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Volume IV, No. 51
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As of 5:56 pm jan. 15, 2014 (Wednesday)
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Power deal A SUBSIDIARY of Alsons Consolidated Resources, Inc. (ACR) and a power distributor in Davao have sought regulatory approval for their 25-year power supply agreement (PSA). In a petition dated Dec. 11 and released to the media yesterday, Sarangani Energy Corp. (SEC) and Davao del Norte Electric Cooperative, Inc. (DANECO) asked the Energy Regulatory Commission to issue a provisional approval for the supply deal and subsequently make such approval permanent. Under the agreement, SEC will supply 15 megawatts (MW) of electricity to DANECO through its 105-megawatt (MW) coal-fired power plant for a period of 25 years starting 2015. The two parties said DANECO’s power requirements are “steadily increasing” and peak demand is expected to reach about 86.6 MW.
Climate change mitigation CAGAYAN de Oro City Vice Mayor Caesar Ian E. Acenas calls for public support on measures to minimize the negative effects of climate change. He said this is a global issue but every single Filipino can stand up to protect mother earth from possible devastations. Acenas further said that Kagay-anons can do this in their own homes by strictly observing environmental laws such as proper throwing of garbage, minimizing smoke emissions and others. Vice Mayor Acenas also stressed that there had been devastations caused by climate-related events all over the world but there is now a move to improve resilience and help every city, province and country adopt to climate change. “The involvement of everyone will ensure a successful drive,” Acenas said.
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Energy plan essential for Mindanao growth
E
FFORTS to lay down a long-term energy plan to ensure sustainable power regime for Mindanao could also prime the ground for spatial development initiatives being pursued under a corridors program, a top energy official said.
Director Jesus Tamang of the Department of Energy (DoE) Energy Policy and Planning Bureau cited that the energy plan being crafted for the island strategically support the blueprint for development called the Mindanao 2020 Peace and Development Framework Plan. “The Mindanao Energy Plan (MEP) sets specific strategies in support of the energy requirements of the Mindanao 2020, especially under its Mindanao Corridors Development,” said Tamang at the first leg of series of MEP regional consultations which kicked-off in Cagayan de Oro City recently. The DOE official said that its office is working in close collaboration with the growth/PAGE 7
Coal plant eyed for capacity expansion ABOITIZ Power Corporation, whose subsidiary Therma South Inc. (TSI) is building the P25-billion coal power plant in the boundary of Davao City and Davao del Sur is planning to expand the plant’s capacity in the near future. The 300-megawatt coal plant is expected to be completed by the first coal/PAGE 7
LEAVING HOME. Residents are ferried by a wooden canoe in barangay Mahogany in Butuan City towards designated evacuation areas. Floods spawned by a Low Pressure Area over Mindanao have hit provinces along the island’s northeastern side. mindanews photo by erwin mascarinas
Davao region tops in Mindanao’s GRDP DAVAO City -- Davao region remains as Mindanao’s top economy in 2013 in terms of Gross Regional Domestic Product (GRDP). Maria Lourdes Lim, regional director of the National Economic Development Authority (NEDA) 11 and acting chairperson of the Regional Development Council (RDC) 11, said the sustained
economic growth for Mindanao last year was based on Davao region’s 7.4-percent GRDP growth rate in 2012, placing Davao region in the fourth spot as highest among Mindanao regions. Though it landed 4th, Davao region is the largest contributor among Mindanao regions in overall Philippine Gross Domestic Product (GDP), sharing 3.8 percent.
L im s aid t he g rowt h in Davao region’s GRDP is driven by sustained performance of industries and services sector. Services sector is identified a s t h e t op c ont r i b ut or t o Davao Region’s economy at 53 percent. The growth is due to the influx of private investments specifically in the information and grdp/PAGE 7
Businesses assail plan padding list of paid holidays and leaves By ROMELDA ASCUTIA, Contributor
SUNSET. A picturesque view of sunset in a beach in Barangay Tubigon, Initao town in Misamis Oriental in this file photo. mindanews photo by h . marcos c . mordeno
EMPLOYERS in the Philippines warned that the passage of several proposed bills in Congress seeking additional non-working holidays and paid leaves can do the country, the industry, and the labor force more harm than good. The Employers Confederation of the Philippines (ECOP) in a position paper issued late last year said the law already mandates a total of 18 national non-working days. Of these, there are 10 regular
Mindanao Daily NEWS
holidays, se ven sp ecial (nonworking days) and one special holiday (for all schools). Another three Muslim holidays are observed in Muslim provinces and cities in Mindanao. In addition, salary and wage wor ke rs are e nt it l e d to p ai d i n d i v i d u a l l e av e s , i n c l u d i n g paternity and maternity leaves, solo parent leave, battered women leave, and gynecological leave. assail/PAGE 7
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Advertising and Editorial E-mail : businessweekmindanao@gmail.com Contact nos. : 0917-7121424 • 0947-8935776 Editor: Cheng Ordoñez
Mindanao energy plan matches with Mindanao dev’t corridors program MANILA -- Efforts to lay down a long-term energy plan to ensure sustainable power regime for Mindanao could also prime the ground for spatial development initiatives being pursued under a corridors program, a top energy official said. Director Jesus Tamang of the Department of Energy (DoE) Energy Policy and Planning Bureau cited that the energy plan being crafted for the island strategically support the blueprint for development called the Mindanao 2020 Peace and Development Framework Plan. “The Mindanao Energy Plan (MEP) sets specific strategies in support of the energy requirements of the Mindanao 2020, especially
under its Mindanao Corridors Development,” said Tamang at the first leg of series of MEP regional consultations which kickedoff in Cagayan de Oro City recently. The DOE official said that its office is working in close collaboration with the Mindanao Development Aut hor it y ( Mi n DA ) to achieve better synergy of efforts, noting that, “the Mindanao 2020 strategies are consistent with what we
have developed in the energy plan.” The energy department also recommended that Mindanao 2020 integrate an intermodal mass transport system, adding or improving existing airports to increase mobility in the island and cater to the influx of visitors, all of which will require energy. A spatial development framework pushed by MinDA, t he Mind anao Development Corridors, is designed to strengthen Mindanao’s competitiveness by increasing the efficiency of industries and its value chain to create more jobs and foster inclusive economic growth. energy/PAGE 6
Weather Forecast
Passengers anxiously wait for status of their flights at the Laguindingan Airport in Misamis Oriental on Tuesday (14 January 2014) as a low pressure area dumped rains in many parts of Mindanao since a few days ago. All flights to and from Cagayan de Oro City for the day were cancelled. mindanews photo by bobby timonera
Davao region remains Mindanao’s economic growth driver: NEDA DAVAO CIT Y -- Davao region remains as Mindanao’s top economy in 2013 in terms of Gross Regional Domestic Product (GRDP). Mar ia L ourdes L im, regional director of the National Economic Development Authority (NEDA) 11 and acting chairperson of the Regional Development C ouncil (RDC) 11, said the sustained economic growth for Mindanao last year was based on Davao region’s 7.4-percent GRDP growth rate in 2012, placing Davao region in the fourth spot as highest among Mindanao regions.
Though it landed 4th, Davao region is the largest contributor among Mindanao regions in overall Philippine Gross Domestic Product (GDP), sharing 3.8 percent. Lim said the growth in Davao region’s GRDP is driven by sustained performance of industries and services sector. Services sector is identified as the top contributor to Davao Region’s economy at 53 percent. The growth is due to the influx of private investments specifically in the information and communications technology sector and high-value trade neda/PAGE 6
Obama: Make 2014 ‘year of action’ for economy
No.: 09161714813 (GLOBE)
WASHINGTON --U.S. President Barack Obama on Saturday urged Congress to make 2014 a “year of action” for the economy, making the federal unemployment benefits extension the first item on the agenda. “This will be a year of action,” Obama said in his weekly address. “I will keep doing everything I can to create new jobs and new
opportunities for American families -- with Congress, on my own, and with everyone willing to play their part. And that action should begin by extending unemployment insurance for Americans who were laid off in the recession through no fault of their own.” “This vital economic lifeline helps people support economy/PAGE 6
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Paid holidays and leaves can do more harm than good to industries
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Good Grief THINK
hink a minute…You may have heard the expression, A Minute “Good Grief.” It actually By Jhan Tiafau Hurst seems a bit strange, doesn’t it? Grief usually comes with death and terrible sadness, especially when death takes away the people we love the most. But the thing that probably makes death and grief the worst is regrets. Regrets that you didn’t say the things you should have to the people you love. Regrets that you didn’t ask their forgiveness and make things right with them. And now, you can never tell them how much you love them because they’re gone forever. Maybe you regret you didn’t spend more time with your children, your wife or husband, or your parents. Once your loved one dies they’re gone, and so is your chance to make things right with them. Our regrets sometimes follow and haunt us for the rest of our lives. But did you know there is such a thing as good grief ? We cannot prevent our family members from dying, but we can prevent ourselves from living with painful regrets after they’re gone. We can keep ourselves from experiencing terrible guilt, if we will simply choose today to start loving them like we know we should. We can begin right now to change. We can choose to forgive those who’ve hurt us, or ask them to forgive us for hurting and wronging them. We can start changing to become the husband or wife we know we should be, as well as the father or mother our children need us to be. You and I can have peace of mind, not only that we’re ready to say goodbye to our loved ones who die, but we ourselves are also ready to face our Maker when we die. If we simply start to live Jesus’ way every day, we can enjoy God’s kind of real, lasting peace. If you want to be free from painful regrets and guilt, both now and after you die, just ask Jesus. He’s the Lord of life and death Who will forgive you and take full charge of our life. Jesus is the only One Who can help you change so you can experience good grief on the day you say goodbye to those you love. Just Think a Minute…
Employers in the Philippines warned that the passage of several proposed bills in Congress seeking additional non-working holidays and paid leaves can do the country, the industry, and the labor force more harm than good. The Employers Confederation of the Philippines (ECOP) in a position paper issued late last year said the law already mandates a total of 18 national non-working days. Of these, there are 10 regular holidays, seven special (non-working days) and one special holiday (for all schools). Another three Muslim holidays are observed in Muslim provinces and cities in Mindanao. In addition, salar y and wage w o r k e r s a r e e nt i t l e d t o p a i d individual leaves, including paternity and maternity leaves, solo parent leave, battered women leave, and gynecological leave. Tallying up all of these—national holidays, special non-working days, paid leaves, and rest days—on a yearly basis, ECOP said male workers are left with 276 working days or 9.2 months, while female workers’ may have to work for either 153 or 135 days, or 5.1 or 4.5 months. The business group stressed that the number of working days in a year correlates to the level of national labor productivity, which
SPECIAL FEATURE in turn is a key factor in a country’s competitiveness. “It is sad to say that for the past several years, Philippine labor productivity has stagnated as also the lowest in the region,” the paper claimed, citing statistics on labor productivity among Asian countries from 2006 to 2010 from the National Wages and Productivity Commission. Moreover, based on figures from the IMD World Competitiveness Yearbooks, the World Competitiveness Scoreboard for Asian countries from 2006 to 2013 shows that “Philippine competitiveness continues to rank as one of the lowest in the region,” ECOP said. Among the national holidays being pushed in both houses of Congress include May 5 as National Farmers and Fisherfolk Day, December 2531, January 1 as Paskong Pinoy Day, and July 27 as Iglesia ni Cristo Day. Additional leaves sought include 120 days of maternity leave plus additional and optional 60 days, seven days of family leave, three days of leave to attend to schoolrelated activities, one-month leave for women undergoing major internal surgery, two days’ parental care
leave for each minor child, and additional 10 days’ leave for victims of domestic violence. There are also proposed bills calling for special non-working holidays in particular areas, such as foundation and charter days f or s om e prov i n c e s , c it i e s or municipalities, flash flood memorial day, feast days for patron saints, and commemoration days to honor heroes and heroines in their hometowns. The association warned that any further reduction in the number of working days “would have an adverse impact not only on productivity but also on [the] cost of doing business.” Employers who operate on such holidays will have to shell out an additional 30 percent of premium pay over and above the regular wage of workers for the first eight hours of work. They pointed out that many workers would also be affected adversely because of the principle of “no work, no pay.” “ These are the reasons why ECOP is not in favor of the forty nine bills filed in Congress declaring nonworking holidays in specific localities,” the paper said. “ECOP prefers that these dates be celebrated as special but working days instead of non-working holidays.” -- Romelda Ascutia
Continuing Struggle of Climate Mitigation Versus Tourism
L
AST JANUARY 12, 2014, as I was talking to entrepreneur Tess Villanueva Le Neindre at the old Obusa House along J. P. Rizal Street, Davao City, our conversation over lunch of organic salad and French cuisine of the Provençale preparation drifted to her roots in Davao Oriental. The province just got a beating two days ago of torrential rains and flooding but with a lesser distraction compared to Typhoon Pablo which battered the two provinces of Davao Oriental and Del Norte in 2011. Recently, these provinces got the biggest share of the national infrastructure budget for 2014, perhaps to rehabilitate destroyed roads, bridges and public tourism infrastructures over the last three years. Few foreign travelers and tourism promotions officials in the Philippines know about Dahican Beach of Mati, Davao Oriental which is likened to become the next French Riviera in this side of Asia and the Orient. Dahican has the famous sand and pebbles that can surpass the quality of Boracay Island in Aklan. It has the tranquility as a tourist destination favored by Europeans. The turquoise blue water in the ocean is rich in marine life and a sprawling ground for the giant Sperm Wheel that migrates from the Pacific Ocean during summer. Mati is the first mass of land in this country that sees the first rays of the morning sun shining in the Philippines. It has a significant place in our history when then newly proclaimed Senator Aquilino “Koko” Pimentel took his
oath of office before Governor Corazon Malanyaon after he won his protracted electoral the Tourism H i - way protest over incumbent 12th By Ped Quiamjot placer Migs F. Zubiri in the 2007 Senatorial election. Senator Pimentel chose to take his oath in Mati perhaps as a sign of new beginning to end election fraud in this country? D avao Or ient a l have just inaugurated their new Subangan Museum which now becomes the center of arts and culture that features early faming tools and weaponry of the Mandaya Tribes. It has artifacts and relics of the past that help Mindanaonons understand their roots and civilization leading to their struggle for ancestral rights and self-determination. Just like any provinces in the Philippines that once witness the abundance of forest reserves and nature’s bounty, Davao Oriental, is slowly threatened with climate change mitigation with the invasion of mining and other mineral extraction that is reshaping the environment. Farmlands quiamjot/PAGE 6
TRAVERSING
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First Gen sets add’l $2.5-B investments By MYRNA VELASCO Contributor
WITH t he gover nment a lre ady s crambling for solutions on its thinning energy supply, private investor First Gen Corporation of the Lopez group will help save the day with its $2.5 billion worth of investments on gas facilities that will come on stream from 2016 and up to post-Malampaya phase. In a briefing with reporters at the ground-breaking rites of its 414-megawatt Module 70 San Gabriel gas-fired power project, First Gen President Francis Giles Puno noted that the extent of capital outlay will be up to planned $1.0 billion wor th of regasif ication facilities to underpin supply for gas facilities following decline in Malampaya field’s production. The first phase of 414 megawatts will command an investment of $600 million; while the next two phases of the same capacity will cost $400 million each or a total of $1.4 billion for the three units. “We will build three combined cycle natural gas power plants – each with a capacity of 414MW each or over 1,200MW,” Puno said.
The first unit will be completed in 29 months, which infers then that it would become part of the committed capacity addition before the end of President Aquino’s term, although this would still not be enough to underpin forecasted demand growth in energy. C omp l e m e nt i n g t h e initial phase of the San Gabriel gas plant will be the 100-megawatt Avion aero derivative – based power facility targeted on stream this year. It i s d e s i g n e d a s a peaking facility. This batch of investment will entail additional $100 million. “We are also in the process of finalizing the necessary permits and approvals to develop a fast-track solution for additional capacity through the development of the 100MW Avion project,” Puno has emphasized. At the groundbreaking rites graced by President Aquino, First Gen chairman Federico R. Lopez noted that the 414-MW Sab Gabriel f a c i l it y “ i s m ore t h an just a simple expansion,” as he likened it to the sets/PAGE 7
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Del Monte Pacific takes out loans from BDO, BPI DEL Monte Pacific Limited is tapping more than half a billion dollars in debt financing to partially fund the $1.68-billion buyout of the California-based company that owns the Del Monte brand rights in the US and South America. In a disclosure to the Philippine Stock Exchange, Del Monte Pacific said it entered into bridge loan arrangements with BDO Unibank Inc and Bank of the Philippine Islands (BPI) amounting to $350 million and $165 million, respectively.
The BPI facility is guaranteed by Camposowned NutriAsia Pacific Ltd, the controlling shareholder of Del Monte Pacific. Likewise, the Philippine firm is in talks with strategic investors to finalize the terms of a $74.5-million equity loans/PAGE 7
Robinsons Land jacks up capex for 2014 ROBINSONS Land Corp (RLC) is hiking its capital spending for the current fiscal year despite slower earnings growth in 2013. A regulatory filing shows the property development arm of the Gokongwei family earmarked P16 billion for capital expenditures in the fiscal year ending September 2014, a fifth higher than the P13.2 billion spent in the previous year, to cover land acquisition and construction. Eighty percent of
programmed capital spending will be allotted for malls, office buildings and hotel, while a fifth will be set aside for residential condominiums and housing units. RLC will use cash from operations and borrowings to fund the capex. In the fiscal year ending September 2013, the real estate firm increased its net income attributable to equity holders by five percent to P4.47 billion, slower than the seven percent expansion
to P4.24 billion in 2012, on higher costs and expenses even as all units posted an improvement in revenues. The shopping mall and residential businesses boosted gross revenues, which jumped 18 percent to P15.90 billion at end-September from P13.52 billion a year ago. C ontribution of the commercial centers division advanced 15 percent to P7.39 billion last year from P6.43 billion in 2012 driven by higher rental income in its
malls in Metro Manila. Revenues of the residential division rose by nearly a third to P5.58 billion from P4.30 billion in 2012 due to “the adoption of a buyer’s equity requirement closer to prevailing industry practice in recognizing sales based on percentage of construction completion.” The office buildings s e g m e nt e x p a n d e d i t s revenues by 2.85 percent to P1.44 billion from P1.40 robinsons/PAGE 6
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The framework builds on existing regional and local plans but strengthens these with the complementation with other corridors in the island region. “We need to be ready for structural change. With the increase in power demand in Mindanao, we need to consider all possible sources of energy, preferably indigenous,” said Tamang, cit ing Mindanao’s hig h capacity for alternative fuels. He said DoE is seeking the support of the local leaders to achieve energy sufficiency by identifying renewable energy sources within their respective areas, as oil and other forms of energy are needed to provide for the still growing requirements of transport and mobility in the region. “ We w e l c o m e t h e opportunity to collaborate with D OE on this ver y important undertaking for Mindanao,” said Director Romeo Montenegro of MinDA Investment Promotion and Public Affairs. He added that part of the goals of the regional consultation was to seek stakeholder suppor t on the identified immediate measures to the current power supply shortfall that caused intermittent brownouts in parts of Mindanao. Montenegro also
sector with the upcoming opening of the Matina IT Park and opening of four BPO companies with combined 3,500 seats, and an electronic firm eyeing Davao for its expansion, Lim said. She also cited investments to have registered high with constructions of private building rising by 76 percent valued at P18 billion. She also reported that a total of P29 billion in BOI-registered investments that include energy and manufacturing projects fueled the region’s growth in the first half of 2013. Me anw hi le, despite the impact of the typhoon Pablo in December 2012, the tourism industry in Davao region fared well in 2013 with tourist arrivals increasing by 10 percent. Tourist spending hiked to 67.5 percent valued at P6.7 billion in the first half of 2013. It is the agriculture and m a nu f a c t u r i n g s e c t o r s however that suffered the brunt of the effects of typhoon Pablo with a reduction in production of major highvalue crops such as rice, banana, and coconut. The NEDA 11 report showed that production of rice dipped to 356,403 metric tons (MT) in the 1st to 3rd quarter of 2013 from 386,660 MT in same period of 2012. from page 2 Coconut production dropped to 1,756,454 MT in 1st to services. This year, opportunities 3rd quarter of 2013 from are more seen in the ICT 2,089,122 same rating period st re ss e d t h at Mi n DA supports the development of renewable energy (RE) sources, consistent with the Mindanao 2020 strategy on diversification of energy mix, with premium of RE technology. “We are pushing for more investments in renewable energy projects, particularly hydro, biomass and solar to keep our ideal 50-50 energy mix of RE and fossil-fuel power source by 2030,” he added. D o E sp e arhe a ds t he MEP public consultation in collaboration with MinDA, which co-chairs the Mindanao Power C oordination Committee (MPMC). The first consultation d r aw s ove r 2 0 0 p owe r st a keholders and ot her multi-sectoral representatives who gave their inputs and recommendations on the formulation of the Mindanao energy plan, which is one of the recommendations during the Mindanao Power Summit in April 2012. Similar public consultations will be held in Davao, Gen. Santos, Zamboanga, and Butuan to provide the context and highlights of the MEP and generate inputs from power stakeholders. (PNA)
NEDA...
HAPPY NEW YEAR! Greetings from...
in 2012. Banana production also dropped to 2,190,682 MT in 2013 from 2,943,897 MT in 1st to 3rd quarter of 2012. (PNA)
Economy... from page 2
their families while they look for a new job. And it demands responsibility in return by requiring that they prove they’re actively looking for work,” Obama said. In a 60-37 vote, the Democratic-controlled Senate voted Tuesday to advance the unemployment benefits extension bill, clearing initial procedural hurdle for the legislation. An estimated 1.3 million unemployed Americans saw their benefits lapse when the program expired on Dec. 28. The bill now needs a simple majority in the 100-member Senate to pass it in the coming days. The measure, however, would then have to clear the House of Representatives, which is controlled by Republicans who remain unenthusiastic about supporting the legislation without changes. The benefits came from the Emergency Unemployment Compensation program, enacted under the Bush administration in 2008 to provide supplementary relief for the long-term unemployed who have exhausted standard state benefits. The program has been repeatedly extended in past years, but some Republicans opposed renewing the temporary program, calling it a disincentive for job hunting. Obama also said in his State of the Union address at the end of this month, he will mobilize the country around the national mission of making sure the U.S. economy offers everyone who works hard a fair shot at opportunity and success.(PNA/ Xinhua)
Quiamjot... from page 4
rice and corn and other root crops are slowly becoming unproductive over erosion, mudslides and soil poisoning from the mine’s waste tail ends. The damage extends to Compostela Valley home of the famous gold rush in the Philippines, the Mount Diwalwal where fortunes are made as lives are lost. Natural disasters are clear warnings of how we misused and abused our environment over material reasons and grid. But no one is stopping because there are laws and guidelines often circumvented if not allowed by human intervention in a society that we live?
Robinsons... from page 5
billion in 2012 buoyed by higher lease income due to improved rental rates. Higher occupancy rates and opening of new Go Hotels pushed revenues of the hotel group by eight percent to P1.5 billion against the previous year’s P1.38 billion. However, real estate cost and expenses went up by a quarter to P6.56 billion from P5.26 billion in 2012 due to higher level of realized sales of residential units.
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Growth... from page 1
Mindanao Development Authority (MinDA) to achieve better synergy of efforts, noting that, “the Mindanao 2020 strategies are consistent with what we have developed in the energy plan.” The energy department also recommended that Mindanao 2020 integrate an intermodal mass transport system, adding or improving existing airports to increase mobility in the island and cater to the influx of visitors, all of which will require energy. A spatial development framework pushed by MinDA, t he Mindanao Development Corridors, is designed to strengthen Mindanao’s competitiveness by increasing the efficiency of industries and its value chain to create more jobs and foster inclusive economic growth. The framework builds on existing regional and local plans but strengthens these with the complementation with other corridors in the island region. “We need to be ready f or s t r u c t u r a l c h a n g e . With the increase in power demand in Mindanao, we need to consider all possible sources of energy, preferably indigenous,” said Tamang, citing Mindanao’s high capacity for alternative fuels. He said DoE is seeking the support of the local leaders to achieve energy sufficiency by identifying renewable energy sources within their respective areas, as oil and other forms of energy are needed to provide for the still growing requirements of transport and mobility in the region. “ We w e l c o m e t h e opportunity to collaborate with DOE on this ver y important undertaking for Mindanao,” said Director Romeo Montenegro of MinDA Investment Promotion and Public Affairs. He added that part of the goals of the regional consultation was to seek stakeholder support on the identified immediate measures to the current power supply shortfall that caused intermittent brownouts in parts of Mindanao. Montenegro also s t r e s s e d t h a t M i n DA supports the development of renewable energy (RE) sources, consistent with the Mindanao 2020 strategy on diversification of energy mix, with premium of RE technology. “We are pushing for more investments in renewable energy projects, particularly hydro, biomass and solar to keep our ideal 50-50 energy mix of RE and fossil-fuel power source by 2030,” he added. D oE sp e arhe ads t he MEP public consultation in collaboration with MinDA, which co-chairs t he Mi nd ana o Powe r Coordination Committee (MPMC). The first consultation
d r aw s ove r 2 0 0 p owe r stakeholders and other multi-sectoral representatives who gave their inputs and recommendations on the formulation of the Mindanao energy plan, which is one of the recommendations during the Mindanao Power Summit in April 2012. Similar public consultations will be held in Davao, Gen. Santos, Zamboanga, and Butuan to provide the context and highlights of the MEP and generate inputs from power stakeholders. (PNA)
Coal... from page 1
quarter of 2015, as the plant is close to 70% completion. Ac c ord i n g t o Wi l l y Rodolfo, Corporate Communications Manager of Aboitiz Power, the company is planning to expand it to 645 megawatts by 2017, this to meet the growing demand for power in the Mindanao Grid. Projected power shortfall from 2013-2018 is estimated to be from 50 megawatt to 243 MW. Rodolfo said the expansion of the plant is still being applied for. The company presented its expansion proposal before members of the Davao City Council last December 3. Meanwhile Rodolfo said that the project timeline will not be affected by the construction site accident which claimed the life of a Chinese national working on the plant. The company has suspended the contractor to ensure that safety requirements are in place. Rodolfo said that currently there are 2,500-3,000 workers in the site with about 70% of the workforce belonging to the nearby communities of Binugao and Inawayan. He said the construction of the plant has contributed substantially to the host communities generating P800-million in local purchases and P1-billion in local contracts. Aboitiz Power has also p oure d in P10-mi l lion to the local communities under its Corporate Social Responsibility program part of which is the construction eight classrooms thru Aklat, Gabay, Aruga, tungo sa Pagangat at Pag-asa (AGAPP) Foundation. A two-classroom building costs around P1.2 million. A 1,000 hectare carbon sink is also being readied in Marilog where indigenous peoples in the area are contracted to take care of the forest and fruit trees planted. Rodolfo said they are also intensifying the planting of mangrove trees around the coast as mangroves have the largest carbon sequestration properties among tree species. The baseload power plant using modern clean coal technology is one of the power investments by Aboitiz Power in the region. One of its subsidiaries Hedcor built and operates the Sibulan and
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Tudaya hydropower plants in Sta. Cruz Davao del Sur. It has a capacity of 42.5 and 13.5 megawatts respectively.
GRDP... from page 1
communications technology sector and high-value trade services. This year, opportunities are more seen in the ICT sector with the upcoming opening of the Matina IT Park and opening of four BPO companies with combined 3,500 seats, and an electronic firm eyeing Davao for its expansion, Lim said. She also cited investments to have registered high with constructions of private building rising by 76 percent valued at P18 billion. She also reported that a total of P29 billion in BOI-registered investments that include energy and manufacturing projects fueled the region’s growth in the first half of 2013. Me a nw h i l e , d e s p i t e the impact of the typhoon Pablo in December 2012, the tourism industry in Davao region fared well in 2013 with tourist arrivals increasing by 10 percent. Tourist spending hiked to 67.5 percent valued at P6.7 billion in the first half of 2013. It is the agriculture and manufacturing sectors however that suffered the brunt of the effects of typhoon Pablo with a reduction in production of major highvalue crops such as rice, banana, and coconut. The NEDA 11 report showed that production of rice dipped to 356,403 metric tons (MT) in the 1st to 3rd quarter of 2013 from 386,660 MT in same period of 2012. Coconut production dropped to 1,756,454 MT in 1st to 3rd quarter of 2013 from 2,089,122 same rating period in 2012. Banana production also dropped to 2,190,682 MT in 2013 from 2,943,897 MT in 1st to 3rd quarter of 2012. (PNA)
Assail... from page 1
Tallying up all of these— national holidays, special non-working days, paid leaves, and rest days—on a yearly basis, ECOP said male workers are left with 276 working days or 9.2 months, while female workers’ may have to work for either 153 or 135 days, or 5.1 or 4.5 months. T h e bu s i n e ss g roup stressed that the number of working days in a year correlates to the level of national labor productivity, which in turn is a key factor in a country’s competitiveness. “It is sad to say that for the past several years, Philippine labor productivity has stagnated as also the lowest in the region,” the paper claimed, citing statistics on labor productivity among Asian countries from 2006 to 2010 from the National Wages and Productivity Commission. More ove r, b as e d on
figures from the IMD World Competitiveness Yearbooks, the World Competitiveness Scoreboard for Asian countries from 2006 to 2013 shows that “Philippine competitiveness continues to rank as one of the lowest in the region,” ECOP said. Among the national holidays being pushed in both houses of Congress include May 5 as National Farmers and Fisherfolk Day, December 25-31, January 1 as Paskong Pinoy Day, and July 27 as Iglesia ni Cristo Day. Additional leaves sought include 120 days of maternity leave plus additional and optional 60 days, seven days of family leave, three days of leave to attend to schoolrelated activities, one-month leave for women undergoing major internal surgery, two days’ parental care leave for each minor child, and additional 10 days’ leave for victims of domestic violence. There are also proposed bills calling for special non-working holidays in particular areas, such as foundation and charter days for some provinces, cities or municipalities, flash flood memorial day, feast days for patron saints, and commemoration days to honor heroes and heroines in their hometowns. The association warned that any further reduction in the number of working days “would have an adverse impact not only on productivity but also on [the] cost of doing business.” Employers who operate on such holidays will have to shell out an additional 30 percent of premium pay over and above the regular wage of workers for the first eight hours of work. They pointed out that many workers would also be affected adversely because of the principle of “no work, no pay.” “These are the reasons why ECOP is not in favor of the forty nine bills filed i n C on g re s s d e c l a r i n g nonworking holidays in specific localities,” the paper said. “ECOP prefers that these dates be celebrated as special but working days instead of non-working holidays.”
facilities which still make up roughly 18-percent of the country’s installed power capacity. “ T h e s e p l a nt s h av e expensive power with average tariffs close to P12 per kilowatt hour… adding more capacity like San Gabriel will lessen our dependence on these expensive oil-fired p e a k ing plants,” L op e z stressed. Puno added that their company moved the project forward to implementation because “without new power supply, consumers in Luzon grid will suffer from rotating brownouts and/or pay for running more costly and less-efficient oil-fired plants.” The First Gen executive averred that if power supply shortages will ever happen, it could also “disrupt the country’s positive growth momentum and hamper government’s efforts to create more jobs.”
Loans...
from page 5 investment into the group. About $75.5 million can be raised either through a share placement, a medium-term loan or a combination of both. Del Monte Pacific had said it would finance the acquisition of the consumer
food business of Del Monte Foods (DMF) through a combination of debt and equity. The transaction is expected to close not later than the first quarter. Under the agreement inked in October, Del Monte Pacific will purchase the brands and certain assets of DMF, giving the Philippine firm a presence in the world’s biggest market. Apart from the Del Monte brand rights for processed food in the US and South America, DMF also owns the Contadina, S&W and College Inn brands. Del Monte Pacific owns the Del Monte brand for processed products in the Philippines as well as another premium brand, S&W, globally except in the Americas, Australia and New Zealand. Non-recurring acquisition and listing expenses pulled down Del Monte Pacific’s net income by five percent to $17.8 million in the first nine months of 2013 from $18.8 million the previous year. NutriAsia owns 67 percent of Del Monte Pacific. The NutriAsia group is the market leader in the liquid condiments, specialty sauces and cooking oil market in the Philippines.
Sets...
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transformative development that happened at the swampfilled site of its first gas facilities – the 1,500MW Sta Rita and San Lorenzo plants. T h e c o m p a ny ’s t o p executive added that once their new facilities come on-line, these could “tame opportunistic behavior” in the market. “O u r Av i on proj e c t will likewise help tame opportunistic behavior by increasing competition and consumer choice for sources of peak power,” Lopez has reiterated. He explained that the facility can provide c o u nt e r b a l a n c e t o t h e 3,074MW of oil-fired
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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