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Tuesday, April 23, 2013
WSJ: Philippines $8 billion raised, now outperforming Hong Kong, Singapore, Thailand, Malaysia, and Indonesia
Philippines Stands Out in Capital Markets
The Philippines has become one of Asia's hottest markets for share and bond sales, getting a boost from a buoyant stock market and its recent acquisition of an investment-grade credit rating.
Just four months into the year, companies owned by tycoon Lucio Tan and blue-chip giant San Miguel Corp. SMC.PH -0.56% have raised billions. Bankers expect more capital-raising in the months to come.
Deals totaling more than $1.5 billion are in the pipeline, and strong demand for recent sales could spark more activity in the country's equities and bond markets. Overseas-listed companies with operations in the Southeast Asian country, such as casino operator Melco Crown Entertainment Ltd., MPEL +1.17% are taking advantage of an upbeat outlook for the Philippines' consumption-driven economy to launch deals.
This month, the Asian Development Bank increased its forecast for the country's 2013 economic growth to 6% from 5%. The Philippines has a population of 100 million.
Last year, share sales totaled $3.5 billion, six times the $594 million raised in 2008, according to Dealogic data. Now, the country is in the third spot for equity fund raising in Southeast Asia, overtaking Malaysia, a favorite destination for deals last year.
In the debt market, the Philippines is leading in Southeast Asia, with about $8 billion raised so far this year. Last year, it was third.
Agence France-Presse/Getty Images. The Philippines has become one of Asia's hottest markets for stock and bond sales. Students earlier this month perform in the Aliwan Festival in Manila. The annual festival brings together performers from around the country to celebrate Filipino culture.
Traditional fundraising hubs like Hong Kong have fallen behind so far this year as investors turn to Southeast Asia, where stock markets have surged on expectations of strong economic growth and rising domestic consumption.
The Philippines' stock market has gained 20% so far this year, outperforming Indonesia's 15%, Thailand's 11% and Singapore's 3.7%. The Philippines stock market has a market capitalization of more than $300 billion, and is dominated by family-owned businesses.
Many were forced to issue more shares in order to remain listed after the country's stock-market regulator began to more strictly enforce a rule on minimum public ownership last year. The handful of listed companies that failed to meet the Dec. 31 deadline have been suspended from trading since January, and will face delisting if they don't hit the 10% level by June 30.
Investors' appetite for the Philippines is strong. Mr. Tan's LT Group Inc. LTG.PH -0.64% raised 37.72 billion Philippine pesos ($917 million) last week. Orders for the stock sale totaled $3.5 billion. The deal was priced at 20.50 pesos per share, the top of the range banks handling the deal had indicated to investors. More than half came from 11 cornerstone investors—buyers who agree to take large parcels of shares and hold them for a set period—including Fidelity and Morgan Stanley Investment Management.
"Deals are getting bigger...the country is on the radar screen of investors," said Lauro Baja III, head of UBS UBSN.VX +2.89% Philippines, which managed the LT Group share sale.
Foreign companies are also benefiting from investors' confidence in the Philppines. Apart from a $377 million share placement by Nasdaq-listed Melco Crown, which is going on now, Malaysia's Genting Bhd. 3182.KU 0.00% and its Philippine partner are planning to list a Manila casino via an initial public offering that could raise more than $500 million.
San Miguel, which is managed by Filipino tycoon Ramon Ang and manufactures the country's top-selling beer, said its $800 million bond sale this month attracted orders of more than $1 billion within the first hour. Orders for the deal, which attracted investors from Asia, Europe and the U.S. and was the country's largest corporate bond sale ever, totaled almost six times the amount of debt for sale.
Corporate bond offerings in the Philippines used to meet with tepid demand from investors. That changed in March, when Fitch Ratings raised the Philippines' long-term foreign-currency credit rating by a notch to BBB-minus, an investment grade
"Of late, we are starting to see more [corporate] issuers," said Clifford Lee, managing director of fixed income at DBS Bank Ltd. Other deals in the pipeline include a $500 million Tier 2 capital bond, to be issued by Metropolitan Bank & Trust Co., MBT.PH -1.60% and a $170 million peso-denominated bond from geothermal power producer Energy Development Corp., EDC.PH -0.76% according to regulatory filings.
But at the same time that companies are stepping up their bond issuance, sales from the government, the usual bond issuer, are falling.
National Treasurer Rosalia de Leon said Tuesday the government won't issue bonds overseas this year because it doesn't want to add to inflows of capital that have strengthened the peso. The government will issue bonds domestically. The Philippines, one of the most active Asian sovereign borrowers, usually starts selling debt overseas in the first quarter but hasn't offered any so far this year.
Bloomberg: Emerging Stocks Rise Led by Philippines as Hungary Slumps
Emerging-market stocks rose, led by Philippine companies, on speculation falling deposit rates will spur demand for the nation's equities. Hungarian equities tumbled to the lowest level in about a month.
Ayala Corp. (AC) jumped 5.4 percent in Manila, helping drive the Philippine Stock Exchange Index to a record. Erste Group Bank AG led the Czech PX index higher. Harmony Gold Mining Co. (HAR), Africa's third-largest producer of the metal, climbed a second day as gold extended its rebound. Billionaire Eike Batista's OGX Petroleo & Gas Participacoes SA surged 18 percent in Sao Paulo, sending Brazil's Bovespa index up a third day.
The MSCI Emerging Markets Index (MXEF) rose 0.1 percent to 1,011.96 in New York as 436 stocks gained, while 342 retreated. The Philippine peso halted a three-day gain on speculation the central bank will lower the interest rate on its special deposit accounts for a third time this year. Earlier today, stocks fell after a drop in American home sales.
"A cut in SDA rates will entice people to look for other investment havens offering higher yields, such as the equities market," Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila, said by phone.
Consumer discretionary and technology shares led the gains in the MSCI Emerging Markets Index. The emerging-markets index has lost 4.1 percent this year, trailing a 6.6 percent increase in the MSCI World Index of developed-country stocks. The emerging-markets measure trades at 10.6 times 12-month projected profit, compared with the MSCI World's 13.9 valuation, according to data compiled by Bloomberg.
Emerging ETF
The iShares MSCI Emerging Markets Index exchange-traded fund rose 0.5 percent to $41.84. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, lost 5 percent to 19.68.
The Bovespa index rose 0.7 percent, rebounding from earlier losses. OGX extended a three-day rally to 29 percent after Folha de S. Paulo newspaper reported that Moscow-based Lukoil may buy a 40 percent stake. The company said in an e-mailed statement to Bloomberg News that Folha's report is "groundless."
Russian stocks retreated, erasing earlier gains, as OAO Gazprom slid after JPMorgan Chase & Co. cited the natural gas export monopoly's dividend plans in a report downgrading the country's equities.
The Budapest Stock Exchange Index slumped 1.4 percent as the nation's largest refiner Mol Nyrt. Latvia's OMX Riga index had the biggest decline among the 94 primary gauges tracked by Bloomberg.
Hong Kong
Hong Kong stocks rose for a second day as infrastructure- related stocks climbed on speculation demand will increase following an earthquake in China's southwestern province of Sichuan. The Hang Seng China Enterprises Index (HSCEI) added less than 0.1 percent, while the Shanghai Composite Index declined 0.1 percent.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries lost one basis point, or 0.01 percentage point, to 295 basis points, according to JPMorgan Chase & Co.'s EMBI Global Index.
Monday, April 22, 2013
7 Big Consortiums compete for ₱17.5 billion Modern Cebu International Airport project
Old Mactan - Cebu International Airport
Seven groups led by the country's largest business conglomerates, in partnership with key global aviation players, have placed bids for the ₱17.5 billion Mactan Cebu International airport project.
DOTC Undersecretary Jose Perpetuo Lotilla said the groups that submitted qualification documents yesterday included the following:
- Metro Pacific Investments
- JG Summit Airport Consortium
- AAA Airport Partners
- Filinvest Land Inc. and CAI Consortium
- San Miguel Corporation and Incheon Airport Consortium
- First Philippine Airports Consortium
- Premier Airport Group of SM Investment Corporation
- Indian-owned GMR Infrastructure and Megawide Consortium
First Pacific's MPIC of businessman Manuel V. Pangilinan has tied up with Gokongwei's JG Summit to form MPIC JGS Airport Holdings Inc. The group has tapped airport experts including French-owned Aeroports de Lyon and OVE Arup Group.
The AAA Airport Partners is led by the Ayala and Aboitiz Groups with consortium members including A2 Airport Partners as well as ADS & HAS Airports Worldwide Inc. The company has tapped Houston Airports Partners and the OVE Arup Group.
The third group is the Filinvest-CAI Consortium led by Gotianun's Filinvest Development Corporation and its foreign partner Changi Airports MENA (Middle East and North Africa) Pte Ltd. Partners include Filinvest Land Inc., Filinvest Alabang Inc., Cyberzone Properties Inc., EEI Corp., Bougues Batiment International, CPG Consultants Pte Ltd., Woods Bagot Pty Ltd., Meinhardt Philippines Inc., and Changi Airports Saudi Ltd.
On the other hand, SMC has tied up with International Airport Corporation to form the SMC-Incheon Airport Consortium that includes SMC's Optimal Infrastructure Development Inc., Incheon Airport International Corp., Mactan Capitana Holdings Inc., and Skylake Incuvest & Co. Partners are
Kumho Industrial Co. Ltd, Keun Jeong Architects and Engineers Co Ltd, and Aecom Asia Co Ltd.
The First Philippine Airports is a tandem between FPHC and Wellington-based Infratil Asia Ltd. The group's partners include Infratil's Wellington International Airport Ltd and NZ Airports Ltd as well as Rockwell Land Inc., Fentress Architects Inc., Buro Happold Consulting Engineers Inc., OVE Arup and Partners Hong Kong Ltd, Mott Macdonald Ltd, and First Balfour Inc.
Sy's Holding firm SM Investments Corp. leads the Premier Airport Group together with Citadel Holdings Inc., Zurich Airport International AG, and Prospector Investment Holdings Inc. Partners include mall developer and operator SM Prime Holdings Inc., construction giant DM Consunji Inc., and Flughafen Zurich AG.
The final group is the tandem of GMR Infrastructure Ltd of India and publicly-held Megawide Construction Corp. Partners include Delhi International Airport (P) Ltd, GMR Hyderabad International Airport, GMR Airport Developers Ltd, BL Kashyap and Sons Ltd, Vijay Nirman Co. (P) Ltd, Ove Arup and Partners Hong Kong Ltd, Louis Berger Group Inc., Foster + Partners, and Mott Macdonald Ltd.
Last year, GMR, which has presence in roads, power and airports sectors, had to make an unceremonious exit from Male International Airport after the local government cancelled its concession agreement. Currently, the matter is pending before an arbitration panel.
The Mactan-Cebu airport project involves the construction of a world-class passenger terminal building with a capacity of eight million passengers a year as well as the operation and maintenance of the old and new facilities include a 797-hectare property.
The successful bidder will be awarded a 20-year concession contract to operate, while the project will be developed in two phases at an estimated cost of ₱17.5 billion peso (the currency of Philippines).
MCIA is the second largest airport in the Philippines after Manila International Airport and had handled more than 6.2 million domestic and international passengers in 2011.
The airport is also a major gateway for various tourist destinations in central and southern provinces of Philippines.
With report from philSTAR and Times of India
Sunday, April 21, 2013
Real estate, Thailand, Philippines and high-yield funds are performing well
Gold bars at the Zlatarna Celje in Celje, Slovenia. Gold has slumped almost 30 per cent since its peak in September 2011. Photo: Reuters
Real estate, Thailand, the Philippines and high-yield bonds are strong investments while gold has fallen abruptly off the radar
If you are looking to invest, you might be wondering what are the top performing funds? We can answer that. Using data from research firm Lipper, we list the best funds available in Hong Kong, ranked by returns net of fees, over the 12 months to February.
The findings can be summed up thus: real estate, Thailand, Philippines and high-yield bonds have all performed well, but gold has been a disaster.
Funds dedicated to the Philippines and Thailand rank highest among the equity funds. All the top bond funds are in high yield.
At the bottom are investment-grade bonds, particularly those priced in pounds, and anything involved with gold.
High yield
Hongkongers buy more high-yield funds than any other fund category. And when Hong Kong investors want high-yield bonds, they usually want exposure to the mainland property sector.
Jack Deino, a senior portfolio manager for Invesco, manages an emerging market fund that is the third-best fund in the bond category. The fund's second-biggest country exposure is China, and Deino says about 90 per cent of his China bonds come from the property sector.
Mainland property bonds have been strong performers over the past year, in terms of yield and capital gains. But the sector is prone to busts. Regulators routinely bring mainland property firms to the brink of insolvency by rounds of tough rules on mortgages and bank loans, to cool an overheated market.
Bond fund managers are wary of concentration risk. They worry that the government may one day roll out heavy-handed cooling measures, walloping the whole property sector, taking their portfolio down with it.
Deino says these concerns are overstated. "Chinese property is the most misunderstood sector in the world," he says, adding the mainland market is diversified just in sheer size ("each region or each city marches to the beat of its own drummer and has its own demand").
He adds that the big listed mainland developers need bond markets to raise money, and are therefore expert at investor relations, and operate at a high level of transparency and governance.
BEA Union Investment is also focused on mainland property bonds. About half of the firm's Asian bond and currency fund (the second-best performing bond fund) is invested in the asset, says Henry Wong, the firm's head of fixed income.
"In January [last year], we made a very aggressive move into this sector, which is why our performance in 2012 is strong," Wong says.
BEA launched its fund in August 2008 at the height of the global credit crisis. It offered beleaguered investors high-quality Asian-currency alternatives to US and European bonds. At launch, about 80 per cent of the fund was investment grade, says Wong. The fund has since been marching steadily down the credit curve, investing in higher risk and higher return securities. Today, only 10 per cent of the fund is investment grade - much of the rest is high-yield debt from mainland developers.
High yield has risks, but so does high grade. The bottom performing funds in the bond table are all invested in investment-grade bonds from the developed market. The funds lost money largely because yields on such instruments are paltry, barely enough to cover the costs of the fund.
Currency swings are also a factor. Two of the bottom performing funds are in sterling bonds, and the pound lost 4.4 per cent against the Hong Kong dollar over the review period.
Friday, April 19, 2013
TIME Magazine : President PNOY - 2nd Worlds Most Influential person, a notch higher Barack Obama
Philippine President Benigno Aquino III - 2nd worlds' most influential person. LLUSTRATION BY DAVID DESPAU FOR TIME.
An honorable time
WITH all the negative issues and events currently ongoing, both in the Philippines and around the globe, this comes as a refreshing bit of good news.
Recently, President Benigno Aquino III (PNoy) emerged as one of TIME Magazine's 100 most influential people in the world for 2013.
PNoy ranks second among the world's 23 most influential leaders, next to Rand Paul (a junior US senator from Kentucky) and a notch higher than President Barack Obama, who is in third place.
"In a country of nicknames, Filipinos proudly call their President PNoy — a pun on the word they use for themselves: Pinoy. For his courage, however, he really should have the pet name the family gave his eldest sister Maria Elena: Ballsy," wrote TIME news director, Howard Chua-Eoan, to describe Aquino.
Chua-Eoan said that while PNoy may have inherited the legacy of his parents, Sen. Benigno Aquino, Jr. and former Pres. Corazon C. Aquino, he "quickly began making his own name."
"The sputtering economy stabilized and became hot. Aquino pushed through a reproductive-rights law that many said was impossible in the fervently Catholic nation. Most important, he became the face of the regional confrontation with Beijing over its claim to virtually all of the South China Sea. It is a brave stance, the long-term consequences still unknown,"Chua-Eoan further said.
PNoy reacted modestly to this recognition, saying that he is merely the "face" of Filipinos.
"This is perhaps a recognition of our countrymen, of all Filipinos, more than anything else. I'm just the face. Like in battles, I'm just the first one to move forward, and I accept that. But if there is any triumph, it's a triumph for everybody," he said.
"We have been reminded that we did quite a lot in terms of achievements. It's clear to me that we only did this because the people are behind me," PNoy further said.
The president credits his motivation to the public's support of the reforms that his administration initiated.
"...because our countrymen are there behind us, they are the ones that gave us the opportunity to reform and continue to support us until now, then I can accept with much honor that distinction – on their behalf rather than for myself," PNoy said.
According to Presidential spokesperson Edwin Lacierda, TIME Magazine's article recognized "the true grit which characterizes his (Mr. Aquino's) leadership, and the optimism, dynamism and renewed pride which has restored the standing of our nation in the eyes of Filipinos and the world."
"We take pride in how the ideas of good governance and inclusive growth that are the major thrusts of the Aquino presidency resonate not just with Filipinos but with the entire world. This is especially relevant today, as countries all over are trying to become more inclusive economically, politically, and even culturally, President Aquino is already doing it in the Philippines," Lacierda said.
Of course, not everyone feels the same way.
Some senatoriables gave mixed feedback about this recognition.
Sen. Gregorio Honasan thinks that PNoy's inclusion in the list is not enough to make Filipinos feel the benefits of economic growth.
"We should be happy, but that will not be enough to convince our people that our economy is growing...This honor is deserved I think, but for our people to be equally proud and to feel this on the ground, we should do more than recognize the President," Honasan said.
Zambales Rep. Mitos Magsaysay opined that PNoy being regarded as a most influential person/leader does not mean much for the poor.
"The ordinary Filipinos are concerned about where to get money they can use to feed their families, how to survive the next day, what will be their job to generate income. That is the focus of ordinary Filipinos," she said.
Nevertheless, this should still be a cause for elation and celebration among Filipinos.
While the Philippines continues to flourish (albeit slowly but surely) and be regarded with more respect in the global community, there are things that we are better off removing from our own "list" -- crab mentality most of all.
After all, PNoy said it best: his victory is our victory.
With report from Asian Journal and Time Magazine
Thursday, April 18, 2013
NEDA says MRT-7 and bullet train $4.43 Billion US Dollar ₱182 billion projects under BOT
MRT and Bullet Train Project of approx $4.3 Billion USD (₱182 billion Peso)
The $1.43-billion (₱53 billon) Metro Rail Transit Line 7 (MRT-7) and the $3-billion (₱123 billon) Clark-Metro Manila Bullet Train Project will be constructed under Built-Operate-Transfer (BOT) schemes, the National Economic Development Authority (NEDA) said Thursday.
The Japan International Cooperation Agency (JICA) will finance the $1.23-billion Metro Rail Transit Line 7 (MRT-7). NEDA said the new MRT line will be constructed under a BOT scheme in accordance with Republic Act 7718. The initial construction will be put up in Barangay Tala in San Jose Del Monte. The new MRT line will run through Fairview, Commonwealth Avenue, Quezon City Memorial Circle and North EDSA. The final station will be constructed in the Paramount theater in front of SM North EDSA and the Triangle of North Manila (TriNoMa) mall.
NEDA added that the new lane will be connected to the now operational LRT-MRT Closing Loop Interconnection Project. Once the MRT-7 Line is completed, the Paramount Station will be a Mega Rail Station.
NEDA also announced that private firm Metro Pacific Investments Corporation (MPIC) has made its intention to fund the Clark-Metro Manila bullet train project under BOT scheme. The plan is to construct the new railways between the lanes of the North Luzon Expressway (NLEx) because an earlier proposal to construct it parallel to the railway was scrapped due to some technical problems.
Clark International Airport Corp. (CIAC) said the project will be called "Express Airport Trains" which will have at least three stops in Metro Manila. CIAC said when completed, the bullet trains will shorten travel time from Clark to Manila, and vice versa, to only 45 minutes. The bullet trains' planned stopovers are Balintawak or near TriNoMa or SM North in Quezon City; Manila like Dimasalang or University of Sto. Tomas; and Makati at Buendia Avenue.
Philippines at the start of investment boom -starts an investment cycle
STARTING THE CYCLE. A CLSA equity strategist says there is "anecdotal evidence" that the Philippines is about to start an investment cycle.
There is "anecdotal evidence" that the Philippines is about to enter an investment boom.
"From a simple macro standpoint, we don't have an evidence yet of an investment cycle in the Philippines like in Indonesia and Thailand. But all the anecdotal evidence, including the PPP projects, the economy... all indications are that we will commence an investment cycle in the Philippines," Christopher Wood, an equity strategist for Hong Kong brokerage and investment firm Credit Lyonnais Securities Asia (CLSA), said.
In a CLSA study he co-authored, Wood said that Philippines' gross domestic product (GDP) data from the 4th quarter of 2012 "showed growing evidence of an investment cycle."
"Thus, the Philippines 4Q12 (4th quarter of 2012) real GDP growth accelerated to an annualized 7.5% QoQ (quarter-on-quarter) resulting in real GDP growth of 6.6% YoY (year-on-year) in 2012. But, most importantly, investment grew by 8.7% in 2012 after recording only 0.2% growth in 2011. This provides further evidence that an investment cycle is underway," the paper read.
The CLSA study said that an investment cycle would give "a third investment leg to the Philippines domestic story" on top of remittances and the BPO industry.
PPP delays
"One aspect of this investment cycle should be more rapid implementation of President Benigno Aquino's public-private partnership (PPP) program," the paper read.
Wood said that while investors are disappointed with the delays in the PPP projects, he does not think that the whole exercise is a disaster.
"Everyone's concerned about the delays. But on the other hand, I think a lot of those delays have something to do with due process, making sure that it's done properly. Provided those PPP projects are initiated over the course of the presidential term, that's the key thing, right?" he said.
"If nothing's done by the end of the presidential term, obviously that's a major negative. But from what I'm hearing, a lot of these PPP projects are in qualification stage or bidding stage. It's not like nothing's happening."
Virtuous cycle
Wood said that the Philippines is in a virtuous cycle when it comes to increased foreign investor activity in the stock market.
"The more the market goes up, the greater the number of foreign investors who can buy it because of rising liquidity," the paper read.
Wood said that this was not the case as recently as six months ago. He said that the Philippines had long been dismissed as "uninvestable" because of illiquidity.
In the 1st quarter of 2013, the PSE had an average daily trading volume of $219 million. The figure is much higher than the average of $142 million in 2012.
Foreign net buying of Philippine stocks in the 1st quarter of 2013 stood at $1 billion. The figure is nearly half of the $2.5 billion foreigners spent on Philippine stocks in 2012. -
Screening of bidders for ₱17.5-billion Cebu airport expansion set
proposed Mactan Cebu International Airport a ₱17.5-billion project Cebu airport expansion
Interested parties in the ₱17.5-billion contract that aims to renovate and expand the Mactan-Cebu International Airport are expected to submit their eligibility documents to the Department of Transportation and Communications (DOTC) on Monday, April 22.
"We made sure that this project will also be attractive to investors in order to foster competitive and open bidding," the DOTC said Thursday.
Based on requirements laid down by the department, Philippine companies will have to partner with established airport operators from other countries as the DOTC said this will give local players an opportunity to learn from the technology employed by more advanced aviation firms.
In turn, the DOTC assured the private sector that the joint DOTC-Mactan-Cebu International Airport Authority (MCIA) Prequalification, Bids, and Awards Committee (PBAC) will maintain a level playing field in the bid by upholding transparency and fairness, hallmarks of procurement reforms in the department.
Twelve companies bought bid documents for the project which include the consortium of Philippine Airlines and San Miguel Corp., Manuel Pangilinan's Metro Pacific Investments Corp. and Gokongwei's JG Summit Holdings Inc.; and the joint venture of Ayala Corp. and Aboitiz Equity Ventures Inc.
"We are optimistic that the MCIA Project will generate the same level of interest from major local and international companies as what we saw from the AFCS (Automatic Fare Collection System) Project. We made sure that this project will also be attractive to investors in order to foster competitive and open bidding," said the DOTC.
The project's objective is to efficiently handle the increasing air traffic demand, ensure convenience of expected eight million passengers, and promote aircraft operational efficiency through the construction of new passenger terminal, installation of necessary equipment and renovation and expansion of the existing terminal including maintenance and management.
The 20-year concession contract is expected to be awarded by project leader DOTC before the end of the year. (Virgil Lopez/SDR/Sunnex)
₱30-Billion Project to address Mindanao blackouts - Pres. Noynoy Aquino
NASA Night Map 2013 shows Mindanao is even darker than North Korea. Mindanao Power shortage has becoming more severe. The demand is higher while the supply is not enough for the entire rich island. Mindanao Island has been forgotten for decades.
President Benigno S. Aquino III witnessed yesterday the contract signing of the ₱30-billion investment of Filinvest Development Corp. (FDC), Inc. to build power plants in Mindanao and provide 405 megawatts of coal power to the region's grid.
The contract was signed between Phividec Industrial Authority and FDC for the establishment of the 405 megawatt circulating fluidized bed (CFB) coal-fired thermal power plant in an 84-hectare land within Phividec Industrial Estate in Villanueva, Misamis Oriental.
With the project, President Aquino said Mindanao will soon become the "Land of Promise Fulfilled."
"These plants that Filinvest are committing to is a reaffirmation of this confidence. They are a significant part of the long-term solution. This signing gives us peace of mind that the permanent solutions are being put in place," Aquino said. "By 2016, these three plants, by themselves, will be providing 405 megawatts of coal power to the Mindanao grid."
"With the energy these plants will be producing by 2016, we expect production capacity to be almost 470 megawatts above peak demand," he added.
"We are not just increasing Mindanao's maximum capacity. Beyond that, we are reinforcing their entire energy supply with more reliable and stable sources. We are making their energy infrastructure much more competitive," Aquino said, noting that the establishment of the power plant in Mindanao is expected to generate 2,000 jobs.
President Aquino said the development comes at a critical time when the government is working on a peace agreement with the Moro Islamic Liberation Front (MILF), noting that with the spur of economic growth in Mindanao comes more lucrative centers in the area aside from Davao and Cagayan de Oro.
NEW POWER PLANT IN MINDANAO –President Benigno S. Aquino III witnesses the signing of a land lease agreement between Phividec Industrial Authority (PIA) and the FDC Misamis Power Corp. in Malacañang on April 17, 2013, for the lease of land for the construction of a coal-fired power plant that will generate on initial 270 megawatts of electric power, targeted to operate in 2016. Seated with the President are Defense Secretary Voltaire Gazmin and Enegry Secretary Carlos Jericho Petilla. The agreement was signed by PIA Administrator and Vice Chairman of the Board Leo Tereso Magno and FDC President and Managing Director Jesus Alcondo. Others in photo are: Filinvest Land Inc. (FLI) First Vice President and General Counsel Atty. Pablito Perez, FLI First Vice President Engr. Antonio Cenon, Filinvest Development Corporation (FDC) Chairman Jonathan Gotianun Villanueva, Misamis Oriental Mayor Juliette Uy, PIA Chairman of the Board B/Gen. Triunfo Agustin (Ret), PIA Corporate Secretary Atty. Raul Ragandang, and Poblacion Barangay Captain Leah Dagasuhan. (Richard Viñas)
President Aquino, meanwhile, said that while there is a current power crisis in Mindanao, power woes in the southern part of the country did not happen overnight as former local officials in the area relied solely on hydropower without ensuring the maintenance of hydropower plants. Illegal logging was also prevalent.
"So, when we stepped into office, we knew that we had to start working immediately. We began making the structural changes that encouraged the private sector to come in and put up power plants," Aquino said.
He said last year, Aboitiz began a project to build two coal-fired power plants in Davao, which will provide a total of 300 megawatts, which will be finished by late 2015.
"Businessmen normally would tend to be a conservative lot. But here, they are actually placing the other sources to a commitment not in terms of a demonstrated market that is already there but rather this is really a commitment of theirs to share in building a future, which is to invest when it is not exactly clear," Aquino said.
"Everything will materialize in the best light. So, it is a boat of confidence on their part, and this should be encouraged. And, we should help those who are actively helping to solve the problem instead of grandstanding," he said.
The Palace had earlier said that power woes in Mindanao will ease by 2015 as power plants takes three to four years to be established.
Circumcision: Philippines, World to cut or not to cut
The ancient circumcision in Egypt
IN the Philippines circumcision—the removal of all or part of the prepuce (pronounced "pre'pyoos") or foreskin—is not related to religion. The vast majority of Filipinos are circumcised—whether they are Catholic, Muslim, or whatever. It is a "coming of age" ritual, and traditional for a boy to prove his manhood properly, it should be done without anesthetic.
In the United States and most industrialized countries, circumcision is usually performed on the first or second day after birth and usually takes only about five to 10 minutes. In comparison, most boys are circumcised between the ages of 10 and 12 in the Philippines.
"The decision about having a newborn circumcised usually depends on the parents' religious beliefs or personal preferences," states The Merck Manual of Medical Information. "The main medical reason for circumcision is to remove an unusually tight foreskin that is obstructing the flow of urine."
Circumcision is an ancient operation of unknown origin, performed originally with flint (stone) knives prior to the use of metal. The earliest known artifacts from Egypt are dated at about 4000 BC, centuries before circumcision's adoption by the ancient Hebrews.
For thousands of years, circumcision has been widely practiced as a religious rite. It is a ritual obligation for infant Jewish boys, and is also a common rite among Muslims, who account for the largest share of circumcised men worldwide.
In tribal settings, circumcision is nearly always associated with traumatic puberty rites. Occasionally the severed part is offered as a sacrifice to spirit beings. According to Encarta Encyclopedia, the operation certifies the subject's readiness for marriage and adulthood and testifies to his or her ability to withstand pain. Circumcision may also distinguish cultural groups from their uncircumcised neighbors.
In Jewish religious tradition, infant male circumcision is required as part of Abraham's covenant with God. The Levitical law says that every Jewish male infant had to be circumcised on the eighth day after birth, under penalty of ostracism from the congregation of Israel. Jews employ a mohel to perform the rite. After a ritual prayer, the mohel circumcises the infant and then names and blesses the child.
Among the Arabs, circumcision existed before the time of Muhammad (before 570 AD). Although the Koran does not mention it, Islamic custom demands that Muslim males be circumcised before marriage; the rite is generally performed in infancy.
Meanwhile, Herodotus, Philo and other ancient Greeks first suggested that circumcision might have hygienic benefits (ironically, the Greeks did not adopt the practice). Some theories have it that circumcision probably originated as a hygiene measure in communities living in hot and dry environments.
Since the 19th century, many English-speaking peoples have adopted the custom of circumcision, primarily for medical reasons. In modern medical practice, circumcision of males is a minor operation usually performed in infancy for hygienic purposes. It is currently estimated that 85 percent of North American males are circumcised. The incidence among non-Jewish populations of continental Europe, Scandinavia and South America is low.
Studies comparing disease rates among circumcised and uncircumcised men in the AIDS-ravaged Africa show on average three times more HIV infection among the uncircumcised. One study of a group of HIV-infected men having sex with men in the United States also found a correlation.
Dr. William Cameron, an associate professor at the University of Ottawa in Canada who co-authored several African studies, theorizes that the uncircumcised foreskin sustains tiny abrasions during intercourse, allowing HIV to enter the bloodstream. Several studies have found that such sexually transmitted diseases like syphilis also occur somewhat more frequently among the uncircumcised.
Meanwhile, the medical case for circumcision is unproved and controversial, says Dr. Donald F. Tuzin, an American professor of Anthropology at the University of California in San Diego. He says physicians in the 19th century advised the operation for many ailments, including hysteria, sexually transmitted disease, hypersexuality and even hiccups.
Removal of the foreskin also precludes phimosis or the inability to retract the foreskin. Louis XVI of France, a famous phimosis sufferer, was unable to have sex with his wife Marie Antoinette until he was circumcised at age 21.
Modern proponents suggest that diseases result from the buildup of smegma, a substance secreted under the foreskin. Also cited is evidence that circumcised populations (especially Jews) display low rates of penile and cervical cancer. Critics reject the validity of these claims, arguing that such disorders are more likely caused by poor hygiene and by contact with multiple sex partners.
In the early days of Christianity, a controversy arose over whether Christians should be circumcised, as Jews were. The Apostle Paul emphatically told Gentiles in his epistle to the Galatians: "For in Jesus Christ neither circumcision availeth any thing, nor uncircumcision."
To cut or not to cut—this is now one of the most debated subjects among the medical profession. In fact, there are now Filipino doctors who won't perform circumcision. "I have convinced quite a number of adolescent males who came to my clinic not to have circumcision anymore," one surgeon admits. "Those who are convinced are happy and thankful to me. Those who are not convinced seek other surgeons to do the circumcision for them."
In America "it's still an ongoing controversy about whether circumcision is really necessary," says Jack Sherman, M.D., associate chairman of pediatrics at Nassau County Medical Center in East Meadow, New York. "In 1971 and 1975, the American Academy of Pediatrics [AAP] said it wasn't necessary. Later, they amended their policy statement, citing studies about lowered penile cancer and first-year urinary-tract infections among circumcised males."
The AAP's 1999 policy statement, based on a review of 40 years of data, states that circumcision has potential medical benefits. "But they advise that parents not use that as their primary criterion when making a decision," says Sherman. "That's like not expressing an opinion at all."
Opponents against the practice say that in circumcision, the baby has no "power" to say no. Others suggest that circumcising an infant imprints violence on the baby's brain. Still, others contend that circumcision will leave the male species traumatized by the removal of their foreskins.
Dr. Yehuda Nir, a psychoanalyst who was formerly head of child psychiatry at Memorial Sloan-Kettering Hospital in New York, says he hasn't observed circumcision trauma. "The only thing men are concerned about with regard to the penis is its size."
Or listen to the words of a Filipino-British man, who's uncircumcised: "I guess sex with an uncircumcised man is just as good as any. I'm definitely sure that 90 percent of the women I slept with didn't leave disappointed."
Wednesday, April 17, 2013
Superb Technology: Smart, IdeaSpace bring AngelHack to Philippines
SMART Communications, Inc. (Smart) and business incubator IdeaSpace Foundation have partnered with US-based AngelHack to launch the Philippine leg of the what is considered the world's biggest coding marathon.
The April-June AngelHack Spring Global Challenge is expected to bring in 6,000 developers in 32 cities in Asia Pacific, North America, South America and Europe.
The winners in each city will enter a three-month accelerator program under which AngelHack will help turn their big idea into a startup.
Winners will then be brought to the United States for mentorship and meetings with key people of Silicon Valley. AngelHack will also help connect the hackathon winners with angel investors worldwide.
The Philippine leg of the competition is scheduled for June 8 to 9. More details will be announced soon.
"There is a Singapore-based venture capitalist interested in investing in Asia Pacific winners. I have a good feeling someone from the Philippines will win," said AngelHack cofounder and chief executive officer Greg Gopman during the Philippine launch of AngelHack at the Jump Experience Center in SM Megamall.
"We see a lot of opportunities in the next few years in the Philippines and in Southeast Asia," he added.
Gopman said he learned about the active developer community in the Philippines when he was recently in Singapore. He said he's excited about the AngelHack partnership with Smart's developer community Smart Developer Network (Smart DevNet) and IdeaSpace.
"It's an ideal partnership because Smart really cares about the developer community.
It's also nice to know that Smart has invested in a foundation (IdeaSpace) that promotes technology entrepreneurship," Gopman said.
Smart DevNet has been organizing and sponsoring numerous hackathons and developer meetups since its launch in mid-2012. IdeaSpace, which is backed by Smart and other companies, recently named the 10 startups it will support through seed funding and mentorship.
"We encourage developers to join the Philippine leg of AngelHack so they can hack their way to the global stage. This event is like the Olympics for engineers and hackers," said IdeaSpace president Earl Valencia.
"Joining hackathons is the opposite of complaining. Instead of ranting about things, we can devise something that can solve our problems. Hackathons like this bring to the fore the country's potential game changers," said Smart developer evangelist Paul Pajo. (PR)
WSJ: Equity Deals Keep Coming in Singapore, Philippines
Southeast Asia's recent boom in share offerings is growing louder.
In the Philippines LT Group Inc. LTG.PH +11.11%, a conglomerate owned by billionaire Lucio Tan, raised around $920 million in the country's largest-ever share offering, pricing shares at 20.50 pesos ($0.50) each the high end of the indicative range, issuance manager UBS AG said Wednesday.
That followed Monday's report in The Wall Street Journal that the Philippine unit of Nasdaq-listed Melco Crown Entertainment Ltd. is looking to raise $377 million in a private placement. Road shows for that sale started Monday in Manila and will be held in Hong Kong, Singapore, London and the U.S., the term sheet showed.
Meanwhile, in Singapore, Taiwanese pay-TV operator Asian Pay Television Trust is testing investor appetite for a listing as a business trust that could raise up to US$810 million, people with knowledge of the deal said Wednesday.
And Croesus Retail Trust, a Japanese real estate fund, has revived a plan to raise around US$300 million by listing some of its shopping malls as a business trust in Singapore in the second quarter.
Also aiming for a second-quarter listing in Singapore is U.K.-listed Investec PLC, a fund management and banking group, which plans to raise up to US$500 million through an IPO of its aircraft leasing trust.
So far this year, Southeast Asia has seen a surge in share offerings. Both Thailand and Singapore have raised more money from new listings than Hong Kong, the world's busiest IPO market from 2009 through 2011.
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