BRIEF

Megawide to focus on affordable housing

MEGAWIDE Construction Corp. said Wednesday it will focus on developing affordable residential projects as it expands into property development.

Megawide chief executive Edgar Saavedra said during the annual stockholders meeting the company’s move to venture into residential development would boost its operations as net profit margin of property development is usually doubledigit, compared with single digit for construction. The property business requires a fourth of a construction company’s manpower, but generates four to eight times in earnings, he said.

“Majority of the products we are focusing on are below middle-income level which management deems as more essential,” Saavedra said.

He said the affordable segment is essential and more resilient part of residential market as seen during the pandemic. Venturing into residential development is also a natural progression for the company since it has been also been constructing various vertical and horizontal projects for various property developers, Saaverdra said. Jenniffer B. Austria

PH, French Treasury finalizing loan for vessels

THE Philippines is finalizing the terms of a financing agreement with the French Treasury for the delivery of several offshore patrol vessels to the Philippine Coast Guard by French shipbuilding firm OCEA S.A.

Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo said the Philippines signed a memorandum of understanding for a motherhood financing agreement with French companies and the French Treasury.

“This will be on top of the P1.5-billion shipyard investment that OCEA has committed to bring into the Philippines in the last two years,” Rodolfo said. He said the procurement of sea vessels is part of a tactical plan of OCEA to invest in the Philippines.

“When they get this contract, they said they will invest in a shipyard here. It does not have to be full ownership of a shipyard. One of the modalities they are exploring is, maybe, to lease an existing shipyard,” he said.

Rodolfo said the Cerberus Shipyard in Subic, formerly Hanjin Heavy Industries and Construction Philippines Inc., may take on a lease contract.

Part of Cerberus plans, when it acquired the Subic Shipyard from Hanjin for $300 million, is lease parts of it to locators. Othel V. Campos

DOTr turns over 50 houses

To Families Living Beside Rail

THE Department of Transportation said Wednesday it turned over socialized housing units to 50 households affected by the construction of the North-South Commuter Railway Extension Project in San Fernando City, Pampanga.

Transportation Secretary Jaime Bautista said affected residents and communities would benefit from well-made houses and job and livelihood opportunities.

“Hindi lang pabahay ito, pero may kasamang pangkabuhayan kaya tutulungan po namin kayo na magkaroon ng mas magandang buhay paglipat ninyo dito sa mga bahay na ibibigay namin sa inyo,” Bautista said.

The relocation sites for the displaced families are highly livable with availability of basic utilities and low monthly amortizations – starting at only P500 and accessibility to schools, health center, public market, sports facilities, police station and transport terminal, according to the department.

The DOTr and the Philippine National Railway, in cooperation with the Department of Human Settlements and Urban Development, National Housing Authority and city government of San Fernando facilitated the permanent relocation of the 50 families from the seven affected barangays in the city. Darwin G. Amojelar

Premiere Power Corp., the CA order granting the consolidated petitions for certiorari filed by the two companies. Manila Electric Co. said it received the CA decision which upheld the position taken by SMC and the distributor that the grant of the fuel price adjustment “is the least cost option for our customers rather than buying replacement power from WESM [Wholesale Electricity

Spot Market] or other suppliers.”

“However, there are some matters in the decision that we feel need to be clarified. We are consulting with our lawyers on the legal remedies available to us including an appeal to the Supreme Court,” Meralco first vice president and head of regulatory management Atty. Jose Ronald Valles said.

Valles said to ensure the continuity of supply of electricity and avoid exposure to volatile WESM prices, it would also start negotiating for emergency power supply agreement to replace any lost capacity if San Miguel Energy Corp. terminates its PSA with Meralco as a result of the CA decision.

“Rest assured that our priority is to always ensure that we have sufficient supply at the least cost for our 7.7 million customers,” Meralco said.

The ERC said it had yet to receive a copy of the CA decision.

“We will be guided by OSG [Office of the Solicitor General] on this matter,” ERC chairperson Monalisa Dimalanta said.

Power for People Coalition convenor Gerry Arances said the CA failed to uphold public interest by granting SMC’s petition in its case against the ERC.

“The court effectively releases SMC from any consequences of breaking a contract simply because it is not earning enough from a commitment it has made voluntarily,” Arances said.

SPPC and SMEC, administrators of the 1,200-megawatt Ilijan natural gas and 1,200MW Sual coal-fired power plants, respectively, along with Meralco, sought a temporary rate hike under its 2019 power supply agreement due to “change in circumstance.”

Alveo Land expects P20b in sales from new BGC building

By Jenniffer B. Austria

ALVEO Land, the upscale brand of Ayala Land Inc., launched a new highrise condominium project in Bonifacio Global City that could generate up to P20 billion in sales.

ELECTRIFICATION. One Meralco Foundation energizes the health center of Barangay Laiban in Tanay, Rizal which caters to over 3,000 individuals. The electrification of rural health centers is among the initiatives of OMF under its community electrification program which also covers low-income households, off grid public schools, water access projects and agricultural and livelihood programs. Attending the ceremony are (from left) Manila Electric Co. head of HMB-central business area Villardo Asuncion, Meralco chief corporate social responsibility officer and OMF president Jeffrey Tarayao, Tanay Mayor Rafael Tanjuatco, Tanay municipal health officer Dr. Amor Dulce Rivera, Meralco senior vice president and chief revenue ifficer Ferdinand Geluz, Rizal Vice Governor Reynaldo San Juan Jr., Tanay Vice Mayor Rex Manuel Tanjuatco and Meralco vice president and head of commercial operations Charina Padua.

Peso climbs to 54.93 per US dollar on strong remittance inflows

THE peso strengthened to a threemonth high against the US dollar, amid the seasonal increase in remittances for tuition payments and other schoolrelated expenses.

The local currency gained P0.32 to close at 54.93 Wednesday from 55.25 Tuesday. It was the peso’ strongest level since it closed at 54.93 on April 11, 2023.

Data from the Bankers Association of the Philippines showed that value turnover reached $1.36 billion, up from $1.26 billion previously.

Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said the gauge of the US dollar against major global currencies corrected to new twomonth lows lately.

“The markets are anticipating some seasonal increase in OFW remittances and conversion to pesos to prepare for some tuition payments and other related expenses for the opening of the new school season, somewhere around Julyto August 2023,” Ricafort said.

He said this could be offset by seasonal increase in importation in the third quarter in preparation for the expected rise in local demand and for exports in the fourth quarter.

“The peso also appreciated vs the US dollar ahead of the US CPI/inflation for the month of June 2023 widely expected by the markets to ease further towards 3 percent from 4 percent in May and moving closer to the Fed’s target of 2 percent,” he said.

The interagency Development Budget Coordinating Committee adjusted the peso-dollar exchange rate assumption to a range of 54 to 57 in 2023 and 53 to 57 in the medium term.

Hongkong and Shanghai Banking Corp. also expects the peso to end the year at 54.5 against the greenback amid the loosening monetary policy in the United States.

Fan Cheuk Wan, HSBC chief investment officer for Asia, downplayed in an online briefing the impact of global uncertainties on the strength of the peso going forward.

Fan said she expects the Federal Reserve to increase interest rate by 25 basis points in July. The peso fell to an all-time low of 59 against the dollar in October 2022 amid expectations that the Fed by that time would raise interest rates.

Julito G. Rada

Alveo Land president Carlmichael Jugo said in a news briefing Wednesday the project Park East Place received strong sales take-up from buyers, with reservation sales reaching P6.2 billion.

“The success of Park East Place’s project launch reaffirms Alveo’s presence in BGC. The extremely strong reception is a clear affirmation of Park East Place’s unique project concept, strategic location and trust in Alveo brand,” Jugo said.

The 59-story Park East Place offers 523 residential units with all balconies selling at an average price of P430,000 per square meter or P24 million to P66 million a unit.

Floor sizes range from 61 square meters for one-bedroom unit, 67 sq. m. for two-bedroom unit and 131 sq. m for three-bedroom unit.

Jugo said the company is more optimistic about the property sector this year amid the continued reopening of the economy and stabilizing interest rates.

Most of the buyers are end-users and investors, it said.

Jugo said the project is strategically located at the corner of 32nd Street and 9th Avenue—two major thoroughfares in BGC. It is also near office buildings and well-known commercial centers as well as pioneer landmarks such as St. Luke’s Medical Center-Global City, S&R Membership Shopping and MC Home Depot.

COVID-related insurance payouts declined to P1.53b in second half of 2022

INSURANCE companies and health maintenance organizations paid out P1.53 billion in COVID-related claims in the second half of 2022, down from P7.65 billion a year ago, the Insurance Commission said Wednesday.

It said insurers and HMOs paid a total of 137,478 COVID-related claims in the period, a sharp decline from 359,622 claims a year earlier as the number of COVID-19 cases also dropped.

A survey conducted by the commission showed the number of claims paid in the second half of 2022 “tracked the declining trend of COVID-19 cases during the said period.”

The Department of Health reported that the number of confirmed COVID-19 cases in the second half of 2022 fell to 287,229 from the 1,112,477 cases in the same period in 2021.

COVID-related claim payouts made by life insurance companies amounted to P987 million, while HMOs paid out P483 million.

Meanwhile, mutual benefit associations and non-life insurers paid out a total of P33 million.

About 124 respondent companies participated in the commission’s survey on COVID-19-related claims in the period.

These included 28 out of 32 licensed life insurers, 43 out of 54 non-life insurers, 29 out of 33 MBAs and 24 out of 29 HMOs.

The Insurance Commission has conducted semestral surveys among regulated entities on their COVID-related claims payouts since the start of the pandemic in March 2020.

Based on the surveys, the insurance industry paid out P22.36 billion in COVID-related claims from 2020 to 2022.

COVID-related claims paid amounted to P3.89 billion in 2020, P12.82 billion in 2021 and P5.65 billion in 2022. Julito G. Rada