BusinessWeek Mindanao (January 10-11, 2014)

BusinessWeek MINDANAO

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Volume IV, No. 48

Market Indicators

As of 6:12 pm jan. 9, 2014 (Thursday)

FOREX

PHISIX

US$1 = P44.68

5,937.51 points

2 cents

X X Briefly 48.97 points

DFA-Centrio THE Department of Foreign Affairs (DFA) is making it easier for people seeking passport and other consular services by inking an agreement with two more mall operators for the hosting of its satellite offices.

On Tuesday, the DFA signed a memorandum of agreement with Ayala Land’s Cagayan De Oro Gateway Corp. (CDOGC) and Araneta Center, Inc. The first MOA was inked

by DFA Secretary Albert del Rosario and Maria Rowena Manhit-Tomeldan, director of CDOGC. The agreement enables the DFA to transfer its Regional Consular Office in Limketkai Complex to the 3rd Floor of Ayala Centrio Mall in the 2nd quarter of 2014. This is the 2nd DFA consular office to be hosted by Ayala Land.

Mindanao museum DAVAO City -- An official of the Department of Tourism revealed a move to make museums as part of its communication plan for Mindanao.

Assistant Secretary Arturo Boncato, Jr. said it is his special project as the first assistant secretary to be based in Mindanao.

He said that currently, Mindanao has 91 museums including the newly-opened Davao Oriental Provincial Museum also called as Subangan, more than the number of museums in Metro Manila.

Boncato said the Department of Tourism wants the museums to be its inanimate spokespersons.

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Irrigation projects cited as ‘less than efficient’ T

By GRACE BEBER, Staff Writer

HE Asian Development Bank (ADB) has labelled the Southern Philippines Irrigation Sector Project (SPISP) as “less than efficient” following delays experienced in undertaking them.

MISHANDLED. The Asian Development Bank (ADB) has expressed dismay over the inefficient handling of irrigation projects in Mindanao. The lack of irrigated lands planted to rice is the key reason for the Philippines’ inability to catch up with neighboring countries like Vietnam in producing enough of the staple for Filipinos, the National Rice Farmers’ Council (NRFC) said.

P125M agreement for Ozamiz airport modernization signed

By RUTCHIE C. AGUHOB, Contributor

OZAMIZ City – A P125 million memorandum of agreement (MOA) for the mo dernization and improvement of the Ozamiz Airport will be entered into by the City Government with the Department of Tr ans p or t at i on an d Communication (DOTC).

The Ozamiz City Sangguniang Panglungsod

In its evaluation report released last week, the Manila-based ADB said t h e d e l ay s c au s e d t h e SPISP to complete only five subprojects of the 11 it proposed despite two loan extensions granted to the National Irrigation Administration to complete the project.

“Even with two loan closing-date extensions that lasted for a total of f ive ye ars , t he proj e c t failed to completely meet its performance targets,” the ADB said.

“Despite these extensions, on l y f i v e s u b - proj e c t s

were finished. The relative inefficiencies of the infrastructure development have been overshadowed by this validation, therefore, assesses the project less than efficient,” the report said.

The ADB said the initial objectives of the project, which was approved in 1998, were to raise the per-capita income in the project areas from P8,000 to P12,500 (at 1998 prices) by 2005 in the Autonomous Region of Muslim Mindanao and Caraga region, as well as Central and Western Visayas provinces, covered by the project.

The project also aimed at increasing the production of rice from 21,000 metric tons (MT) to 133,000 MT, and increase the production of vegetables and other horticultural crops from 5,000 MT to 19,000 MT by 2005.

However, delays forced the government to scale d ow n t he t arge t of 1 1 sub-projects, covering a potential service area of 11,279 hectares. The physical infrastructure component of the project completed only five sub-projects.

This included three core sub-projects, the Calayagon CIS, Can-asujan SRIS and Gibong Right Bank, as well as two non-core subprojects, the Aclan Amontay CIS and the Dauin SRIS. The ADB said that as of June 2010, completion projects/PAGE 7

(SP) passed Resolution No. 270-13, allowing Mayor Reynaldo O. Parojinog, Sr., to sign the MOA with D OTC, repres ente d by Assistant Secretary for Project Implementation, Ildefonso T. Patdu, Jr. for modernization and improvement of the existing Ozamiz Airport, included among the priority ozamiz/PAGE 7

PCCI head urges gov’t to lift constraints to high growth T H E e c o n o my s h o u l d continue its momentum for long-term high growth, but the government should implement measures to lift constraints make that growth inclusive, according to the head of the Philippine Chamber of Commerce and

Industry.

“Indeed, while our economy is riding high with more than 7% in GDP growth over the last three quarters and the industr y sector experiencing gradual revival, decisive action is needed to pcci/PAGE 7

SHUT UP! Davao City Mayor Rodrigo Duterte tells the Commission on Human Rights to shut up when the CHR said his death threats to rice smugglers was “unethical” and “unbecoming of a public official.” He is shown here speaking to reporters in Davao City. mindanews photo

Mindanao Daily NEWS northmin . westmin . caraga . davao Your Mindanao-wide Community Newspaper

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Intensive Care Unit sought for city hospital in CDO A CAGAYAN de Oro city councilor on Wednesday sought for the establishment of an “Intensive Care Unit” (ICU) in the city-owned J. R. Borja General Hospital here after a child died for lack of

medical services.

City Councilor Candy Darimbang said that a sevenyear old boy who was infected with “dengue” died at the city hospital for lack for medical sought/PAGE 6

Economy

Advertising and Editorial E-mail : businessweekmindanao@gmail.com Contact nos. : 0917-7121424 • 0947-8935776 Editor: Nelson Constantino

MisOr gears up for 1st Kuyamis Festival THE province of Misamis Oriental (MisOr) in its vision to build up and repackage its agriculture and tourism industry, highlights the start of the year with a three-day festivity dubbed Kuyamis Festival.

Just in time for its 84th MisOr Week every first week of the year, the provincial government has come up with the Kuyamis Festival to perk up the locals, business and tourism industry with the theme “Agro-Turismo sa MisOr Ipalambo.”

Set on January 8 to 10 this year at the Provincial Capitol Grounds here, the festival promises various

line up of activities including Coconut Products Display, Photo Exhibit, Sports Fest and Business Bazaar.

According to MisOr Provincial Tourism Officer Robert Maestre, Kuyamis was the original name of Misamis. It is a variety of sweet coconut found in the province and described it as a Golden Malayan Dwarf Coconut Tree, part of the

Cocus Nusifera family.

He added that aside from branding the activity Kuyamis, the provincial government intends to develop the coconut industry since according to the Philippine Coconut Authority (PCA) statistics, Misamis Oriental is the 5th major producer of coconut in the country.

There will be prizes to local government unit (LGUs) participants and will be used to enhance coconut

productivity and livelihood.

Moreover, he explained that this festivity is associated with the founding of the Province on January 1, 1930 as separate and independent l o c a l gove r n me nt u n it through Republic Act 3537 enacted by the Philippine Legislature on November 2, 1929.

He added that since then, every first week of January of each year is dedicated to commemorate the birth of Misamis Oriental.

DOST invites inventor students, professionals to RICE THE Department of Science and Technology Regional Office No. 10 (DOST-10) is calling on interested Filipino professionals and students with research projects, inventions, prototyp es, i ndust r i a l d e s i g ns and software applications related to science, technolog y, eng ine er ing , me dicine, health and the environment to join the Regional Invention Contest and Exhibits (RICE).

DOST Region 10 Director Alfonso Alamban says that this Regional Invention Contest and Exhibits (RICE) will be held on January 15-17, 2014 at the SM City Event Center, Cagayan de Oro City.

RICE, with its theme, “Science, Technology and

Innovation: The Road to Smarter Philippines,” aims to recognize the outstanding local inventions, innovations, researches and utility models with significant and potential contribution in the development of the industry and the economy.

By showcasing them in a conducive venue, these products of Filipino ingenuity and inventiveness will gain public awareness and thereby bring in potential inventors and commerci a lizat ion partners.

RICE contestants will be vying for the following categories: Outstanding Inventions (TUKLAS AWA R D ) , O ut st and i ng dost/PAGE 6

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Opinion

Towards a Strategy of Survival, Stability and Growth for our Coconut Industry

DANTE M. SUDARIA Publisher ROSE MARY D. SUDARIA, Ph.D. General Manager

NELSON CONSTANTINO Editor-in-Chief

ALLAN MEDIANTE Executive Editor

Shaun Uy

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How to Have It All THINK

hink a minute…There was a rich English Baron A Minute named Fitzgerald who had By Jhan Tiafau Hurst only 1 child, a son. Fitzgerald’s only son was the love and pride of his parents. But when the son was just a boy, his mother died. He and his father became even closer. Meantime, Fitzgerald had become much richer. He collected ver y expensive, valuable paintings by the famous artists of the world. Then, just 2 years after losing his wife, Fitzgerald’s son became sick and died as a young boy. Before Fitzgerald himself died years later, he carefully wrote his will and instructions on how his riches were to be handled. He wanted an auction to sell all of his valuable paintings. They were worth millions of dollars, so many rich people from all over Europe came to the auction.

Among all the valuable paintings, however, was 1 cheap, poor quality painting by an unknown local artist. It was a painting of Fitzgerald’s only son. Fitzgerald had ordered that this painting of his son be sold first before any of the other expensive paintings. Yet, because it was of such poor quality no one wanted to buy it. Finally, an old servant of Fitzgerald who had known the son and loved him offered to by the ugly painting for only a couple of dollars.

Then, before they continued to sell all the expensive, valuable paintings, the lawyer read out loud from Fitzgerald’s will. Fitzgerald had written: “Whoever buys the painting of my son also gets everything else that I own. The auction is now over.” That old servant who truly loved Fitzgerald’s son got everything! All of Fitzgerald’s valuable art, money, houses, land, the servant got it all!

Remember, God said that if we love and live for Jesus Christ, God’s only Son, then we also will become God’s children and have all that God has to give us. But you and I must choose to love Jesus and live His way every day, instead of our own way. Jesus said that’s the only way you and I can have it all. So why not become God’s son or daughter today? Simply ask Jesus to take full charge of your heart and way of living, for the rest of your life.

Just Think a Minute…

A re-engineered coconut industry in the Philippines ensures that the toiling farmers are empowered.

Such is a sense of dignity that comes with being real owners and operators of highly profitable social enterprises that industrialize the rural areas, in the process creating massive employment and income opportunities for the rural population. Only then can we hope to put a stop to the continuing exodus of rural labor to the urban centers.

LOST in the euphoria over an economy growing 7% is the grim reality that our coconut industry has again fallen into the doldrums.

The price of copra has reportedly dropped to Php14.00 a kilo in many parts of the country.

The situation could be worse in Northern Samar, a hotbed of insurgency. In November last year, Rep. Emil Ong, as quoted by the PDI (Nov. 19, 2012), reported that a kilo of copra fetched only Php4.00 in the barangays and Php7.00 in the towns across the province. Where do these prices leave some 3.5 million of our coconut farmers?

An average farm in the country is said to have 100 trees per hectare, each fruit-bearing tree yielding an average 40 nuts per year. Assuming all 100 trees are fruit-bearing, this means a total of 4,000 nuts harvested per year. At 4 nuts to a kilo of copra, the average farm would, thus, make 1,000 kilos of copra each year. At Php14.00 per kilo, this means an annual gross revenue of Php14,000.00.

On the other hand, actual data collected reveal that the farmer spends at least Php1,200.00 to harvest 4,000 nuts, Php320.00 to gather the nuts, Php520.00 to haul, Php400.00 to dehusk, Php400.00 to remove the meat from the shell, Php640.00 to cook the meat, and Php1,000.00 to transport the dried copra to the town trader. All in all, the farmer’s cash-out comes to P4,480.00 per hectare, leaving him with Php9,520.00 in net income.

If the farmer were a share tenant, which is a predominant tenurial arrangement in many parts of the country, he or she shares at least 50% of the net income with the land-owner. And this leaves the farmer with only Php4,760.00.

Truly, it baffles the mind just how an average farm family of 5 members survives with Php9,520.00 a year, or Php4,760.00 if it were a share tenant. No wonder, then, that the coconut industry is home to legions of the poorest of our poor.

Diagnosis

The recent nosedive of domestic copra prices is clearly an offshoot of slack demand for our coconut oil in the export market.

Such phenomenon has bearing on the raging economic crisis besetting

SPECIAL FEATURE By: REYNALDO B. ALMENARIO, BENJAMIN S. RAÑESES, JR. AND WILLIE CHUA our major buyers in the US and Europe.

Another reason is that the coconut oil into which the bulk of our copra is converted as final product competes stiffly with other oil products. There is soybean oil supplied by the US, and there is the cheaper palm oil of Malaysia.

Prognosis

It is difficult to predict just when the international demand for coconut oil will recover, if at all. It is as difficult as predicting when the American and European economies will recover. What is certain is that, at the prevailing depressed prices of copra, rural poverty is bound to magnify and intensify, arising from continuing inflation coupled with massive underemployment in the rural areas.

Already, some lawmakers warned of a brewing social upheaval if nothing immediate is done to address the situation obtaining in 68 major coconut-producing provinces.

Poverty breeds social discontent and only more so if government does nothing concrete to address it. As our experience has demonstrated, poverty and the social discontent it brings are the classic recruiters of insurgents.

Meanwhile, rural poverty and helplessness would fuel outmigration to the urban centers even more. This, in turn, would intensify urban congestion, traffic congestion, squatting, mounting garbage, even criminality and prostitution. A favorite destination of out-migrants in search of livelihood, Metro Manila stands to receive the brunt of these social costs.

What can be done

The recurrent crisis befalling our coconut sub-sector underscores the need to re-engineer the industry in ways that reduce its vulnerability to wild fluctuations characterizing coconut oil prices in the world market, on the one hand, and secure a decent, human living for small coconut farmers, on the other.

Reducing the vulnerability of the industry to price fluctuations requires that we rethink our strategic direction with respect to the array of products we turn out from coconut.

Until today, coconut oil remains the industry’s largest exports. Although the country is an export leader in coconut, sharing almost 60% of all coconut products traded in the world market, we still face competition not only from other coconut producing countries but also from a major soybean oil producer like the US and a major palm oil producer as Malaysia. As such, we will always face stiff competition from soybean and

palm oils, both of which command relatively lower prices compared to coconut oil.

But our coconut is a versatile resource, capable of being turned into a wide array of products highly marketable in both the domestic and export markets. Products into which soybean and oil palm can never be converted. Products in which we possess almost an absolute advantage.

For instance, there is no way that soybean and oil palm can be converted into medicinal virgin coconut oil, medicinal skimmed milk, coconut flour, coco coir, geo-textile, cocopeat, coco sugar, coco ice cream, to name only a few.

Today, we are privy to the huge international demand for coconut water as popular beverage. What was considered a by-product in the making of copra, even a waste to dispose of, the beverage that is coconut water now fetches around US$1.10 per liter or Php40.00, FOB Manila. Giant global companies like the Brazil-based Vita Coco and Pepsi Cola are on the lookout for domestic suppliers of coconut water and are willing to enter into tolling arrangements. The Filipinoowned Fiesta Brand in Medina, Misamis Oriental is now producing the beverage for Vita Coco.

Wit h t his de velopment, there has emerged the need for an integrated coconut processing system.

One that is capable of processing, largely under one roof, not only the coconut water into beverage but also the coconut meat into high-value and highly marketable products such as virgin coconut oil, skimmed milk and coconut flour; the shell into granulated charcoal and, further, into activated carbon; and the husk into highly marketable cocopeat and coco coir and, further, into geo-texttile.

These are products long produced locally, but production has been largely fragmented as opposed to integrated.

Interestingly, technological breakthroughs have made it possible to tap the heat generated from the burning of coco shells, channel this into a steam turbine, and convert the steam into coco gas. The latter is a clean source of power that can fully energize the integrated processing plant, thereby saving on power cost tremendously. This would, thus, sig nif ic ant ly lower pro duc t ion costs, improving necessarily our competitiveness.

The integrated regime envisioned will utilize the wet process and, thus, do away with copra. The latter is what has been alluded to as source of aflatoxin allegedly present in our coconut oil. Truly, what quality can we expect from copra that is sun-dried largely in open spaces and, thus, exposed to all kinds of dirt from animal and human sources? With an integrated regime, trading of coconut would hitherto be purely in kilonuts, no longer in terms of copra. This is clearly advantageous to coconut farmers, enabling them to save on labor costs involved in copra-making.

To some extent, an integrated coconut processing system has been on-going in the country. A case in point was the defunct Coco Manila that used to manufacture, under one roof, desiccated coconut, virgin coconut oil (VCO), skimmed milk and coconut water. Later acquired by GEMA Coco, the company produced vco, skimmed milk and coco cream.

But, then and now, there has existed no domestic company engaged in zero waste processing, that is to say, utilizing the entire coconut to turn out all products possible.

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CorporateWorld 5 CebuPac buys Tigerair to strengthen hold as biggest low-cost airliner SM Megamall to reclaim title as PH’s biggest mall YOUR LOCAL ONLINE BUSINESS PAPER

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TWO of the region’s biggest budget airlines – Tigerair and Cebu Pacific (CEB) – have forged a deal to create the largest low-cost carrier (LCC) network between Asia and the Philippines, top executives said.

The alliance will combine their f leets, which will now number 100 aircraft – half from CEB and half from Tiger Air, to cover 48 international destinations in 18 countries, including high-growth markets such as China, India, Myanmar, Japan and Australia.

CEB To Acquire Tigerair PhilippinesAs part of the de al, CEB will acquire 100 percent of Tiger Air Philippines, including the 40 per cent stake of Tigerair Singapore (worth S$7.0 million or P246.5 million), for a total of S$15 million or P528.2 million (S$1: P35.211).

As of the third quarter of l ast ye ar, Tiger Air

Philippines lost S$84 million or P295.7 million.

“We will retain its Airline Operator’s Certificate (AOC), flight schedule, management team and workforce and operate it as an independent franchise which will grow into a long-term viable business,” according to CEB President and CEO Lance Y. Gokongwei.

CEB expects to close the $15-million purchase either by the end of next month or March this year, “dep ending on var ious approvals required” and will fund the amount from their current cash balances.

The transaction requires two approvals: first from the Singapore Stock Exchange to close CEB’s acquisition of Tiger Air Philippines and second, the approval for the common routes of the two airlines – a separate process which could take “a few months.” cebupac/PAGE 6

SM Prime Holdings Inc later this month will open to the public a new wing of SM Megamall, set to become the Henry Sy-led firm’s biggest shopping mall in the Philippines.

SM Prime vice president for finance Teresa Cecilia R. Agsalud said the company will open Building D of SM Megamall on January 28.

The new wing was supposed to have opened last year, but the country’s biggest mall operator and developer decided not to rush it because the development was not expected to contribute significantly to its financial performance in 2013, SM Prime chief financial officer Jeffrey Lim said.

“We’re just waiting for some of the tenants to be ready...Some of the flagship stores are H&M and Zara,” Agsalud said. The H&M

outlet in SM Megamall will be the popular fashion brand’s first store in the Philippines.

The expanded SM Megamall will have a gross floor area of about 500,000 square meters, dislodging SM Nor t h Eds a as t he company’s biggest mall in the Philippines, Agsalud said.

L a st Nove mb e r, SM Prime announced it would spend P23 billion in 2014 for its mall business in the Philippines. It will build new shopping centers in Cauayan, Isabela and Angono, Rizal, while expanding its malls

in Bacolod and Lipa.

By the end the year, SM Prime will have a network of 50 malls in the Philippines with a gross floor area of 6.6 million square meters.

SM Prime will also beef up its presence in China with the launch of a new mall in Zibo within the Shandong province this year. The sm/PAGE 6

560 pupils get 100% insurance policy

By MAUREEN E. OLARTE Teacher-III Luz Banzon Elementary School

AT least 560 pupils from Luz Banzon Elementary School in Jasaan, Misamis Oriental are now enjoying a full insurance coverage through the initiative of the barangay council.

Based on record from the Basic Education Information System (BEIS) for school year 20132014, the Barangay Council of Brgy. Luz Banzon has awarded 560 pupils in said school with a one-year coverage insurance policy. It was turned-over to the school officials on January 6, 2014.

The provision of insurance benefits to the pupils is one of the projects of the Brgy. Council led by Barangay Chairman Bene B. Pagaspas.

The premium of the insurance policy of P35/ students was shouldered by the Barangay Council as part of their tasks to help their constituents in case of medical emergencies.

Chairman Pagaspas said the Council paid the total amount of P19,600 for the pupils’ premium.

The approval was based on the request of Pastor Shiem Alisoso, a concerned parent and School Principal Mr. Manolito V. Sale, Sr. who sought financial assistance to cover the premium of pupils’ insurance policy.

The parents and school officials cited the safety of the school children who are joining various activities organized by Department of Education (DepEd) such as athletics, scouting and outreach programs, as well as academic competitions that requires their full participation.

Furthermore, the life insurance covers accidental death, permanent disablement, unprovoked murder, accident medication reimbursement, burial benefits, natural death, 15-DHI, Acc., 5-DHI, illness, ambulance and fire. It is one way of the barangay’s major poverty alleviation initiatives in terms of medical expenses which is part of the 2014 barangay council flagship programs.

MISAMIS ORIENTAL – Vice Governor Joey G. Pelaez, Hon. Arsenio Kho, Jr. and Hon. Mario Charlie Emano were present during the 2014 1st Regular Session of the Sangguniang Panlalawigan of Misamis Oriental at N Hotel, Kauswagan, Cagayan de Oro City last January 6, 2014. During the Session, Hon. Kho was recognized as the representative of the ABC in a holdover capacity pending the submission of the confirmation of Hon. Emano by the National Liga ng mga Barangay.

GLOBE Philippines Launch

Misamis Oriental Governor Yevgeny “Bambi” B. Emano with Senator Cynthia A. Villar formally opens the 1st Kuyamis Festival with the ceremonial cutting of the ribbon at the Provincial Capitol Grounds, January 8, 2014.

Photo by ARJAY FELICILDA

Congressman Rufus B. Rodriguez speaks before fellow legislators and other stakeholders including representatives from the British Embassy and the European Union during the recent launch of the Global Legislators Organization (GLOBE International) Philippines chapter. GLOBE is an international organization comprising national parliamentarians from over 70 countries that are committed to finding legislative solutions to the challenges posed by climate change and sustainable development. Cong. Rodriguez was one of the founding members of GLOBE Philippines and is one of the most ardent supporters of initiatives to combat the harmful effects of climate change.

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PNP National Advisory Group Meeting Cong Rufus Rodriguez addresses the National Advisory Group (NAG) of the Philippine National Police headed

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facilities especially the ICU where the patient could have been attended.

“Considering that the city government has promised to provide better health services to the poorest of the poor in the city, the incident was very frustrating,” Darimbang told members of the City Council during the regular session here.

Had there been an ICU unit at the city hospital, the death of the boy would not have happened, Darimbang added.

She said that she would pressure the city council and the city government to put up an equipped ICU unit at the city hospital in order that the hospital could the less fortunate city residents.

According to Darimbang, the private hospital here would not admit poor patients who could not provide down payment.The city government created the hospital primarily with a mission to serve the poorest of the poor in the city, she said. (PNA)

DOST... from page 2

Utility Models, Outstanding Industrial Designs, Outstanding Creative Researches (LIKHA AWARD) and Outstanding Student Creative Research (SIBOL AWARD) for High School and College Students.

T h e re w i l l b e t h re e winning entries for each category and winners will receive corresponding cash prize.

The cash rewards that aw a i t w i n n e r s f o r t h e Outstanding Inventions (TUKLAS AWARD) are: 25K, 1st prize; 15K, 2nd prize; 10K, 3rd prize.

For the Outstanding Utility Models, winner will be rewarded with 20K, 1st prize; 10K , 2nd prize and 5K, 3rd prize.

Winners for the O ut st and i ng Indust r i a l Designs will be given 20K, 1st prize; 10K, 2nd prize; 5K, 3rd prize.

For the Outstanding Creative Researches (LIKHA AWARD) awardees will get 20K, 1st prize; 10K, 2nd prize; and 5K, 3rd prize.

In the student categories, cash prizes of 20K, 1st prize; 10K, 2nd prize; and 5K, 3rd prize each will be awarded to t he winners for t he Outstanding Student Creative Research (SIBOL AWARD) for High School and Outstanding Student Creative Research (SIBOL AWARD) for College Students.

Winners will represent Region 10 in the 2014 National Invention Contest and Exhibit (NICE).

Aside from the Regional Invention Contests, 2013 RICE will also feature a forum on Intellectual Property Rights and Protection.

CebuPac... from page 5

Still, the name of the game today is integration for airlines who want to pare down costs and achieve economies of scale.

Hence, CEB and Tiger air will now brand themselves as each other’s partner while Tigerair Philippines will initially continue to operate under the Tigerair brand for one year.

Both Tigerair and Cebu Pacific websites will be used as sales and distribution platforms to market all routes operated by both airlines.

The carriers also expect to collaborate on other common destinations in the region.

Both carriers will jointly sell and market their routes using codeshare and interline arrangements, expanding their network coverage and enhancing connectivity. CEB has no plans of reducing its capacity or that of Tiger Air Philippines.

For passengers, the alliance of the two airlines will mean more of travel options, more convenient flying times and seamless connections at low fares.

To illustrate, Filipinos can now have stronger links to India and its Business Process Outsourcing sector, with 30 destinations added to the

route of the combined LCCs at three to four times lower fares than regular.

At pre s e nt , Ti ge r ai r Philippines averages 102 flights per week with five aircraft to 12 domestic and international destinations from its bases in Manila and Clark.

T h e Ti ge r ai r Group operates a fleet of 50 Airbus A320-family aircraft, averaging less than three years old and covers four airlines: Tigerair Singapore, Tigerair Mandala, Tigerair Philippines and Tigerair Australia.

Its collective network extends to over 50 destinations across 13 countries in the Asia Pacific.

CEB currently operates 2,200 average flights per week with 48 aircraft, one of the youngest aircraft fleets in Asia, to 24 international destinations and 33 Philippine cities in its network.

Between 2013 and 2021, CEB will take delivery of 15 more Airbus A320, 30 Airbus A321neo, and 4 Airbus A330 aircraft.

B y c om bi n i n g t h e i r resources, CEB can provide ser vices to high growth markets including Australia and India. Tigerair can fly more passengers to additional cities in CEB’s extensive network in the Philippines and North Asia.

The arrangement enables both airlines to deploy capital

more efficiently.

“CEB and Tigerair can leverage on our extensive networks spanning from North Asia, ASEAN, Australia, India, all the way to the Middle East,” Gokongwei reiterated.

Joined, “Tigerair and CEB can compete more effectively in the regional market,” stressed Tigerair Group CEO Koay Peng Yen. “It’s a win-win partnership.”

Subject to regulator y approval, the alliance will jointly operate common routes to and from Singapore and the Philippines.

SM...

from page 5

company already has five shopping centers in the cities of Xiamen, Jinjiang, Chengdu, Suzhou and Chongqing with a total gross floor area of 0.8 million square meters.

SM Prime’s mall operations booked a net income of P8.43 billion in the nine-month period ending September, up 14 percent from P7.40 billion in the same period last year.

Last year, SM Prime unveiled SM Aura Premier in Taguig and SM City BF in Paranaque to end 2013 with 48 malls in the Philippines and five in China.

SM has consolidated the property companies and assets of the Sy family under SM Prime, thereby creating Southeast Asia’s biggest real estate firm.—InterAksyon

CAGAYAN DE ORO MAIN BRANCH P & J Lim Bldg., Tiano Brothers Kalambagohan Sts., Tel. # (08822) 727-829 * Telefax # (088) 856-1947 CAMIGUIN BRANCH B. Aranas St., Poblacion, Mambajao, Camiguin Tel. # (088) 387-0491 CORRALES BRANCH Corrales Ave., Cagayan de Oro City DIVISORIA BRANCH Atty. Erasmo B. Damasing Bldg., #61 Don A. Velez St., Cagayan de Oro City Tel. # (088) 857-3631 LAPASAN BRANCH Lapasan Hi-way, Cagayan de Oro City Tel. # (088) 231-6739 CARMEN BRANCH Vamenta Blvd., Cagayan de Oro City Tel. # (088) 231-2011

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Projects... from page 1

rates of the six others only ranged from 89 percent to 98 percent. The irrigation systems covered a total of 11,064 hectares, or 5,040 hectares during wet season and 6,024 hectares during dry season, which translated to a low cropping intensity of 98 percent. “ The PCR [project completion report] attributed the delayed completion to poor engineering designs on account of poor site investigations, increased cost of materials and disrupted liveli ho o d ac t ivit ies of af fe c te d far mers, t hus, impairing their capacity to contribute to the equity requirements,” the ADB said.

“A t c o m p l e t i o n , re c a l c u l at e d e c on om i c internal rates of return yielded 10.1 percent for Calayagon CIS as against 17.1 percent at appraisal, and 8.5 percent for Canasujan SRIS compared to the appraisal rate of 18.9 percent,” it added.

The ADB said despite the extensions, the construction or upgrading of 60 kilometers of access road by 2005 exceeded its target with 127 km of service roads constructed and/or upgraded. The PCR reported that access roads lowered transport costs by 40 percent.

The Manila-based multilateral bank also said the project “erroneously projected” that farmers could contribute 25 percent of the capital cost of the irrigation systems without conducting a thorough assessment of their paying capacity.

The wrong projection, the ADB said, caused resource limitations that made funds insufficient for routine and periodic maintenance of the infrastructure built under the project. The ADB also said “these reinforced the possibility that full production and productivity gains envisioned at appraisal were not forthcoming in the near term.”

The $ 102-million project is financed by a $ 60-million loan from the ADB and counterpart funds of $ 33.09 million. However, during the course of the project, the total project cost was pegged at $ 80.94 million, financed by a $ 50.01-million loan from the ADB and $ 29.95 million counterpart funding.

Approved on December 18, 1998 and signed on March 1, 1999, the loan became effective by May 30, 1999. The initial closing date for the loan was on June 30, 2006, but was extended to the actual closing date of June 30, 2011.(PNA)

Ozamiz... from page 1

projects of the National Government, with DOTC providing the funds for the project.

Among others, the MOA tasks the City Government to draw and provide for the operating standards

and guidelines for t he acquisition of lots affected by the project according to existing governing laws, rules and regulations.

Another task of the LGU is to clear the airport site f rom dwellers and closely coordinate with the National Housing Authority (NHA) in the establishment and development of the prov i s i o n o f a d e q u at e facilities and services and facilitate the liquidation of funds transferred to it in accordance with existing rules and regulations of the Commission on Audit (COA).

Meanwhile, the DOTC, subject to existing laws, rules and regulations, shall facilitate the transfer to the City Government, the amount of P125,000,000 for the operational expenses of t he City relat ive to clearing and acquiring the lots of the airport project site, conversion of lot from agricultural to commercial, securing environmental clearance, and relocation and resettlement undertaking.

The transfer of funds shall be made in two tranches: first trance, P62,500,000 upon signing of MOA and second trance, P62,500,000, upon full liquidation of the previous release.

Likewise, DOTC shall have the right to exercise au d i t o r i a l p ow e r ov e r the expenditures for lot acquisition and resettlement and coordinate and monitor the activities in accordance with the Program of Work.

7

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PCCI... from page 1

keep the momentum going,” PCCI president Miguel B. Varela said.

In his statement at the year-end conference of the PCCI, Varela noted the Asian Development Bank and World Bank have observed the growth has not really translated to quality and better jobs.

To remove the constraints to inclusive growth, he urged specific reforms such as: • Ensuring the adequacy and cost-competitiveness of fuel and electricity to power the growth of business and industries; • Rehabilitation, expansion and modernization of airports and seaports to accommodate the growing number of tourists and travellers and rising volume of traded good domestically and internationally; • Construction of roads, rails and bridges with a priority given to linking airports and seaports to cities and key destinations and farm-to-market roads; • Streamlining business permits and licenses to facilitate the entry of investments as well as encouraging micro and small industries to be registered into the mainstream economy; • Improving customs administration and procedures to facilitate trade while improving border controls; • Strengthening our capacity to participate in regional trading activities including enhancing the country’s international market intelligence and networks; • Improving education

standards and enhancing the current curriculum based on market analysis and emerging trends, giving priority to industry needs; and • Promoting competition to seize the benefits of expanding and liberalizing trade and investment environment, specifically the AEC 2015 and possible new free trade agreements such as the RCEP and the TPP. “Certainly, the rosy picture painted by our economic managers cold result in the transformation of the Philippine economy into a powerhouse economy if the government, with the support and partnership of the private sector, is able to address the constraints to growth.” Varela said.

He said the rising cost of fuel and electricity was an annoying issue, but the core issue to be resolved was to ensure the adequacy, reliability and reasonable pricing of energy.

The rate hike by Meralco, he said, would hurt consumers, and, particularly in the emergency meeting of PCCI on the Meralco rate increase issue, the exporters were among the most vocal about the impact on their competitiveness in the global market.

“Open access, which has earlier been touted as something that could help large users, will not be much help as there is not enough power supply, a situation that has come to the fore with the latest increase in rates’” he said.

The coming year, he said, is critical year for action that requires decisive movement on variety of issues such as rebuilding the devastated cities and towns in the Visayas following the visit of super typhoon.

HAPPY NEW YEAR! Greetings from...

Republic of the Philippines REGIONAL TRIAL COURT 10TH Judicial Region Branch 28 Mambajao, Camiguin IN THE MATTER OF PETITION FOR MISC. CASE NO. 130 RECONSTITUTION OF DECREE NO. 409267 LOT 5111; DECREE NO. 409268, LOT 5112; DECREE NO.409129, LOT 4967; DECREE NO. 409144 LOT NO. 4983; AND DECREE NO.409145, LOT NO.4984, OF THE LAND REGISTRATION AUTHORITY/ REGISTRY OF DEEDS OF CAMIGUIN, CESAR O. JACOT,

Petitioner,

ATTY. ALMA CONCEPCION M. PARREÑO, In her capacity as Ex-Officio Register of Deeds of Camiguin.

X------------------------------------------------------------------/// ORDER Let this case be set for hearing on March 4, 2014 at 8:30 o’clock in the morning, at this court. Persons interested in this petition are required to answer and appear before this court on the aforesaid date and make known their opposition thereto.

Let copy of this Order be published at petitioner’s expense once a week for three consecutive weeks prior to the date of hearing in any newspaper of general circulation in the Province of Camiguin.

For a period of fifteen (15) days prior to the date of hearing, at the expense of the petitioner,let a copy of this order and of the petition be posted at the bulletin boards of the entrance door of this Court, Hall of Justice, Mambajao, Camiguin, Public Market, Catarman, Camiguin; Municipal Hall, Catarman, Camiguin; and Provincial Capitol, Mambajao, Camiguin.

SO ORDERED. Mambajao, Camiguin, October 22, 2013.

(Sgd.) JEOFFRE W. ACEBIDO

Acting Presiding Judge BWM: Jan. 10, 17 & 24, 2014

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Globe Telecom’s Peter Bithos hailed as I.T. Executive of the Year

Globe Telecom’s Chief Operating Advisor Peter George Bithos was cited as I.T. Executive of the Year by Cyberpress, an organization composed of information technology (I.T.) journalists from the print and online media in the Philippines.

Bithos bested Lonson Alejandrino of Cherry Mobile, Michael Ngan of Lenovo Philippines, Earl Valencia and Marthyn Cuan of Ideaspace, and Undersecretar y of the Department of Budget and Management Bon Moya to win the muchcoveted plum.

Bithos was instrumental in steering growth and profitability of the company’s mobile and broadband businesses with an innovative product portfolio and a sound strategy to drive superior customer exp erience.

Under his helm, mobile subscriber base has grown by 14% as of endS e pte mb e r l a s t ye ar, reaching 36.5 million.

Broadband customer base has reached 1.9 million with a 15% increase from previous year.

In 2013, Bithos led the successful launch of the company’s partnership with leading global over-the-top (OT T) player Viber to offer subscribers a richer messaging experience.

Under Bithos’ leadership, Globe also forged a worldfirst collaboration with Facebook to offer its prepaid and postpaid

subscribers free access to the social networking site alongside customer service innovations that address fear of mobile browsing.

Prior to joining Globe in 2010, Peter spent five years with SingTel Optus in Australia where he was most recently the Chief Executive Officer of Optus’ subsidiary Virgin Mobile

Australia. Over his tenure at SingTel Optus, he held executive positions cutting across P&L leadership, operations, strategy and M&A. Other awards handed out were I.T. Company of the Year, I.T. Product of the Year. I.T. Start-up of the Year, I.T. Story of the Year, and the Lifetime Achievement Award.

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VP BINAY THANKS PRIVATE SECTOR FOR HELP IN HOUSING PROGRAMS FOR YOLANDA VICTIMS Vice President Jejomar C. Binay Thursday thanked the private sector for continuing to support government programs to provide homes for Yolanda survivors.

“We are grateful for the steadfast support of the private sector for our housing programs for the families affected by Typhoon Yolanda,” Binay said.

“I am confident that through our concerted efforts, we will be able to fast track the building of quality and climate resilient homes for survivors of the recent calamities,” he added.

The National Housing Authority (NHA) signed a Memorandum of Agreement with GMA Kapuso Foundation, Inc. (GFKI), and the local government units (LGU) of Palo and Tacloban to build 600 housing units in Brgy. New Kawayan, Tacloban City and Brgy.

San Jose, Palo, Leyte.

The housing units, which GKFI will fund and build, will be constructed following the “Build Back Better” design parameters set by NHA. The parameters include gender sensitivity, emergency design concepts, and stronger structural elements to better withstand adverse weather and

geological conditions.

Of the 600 units, 400 will be constructed in a 3.5-hectare property owned by the Tacloban LGU, while 200 will be built in a 2.05-hectare land owned by the LGU of Palo. NHA will handle the land development for the two sites.

Binay said families whose houses were partially or totally damaged will be prioritized in the permanent housing programs.

Also given preference are those living in No-Build Zones that will be determined by the Department of Environment and Natural Resources (DENR)–Mines and Geosciences Bureau (MGB), Department of Science and Technology (DOST), and the concerned LGU. “Aside from the housing units, the project sites will also have community facilities such as schools, health facilities, and water and power connections,” the housing czar said.

“We are encouraging more donors as partners, so we can continuously help all our fellow Filipinos who were affected by Typhoon Yolanda start new and better lives,” NHA General Manager Atty.

Chito M. Cruz said.