the chamber’s CSR activities, from ‘English is Cool’ to ‘Retirement & Healthcare’, from ‘OneFilipino.Net’ to the promotion of creative industries.
4.
Government relations – Interact with senior government officials of relevant departments at meetings, round tables, and social events.
5.
Relevant, up-to-date market information – Receive frequent updates and analysis on the business and regulatory environment through e-mail, eccp@work, and the Business Review.
6.
Alternative conflict resolutions – Make use of our network of partners in resolving disputes without going to court.
13. Special member services – Make use of our special services in visa and work permit support through our close working relationship with the Bureau of Immigration.
7.
Training – Attend tailor-fit seminars and training courses with worldrenowned experts covering areas such as leadership, management, project management, negotiation and presentation skills, cross-culture
14. Consulting services – Consult with experts for advice concerning the selection of partners and on handling specific business issues vis-à-vis the government.
December 2011
12. European Chamber network – Tap into the expertise and experience of European Chambers and European Business Organizations in surrounding markets and around the world.
BUSINESS REVIEW