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UP named 27 personnel as UP Artists

Roy — Fri, 12 Mar 2010 13:45:20 +0000

The University of the Philippines (UP) recognized the works of its 27 artists and art scholars who brought honors to the UP and have contributed to the national development. They were elevated to the rank of UP Artist last month in an awarding ceremony held at the Executive House in UP Diliman.

The university established UP Arts Productivity System (APS) to honor and support its distinguished and productive artists. The 27 awardees were the first ones to be recognized under the said system. APS was conceived as art counterpart of the UP Scientific Productivity System (SPS), UP’s upgraded version of the government’s Scientific Career System.

The artists’ were categorized as Artist I, Artist II and Artist III.

Named Artist III for literature were Jose Dalisay Jr., and National Artist for Literature Virgilio Almario. Josefino Chino Toledo received the same recognition for music while Nicanor Tiongson was recognized for his contribution in arts scholarship, film and theater.

Awardees for Artist II were Janet Sabas-Aracama for music; Josefina Estrella for theater; Leonilo Doloricon for visual arts; Eugene Evasco for literature, arts scholarship and theater’ Patrick Flores, arts scholarship; Jose Neil Garcia, literature and arts scholarship; Cristina Pantoja Hidalgo, literature and arts scholarship; Gerardo Rey Lico, visual arts, architecture and arts scholarship; Rolando Tolentino (literature and arts scholarship); Rosario Torres-Yu, literature and arts scholarship; and Basilio Esteban Villaruz dance and arts scholarship.

For Artist III, awardees were Ramon Maria Acoymo, music; Fernando Austria, TV, radio and other media, and theater; Grace Javier Alfonso, arts scholarship, film, TV and other media; Jonas Baes, music; Yason Banal, visual arts; Ruben Defeo, arts scholarship; Alexander Cortez, theater; Ricardo de Ungria, literature, Raymundo Maigue, music; Cesar Hernando, visual arts, film, TV and other media; Raul Navarro, music; and Victor Emmanuel Nadera, literature.

Most of the awardees are based in UP Diliman, except for two who are based in UP Mindanao and UP Open University.

In the said awarding system, a set of rigorous standards were used by the university to evaluate its UP faculty members and research staff. As such, the recognition is conferred by the school only to those it deem most deserving.

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Cebu Pacific to conduct IPO

Roy — Tue, 09 Mar 2010 14:03:32 +0000

Cebu Pacific has announced last Monday of its plan to sell new shares to the public to raise funds of about P12 billion. The announcement was made by Cebu Air Inc., the company that operates the Cebu Pacific Airline.

The company said it planned to list 125.25 million new common shares through an initial public offering (IPO). The new shares are valued at close to P12 billion, with the maximum offer price set to P95 each by the company. It was actually in 2008 when Cebu Pacific planned to go public, but decided to postpone it then because of the jittery market conditions at the time.

Aside from its planned IPO, Cebu Air also said it asked the Securities and Exchange Commission to approve their listing for additional 110 million existing shares at the same price. The company said it wants to list the 35.33 million shares owned by Cebu Pacific’s parent company JG Summit Holdings Inc. “subject to the over-allotment option granted to the stabilizing agent under the same terms and conditions as the primary and secondary offer.”

In addition, as part of the company’s employee stock option plan, an additional 18.4 million shares will also be listed at a 25-percent discount to the IPO price.

Cebu Pacific said that the company would offer the shares primarily to international institutional investors, even though it would be listed on the local bourse. JG Summit vice president for finance Bach Johan Sebastian justified the move by saying, “There is not enough capital available in the country for an offer of this size.”

Sebastian said the figures were only indicative and did not necessarily mean that this would be the exact amount the company wanted to raise. “We just had to put a nominal value in our request, but that does not mean that we are targeting to raise that amount,” he said.

There is still no stated date as to when the company plan to conduct its IPO. The proceeds of the IPO would be used by the company for its continuing expansion plans.

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ICTSI to issue $250 million 10-year bond

Roy — Tue, 09 Mar 2010 05:20:57 +0000

International Container Terminal Services, Inc. (ICTSI) is venturing into the overseas bond market. The port operator will be seen in the next few days offering as much as $250 million worth of 10-year bonds. ICTSI would be the first non-bank Philippine corporate issuer to offer the overseas bond market.

To arrange its maiden overseas debut, ICTSI tapped the services of foreign banks HSBC and JP Morgan. It has already started the fund-raising with an investors briefing in Manila recently. Top officials and bank arrangers are set to hold another road show in Hong Kong and Singapore.

The reception for the overseas bonds were said to be warm, so much so that they were oversubscribed during the Manila leg of the road show. The company will issue the bonds shortly after the Asian road show.

ICTSI will use the funds raised from the bond issue to fund the construction of existing and new terminals and pay debts.

The new securities will not be registered by the company in the United States nor in the Philippines. Instead, ICTSI plans to list the bonds on the Singapore Securities Trading Ltd.

Incorporated in 1987, ICTSI which is led by businessmen Enrique Razon Jr., was established to operate, manage and develop the Manila International Container Terminal (MICT), which handles international container cargo at the Port of Manila.

The company, and its subsidiaries, provides cargo handling and related services to container, storage facilities and services, and roll-on roll-off (Ro-Ro) and anchorage services to non-containerized cargo or general cargo.

Aside from MICT, the company also runs the Mindanao Container Terminal in Misamis Oriental, the Makar Wharf in General Santos, the Cubi Point at the Subic Bay Freeport Zone in Zambales, and Sasa International Port in Davao City.

ICTSI, and its subsidiaries, also operates in Brazil, Poland, Madagascar, Japan, Indonesia, Syria, China, Ecuador, Colombia, Georgia, Brunei and Argentina.

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Visa-free entry prvilege for foreign investors of Subic and Clark

Roy — Mon, 08 Mar 2010 15:05:23 +0000

The Bureau of Immigration (BI) announced that as an added incentive, foreign investors visiting the Freeport zones in the country – Clark, Pampanga and Subic, Zambalez, can avail of the government’s “visa-free” program.

An agreement was signed recently by BI Commissioner Marcelino Libanan with Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza and Clark Development Corp. (CDC) president Benigno Ricafort on the issuance of the visa-free entry privileges to foreign investors who are visiting the two freeports.

The agreement signed provides for the officers and personnel of a foreign locator in the two freeports to be allowed to enter and stay in the Philippines without a visa for a period of 14 days. The said privilege however, will be extended only to those who are arriving through the Diosdado Macapagal International Airport (DMIA) or the Subic Bay International Airport (SBIA).

“The agreement provides that the foreign locator shall vouch for their officers and personnel coming here and shall notify the SBMA chair of CDC president who shall approve the grant of the visa-free entry privilege,” the Bureau of Immigration said.

Together with the “visa-free” entry privilege, officers and personnel of foreign location can also apply with the BI for a landed visa. This visa would allow them to travel to other areas in the Philippines for the purpose of exploring investment opportunities outside the Freeport zones.

This privilege being given by the BI for foreign locators of Subic and Clark is part of the agency’s thrust in attracting more tourists and investors in the country.

For his part, Arreza agree that this will help attract more foreign investors to do business in Subic and Clark, and other parts of the country. It would also send signal to other foreign investors that the government is serious in courting more foreign investment that will create more jobs and improve the economy of the Philippines.

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BPI Family Bank to offer loans to microenterprises

Roy — Sun, 07 Mar 2010 15:35:22 +0000

The thrift bank subsidiary of the Bank of the Philippine Islands, BPI Family Savings Bank, is going to roll out a credit facility that will cater to the micro and small enterprises. This plan of BPI Family to increase its loan exposure will be done through a customized business packaged which it will roll out in partnership with Philippine Center for Entrepreneurship, the proponent of the Go Negosyo campaign.

This is part of the BPI Family to break into the broader market, with the hope that eventually, it will be able to generate half of its business from lending to the small and medium enterprise (SME) and consumer sectors.

Its mother company, the BPI, has about P130 billion or 39 percent of its total loan portfolio devoted to these sectors at present, according to BPI president Aurelio Montinola III.

For its thrift bank’s program, which is called the BI Family Ka-Negosyo business program, the bank will offer a comprehensive line of loan products and services which are all anchored on business loans customized according to the client’s financing requirement and budget.

Jose Ma. Concepcion III, funding trustee of Go Negosyo, said that his organization will be helping in hooking up BPI Family with potential borrowers through its seminars and caravans.

For his part, BPI Family Bank president Alfonso Salcedo Jr., said that under the program, the bank would be looking at micro and small enterprises with a good track record and in need of at least P500,000 and up to P10 million in funds for its expansion.

The terms of the loan would be typically be three-to-five years with an annual interest of between 9 and 12 percent. But this will all depend on the loan size and collateral, said Salcedo. For the sake of classification, the BPI group defines a microenterprise as a company with assets of less than P3 million.

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Mediaquest alloting P700 million for its capex this year

Roy — Sat, 06 Mar 2010 05:06:53 +0000

Mediaquest Holdings Inc. is allotting around P700 million for its capital expenditure this year. The media unit of Philippine Long Distance Telephone Co. is earmarking the said amount for its satellite TV business year to increase its subscriber base to 200,000.

At the end of 2009, Cignal Digital TV, Mediaquest’s direct-to-home satellite television has 45,000 subscribers nationwide, barely five months of operation from its official launch in July last year. The number of Cignal subscribers is expected to surge this year, said Mediaquest director Ray Espinosa, following the company’s success of its satellite TV business.

Cignal is the latest subscription-based direct-to-home satellite television service provider using the NSS-11 satellite of New Skies Satellite. It comes in Cignal HD (high definition) and Cignal Digital TV. It was on a test broadcast since January of 2009 in Bulacan, Rizal, Cavite and Laguna and has 3,000 subscribers who signed up then.

The Cignal Basic package is available for a one-time fee of P4,700 for set top box, satellite dish and cables and Cignal card, and installation fee of P1,000 and a monthly service charge of P390. It has 20 standard definition channels which include free-to-air local channels ABS-CBN, TV5, NBN 4, GMA, CS9, QTV, IBC 13, Studio 23, 2nd Avenue, Etc, and Net 25, and the premium channels HBO, Disney Channel, Cartoon Network, CNN, PBO, Viva Cinema, AXN, and BIO. RHTV (dzRH Television). Aside from the TV channels, radio channels from the FM band are also available to Cignal Digital TV subscribers.

The Cignal Combo package is available for a one-time fee of P4,800, an installation fee of P1,000 and a monthly service fee of P790. It includes three high-definition channels plus the Cignal Basic. The Cignal HD, on the other hand, offers three high-definition channels – Voom, History Channel and Playhouse Disney.

Espinosa said they are not competing with cable TV companies because their target markets are those in the remote areas.

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Clark airport expands Terminal 1

Roy — Fri, 05 Mar 2010 15:07:13 +0000

At the Diosdado Macapagal International Airport (DMIA), the construction of the P308-million expansion of the existing terminal is in full blast and it is expected to be operation next month. According to Victor Jose Luciano, president and chief executive officer of Clark International Airport Corp. (CIAC), the newly expanded Terminal 1 will feature two passenger boarding bridges for the added convenience of passengers.

“We expect this to be operational in April and we will invite President Gloria Macapagal-Arroyo to lead the inauguration of the new expanded terminal on her birthday, April 5,” he said. The two passenger boarding bridges are expected to arrive at the Clark Civil Aviation Complex in Clark Freeport Zone by the end of this month.

The expanded terminal will have a bigger space for commercial concessionaires and a larger lounge for passengers. It will accommodate an additional 500,000 passengers annually, on top of the current capacity of 2 million passengers.

The expansion will convert the DMIA Terminal 1 into a two-story building with the boarding bridges, flight information display, closed-circuit television camera, background music, public address system, x-ray machines, escalators and elevators.

The DMIA increased its passenger volume last year at an average of 14 percent, with passenger figures breaching the 600,000 mark. That, in spite of the slump in the aviation industry last year, not only in the Asian region but globally.

According to Luciano, more airlines are expected to start operations at the DMIA following completion of the terminal expansion of which the new facilities will add to the convenience of travelers.

The airline companies operating at the DMIA at present are Asiana Airlines of South Korea that flies to Incheon; the Philippines’ Cebu Pacific Air that services Bangkok, Singapore, Macau and Hong Kong; Air Asia Berhad of Malaysia which flies to Kota Kinabalu and Kuala Lumpur; Singapore’s Tiger Airways with daily flights to Singapore; the Spirit of Manila that flies to Taipei; and the Southeast Asian Airlines that flies to Caticlan for travelers who are going to the island resort of Boracay.

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Ayala Land to develop a 2-hectare BPO hub in Iloilo

Roy — Thu, 04 Mar 2010 17:13:47 +0000

The property development of the Ayala group will be building a new call center area in the south. The Ayala Land Inc. (ALI) is planning to transform a 2-hectare property in Iloilo City into a business process outsourcing (BPO) hub. The project would consist of 3 BPO facilities with a total of 19,000 square meters of gross leasable area.

The company said in its disclosure report to the Philippine Stock Exchange that it signed a 35-year lease agreement with Teodoro B. Pison, Josefina B. Pison-Ortiz, and Riverside Boardwalk Properties Inc. for the development of the 2-hectare property which is located at Riverside Boardwalk, Barangay San Rafael Madurriao in Iloilo City.

Initially, the project would involve the construction of the first building with approximately 9,500 square meters of GLA and an estimated project cost of P305 million. The construction will start on the second quarter of 2010 and it is expected to be completed by the first quarter of 2011.

Iloilo City was included in the list of cities identified as “next wave cities” by the Business Process Association of the Philippines because it has an attractive power, telecommunications, commercial sea and airport infrastructure. The city also offers one of the lowest rental, power and average base pay rates in the Philippines.

Ayala officials said, “Ayala Land’s project will be the biggest BPO development in Iloilo to date and is consistent with the company’s goal of expanding into, developing and redeveloping strategic areas with attractive growth centers across the country in order to deliver on the expectations of its customers and shareholders.”

For 2010, the property giant has earmarked P27.2 billion for its capital expenditures. At present, it has lined up 32 projects which include shopping malls, residential condominiums, hotels and office buildings.

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DFA to transfer to “intelligent building” starting March 4

Roy — Mon, 01 Mar 2010 13:04:07 +0000

The Department of Foreign Affairs (DFA) will be transferring at the new state-of-the-art consular buildings at Aseana Business Park on Macapagal Avenue in Pasay City starting on March 4. It will first transfer the authentication services on the said date, while all other passport operations will be there too starting March 8.

Applicants for Philippine passports will then have to get them at there as the DFA have already started transferring its consular operation to the new 7,000 square meter, four-story building which is a few blocks from the DFA main building on Roxas Boulevard. The new building, which is called an “intelligent building,” is part of the modernization program being undertaken by Foreign Secretary Alberto G. Romulo.

The facility is equipped with fiber optic lines, CCTV cameras and other high-tech information and communication infrastructure. Romulo said the Office of Consular Affairs building will set the new standard among government front-line offices, providing the public with fast, efficient and comfortable service. “It is part of our dream for the Filipino people to have world-class passport and consular services,” he said.

Romulo said that passport applicants could shorten their waiting time by accessing the DFA’s online appointment system, while those who go there for consular applications would now only have to go to the second floor.

He also advised concerned parties to check passport requirements and at the same time secure an online appointment at the agency’s website at www.dfa.gov.ph to ensure quick and comfortable service. They may also call the consular help-line number at 02-5560000 or the DFA tel. no. which is 02-8344000. Applicants may also go to the DFA’s 19 regional consular and satellite offices to file their applications.

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Pag-IBIG plans to bring back Biglang Bahay Bonds

Roy — Mon, 01 Mar 2010 02:45:06 +0000

During the Marcos-era, the Home Development Mutual Fund (HDMF), also known Pag-IBIG Fund run a house-and-lot raffle program called the Biglang Bonds. Now, the state-administered funds manager is planning to revive the said scheme after launching its planned P12-billion bond offering last week.

HDMF chief executive officer Jaime Fabiaña said that under the plan, the agency would sell non-interest bearing bonds and use part of the proceeds to fund a daily house-and-lot raffle worth P1 million. This would run for a period of one year, and bearers of the bonds are all eligible for the raffle. “We’re studying this most likely, we will do this in the third quarter,” Fabiaña said.

The agency did not disclose any details yet as to the amount, but the plan is already proposed to the board and the details are being studied. HDMF is constantly looking for ways to augment the agency’s funds and provide more people easier access to housing.

Starting on March 9, Pag-IBIG would be selling P12 billion in five-year bonds through public auction. The proceeds of the sale would be used to refinance P7 billion in debts maturing in May and the rest would be used to augment the agency’s funds.

Fabiaña believes that the bonds would be able to attract investors because they are tax-free and enjoy the full and unconditional guarantee of the government through the Home Guaranty Corp. Target investors are banks, property developers and insurance firms.

The bonds would have a maturity date of five years and one day, and also serve as alternative compliance by banks with the Agri-Agra Law and counts as reserve assets of insurance companies and compliance with the Urban Housing Development Act.

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Beverage company received environment compliance award

Roy — Sun, 28 Feb 2010 15:24:37 +0000

The Laguna Lake Development Authority (LLDA) was awarded Asiawide Refreshments Corp. (ARC), the licensed manufacturer and distributor of RC, the blue rating award. The recognition given to the company for its successful compliance with the environmental standards set by the LLDA.

The blue rating award is a system used by LLDA to monitor the environmental performance of local government units and industrial/commercial enterprises, through its public disclosure program. ARC, who have bestowed the said award for two consecutive years, is the only carbonated softdrink manufacturer who received the said recognition.

The LLDA program aims to reduce air and water pollution from industries. A blue or green (the highest) rating is an indication that the company meets, or even surpasses, the agency’s standard. Companies who fall short of the standard, or whose environmental efforts are inadequate or totally nil, are given a red or black rating.

ARC was to have been doing a lot of green projects for a long time now, they have supported initiatives such tree planting. “Since 2002, when we were first building the plant, we already took that in consideration of the overall design. We completed it in 2003. As our market share grew and our production volume increased, our efforts with LLDA compliance became more intense. That’s when they saw that we we’re complying,” said Butch Aves, VP-manufacturing/technical services of ARC.

The company earned the recognition for its waste water management which is in compliance with LLDA’s Environmental User Fee System with Wastewater Charge System of the Department of Environment and Natural Resources under the Philippine Clean Water Act of 2004.

Aves said that the company plant, located in Antipolo, discharges water into a stream, which inevitably flows into Laguna Lake. But the company’s treatment facility exceeds even the standards set by LLDA. The current standard is 50 mg/liter while ARC’s plant has a concentration of 35 mg/liter.

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Local banks help raised P14B for Panay power plant

Roy — Sat, 27 Feb 2010 07:56:18 +0000

Local banks have agreed to help raise and lend the Panay Energy Development Corp. (PEDC) P14-billion for its construction of a 164-megawatt coal-fired power plant in La Paz, Iloilo City. The Panay Energy is owned by George Ty’s Metrobank group, and the loans were arranged by First Metro Investment Corp. (FMIC), the investment banking arm of Metrobank.

The deal is the second-biggest peso-denominated project loan facility to be purely funded by local institutions. The biggest was the P16-billion deal raised by Cebu Energy Development Corp., another Metrobank affiliate, for its power plant in Toledo City, Cebu.

FMIC was able to get the commitment of local banks for a 12-year loan to PEDC. These banks include Allied Banking Corp., Bank of the Philippine Islands, China Banking Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine National Bank, Philippine American Life and General Insurance Co., Rizal Commercial Banking Corp. and the Union Bank of the Philippines. The loans represent about 70 percent of the funding of the project.

PEDC expects the power plant to be finished and already in operation in six to nine months time, and it will use “clean coal” technology. FMIC president Francisco Sebastian said that once completed, the power plant would make brownouts in the Visayas history as the new facility would account for 80 percent of the existing power generation capacity of the island.

Formosa Heavy Industries will be the one to build the new power plant by PEDC. It will also undertake the engineering design and procurement. The Metrobank group hopes to recover the costs from the project over a 25-year period.

PEDC is a subsidiary of Metrobank group’s Global Business Power Corp. Its president Jesus Alcordo said that despite the fuss over renewable energy, clean coal technology was still much more competitive.

The Metrobank group, at present, is still looking for opportunities in power generation, said chairman Antonio Abaca, adding that they prefer investing in new power plants rather than acquire old ones.

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BIR targets P30 billion from large taxpayers this year

Roy — Fri, 26 Feb 2010 17:10:54 +0000

The Bureau of Internal Revenue (BIR) is targeting to reach P360 billion for its collection this year from the country’s large taxpayers. The figure which is higher that the P339 billion collected last year, represents roughly 60 percent of the agency’s full-year target of P830 billion, said BIR Assistant Commissioner Nesto
Valeroso is optimistic that they would meet this year’s target especially with their enhanced measures against large taxpayers, particularly their better profiling and monitoring of big-ticket companies and projects. The announcement was made during the agency’s launch of its large taxpayers Service (LTS) 2010 Tax Campaign. BIR hopes that this campaign translates to higher collections for them.

LTS, which caters to large corporate clients including the Top 1,000 corporations in the country, has roughly 2,000 clients at present.

These companies are those whose net worth is at least P300 million and who pay an annual income tax and withholding tax of at least P1 million. Their value-added tax (VAT) is at least P100,000 for any given quarter and P1 million in excise tax per taxable year.

With better collections from the LTS group, Valeroso said , there will more funds to finance the government’s programs. “Building the gap between the large taxpayers and the Filipino people who benefits from taxes is our goal,” he said.

In the speech of BIR Commissioner Joel Tan-Torres during the launch which was held at the NBC Tent, Fort Bonifacio, Global City, he expressed confidence that they would meet its full-year collection goal of P830 billion as he noted that the agency has met its monthly targets for the last two consecutive months.

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Filipina won top UK designer award

Roy — Fri, 26 Feb 2010 08:01:26 +0000

A Filipina fashion designer and milliner, actress and musician, won this year’s British Council’s Young Fashion Entrepreneur (YFE) Award. Mich Dulce wowed the judges, not only because of her designs, but also of her use of indigenous materials, like sinamay and abaca.

YFE is a part of the International Young Creative Entrepreneur (IYCE) awards scheme that includes other sectors from the creative industries, which include publishing, design, visual arts, screen (film and TV), communication and interactive.

Dulce is the first Filipino to win the prize and she competed with 10 designers from Bangladesh, India, Libya, Lithuania, Russia, Sri Lanka, Syria and Turkey. Her prize includes a £5,000 grant for a collaborative project with the British Council.

Started with eccentric frocks and dresses, Dulce’s fashion business expanded to hats, headpieces, corsetry and bridal wear. Because of her unique style, she has already been featured on “Young Asian Fashion Designers” by Daab Publishing in Germany.

International honors are not new to Dulce, because in 2007, she was handpicked by Terry Jones, editor-in-chief of i-D magazine as one of the 10 winners in Showstudio.com’s PSP AMAZE contest in London.

A multi-faceted individual, Dulce dabbles in different forms of arts. She has appeared on TV as one of the housemate in the celebrity edition of Pinoy Big Brother in 2006. On the same year, she also appeared in the John en Shirley sitcom starring Dolphy and Maricel Soriano.

Dulce was also the vocalist of the post-riot girl band Death By Tampon and is currently the vocalist of indie pop’s burgeoning powerhouse Us-2, Evil-0.

She took up formal education at the Central Saint Martins and London School of Fashion in the UK, and also the Fashion Institute of Technology in New York. She also worked with designer Cecile Zamora, Marjan Pejoski, Jessica Ogden and Susan Cianciolo as their intern.

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Competing cigarette companies in RP combined

Roy — Thu, 25 Feb 2010 15:40:00 +0000

Philip Morris International, Inc. (PMPI) joined forces with Philippine a cigarette company forming one big corporation that will control about 90 percent of the country’s lucrative cigarette market. The US-based tobacco giant formed a new company with local rival Fortune Tobacco Corp. (FTC), which is owned by Chinese-Filipino tycoon Lucio Tan.

The new company, to be called PMFTC, will be chaired by Tan, while the day to day operations will be managed by Philip Morris. The two companies, PMPI and FTC, did not disclose the monetary value of the deal. Each party will hold an equal interest in the new business.

Philip Morris said, “The Philippines is one of the largest global cigarette markets with an estimated 2009 volume of 85 billion cigarettes. FTC is one of the five largest privately-owned cigarette companies in the world.” President of Philip Morris Asia, Matteo Pellegrini, sees the transaction as “tremendous strategic fit” for their business that will cement the company’s leadership in South East Asia.

FTC competes mainly in the low-end market. Its leading brands are Fortune and Champion, and holds about 60 percent of the Philippine market. Philip Morris, on the other hand, competes with its premium priced brands, including Marlboro which is the world’s No. 1 selling cigarette.

The current employees of Fortune Tobacco numbers around 4,000, while of Philip Morris are around 1,000. There was no announcement if there will be job losses because of the new venture.

Meanwhile, the World Health Organization (WHO) recognizes smoking as the single biggest preventable cause of deaths worldwide.

According to studies made by WHO, as of 2002, there are 60 percent of men and 40 percent of adolescent boys who smoke in the Philippines. The number of smoking-related deaths in the country reached to about 20,000 every year. Also, WHO said that nearly 20 percent of income in the households of Filipino smokers is drained because of tobacco use.

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PNOC back in the geothermal power generation

Roy — Thu, 25 Feb 2010 00:59:04 +0000

The Philippine National Oil Co. (PNOC) was able to bag an exploration contract to develop the Mt. Isarog volcanic chain in Camarines Sur. The PNOC’s $60-million Mt. Isarog geothermal project is estimated to generate 18 gigawatt-hours of electricity per year from its potential capacity of at least 20 megawatts. It will be started in the third quarter of 2010.

It will be connected to the Luzon grid and the power generated will be sold to the local electric cooperatives and industries so household and industrial consumers in the Camarines province, as well as other areas in Luzon, would be able to benefit from it.

PNOC is not new in the geothermal power industry, it was the largest producer of geothermal power in the Philippines before it sold its geothermal subsidiary in 2007 to a Lopez-led consortium. During the negotiations then, PNOC president and chief executive officer Antonio Cailao asked that the “non-compete” clause be stricken off the contract so the government can still engage in geothermal explorations later on, just like what it is doing now.

Cailao said, “I want PNOC to actively participate again in the geothermal business, especially because the Philippines lies in the ‘ring of fire,’ a sweet spot in geothermal energy. It is no wonder that we are number two in the world today. Geothermal energy presently accounts for about 23 percent of the total energy mix in the country. We should continue our proven expertise in this sector of renewable energy.”

The Mt. Isarog exploration project is projected to have a geothermal potential equal to that of the Tiwi geothermal field, because the volcanic chain spans the entire Bicol Peninsula, to Samar and Leyte up to Diwata Range in Mindanao.

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P12-billion bond offering from Pag-IBIG funds

Roy — Wed, 24 Feb 2010 14:43:20 +0000

The Home Development Mutual Fund (HDMF), more popularly recognized as he Pag-IBIG Fund launched a bond offering which will be auctioned to the public on March 9. The state-administered fund manager will be offering P12 billion bonds starting next month.

Jaime Fabiaña, chief executive officer of HDMF said that the proceeds of the funds would be used by the agency in refinancing a P7 billion debt maturing in May. The rest of the proceeds would be used to augment the agency’s funds.

The bond offerings were launched in an investors’ briefing held recently, where Fabiaña said the bonds would be definitely be attractive to investors. “They are tax free and enjoy the full and unconditional guarantee of the government through the Home Guaranty Corp.,” he said.

The term of the bonds would be five years and one day. They can also serve as alternative compliance by banks with the Agri-Agra Law and qualify as reserve assets of insurance companies and can count as compliance with the Urban Housing Development Act.

The target investors for the bonds are property developers, insurance firms and banks. The Development Bank of the Philippines (DBP) and First Metro Investment Corp. (FMIC), which is the investment arm of Metrobank Group, were tapped by HDMF as arrangers for the deal. The Land Bank of the Philippines would join the group as joint lead underwriters, while the Bureau of the Treasury serves as facility agent and registrar.

Pag-IBIG is a popular government agency whose main thrust is to provide affordable home financing to its members. Aside from housing loans, it also provides personal and other emergency loans. For 2009, the fund manager released a total of P46 billion loans to over 74,000 members nationwide, making it the biggest home financier in the Philippines.

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Ayala’s P2.5 billion project in Mindanao

Roy — Sun, 21 Feb 2010 15:20:21 +0000

Ayala Land Inc. (ALI) continues its expansion plan for the year especially in Mindanao. The property giant is constructing an integrated mixed-use complex in Cagayan de Oro, which is estimated to cost at least P2.5 billion.

ALI senior vice president and chief finance officer Jaime E. Ysmael, in a disclosure to the Philippine Stock Exchange (PSE), said that the proposed project is in partnership with Anfilo Management & Investment Corp. and Mindanao Motors Corp. It will rise on a 3.2-hectare property along Claro M. Recto Ave., at the heart of Cagayan de Oro City.

The initial phase of the project would be the development of a shopping mall with approximately 40,000 square meters of gross leasable area. Serving as the centerpiece of the project, the mall will offer basic conveniences addressing the everyday needs of the city, as well the dining, entertainment and retail concepts that will serve immediate communities, tourists and transients. The construction of the shopping mall will begin towards the end of 2010 and is expected to be completed by 2012.

The project will also see the construction of a boutique hotel and an office building catering to the business process outsourcing (BPO) sector.

“With Ayala’s unmatched experience in developing world-class real estate development and the Anflogroup’s strong corporate presence in the area, the project is designed to be an integrated mixed-use development that will change Cagayan de Oro’s urban landscape,” Ysmael said.

According to Ysmael, the said project is the Ayala group’s second partnership with the Anflogroup in Mindanao. The first one was the development of Abreeza Mall in Davao City which is scheduled for opening next year.

The project is part of the company’s plan to further expand its geographic base and launch new business lines and market segments. ALI’s mother company, the Ayala Corp., is one of the country’s largest conglomerates with diversified operations in real estate and hotels, telecommunications, electronics manufacturing, financial services, water distribution, information technology and automotive dealerships.

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Metrobank grants ATI $250M credit line

Roy — Sun, 21 Feb 2010 04:05:26 +0000

The Metropolitan Bank and Trust Company (Metrobank) has awarded the Asian Terminals Inc. (ATI) credit line worth P250 million. The ATI said the proceeds of the funds would be used to fund its projects in the next five years.

ATI, in its disclosure to the Philippine Stock Exchange (PSE), said it signed an agreement with Metrobank for a five-year revolving committed credit line facility. “The facility is intended as a stand-by fund to finance the project of the company in the ensuing years,” ATI said.

A subsidiary of Dubai Port World, ATI holds a 25-year right to operate container terminal A1 for the port of Batangas. Phase 1 of the Batangas port is already being operated by the company, while the movement of cargo through Phase II is being handled by ATI on a temporary basis. The company believes that once it officially takes over the operation of Phase II, it may be able to market the port better to international ship liners.

The Batangas is being groomed to be an alternative port for shipping lines to the Manila harbor, where the country’s bulk of cargoes pass through. ATI said they have already received intentions from several shipping liners to dock at the Batangas port, although they have not received any commitment from any company yet.

Rivaled only in size by ICTSI, ATI is the country’s leading port operators, and it gets bulk of its revenues from the ports it operates overseas. For the period January to September of last year, the company posted a P828 million net income, 36 percent higher than it has for the same period a year earlier. ATI is listed in the PSE, where its share price remains at P4.15 apiece as of the last trading day of last week.

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Infosys BPO company plans opening more sites in the Philippines

Roy — Sat, 20 Feb 2010 03:00:40 +0000

Infosys BPO Ltd. is planning to put up 3 more call center facilities, expanding its presence in the country. The business process outsourcing firm chief operating officer Ritesh Idnani said, “We are very bullish about the Philippines and we will continue to invest in the next few years.”

Idnani said that while their Philippines operations only account for just five to six percent of the company’s entire revenue, they expect it increase to eight to 10 percent in the next 18 to 24 months. The company is also optimistic that it expects its revenues to grow by 100 percent by the end of its fiscal year ending March 2010.

Idnani noted that because of the availability of quality workforce and service areas in the country, the Philippines would remain to be an attractive BPO destination. He added that aside from the area of customer service, but the country is also emerging as a knowledge process outsourcing and legal process outsourcing services.

He is also quick to point out attrition in the country as one of the major challenges of BPO firms. He recommends that BPO agents be registered to monitor proper exits from previous employers. “The top 15 BPO firms must tie up to address attrition,” Idnani said.

Because of its planned expansion, Infosys delivery center head for the Philippines Madhusudan Menon said they would be creating an additional 2,000 jobs this as it eyes new site by the second half of 2010. Areas being considered for their next Philippine site are Quezon City and Clark, Pampanga

The company presently has a 1,100-seat call center facility at Fort Bonifacio, Taguig where it has 650 employees. This would be expanded to include 3,000 seats by next month.

Infosys is a BPO subsidiary of Infosys Technologies.