H1 real-estate loans on the rise, up 6.8%

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Category: Top News

20 Nov 2013 

 

Written by Bianca Cuaresma

EXPOSURE of Philippine banks to the real-estate industry grew larger in the first half of the year, as banks offered more property loans, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday. 

The real-estate exposure (REE) of universal, commercial and thrift banks hit P900.1 billion as of end-June this year. This was about 6.8 percent higher, compared with the March REE level. 

Total REE is about 21.7 percent of the entire banking system’s total loan portfolio, which amounted to P4.2 trillion during the period in review. 

Larger real-estate loans (RELs) mainly drove the expansion of the banks’ wider REE in the first six months of the year. 

Of the P900.1-billion total REE amount, about 84.7 percent was in the form of property loans; the remaining 15.3 percent were real-estate investments.

RELs grew to about P762.5 billion in the second quarter of the year. This was about 6.6 percent higher than the end-March level of P715.5 billion.

The BSP said RELs were used to finance the acquisition, construction and improvement of housing units.

Despite the growing exposure in this sector, the central bank gave assurance that level of residential real-estate loans remains manageable, as non-performing real-estate loans remained low, reported at 3.7 percent of the total residential RELs.

Investments in real-estate securities reached P127.7 billion at end-June this year. This was 8.3 percent higher compared with first-quarter level of P127.1 billion. 

The central bank expanded this year the reporting system for banks on their real-estate exposure, as part of a stricter monitoring of banks’ behavior to real-estate loans and securities. 

This new reporting system now includes loans to developers of socialized and low-cost housing, loans to individuals, loans supported by non-risk collaterals or Home Guarantee Corp. guarantees, as well as investments in securities to finance real-estate activities and the exposure of the banks’ trust departments to the property sector.

“In line with its financial stability objectives, the BSP is keeping an eye on measuring the whole landscape under the new coverage of bank’s exposure to the real-estate industry. The BSP is keen on monitoring the credit conditions that support the heightened activity in property development to prevent potential impairment of intermediation,” the central bank said in a statement.

Neda Board approves P184-billion projects

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Category: Top News

21 Nov 2013 

 

Written by Butch Fernandez

The Aquino Cabinet, sitting as the National Economic and Development Authority (Neda) Board, approved on Thursday seven major infrastructure projects with total cost of P184.2 billion.

In a marathon meeting chaired by President Aquino, the Neda Board gave the green light for the concerned government agencies to proceed with the spadework for the following projects:

■  Light Rail Transit Line 1 South Extension Project (P64.9 billion);

■ Metro Rail Transit 7 Project (P62.7 billion);

■ LRT Line 1 North Extension Project-Common Station (P1.4 billion);

■ Mactan-Cebu International Airport New Passenger Terminal Project (P17.5 billion);

■ Development of Transportation System at Food Terminal Inc.  and Philippine Reclamation Authority under the Public-Private Partnership Program (P7.7 billion);

■ Modernization of the Philippine Orthopedic Center (P 5.6 billion); and

■ Bulacan Bulk Water Supply Project (P24.4 billion).

The LRT Line 1 project involves the extension of the existing LRT Line 1 South, which currently covers 21 stations from Roosevelt Avenue to Monumento (North Link) to Baclaran with a total length of service line stretching 20.7 kilometers. The extension project will extend this service line by 11.7 kilometers covering 10 more stations and will pass through Parañaque and Las Piñas up to Bacoor, Cavite.

The MRT 7 project involves the construction of a 22.8-kilometer rail system from North Avenue station on Edsa in Quezon City, passing through Commonwealth Avenue, Regalado Avenue and Quirino Highway up to the proposed Intermodal Transportation Terminal in San Jose del Monte, Bulacan, which will cover 14 stations.

The LRT North project involves the provision of a common station among LRT 1, MRT 3 and MRT 7, as well as road-based transportation systems. Head-to-head platforms for LRT 1 and MRT 3 with a 147.4-meter elevated walkalator to MRT 7 at North Avenue will be constructed.

The Mactan-Cebu airport project involves the construction of new passenger terminal, renovation of existing terminal, operation and maintenance of both the new and the existing passenger terminals during the entire concession period and relocation of Air Force facilities.

The fifth project approved by the Neda Board involves the development of two mass-transportation terminals at the southern outskirts of Metro Manila to be located at the following:

·         South–Slex Terminal at the FTI Property in FTI Compound, Taguig City, to serve passengers traveling to and from Laguna and Batangas

·         South–Coastal Road Terminal at PRA Property beside Asiaworld/Uniwide along Manila-Cavite Expressway (R-1) Expressway in Parañaque City to serve passengers traveling to and from Cavite.

The Neda Board also approved the modernization of the Philippine Orthopedic Center. The government aims to develop a “super specialty tertiary orthopedic hospital” with a 700-bed capacity. It also played the Metropolitan Waterworks and Sewerage System’s Bulacan bulk water supply project, which will provide potable water supply to Bulacan.

“The rail projects will connect the train systems and make it convenient for passengers to transfer from one train to another. This will also help reduce passengers’ travel time,” Socioeconomic Planning Secretary Arsenio M. Balisacan said.

“The Mactan-Cebu International Airport project will enhance the operational efficiency of the airport and will also provide convenience for airport passengers. The transport-terminal project will make various modes of transportation accessible to people coming from nearby provinces to commute to and from Metro Manila. It will also ease traffic along Edsa.”

A call for integration of earthquake-proof principles

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Category: Properties

05 Nov 2013 

AN Italian architect who grew up in a country infamous for its frequent earthquakes and old Roman structures has opined that, following the deadly tremor in the Visayas, local architects and builders should now fully incorporate earthquake-proof principles when building structures in the country.

“Italy and the Philippines have many similarities when it comes to natural calamities, particularly volcanic activity and earthquakes, which is why the two countries can learn from each other in terms of construction,” said Romolo V. Nati, executive chairman and CEO of the Italian-Filipino firm Italpinas Euroasian Design and Eco-Development Corp. (ITPI).

“For Italians, building quake-proof structures is not just an option. Every time we design in Italy, we have to consider that we are building something in an earthquake-prone country,” said Nati, who took up architecture and graduated summa cum laude from La Sapienza University in Rome.

Nati now calls the Philippines his home, having set up ITPI, which is an affiliate of the renewable-energy firm Constellation Energy Corp., with business partner and ITPI President Atty. Jojo Leviste in 2009. They also started building a 10-story condominium in Cagayan de Oro City—Primavera Residences, which is the first and only sustainable building in Mindanao.

The Philippines is situated in the Pacific Ring of Fire, a region encircling the Pacific where frequent seismic and volcanic activities occur. According to the Asia-Pacific Environment Outlook released by the United Nations Environment Programme, the country experiences an average of five earthquakes a day due to its location between two of the world’s most active tectonic plates.

Italy, on the other hand, lies at the meeting point of the European and African tectonic plates, experiences frequent geological movement, and has well-defined fault lines, which earned its reputation as one of the most earthquake-prone countries in the world.

Nati said one way to prevent structural damage brought about by earthquakes is by building tubo cavo (hollow tube) or tube-shaped structures, which is the best shape to react to stress and opposing forces within the earth.

“The shape of the building must be done in such a way that it optimizes the building’s capability to adapt to seismic activity. The tube structure is the best shape to withstand forces and ground motion brought about by earthquakes.” He also pointed to bamboo as an example from nature: its tubular structure combines strength and lightness, having evolved to withstand stress in a way that modern architectural principles can emulate.

According to Nati, apart from the building’s design and size, its materials should also flex rather than resist ground motion during earthquakes.

“There is a misconception that buildings have to be very rigid to survive earthquakes when, in fact, they have to be flexible. Structures made from bricks and stones are very rigid, and in order to retrofit them to make them a safer place in case of earthquakes, they need to be reinforced with steel structures to render them earthquake-resistant,” explained Nati.

Leviste said Nati has made sure all these earthquake-proof principles have been incorporated in ITPI’s premier condo project, Primavera Residences. He emphasized that safety is ITPI’s number-one priority when it comes to designing and putting up buildings.

“Since the building started construction in 2010, several earthquakes have hit Cagayan de Oro City, but Primavera Residences has sustained no damage,” said Leviste.

A magnitude-5.3 earthquake was recently felt in CDO following the 7.2-magnitude quake that shook Bohol and Cebu. Leviste said the quake caused some local buildings to develop cracks, but it brought no damage to Primavera Residences.

Set up in 2009, ITPI has partnerships with Investment & Capital Corporation of the Philippines (ICCP) Group of Companies, the leading independent investment bank in the country and the owner of a land development estate in Northern Mindanao; Land Bank of the Philippines (LBP), Bank of the Philippine Islands (BPI), Board of Investments (BOI), Philippine Green Building Council (PGBC), Pueblo de Oro Development Corp.; and First Oriental Development Corp. (FODC), a triple-AAA contractor that specializes in green construction, Habitat for Humanity Philippines, and Compassion and Responsibility for Animals (CARA) Welfare Philippines.

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In Photo: Primavera’s earthquake-resistant attributes have prevented the building from incurring damages from several earthquakes since 2010. (Right photo) ITPI uses state-of-the-art software products to design the structures of its buildings so that they are able to withstand major natural calamities, such as earthquakes and typhoons. The computer-generated simulations show the reactions of the structure from various strains coming from different directions.

Investment grade from Moody’s takes PHL share prices higher at noon break

Share prices on the Philippine Stock Exchange recovered sharply at the end of the morning session Thursday after Moody's Investors Service raised Philippine sovereign credit rating to investment grade.

The main PSEi was up 32.23 points or 0.51 percent to 6,394.49 at the noon recess. The broader all-shares index added 12.12 points or 0.32 percent to 3,848.92.

"The market rebounded after the last and third largest global ratings firm, Moody's, announced the upgrade of Philippines to investment grade," Astro del Castillo, First Grade Finance Inc. managing director, told GMA News Online.

"It has affirmed the views of others that the Philippines is a good place to invest in. We now have another feather in our cap," he added.

On Thursday, Moody's has upgraded the Philippine sovereign rating by one notch to Baa3 from Ba1, with a positive outlook. It said the “factors that prompted the review remain intact, namely the sustainability of the country's robust economic performance, ongoing fiscal and debt consolidation, and political stability and improved governance.

Before the announcement, Nieves Securities Inc. analyst Miko Sayo said the market was expected to move up and down due to consolidation and profit taking.

"The market is in the middle of nowhere as most investors were taking profits following sharp gains yesterday," he added. – VS GMA News

PHL gets investment grade rating from Moody's

Yahoo Southeast Asia Newsroom/Yen Baet - Yen Baet also took this shot of the Makati skyline. (Photo by Yen Baet)

Moody’s Investors Service on Thursday upgraded Philippine sovereign credit rating to investment grade with positive outlook, citing a robust economic performance in the face of an ongoing fiscal and debt consolidation as well as political stability and improved governance.

The Philippine rating was upgraded to Baa3 from Ba1. – Siegfrid Alegado/VS, GMA News

The Mactan Newtown poised to be Cebu’s next BPO hub

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Category: Properties

Published on Tuesday, 27 August 2013 18:31

MEGAWORLD, the country’s leading real-estate developer and biggest business-process outsourcing (BPO) landlord in the Philippines, announced that it is increasing its leasable office spaces for BPO companies within the Mactan Newtown on account of the favorable economic climate that the country’s BPO industry is experiencing, especially in Cebu. 

“Megaworld is keen on expanding its office spaces for BPO companies inside the Mactan Newtown mainly because we see the significant growth of the BPO industry in Cebu. This we have observed in recent years,” said Jericho Go, first vice president of Megaworld.

Megaworld is expected to offer around 150,000 square meters of office spaces in the more than 20-hectare Mactan Newtown within the next three to five years. “We can actually add up more leasable office spaces if the demand is really high,” said Go.

He added that these recent developments are just part of the plan to turn Mactan Island into Cebu’s primary BPO hub. The Mactan Newtown is expected to generate around 40,000 full-time BPO employees by 2018.

“Cheaper labor, abundant manpower, affordable location and right assistance from the local government make Cebu ripe for BPO businesses,” enthused Go.

Megaworld is bringing top international BPO companies to the township. One of the first businesses to set up office there is the Results Companies (Results Manila), the leading global provider of customer management and business-process outsourcing solutions for over 20 years.

Results Manila is set to open its fifth call center in the Philippines. It is also its first office outside of Metro Manila at the modern five-level One World Center. The company is expected to employ around 1,500 BPO workers.

“Cebu is home to a great pool of talented, educated people with exceptional drive for exceeding customer expectations. We expanded our office in Cebu to allow us to diversify our locations for our clients and internal business continuity planning,” said Kevin Betts, vice president for facilities development and administration, Results Manila.

The Mactan Newtown is Megaworld’s biggest township project so far in Metro Cebu. It promises to provide premier residential communities with the finest amenities, upscale hotels, premium commercial establishments and BPO office towers, to name a few.

“The urban landscape of the Mactan Newtown provides great opportunity for BPO companies to invest here in Cebu,” added Go.  

The Mactan Newtown has been declared a special economic zone by Aquino under Presidential Proclamation 407. This places the township development under the Philippine Economic Zone Authority, which allows businesses inside to enjoy various privileges such as tax incentives and holidays.

Megaworld has earmarked P20 billion for the development of the Mactan Newtown in the next five to seven years. For Project Inquiry, contact 0917.3236123.

Develop waterfront, Cebu

By Mia A. Aznar

Friday, September 6, 2013

WITH the Philippines having the third largest coastline in the world, urban planner and architect Felino “Jun” Palafox Jr. said he wonders why the country’s cities are not using them more.

Palafox, who gave a lecture in the harmonization workshop of the Metro Cebu Development and Coordinating Board at the University of San Carlos in Talamban yesterday, said big cities like Dubai spent millions to build their own waterfronts, dredging their creeks to make them navigable and adding bodies of water to their reclaimed areas.

In the Philippines, however, he lamented that rivers and creeks are being turned into dumpsites while the coastlines are underutilized.

He showed photos of cities like Amsterdam, London, Paris and Singapore that have turned their waterways into beautiful areas surrounded by residences and commercial establishments.

“These are examples of how waterfronts can be amenities,” he said.

As the MCDCB creates a masterplan for Cebu, he said it should learn from the mistakes Manila made.

Originally designed by Daniel Burnham, who is also responsible for Baguio City and Chicago, Palafox said Manila’s original urban plan was inspired by Paris and Venice, its original plans incorporating green spaces and its rivers, especially the Pasig, used to connect communities.

While the older parts of Manila evoke a European quality, many things changed when the Philippines became a republic.

Instead of the carefully planned communities, Palafox said, the country’s leaders emulated Los Angeles, which developed into “urban sprawl”. Its own officials have admitted that Los Angeles is “a 60-year-old mistake in urban planning.” Sadly, he said, the Philippines copied it.

Spread evenly

Palafox said urban centers ought to be planned for everyone by making things easy for those who don’t have vehicles to get to their destinations by walking or riding a bicycle.

“Development is not worthy of the name unless it is spread evenly, like butter on a piece of bread,” Palafox said.

He explained that in developing roadways, there is a formula that should always be met: a third of the area for green spaces, a third for bikes and pedestrians and the remaining third for vehicles.

He said that in Manila, the work areas surrounding the main MRT line are surrounded by gated communities with huge mansions and military and police camps that employees who commute still have to ride other modes of transportation to get to the MRT stations.

“Those who do use the stations live far from the stations,” he said.

Palafox also lamented the lack of sidewalks. He said that aside from the older sections of the cities, government road projects almost always do not incorporate sidewalks for pedestrians and bicycles, saying only the private developments only take this into consideration. He added that transportation planners fail to include pedestrians and bicycle riders in their assessments.

Anticipate, don’t just react

The country’s leaders, he said, suffer from reactive policies. He said Metro Cebu should learn to be proactive by anticipating problems and learning from other cities.

He also said strong leaders who have the support of line agencies are required to pull off measures a city needs and have the will to institute policies that will improve the city. Aside from just zoning, cities should have hazard maps and have different building codes for areas considered risk-prone.

While the MCDCB consists of 13 local government units, Palafox suggested including the municipalities beyond these localities to include them in plans.

He also asked that opinions of urban planners, architects and engineers not be ignored or scorned, citing infrastructure projects in Singapore are always reviewed by their institutes of urban planners, architects and engineers.

Unemployment drops in CV

By Mia A. Aznar

Wednesday, September 11, 2013

WHILE unemployment in the Philippines rose to 7.3 percent in July, this was not the case for Central Visayas.

Preliminary results from the July round of the Labor Force Survey showed Central Visayas’ unemployment rate dropping from 7.1 percent in July 2012 to 6.5 percent in July this year.

The actual unemployment numbers this year were at 209,000, down 5.85 percent from the 222,000 in 2012.

The last survey done in April showed an unemployment rate of 6.4 percent while in January, it was at 7.4 percent.

The region’s employment rate also rose from 93.9 percent in July 2012 to 93.5 for the same period this year. The employed in Central Visayas number 2.993 million, up 3.5 percent from the previous year’s 2.8 million. In April, Central Visayas had an employment rate of 93.6 percent while in January, it was at 92.6 percent.

While employment and unemployment rates had slight changes, underemployment in the region posted high changes. Underemployment dropped 40.9 percent from 618,000 to 365,000, placing the region’s underemployment rate for July, 12.2 percent. In April, it was at 15.5 percent while in January, it was at 19.4 percent.

In 2012, the average underemployment rate was at a higher 20.7 percent.

Central Visayas consists of the provinces of Cebu, Bohol, Negros Oriental and Siquijor. As of July, the four provinces had 4.9 million people aged 15 years old and over, rising 2.1 percent from the 4.79 million the year before.

The region’s labor force, or the actual number of people available for work, is at 3.2 million, up 2.8 percent from 3.1 million previously.

For the rest of the country, unemployment rose 7.3 percent, although Socioeconomic Planning Secretary Arsenio Balisacan said that while the increase is contrary to expectations, it is not so unusual for an emerging economy’s employment to experience volatility. He said the workers shift from one job to another while others wait for better opportunities.

The Philippines’ employment rate was at 92.7 percent while its underemployment rate was at 19.2 percent.

Cebu developer breaks ground on new project in Brgy. Lahug

By Jeandie O. Galolo

Tuesday, September 10, 2013

A LOCAL developer broke ground yesterday on a “community-type” project in Barangay Lahug, Cebu City that is expected to rise in 18 months.

Mivesa Garden Residences, a 1.8-hectare property of Cebu Landmasters Inc., is a mid-cost condominium project in the middle of Veterans and Salinas Drives in Barangay Lahug, Cebu City.

It is a three-phase project with seven mid-rise buildings of six to ten floors.

Cebu Landmasters Inc. president and chief executive offer Joe Soberano III said Mivesa Garden Residences is one of their fastest selling projects, with 95 percent of the units in the first phase sold out in just two months.

Soberano said most of their buyers are overseas Filipino workers. Others are young professionals and expatriates.

The first phase of the residential condominium has three buildings with 479 units, of which 455 are already sold. The second phase has two buildings with 459 units while the third will have two buildings of 500 units.

Soberano said the last two buildings are expected to finish in the next three to four years.

Each unit has a floor area ranging from 20 square meters to 60 square meters, sold at P68,500 to P70,000 per square meter.

Soberano said that unlike other condominium projects, Mivesa Garden Residences offers an atmosphere ideal for neighborhood building where residents are provided the space and amenities fit for a “community lifestyle.”

To make the area less dense, Soberano said Mivesa is setting aside 60 percent of its total land area for open spaces. It also has a meditation garden, pocket parks and five retail shops. He said the retail shop units are still available.

Mivesa is the 12th project of Cebu Landmasters Inc.

In the past two years, Soberano said Cebu Landmasters Inc launched five projects across the province.

He attributed the speedy developments to the high demand of residential areas in the Cebu market, saying the company is there to “fill that demand.” For Project Inquiry, contact (032) 3181589 | 09173236123.

CV tourist arrivals go up 14.78%; Koreans still top

By Katlene O. Cacho

Monday, September 16, 2013

CENTRAL Visayas logged 1.7 million tourist arrivals in the first semester this year, reports from Department of Tourism (DOT) 7 showed. The number is up 14.78 percent from the 1.5 million recorded the previous year.

Of the number, Cebu accounted for 1.2 million.

Majority of the foreign arrivals are Koreans. Korean arrivals in Central Visayas grew by 27.80 percent or 257,998 from 201,877 in the same period last year. Japan came second with 98,851 or a growth of 9.07 percent.

There was also an increase of 2.49 percent in the arrivals from the US market, which hit 58,507.

Visitors from China, meanwhile, dropped by 24.58 percent. Only 29,187 Chinese visited Central Visayas from January to June this year compared to 38,692 the previous year.

Taiwan posted the strongest growth at 82.49 percent from 13,995 in arrivals last year to 25,539 this year. Completing the top 10 visitor markets are Australia with 20,967, Canada with 14,941 arrivals, Germany with 14,185 arrivals, United Kingdom with 12,756 arrivals and France with 11,694.

The Philippines generated 2.38 million visitors in the first half this year, up by 11.06 percent from 2.1 million arrivals last year. The growth is 43 percent of the target arrivals for the year.

The DOT said the tourism industry started the year with high hopes and expectations as arrivals for the months of January to March produced more than 400,000 visitors.

Months of February and June yielded increases of 15.52 percent and 14.01 percent respectively.

More than 4M passengers passed through Mactan; flights up 13%

By Mia A. Aznar

Friday, September 13, 2013

FROM January to July this year, over 30,000 flights passed through the Mactan Cebu International Airport, carrying over four million passengers.

The comparative performance posted on the MCIA website stated there were a total of 38,313 flights for the period, 19,118 of these incoming flights and 19,195 of these, outgoing.

Domestic flights made up the bulk of the trips with 31,678.

There were 15,817 domestic incoming flights and 15,861 outgoing flights and the majority of these occurred in the summer months of April and May. Domestic flights grew 12 percent from January to July last year.

For international flights, majority occurred in January, which is a busy month for Cebu as it celebrates the Sinulog Festival.

A total of 6,635 international flights were recorded for the period, 3,301 of which were incoming while 3,334 were outgoing. This is up 18 percent from last year.

The number of flights grew 13 percent from the 34,052 flights that used the airport for the same period last year.

For the period, the airport saw a 13 percent increase in international passengers, after 1.04 million travelers passed through Cebu. Domestic traffic rose slightly by 1.8 percent at 3.15 million.

From 4.03 million last year, the total number of travelers that passed through the Mactan Cebu International Airport grew four percent to 4.2 million.

In terms of cargo, 34 million kilos of cargo were transported through the airport, up 11 percent. Domestic cargo made up 25.3 million kilos while international cargo was at 8.69 million kilos.

The flights also transported 31.7 million pieces of baggage, consisting of 18.3 million pieces from domestic flights and 13.4 million pieces from international flights.

Cebu needs smart power grid, energy management firm says

By Katlene O. Cacho

Friday, September 13, 2013

OF the five critical areas of concern to make Cebu a “smart city”, French energy management company Schneider Electric said a smart grid should be a priority.

Ian dela Rosa, country sales manager-IT business unit of Schneider Electric, pointed out that as more people migrate to the urban areas, the demand for energy will continue to increase, on top of the power businesses need.

“It is important to understand that each city is a unique entity...Every city is faced with similar challenges but priorities will vary. In one city, electricity will be a short-term priority because of power blackouts; in another, electricity will be a mid-term one because of rising costs. But there is one ambition-to make every city smarter,” said dela Rosa.

At present, 61.28 percent of the 4.17 million people in Cebu live in the city. By 2020, it is projected that the population would grow by 5.18 million, of whom 70 to 80 percent will reside in the city.

Aside from smart grid, other equally important areas of concern for a smart city include mobility, water, public services, and buildings and homes.

“Smart infrastructure is the building block for a sustainable Cebu,” dela Rosa said.

Dela Rosa was in Cebu for this year’s Xperience Efficiency roadshow held at Radisson Blu Hotel Cebu. The exhibition brought together business, government and community leaders to learn and drive change in today’s energy and sustainability challenges.

The exhibition featured 20 breakout sessions and interactive displays on the latest integrated energy trends and alternative ways that will not only address current challenges, “but also transform how we all work, team up and play,” the company said.

“We envision cities in the country to become smart cities,” said dela Rosa.

The company said Smart City presents an alternative and long-term solution to energy management that cuts across all industries, including data centers and information technology (IT).

As an integrated process, Smart City gives businesses new ways and ideas to save money, increase efficiency, improve competitiveness and drive better performance in the workplace, the company also said.

Dela Rosa said transforming cities in the country into smart cities is attainable, given the high awareness of Filipinos about energy management.

He said what energy efficiency advocates are hoping to see is that this high awareness translates into action and implementation by local governments.

“Collaboration is an effective measure to realize all these energy efficiency efforts,” he said.

Schneider Electric generated 24 billion euros in sales last year, of which 41 percent came from new economies.

Asia Pacific outgrew North America in contributions, posting 27 percent. The company’s North American sales grew by only 25 percent.

CCCI’s new exec director brings ‘green credentials’ to the job

By Mia A. Aznar

Saturday, September 21, 2013

A WOMAN who has spent considerable time championing environmental causes is the Cebu Chamber of Commerce and Industry’s (CCCI) new executive director.

May Elizabeth Segura-Ybañez, who joined the CCCI in August, replaced Salvador “Buddy” Villasis, who vacated the position in July.

For Ybañez, becoming executive director of an organization that aims to be Cebu’s engine of business growth toward global competitiveness is a challenge she welcomes.

The chamber’s programs impressed Ybañez and she felt being executive director was something she could participate in.

Ybañez considers team management her strength, having worked with people in the agriculture and fisheries sector, government and international development.

She has served 10 years as team leader of the Philippine Environmental Governance Project of the USAID in Central Visayas.

International consultancies

Before that, she was also executive director of the Philippine-Canadian Environment Economic Management and spent 10 years working for the World Bank’s Central Visayas project management office. She is also founding president of the Cebu Biodiversity Conservation Foundation.

Ybañez has also held consultancies with international organizations.

Her background comes in handy, as one of CCCI’s objectives is to promote sustainability in all its programs and projects.

As executive director, Ybañez will be responsible for managing the daily operations of the CCCI, ensuring the policies, programs and projects are implemented according to the objectives and goals set by the CCCI board.

She also has to make sure the CCCI effectively serves its members and that they feel the value of being a member of the organization. Her job also requires her to look for opportunities to fulfill CCCI’s vision of being the engine of Cebu’s growth toward global competitiveness.

“I saw it as a challenge and I felt it was something I could help them with,” she told Sun.Star Cebu.

She is married to former Cebu Provincial Board member Roberto Ybañez.

One of her biggest duties will be to prepare CCCI members for the Asean integration and make sure the impact of the Asean Economic Community is not negative on Cebu’s businesses.

ALI hands CHI rights to Mactan project

By Katlene O. Cacho

Thursday, September 19, 2013

PROPERTY developer Ayala Land Inc. (ALI) said Tuesday said it has transferred the rights of the joint venture project in Mactan to its affiliate Cebu Holdings Inc. (CHI)

In a disclosure to the Philippine Stock Exchange (PSE), ALI announced it has “transferred to CHI all of its interest, rights, obligations, and undertakings in Taft Punta Engaño Property Inc. (TPEPI) pursuant to the company’s joint venture agreement with Taft Property Development Corp. (TPVDC) and TPEPI.”

ALI said the transaction will allow the company to “consolidate its businesses resulting in improved efficiencies and synergy creation to maximize opportunities in Cebu real estate market.”

TPEPI is a joint venture with TPVDC, a Cebu-based real estate company and member of the Vicsal Group of Companies, for the purpose of developing a 12-hectare property in Mactan, Cebu.

In a statement sent to Sun.Star Cebu, CHI president Francis Monera said CHI shall “invest into the joint venture company (JVC), and CHI and subsidiaries of mother company, (ALI) shall manage the JVC projects.”

“CHI brings 25 years of expertise in managing large-scale, integrated, and mixed-used development projects with landmark developments such as Cebu Business Park and Cebu IT Park. TPVDC, with their experience in the Gaisano Metro chain of stores, shall likewise bring into the joint venture its solid background in the retail operations,” said Monera.

He said the 12-hectare property in Mactan is envisioned to become an integrated mixed-use development with retail, residential, and hotel components. The proposed development will offer a value proposition which is distinct from that of other projects of CHI in Cebu City.

Monera, however, said they will provide more details when they complete their planning. For Project Accreditation & Inquiry call (032) 3181589 | 09173236123.

Developer plans socialized units in Minglanilla

By Jeandie O. Galolo

Saturday, September 21, 2013

INSTEAD of developing properties solely for the high and mid-market, a homegrown real estate developer decided to venture into socialized and economic housing for the “underserved” sector before the end of the year.

Cebu Landmasters, Inc. President and Chief Executive Officer Jose Soberano III disclosed on Tuesday that the company will launch their socialized and economic housing project on a 6.5-hectare lot in Linao, Minglanilla before the end of 2013,
with 400 houses expected to rise in the next few years.

This move, according to Soberano, shows the company’s desire to provide homes to the “underserved” sectors of the society instead of just focusing on the needs of more affluent markets.

He said that by “underserved”, he meant those who earn P10,000 per month or less.

Just recently, Cebu Landmasters celebrated the topping off of its 12th project, the Midori Residences, on A.S. Fortuna St. in Mandaue and broke ground for another mid-rise condominium project, the Mivesa Garden Residences, in Barangay Lahug.

P400,000 per unit

Both of these cater to the high and middle market.

Soberano said each house will cost around P400,000 and below for the socialized housing, with an estimated lot area of 32 square meters. “Economic” housing units can go for P600,000 to P1 million.

Residents can also enjoy amenities like a clubhouse and community centers and will be provided with security like that of most subdivisions, said Soberano.

In addition, he emphasized that owning a house nowadays in a socialized housing community is no longer a problem since banks and other financial institutions offer housing loans with low interest rates.

PAG-IBIG or the Home Development Mutual Fund, which he cited, is encouraging such kinds of loans. He said that for a 25-year payment period on a P400,000 housing loan, one will be paying less than P2,000 a month.

Urban development requirement

Rather than renting a property, Soberano advised those who wish to own a house, but don’t have enough money, to avail themselves of a housing loan.

Soberano said he is also eyeing on developing more socialized housing projects, but hopes that others in the private sector will also do the same.

“Let the private sector or developers look at this area. We cannot just leave this to Habitat (for Humanity) or Gawad Kalinga. We also have a major role to play here,” he said.

Republic Act 7279 or the Urban Development and Housing Act of 1992 mandates developers to use 20 percent of their total project costs to “build new settlements or implement slum improvement and resettlement programs, enter into joint-venture projects with the local government units or housing agencies, and participate in community mortgage programs.”

Compliance

Soberano said although there are various ways in complying with the law, the “real compliance is still putting up (socialized) houses.”

He said he envisions to put up a four- or five-story building in a one- or two-hectare property in the city as part of the company’s socialized housing advocacy.

“If we (developers) don’t give them that kind of alternative, then they (underserved sectors) will continue to just flourish in the urban areas…in places that are not really equipped for residential living,” Soberano said.

Instead of just focusing on how much money developers can make out of it, he said it is better to think of how it can contribute to the improvement of communities.

“Economic growth? I would say it’s now more on trying to put some kind of shift on ‘attitude’. There’s an ‘attitude shift’. If you have a home that is properly managed, you have set some line of discipline.”

PHL investment level deteriorating–WB

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Category: Top News

Published on Saturday, 14 September 2013 22:00

Written by Jun B. Vallecera

INVESTMENT activities in the Philippines as percent of local output or gross domestic product (GDP) have fallen sharply lower to only around 20 percent of GDP the past decade from some 30 percent of GDP in the 1970s, the Manila unit of the World Bank reported on Friday.

The deteriorating level of investments is one of a number of problems hounding the economy that has kept productivity low in the agricultural sector and the local manufacturing sector rather weak, for instance.

These developments, in turn, helped perpetuate the high 26.5-percent incidence of poverty in the country and partly explains why about a third of middle-income Filipinos would rather work abroad or migrate to other countries altogether, the World Bank said in its 2013 Philippine Development Report released only on Friday.

According to the World Bank, 60 years of underinvestments contributed to the slow growth of agriculture, whose potential
contribution to overall economic expansion cannot be underestimated.

Agriculture in the Philippines is backward-looking and unproductive, while its manufacturing sector is stagnant and offers few job opportunities for Filipinos, the World Bank said.

“Although the country’s average growth record of 4.1 percent in the last three decades is comparable to global performance, it is considerably lower than the 6.5-percent growth of its more dynamic East Asian peers over the same period. In per-capita terms, Philippine growth is much lower at around 1.4 percent, given its historically higher population growth rate of 2.7 percent. While there have been a few growth spurts, the country has rarely been able to sustain growth at above 5 percent for an extended period, again in contrast to its neighbors,” the World Bank said.

Karl Kendrick Chua, senior country economist at the World Bank in Manila, said the Philippines has a long way to catch up with Malaysia, for instance, whose above 7-percent growth had been going on for maybe 20 or 30 years.

He said that while Manila typically attracts $2 billion worth of foreign direct investments (FDI) in a year, its neighbors have no trouble attracting 10 times more FDI.

It was noted the Philippines posted high growth rates in the 1970 as a result of large-scale growth in infrastructure, although this was not sustainable as such growth was debt-driven and best illustrated by the debt crisis in the 1980s.

Growth accelerated in the 1990s, when the government promoted exports, FDI and domestic competition, but was stymied by the 1997 region-wide financial crisis and brought the country to its third recession in 15 years.

“Finally, between 2003 and 2012, the country generated higher per-capita growth of above 3 percent; however, this has yet to translate into significant job creation and poverty reduction. Growth has largely benefited the top 20 percent of Filipinos,” the World Bank said.

The World Bank blames persistent policy distortions and lack of structural transformation as explanation for the slow growth of agriculture and manufacturing the past 60 years.

“In agriculture, these include protectionist policies, such as the rice self-sufficiency policy, large subsidies for inputs and distortions in institutions that prevent broad and secure access to land by small shareholders,” it said.

It also said protectionist policies in place as far back as the 1930s, such as high tariff walls, preferential loans and tax incentives to cronies in addition to uncompetitive practices in the various manufacturing industries contributed to the decline of the sector.

“With the exception of food manufacturing and electronics, the rest of the manufacturing subsectors either stagnated or declined. The bulk of manufacturing value added has come from capital-intensive industries such as electronics, while labor-intensive manufacturing such as garments, footwear and furniture continued to decline,” the World Bank said.

In the same Philippine Development Report, the World Bank highlighted the need for the government to accelerate inclusive growth and the creation of jobs to help reduce the poverty incidence and sustain growth for the long haul.

This developed even as an additional 1.15 million enter the labor force every year, or 14.6 million more in the next four years.

According to the World Bank, only one of four Filipino jobseekers eventually gets a job and only around half of some 500,000 graduates every year are absorbed; the other half will find work overseas.

It said more recent high-growth outturns help employ some of the jobless but even then, an estimated 12.4 million will have been jobless by 2016.

“Addressing this jobs challenge requires meeting a dual challenge: expanding the formal-sector employment even faster while rapidly raising the incomes of those informally employed,” the World Bank said.