Housing for a sustainable future

(The Philippine Star) Updated May 07, 2010 12:00 AM

MANILA, Philippines - Corporations, especially real estate developers, are now starting to realize the benefits of sustainable design practices as good for the environment and business as well. Some recent developments in the country have begun to design their projects around sustainable practices already.

But what if you were a developer of affordable housing with margins and selling prices to strictly maintain?

Phinma Property Holdings Corp. (Phinma Properties), the country’s leading developer of affordable condominiums, is one such organization. The company is known to constantly push itself to innovate and initiate improvements while delivering quality and affordable homes to Filipinos.

Despite being developing affordable homes it has aligned itself with international quality, waste management and safety standards and is the country’s first and only developer in the Philippines with Triple ISO Certification for the Quality, Environmental, Occupational Safety and Health Management standards.

As a progressive company that develops in major urban centers, Phinma Properties believes that it has a responsibility to maintain the environment where it develops. Company president and CEO Willie Uy said the company believes in sustainability as a way to manage and eliminate negative environmental impacts of today’s fast paced urban developments.

Conscious of its role as a responsible developer, the company has researched on ways wherein its projects will not only employ greener designs but also benefit the residents of its communities. The fruits of this conscious effort were recently put together in a concept for an affordable in-city community that received a Citation Award in the Professional Category of Futurarc 2010 — Asia’s Leading Green Design Competition.

This year’s theme for the International Design competition was for the design of a sustainable home. Recognizing the significant impact the built form has on society and the environment, the competition advocates for architecture that demonstrates creativity, social responsibility and sustainability.

“Sustainability is not just a marketing gimmick for us. The research and design innovations we applied in our model for an affordable in-city community is not just a mere concept but something we believe we can actually build. With over 800 competition registrations worldwide, Phinma Properties is truly proud of its achievement in this international Green Design competition,” according to Grant Orbeta, vice president for design and marketing.

Metrobank unit mulls coal-fired plant in Bohol

By Donnabelle L. Gatdula (The Philippine Star) Updated May 11, 2010 12:00 AM

MANILA, Philippines - Cebu Energy Development Corp., the power generation unit of the Metrobank Group, is considering the possibility of putting up a coal-fired power facility in Bohol.

Bohol I Electric Cooperative, Inc. (Boheco I) general manager Carlos Itable told reporters recently that CEDC officials have met with him to explore the possibility of constructing a coal-based power plant in the area.

“I told them they should put up a plant here because we still have a shortage of 60 megawatts,” Itable said.

CEDC has signified an interest to put up next year an 82-MW power plant in Bohol where power demand is growing at an average of three to five percent every year.

Itable said they expect a number of businesses to be established in the province.

He said there is a need for additional power to supply to a Korean shipyard.

According to Itable, there are a number of commercial and industrial plants that are expected to be put up as the island is being promoted as a prime tourists’ hub.

The Boheco official said its board has approved the proposal to source power from proposed CEDC power plant.

“The board approved that we get 14 megawatts for baseload from CEDC,” he said.

CEDC is a joint venture among Global Business Power Corp. of the Metrobank Group, Aboitiz Power Corp., Vivant Corp., and Formosa Heavy Industries of Taiwan.

The group is currently putting-up a 246-megawatt coal-fired power plant in Cebu.

The first phase or first 82-MW power unit of the three phases was switched on and synchronized to the Visayas grid in the first week of March this year.

The other two units are expected to be connected to the grid in June and December this year.

Panay Energy Development Corp., another power generation unit of the Metrobank group, expects to complete its 164-megawatt power plant in Panay within the year.

Government sets stricter rules set on housing tax perks

By Ma. Elisa P. Osorio (The Philippine Star) Updated May 11, 2010 12:00 AM

MANILA, Philippines - The government has implemented stricter guidelines for the availment of tax breaks for mass housing projects under the Investments Priorities Plan (IPP).

The Board of Investments (BOI) earlier wanted to remove the mass housing component of the IPP but at the behest of a government agency, it was returned after twin typhoons Ondoy and Pepeng hit the metropolis.

A new qualification was inserted in the proposed 2011 IPP guidelines. In the proposal all low cost mass housing projects are required to comply with the 20-percent requirement for socialized mass housing through the development of new settlement, slum upgrading, joint venture with government, participation in community mortgage program, housing density of 100 units per hectare or other models allowed.

The slum upgrading or renewal of areas for priority development must be done through zonal improvement programs or slum improvement and resettlement programs.

In order to qualify under the mass or socialized housing project, the cost of the housing units shall not exceed the amount for socialized and low cost housing as set by the Housing and Urban Development Coordinating Council (HUDCC).

Also there must be minimum of 20 livable dwelling units in a single site or building.

For the horizontal housing projects, the land development components for housing sites must contain provisions for road system, drainage system, water supply system and sewage system. The mass housing projects must be located in areas zoned and classified for residential use.

For the vertical mass housing projects, at least 51 percent of the total floor area excluding common facilities and parking, must be devoted to housing.

Projects that have already been completed and have incurred sales of housing packages shall not qualify for tax breaks.

15% VAT to raise P74 billion in fresh revenues for government

By Iris C. Gonzales (The Philippine Star) Updated May 11, 2010 12:00 AM

MANILA, Philippines - The government may collect as much as P73.92 billion in fresh revenues by 2015 if the government increases the value-added tax (VAT) rate to 15 percent by 2013, according to estimates made by the Department of Finance (DOF).

Estimates showed that the government may raise an initial P11.33 billion from a gradual increase in the VAT rate to 13 percent in 2011 from the current 12 percent and if corporate income tax rate is reduced to 28 percent from the current 30 percent, according to the latest estimates from the (DOF).

Under the plan, which the Finance department would recommend to the next administration, the VAT rate will then be raised to 14 percent in 2012 coupled with a reduction in the corporate income tax rate to 27 percent. This is expected to result in P35.3 billion in fresh revenues for the government.

The VAT rate would then be finally raised to 15 percent by 2013 while the corporate income tax rate would be reduced to 25 percent. This is expected to yield P56.04 billion in fresh revenues.

In 2014, revenues are expected to increase to P64.41 billion as the economy improves and in 2015, the new VAT rate is expected to raise P73.92 billion, estimates from the DOF also showed.

It would now be up to the next administration to decide whether or not it would raise the VAT to 15 percent.

The International Monetary Fund (IMF) has earlier conveyed that it wants the next administration to raise the country’s VAT rate to roughly 15 percent from the current 12 percent and reduce the income tax rate to about 21 percent from the current 30 percent as suggested by economists from the University of the Philippines.

In 2005, the government had raised the VAT through the Reformed Value Added Tax Law to 12 percent from 10 percent. The same law lifted exemptions on oil and petroleum products despite stiff opposition from consumers and cause-oriented groups.

In 2008, the government raised P121.14 billion from the RVAT law or P32.21 billion higher than the P88.93-billion collected in 2007.

RLC mulls $300-million public offer of REIT papers

By Zinnia B. Dela Peña (The Philippine Star) Updated May 11, 2010 12:00 AM

MANILA, Philippines - Robinsons Land Corp., the property arm of listed Gokongwei flagship firm JG Summit Holdings Inc., is reportedly planning a $300-million initial public offering of real estate investment trust (REIT) certificates in the second half of the year.

Sources said RLC has mandated American financial services giant Citi as its financial adviser on the planned offering of REITs, an instrument that trades like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.

RLC with assets that provide recurring income

, including shopping malls, hotel and office buildings, is waiting for the government to issue the implementing rules and regulations on the recently-passed REIT Law.

REITs have been widely adopted in the United States, Australia and more recently Japan, Singapore, Hong Kong and Taiwan and RLC wants to take advantage of the significant tax benefits of listing REITs.

Sources said RLC, the second largest shopping mall developer in the country with 29 malls nationwide, is looking at a $1 billion market capitalization for its REITs.

RLC is spending up to P9 billion this year to build new shopping malls, residential buildings and units, office buildings and hotels.

RETTs are listed stock corporations that will provide small and large investors with options to participate directly in the ownership, financing and management of large-scale real-estate projects at affordable rates of investment.