Cebu-Russian ties to be strengthened

By Katlene O. Cacho Thursday, June 14, 2012
THE Province of Cebu, through the initiative of Russian Federation honorary consul Armi Lopez Garcia, pledged to further strengthen the diplomatic ties between Cebu and Russia to boost tourism and trade development.
“Russia is already seeing the significance of the Philippines, especially with the efforts we are extending for this year’s upcoming Apec Summit. We will continue to bank on its improvements so both countries will further strengthen its diplomatic and economic ties,” said Garcia, at the sidelines of the Russia Day celebration held at the Movenpick Resort and Spa Cebu on Wednesday.

Garcia described that the diplomatic relationship with Russia and the Philippines have matured and that it is high time for both countries to look at strengthening each other’s trade and tourism.
She noted that Cebu is eyeing Russia as a potential market to develop, given the Russians’ nature as long-staying tourists with high-spending capabilities.
“This is the reason we will be embarking on various initiatives that would attract more Russians to come and visit the Philippines, particularly Cebu,” she said.
One of these initiatives is the establishment of the Russian language course at the University of San Carlos in partnership with the Rusky Mir Foundation.
This program, Garcia said, is being funded by the Russian Federation.
She added that aside from the language learning course, they are also looking at exchange programs to better the learning of Filipinos of the Russian language.
“It is important that both countries will understand each other, so both can benefit from one another. So if we are targeting more Russian tourists to grow our tourism market, then we need more Russian-speaking Filipinos,” she said.
Garcia noted Filipinos and Russians share common characteristics, such as a deep respect for family and religion. “A Russian heart is similar to an Asian heart,” she said.
Aside from learning the Russian language, Garcia also announced the participation of Movenpick Resort and Spa Cebu for the Asia Pacific Economic Cooperation (Apec) Summit 2012 to be held in Vladivostok, Russia on Sept. 2 to 9.
She said hotel personnel from Movenpick will fill in the necessary vacancies for a period of one month as part of the international immersion program of the tourism industry.
Garcia said three buildings at the Russky Island will be manned by the Movenpick hotel personnel.
She will also require a post-activity report from the participants so learning will be re-echoed to the academe.
Russian arrivals in Cebu for the first three months this year grew by 19.53 percent from 2,571 arrivals in 2011 to 3,073 in 2012.

Published in the Sun.Star Cebu newspaper on June 15, 2012.

Neda: No recovery for export

By Katlene O. Cacho
Thursday, June 14, 2012
MOST of the major industries in Central Visayas performed well last year, except for the export sector.
According to the recent economic situation report released by the National Economic Development Authority (Neda) 7, the expected full recovery of the export industry did not materialize in 2011 due to the slow growth of the US economy and the weakening of the European economies.

The report stated that the 60 percent drop in export in the month of December pulled down the total export earnings of Central Visayas for the year amid signs of recovery in the first semester last year.
The value of exported goods of Central Visayas in 2011 amounted to $2.3 billion, lower by 8.5 percent from that in 2010.
Importation of goods likewise declined. Neda 7 reported that the value and volume of the imports of the region dropped by 29 percent and 13.8 percent, respectively.
But Neda reported growth in tourism, transport, business process outsourcing, retail trade, and construction and real estate industries.
Farm production
Agriculture, which performed dismally in the past two years, recovered in 2011, Neda 7 said.
During the year, volume of agricultural production in Central Visayas increased by 31.4 percent, mainly due to improved performance by the crop sector, which posted a 36.9-percent gain in production.
The tourism industry remained upbeat in 2011. Central Visayas recorded an 8.1 per cent growth in visitor arrivals, with foreign visitors accounting for the bulk of the increase.
The Neda 7 economic report stated that the recovery of international tourism started in 2010 and continued to expand in 2011 with the Department of Tourism recording a 15.9 per cent growth in foreign visitor arrivals.
Central Visayas breached the one-million mark of foreign visitor arrivals during the year.
The shipping sector also managed to grow last year despite rising fuel prices.
Homegrown Cokaliong Shipping Lines expanded its shipping services to include Ozamis-Iligan route and increased trip frequencies to Palompon and Baybay in Leyte; Sindangan; and Dapitan.
IT industries
Information technology (IT) and IT-enabled services, including business process outsourcing (BPO), continued to expand in the region at an average annual rate of 20 percent.
The industry saw the entry of new companies as well as the expansion of the physical and manpower resources of existing firms last year. As of 2011, total workforce of IT/BPO companies in the region was estimated at about 65,000.
During the year, the value of export sales made by IT/BPO companies located in the region totaled $1.25 billion.
The strong demand for BPO and tourism related facilities and services, a growing demand for residential units in the urban centers, and expansion activities of the retail trade industry paved the way for the continued growth of the construction and real estate activities in the region last year.
Neda 7 cited the entry of big ticket investments, such as the integrated development project of the SM Prime Holdings, as well as the launching of various condo projects by homegrown developers.
Several hotels also opened and underwent major renovations last year following an influx of tourists and corporate transients into the region as a result of a thriving meetings, incentives, conference and exhibition (MICE) market.
Retail growth
The retail industry of Central Visayas, on the other hand, expanded further in 2011 despite projections of a slowdown in the aftermath of the 2010 elections.
Neda noted the opening of new shopping centers like J Centre Mall, Shopwise of Rustan's Supercenters Inc., and Forever 21.
Homegrown local players also expanded their retail operation in Cebu and in the neighboring provinces.
According to Neda 7 the steady growth of the retail industry in the region was driven by a broader consumer market with stronger spending capacities. The purchasing power of consumers in the region, particularly the young professionals, has risen due to the presence of BPO/ IT companies. The outsourcing industry provides higher than average salaries to their workers.
Local tourists including students joining educational tour packages also contributed to the expansion of the region's consumer market.
Neda 7 expected the region’s economy to grow faster this year given the infrastructure spending of the government.
“Tourism, IT, BPO, retail trade, and real estate industries will continue to drive growth of the regional economy. On the other hand, the export sector is foreseen to remain volatile as the European economies struggle with a financial crisis,” Neda 7 said.
Meanwhile, Neda 7 identified the ability of the region to increase the quantity of available, skilled, competent and highly qualified employees as among the concerns of the IT-BPO sector.

Published in the Sun.Star Cebu newspaper on June 15, 2012.

With new aiport, province can be a regional hub for int’l traffic: business tycoon

By Max T. Limpag

Friday, June 15, 2012

MAKATI CITY - Cebu needs to privatize the Mactan-Cebu International Airport, build a third bridge and a light rail from the airport all the way to Lahug to become a regional center, said Philippine Long Distance Telephone Co. chairman Manuel Pangilinan in an interview yesterday.
“Cebu has traditionally been a trading hub, commercial hub for Visayans, you should convert that to a bigger hub for other things. And I think the Cebuanos have that wonderful trait of being business-minded, creative and so forth,” he said in an interview with journalists, “Kaya lang kuripot. Correct ba (Except they’re stingy. Am I correct)?”

Clarification
Pangilinan said he is interested in investing in Cebu and talked about the possibility during a talk with Gov. Gwen Garcia during a Philippine Basketball Association Game last month.
He said he wanted to invest in new water generation and distribution projects not only in Cebu City but also in other major cities in the province.
Pangilinan clarified that he did not talk politics with Governor Garcia.
“No, we met at the lounge before the game. That was the first time I met her. Of course I’ve heard of her, she’s a famous national personality. I’ve heard about her, she must have been a capable government executive,” he said, “And we chatted. No politics, to be fair to her. I’m not an expert in politics. I don’t want to delve into something I don’t know much about.”

Suggestions
“We talked about possible investments in Cebu,” he said.
“If you could privatize the Mactan airport, build a third bridge and build a light rail all the way to Lahug. Then you bypass a lot of these small roads in Lapu-Lapu,” he said in a press conference after yesterday’s PLDT stockholders’ meeting.
Pangilinan said Cebu has to build a better airport because it is “like the old NAIA (Ninoy Aquino International Airport) runway.”
“When you land and take off, you shake, rattle and roll,” he said.
Pangilinan said Mactan Island needs a master plan and suggests replicating what Phuket did in Thailand.
“Then you can develop an ecosystem of restaurants, hotels, markets and entertainment.
Mactan has a better potential. Ang problema sa Mactan pagdating ng gabi, wala kang mapupuntahan, di ba (The problem with Mactan it doesn’t have a nightlife)?” he said.
He said Cebu can be a regional hub for international traffic.
“If people land in Cebu, I should offer facilities to move you to Boracay and argue I am closer to Boracay than Manila, I am closer to Bohol than Manila is to Bohol, I am closer to Palawan than Manila is to Palawan,” he said.
“You guys are wonderful. You’ve done a wonderful job of being the commercial center for Visayas and Northern Mindanao. Why can’t you think of it that way? You’re closer to Boracay than Manila is. So open a new airport,” he said.
“You should sell Cebu,” he added.

Published in the Sun.Star Cebu newspaper on June 15, 2012.

Regional development council: Scrap 2 Cebu flyovers

Friday, June 15, 2012
CEBU CITY – Because the projects were not endorsed by the Cebu City Development Council, a Regional Development Council (RDC) committee wants two flyovers and two road improvement and widening projects deleted from the Department of Public Works and Highways’ (DPWH) list of proposed projects for 2013.
The items were included in the “List of RDC-Endorsed Programs, Activities and Projects (PAPs) Proposed for Inclusion in the Calendar Year 2013 Budget Proposals of Agencies,” which was discussed during the RDC meeting on Thursday.

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During the meeting, the Infrastructure Development Committee of the RDC (IDC-RDC) passed a resolution suggesting to remove the items from the list.

Emmanuel Rabacal, chairperson of the IDC-RDC, identified the projects as:
* construction of flyover at the junction of Juan Luna Ave. and M.J. Cuenco Ave., P230 million;
* construction of flyover at the junction of Juan Luna Ave. and Cardinal Rosales Ave., P200 million;
* improvement of junctions Archbishop Reyes, Salinas Drive, Gov. Cuenco Ave. and Juan Luna Ave., P60 million;
* and the widening and concreting of Banilad-Talamban Road, including Road Right-of-Way (RROW) acquisition, P150 million.
Rabacal’s resolution was approved but with amendments, as proposed by Department of Budget and Management Central Visayas Director Carmela Fernan.
Instead of removing the four projects from the list, Fernan said the IDC-RDC should suggest to the DPWH Central Office to replace them with projects that will address the present needs of Cebu City.
RDC Chairman and Cebu City Mayor Michael Rama said the title of the list is already misleading because RDC did not endorse flyover projects for funding for 2013.
In the RDC officials’ consultation meeting with Central Visayas congressmen and regional directors of National Government agencies on Thursday, Rabacal said he was surprised to see the projects in DPWH’s list because the agency knows these were not endorsed by the IDC-RDC.
A representative of DPWH regional Director Ador Canlas said they included the projects in the list while waiting for the endorsement of the Cebu City Development Council and the IDC-RDC.
But Rabacal said this reasoning is unacceptable because DPWH officials already know that Mayor Rama and the Livable Cebu Movement are against it.
At this point, Representative George Arnaiz (Negros Oriental, 2nd district) asked where Canlas is, so he can explain to the RDC and congressmen who determines and prioritizes the projects.
He said there are projects that should be on top of the list because of the urgent need for them, but they were at the bottom.
Arnaiz was dismayed when told by the representative that Canlas was attending a seminar, an “equally important event.”
“What equally important event? He is just attending a seminar and we are discussing here projects for 2013 that could benefit the people. I want to ask him who determines the projects?” Arnaiz said.
Rama supported Arnaiz’s demand because for Cebu City alone, DPWH proposed to earmark P640 million for flyovers and road widening, but only P15 million for drainage.
“We must tell DPWH that because of flooding, Cebu City needs drainage more than flyovers,” Rama said.
Rama said this can be avoided in the future if DPWH officials respect the Local Government Code, which provides that national government agencies should consult local government units (LGUs) during the planning and implementation of projects.
Sought for comment, District Engineer Nicomedes Leonor Jr. of the Cebu City Engineering District said there’s no need to delete the proposed flyover projects from the list.
“If the RDC wants to add more projects, they can do that. Remember that all the listed projects submitted to RDC are just proposals. There is no assurance how many of these projects will be funded because there’s no given ceiling for Cebu City,” Leonor said.
For his part, former Cebu City congressman Raul del Mar said in a text message to Sun.Star Cebu: “Of course we object to (the deletion of the flyover projects from the list) since the RDC in its last meeting held in Siquijor already approved the inclusion of the flyover projects in the list of projects for 2013 subject to the approval of the City Development Committee. So it is the approval of the CDC that we will be seeking in its next meeting.”
Del Mar said Rabacal was absent in that RDC meeting in Siquijor.
DPWH public information officer Marie Mignon Nillama said the two proposed flyovers for 2013 are still subject to budget hearing and there is no assurance that these will be funded by the National Government.
The two flyovers that were proposed for inclusion in the 2013 General Appropriations Act are different from the proposed flyovers at the corner of Gen. Maxilom and M.J. Cuenco Avenues in Barangay Carreta, and at the junction of Gorordo and Archbishop Avenues near the Asilo Church.
The proposed construction of the two flyovers became controversial when Mayor Michael Rama, environmentalists and stakeholders opposed them.
Also present in Thursday’s meeting at the Montebello Hotel in Cebu City were Representative Rene Relampagos (Negros Oriental, 3rd) and Representative Jocelyn Limkaichong (Negros Oriental, 1st).
Rep. Arthur Yap (Bohol, 3rd district) and Rep. Gabriel Luis Quisumbing (Cebu, 6th district) were also represented. (EOB of Sun.Star Cebu)

Published in the Sun.Star Cebu newspaper on June 15, 2012.

City, FLI not seeing eye to eye

By Elly T. Bolonos

Tuesday, June 12, 2012
FILINVEST Land Inc. (FLI) questioned the amount the Cebu City Treasurer’s Office is collecting from it for the City’s share in the sale of condominium units in their joint venture at the South Road Properties (SRP).
It also stood pat on its decision to withhold payment for the P245.2-million amortization for 2012 for the 10.6-hectare SRP lot it purchased from the City Government.

FLI replied yesterday to the demand letter of City Treasurer Ofelia Oliva, asking the firm to pay its obligation to the City.
The bill amounts to P845.2 million, including the P600 million that Oliva said is the City’s share in FLI’s earnings from the sale of condominium units in the 40-hectare joint development properties.
“We find the claims of the city treasurer on the amount due from the joint venture properties wrong and baseless. We would like to invite the city treasurer to review our sales and collection record so she can be guided on the correct amount of shares that the City ought to receive before she makes public pronouncements,” said Tristan Las Marias, FLI first vice president for the Visayas and Mindanao.
Up for discussion
However, he said the City’s share is still up for discussion.
Oliva said she will send examiners to FLI’s office.
As stated in the joint venture agreement, the City gets a 10-percent share from the sale of built-up units in the 40-hectare area, or a minimum guaranteed return, whichever is higher, which the City gets annually.
But if the minimum guaranteed return, which is the sale price of the land plus 20 percent, is higher than the City’s 10-percent share, FLI is obliged to make additional payments at the end of the five-year development period.
As for the P245.2-million amortization, Las Marias said FLI will not pay yet, arguing that it is not yet due and it also should not earn any interest.
Last Friday, Las Marias sent a letter to Mayor Michael Rama asking for a resolution from the City Council authorizing the mayor to sign and deliver the deed of absolute sale before FLI will release the payment.
Lis pendens
But in a letter sent to Oliva yesterday, he said FLI will not pay yet because the title the City will give the firm, in exchange for its payment, still has an annotation of levy relative to the Rallos claim.
He said Section 31 of the joint venture agreement entitles FLI to defer any payment in the event that there is an ongoing litigation on the titles and properties under the joint venture, “and this gives us the right to suspend payments until the litigation is finally settled.”
While he understands FLI’s obligation to the City, Las Marias said the City should also fulfill its obligation to deliver titles that are clean and free from claims, levies and encumbrances.
The titles of the joint venture properties were annotated “lis pendens,” meaning there is a pending litigation involving the properties, as a result of the City’s court battle with the Rallos heirs.
The City Legal Office, though, already filed a motion for cancellation of memoranda of encumbrances and notice of lis pendens at the Regional Trial Court (RTC) Branch 9 two months ago. The motion is still pending.
In a phone interview, Oliva clarified that as treasurer, it is her responsibility to send demand letters or billings to FLI.
“Whatever I am supposed to do, I will do it. They shouldn’t blame me for sending them demand letters because that’s part of my job… Dili nako concern ang legalities ana, ang ako lang nga gipadalhan nako sila og bill (The legal aspect is not my concern I just sent FLI the bill) as part of my job and if they will pay, well and good. But if they don’t, it’s the problem of the City Legal Office, it’s not mine,” Oliva said.

Published in the Sun.Star Cebu newspaper on June 12, 2012.